Future Policy Benefits (Tables)

12 Months Ended

Dec. 31, 2023

Insurance [Abstract]

Liability for Future Policy Benefit, Activity

The Company reviews actual and anticipated experience compared to the assumptions used to establish policy benefits on a quarterly basis and will update those assumptions if evidence suggests that they should be revised. It is the Company’s policy to complete its annual assumption review during the third quarter of each year. However, updates may occur in other quarters if information becomes available during the quarter that indicates an assumption update is necessary.

During 2023, the Company completed its annual assumption review resulting in a decrease in its total liability for future policy benefits. The decrease was primarily the result of updated mortality assumptions, which had a favorable impact on the liability for future policy benefits for the Company’s Financial Solutions business and an unfavorable impact on the Company’s Traditional business.

During 2022, the Company’s assumption review resulted in an increase in its total liability for future policy benefits. The increase was primarily the result of updated mortality assumptions, which had an unfavorable impact on the liability for future policy benefits for the Company’s Traditional business. There were no significant changes in the assumptions used to measure the liability for future policy benefits for the Company’s Financial Solutions business.

Traditional Business

The following tables provide the balances of and changes in the Company’s liability for future policy benefits for long-duration reinsurance contracts for its Traditional business, which primarily consists of individual life, group life and critical illness reinsurance for the years ended December 31, 2023 and 2022 (dollars in millions):

For the year ended December 31, 2023:	U.S. and Latin America – Traditional			Canada – Traditional			Europe, Middle East and Africa – Traditional			Asia Pacific – Traditional
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	74,207		$	21,330		$	14,244		$	40,506
Effect of changes in cash flow assumptions	905			96			199			(180)
Effect of actual variances from expected experience	88			401			254			234
Adjusted balance, beginning of year	75,200			21,827			14,697			40,560
Issuances (1)	4,174			546			1,074			3,469
Interest accrual (2)	3,526			753			509			1,072
Net premiums collected (3)	(5,928)			(941)			(1,492)			(2,042)
Derecognition (4)	(35)			—			—			—
Foreign currency translation	6			504			540			(318)
Ending balance at original discount rate	76,943			22,689			15,328			42,741
Effect of changes in discount rate assumptions	(4,573)			(4,180)			(2,286)			(11,999)
Balance, end of period	$	72,370		$	18,509		$	13,042		$	30,742
Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	85,285		$	24,655		$	15,454		$	44,785
Effect of changes in cash flow assumptions	922			108			246			(171)
Effect of actual variances from expected experience	170			410			267			189
Adjusted balance, beginning of year	86,377			25,173			15,967			44,803
Issuances (1)	4,174			546			1,076			3,470
Interest accrual (2)	4,075			965			549			1,225
Benefit payments (5)	(5,545)			(995)			(1,427)			(1,846)
Derecognition (4)	(54)			—			—			—
Foreign currency translation	9			586			591			(282)
Ending balance at original discount rate	89,036			26,275			16,756			47,370
Effect of changes in discount rate assumptions	(5,719)			(3,309)			(2,505)			(13,964)
Balance, end of period	$	83,317		$	22,966		$	14,251		$	33,406
Liability for future policy benefits	$	10,947		$	4,457		$	1,209		$	2,664
Less: reinsurance recoverable	(767)			(298)			(34)			(122)
Net liability for future policy benefits	$	10,180		$	4,159		$	1,175		$	2,542
Weighted-average duration of the liability (in years)	12			15			8			15
Weighted-average interest accretion rate	4.8		%	3.7		%	3.5		%	2.6		%
Weighted-average current discount rate	5.1		%	4.7		%	5.1		%	4.6		%

(1)Issuances: The present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new reinsurance contracts that became effective during the current period and new policies assumed on existing contracts.

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

(4)Derecognition: Includes the effects of treaty recaptures and treaty amendments that resulted in the termination of an existing treaty and the issuance of a new treaty under the internal replacement model.

(5)Benefit payments: The release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal, and other benefit payments based on current assumptions.

