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Future Policy Benefits
 12 Months Ended
Dec. 31, 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
December 31, 2024December 31, 2023
Expected net premiums(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 accrual17 19 
     Net premiums collected(107)(118)
Ending Balance at original discount rate780 874 
     Effect of changes in discount rate assumptions(149)(152)
Balance, end of year$631 $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 experience44 (24)
Balance adjusted for variances from expectation2,536 2,641 
     Interest accrual54 56 
     Benefits payments(222)(205)
Ending Balance at original discount rate2,368 2,492 
     Effect of changes in discount rate assumptions(435)(421)
Balance, end of year$1,933 $2,071 
Net liability for future policy benefits$1,302 $1,349 
Less: Reinsurance recoverable513 413 
Net liability for future policy benefits, after reinsurance recoverable$789 $936 
Weighted-average duration of liability for future policyholder benefits (years)6.287.36
The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts:
PRT
December 31, 2024December 31, 2023
(In millions)
Balance, beginning of year$4,189 $2,165 
Beginning balance at original discount rate4,351 2,475 
     Effect of changes in cash flow assumptions(3)(9)
     Effect of actual variances from expected experience(11)(7)
Balance adjusted for variances from expectation4,337 2,459 
     Issuances2,324 2,041 
     Interest accrual240 109 
     Benefits payments(484)(258)
Ending Balance at original discount rate6,417 4,351 
     Effect of changes in discount rate assumptions(363)(162)
Balance, end of year$6,054 $4,189 
Net liability for future policy benefits, after reinsurance recoverable$6,054 $4,189 
Weighted-average duration of liability for future policyholder benefits (years)7.788.23

Immediate annuities
December 31, 2024December 31, 2023
(In millions)
Balance, beginning of year$1,415 $1,429 
Beginning balance at original discount rate1,788 1,858 
     Effect of changes in cash flow assumptions— — 
     Effect of actual variances from expected experience(27)(15)
Balance adjusted for variances from expectation1,761 1,843 
     Issuances30 22 
     Interest accrual59 51 
     Benefits payments(118)(128)
Ending Balance at original discount rate1,732 1,788 
     Effect of changes in discount rate assumptions(435)(373)
Balance, end of year$1,297 $1,415 
Net liability for future policy benefits$1,297 $1,415 
Less: Reinsurance recoverable109 116 
Net liability for future policy benefits, after reinsurance recoverable$1,188 $1,299 
Weighted-average duration of liability for future policyholder benefits (years)12.6312.47
The following tables summarize balances and changes in the liability for DPL for limited-payment contracts:
December 31, 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— (8)— 1 
Effect of actual variances from expected experience8 — 16 5 
Balance adjusted for variances from expectation95 2 89 10 
     Issuances3 1 3 — 
     Interest accrual1 4 2 1 
     Amortization(9)(1)(7)(1)
Balance, end of year$90 $6 $87 $10 
The following table reconciles the net FPB to the FPB in the Consolidated Balance Sheets. The DPL for Immediate Annuities and PRT is presented together with the FPB in the Consolidated Balance Sheets and has been included as a reconciling item in the table below:
December 31,
20242023
(In millions)
Traditional life$1,302 $1,349 
Immediate annuities 1,297 1,415 
PRT6,054 4,189 
Immediate annuities DPL90 87 
PRT DPL6 10 
Total$8,749 $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
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Traditional life(In millions)
Expected future benefit payments$2,705 $2,935 $1,948 $2,075 
Expected future gross premiums914 1,082 681 789 
Immediate annuities
Expected future benefit payments$3,189 $3,291 $1,297 $1,413 
Expected future gross premiums— — — — 
PRT
Expected future benefit payments$10,038 $6,709 $6,054 $4,350 
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 Consolidated Statements of Earnings:
Gross Premiums (a)Interest Expense (b)
December 31,December 31,
202420232022202420232022
(In millions)
Traditional life$111 $123 $137 $37 $37 $39 
Immediate annuities18 24 23 59 51 60 
PRT2,217 1,964 1,362 240 109 50 
Total$2,346 $2,111 $1,522 $336 $197 $149 
(a) Included in Life insurance premiums and other fees on the Consolidated Statements of Earnings.
(b) Included in Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) on the Consolidated Statements of Earnings.
The following table presents the weighted-average interest rate:
December 31,
202420232022
Traditional life
Interest accretion rate2.34 %2.33 %2.32 %
Current discount rate5.44 %5.03 %5.37 %
Immediate annuities
Interest accretion rate3.17 %3.14 %3.07 %
Current discount rate5.45 %4.98 %5.21 %
PRT
Interest accretion rate4.72 %4.61 %3.20 %
Current discount rate5.54 %5.03 %5.40 %
The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB:
December 31, 2024
Traditional lifeImmediate annuities PRT
Mortality
Actual experience1.4 %2.7 %2.7 %
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 %— %— %
December 31, 2022
Traditional lifeImmediate annuities PRT
Mortality
Actual experience1.5 %3.0 %1.9 %
Expected experience1.3 %1.9 %2.5 %
Lapses
Actual experience— %— %— %
Expected experience0.3 %— %— %
The following table provides additional information for periods in which a cohort has a net premium ratio (“NPR”) greater than 100% (and therefore capped at 100%) (dollars in millions):
December 31, 2024
Cohort XDescription
NPR before capping108 %Term with return of premium Non-NY Cohort
Reserves before NPR capping$1,147 Term with return of premium Non-NY Cohort
Reserves after NPR capping1,174 Term with return of premium Non-NY Cohort
Loss Expense27 Term with return of premium Non-NY Cohort
F&G realized actual-to-expected experience variances and made changes to assumptions during the years ended December 31, 2024 and 2023 as follows:
Traditional life
The traditional life line of business primarily consists of policies that were sold prior to 2010. As this line of business continues to age, benefit payments made from these contracts will be the primary driver of the emergence of reserves, decreasing the reserve balance.
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 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. In 2023, F&G undertook a review of all significant assumptions and revised the lapse assumption, resulting in a slight decrease to the FPB. 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 increased discount rates that drove a decrease to the FPB. Market data that underlies current discount rates was updated in 2023 from that utilized in 2022, 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 increased discount rates that drove a decrease to the FPB. Market data that underlies current discount rates was updated in 2023 from that utilized in 2022, resulting in decreased discount rates that drove a material increase to the FPB.
PRT (life contingent)
The PRT line of business has issued a significant volume of contracts for both 2024 and 2023, which is the primary impact in increasing the reserve balance in each of those periods.
Significant assumption inputs to the calculation of the FPB for PRT (life contingent) include mortality and discount rates (both accretion and current). Additionally, for PRT contracts with deferred payment streams retirement age and elected payment form are significant assumptions. 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 increased discount rates that drove a decrease to the FPB. Market data that underlies current discount rates was updated in 2023 from that utilized in 2022, resulting in decreased discount rates that drove a material increase to the FPB.
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 did not pass premium deficiency testing for the traditional life block of business, related to the recoverability of VOBA. Due to that result, F&G began accruing a liability in the fourth quarter of 2024 that increases the amortization of traditional life VOBA. The liability balance was immaterial at December 31, 2024. During 2023, F&G was not required to establish any additional liabilities as a result of premium deficiency testing.