XML 231 R19.htm IDEA: XBRL DOCUMENT

Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities

12 Months Ended

Dec. 31, 2024

Policyholder Account Balance [Abstract]

Policyholder Account Balances, Future Policy Benefits and Claims

Policyholder account balances, future policy benefits and claims consisted of the following:


	December 31, 2024		December 31, 2023
	(in millions)
Policyholder account balances
Policyholder account balances	$	32,542	$	27,947

Future policy benefits
Reserve for future policy benefits	7,418		7,763
Deferred profit liability	118		81
Additional liabilities for insurance guarantees	1,389		1,321
Other insurance and annuity liabilities	192		213
Total future policy benefits	9,117		9,378
Policy claims and other policyholders’ funds	214		220
Total policyholder account balances, future policy benefits and claims	$	41,873	$	37,545

Variable Annuities

Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders.

Most of the variable annuity contracts issued by the Company contain a GMDB. The Company previously offered contracts with GMAB, GMWB, and GMIB provisions. See Note 2 and Note 13 for additional information regarding the Company’s variable annuity guarantees. See Note 16 and Note 18 for additional information regarding the Company’s derivative instruments used to hedge risks related to these guarantees.

Structured Variable Annuities

Structured variable annuities provide contractholders the option to allocate a portion of their account value to an indexed account held in a non-insulated separate account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the equity and interest rate risk related to the indexed account with freestanding derivative instruments.

Fixed Annuities

Fixed annuities include deferred, payout and fixed deferred indexed annuity contracts. In 2020, the Company discontinued sales of fixed deferred and fixed deferred indexed annuities.

Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates.

The Company’s fixed index annuity product is a fixed annuity that includes an indexed account. The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap). The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value.

See Note 18 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed accounts.

Insurance Liabilities

UL policies accumulate cash value that increases by a fixed interest rate. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion of their account balance to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders.

IUL is a UL policy that includes an indexed account. The rate of credited interest for funds allocated by a contractholder to the indexed account is linked to the performance of the specific index for the indexed account (subject to stated account parameters, which include a cap and floor, or a spread). The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with freestanding derivative instruments. See Note 18 for additional information regarding the Company’s derivative instruments used to hedge the risk related to IUL.

The Company also offers term life insurance as well as DI products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years.

Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims, unpaid reported claims and claim adjustment expenses.

The balances of and changes in policyholder account balances were as follows:


	Variable Annuities			Structured Variable Annuities			Fixed Annuities			Fixed Indexed Annuities			Non-Life Contingent Payout Annuities
	(in millions, except percentages)
Balance at January 1, 2024	$	4,173		$	10,742		$	5,982		$	307		$	444
Contract deposits	56			4,005			39			—			101
Policy charges	(14)			(3)			—			—			—
Surrenders and other benefits	(628)			(383)			(856)			(16)			(110)

Net transfer from (to) separate account liabilities	(32)			—			—			—			—
Variable account index-linked adjustments	—			1,968			—			—			—
Interest credited	125			1			204			14			12
Balance at December 31, 2024	$	3,680		$	16,330		$	5,369		$	305		$	447

Weighted-average crediting rate	3.3		%	1.9		%	3.7		%	2.0		%	N/A

Cash surrender value (1)	$	3,658		$	15,467		$	5,365		$	279		N/A

	Universal Life Insurance			Variable Universal Life Insurance			Indexed Universal Life Insurance			Other Life Insurance			Total, All Products
	(in millions, except percentages)
Balance at January 1, 2024	$	1,474		$	1,569		$	2,755		$	501		$	27,947
Contract deposits	117			333			181			—			4,832
Policy charges	(173)			(93)			(124)			—			(407)
Surrenders and other benefits	(62)			(80)			(79)			(52)			(2,266)