For the year ended December 31, 2022:	U.S. and Latin America – Traditional			Canada – Traditional			Europe, Middle East and Africa – Traditional			Asia Pacific – Traditional
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	73,447		$	21,989		$	14,440		$	37,943
Effect of changes in cash flow assumptions	(805)			189			123			1,604
Effect of actual variances from expected experience	(4)			212			835			197
Adjusted balance, beginning of year	72,638			22,390			15,398			39,744
Issuances (1)	3,329			635			1,083			3,663
Interest accrual (2)	3,423			748			500			1,032
Net premiums collected (3)	(5,182)			(950)			(1,324)			(1,989)
Derecognition (4)	—			—			—			—
Foreign currency translation	(1)			(1,493)			(1,413)			(1,944)
Ending balance at original discount rate	74,207			21,330			14,244			40,506
Effect of changes in discount rate assumptions	(6,303)			(4,899)			(2,639)			(10,927)
Balance, end of period	$	67,904		$	16,431		$	11,605		$	29,579
Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	84,075		$	25,440		$	15,664		$	41,971
Effect of changes in cash flow assumptions	(675)			191			136			1,681
Effect of actual variances from expected experience	85			212			813			234
Adjusted balance, beginning of year	83,485			25,843			16,613			43,886
Issuances (1)	3,333			635			1,083			3,667
Interest accrual (2)	3,940			958			530			1,171
Benefit payments (5)	(5,472)			(1,051)			(1,260)			(1,832)
Derecognition (4)	—			—			—			—
Foreign currency translation	(1)			(1,730)			(1,512)			(2,107)
Ending balance at original discount rate	85,285			24,655			15,454			44,785
Effect of changes in discount rate assumptions	(7,907)			(4,273)			(2,808)			(12,858)
Balance, end of period	$	77,378		$	20,382		$	12,646		$	31,927
Liability for future policy benefits	$	9,474		$	3,951		$	1,041		$	2,348
Less: reinsurance recoverable	(421)			(265)			(31)			(100)
Net liability for future policy benefits	$	9,053		$	3,686		$	1,010		$	2,248
Weighted-average duration of the liability (in years)	12			15			8			17
Weighted-average interest accretion rate	4.7		%	3.7		%	3.5		%	2.7		%
Weighted-average current discount rate	5.2		%	4.9		%	5.5		%	4.3		%

(1)Issuances: The present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new reinsurance contracts that became effective during the current period and new policies assumed on existing contracts.

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

(4)Derecognition: Includes the effects of treaty recaptures and treaty amendments that resulted in the termination of an existing treaty and the issuance of a new treaty under the internal replacement model.

(5)Benefit payments: The release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal, and other benefit payments based on current assumptions.

Significant assumptions used to compute the liability for future policy benefits for the Traditional business include mortality, morbidity, lapse rates and discount rates (both accretion and current). During 2023 and 2022, the Company updated its assumptions which resulted in a $85 million and $222 million increase, excluding the effects of reinsurance, in the Company’s liability for future policy benefits for its Traditional business. Including the effects of reinsurance, a future policy benefits remeasurement loss of $75 million and $259 million was recognized for the years ending December 31, 2023 and 2022, respectively, as a result of changes in cash flow assumptions. The increase in the liability in 2023 and 2022 was primarily the result of updating the mortality assumptions used to measure the liability for future policy benefits. The Company also updated the underlying market data used to determine the current discount rate resulting in changes to the discount rate assumption used to measure the net liability for future policy benefits.

The Company’s Traditional business actual-to-expected variances, the effects of changes in cash flow assumptions and the effects of changes in discount rate assumption for the years ended December 31, 2023 and 2022 are summarized in the tables below:

For the year ended December 31, 2023:
Segment	Net liability for future policy benefits at original discount rate	Changes in cash flow assumptions	Actual-to-expected variance	Impact of updating discount rate recognized in OCI
U.S. and Latin America – Traditional	$12.1 billion	$17 million	$82 million	$458 million
		0.2% increase	0.7% increase	4.1% increase
Canada – Traditional	$3.6 billion	$12 million	$9 million	$245 million
		0.4% increase	0.3% increase	7.4% increase
Europe, Middle East and Africa – Traditional	$1.4 billion	$47 million	$13 million	$(50) million
		3.9% increase	1.1% increase	4.1% decrease
Asia Pacific – Traditional	$4.6 billion	$9 million	$(45) million	$(34) million
		0.2% increase	1.1% decrease	0.8% decrease

