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Life Policy And Investment Contract Reserves (Tables)

12 Months Ended

Dec. 31, 2024

Insurance [Abstract]

Reserves for Loss and Loss Adjustment Expenses

The following table summarizes our life policy and investment contract reserves and provides a reconciliation of the balances described in the below tables to those in the consolidated balance sheets:

(Dollars in millions)						At December 31,
						2024						2023
Life policy reserves:
Term						$	1,051					$	1,066
Whole life						405						434
Other						98						97
Subtotal						1,554						1,597
Investment contract reserves:
Deferred annuities						595						656
Universal life						586						585
Structured settlements						116						123
Other						109						107
Subtotal						1,406						1,471
Total life policy and investment contract reserves						$	2,960					$	3,068

Liability for Future Policy Benefit, Activity

he balances and changes in the term and whole life policy reserves included in life policy and investment contract reserves is as follows:

(Dollars in millions)						Years ended December 31,
						2024												2023												2022
						Term						Whole life						Term						Whole life						Term						Whole life
Present value of expected net premiums:
Balance, beginning of period						$	1,700					$	223					$	1,643					$	208					$	1,801					$	241
Beginning balance at original discount rate						1,712						225						1,708						217						1,503						201
Effect of changes in cash flow assumptions						(12)						1						(7)						(7)						123						(5)
Effect of actual variances from expected experience						(20)						(4)						(20)						3						(1)						—
Adjusted beginning of period balance						1,680						222						1,681						213						1,625						196
Issuances						149						25						143						31						194						40
Interest accrual						74						10						72						9						65						8
Net premiums collected						(184)						(29)						(184)						(28)						(176)						(27)
Ending balance at original discount rate						1,719						228						1,712						225						1,708						217
Effect of changes in discount rate assumptions						(81)						(10)						(12)						(2)						(65)						(9)
Balance, end of period						1,638						218						1,700						223						1,643						208
Present value of expected future policy benefits:
Balance, beginning of period						2,751						657						2,584						614						2,993						826
Beginning balance at original discount rate						2,765						628						2,692						607						2,425						577
Effect of changes in cash flow assumptions						(29)						—						2						(10)						140						(7)
Effect of actual variances from expected experience						(32)						(4)						(24)						3						8						(1)
Adjusted beginning of period balance						2,704						624						2,670						600						2,573						569
Issuances						149						25						143						30						194						40
Interest accrual						125						32						121						31						112						29
Benefits paid						(166)						(35)						(169)						(33)						(187)						(31)
Ending balance at original discount rate						2,812						646						2,765						628						2,692						607
Effect of changes in discount rate assumptions						(144)						(23)						(14)						29						(108)						7
Balance, end of period						2,668						623						2,751						657						2,584						614
Net liability for future policy benefits:
Present value of expected future policy benefits less expected net premiums						1,030						405						1,051						434						941						406
Impact of flooring at cohort level						21						—						15						—						20						2
Net life policy reserves						1,051						405						1,066						434						961						408
Less reinsurance recoverable at original discount rate						(94)						(25)						(97)						(23)						(99)						(25)
Less effect of discount rate assumption changes on reinsurance recoverable						(8)						(3)						(10)						(5)						(9)						(5)
Net life policy reserves, after reinsurance recoverable						$	949					$	377					$	959					$	406					$	853					$	378
Weighted-average duration of the net life policy reserves						11						15						11						16						11						16

The total impact of flooring at cohort level in the above table includes the effect of discount rate assumption changes of $3 million, $2 million and $9 million at December 31, 2024, 2023 and 2022, respectively.

The following table shows the amount of undiscounted and discounted expected future benefit payments and expected gross premiums for our term and whole life policies:

(Dollars in millions)						At December 31,
						2024												2023
						Undiscounted						Discounted						Undiscounted						Discounted
Term
Expected future benefit payments						$	4,883					$	2,668					$	4,791					$	2,751
Expected future gross premiums						4,556						2,625						4,374						2,652
Whole life
Expected future benefit payments						$	1,718					$	623					$	1,648					$	657
Expected future gross premiums						694						412						659						409

The following table shows the amount of revenue and interest recognized in the consolidated statements of income related to our term and whole life policies:

(Dollars in millions)						Years ended December 31,
						2024						2023						2022
Gross premiums
Term						$	297					$	289					$	280
Whole life						54						52						47
Total						$	351					$	341					$	327
Interest accretion
Term						$	51					$	49					$	47
Whole life						22						22						21
Total						$	73					$	71					$	68

Adverse development that resulted in an immediate charge to income due to net premiums exceeding gross premiums was immaterial for the years ended December 31, 2024, 2023 and 2022, respectively.

