XML 40 R29.htm IDEA: XBRL DOCUMENT v3.24.3
LIABILITIES FOR INSURANCE PRODUCTS (Tables)
 9 Months Ended
Sep. 30, 2024
Insurance [Abstract]  
Schedule of Balances and Changes in the Liability for Future Policy Benefits
The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the nine months ended September 30, 2024 (dollars in millions):
Nine months ended
September 30, 2024
Supplemental healthMedicare supplementLong-term careTraditional lifeOther annuities
Present value of expected net premiums ("PVENP"), beginning of period$2,718.2 $3,009.1 $1,055.6 $2,279.6 $— 
Effect of changes in discount rate assumptions, beginning of period86.8 99.2 (7.6)67.6 — 
Beginning PVENP at original discount rate2,805.0 3,108.3 1,048.0 2,347.2 — 
Effect of changes in cash flow assumptions(28.4)85.2 9.6 (20.1)— 
Effect of actual variances from expected experience11.7 10.6 (8.9)(55.3)— 
Adjusted beginning of period PVENP2,788.3 3,204.1 1,048.7 2,271.8 — 
Issuances202.1 243.5 145.0 292.6 4.4 
Interest accrual92.7 98.5 39.6 73.4 — 
Net premiums collected(260.3)(337.3)(119.9)(303.3)(4.4)
Ending PVENP at original discount rate2,822.8 3,208.8 1,113.4 2,334.5 — 
Effect of changes in discount rate assumptions, end of period(57.3)(64.8)17.1 (35.6)— 
PVENP, end of period$2,765.5 $3,144.0 $1,130.5 $2,298.9 $— 

Present value of expected future policy benefits ("PVEFPB"), beginning of period$6,023.3 $3,236.6 $4,364.6 $4,694.7 $308.9 
Effect of changes in discount rate assumptions, beginning of period229.8 108.3 (132.8)170.9 3.0 
Beginning PVEFPB at original discount rate6,253.1 3,344.9 4,231.8 4,865.6 311.9 
Effect of changes in cash flow assumptions(39.2)95.2 8.2 (20.7)— 
Effect of actual variances from expected experience16.4 11.3 (23.2)(65.7)(16.5)
Adjusted beginning of period PVEFPB6,230.3 3,451.4 4,216.8 4,779.2 295.4 
Issuances202.5 239.9 145.2 298.0 4.5 
Interest accrual218.4 106.3 171.0 159.4 10.3 
Benefit payments(329.1)(360.2)(222.0)(336.7)(23.9)
Ending PVEFPB at original discount rate6,322.1 3,437.4 4,311.0 4,899.9 286.3 
Effect of changes in discount rate assumptions, end of period(172.8)(71.5)159.0 (113.7)(1.3)
PVEFPB, end of period$6,149.3 $3,365.9 $4,470.0 $4,786.2 $285.0 

Net liability for future policy benefits$3,383.8 $221.9 $3,339.5 $2,487.3 $285.0 
Flooring impact— .5 — — — 
Adjusted net liability for future policy benefits3,383.8 222.4 3,339.5 2,487.3 285.0 
Related reinsurance recoverable(1.5)— (384.6)(178.7)— 
Net liability for future policy benefits, net of reinsurance recoverable$3,382.3 $222.4 $2,954.9 $2,308.6 $285.0 
The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the nine months ended September 30, 2023 (dollars in millions):

Nine months ended
September 30, 2023
Supplemental healthMedicare supplementLong-term careTraditional lifeOther annuities
PVENP, beginning of period$2,781.3 $2,800.6 $1,034.1 $2,175.0 $— 
Effect of changes in discount rate assumptions, beginning of period188.4 196.4 23.2 137.1 — 
Beginning PVENP at original discount rate2,969.7 2,997.0 1,057.3 2,312.1 — 
Effect of changes in cash flow assumptions— — — — — 
Effect of actual variances from expected experience(40.9)(4.2)20.7 (47.0)— 
Adjusted beginning of period PVENP2,928.8 2,992.8 1,078.0 2,265.1 — 
Issuances205.1 238.9 56.3 300.7 4.7 
Interest accrual96.7 91.3 37.1 70.0 — 
Net premiums collected(267.0)(324.5)(120.6)(301.5)(4.7)
Ending PVENP at original discount rate2,963.6 2,998.5 1,050.8 2,334.3 — 
Effect of changes in discount rate assumptions, end of period(295.1)(274.1)(53.4)(188.6)— 
PVENP, end of period$2,668.5 $2,724.4 $997.4 $2,145.7 $— 