For the year ended December 31, 2022:
Segment	Net liability for future policy benefits at original discount rate	Changes in cash flow assumptions	Actual-to-expected variance	Impact of updating discount rate recognized in OCI
U.S. and Latin America – Traditional	$11.1 billion	$130 million	$88 million	$(5) million
		1.2% increase	0.8% increase	47.2% decrease
Canada – Traditional	$3.3 billion	$2 million	$—	$(1.5) billion
		0.1% increase	None	42.8% decrease
Europe, Middle East and Africa – Traditional	$1.2 billion	$13 million	$(22) million	$(334) million
		1.1% increase	1.8% decrease	27.3% decrease
Asia Pacific – Traditional	$4.3 billion	$77 million	$37 million	$(914) million
		1.9% increase	0.9% decrease	22.7% decrease

Financial Solutions Business

The following tables provide the balances of and changes in the Company’s liability for future policy benefits, including the deferred profit liability related to the longevity business, for its Financial Solutions business, which primarily consists of longevity reinsurance, asset-intensive products, primarily annuities and financial reinsurance for the years ended December 31, 2023 and 2022 (dollars in millions):

For the year ended December 31, 2023:	U.S. and Latin America – Financial Solutions			Canada – Financial Solutions			Europe, Middle East and Africa – Financial Solutions			Asia Pacific – Financial Solutions
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	1,671		$	3,394		$	38,782		$	1,605
Effect of changes in cash flow assumptions	(69)			(54)			(561)			—
Effect of actual variances from expected experience	(21)			(5)			5,046			(15)
Adjusted balance, beginning of year	1,581			3,335			43,267			1,590
Issuances (1)	1,423			—			12,489			2,160
Interest accrual (2)	49			105			1,028			26
Net premiums collected (3)	(1,598)			(329)			(3,991)			(1,601)
Derecognition (4)	—			—			—			—
Foreign currency translation	—			73			2,039			(118)
Ending balance at original discount rate	1,455			3,184			54,832			2,057
Effect of changes in discount rate assumptions	(209)			(296)			(6,566)			(157)
Balance, end of period	$	1,246		$	2,888		$	48,266		$	1,900
Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	5,823		$	3,447		$	44,330		$	6,561
Effect of changes in cash flow assumptions	(91)			(76)			(595)			—
Effect of actual variances from expected experience	(29)			(13)			4,991			(17)
Adjusted balance, beginning of year	5,703			3,358			48,726			6,544
Issuances (1)	1,467			—			12,489			2,170
Interest accrual (2)	239			107			1,206			89
Benefit payments (5)	(550)			(328)			(3,803)			(271)
Derecognition (4)	(16)			—			—			—
Foreign currency translation	—			73			2,320			(513)
Ending balance at original discount rate	6,843			3,210			60,938			8,019
Effect of changes in discount rate assumptions	(369)			(293)			(7,219)			(929)
Balance, end of period	$	6,474		$	2,917		$	53,719		$	7,090
Liability for future policy benefits	$	5,228		$	29		$	5,453		$	5,190
Less: reinsurance recoverable	(913)			—			—			—
Net liability for future policy benefits	$	4,315		$	29		$	5,453		$	5,190
Weighted-average duration of the liability (in years)	8			7			10			15
Weighted-average interest accretion rate	3.5		%	3.2		%	2.3		%	1.3		%
Weighted-average current discount rate	5.0		%	4.6		%	4.5		%	2.3		%

(1)Issuances: The present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new reinsurance contracts that became effective during the current period and new policies assumed on existing contracts.

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

(4)Derecognition: Includes the effects of treaty recaptures and treaty amendments that resulted in the termination of an existing treaty and the issuance of a new treaty under the internal replacement model.

(5)Benefit payments: The release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal, and other benefit payments based on current assumptions.

