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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2023
Retirement Benefits [Abstract] |
Defined Benefit Plan | EMPLOYEE BENEFIT PLANS Certain subsidiaries of the Company are sponsors or administrators of both qualified and non-qualified defined benefit pension plans (“Pension Plans”). The largest of these plans is a non-contributory qualified defined benefit pension plan sponsored by RGA Reinsurance Company (“RGA Reinsurance”) that covers U.S. employees. The benefits under the Pension Plans are generally based on years of service and compensation levels. The qualified defined benefit pension plan and some of the non-qualified defined benefit pension plans are closed to new employees. The Company also provides select health care and life insurance benefits for certain retired employees. The health care benefits are provided through a self-insured welfare benefit plan. Employees become eligible for these benefits if they meet minimum age and service requirements. The retiree’s cost for health care benefits varies depending upon the credited years of service. New employees hired in the U.S. are not eligible for retiree health care benefits. Virtually all retirees, or their beneficiaries, contribute a portion of the total cost of postretirement health benefits. Overfunded and underfunded plans are recognized in other assets and other liabilities, respectively. A December 31 measurement date is used for all of the defined benefit and postretirement plans. The status of these plans as of December 31, 2023 and 2022 is summarized below (dollars in millions):
|  | December 31,
|  | Pension Benefits |  | Other Benefits
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Change in benefit obligation: |  |  |  |  |  |  |  |
Benefit obligation at beginning of year |  | $ | 214 |  |  | $ | 256 |  |  | $ | 60 |  |  | $ | 75 |
Service cost |  | 14 |  |  | 17 |  |  | 2 |  |  | 3 |
Interest cost |  | 10 |  |  | 6 |  |  | 3 |  |  | 2 |
Participant contributions |  | — |  |  | — |  |  | — |  |  | — |
Amendments |  | — |  |  | — |  |  | — |  |  | 2 |
Actuarial (gains) losses |  | 10 |  |  | (50) |  |  | — |  |  | (20) |
Benefits paid |  | (13) |  |  | (12) |  |  | (2) |  |  | (2) |
Foreign exchange translations and other adjustments |  | 1 |  |  | (3) |  |  | — |  |  | — |
Benefit obligation at end of year |  | $ | 236 |  |  | $ | 214 |  |  | $ | 63 |  |  | $ | 60 |
|  | December 31,
|  | Pension Benefits |  | Other Benefits
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Change in plan assets: |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 158 |  |  | $ | 179 |  |  | $ | — |  |  | $ | — |
Actual return on plan assets |  | 17 |  |  | (30) |  |  | — |  |  | — |
Employer contributions |  | 18 |  |  | 21 |  |  | 2 |  |  | 2 |
Participant contributions |  | — |  |  | — |  |  | — |  |  | — |
Benefits paid |  | (13) |  |  | (12) |  |  | (2) |  |  | (2) |
Fair value of plan assets at end of year |  | $ | 180 |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |
Funded status at end of year |  | $ | (56) |  |  | $ | (56) |  |  | $ | (63) |  |  | $ | (60) |
|  | December 31,
|  | Qualified Plans |  | Non-Qualified Plans (1) |  | Total
|  | 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Aggregate fair value of plan assets |  | $ | 180 |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |  |  | $ | 180 |  |  | $ | 158 |
Aggregate projected benefit obligations |  | 156 |  |  | 142 |  |  | 80 |  |  | 72 |  |  | 236 |  |  | 214 |
Over (under) funded |  | $ | 24 |  |  | $ | 16 |  |  | $ | (80) |  |  | $ | (72) |  |  | $ | (56) |  |  | $ | (56) |
(1)For non-qualified plans, there are no required funding levels.
