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Other Insurance Liabilities and Separate Accounts (Tables)

3 Months Ended

Mar. 31, 2024

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 unaudited condensed consolidated balance sheets, during the three months ended March 31, 2024 and 2023:

			Three Months Ended March 31, 2024
In millions			Large Case Pensions						Long-Term Care
Present value of expected net premiums (1)
Liability for future policy benefits, beginning of the period - current discount rate									$	293
Beginning liability for future policy benefits at original (locked-in) discount rate									$	288
Effect of changes in cash flow assumptions									—
Effect of actual variances from expected experience									5
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate									293
Interest accrual (using locked-in discount rate)									4
Net premiums (actual)									(10)
Ending liability for future policy benefits at original (locked-in) discount rate									287
Effect of changes in discount rate assumptions									(2)
Liability for future policy benefits, end of the period - current discount rate									$	285
Present value of expected future policy benefits
Liability for future policy benefits, beginning of the period - current discount rate			$	2,139					$	1,640
Beginning liability for future policy benefits at original (locked-in) discount rate			$	2,251					$	1,632
Effect of changes in cash flow assumptions			—						—
Effect of actual variances from expected experience			(8)						—
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate			2,243						1,632
Issuances			20						—
Interest accrual (using locked-in discount rate)			24						21
Benefit payments (actual)			(63)						(18)
Ending liability for future policy benefits at original (locked-in) discount rate			2,224						1,635
Effect of changes in discount rate assumptions			(151)						(41)
Liability for future policy benefits, end of the period - current discount rate			$	2,073					$	1,594
Net liability for future policy benefits			$	2,073					$	1,309
Less: Reinsurance recoverable			—						—
Net liability for future policy benefits, net of reinsurance recoverable			$	2,073					$	1,309

_____________________________________________

(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.

			Three Months Ended March 31, 2023
In millions			Large Case Pensions						Long-Term Care
Present value of expected net premiums (1)
Liability for future policy benefits, beginning of the 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									—
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate									302
Interest accrual (using locked-in discount rate)									4
Net premiums (actual)									(10)
Ending liability for future policy benefits at original (locked-in) discount rate									296
Effect of changes in discount rate assumptions									5
Liability for future policy benefits, end of the period - current discount rate									$	301
Present value of expected future policy benefits
Liability for future policy benefits, beginning of the 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						(2)
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate			2,428						1,611
Issuances			5						—
Interest accrual (using locked-in discount rate)			25						20
Benefit payments (actual)			(73)						(18)
Ending liability for future policy benefits at original (locked-in) discount rate			2,385						1,613
Effect of changes in discount rate assumptions			(115)						12
Liability for future policy benefits, end of the period - current discount rate			$	2,270					$	1,625
Net liability for future policy benefits			$	2,270					$	1,324
Less: Reinsurance recoverable			—						—
Net liability for future policy benefits, net of reinsurance recoverable			$	2,270					$	1,324

_____________________________________________

(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 March 31, 2024 and 2023 were as follows:

In millions			March 31, 2024						March 31, 2023
Large case pensions
Expected future benefit payments			$	3,213					$	3,463
Expected gross premiums			—						—
Long-term care
Expected future benefit payments			$	3,215					$	3,246
Expected gross premiums			411						428

The weighted-average interest rate used in the measurement of the long-duration insurance liabilities as of March 31, 2024 and 2023 were as follows:

			March 31, 2024						March 31, 2023
Large case pensions
Interest accretion rate			4.20%						4.20%
Current discount rate			5.22%						4.90%
Long-term care
Interest accretion rate			5.11%						5.11%
Current discount rate			5.36%						5.06%

The weighted-average durations (in years) of the long-duration insurance liabilities as of March 31, 2024 and 2023 were as follows:

			March 31, 2024						March 31, 2023
Large case pensions			7.3						7.4
Long-term care			12.0						12.5

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 unaudited condensed consolidated balance sheets, during the three months ended March 31, 2024 and 2023:

			Three Months Ended March 31,
In millions, except weighted average crediting rate			2024						2023
Policyholders’ funds, beginning of the period			$	332					$	345
Deposits received			9						(4)
Policy charges			(1)						—
Surrenders and withdrawals			(4)						(7)
Interest credited			3						3
Change in net unrealized gains (losses)			(6)						21
Other			(4)						(9)
Policyholders’ funds, end of the period			$	329					$	349
Weighted average crediting rate			4.30%						4.55%
Net amount at risk			$	—					$	—
Cash surrender value			$	320					$	332

Summary of Separate Account Assets

Separate Accounts financial assets as of March 31, 2024 and December 31, 2023 were as follows:

			March 31, 2024																								December 31, 2023
In millions			Level 1						Level 2						Level 3						Total						Level 1						Level 2						Level 3						Total
Cash and cash equivalents			$	1					$	150					$	—					$	151					$	2					$	166					$	—					$	168
Debt securities			593						1,910						—						2,503						558						1,949						—						2,507
Common/collective trusts			—						572						—						572						—						529						—						529
Total (1)			$	594					$	2,632					$	—					$	3,226					$	560					$	2,644					$	—					$	3,204

_____________________________________________

(1)Excludes $45 million and $46 million of other receivables at March 31, 2024 and December 31, 2023, respectively.

The following table shows the fair value of assets, by major investment category, supporting Separate Accounts as of March 31, 2024 and December 31, 2023:

In millions			March 31, 2024						December 31, 2023
Cash and cash equivalents			$	151					$	168
Debt securities:
U.S. government securities			588						573
States, municipalities and political subdivisions			21						28
U.S. corporate securities			1,645						1,632
Foreign securities			203						202
Residential mortgage-backed securities			32						51
Commercial mortgage-backed securities			3						6
Other asset-backed securities			11						15
Total debt securities			2,503						2,507
Common/collective trusts			572						529
Total (1)			$	3,226					$	3,204

_____________________________________________

(1)Excludes $45 million and $46 million of other receivables at March 31, 2024 and December 31, 2023, respectively.

Roll Forward of Separate Accounts

The following table shows the components of the change in Separate Accounts liabilities during the three months ended March 31, 2024 and 2023:

			Three Months Ended March 31,
In millions			2024						2023
Separate Accounts liability, beginning of the period			$	3,250					$	3,228
Premiums and deposits			201						246
Surrenders and withdrawals			(93)						—
Benefit payments			(223)						(260)
Investment earnings			128						23
Net transfers from general account			2						—
Other			6						(6)
Separate Accounts liability, end of the period			$	3,271					$	3,231
Cash surrender value, end of the period			$	2,201					$	2,142

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