Life and Annuity Benefits

3 Months Ended

Mar. 31, 2024

Liability for Future Policy Benefit, before Reinsurance [Abstract]

The Company's run-off block of life and annuity reinsurance contracts consists primarily of Euro and U.S. Dollar denominated life-contingent payout annuities and traditional and universal life contracts. The following table presents the components of the Company's liabilities for life and annuity benefits.


(dollars in thousands)	March 31, 2024		December 31, 2023
Liability for future policyholder benefits	$	528,249	$	557,763
Deferred profit liability	50,483		52,287
Other	38,534		39,004
Total	$	617,266	$	649,054

The primary component of the Company's liabilities for life and annuity benefits is the liability for future policyholder benefits. Life and annuity benefit reserves are calculated for aggregated cohorts of contracts, which are determined based on the attributes of the underlying contracts, and are discounted using standard actuarial techniques and cash flow models. Since the development of the life and annuity reinsurance reserves is based upon cash flow projection models, the Company makes estimates and assumptions based on cedent experience and industry mortality tables. The cash flow assumptions used to determine the Company's life and annuity benefit reserves are reviewed, and updated as necessary, at least annually. The discount rate assumptions are updated at each reporting date. The following table presents a rollforward of the present value of the liability for future policyholder benefits.


	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Liability for future policyholder benefits, beginning of year	$	557,763	$	554,366
Liability for future policyholder benefits at original discount rate, beginning of year	642,877		667,761
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	—		—
Adjusted liability for future policyholder benefits, beginning of year	642,877		667,761
Interest accretion	3,605		3,815
Benefit payments	(13,290)		(13,283)
Effect of foreign currency rate changes	(11,706)		10,396
Liability for future policyholder benefits at original discount rate, end of period	621,486		668,689
Cumulative effect of changes in discount rate assumptions	(93,237)		(101,938)
Liability for future policyholder benefits, end of period (1)	$	528,249	$	566,751

(1) The undiscounted liability for future policyholder benefits was $796.8 million and $862.7 million as of March 31, 2024 and 2023, respectively.

The following table summarizes additional details for the Company's liability for future policyholder benefits.


	March 31, 2024		December 31, 2023
Weighted-average interest rate:
Interest accretion rate	2.3	%	2.3	%
Current discount rate	4.1	%	3.8	%
Weighted-average liability duration	8.4 years		8.6 years