Net transfer from (to) separate account liabilities	—			(145)			—			—			(177)
Variable account index-linked adjustments	—			—			—			—			1,968
Interest credited	49			63			161			16			645
Balance at December 31, 2024	$	1,405		$	1,647		$	2,894		$	465		$	32,542

Weighted-average crediting rate	3.6		%	3.9		%	2.3		%	4.0		%
Net amount at risk	$	8,312		$	57,473		$	13,593		$	130
Cash surrender value (1)	$	1,280		$	1,092		$	2,447		$	298


	Variable Annuities			Structured Variable Annuities			Fixed Annuities			Fixed Indexed Annuities			Non-Life Contingent Payout Annuities
	(in millions, except percentages)
Balance at January 1, 2023	$	4,752		$	6,410		$	6,799		$	312		$	471
Contract deposits	73			3,084			47			—			91
Policy charges	(10)			—			—			—			—
Surrenders and other benefits	(759)			(156)			(1,086)			(10)			(127)

Net transfer from (to) separate account liabilities	(25)			—			—			—			—
Variable account index-linked adjustments	—			1,403			—			—			—
Interest credited	142			1			222			5			9
Balance at December 31, 2023	$	4,173		$	10,742		$	5,982		$	307		$	444

Weighted-average crediting rate	3.3		%	1.8		%	3.6		%	2.0		%	N/A

Cash surrender value (1)	$	4,146		$	10,129		$	5,974		$	278		N/A

	Universal Life Insurance			Variable Universal Life Insurance			Indexed Universal Life Insurance			Other Life Insurance			Total, All Products
	(in millions, except percentages)
Balance at January 1, 2023	$	1,544		$	1,520		$	2,654		$	524		$	24,986
Contract deposits	123			272			193			1			3,884
Policy charges	(176)			(94)			(121)			—			(401)
Surrenders and other benefits	(69)			(78)			(53)			(44)			(2,382)

Net transfer from (to) separate account liabilities	—			(107)			—			—			(132)
Variable account index-linked adjustments	—			—			—			—			1,403
Interest credited	52			56			82			20			589
Balance at December 31, 2023	$	1,474		$	1,569		$	2,755		$	501		$	27,947

Weighted-average crediting rate	3.6		%	3.9		%	2.0		%	4.0		%
Net amount at risk	$	8,740		$	57,291		$	14,407		$	141
Cash surrender value (1)	$	1,330		$	1,065		$	2,271		$	326

(1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. For variable annuities and VUL, the cash surrender value shown is the proportion of the total cash surrender value related to their fixed account liabilities.

Refer to Note 13 for the net amount at risk for market risk benefits associated with variable and structured variable annuities. Fixed, fixed indexed, and non-life contingent payout annuities do not have net amount at risk in excess of account value. Net amount at risk for insurance products is calculated as the death benefit amount in excess of applicable account values, host, embedded derivative, and separate account liabilities.

The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of December 31, 2024 and 2023 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated. Rates are reset at management’s discretion, subject to guaranteed minimums.


December 31, 2024
					Account Values with Crediting Rates
	Range of Guaranteed Minimum Crediting Rates				At Guaranteed Minimum		1-49 bps above Guaranteed Minimum		50-99 bps above Guaranteed Minimum		100-150 bps above Guaranteed Minimum		Greater than 150 bps above Guaranteed Minimum		Total
					(in millions, except percentages)
Fixed accounts of variable annuities	1	%	–	1.99%	$	24	$	95	$	65	$	17	$	—	$	201
	2	%	–	2.99%	112		—		—		—		—		112
	3	%	–	3.99%	1,894		7		—		1		—		1,902
	4	%	–	5.00%	1,412		—		—		—		—		1,412
	Total				$	3,442	$	102	$	65	$	18	$	—	$	3,627

Fixed accounts of structured variable annuities	1	%	–	1.99%	$	2	$	20	$	9	$	—	$	—	$	31
	2	%	–	2.99%	13		—		—		—		—		13
	3	%	–	3.99%	1		—		—		—		—		1
	4	%	–	5.00%	—		—		—		—		—		—
	Total				$	16	$	20	$	9	$	—	$	—	$	45

