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Other Insurance Liabilities and Separate Accounts (Tables) | 12 Months Ended
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Dec. 31, 2023
Insurance [Abstract] |
Schedule of Changes in Liability for Future Policy Benefits | The following tables show the components of the change in the liability for future policy benefits, which is included in other insurance liabilities and other long-term insurance liabilities on the consolidated balance sheets, during the years ended December 31, 2023 and 2022:
| 2023
In millions | Large Case Pensions |  | Long-Term Care |  |  |  |
Present value of expected net premiums (1) |  |  |  |  |  |  |
Liability for future policy benefits, beginning of period - current discount rate |  |  | $ | 300 |  |  |  |  |
Beginning liability for future policy benefits at original (locked-in) discount rate |  |  | $ | 302 |  |  |  |  |
Effect of changes in cash flow assumptions |  |  | — |  |  |  |  |
Effect of actual variances from expected experience |  |  | 10 |  |  |  |  |
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate |  |  | 312 |  |  |  |  |
Interest accrual (using locked-in discount rate) |  |  | 15 |  |  |  |  |
Net premiums (actual) |  |  | (39) |  |  |  |  |
Ending liability for future policy benefits at original (locked-in) discount rate |  |  | 288 |  |  |  |  |
Effect of changes in discount rate assumptions |  |  | 5 |  |  |  |  |
Liability for future policy benefits, end of period - current discount rate |  |  | $ | 293 |  |  |  |  |
Present value of expected future policy benefits |  |  |  |  |  |  |
Liability for future policy benefits, beginning of period - current discount rate | $ | 2,253 |  |  | $ | 1,566 |  |  |  |  |
Beginning liability for future policy benefits at original (locked-in) discount rate | $ | 2,425 |  |  | $ | 1,613 |  |  |  |  |
Effect of changes in cash flow assumptions | — |  |  | — |  |  |  |  |
Effect of actual variances from expected experience | (3) |  |  | 8 |  |  |  |  |
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate | 2,422 |  |  | 1,621 |  |  |  |  |
Issuances | 8 |  |  | — |  |  |  |  |
Interest accrual (using locked-in discount rate) | 97 |  |  | 82 |  |  |  |  |
Benefit payments (actual) | (276) |  |  | (71) |  |  |  |  |
Ending liability for future policy benefits at original (locked-in) discount rate | 2,251 |  |  | 1,632 |  |  |  |  |
Effect of changes in discount rate assumptions | (112) |  |  | 8 |  |  |  |  |
Liability for future policy benefits, end of period - current discount rate | $ | 2,139 |  |  | $ | 1,640 |  |  |  |  |
Net liability for future policy benefits | $ | 2,139 |  |  | $ | 1,347 |  |  |  |  |
Less: Reinsurance recoverable | — |  |  | — |  |  |  |  |
Net liability for future policy benefits, net of reinsurance recoverable | $ | 2,139 |  |  | $ | 1,347 |  |  |  |  |
_____________________________________________ (1)The present value of expected net premiums is equivalent to the present value of expected gross premiums for the long-term care insurance contracts as net premiums are set equal to gross premiums.
| 2022
In millions | Large Case Pensions |  | Long-Term Care |  |  |  |
Present value of expected net premiums (1) |  |  |  |  |  |  |
Liability for future policy benefits, beginning of period - current discount rate |  |  | $ | 389 |  |  |  |  |
Beginning liability for future policy benefits at original (locked-in) discount rate |  |  | $ | 323 |  |  |  |  |
Effect of changes in cash flow assumptions |  |  | (15) |  |  |  |  |
Effect of actual variances from expected experience |  |  | 18 |  |  |  |  |
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate |  |  | 326 |  |  |  |  |
Interest accrual (using locked-in discount rate) |  |  | 16 |  |  |  |  |
Net premiums (actual) |  |  | (40) |  |  |  |  |
Ending liability for future policy benefits at original (locked-in) discount rate |  |  | 302 |  |  |  |  |
Effect of changes in discount rate assumptions |  |  | (2) |  |  |  |  |
Liability for future policy benefits, end of period - current discount rate |  |  | $ | 300 |  |  |  |  |
Present value of expected future policy benefits |  |  |  |  |  |  |
Liability for future policy benefits, beginning of period - current discount rate | $ | 3,034 |  |  | $ | 1,991 |  |  |  |  |
Beginning liability for future policy benefits at original (locked-in) discount rate | $ | 2,650 |  |  | $ | 1,480 |  |  |  |  |
Effect of changes in cash flow assumptions | — |  |  | 99 |  |  |  |  |
Effect of actual variances from expected experience | (44) |  |  | 18 |  |  |  |  |
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate | 2,606 |  |  | 1,597 |  |  |  |  |
Issuances | 4 |  |  | — |  |  |  |  |
Interest accrual (using locked-in discount rate) | 106 |  |  | 80 |  |  |  |  |
Benefit payments (actual) | (291) |  |  | (64) |  |  |  |  |
Ending liability for future policy benefits at original (locked-in) discount rate | 2,425 |  |  | 1,613 |  |  |  |  |
Effect of changes in discount rate assumptions | (172) |  |  | (47) |  |  |  |  |
Liability for future policy benefits, end of period - current discount rate | $ | 2,253 |  |  | $ | 1,566 |  |  |  |  |
