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Other Insurance Liabilities and Separate Accounts | 9 Months Ended
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Sep. 30, 2024
Insurance [Abstract] |
Other Insurance Liabilities and Separate Accounts | Other Insurance Liabilities and Separate Accounts 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 nine months ended September 30, 2024 and 2023:
| Nine Months Ended September 30, 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 |  |  | 12 |
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate |  |  | 300 |
Interest accrual (using locked-in discount rate) |  |  | 11 |
Net premiums (actual) |  |  | (29) |
Ending liability for future policy benefits at original (locked-in) discount rate |  |  | 282 |
Effect of changes in discount rate assumptions |  |  | 6 |
Liability for future policy benefits, end of the period - current discount rate |  |  | $ | 288 |
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 | (20) |  |  | 5 |
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate | 2,231 |  |  | 1,637 |
Issuances | 26 |  |  | — |
Interest accrual (using locked-in discount rate) | 69 |  |  | 61 |
Benefit payments (actual) | (192) |  |  | (55) |
Ending liability for future policy benefits at original (locked-in) discount rate | 2,134 |  |  | 1,643 |
Effect of changes in discount rate assumptions | (90) |  |  | 12 |
Liability for future policy benefits, end of the period - current discount rate | $ | 2,044 |  |  | $ | 1,655 |
Net liability for future policy benefits | $ | 2,044 |  |  | $ | 1,367 |
Less: Reinsurance recoverable | — |  |  | — |
Net liability for future policy benefits, net of reinsurance recoverable | $ | 2,044 |  |  | $ | 1,367 |
_____________________________________________ (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.
| Nine Months Ended September 30, 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 |  |  | 7 |
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate |  |  | 309 |
Interest accrual (using locked-in discount rate) |  |  | 11 |
Net premiums (actual) |  |  | (29) |
Ending liability for future policy benefits at original (locked-in) discount rate |  |  | 291 |
Effect of changes in discount rate assumptions |  |  | (12) |
Liability for future policy benefits, end of the period - current discount rate |  |  | $ | 279 |
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 | 1 |  |  | 9 |
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate | 2,426 |  |  | 1,622 |
Issuances | 8 |  |  | — |
Interest accrual (using locked-in discount rate) | 74 |  |  | 61 |
Benefit payments (actual) | (210) |  |  | (53) |
Ending liability for future policy benefits at original (locked-in) discount rate | 2,298 |  |  | 1,630 |
Effect of changes in discount rate assumptions | (247) |  |  | (146) |
Liability for future policy benefits, end of the period - current discount rate | $ | 2,051 |  |  | $ | 1,484 |
Net liability for future policy benefits | $ | 2,051 |  |  | $ | 1,205 |
Less: Reinsurance recoverable | — |  |  | — |
Net liability for future policy benefits, net of reinsurance recoverable | $ | 2,051 |  |  | $ | 1,205 |
_____________________________________________ (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 Company did not have any material differences between the actual experience and expected experience for the significant assumptions used in the computation of the liability for future policy benefits. The amount of undiscounted expected gross premiums and expected future benefit payments for long-duration insurance liabilities as of September 30, 2024 and 2023 were as follows:
In millions | September 30, 2024 |  | September 30, 2023
Large case pensions |  |  |
Expected future benefit payments | $ | 3,091 |  | $ | 3,337
Expected gross premiums | — |  | —
Long-term care |  |  |
Expected future benefit payments | $ | 3,198 |  | $ | 3,237
Expected gross premiums | 402 |  | 419
The weighted-average interest rate used in the measurement of the long-duration insurance liabilities as of September 30, 2024 and 2023 were as follows:
| September 30, 2024 |  | September 30, 2023
Large case pensions |  |  |
Interest accretion rate | 4.20% |  | 4.20%
Current discount rate | 4.82% |  | 5.86%
Long-term care |  |  |
Interest accretion rate | 5.11% |  | 5.11%
Current discount rate | 5.07% |  | 5.99%
The weighted-average durations (in years) of the long-duration insurance liabilities as of September 30, 2024 and 2023 were as follows:
| September 30, 2024 |  | September 30, 2023
Large case pensions | 7.3 |  | 7.4
Long-term care | 11.8 |  | 12.2
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 nine months ended September 30, 2024 and 2023:
| Nine Months Ended September 30,
In millions, except weighted average crediting rate | 2024 |  | 2023
Policyholders’ funds, beginning of the period | $ | 332 |  | $ | 345
Deposits received | 2 |  | 1
Policy charges | (1) |  | (2)
Surrenders and withdrawals | (9) |  | (23)
Interest credited | 8 |  | 9
Change in net unrealized gains (losses) | 17 |  | (4)
Other | (18) |  | (23)
Policyholders’ funds, end of the period | $ | 331 |  | $ | 303
Weighted average crediting rate | 4.30% |  | 4.40%
Net amount at risk | $ | — |  |  | $ | — |
Cash surrender value | $ | 310 |  |  | $ | 324 |
Separate Accounts The following table shows the fair value of assets, by major investment category, supporting Separate Accounts as of September 30, 2024 and December 31, 2023:
In millions | September 30, 2024 |  | December 31, 2023
Cash and cash equivalents | $ | 165 |  |  | $ | 168 |
Debt securities: |  |  |
U.S. government securities | 223 |  |  | 573 |
States, municipalities and political subdivisions | 16 |  |  | 28 |
U.S. corporate securities | 527 |  |  | 1,632 |
Foreign securities | 52 |  |  | 202 |
Residential mortgage-backed securities | 68 |  |  | 51 |
Commercial mortgage-backed securities | 3 |  |  | 6 |
Other asset-backed securities | 10 |  |  | 15 |
Total debt securities | 899 |  |  | 2,507 |
Common/collective trusts | 2,372 |  |  | 529 |
Total (1) | $ | 3,436 |  |  | $ | 3,204 |
_____________________________________________ (1)Excludes $102 million of other payables and $46 million of other receivables at September 30, 2024 and December 31, 2023, respectively. The following table shows the components of the change in Separate Accounts liabilities during the nine months ended September 30, 2024 and 2023:
| Nine Months Ended September 30,
In millions | 2024 |  | 2023
Separate Accounts liability, beginning of the period | $ | 3,250 |  |  | $ | 3,228 |
Premiums and deposits | 661 |  |  | 657 |
Surrenders and withdrawals | (203) |  |  | (7) |
Benefit payments | (706) |  |  | (714) |
Investment earnings | 327 |  |  | 42 |
Net transfers from general account | 8 |  |  | 4 |
Other | (3) |  |  | (10) |
Separate Accounts liability, end of the period | $ | 3,334 |  |  | $ | 3,200 |
Cash surrender value, end of the period | $ | 2,209 |  |  | $ | 2,136 |
The Company did not recognize any gains or losses on assets transferred to Separate Accounts during the nine months ended September 30, 2024 and 2023.

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- Definition The entire disclosure for cost related directly to successful acquisition of new and renewal of insurance contract. Includes, but is not limited to, deferred policy acquisition cost, deferred sale inducement cost, and present value of future profit of insurance contract acquired in business combination. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479735/944-20-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479432/944-30-50-2A Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944-30/tableOfContent + Details
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