Fixed annuities	1	%	–	1.99%	$	85	$	237	$	152	$	89	$	14	$	577
	2	%	–	2.99%	22		14		2		—		—		38
	3	%	–	3.99%	2,410		—		—		—		—		2,410
	4	%	–	5.00%	2,331		—		—		—		—		2,331
	Total				$	4,848	$	251	$	154	$	89	$	14	$	5,356

Non-indexed accounts of fixed indexed annuities	1	%	–	1.99%	$	—	$	2	$	5	$	14	$	—	$	21
	2	%	–	2.99%	—		—		—		—		—		—
	3	%	–	3.99%	—		—		—		—		—		—
	4	%	–	5.00%	—		—		—		—		—		—
	Total				$	—	$	2	$	5	$	14	$	—	$	21

Universal life insurance	1	%	–	1.99%	$	—	$	—	$	—	$	—	$	—	$	—
	2	%	–	2.99%	50		4		15		—		—		69
	3	%	–	3.99%	821		—		4		6		—		831
	4	%	–	5.00%	473		4		—		—		—		477
	Total				$	1,344	$	8	$	19	$	6	$	—	$	1,377


					Account Values with Crediting Rates
	Range of Guaranteed Minimum Crediting Rates				At Guaranteed Minimum			1-49 bps above Guaranteed Minimum			50-99 bps above Guaranteed Minimum			100-150 bps above Guaranteed Minimum			Greater than 150 bps above Guaranteed Minimum			Total
					(in millions, except percentages)
Fixed accounts of variable universal life insurance	1	%	–	1.99%	$	—		$	—		$	4		$	1		$	41		$	46
	2	%	–	2.99%	7			14			—			1			12			34
	3	%	–	3.99%	108			1			2			12			—			123
	4	%	–	5.00%	564			21			—			—			—			585
	Total				$	679		$	36		$	6		$	14		$	53		$	788

Non-indexed accounts of indexed universal life insurance	1	%	–	1.99%	$	—		$	—		$	4		$	2		$	—		$	6
	2	%	–	2.99%	—			125			—			—			—			125
	3	%	–	3.99%	—			—			—			—			—			—
	4	%	–	5.00%	—			—			—			—			—			—
	Total				$	—		$	125		$	4		$	2		$	—		$	131

Other life insurance	1	%	–	1.99%	$	—		$	—		$	—		$	—		$	—		$	—
	2	%	–	2.99%	—			—			—			—			—			—
	3	%	–	3.99%	28			—			—			—			—			28
	4	%	–	5.00%	268			—			—			—			—			268
	Total				$	296		$	—		$	—		$	—		$	—		$	296

Total	1	%	–	1.99%	$	111		$	354		$	239		$	123		$	55		$	882
	2	%	–	2.99%	204			157			17			1			12			391
	3	%	–	3.99%	5,262			8			6			19			—			5,295
	4	%	–	5.00%	5,048			25			—			—			—			5,073
	Total				$	10,625		$	544		$	262		$	143		$	67		$	11,641

Percentage of total account values that reset in:
Next 12 months					100.0		%	100.0		%	99.9		%	100.0		%	99.8		%	100.0		%
> 12 months to 24 months					—			—			—			—			—			—
> 24 months					—			—			0.1			—			0.2			—
Total					100.0		%	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%


December 31, 2023
					Account Values with Crediting Rates
	Range of Guaranteed Minimum Crediting Rates				At Guaranteed Minimum		1-49 bps above Guaranteed Minimum		50-99 bps above Guaranteed Minimum		100-150 bps above Guaranteed Minimum		Greater than 150 bps above Guaranteed Minimum		Total
					(in millions, except percentages)
Fixed accounts of variable annuities	1	%	–	1.99%	$	43	$	131	$	52	$	15	$	2	$	243
	2	%	–	2.99%	137		1		—		—		—		138
	3	%	–	3.99%	2,214		—		—		1		—		2,215
	4	%	–	5.00%	1,514		—		—		—		—		1,514
	Total				$	3,908	$	132	$	52	$	16	$	2	$	4,110