PVEFPB, beginning of period$5,886.8 $3,033.1 $4,158.1 $4,417.9 $310.9 
Effect of changes in discount rate assumptions, beginning of period483.3 212.0 28.5 336.6 15.4 
Beginning PVEFPB at original discount rate6,370.1 3,245.1 4,186.6 4,754.5 326.3 
Effect of changes in cash flow assumptions— — — — — 
Effect of actual variances from expected experience(46.9)7.4 30.3 (59.1)1.8 
Adjusted beginning of period PVEFPB6,323.2 3,252.5 4,216.9 4,695.4 328.1 
Issuances205.3 238.9 56.5 307.8 4.7 
Interest accrual222.6 99.3 167.3 154.3 11.1 
Benefit payments(314.2)(362.1)(214.0)(325.8)(25.8)
Ending PVEFPB at original discount rate6,436.9 3,228.6 4,226.7 4,831.7 318.1 
Effect of changes in discount rate assumptions, end of period(801.6)(295.5)(252.1)(510.9)(30.9)
PVEFPB, end of period$5,635.3 $2,933.1 $3,974.6 $4,320.8 $287.2 

Net liability for future policy benefits$2,966.8 $208.7 $2,977.2 $2,175.1 $287.2 
Flooring impact— .2 — — — 
Adjusted net liability for future policy benefits2,966.8 208.9 2,977.2 2,175.1 287.2 
Related reinsurance recoverable(1.3)— (330.4)(182.2)— 
Net liability for future policy benefits, net of reinsurance recoverable$2,965.5 $208.9 $2,646.8 $1,992.9 $287.2 
The following table reconciles the net liability for future policy benefits to the amount presented in the consolidated balance sheet (dollars in millions):

September 30, 2024September 30, 2023
Balances included in the future policy benefits rollforwards:
Supplemental health$3,383.8 $2,966.8 
Medicare supplement222.4 208.9 
Long-term care3,339.5 2,977.2 
Traditional life2,487.3 2,175.1 
Other annuities285.0 287.2 
Reserves excluded from rollforward (a)2,445.4 2,574.0 
Deferred profit liability67.4 60.8 
Amount of reserves above (below) policyholder account balances (b)(78.6)(454.7)
Future loss reserves (c)27.4 34.6 
Future policy benefits$12,179.6 $10,829.9 

_______________
(a)     Primarily comprised of blocks of business that are 100% ceded.
(b)     Such amount represents the difference between: (i) the total insurance liabilities for our fixed indexed annuities (including the host contract and the related embedded derivative); and (ii) the policyholder account balances for these products. The accounting requirement to bifurcate the embedded derivative and value it at the current estimated fair value results in this amount.
(c)        In certain instances for interest-sensitive products, the total insurance liabilities for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (the "future loss reserve") be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years.
The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the consolidated statement of operations (dollars in millions):

Gross premiums (a)Interest accretion (b)
Nine months endedNine months ended
September 30,September 30,
2024202320242023
Other annuities$4.9 $5.7 $10.3 $11.1 
Supplemental health542.3 530.3 125.7 125.9 
Medicare supplement461.6 453.4 7.8 8.0 
Long-term care255.0 243.1 131.4 130.2 
Traditional life544.0 534.6 86.0 84.3 
Total$1,807.8 $1,767.1 $361.2 $359.5 

_____________________
(a) Such amounts are included in insurance policy income in the consolidated statement of operations.
(b) Such amounts are included in insurance policy benefits in the consolidated statement of operations.


