Life And Annuity Benefits

12 Months Ended

Dec. 31, 2024

13. Life and Annuity Benefits

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.


	December 31,
(dollars in thousands)	2024		2023
Liability for future policyholder benefits	$	491,370	$	557,763
Deferred profit liability	51,482		52,287
Other	40,421		39,004
Total	$	583,273	$	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. There were no changes to the cash flow assumptions used to measure the Company's life and annuity benefit reserves in 2024, 2023 and 2022. The following table presents a rollforward of the present value of the liability for future policyholder benefits.


	Years Ended December 31,
(dollars in thousands)	2024		2023		2022
Liability for future policyholder benefits, beginning of year	$	557,763	$	554,366	$	821,632
Liability for future policyholder benefits at original discount rate, beginning of year	642,877		667,761		745,313
Effect of changes in cash flow assumptions	—		—		—
Effect of actual variances from expected experience	(4,745)		(5,890)		(3,859)
Adjusted liability for future policyholder benefits, beginning of year	638,132		661,871		741,454
Interest accretion	13,996		14,889		15,625
Benefit payments	(49,200)		(52,588)		(53,232)
Effect of foreign currency rate changes	(26,126)		18,705		(36,086)
Liability for future policyholder benefits at original discount rate, end of year	576,802		642,877		667,761
Cumulative effect of changes in discount rate assumptions	(85,432)		(85,114)		(113,395)
Liability for future policyholder benefits, end of year	$	491,370	$	557,763	$	554,366

Liability for future policyholder benefits, undiscounted, end of year	$	737,575	$	824,642	$	861,264

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


	December 31,
	2024		2023
Weighted-average interest rate:
Interest accretion rate	2.3	%	2.3	%
Current discount rate	4.0	%	3.8	%
Weighted-average liability duration	8.3 years		8.6 years