The following table shows the weighted-average interest rate for our term and whole life products:

						At December 31,
						2024						2023
Term
Interest accretion rate						5.22		%				5.28		%
Current discount rate						5.17						4.81
Whole life
Interest accretion rate						5.88		%				5.90		%
Current discount rate						5.75						5.10

The discount rate assumption was developed by calculating forward rates from market yield curves of upper-medium grade fixed-income instruments.

Policyholder Account Balance

The following table shows the balances and changes in policyholders' account balances included in investment contract reserves:

(Dollars in millions)						Years ended December 31,
						2024												2023												2022
						Deferred annuity						Universal life						Deferred annuity						Universal life						Deferred annuity						Universal life
Balance, beginning of period						$	656					$	457					$	734					$	457					$	763					$	454
Premiums received						35						37						44						39						29						39
Policy charges						—						(40)						—						(39)						—						(39)
Surrenders and withdrawals						(105)						(12)						(130)						(13)						(62)						(11)
Benefit payments						(13)						(5)						(14)						(6)						(18)						(5)
Interest credited						22						19						22						19						22						19
Balance, end of period						$	595					$	456					$	656					$	457					$	734					$	457
Weighted average crediting rate						3.68		%				4.39		%				3.51		%				4.30		%				3.36		%				4.27		%
Net amount at risk						$	—					$	3,833					$	—					$	3,949					$	—					$	4,082
Cash surrender value						589						427						651						426						729						424

Policyholder Account Balance, Guaranteed Minimum Crediting Rate

The following table shows the balance of account values by range of guaranteed minimum crediting rates, in basis points, and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums for our deferred annuity and universal life contracts:

(Dollars in millions)						At guaranteed minimum						1 to 50 basis points above						51-150 basis points above						Greater than 150 basis points						Total
At December 31, 2024
Deferred annuity
1.00-3.00%						$	4					$	297					$	13					$	234					$	548
3.01-4.00%						47						—						—						—						47
Total						$	51					$	297					$	13					$	234					$	595
Universal life
1.00-3.00%						$	—					$	55					$	64					$	5					$	124
3.01-4.00%						50						—						5						—						55
Greater than 4.00%						277						—						—						—						277
Total						$	327					$	55					$	69					$	5					$	456
At December 31, 2023
Deferred annuity
1.00-3.00%						$	5					$	361					$	16					$	226					$	608
3.01-4.00%						48						—						—						—						48
Total						$	53					$	361					$	16					$	226					$	656
Universal life
1.00-3.00%						$	55					$	4					$	57					$	4					$	120
3.01-4.00%						49						5						—						—						54
Greater than 4.00%						283						—						—						—						283
Total						$	387					$	9					$	57					$	4					$	457

Additional Liability, Long-Duration Insurance

The following table shows the balances and changes in the other additional liability related to the no-lapse guarantees contained within our universal life contracts:

(Dollars in millions)						Years ended December 31,
						2024						2023						2022
Balance, beginning of period						$	128					$	121					$	133
Balance, beginning of period before shadow reserve adjustments						129						123						131
Effect of changes in cash flow assumptions						(2)						(6)						(1)
Effect of actual variances from expected experience						3						—						6
Adjusted beginning of period balance						130						117						136
Interest accrual						4						4						4
Excess death benefits						(13)						(6)						(18)
Attributed assessments						12						12						12
Effect of changes in interest rate assumptions						(2)						2						(11)
Balance, end of period before shadow reserve adjustments						131						129						123
Shadow reserve adjustments						(1)						(1)						(2)
Balance, end of period						130						128						121
Less reinsurance recoverable, end of period						7						6						5
Net other additional liability, after reinsurance recoverable						$	137					$	134					$	126
Weighted-average duration of the other additional liability						29						32						34

Separate Account, Liability

The following table shows balances and changes in separate account balances during the period:

(Dollars in millions)						Years ended December 31,
						2024						2023						2022
Balance, beginning of period						$	925					$	892					$	959
Interest credited before policy charges						42						42						38
Change in unrealized gains and losses impacting separate account liabilities						—						—						(85)
Benefit payments						(6)						(10)						(15)
Other						(9)						1						(5)
Balance, end of period						$	952					$	925					$	892
Cash surrender value						$	948					$	917					$	890

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