The following table provides the amount of undiscounted and discounted expected future gross premiums and expected future benefits and expenses for traditional and limited-payment contracts (dollars in millions):

September 30, 2024September 30, 2023
UndiscountedDiscounted (a)UndiscountedDiscounted (a)
Other annuity
Expected future gross premiums$— $— $— $— 
Expected future benefits and expenses337.6 285.0 385.9 287.2 
Supplemental health
Expected future gross premiums8,980.6 5,726.1 9,031.2 5,287.4 
Expected future benefits and expenses10,901.9 6,149.3 10,163.1 5,635.3 
Medicare supplement
Expected future gross premiums5,968.3 4,244.2 5,589.1 3,756.3 
Expected future benefits and expenses4,758.4 3,365.9 4,387.4 2,933.1 
Long-term care
Expected future gross premiums3,462.8 2,486.9 2,967.0 2,054.0 
Expected future benefits and expenses7,881.2 4,470.0 7,483.6 3,974.6 
Traditional life
Expected future gross premiums5,654.8 4,162.6 5,542.6 3,840.1 
Expected future benefits and expenses7,631.0 4,786.2 7,478.6 4,320.8 

_____________________
(a) Calculated at the discount rates at period end.
The following table provides the weighted average durations (under locked-in rates) of the liability for future policy benefits in years:

September 30,
2024		September 30,
2023
Other annuity9.69.7
Supplemental health11.111.7
Medicare supplement6.26.0
Long-term care10.710.3
Traditional life10.310.4

The following table provides the weighted average interest rates for the liability for future policy benefits:

September 30,
2024		September 30,
2023
Other annuities
Interest accretion rate4.81 %4.79 %
Current discount rate4.99 %6.10 %
Supplemental health
Interest accretion rate4.98 %5.02 %
Current discount rate4.97 %6.09 %
Medicare supplement
Interest accretion rate4.30 %4.28 %
Current discount rate4.74 %5.88 %
Long-term care
Interest accretion rate5.67 %5.66 %
Current discount rate5.03 %6.13 %
Traditional life
Interest accretion rate4.77 %4.77 %
Current discount rate5.00 %6.11 %
Schedule of Changes in Market Risk Benefits
The following table presents the balance of and changes in MRBs associated with our fixed indexed annuities (dollars in millions):

Nine months ended
September 30,
20242023
Net liability (asset), beginning of period$(68.0)$(54.0)
Effect of changes in the instrument-specific credit risk, beginning of period4.8 12.2 
Balance, beginning of period, before effect of changes in the instrument-specific credit risk(63.2)(41.8)
Issuances.1 (.4)
Interest accrual15.2 15.8 
Attributed fees collected— — 
Benefit payments— — 
Effect of changes in interest rates(13.6)(36.2)
Effect of changes in equity markets(.4)4.1 
Effect of changes in equity index volatility2.4 (17.5)
Actual policyholder behavior different from expected behavior6.3 2.5 
Effect of changes in future expected policyholder behavior - other(36.3)— 
Effect of changes in future expected policyholder behavior - risk margin.1 — 
Effect of changes in assumptions(3.9)(4.9)
Net liability (asset), end of period, before effect of changes in the instrument-specific credit risk(93.3)(78.4)
Effect of changes in the instrument-specific credit risk, end of period(2.1)(7.8)
Net liability (asset), end of period(95.4)(86.2)
Reinsurance recoverable, end of period— — 
Net liability (asset), end of period, net of reinsurance$(95.4)$(86.2)
Balance reported as an asset$96.4 $89.3 
Balance reported as a liability1.0 3.1 
Net liability (asset)$(95.4)$(86.2)
Net amount at risk$27.6 $51.0 
Weighted average attained age of contract holders6969
Schedule of Fixed Indexed Annuity Insurance Liabilities
Total liabilities for insurance products related to our fixed indexed annuities are comprised of: (i) the liability related to the host contract; and (ii) the fair market value of the embedded derivatives as summarized below (dollars in millions):

September 30,
2024		December 31,
2023
Fixed indexed annuity insurance liabilities:
Host contract liability$8,939.7 $8,487.0 
Embedded derivatives at fair value1,551.9 1,376.7 
Total fixed indexed annuity insurance liabilities$10,491.6 $9,863.7 

