Reserve for Future Policy Benefits and Contractholder Funds (Tables)

9 Months Ended

Sep. 30, 2024

Reserve for Future Policy Benefits and Contractholder Funds [Abstract]

Schedule of Reserve for Future Policy Benefits, and Revenue and Interest Recognized and Key Assumptions

Rollforward of reserve for future policy benefits (1)
	Nine months ended September 30,
	Accident and health				Traditional life				Total
($ in millions)	2024		2023		2024		2023		2024		2023
Present value of expected net premiums
Beginning balance	$	1,688	$	1,464	$	325	$	238	$	2,013	$	1,702
Beginning balance at original discount rate	1,737		1,549		330		246		2,067		1,795
Effect of changes in cash flow assumptions	(88)		(12)		(13)		34		(101)		22
Effect of actual variances from expected experience	28		(4)		4		4		32		—
Adjusted beginning balance	1,677		1,533		321		284		1,998		1,817
Issuances	490		378		69		53		559		431
Interest accrual	63		48		11		8		74		56
Net premiums collected	(281)		(260)		(49)		(37)		(330)		(297)
Ending balance at original discount rate	1,949		1,699		352		308		2,301		2,007
Effect of changes in discount rate assumptions	6		(113)		(1)		(19)		5		(132)
Reclassified to liabilities held for sale	(1,270)		—		(345)		—		(1,615)		—
Ending balance	685		1,586		6		289		691		1,875
Present value of expected future policy benefits
Beginning balance	2,453		2,229		657		524		3,110		2,753
Beginning balance at original discount rate	2,495		2,316		656		534		3,151		2,850
Effect of changes in cash flow assumptions	(11)		21		(10)		30		(21)		51
Effect of actual variances from expected experience	(28)		(24)		(4)		3		(32)		(21)
Adjusted beginning balance	2,456		2,313		642		567		3,098		2,880
Issuances	479		368		69		68		548		436
Interest accrual	84		75		23		18		107		93
Benefit payments	(317)		(297)		(24)		(30)		(341)		(327)
Ending balance at original discount rate	2,702		2,459		710		623		3,412		3,082
Effect of changes in discount rate assumptions	27		(126)		8		(38)		35		(164)
Reclassified to liabilities held for sale	(1,998)		—		(704)		—		(2,702)		—
Ending balance	$	731	$	2,333	$	14	$	585	$	745	$	2,918
Net reserve for future policy benefits (1)	$	46	$	747	$	8	$	296	$	54	$	1,043
Less: reinsurance recoverables (2)	—		82		—		2		—		84
Net reserve for future policy benefits, after reinsurance recoverables	$	46	$	665	$	8	$	294	$	54	$	959

(1)Excludes $220 million and $266 million of reserves related to short-duration and other contracts as of September 30, 2024 and 2023, respectively.

(2)Classified as held for sale as of September 30, 2024.

Revenue and interest recognized in the condensed consolidated statements of operations
($ in millions)	Nine months ended September 30,
	2024		2023
Revenues (1)
Accident and health	$	605	$	600
Traditional life	106		77
Total	$	711	$	677
Interest expense (2)
Accident and health	$	21	$	27
Traditional life	12		10
Total	$	33	$	37

(1)Total revenues reflects gross premiums used in the calculation for reserve for future policy benefits. Revenues included in Accident and health insurance premiums and contract charges on the Condensed Consolidated Statements of Operations reflect premium revenue recognized for traditional life insurance and long-duration and short-duration accident and health insurance contracts.

(2)Total interest expense presented as part of Accident, health and other policy benefits on the Condensed Consolidated Statements of Operations.

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts, including those that are classified as held for sale as of September 30, 2024.

	As of September 30,
	2024				2023
($ in millions)	Undiscounted		Discounted		Undiscounted		Discounted
Accident and health
Expected future gross premiums	$	5,581	$	3,939	$	5,263	$	3,600
Expected future benefits and expenses	3,943		2,729		3,503		2,333
Traditional life
Expected future gross premiums	1,013		729		813		553
Expected future benefits and expenses	1,345		718		1,153		585

The following table provides the weighted-average duration and weighted-average interest rates for the reserve for future policy benefits, including those that are classified as held for sale as of September 30, 2024.

	As of September 30,
	Accident and health				Traditional life
	2024		2023		2024		2023
Weighted-average duration (in years)	8.3		4.3		15.5		14.8
Weighted-average interest rates
Interest accretion rate (discount rate at contract issuance)	5.05	%	4.73	%	5.36	%	5.43	%
Current discount rate (upper-medium grade fixed income yield)	4.65		5.28		4.82		5.56

Schedule of Contractholder Funds Activity

Contractholder funds activity
	Nine months ended September 30,
($ in millions)	2024			2023
Beginning balance	$	888		$	879
Deposits	98			99
Interest credited	25			25
Benefits	(9)			(8)
Surrenders and partial withdrawals	(17)			(15)
Contract charges	(89)			(90)
Other adjustments	(5)			(6)
Ending balance	$	891		$	884
Components of contractholder funds
Interest-sensitive life insurance	$	850		$	837
Fixed annuities	41			47
Total	$	891		$	884
Weighted-average crediting rate	4.19		%	4.26		%
Net amount at risk (1)	$	10,927		$	11,550
Cash surrender value	$	734		$	728

(1)Guaranteed benefit amounts in excess of the current account balances.