For the year ended December 31, 2022:	U.S. and Latin America – Financial Solutions			Canada – Financial Solutions			Europe, Middle East and Africa – Financial Solutions			Asia Pacific – Financial Solutions
Present Value of Expected Net Premiums
Beginning of year balance at original discount rate	$	228		$	3,329		$	31,973		$	1,051
Effect of changes in cash flow assumptions	(31)			—			(126)			3
Effect of actual variances from expected experience	(22)			(12)			573			29
Adjusted balance, beginning of year	175			3,317			32,420			1,083
Issuances (1)	1,580			574			12,594			1,465
Interest accrual (2)	41			112			698			24
Net premiums collected (3)	(125)			(354)			(3,169)			(764)
Derecognition (4)	—			—			—			—
Foreign currency translation	—			(255)			(3,761)			(203)
Ending balance at original discount rate	1,671			3,394			38,782			1,605
Effect of changes in discount rate assumptions	(284)			(433)			(8,805)			25
Balance, end of period	$	1,387		$	2,961		$	29,977		$	1,630
Present Value of Expected Future Policy Benefits
Beginning of year balance at original discount rate	$	4,628		$	3,393		$	38,196		$	6,062
Effect of changes in cash flow assumptions	(34)			—			(140)			3
Effect of actual variances from expected experience	(46)			(24)			566			36
Adjusted balance, beginning of year	4,548			3,369			38,622			6,101
Issuances (1)	1,580			574			12,594			1,465
Interest accrual (2)	220			115			856			70
Benefit payments (5)	(525)			(351)			(3,355)			(227)
Derecognition (4)	—			—			—			—
Foreign currency translation	—			(260)			(4,387)			(848)
Ending balance at original discount rate	5,823			3,447			44,330			6,561
Effect of changes in discount rate assumptions	(617)			(432)			(9,719)			(435)
Balance, end of period	$	5,206		$	3,015		$	34,611		$	6,126
Liability for future policy benefits	$	3,819		$	54		$	4,634		$	4,496
Less: reinsurance recoverable	—			—			—			—
Net liability for future policy benefits	$	3,819		$	54		$	4,634		$	4,496
Weighted-average duration of the liability (in years)	8			7			9			15
Weighted-average interest accretion rate	4.3		%	3.4		%	2.0		%	1.5		%
Weighted-average current discount rate	5.3		%	5.1		%	4.8		%	1.8		%

(1)Issuances: The present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new reinsurance contracts that became effective during the current period and new policies assumed on existing contracts.

(2)Interest accrual: The interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

(3)Net premiums collected: The portion of gross premiums collected from the ceding company that is used to fund expected benefit payments.

(4)Derecognition: Includes the effects of treaty recaptures and treaty amendments that resulted in the termination of an existing treaty and the issuance of a new treaty under the internal replacement model.

(5)Benefit payments: The release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal, and other benefit payments based on current assumptions.

Significant assumptions used to compute the liability for future policy benefits for the Financial Solutions business include mortality, morbidity, lapse rates and discount rates (both accretion and current). During 2023 and 2022, the Company updated its assumptions which resulted in a $78 million and $17 million decrease, excluding the effects of reinsurance, in the Company’s liability for future policy benefits for its Financial Solutions business during 2023 and 2022, respectively. Including the effects of reinsurance, a future policy benefits remeasurement gain of $78 million and $17 million was recognized during the years ending December 31, 2023 and 2022, respectively, as a result of changes in cash flow assumptions. The decrease in the liability in 2023 and 2022 was primarily the result of updating the mortality assumptions used to measure the liability for future policy benefits. The Company also updated the underlying market data used to determine the current discount rate resulting in changes to the discount rate assumption used to measure the net liability for future policy benefits.

The Company’s Financial Solutions business actual-to-expected variances (including the effects of model updates), the effects of changes in cash flow assumptions and the effects of changes in discount rate assumptions for the years ended December 31, 2023 and 2022 are summarized in the tables below:

For the year ended December 31, 2023:
Segment	Net liability for future policy benefits at original discount rate	Changes in cash flow assumptions	Actual-to-expected variance	Impact of updating discount rate recognized in OCI
U.S. and Latin America – Financial Solutions	$5.4 billion	$(22) million	$(8) million	$173 million
		0.5% decrease	0.2% decrease	4.2% increase
Canada – Financial Solutions	$26 million	$(22) million	$(8) million	$2 million
		41.5% decrease	15.1% decrease	3.8% increase
Europe, Middle East and Africa – Financial Solutions	$6.1 billion	$(34) million	$(55) million	$261 million
		0.6% decrease	1.0% decrease	4.7% increase
Asia Pacific – Financial Solutions	$6.0 billion	$—	$(2) million	$(312) million
		None	None	6.3% decrease