Net liability for future policy benefits | $ | 2,253 |  |  | $ | 1,266 |  |  |  |  |
Less: Reinsurance recoverable | — |  |  | — |  |  |  |  |
Net liability for future policy benefits, net of reinsurance recoverable | $ | 2,253 |  |  | $ | 1,266 |  |  |  |  |
_____________________________________________ (1)The present value of expected net premiums is equivalent to the present value of expected gross premiums for the long-term care insurance contracts as net premiums are set equal to gross premiums. The amount of undiscounted expected gross premiums and expected future benefit payments for long-duration insurance liabilities as of December 31, 2023 and 2022 were as follows:
In millions | 2023 |  | 2022 |  |  |  |
Large case pensions |  |  |  |  |  |  |
Expected future benefit payments | $ | 3,266 |  | $ | 3,539 |  |  |  |
Expected gross premiums | — |  | — |  |  |  |
Long-term care |  |  |  |  |  |  |
Expected future benefit payments | $ | 3,224 |  | $ | 3,265 |  |  |  |
Expected gross premiums | 414 |  | 437 |  |  |  |
The weighted-average interest rate used in the measurement of the long-duration insurance liabilities as of December 31, 2023 and 2022 were as follows:
| 2023 |  | 2022
Large case pensions |  |  |
Interest accretion rate | 4.20% |  | 4.20%
Current discount rate | 4.93% |  | 5.24%
Long-term care |  |  |
Interest accretion rate | 5.11% |  | 5.11%
Current discount rate | 5.08% |  | 5.39%
The weighted-average durations (in years) of the long-duration insurance liabilities as of December 31, 2023 and 2022 were as follows:
| 2023 |  | 2022
Large case pensions | 7.3 |  | 7.4
Long-term care | 12.1 |  | 12.6
Roll Forward of Policyholders' Funds | The following table shows the components of the change in policyholders’ funds related to long-duration insurance contracts, which are included in policyholders’ funds and other long-term liabilities on the consolidated balance sheets, during the years ended December 31, 2023 and 2022:
In millions, except weighted average crediting rate | 2023 |  | 2022
Policyholders’ funds, beginning of the period | $ | 345 |  | $ | 522
Deposits received | — |  | 13
Policy charges | (2) |  | (2)
Surrenders and withdrawals | (35) |  | (31)
Interest credited | 9 |  | 11
Change in net unrealized gains (losses) | 39 |  | (148)
Other | (24) |  | (20)
Policyholders’ funds, end of the period | $ | 332 |  | $ | 345
Weighted average crediting rate | 4.32% |  | 4.72%
Net amount at risk | $ | — |  |  | $ | — |
Cash surrender value | $ | 313 |  |  | $ | 339 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Separate Accounts financial assets at December 31, 2023 and 2022 were as follows:
| December 31, 2023 |  | December 31, 2022
In millions | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and cash equivalents | $ | 2 |  |  | $ | 166 |  |  | $ | — |  |  | $ | 168 |  |  | $ | 2 |  |  | $ | 154 |  |  | $ | — |  |  | $ | 156 |
Debt securities | 558 |  |  | 1,949 |  |  | — |  |  | 2,507 |  |  | 712 |  |  | 1,965 |  |  | — |  |  | 2,677 |
Common/collective trusts | — |  |  | 529 |  |  | — |  |  | 529 |  |  | — |  |  | 480 |  |  | — |  |  | 480 |
Total (1) | $ | 560 |  |  | $ | 2,644 |  |  | $ | — |  |  | $ | 3,204 |  |  | $ | 714 |  |  | $ | 2,599 |  |  | $ | — |  |  | $ | 3,313 |
_____________________________________ (1)Excludes $46 million of other receivables and $85 million of other payables at December 31, 2023 and 2022, respectively. The following table shows the fair value of assets, by major investment category, supporting Separate Accounts as of December 31, 2023 and 2022:
In millions | 2023 |  | 2022
Cash and cash equivalents | $ | 168 |  |  | 156 |
Debt securities: |  |  |
U.S. government securities | 573 |  |  | 717 |
States, municipalities and political subdivisions | 28 |  |  | 27 |
U.S. corporate securities | 1,632 |  |  | 1,667 |
Foreign securities | 202 |  |  | 201 |
Residential mortgage-backed securities | 51 |  |  | 41 |
Commercial mortgage-backed securities | 6 |  |  | 6 |
Other asset-backed securities | 15 |  |  | 18 |
Total debt securities | 2,507 |  |  | 2,677 |
Common/collective trusts | 529 |  |  | 480 |
Total (1) | $ | 3,204 |  |  | $ | 3,313 |
_____________________________________________ (1)Excludes $46 million of other receivables and $85 million of other payables at December 31, 2023 and 2022, respectively.
Roll Forward of Separate Accounts | The following table shows the components of the change in Separate Accounts liabilities during the years ended December 31, 2023 and 2022:
In millions | 2023 |  | 2022
Separate Accounts liability, beginning of the period | $ | 3,228 |  |  | $ | 5,087 |
Premiums and deposits | 860 |  |  | 853 |
Surrenders and withdrawals | (9) |  |  | (581) |
Benefit payments | (938) |  |  | (947) |
Investment earnings | 100 |  |  | (1,130) |
Net transfers from general account | 7 |  |  | 9 |
Other | 2 |  |  | (63) |
Separate Accounts liability, end of the period | $ | 3,250 |  |  | $ | 3,228 |
Cash surrender value, end of the period | $ | 2,181 |  |  | $ | 2,087 |

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