					Account Values with Crediting Rates
	Range of Guaranteed Minimum Crediting Rates				At Guaranteed Minimum		1-49 bps above Guaranteed Minimum		50-99 bps above Guaranteed Minimum		100-150 bps above Guaranteed Minimum		Greater than 150 bps above Guaranteed Minimum		Total
					(in millions, except percentages)
Fixed accounts of structured variable annuities	1	%	–	1.99%	$	1	$	18	$	7	$	2	$	—	$	28
	2	%	–	2.99%	11		—		—		—		—		11
	3	%	–	3.99%	—		—		—		—		—		—
	4	%	–	5.00%	—		—		—		—		—		—
	Total				$	12	$	18	$	7	$	2	$	—	$	39

Fixed annuities	1	%	–	1.99%	$	107	$	377	$	183	$	93	$	—	$	760
	2	%	–	2.99%	36		14		1		—		—		51
	3	%	–	3.99%	2,816		1		—		—		—		2,817
	4	%	–	5.00%	2,339		—		—		—		—		2,339
	Total				$	5,298	$	392	$	184	$	93	$	—	$	5,967

Non-indexed accounts of fixed indexed annuities	1	%	–	1.99%	$	—	$	2	$	7	$	13	$	—	$	22
	2	%	–	2.99%	—		—		—		—		—		—
	3	%	–	3.99%	—		—		—		—		—		—
	4	%	–	5.00%	—		—		—		—		—		—
	Total				$	—	$	2	$	7	$	13	$	—	$	22

Universal life insurance	1	%	–	1.99%	$	—	$	—	$	—	$	—	$	—	$	—
	2	%	–	2.99%	51		3		9		—		—		63
	3	%	–	3.99%	854		1		4		4		—		863
	4	%	–	5.00%	518		1		—		—		—		519
	Total				$	1,423	$	5	$	13	$	4	$	—	$	1,445

Fixed accounts of variable universal life insurance	1	%	–	1.99%	$	—	$	2	$	4	$	—	$	24	$	30
	2	%	–	2.99%	13		12		—		1		8		34
	3	%	–	3.99%	122		2		3		6		—		133
	4	%	–	5.00%	607		6		—		—		—		613
	Total				$	742	$	22	$	7	$	7	$	32	$	810

Non-indexed accounts of indexed universal life insurance	1	%	–	1.99%	$	—	$	—	$	2	$	—	$	—	$	2
	2	%	–	2.99%	128		—		—		—		—		128
	3	%	–	3.99%	—		—		—		—		—		—
	4	%	–	5.00%	—		—		—		—		—		—
	Total				$	128	$	—	$	2	$	—	$	—	$	130


					Account Values with Crediting Rates
	Range of Guaranteed Minimum Crediting Rates				At Guaranteed Minimum			1-49 bps above Guaranteed Minimum			50-99 bps above Guaranteed Minimum			100-150 bps above Guaranteed Minimum			Greater than 150 bps above Guaranteed Minimum			Total
					(in millions, except percentages)
Other life insurance	1	%	–	1.99%	$	—		$	—		$	—		$	—		$	—		$	—
	2	%	–	2.99%	—			—			—			—			—			—
	3	%	–	3.99%	30			—			—			—			—			30
	4	%	–	5.00%	295			—			—			—			—			295
	Total				$	325		$	—		$	—		$	—		$	—		$	325

Total	1	%	–	1.99%	$	151		$	530		$	255		$	123		$	26		$	1,085
	2	%	–	2.99%	376			30			10			1			8			425
	3	%	–	3.99%	6,036			4			7			11			—			6,058
	4	%	–	5.00%	5,273			7			—			—			—			5,280
	Total				$	11,836		$	571		$	272		$	135		$	34		$	12,848