| December 31,
| Pension Benefits |  | Other Benefits
| 2023 |  | 2022 |  | 2023 |  | 2022
Amounts recognized in accumulated other comprehensive income (loss): |  |  |  |  |  |  |
Net actuarial (gain) loss | $ | 41 |  |  | $ | 40 |  |  | $ | 1 |  |  | $ | (1) |
Net prior service cost (credit) | — |  |  | — |  |  | (5) |  |  | (6) |
Total | $ | 41 |  |  | $ | 40 |  |  | $ | (4) |  |  | $ | (7) |
The following table presents information for pension plans with a projected benefit obligation in excess of plan assets as of December 31, 2023 and 2022 (dollars in millions):
|  | 2023 |  | 2022
Projected benefit obligation |  | $ | 81 |  |  | $ | 73 |
Fair value of plan assets |  | — |  |  | — |
The following table presents information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31, 2023 and 2022 (dollars in millions):
|  | 2023 |  | 2022
Accumulated benefit obligation |  | $ | 74 |  |  | $ | 66 |
Fair value of plan assets |  | — |  |  | — |
The components of net periodic benefit cost, included in other operating expenses on the consolidated statements of income, and other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) were as follows (dollars in millions):
|  | Pension Benefits |  | Other Benefits
|  | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 14 |  |  | $ | 17 |  |  | $ | 18 |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 3 |
Interest cost |  | 10 |  |  | 6 |  |  | 4 |  |  | 3 |  |  | 2 |  |  | 2 |
Expected return on plan assets |  | (11) |  |  | (12) |  |  | (10) |  |  | — |  |  | — |  |  | — |
Amortization of net actuarial losses |  | 2 |  |  | 3 |  |  | 6 |  |  | — |  |  | 1 |  |  | 2 |
Amortization of prior service cost (credit) |  | — |  |  | — |  |  | — |  |  | (2) |  |  | (2) |  |  | (1) |
Settlements |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net periodic benefit cost |  | 15 |  |  | 14 |  |  | 18 |  |  | 3 |  |  | 4 |  |  | 6 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Net actuarial (gains) losses |  | 3 |  |  | (9) |  |  | (13) |  |  | 1 |  |  | (20) |  |  | (6) |
Amortization of net actuarial (losses) |  | (2) |  |  | (3) |  |  | (6) |  |  | — |  |  | (1) |  |  | (2) |
Amortization of prior service (cost) credit |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 2 |  |  | 1 |
Settlements |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Prior service cost (credit) |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | (3) |
Foreign exchange translations and other adjustments |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total recognized in other comprehensive income (loss) |  | 1 |  |  | (12) |  |  | (19) |  |  | 3 |  |  | (18) |  |  | (10) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) |  | $ | 16 |  |  | $ | 2 |  |  | $ | (1) |  |  | $ | 6 |  |  | $ | (14) |  |  | $ | (4) |
The Company has met the minimum funding requirements for its qualified pension plans and is not required to contribute to the qualified pension plans during 2024. The Company has not determined whether, and to what extent, contributions may be made to the qualified pension plans in 2024. During 2024, the Company expects to contribute $7 million and $3 million to its non-qualified pension plans and other benefit plans, respectively. The following benefit payments, which reflect expected future service as appropriate, are expected to be paid (dollars in millions):
|  | Pension Benefits |  | Other Benefits
2024 |  | $ | 15 |  |  | $ | 3 |
2025 |  | 17 |  |  | 3 |
2026 |  | 17 |  |  | 3 |
2027 |  | 19 |  |  | 4 |
2028 |  | 20 |  |  | 4 |
2029 – 2033 |  | 107 |  |  | 21 |
Assumptions The weighted average assumptions used to determine the benefit obligation and net periodic benefit cost were as follows:
|  | Pension Benefits |  | Other Benefits
|  | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Benefit obligation |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 4.78 | % |  | 5.00 | % |  | 2.64 | % |  | 4.79 | % |  | 4.99 | % |  | 2.76 | %
Rate of compensation increase |  | 4.71 | % |  | 4.96 | % |  | 4.74 | % |  | n/a |  | n/a |  | n/a
Net periodic benefit cost |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 5.01 | % |  | 2.65 | % |  | 2.21 | % |  | 4.99 | % |  | 2.76 | % |  | 2.41 | %
