XML 63 R53.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

FUTURE POLICY BENEFITS (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2024
Insurance [Abstract] |
Schedule of Changes in the Liability for Future Policy Benefits | The reconciliation of the balances described in the table below to the “Future policy benefits” in the statements of financial position is as follows.
AS OF US$ MILLIONS |  | June 30, 2024 |  | December 31, 2023
Future policy benefits: |  |  |  |
Annuity |  | $ | 6,904 |  |  | $ | 5,731 |
Life |  | 1,864 |  |  | 1,895 |
Deferred profit liability: |  |  |  |
Annuity |  | 246 |  |  | 259 |
Life |  | 83 |  |  | 66 |
Other contracts and VOBA liability |  | 1,823 |  |  | 1,862 |
Total future policy benefits |  | $ | 10,920 |  |  | $ | 9,813 |
The balances and changes in the liability for future policy benefits are as follows:
AS OF AND FOR THE SIX MONTHS ENDED JUN. 30, 2024 US$ MILLIONS, EXCEPT FOR YEARS AND PERCENTAGES |  | Annuity |  |  |  | Life |  | Total
Present value of expected net premiums: |  |  |  |  |  |  |  |
Balance, beginning of period |  | $ | — |  |  |  |  | $ | 3,145 |  |  | $ | 3,145 |
Beginning balance at original discount rate |  | — |  |  |  |  | 3,253 |  |  | 3,253 |
Effect of changes in cash flow assumptions 1 |  | — |  |  |  |  | (62) |  |  | (62) |
Effect of actual variances from expected experience |  | 6 |  |  |  |  | (34) |  |  | (28) |
Adjusted beginning of period balance |  | 6 |  |  |  |  | 3,157 |  |  | 3,163 |
Issuances |  | 1,280 |  |  |  |  | 32 |  |  | 1,312 |
Interest accrual |  | 9 |  |  |  |  | 62 |  |  | 71 |
Net premiums collected |  | (1,295) |  |  |  |  | (162) |  |  | (1,457) |
Derecognitions (lapses and withdrawals) |  | — |  |  |  |  | 1 |  |  | 1 |
Ending balance at original discount rate |  | — |  |  |  |  | 3,090 |  |  | 3,090 |
Effect of changes in discount rate assumptions |  | — |  |  |  |  | (235) |  |  | (235) |
Balance, end of period |  | $ | — |  |  |  |  | $ | 2,855 |  |  | $ | 2,855 |
Present value of expected future policy benefits: |  |  |  |  |  |  |  |
Balance, beginning of period |  | $ | 5,731 |  |  |  |  | $ | 5,040 |  |  | $ | 10,771 |
Beginning balance at original discount rate |  | 5,909 |  |  |  |  | 5,277 |  |  | 11,186 |
Effect of changes in cash flow assumptions 1 |  | 12 |  |  |  |  | 74 |  |  | 86 |
Effect of actual variances from expected experience |  | 19 |  |  |  |  | (33) |  |  | (14) |
Adjusted beginning of period balance |  | 5,940 |  |  |  |  | 5,318 |  |  | 11,258 |
Acquisition from business combination |  | 311 |  |  |  |  | — |  |  | 311 |
Issuances |  | 1,287 |  |  |  |  | 32 |  |  | 1,319 |
Interest accrual |  | 144 |  |  |  |  | 101 |  |  | 245 |
Benefit payments |  | (312) |  |  |  |  | (228) |  |  | (540) |
Derecognitions (lapses and withdrawals) |  | 1 |  |  |  |  | 1 |  |  | 2 |
Foreign currency translation |  | (114) |  |  |  |  | — |  |  | (114) |
Ending balance at original discount rate |  | 7,257 |  |  |  |  | 5,224 |  |  | 12,481 |
Effect of changes in discount rate assumptions |  | (353) |  |  |  |  | (505) |  |  | (858) |
Balance, end of period |  | $ | 6,904 |  |  |  |  | $ | 4,719 |  |  | $ | 11,623 |
Net liability for future policy benefits |  | 6,904 |  |  |  |  | 1,864 |  |  | 8,768 |
Less: Reinsurance recoverables |  | (35) |  |  |  |  | (46) |  |  | (81) |
Net liability for future policy benefits, after reinsurance recoverable |  | $ | 6,869 |  |  |  |  | $ | 1,818 |  |  | $ | 8,687 |
Weighted-average liability duration of future policy benefits (years) |  | 8 |  | 16
Weighted average interest accretion rate |  | 5 | % |  | 5 | %
Weighted average current discount rate |  | 5 | % |  | 6 | %
1.For the six months ended June 30, 2024, the Company recognized liability remeasurement losses of $60 million from the net effect of the changes in cash flow assumptions, which were included in “Policyholder benefits and claims incurred” in the statements of operations.