Percentage of total account values that reset in:
Next 12 months					99.9		%	99.5		%	99.3		%	100.0		%	100.0		%	99.9		%
> 12 months to 24 months					0.1			0.5			0.6			—			—			0.1
> 24 months					—			—			0.1			—			—			—
Total					100.0		%	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

The following tables summarize the balances of and changes in the liability for future policy benefits:


	Life Contingent Payout Annuities			Term and Whole Life Insurance			Disability Income Insurance			Long Term Care Insurance			Total, All Products
	(in millions, except percentages)
Present Value of Expected Net Premiums:
Balance at January 1, 2024	$	—		$	703		$	104		$	1,146		$	1,953
Beginning balance at original discount rate	—			708			105			1,137			1,950
Effect of changes in cash flow assumptions	—			57			(39)			55			73
Effect of actual variances from expected experience	—			(16)			(13)			(26)			(55)
Adjusted beginning of year balance	$	—		$	749		$	53		$	1,166		$	1,968
Issuances	201			63			9			—			273
Interest accrual	1			38			3			55			97
Net premiums collected	(202)			(76)			(6)			(149)			(433)
Derecognition (lapses)	—			—			—			—			—
Ending balance at original discount rate	$	—		$	774		$	59		$	1,072		$	1,905
Effect of changes in discount rate assumptions	—			(37)			(6)			(15)			(58)
Balance at December 31, 2024	$	—		$	737		$	53		$	1,057		$	1,847

Present Value of Future Policy Benefits:
Balance at January 1, 2024	$	1,164		$	1,325		$	661		$	6,561		$	9,711
Beginning balance at original discount rate	1,222			1,291			621			6,507			9,641
Effect of changes in cash flow assumptions	(24)			67			(61)			58			40
Effect of actual variances from expected experience	(8)			(16)			(25)			(48)			(97)
Adjusted beginning of year balance	$	1,190		$	1,342		$	535		$	6,517		$	9,584
Issuances	201			63			9			—			273
Interest accrual	56			73			34			323			486
Benefit payments	(158)			(125)			(43)			(432)			(758)
Derecognition (lapses)	—			—			—			—			—
Ending balance at original discount rate	$	1,289		$	1,353		$	535		$	6,408		$	9,585
Effect of changes in discount rate assumptions	(85)			(31)			10			(221)			(327)
Balance at December 31, 2024	$	1,204		$	1,322		$	545		$	6,187		$	9,258

Adjustment due to reserve flooring	$	—		$	7		$	—		$	—		$	7

Net liability for future policy benefits	$	1,204		$	592		$	492		$	5,130		$	7,418
Less: reinsurance recoverable	759			424			20			2,591			3,794
Net liability for future policy benefits, after reinsurance recoverable	$	445		$	168		$	472		$	2,539		$	3,624

Discounted expected future gross premiums	$	—		$	1,672		$	836		$	1,247		$	3,755
Expected future gross premiums	$	—		$	2,921		$	1,196		$	1,713		$	5,830
Expected future benefit payments	$	1,846		$	2,286		$	899		$	10,522		$	15,553

Weighted average interest accretion rate	4.5		%	6.0		%	6.3		%	5.0		%
Weighted average discount rate	5.4		%	5.6		%	5.6		%	5.7		%

Weighted average duration of liability (in years)	6			7			7			8


	Life Contingent Payout Annuities			Term and Whole Life Insurance			Disability Income Insurance			Long Term Care Insurance			Total, All Products
	(in millions, except percentages)
Present Value of Expected Net Premiums:
Balance at January 1, 2023	$	—		$	686		$	134		$	1,207		$	2,027
Beginning balance at original discount rate	—			708			137			1,220			2,065
Effect of changes in cash flow assumptions	—			(19)			(19)			19			(19)
Effect of actual variances from expected experience	—			(2)			(18)			(3)			(23)
Adjusted beginning of year balance	$	—		$	687		$	100		$	1,236		$	2,023
Issuances	177			55			12			—			244
Interest accrual	1			36			5			59			101
Net premiums collected	(178)			(70)			(12)			(158)			(418)
Derecognition (lapses)	—			—			—			—			—
Ending balance at original discount rate	$	—		$	708		$	105		$	1,137		$	1,950
Effect of changes in discount rate assumptions	—			(5)			(1)			9			3
Balance at December 31, 2023	$	—		$	703		$	104		$	1,146		$	1,953

Present Value of Future Policy Benefits:
Balance at January 1, 2023	$	1,065		$	1,319		$	696		$	6,439		$	9,519
Beginning balance at original discount rate	1,155			1,313			669			6,569			9,706
Effect of changes in cash flow assumptions	—			(18)			(25)			9			(34)
Effect of actual variances from expected experience	(10)			(1)			(29)			5			(35)
Adjusted beginning of year balance	$	1,145		$	1,294		$	615		$	6,583		$	9,637
Issuances	177			56			11			—			244
Interest accrual	50			73			37			329			489
Benefit payments	(150)			(132)			(42)			(405)			(729)
Derecognition (lapses)	—			—			—			—			—
Ending balance at original discount rate	$	1,222		$	1,291		$	621		$	6,507		$	9,641
Effect of changes in discount rate assumptions	(58)			34			40			54			70
Balance at December 31, 2023	$	1,164		$	1,325		$	661		$	6,561		$	9,711

Adjustment due to reserve flooring	$	—		$	5		$	—		$	—		$	5

Net liability for future policy benefits	$	1,164		$	627		$	557		$	5,415		$	7,763
Less: reinsurance recoverable	880			440			22			2,738			4,080
Net liability for future policy benefits, after reinsurance recoverable	$	284		$	187		$	535		$	2,677		$	3,683

Discounted expected future gross premiums	$	—		$	1,764		$	904		$	1,325		$	3,993
Expected future gross premiums	$	—		$	2,938		$	1,269		$	1,786		$	5,993
Expected future benefit payments	$	1,726		$	2,166		$	1,068		$	10,850		$	15,810

Weighted average interest accretion rate	4.2		%	6.2		%	6.1		%	5.0		%
Weighted average discount rate	4.9		%	5.1		%	5.1		%	5.1		%

Weighted average duration of liability (in years)	7			7			8			8

Impacts of the annual review of policy benefit reserves assumptions are reflected within the effect of changes in cash flow assumptions in the disaggregated rollforwards above. The annual review of policy benefit reserves assumptions in the third quarter of 2024 resulted in a net decrease in future policy benefit reserves, primarily due to decreased disability income insurance claim incidence rates. The annual review of policy benefit reserves assumptions in the third quarter of 2023 resulted in a net decrease in future policy benefit reserves, primarily due to updates to LTC premium rate increase assumptions.

The balances of and changes in additional liabilities related to insurance guarantees were as follows:


	Universal Life Insurance			Variable Universal Life Insurance			Other Life Insurance			Total, All Products
	(in millions, except percentages)
Balance at January 1, 2024	$	1,225		$	81		$	15		$	1,321
Interest accrual	37			6			1			44
Benefit accrual	133			8			3			144
Benefit payments	(69)			(13)			(5)			(87)
Effect of actual variances from expected experience	(2)			(1)			(1)			(4)
Impact of change in net unrealized (gains) losses on securities	(23)			(1)			(5)			(29)
Balance at December 31, 2024	$	1,301		$	80		$	8		$	1,389

Weighted average interest accretion rate	3.0		%	7.0		%	3.9		%
Weighted average discount rate	3.2		%	7.1		%	4.0		%

Weighted average duration of reserves (in years)	10			8			6


	Universal Life Insurance			Variable Universal Life Insurance			Other Life Insurance			Total, All Products
	(in millions, except percentages)
Balance at January 1, 2023	$	1,100		$	74		$	12		$	1,186
Interest accrual	35			5			1			41
Benefit accrual	128			8			2			138
Benefit payments	(50)			(18)			(4)			(72)
Effect of actual variances from expected experience	(13)			11			(2)			(4)
Impact of change in net unrealized (gains) losses on securities	25			1			6			32
Balance at December 31, 2023	$	1,225		$	81		$	15		$	1,321

Weighted average interest accretion rate	3.0		%	6.9		%	4.0		%
Weighted average discount rate	3.2		%	7.1		%	4.0		%

Weighted average duration of reserves (in years)	10			8			6

The amount of revenue and interest recognized in the Statement of Operations was as follows:


	Years Ended December 31,
	2024				2023
	Gross Premiums		Interest Expense		Gross Premiums		Interest Expense
	(in millions)
Life contingent payout annuities	$	226	$	55	$	196	$	49
Term and whole life insurance	172		35		169		37
Disability income insurance	119		31		124		32
Long term care insurance	179		268		185		270
Total	$	696	$	389	$	674	$	388

The following tables summarize the balances of and changes in unearned revenue:


	Universal Life Insurance		Variable Universal Life Insurance		Indexed Universal Life Insurance		Total, All Products
	(in millions)
Balance at January 1, 2024	$	27	$	196	$	266	$	489
Deferral of revenue	—		70		51		121
Amortization	(1)		(17)		(22)		(40)
Balance at December 31, 2024	$	26	$	249	$	295	$	570

Balance at January 1, 2023	$	27	$	150	$	233	$	410
Deferral of revenue	1		59		52		112
Amortization	(1)		(13)		(19)		(33)
Balance at December 31, 2023	$	27	$	196	$	266	$	489

Market Risk Benefits

Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Most of the variable annuity contracts issued by the Company contain a GMDB provision. The Company previously offered contracts containing GMWB, GMAB, or GMIB provisions.

The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has the following primary GMDB provisions:

•Return of premium – provides purchase payments minus adjusted partial surrenders.

•Reset – provides that the value resets to the account value at specified contract anniversary intervals minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered.

•Ratchet – provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders.

The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At contract issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance or by a benefit credit if the contract includes this provision.

The Company has GMWB riders in force, which contain one or more of the following provisions:

•Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount.

•Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”).

•Withdrawals at a specified rate per year for joint contractholders while either is alive.

•Withdrawals based on performance of the contract.

•Withdrawals based on the age withdrawals begin.

•Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken.

Variable annuity contractholders age 79 or younger at contract issue could obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or a specified percentage of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10-year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value.

Individual variable annuity contracts may have both a death benefit and a living benefit. Net amount at risk is quantified for each benefit and a composite net amount at risk is calculated using the greater of the death benefit or living benefit for each individual contract. The net amount at risk for GMDB and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.

The following tables summarize the balances of and changes in market risk benefits:


	Years Ended December 31,
	2024		2023		2022
	(in millions, except age)





Balance at beginning of period	$	335	$	1,103	$	2,901
Issuances	24		17		27
Interest accrual and time decay	(66)		(53)		(237)
Reserve increase from attributed fees collected	790		788		810
Reserve release for benefit payments and derecognition	(11)		(35)		(29)
Effect of changes in interest rates and bond markets	(1,078)		(367)		(4,193)
Effect of changes in equity markets and subaccount performance	(1,228)		(1,267)		2,258
Effect of changes in equity index volatility	59		(67)		205
Actual policyholder behavior different from expected behavior	71		5		17
Effect of changes in other future expected assumptions	106		128		(139)

Effect of changes in the instrument-specific credit risk on market risk benefits	79		83		(517)
Balance at end of period	$	(919)	$	335	$	1,103

Reconciliation of the gross balances in an asset or liability position:
Asset position	$	2,182	$	1,427	$	1,015
Liability position	(1,263)		(1,762)		(2,118)
Net asset (liability) position	$	919	$	(335)	$	(1,103)

Guaranteed benefit amount in excess of current account balances (net amount at risk):
Death benefits	$	462	$	913	$	2,781
Living benefits	$	2,429	$	2,513	$	3,364
Composite (greater of)	$	2,829	$	3,308	$	5,830

Weighted average attained age of contractholders	69		69		68

Changes in unrealized (gains) losses in net income relating to liabilities held at end of period	$	(2,111)	$	(1,551)	$	(2,044)
Changes in unrealized (gains) losses in other comprehensive income (loss) relating to liabilities held at end of period	$	85	$	84	$	(505)

The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits:


	December 31, 2024
	Fair Value		Valuation Technique	Significant Inputs and Assumptions	Range			Weighted Average
	(in millions)










Market risk benefits	$	(919)	Discounted cash flow	Utilization of guaranteed withdrawals (1)	0.0%	–	52.8%	11.9%
				Surrender rate (2)	0.4%	–	75.0%	3.3%
				Market volatility (3)	0.0%	–	24.6%	10.3%
				Nonperformance risk (4)	65 bps			65 bps
				Mortality rate (5)	0.0%	–	41.6%	1.7%


	December 31, 2023
	Fair Value		Valuation Technique	Significant Inputs and Assumptions	Range			Weighted Average
	(in millions)










Market risk benefits	$	335	Discounted cash flow	Utilization of guaranteed withdrawals (1)	0.0%	–	48.0%	11.6%
				Surrender rate (2)	0.3%	–	75.0%	3.7%
				Market volatility (3)	0.0%	–	25.2%	10.6%
				Nonperformance risk (4)	85 bps			85 bps
				Mortality rate (5)	0.0%	–	41.6%	1.6%

(1) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals.

(2) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract.

(3) Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit.

(4) The nonperformance risk is the spread added to the U.S. Treasury curve.

(5) The weighted average mortality rate represents the average assumption weighted based on the account value of each contract.

Changes to Significant Inputs and Assumptions:

During the years ended December 31, 2024 and 2023, the Company updated inputs and assumptions based on management’s review of experience studies. These updates resulted in the following notable changes in the fair value estimates of market risk benefits calculations:

Year ended December 31, 2024

•Updates to utilization of guaranteed withdrawal assumptions resulted in a decrease to pretax income of $15 million.

•Updates to surrender assumptions resulted in a decrease to pretax income of $83 million.

Year ended December 31, 2023

•Updates to utilization of guaranteed withdrawal assumptions resulted in a decrease to pretax income of $18 million.

•Updates to surrender assumptions resulted in a decrease to pretax income of $110 million.

Refer to the rollforward of market risk benefits for the impacts of changes to interest rate, equity market, volatility and nonperformance risk assumptions.

Uncertainty of Fair Value Measurements

Significant increases (decreases) in utilization and volatility used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value.

Significant increases (decreases) in nonperformance risk and surrender assumptions used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.

Significant increases (decreases) in mortality assumptions used in the fair value measurement of the death benefit portion of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value whereas significant increases (decreases) in mortality rates used in the fair value measurement of the life contingent portion of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.

Surrender assumptions, utilization assumptions and mortality assumptions vary with the type of base product, type of rider, duration of the policy, age of the contractholder, calendar year of the projection, previous withdrawal history, and the relationship between the value of the guaranteed benefit and the contract accumulation value.

Determination of Fair Value

The Company values market risk benefits using internal valuation models. These models include observable capital market assumptions and significant unobservable inputs related to implied volatility, contractholder behavior assumptions that include margins for risk, and the Company’s nonperformance risk. These measurements are classified as Level 3.