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Reserve for Future Policy Benefits and Contractholder Funds
 3 Months Ended
Mar. 31, 2025
Reserve for Future Policy Benefits and Contractholder Funds [Abstract]  
Reserve for Future Policy Benefits and Contractholder Funds
Note 10Reserve for Future Policy Benefits and Contractholder Funds
Rollforward of reserve for future policy benefits (1)
Three months ended March 31,
Accident and
health		Traditional
life		Total
($ in millions)202520242025202420252024
Present value of expected net premiums
Beginning balance$712 $1,688 $6 $325 $718 $2,013 
Add: Classified as liabilities held for sale
1,247 — 337 — 1,584 — 
Total beginning balance
$1,959 $1,688 $343 $325 $2,302 $2,013 
Beginning balance at original discount rate$2,013 $1,737 $354 $330 $2,367 $2,067 
Effect of changes in cash flow assumptions— — — — — — 
Effect of actual variances from expected experience(9)(44)1 11 (8)(33)
Adjusted beginning balance2,004 1,693 355 341 2,359 2,034 
Issuances250 230 41 32 291 262 
Interest accrual22 18 4 5 26 23 
Net premiums collected(110)(98)(17)(16)(127)(114)
Ending balance at original discount rate2,166 1,843 383 362 2,549 2,205 
Effect of changes in discount rate assumptions(54)(81)(10)(9)(64)(90)
Less: Liabilities held for sale
(1,022)— (366)— (1,388)— 
Ending balance$1,090 $1,762 $7 $353 $1,097 $2,115 
Present value of expected future policy benefits
Beginning balance$757 $2,453 $13 $657 $770 $3,110 
Add: Classified as liabilities held for sale1,943 — 685 — 2,628 — 
Total beginning balance
$2,700 $2,453 $698 $657 $3,398 $3,110 
Beginning balance at original discount rate$2,758 $2,495 $727 $656 $3,485 $3,151 
Effect of changes in cash flow assumptions4 (6)— — 4 (6)
Effect of actual variances from expected experience(12)(47)(2)8 (14)(39)
Adjusted beginning balance2,750 2,442 725 664 3,475 3,106 
Issuances252 230 43 33 295 263 
Interest accrual32 25 8 9 40 34 
Benefit payments(110)(102)(9)(12)(119)(114)
Ending balance at original discount rate2,924 2,595 767 694 3,691 3,289 
Effect of changes in discount rate assumptions(60)(86)(31)(22)(91)(108)
Less: Liabilities held for sale
(1,716)— (723)— (2,439)— 
Ending balance$1,148 $2,509 $13 $672 $1,161 $3,181 
Net reserve for future policy benefits (1)
$58 $747 $6 $319 $64 $1,066 
Less: reinsurance recoverables (2)
— 80 — 1 — 81 
Net reserve for future policy benefits, after reinsurance recoverables
$58 $667 $6 $318 $64 $985 
(1)Excludes $22 million and $259 million of reserves related to short-duration and other contracts as of March 31, 2025 and 2024, respectively.
(2)Classified as held for sale as of March 31, 2025.
Revenue and interest recognized in the condensed consolidated statements of operations
($ in millions)Three months ended March 31,
20252024
Revenues (1)
Accident and health$222 $221 
Traditional life42 34 
Total$264 $255 
Interest expense (2)
Accident and health$10 $7 
Traditional life4 4 
Total$14 $11 
(1)Total revenues reflects gross premiums used in the calculation for reserve for future policy benefits. Revenues included in accident and health insurance premiums and contract charges on the Condensed Consolidated Statements of Operations reflect premium revenue recognized for traditional life insurance and long-duration and short-duration accident and health insurance contracts.
(2)Total interest expense presented as part of accident, health and other policy benefits on the Condensed Consolidated Statements of Operations.
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts, including those that are classified as held for sale as of March 31, 2025.
As of March 31,
20252024
($ in millions)UndiscountedDiscountedUndiscountedDiscounted
Accident and health
Expected future gross premiums$6,039 $4,057 $5,580 $3,807 
Expected future benefits and expenses4,325 2,864 3,754 2,509 
Traditional life
Expected future gross premiums1,127 786 1,002 687 
Expected future benefits and expenses1,475 736 1,399 672 
The following table provides the weighted-average duration and weighted-average interest rates for the reserve for future policy benefits, including those that are classified as held for sale as of March 31, 2025.
As of March 31,
Accident and healthTraditional life
2025202420252024
Weighted-average duration (in years)7.84.315.115.1
Weighted-average interest rates
Interest accretion rate (discount rate at contract issuance)5.10 %4.96 %5.37 %5.41 %
Current discount rate (upper-medium grade fixed income yield)5.26 5.02 5.46 5.35 
Significant assumptions To determine mortality and morbidity assumptions, the Company uses a combination of its historical experience and industry data. Mortality and morbidity are monitored throughout the year. Historical experience is obtained through annual Company experience studies in the third quarter that consider its historical claim patterns. The lapse assumption is determined based on historical lapses of the Company’s insurance contracts.
For the three months ended March 31, 2025, actual experience for lapses in accident and health products was lower than expected. For the three months ended March 31, 2024, actual experience for lapses in accident and health products was higher than expected.
For the three months ended March 31, 2025, actual experience for lapses in traditional life products was higher than expected. For the three months ended March 31, 2024, actual experience for lapses in traditional life products was lower than expected.
Contractholder funds
As of March 31, 2025, all contractholder funds are classified as held for sale.
Contractholder funds activity
Three months ended March 31,
($ in millions)20252024
Beginning balance$890 $888 
Deposits30 34 
Interest credited8 9 
Benefits(8)(2)
Surrenders and partial withdrawals(7)(6)
Contract charges(29)(30)
Other adjustments(2)(3)
Ending balance$882 $890 
Components of contractholder funds
Interest-sensitive life insurance$844 $846 
Fixed annuities38 44 
Total $882 $890 
Weighted-average crediting rate4.23 %4.20 %
Net amount at risk (1)
$10,679 $11,364 
Cash surrender value$735 $731 
(1)Guaranteed benefit amounts in excess of the current account balances.