For presentation in the consolidated balance sheet, the total fixed indexed annuity insurance liability balance is bifurcated between: (i) policyholder account balances (which is the total of all current balances accruing to the policyholder under the terms and conditions of the policies assuming the contracts will continue in force); and (ii) the difference between the total fixed indexed annuity insurance liabilities summarized above and the policyholder account balances, which is classified as future policy benefits. These classifications are summarized below (dollars in millions):

September 30,
2024		December 31,
2023
Policyholder account balances$10,594.8 $10,138.6 
Future policy benefits(103.2)(274.9)
Total fixed indexed annuity insurance liabilities$10,491.6 $9,863.7 
Schedule of Policyholder Account Balance
The following tables present the balances of and changes in the liability for policyholder account balances (dollars in millions):
Nine months ended
September 30, 2024
Fixed indexed annuitiesFixed interest annuitiesOther annuitiesInterest-sensitive life (b)Funding agreementsOther (a)
Balance, beginning of period excluding contracts 100% ceded$9,999.2 $1,636.4 $113.1 $1,255.2 $1,411.0 $381.0 
Issuances (funds collected from new business)1,132.6 155.9 — 30.7 1,149.4 — 
Premiums received (premiums collected from inforce business)1.3 2.5 24.4 158.3 — 206.9 
Policy charges(23.2)(1.0)— (146.7)— — 
Surrenders and withdrawals(706.5)(134.4)(24.5)(26.4)(24.2)(225.6)
Benefit payments(219.5)(81.0)(4.4)(17.4)— — 
Interest credited244.1 34.7 1.6 47.9 37.5 1.9 
Other40.0 (.4)(.4)(.4)— — 
Balance, end of period excluding contracts 100% ceded10,468.0 1,612.7 109.8 1,301.2 2,573.7 364.2 
Balance, end of period for contracts 100% ceded126.8 547.7 26.2 99.9 — 10.3 
Balance, end of period$10,594.8 $2,160.4 $136.0 $1,401.1 $2,573.7 $374.5 
Balance, end of period, reinsurance ceded(126.8)(547.7)(26.2)(118.0)— (23.7)
Balance, end of period, net of reinsurance$10,468.0 $1,612.7 $109.8 $1,283.1 $2,573.7 $350.8 
Weighted average crediting rate2.1 %2.8 %2.5 %4.9 %3.5 %0.8 %
Cash surrender value, net of reinsurance$9,772.1 $1,578.0 $109.8 $1,055.5 $— $350.8 

_______________
(a) Predominantly consists of retained asset accounts associated with our traditional life and supplemental health blocks.
(b) The amount of insurance policy benefit expense resulting from death claims that we would incur in excess of the policyholder account balance (net amount at risk) for interest-sensitive life contracts was $29.2 billion at the balance sheet date.
Nine months ended
September 30, 2023
Fixed indexed annuitiesFixed interest annuitiesOther annuitiesInterest-sensitive life (b)Funding agreementsOther (a)
Balance, beginning of period excluding contracts 100% ceded$9,490.4 $1,663.1 $127.1 $1,209.6 $1,410.8 $395.5 
Issuances (funds collected from new business)996.6 139.5 — 30.0 — — 
Premiums received (premiums collected from inforce business).3 2.1 21.5 152.4 — 201.0 
Policy charges(14.4)(.7)— (140.4)— — 
Surrenders and withdrawals(538.4)(124.7)(30.3)(24.3)(24.2)(216.6)
Benefit payments(185.0)(80.8)(4.6)(19.6)— (.1)
Interest credited52.7 34.2 1.8 30.5 21.6 2.0 
Other17.0 (.2)(.3)(.4)— — 
Balance, end of period excluding contracts 100% ceded9,819.2 1,632.5 115.2 1,237.8 1,408.2 381.8 
Balance, end of period for contracts 100% ceded141.4 602.2 26.2 107.0 — 10.3 
Balance, end of period$9,960.6 $2,234.7 $141.4 $1,344.8 $1,408.2 $392.1 
Balance, end of period, reinsurance ceded(141.4)(602.2)(26.2)(125.2)— (24.3)
Balance, end of period, net of reinsurance$9,819.2 $1,632.5 $115.2 $1,219.6 $1,408.2 $367.8 
Weighted average crediting rate1.7 %2.8 %2.4 %4.0 %2.0 %0.8 %
Cash surrender value, net of reinsurance$9,152.8 $1,609.4 $115.2 $997.8 $— $367.8 