AS OF AND FOR THE SIX MONTHS ENDED JUN. 30, 2023 US$ MILLIONS, EXCEPT FOR YEARS AND PERCENTAGES |  | Annuity |  | Life |  | Total
Present value of expected net premiums: |  |  |  |  |  |
Balance, beginning of period |  | $ | — |  |  | $ | 3,520 |  |  | $ | 3,520 |
Beginning balance at original discount rate |  | — |  |  | 3,825 |  |  | 3,825 |
Effect of changes in cash flow assumptions 1 |  | — |  |  | 1 |  |  | 1 |
Effect of actual variances from expected experience |  | 1 |  |  | (26) |  |  | (25) |
Adjusted beginning of period balance |  | 1 |  |  | 3,800 |  |  | 3,801 |
Issuances |  | 664 |  |  | 58 |  |  | 722 |
Interest accrual |  | 6 |  |  | 57 |  |  | 63 |
Net premiums collected |  | (671) |  |  | (176) |  |  | (847) |
Derecognitions (lapses and withdrawals) |  | — |  |  | 1 |  |  | 1 |
Ending balance at original discount rate |  | — |  |  | 3,740 |  |  | 3,740 |
Effect of changes in discount rate assumptions |  | — |  |  | (238) |  |  | (238) |
Balance, end of period |  | $ | — |  |  | $ | 3,502 |  |  | $ | 3,502 |
Present value of expected future policy benefits: |  |  |  |  |  |
Balance, beginning of period |  | $ | 4,252 |  |  | $ | 5,330 |  |  | $ | 9,582 |
Beginning balance at original discount rate |  | 4,673 |  |  | 5,875 |  |  | 10,548 |
Effect of changes in cash flow assumptions 1 |  | (12) |  |  | 1 |  |  | (11) |
Effect of actual variances from expected experience |  | (16) |  |  | (27) |  |  | (43) |
Adjusted beginning of period balance |  | 4,645 |  |  | 5,849 |  |  | 10,494 |
Issuances |  | 667 |  |  | 58 |  |  | 725 |
Interest accrual |  | 92 |  |  | 88 |  |  | 180 |
Benefit payments |  | (214) |  |  | (147) |  |  | (361) |
Derecognitions (lapses and withdrawals) |  | — |  |  | 1 |  |  | 1 |
Foreign currency translation |  | 75 |  |  | — |  |  | 75 |
Ending balance at original discount rate |  | 5,265 |  |  | 5,849 |  |  | 11,114 |
Effect of changes in discount rate assumptions |  | (331) |  |  | (412) |  |  | (743) |
Effect of foreign currency translation on the effect of changes in discount rate assumptions |  | (6) |  |  | — |  |  | (6) |
Balance, end of period |  | $ | 4,928 |  |  | $ | 5,437 |  |  | $ | 10,365 |
Net liability for future policy benefits |  | 4,928 |  |  | 1,935 |  |  | 6,863 |
Less: Reinsurance recoverables |  | (54) |  |  | (48) |  |  | (102) |
Net liability for future policy benefits, after reinsurance recoverable |  | $ | 4,874 |  |  | $ | 1,887 |  |  | $ | 6,761 |
Weighted-average liability duration of future policy benefits (years) |  | 9 |  | 16
Weighted average interest accretion rate |  | 4 | % |  | 5 | %
Weighted average current discount rate |  | 6 | % |  | 5 | %
1.For the six months ended June 30, 2023, the Company recognized liability remeasurement gains of $1 million from the net effect of the changes in cash flow assumptions, which were included in “Policyholder benefits and claims incurred” in the statements of operations. The amounts of undiscounted and discounted expected gross premiums and future benefit payments follow:
AS OF JUN. 30 US$ MILLIONS |  | 2024 |  | 2023
| Undiscounted |  | Discounted |  | Undiscounted |  | Discounted
Annuity: |  |  |  |  |  |  |  |
Expected future benefit payments |  | $ | 11,414 |  |  | $ | 6,877 |  |  | $ | 7,991 |  |  | $ | 4,929 |
Expected future gross premiums |  | — |  |  | — |  |  | 509 |  |  | — |
Life: |  |  |  |  |  |
Expected future benefit payments |  | $ | 10,375 |  |  | $ | 4,799 |  |  | $ | 12,052 |  |  | $ | 5,436 |
Expected future gross premiums |  | 14,649 |  |  | 8,507 |  |  | 9,007 |  |  | 3,509 |
Total: |  |  |  |  |  |  |  |
Expected future benefit payments |  | $ | 21,789 |  |  | $ | 11,676 |  |  | $ | 20,043 |  |  | $ | 10,365 |
Expected future gross premiums |  | 14,649 |  |  | 8,507 |  |  | 9,516 |  |  | 3,509 |
The amount of revenue and interest recognized in the statements of operations follows:
FOR THE PERIODS ENDED JUN. 30 US$ MILLIONS |  | Three Months Ended |  |  |  | Six Months Ended
| Gross Premiums or Assessments |  | Interest Expense |  |  |  | Gross Premiums or Assessments |  | Interest Expense
| 2024 |  | 2023 |  |  |  | 2024 |  | 2023 |  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Annuity: |  | $ | 1,313 |  |  | $ | 502 |  |  |  |  | $ | 137 |  |  | $ | 41 |  |  |  |  | $ | 2,005 |  |  | $ | 694 |  |  | $ | 203 |  |  | $ | 51 |
Life: |  | 222 |  |  | 114 |  |  |  |  | 39 |  |  | 30 |  |  |  |  | 335 |  |  | 230 |  |  | 59 |  |  | 43 |

X
- References No definition available. + Details
Name: | us-gaap_InsuranceAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of beginning balance to ending balance for liability for future policy benefit, with separate presentation of expected future net premium and expected future benefit. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (g)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480016/944-40-65-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 55 -Paragraph 29E -Publisher FASB -URI https://asc.fasb.org/1943274/2147480046/944-40-55-29E Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480081/944-40-50-6 + Details
Name: | us-gaap_LiabilityForFuturePolicyBenefitActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration