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FUTURE POLICY BENEFITS
 6 Months Ended
Jun. 30, 2024
Insurance [Abstract]  
FUTURE POLICY BENEFITS 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, 2024December 31, 2023
Future policy benefits:
Annuity$6,904 $5,731 
Life1,864 1,895 
Deferred profit liability:
Annuity246 259 
Life83 66 
Other contracts and VOBA liability1,823 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		AnnuityLifeTotal
Present value of expected net premiums:
Balance, beginning of period$— $3,145 $3,145 
Beginning balance at original discount rate— 3,253 3,253 
Effect of changes in cash flow assumptions1
— (62)(62)
Effect of actual variances from expected experience6 (34)(28)
Adjusted beginning of period balance6 3,157 3,163 
Issuances1,280 32 1,312 
Interest accrual9 62 71 
Net premiums collected(1,295)(162)(1,457)
Derecognitions (lapses and withdrawals)— 1 1 
Ending balance at original discount rate— 3,090 3,090 
Effect of changes in discount rate assumptions— (235)(235)
Balance, end of period$— $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 rate5,909 5,277 11,186 
Effect of changes in cash flow assumptions1
12 74 86 
Effect of actual variances from expected experience19 (33)(14)
Adjusted beginning of period balance5,940 5,318 11,258 
Acquisition from business combination311 — 311 
Issuances1,287 32 1,319 
Interest accrual144 101 245 
Benefit payments(312)(228)(540)
Derecognitions (lapses and withdrawals)1 1 2 
Foreign currency translation(114)— (114)
Ending balance at original discount rate7,257 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 benefits6,904 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)816
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		AnnuityLifeTotal
Present value of expected net premiums:
Balance, beginning of period$— $3,520 $3,520 
Beginning balance at original discount rate— 3,825 3,825 
Effect of changes in cash flow assumptions1
— 1 1 
Effect of actual variances from expected experience1 (26)(25)
Adjusted beginning of period balance1 3,800 3,801 
Issuances664 58 722 
Interest accrual6 57 63 
Net premiums collected(671)(176)(847)
Derecognitions (lapses and withdrawals)— 1 1 
Ending balance at original discount rate— 3,740 3,740 
Effect of changes in discount rate assumptions— (238)(238)
Balance, end of period$— $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 rate4,673 5,875 10,548 
Effect of changes in cash flow assumptions1
(12)1 (11)
Effect of actual variances from expected experience(16)(27)(43)
Adjusted beginning of period balance4,645 5,849 10,494 
Issuances667 58 725 
Interest accrual92 88 180 
Benefit payments(214)(147)(361)
Derecognitions (lapses and withdrawals)— 1 1 
Foreign currency translation75 — 75 
Ending balance at original discount rate5,265 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 benefits4,928 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)916
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		20242023
UndiscountedDiscountedUndiscountedDiscounted
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 premiums14,649 8,507 9,007 3,509 
Total:
Expected future benefit payments$21,789 $11,676 $20,043 $10,365 
Expected future gross premiums14,649 8,507 9,516 3,509 
The amount of revenue and interest recognized in the statements of operations follows:
FOR THE PERIODS ENDED JUN. 30
US$ MILLIONS
Three Months Ended
Six Months Ended
Gross Premiums or AssessmentsInterest ExpenseGross Premiums or AssessmentsInterest Expense
20242023202420232024202320242023
Annuity:$1,313 $502 $137 $41 $2,005 $694 $203 $51 
Life:222 114 39 30 335 230 59 43 
LIABILITY FOR UNPAID CLAIMS AND CLAIM ADJUSTMENT EXPENSES
The liability for unpaid claims and claim adjustment expenses (“unpaid claims”) for property and casualty insurance is included in “Policy and contract claims” in the statements of financial position and is the amount estimated for incurred but not reported (“IBNR”) claims and claims that have been reported but not settled (“case reserves”), as well as associated claim adjustment expenses.
Information regarding the liability for unpaid claims is shown below:
AS OF AND FOR THE SIX MONTHS ENDED JUN. 30
US$ MILLIONS		20242023
Policy and contract claims, beginning$7,288 $1,786 
Less: Unpaid claims balance, beginning – long-duration198 217 
Gross unpaid claims balance, beginning – short-duration7,090 1,569 
Less: Reinsurance recoverables, beginning3,045 306 
Foreign currency translation4 — 
Net unpaid claims balance, beginning – short-duration4,041 1,263 
Add: incurred related to
Current accident year1,177 816 
Prior accident years34 (22)
Total incurred claims1,211 794 
Less: paid claims related to
Current accident year306 342 
Prior accident years776 348 
Total paid claims1,082 690 
Net unpaid claims balance, ending – short-duration4,170 1,367 
Foreign currency translation2 — 
Add: Reinsurance recoverables, ending3,026 303 
Gross unpaid claims balance, ending – short-duration7,198 1,670 
Add: Unpaid claims balance, ending – long duration199 198 
Policy and contract claims, ending$7,397 $1,868 
The estimates for ultimate incurred claims attributable to insured events of prior years increased by approximately $34 million and decreased by approximately $22 million, respectively, for the six months ended June 30, 2024 and 2023. The unfavorable development in the first and second quarters of 2024 was primarily related to movements on large individual surety claims within the specialty line of business, which were partially offset by lower-than-anticipated losses arising from the liability line of business, such as business owners, commercial automotive and other commercial businesses. The favorable development in the first six months of 2023 was a reflection of lower-than-anticipated losses arising from the liability line of business, including agribusiness, business owners, commercial automotive, and other commercial businesses.
For short-duration health insurance claims, the total of IBNR plus expected development on reported claims included in the liability for unpaid claims as of June 30, 2024 and December 31, 2023 were $8 million and $4 million, respectively.