Expected long-term rate of return on plan assets |  | 7.00 | % |  | 6.50 | % |  | 6.50 | % |  | n/a |  | n/a |  | n/a
Rate of compensation increase |  | 4.97 | % |  | 4.75 | % |  | 4.71 | % |  | n/a |  | n/a |  | n/a
The expected rate of return on plan assets is based on anticipated performance of the various asset sectors in which the plan invests, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector, adjusted for the long-term expectations on the performance of the markets. While the precise expected return derived using this approach may fluctuate from year to year, the policy is to hold this long-term assumption constant as long as it remains within reasonable tolerance from the derived rate. The assumed health care cost trend rates used in measuring the accumulated non-pension postretirement benefit obligation were as follows:
|  | As of December 31,
|  | 2023 |  | 2022
Health care cost trend rates assumed for next year |  | 6.50 | % |  | 7.00 | %
Ultimate cost trend rate |  | 4.50 | % |  | 4.50 | %
Year ultimate trend is reached |  | 2028 |  | 2028
Plan Assets The Company’s overall investment strategy is to allocate 100% of investments for long-term growth. Target allocations of U.S. qualified pension plan assets are determined with the objective of maximizing returns and minimizing volatility of net assets through adequate asset diversification and partial liability immunization. Adjustments are made to target allocations based on the Company’s assessment of the effect of economic factors and market conditions. The target allocations for plan assets were 75.5% equity and alternative securities and 24.5% debt securities for 2023, and 60% equity securities and 40% debt securities for 2022. The Company’s plan assets are invested in mutual funds and exchange traded funds. The mutual funds and exchange traded funds include holdings of S&P 500 securities, large-cap securities, mid-cap securities, small-cap securities, international securities, corporate debt securities, U.S. and other government securities, mortgage-related securities and cash. Equity and debt securities are exposed to various risks, such as interest rate risk, credit risk and overall market volatility. Due to the level of risk associated with certain investment securities, changes in the values of investment securities will occur and any change would affect the amounts reported in the financial statements. The fair values of the Company’s qualified pension plan assets as of December 31, 2023 and 2022 are summarized below (dollars in millions):
|  | December 31, 2023
|  |  |  | Fair Value Measurement Using:
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Mutual Funds (1) |  | $ | 154 |  |  | $ | 154 |  |  | $ | — |  |  | $ | — |
Exchange Traded Funds (2) |  | 10 |  |  | 10 |  |  | — |  |  | — |
Cash |  | 16 |  |  | 16 |  |  | — |  |  | — |
Total |  | $ | 180 |  |  | $ | 180 |  |  | $ | — |  |  | $ | — |
(1)Mutual funds were invested 23% in U.S. equity funds, 36% in U.S. fixed income funds, 25% in non-U.S. equity funds and 16% in other. (2)Exchange traded funds were invested 100% in U.S. equity funds.
|  | December 31, 2022
|  |  |  | Fair Value Measurement Using:
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Mutual Funds (3) |  | $ | 158 |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |
Cash |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 158 |  |  | $ | 158 |  |  | $ | — |  |  | $ | — |
(3)Mutual funds were invested 25% in U.S. equity funds, 40% in U.S. fixed income funds, 16% in non-U.S. equity funds and 19% in other. As of December 31, 2023 and 2022, the Company classified all of its qualified pension plan assets in the Level 1 category as quoted prices in active markets are available for these assets. See Note 13 – “Fair Value of Asset and Liabilities” for additional information on the fair value hierarchy. Savings and Investment Plans Certain subsidiaries of RGA also sponsor savings and investment plans under which a portion of employee contributions are matched. Subsidiary contributions to these plans were $27 million, $23 million and $21 million in 2023, 2022 and 2021, respectively.

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