XML 39 R27.htm IDEA: XBRL DOCUMENT v3.24.3
Future Policy Benefits
 9 Months Ended
Sep. 30, 2024
Insurance [Abstract]  
Future Policy Benefits Future Policy Benefits
The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts:
Traditional Life
September 30, 2024December 31, 2023
Expected net premiums(Dollars in millions)
Balance, beginning of year$722 $797 
Beginning balance at original discount rate874 974 
     Effect of actual variances from expected experience(4)(1)
Balance adjusted for variances from expectation870 973 
     Interest accrual13 19 
     Net premiums collected(82)(118)
Ending Balance at original discount rate801 874 
     Effect of changes in discount rate assumptions(128)(152)
Balance, end of period$673 $722 
Expected FPB
Balance, beginning of year$2,071 $2,151 
Beginning balance at original discount rate2,492 2,665 
     Effect of actual variances from expected experience48 (24)
Balance adjusted for variances from expectation2,540 2,641 
     Interest accrual41 56 
     Benefits payments(165)(205)
Ending Balance at original discount rate2,416 2,492 
     Effect of changes in discount rate assumptions(358)(421)
Balance, end of period$2,058 $2,071 
Net liability for future policy benefits$1,385 $1,349 
Less: Reinsurance recoverable525 413 
Net liability for future policy benefits, after reinsurance recoverable$860 $936 
Weighted-average duration of liability for future policyholder benefits (years)6.877.36
The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts:
September 30, 2024
Immediate annuitiesPRT
(Dollars in millions)
Balance, beginning of year$1,415 $4,189 
Beginning balance at original discount rate1,788 4,351 
     Effect of changes in cash flow assumptions— 4 
     Effect of actual variances from expected experience(26)(20)
Balance adjusted for variances from expectation1,762 4,335 
     Issuances27 1,300 
     Interest accrual46 168 
     Benefits payments(88)(346)
Ending Balance at original discount rate1,747 5,457 
     Effect of changes in discount rate assumptions(354)(63)
Balance, end of period$1,393 $5,394 
Net liability for future policy benefits$1,393 $5,394 
Less: Reinsurance recoverable115 — 
Net liability for future policy benefits, after reinsurance recoverable$1,278 $5,394 
Weighted-average duration of liability for future policyholder benefits (years)12.898.03

December 31, 2023
Immediate annuitiesPRT
(Dollars in millions)
Balance, beginning of year$1,429 $2,165 
Beginning balance at original discount rate1,858 2,475 
     Effect of changes in cash flow assumptions— (9)
     Effect of actual variances from expected experience(15)(7)
Balance adjusted for variances from expectation$1,843 $2,459 
     Issuances22 2,041 
     Interest accrual51 109 
     Benefits payments(128)(258)
Ending Balance at original discount rate$1,788 $4,351 
     Effect of changes in discount rate assumptions(373)(162)
Balance, end of period$1,415 $4,189 
Net liability for future policy benefits$1,415 $4,189 
Less: Reinsurance recoverable116 — 
Net liability for future policy benefits, after reinsurance recoverable$1,299 $4,189 
Weighted-average duration of liability for future policyholder benefits (years)12.478.23
The following tables summarize balances and changes in the liability for DPL for limited-payment contracts:
September 30, 2024December 31, 2023
Immediate annuitiesPRTImmediate annuitiesPRT
(In millions)
Balance, beginning of year$87 $10 $69 $4 
Effect of modeling changes— — 4 — 
Effect of changes in cash flow assumptions— (7)— 1 
Effect of actual variances from expected experience6 — 16 5 
Balance adjusted for variances from expectation93 3 89 10 
     Issuances2 — 3 — 
     Interest accrual1 4 2 1 
     Amortization(6)(1)(7)(1)
Balance, end of period$90 $6 $87 $10 
The following table reconciles the net FPB to the FPB in the unaudited Condensed Consolidated Balance Sheets. The DPL for Immediate Annuities and PRT is presented together with the FPB in the unaudited Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below:
September 30, 2024December 31, 2023
(In millions)
Traditional Life$1,385 $1,349 
Immediate annuities 1,393 1,415 
PRT5,394 4,189 
Immediate annuities DPL90 87 
PRT DPL6 10 
Total$8,268 $7,050 
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts:
UndiscountedDiscounted
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Traditional Life(In millions)
Expected future benefit payments$2,843 $2,996 $2,073 $1,984 
Expected future gross premiums978 1,116 728 772 
Immediate annuities
Expected future benefit payments$3,212 $3,227 $1,392 $1,313 
Expected future gross premiums— — — — 
PRT
Expected future benefit payments$8,449 $5,445 $5,470 $3,605 
Expected future gross premiums— — — — 
The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Earnings:
Gross Premiums (a)Interest Expense (b)
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
(In millions)
Traditional Life$84 $94 $28 $28 
Immediate annuities16 18 46 42 
PRT1,240 1,207 168 79 
Total$1,340 $1,319 $242 $149 
(a) Included in Life insurance premiums and other fees on the unaudited Condensed Consolidated Statements of Earnings.
(b) Included in Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) on the unaudited Condensed Consolidated Statements of Earnings.
The following table presents the weighted-average interest rate:
September 30, 2024December 31, 2023
Traditional Life
Interest accretion rate2.34 %2.33 %
Current discount rate4.95 5.03 
Immediate annuities
Interest accretion rate3.17 %3.14 %
Current discount rate4.90 4.98 
PRT
Interest accretion rate4.70 %4.61 %
Current discount rate4.85 5.03 
The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB:
September 30, 2024
Traditional LifeImmediate annuities PRT
Mortality
Actual experience1.4 %2.7 %3.0 %
Expected experience1.5 1.9 2.5 
Lapses
Actual experience0.1 %— %— %
Expected experience0.5 — — 
December 31, 2023
Traditional LifeImmediate annuities PRT
Mortality
Actual experience1.7 %3.2 %3.2 %
Expected experience1.4 1.8 2.3 
Lapses
Actual experience— %— %— %
Expected experience0.3 — — 

