XML 29 R13.htm IDEA: XBRL DOCUMENT v3.25.2

Other Insurance Liabilities and Separate Accounts

6 Months Ended

Jun. 30, 2025

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 six months ended June 30, 2025 and 2024:

			Six Months Ended June 30, 2025
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									$	275
Beginning liability for future policy benefits at original (locked-in) discount rate									$	280
Effect of changes in cash flow assumptions									—
Effect of actual variances from expected experience									2
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate									282
Interest accrual (using locked-in discount rate)									7
Net premiums (actual)									(19)
Ending liability for future policy benefits at original (locked-in) discount rate									270
Effect of changes in discount rate assumptions									—
Liability for future policy benefits, end of the period - current discount rate									$	270
Present value of expected future policy benefits
Liability for future policy benefits, beginning of the period - current discount rate			$	1,917					$	1,552
Beginning liability for future policy benefits at original (locked-in) discount rate			$	2,090					$	1,647
Effect of changes in cash flow assumptions			—						—
Effect of actual variances from expected experience			(3)						4
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate			2,087						1,651
Issuances			10						—
Interest accrual (using locked-in discount rate)			43						41
Benefit payments (actual)			(123)						(39)
Ending liability for future policy benefits at original (locked-in) discount rate			2,017						1,653
Effect of changes in discount rate assumptions			(139)						(73)
Liability for future policy benefits, end of the period - current discount rate			$	1,878					$	1,580
Net liability for future policy benefits			$	1,878					$	1,310
Less: Reinsurance recoverable			—						—
Net liability for future policy benefits, net of reinsurance recoverable			$	1,878					$	1,310

_____________________________________________

(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.

			Six Months Ended June 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									9
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate									297
Interest accrual (using locked-in discount rate)									8
Net premiums (actual)									(20)
Ending liability for future policy benefits at original (locked-in) discount rate									285
Effect of changes in discount rate assumptions									(4)
Liability for future policy benefits, end of the period - current discount rate									$	281
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			(15)						3
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate			2,236						1,635
Issuances			26						—
Interest accrual (using locked-in discount rate)			46						41
Benefit payments (actual)			(129)						(36)
Ending liability for future policy benefits at original (locked-in) discount rate			2,179						1,640
Effect of changes in discount rate assumptions			(176)						(77)
Liability for future policy benefits, end of the period - current discount rate			$	2,003					$	1,563
Net liability for future policy benefits			$	2,003					$	1,282
Less: Reinsurance recoverable			—						—
Net liability for future policy benefits, net of reinsurance recoverable			$	2,003					$	1,282

_____________________________________________

(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 June 30, 2025 and 2024 were as follows:

In millions			June 30, 2025						June 30, 2024
Large case pensions
Expected future benefit payments			$	2,915					$	3,159
Expected gross premiums			—						—
Long-term care
Expected future benefit payments			$	3,161					$	3,207
Expected gross premiums			383						408

The weighted-average interest rate used in the measurement of the long-duration insurance liabilities as of June 30, 2025 and 2024 were as follows:

			June 30, 2025						June 30, 2024
Large case pensions
Interest accretion rate			4.20%						4.20%
Current discount rate			5.24%						5.42%
Long-term care
Interest accretion rate			5.11%						5.11%
Current discount rate			5.59%						5.57%

The weighted-average durations (in years) of the long-duration insurance liabilities as of June 30, 2025 and 2024 were as follows:

			June 30, 2025						June 30, 2024
Large case pensions			7.2						7.3
Long-term care			11.4						11.9

Separate Accounts

The following table shows the fair value of assets, by major investment category, supporting Separate Accounts as of June 30, 2025 and December 31, 2024:

In millions			June 30, 2025						December 31, 2024
Cash and cash equivalents			$	155					$	165
Debt securities:
U.S. government securities			34						186
States, municipalities and political subdivisions			11						14
U.S. corporate securities			287						524
Foreign securities			38						51
Residential mortgage-backed securities			8						71
Commercial mortgage-backed securities			3						3
Other asset-backed securities			5						7
Total debt securities			386						856
Common/collective trusts			1,190						2,478
Total (1)			$	1,731					$	3,499

_____________________________________________

(1)Excludes $127 million of other receivables and $188 million of other payables at June 30, 2025 and December 31, 2024, respectively.

The following table shows the components of the change in Separate Accounts liabilities during the six months ended June 30, 2025 and 2024:

			Six Months Ended June 30,
In millions			2025						2024
Separate Accounts liability, beginning of the period			$	3,311					$	3,250
Premiums and deposits			442						430
Surrenders and withdrawals			(1,312)						(152)
Benefit payments			(473)						(449)
Investment earnings (losses)			(102)						121
Net transfers from general account			5						4
Other			(13)						(17)
Separate Accounts liability, end of the period			$	1,858					$	3,187
Cash surrender value, end of the period			$	836					$	2,171

The Company did not recognize any gains or losses on assets transferred to Separate Accounts during the six months ended June 30, 2025 and 2024.

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

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 S50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479797/944-20-S50-1

Reference 2: 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 3: 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 4: 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

Name:	us-gaap_InsuranceContractAcquisitionCostTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration