XML 74 R35.htm IDEA: XBRL DOCUMENT v3.25.0.1
Contractholder Funds
 12 Months Ended
Dec. 31, 2024
Insurance [Abstract]  
Contractholder Funds Market Risk Benefits
The following table presents the balances of and changes in MRBs associated with indexed annuities and fixed rate annuities for the years ended December 31, 2024 and 2023:
December 31, 2024December 31, 2023
Indexed AnnuitiesFixed rate annuitiesIndexed AnnuitiesFixed rate annuities
(Dollars in millions)
Balance, beginning of period, net liability$314 $1 $164 $1 
Balance, beginning of period, before effect of changes in the instrument-specific credit risk$209 $1 $102 $1 
Issuances and benefit payments109 — (10)— 
Attributed fees collected and interest accrual147 — 131 — 
Actual policyholder behavior different from expected (5)— 27 — 
Changes in assumptions and other24 — 29 — 
Effects of market related movements(162)— (70)— 
Balance, end of period, before effect of changes in the instrument-specific credit risk$322 $1 $209 $1 
Effect of changes in the instrument-specific credit risk98 — 105 — 
Balance, end of period, net liability$420 $1 $314 $1 
Less: reinsured market risk benefits
61 — — — 
Balance, end of period, net of reinsurance$359 $1 $314 $1 
Weighted-average attained age of policyholders weighted by total AV (years)67.9872.5868.2872.59
Net amount at risk$1,327 $2 $1,059 $2 
The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRBs amounts in the Consolidated Balance Sheets:
December 31, 2024December 31, 2023
DirectReinsuredNetDirectReinsuredNet
(In millions)
MRB Asset
Indexed annuities$128 $61 $189 $88 $— $88 
Fixed rate annuities— — — — — — 
Total MRB Asset$128 $61 $189 $88 $— $88 
MRB Liability
Indexed annuities$548 $— $548 $402 $— $402 
Fixed rate annuities1 — 1 1 — 1 
Total MRB liability$549 $— $549 $403 $— $403 

The net MRB liability increased for the year ended December 31, 2024, primarily as a result of collection of attributed fees, interest accrual, MRB reserves for contracts issued within the period, and changes in actuarial assumptions. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections.
For the year ended December 31, 2024, notable changes made to the inputs to the fair value estimates of MRBs calculations included an increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs; and an increase in the rider benefit utilization assumption, leading to an unfavorable change in the value of the associated MRBs.
The net MRB liability increased for the year ended December 31, 2023, primarily as a result of attributed fees collected, increases as a result of actual policyholder behavior different than expected and changes in assumptions as discussed below. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections.
For the year ended December 31, 2023, notable changes made to the inputs to the fair value estimates of MRBs calculations included a significant increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs; and F&G’s credit spread decreased, lead to a corresponding unfavorable change in the MRBs associated with both indexed annuities and fixed rate annuities.
In 2024 and 2023, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuities (indexed annuities and fixed rate annuities) with MRBs. For the year ended December 31, 2024, we updated assumptions including surrender rates, rider benefit election utilization, mortality improvement, and option budgets. For the year ended December 31, 2023, we updated assumptions including surrender rates, partial withdrawal rates, mortality improvement, and option budgets. All updates to these assumptions brought us more in line with our Company and overall industry experience since the prior assumption updates. These updates, in total, led to increases in the net MRB liability for the years ended December 31, 2024 and 2023.
Contractholder Funds
The following tables summarize balances of and changes in contractholder funds’ account balances:
December 31, 2024
Indexed annuitiesFixed rate annuitiesUniversal LifeFABN (b)FHLB (b)
(Dollars in millions)
Balance, beginning of year$27,164 $13,443 $2,391 $2,613 $2,539 
     Issuances6,649 5,125 208 600 1,804 
     Premiums received120 1 495 — — 
     Policy charges (a)(195)— (315)— — 
     Surrenders and withdrawals(3,832)(1,479)(101)— — 
     Benefit payments(495)(315)(18)(820)(1,606)
     Interest credited821 667 157 71 117 
     Other3 — — (1)(2)
Balance, end of year30,235 17,442 2,817 2,463 2,852 
Embedded derivative adjustment (c)219 — 79 — — 
Gross liability, end of period30,454 17,442 2,896 2,463 2,852 
Less: Reinsurance recoverable861 11,009 877 — — 
Net liability, after reinsurance recoverable$29,593 $6,433 $2,019 $2,463 $2,852 
Weighted-average crediting rate2.90 %4.42 %6.20 %N/AN/A
Net amount at risk (d)N/AN/A$74,279 N/AN/A
Cash surrender value (e)$27,865 $16,266 $2,177 N/AN/A
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance.
(b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials.
(c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives.
(d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
(e) These amounts are gross of reinsurance
December 31, 2023
Indexed AnnuitiesFixed rate annuitiesUniversal LifeFABN (b)FHLB (b)
(Dollars in millions)
Balance, beginning of year$24,766 $9,358 $2,112 $2,613 $1,982 
     Issuances4,722 5,061 199 — 1,256 
     Premiums received103 1 382 — — 
     Policy charges (a)(182)— (261)— — 
     Surrenders and withdrawals(2,005)(1,142)(90)— — 
     Benefit payments(526)(240)(27)(53)(763)
     Interest credited270 405 76 54 64 
     Other16 — — (1)— 
Balance, end of year27,164 13,443 2,391 2,613 2,539 
Embedded derivative adjustment (c)243 — 84 — — 
Gross liability, end of period27,407 13,443 2,475 2,613 2,539 
Less: Reinsurance recoverable17 7,520 894 — — 
Net liability, after reinsurance recoverable$27,390 $5,923 $1,581 $2,613 $2,539 
Weighted-average crediting rate1.40 %4.85 %3.44 %N/AN/A
Net amount at risk (d)N/AN/A$60,389 N/AN/A
Cash surrender value (e)$25,099 $12,505 $1,872 N/AN/A
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance.
(b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials.
(c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives.
(d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
(e) These amounts are gross of reinsurance
The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the Consolidated Balance Sheets:
December 31,
20242023
(In millions)
Indexed annuities
$30,454 $27,407 
Fixed rate annuities17,442 13,443 
Immediate annuities286 311 
Universal life2,896 2,475 
Traditional life5 5 
Funding Agreement-FABN2,463 2,613 
FHLB2,852 2,539 
PRT6 5 
Total$56,404 $48,798 
Annually, typically in the third quarter, we review assumptions associated with reserves for policy benefits and product guarantees. During the third quarter of 2024 and for the year ended December 31, 2024, based on policyholder behavior, experience and interest rate movements, we reflected updates to surrender assumptions for recent and expected near term policyholder behavior, as well as updated certain indexed annuities assumptions used to calculate the fair value of the embedded derivative component within contractholder funds. These changes resulted in a decrease in total benefits and other changes in policy reserves of approximately $89 million for the year ended December 31, 2024.
During the third quarter of 2023 and for the year ended December 31, 2023, based on increases in interest rates and pricing changes, we updated certain indexed annuities assumptions used to calculate the fair value of the embedded derivative component within contractholder funds and also aligned reserves to actual policyholder behavior. These changes resulted in an increase in total benefits and other changes in policy reserves of approximately $73 million for the year ended December 31, 2023.
The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums:
December 31, 2024
Range of guaranteed minimum crediting rateAt Guaranteed Minimum
 1 Basis Point-50 Basis Points Above
51 Basis Points-150 Basis Points Above
 Greater Than 150 Basis Points Above
 Total
Indexed Annuities(In millions)
0.00%-1.50%$23,540 $1,236 $492 $1,846 $27,114 
1.51%-2.50%875 1 684 1,242 2,802 
Greater than 2.50%303 2 — 14 319 
Total$24,718 $1,239 $1,176 $3,102 $30,235 
Fixed Rate Annuities
0.00%-1.50%$57 $20 $773 $14,407 $15,257 
1.51%-2.50%4 7 20 462 493 
Greater than 2.50%804 2 5 881 1,692 
Total$865 $29 $798 $15,750 $17,442 
Universal Life
0.00%-1.50%$2,421 $7 $— $24 $2,452 
1.51%-2.50%— — — — — 
Greater than 2.50%364 — 1 — 365 
Total$2,785 $7 $1 $24 $2,817 
December 31, 2023
Range of guaranteed minimum crediting rateAt Guaranteed Minimum
 1 Basis Point-50 Basis Points Above
51 Basis Points-150 Basis Points Above
 Greater Than 150 Basis Points Above
 Total
Indexed Annuities(In millions)
0.00%-1.50%$22,392 $1,444 $526 $1,953 $26,315 
1.51%-2.50%196 1 24 250 471 
Greater than 2.50%377 1 — — 378 
Total$22,965 $1,446 $550 $2,203 $27,164 
Fixed Rate Annuities
0.00%-1.50%$23 $25 $1,532 $10,271 $11,851 
1.51%-2.50%5 8 23 453 489 
Greater than 2.50%893 2 4 204 1,103 
Total$921 $35 $1,559 $10,928 $13,443 
Universal Life
0.00%-1.50%$1,987 $5 $— $21 $2,013 
1.51%-2.50%— — — — — 
Greater than 2.50%361 16 1 — 378 
Total$2,348 $21 $1 $21 $2,391