For the year ended December 31, 2022:
Segment	Net liability for future policy benefits at original discount rate	Changes in cash flow assumptions	Actual-to-expected variance	Impact of updating discount rate recognized in OCI
U.S. and Latin America – Financial Solutions	$4.2 billion	$(3) million	$(24) million	$(880) million
		0.1% decrease	0.5% decrease	20.0% decrease
Canada – Financial Solutions	$53 million	$—	$(12) million	$(16) million
		None	18.8% decrease	25.0% decrease
Europe, Middle East and Africa – Financial Solutions	$5.5 billion	$(14) million	$(7) million	$(1.4) billion
		0.2% decrease	0.1% decrease	28.4% decrease
Asia Pacific – Financial Solutions	$5 billion	$—	$7 million	$(463) million
		None	0.1% increase	10.3% decrease

Future Policy Benefits Reconciliation To Balance Sheet

Reconciliation and Other Disclosures

The reconciliation of the rollforward of the liability for future policy benefits to the consolidated balance sheets as of December 31, 2023 and 2022, is as follows (dollars in millions):

	December 31,
	2023		2022
Liability for future policy benefits included in the rollforwards:
Traditional:
U.S. and Latin America	$	10,947	$	9,474
Canada	4,457		3,951
Europe, Middle East and Africa	1,209		1,041
Asia Pacific	2,664		2,348
Financial Solutions:
U.S. and Latin America	5,228		3,819
Canada	29		54
Europe, Middle East and Africa	5,453		4,634
Asia Pacific	5,190		4,496
Other long-duration contracts	125		175
Claims liability and incurred but not reported claims	5,437		5,152
Unearned revenue liability	492		545
Total liability for future policy benefits	$	41,231	$	35,689

Undiscounted and Discounted Future Gross Premiums and Expected Future Benefits

The amount of undiscounted and discounted expected future gross premiums and expected future benefit payments for the liability for future policy benefits included in the rollforwards as of December 31, 2023 and 2022 is as follows (dollars in millions):

	December 31,
	2023				2022
	Undiscounted		Discounted		Undiscounted		Discounted
Expected future gross premiums
Traditional:
U.S. and Latin America	$	178,510	$	84,652	$	170,430	$	78,930
Canada	56,133		22,816		52,991		20,421
Europe, Middle East and Africa	25,934		14,822		24,517		13,368
Asia Pacific	94,535		39,119		91,399		37,600
Financial Solutions:
U.S. and Latin America	2,963		1,893		3,163		1,946
Canada	4,572		3,080		4,811		3,095
Europe, Middle East and Africa	91,783		52,894		55,241		33,115
Asia Pacific	4,016		3,026		3,018		2,462
Expected future policy benefit payments
Traditional:
U.S. and Latin America	$	189,168	$	83,317	$	180,256	$	77,378
Canada	58,139		22,966		55,949		20,382
Europe, Middle East and Africa	25,796		14,251		24,050		12,646
Asia Pacific	90,475		33,406		87,632		31,927
Financial Solutions:
U.S. and Latin America	11,031		6,474		9,129		5,206
Canada	4,310		2,917		4,681		3,015
Europe, Middle East and Africa	93,278		53,719		57,744		34,611
Asia Pacific	11,077		7,090		8,636		6,126

Gross Premiums And Interest Expense Liability Future Policy Benefits

The amount of gross premiums and interest expense recognized in the consolidated statements of income for the liability for future policy benefits included in the rollforwards for the years ended December 31, 2023 and 2022 is as follows (dollars in millions):

	Gross Premiums				Interest Expense
	December 31,				December 31,
	2023		2022		2023		2022
Traditional:
U.S. and Latin America	$	6,093	$	5,980	$	549	$	517
Canada	1,096		1,101		212		210
Europe, Middle East and Africa	1,422		1,343		40		30
Asia Pacific	2,655		2,552		153		139
Financial Solutions:
U.S. and Latin America	1,496		38		190		179
Canada	90		95		2		3
Europe, Middle East and Africa	701		622		178		158
Asia Pacific	218		236		63		46
Total	$	13,771	$	11,967	$	1,387	$	1,282

During the years ended December 31, 2023 and 2022, no material charges were incurred resulting from net premiums exceeding gross premiums.