The following table provides additional information for periods in which a cohort has an net premium ratio ("NPR") greater than 100% (and therefore capped at 100%) (dollars in millions):
September 30, 2024
Cohort XDescription
NPR before capping109 %Term with return of premium Non-NY Cohort
Reserves before NPR capping$1,219 Term with return of premium Non-NY Cohort
Reserves after NPR capping1,250 Term with return of premium Non-NY Cohort
Loss Expense31 Term with return of premium Non-NY Cohort
Premium deficiency testing
F&G conducts annual premium deficiency testing for its long-duration contracts except for the FPB for nonparticipating traditional and limited-payment contracts. F&G also conducts annual premium deficiency testing for the VOBA of all long-duration contracts. Premium deficiency testing is performed by reviewing assumptions used to calculate the insurance liabilities and determining whether the sum of the existing contract liabilities and the present value of future gross premiums is sufficient to cover the present value of future benefits to be paid to or on behalf of policyholders and settlement costs and recover unamortized present value of future profits. Anticipated investment income, based on F&G’s experience, is considered when performing premium deficiency testing for long-duration contracts. During 2024, F&G was not required to establish any additional liabilities as a result of premium deficiency testing.

F&G made changes to assumptions during the nine months ended September 30, 2024 and the year ended December 31, 2023. Significant assumption inputs used in the calculation of our FPB are described below. Refer to the tables above for further details on changes to our FPB.
Traditional life
Significant assumption inputs to the calculation of the FPB for traditional life include mortality, lapses (including lapses due to nonpayment of premium and surrenders for cash surrender value), and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised the lapse assumption, resulting in a slight decrease to the FPB. In 2024, F&G made an adjustment to the calculation to reflect additional actuarial precision, unrelated to the assumptions, driving an increase to the FPB liability. There have been no other significant changes.
Market data that underlies current discount rates was updated in 2024 from that utilized in 2023 resulting in decreased discount rates that drove a material increase to the FPB.
Immediate annuities (life contingent)
Significant assumption inputs to the calculation of the FPB for immediate annuities (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2024 and 2023, F&G undertook a review of the significant cash flow assumptions and did not make any changes to mortality. Market data that underlies current discount rates was updated in 2024 from that utilized in 2023, resulting in decreased discount rates that drove a material increase to the FPB.
PRT (life contingent)
Significant assumption inputs to the calculation of the FPB for PRT (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2024 and 2023, F&G undertook a review of the significant cash flow assumptions and did not make any changes to mortality. Market data that underlies current discount rates was updated in 2024 from 2023 resulting in decreased discount rates that drove a material increase to the FPB.