_________________
(a) Predominantly consists of retained asset accounts associated with our traditional life and supplemental health blocks.
(b) The amount of insurance policy benefit expense resulting from death claims that we would incur in excess of the policyholder account balance (net amount at risk) for interest-sensitive life contracts was $27.9 billion at the balance sheet date.
The following table reconciles the liability for policyholder account balances to the amount presented in the consolidated balance sheet (dollars in millions):

September 30, 2024September 30, 2023
Amounts included in the liability for policyholder account balances rollforwards:
Fixed indexed annuities$10,594.8 $9,960.6 
Fixed interest annuities2,160.4 2,234.7 
Other annuities136.0 141.4 
Interest-sensitive life1,401.1 1,344.8 
Funding agreements2,573.7 1,408.2 
Other374.5 392.1 
Total$17,240.5 $15,481.8 
Schedule of Policyholder Account Balance, Guaranteed Minimum Crediting Rate
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 (dollars in millions):

September 30, 2024
Range of guaranteed minimum crediting rates (a)At guaranteed minimum
1-50 basis points above
51-150 basis points above
Greater than 150 basis points above
Total
Fixed interest annuities
0.00%-2.99%
$96.0 $203.5 $232.8 $81.0 $613.3 
3.00%-4.99%
1,286.9 49.4 108.4 20.9 1,465.6 
5.00% and greater
81.5 — — — 81.5 
Subtotal1,464.4 252.9 341.2 101.9 2,160.4 
Other annuities
0.00%-2.99%
33.9 23.5 — — 57.4 
3.00%-4.99%
45.4 — — — 45.4 
5.00% and greater
33.2 — — — 33.2 
Subtotal112.5 23.5 — — 136.0 
Interest-sensitive life
0.00%-2.99%
14.3 — .5 701.8 716.6 
3.00%-4.99%
438.1 49.0 175.0 1.0 663.1 
5.00% and greater
20.9 .5 — — 21.4 
Subtotal473.3 49.5 175.5 702.8 1,401.1 
Other
0.00%-2.99%
16.8 334.9 — — 351.7 
3.00%-4.99%
22.6 — — — 22.6 
5.00% and greater
.2 — — — .2 
Subtotal39.6 334.9 — — 374.5 
Total
0.00%-2.99%
161.0 561.9 233.3 782.8 1,739.0 
3.00%-4.99%
1,793.0 98.4 283.4 21.9 2,196.7 
5.00% and greater
135.8 .5 — — 136.3 
Total policyholder account balances, excluding fixed indexed annuities$2,089.8 $660.8 $516.7 $804.7 4,072.0 
Fixed indexed annuity account balances 10,594.8 
Funding agreements2,573.7 
Total policyholder account balances$17,240.5 
____________________
(a)     Excludes the account balances related to: (i) fixed indexed annuity contracts which do not have a minimum crediting rate since returns are based on an index; and (ii) funding agreements which have a fixed crediting rate.
September 30, 2023
Range of guaranteed minimum crediting rates (a)At guaranteed minimum
1-50 basis points above
51-150 basis points above
Greater than 150 basis points above
Total
Fixed interest annuities
0.00%-2.99%
$122.3 $257.4 $183.4 $79.1 $642.2 
3.00%-4.99%
1,475.8 27.1 — — 1,502.9 
5.00% and greater
89.6 — — — 89.6 
Subtotal1,687.7 284.5 183.4 79.1 2,234.7 
Other annuities
0.00%-2.99%
36.4 25.3 — — 61.7 
3.00%-4.99%
46.4 — — — 46.4 
5.00% and greater
33.3 — — — 33.3 
Subtotal116.1 25.3 — — 141.4 
Interest-sensitive life
0.00%-2.99%
22.0 37.2 298.5 305.1 662.8 
3.00%-4.99%
451.2 50.5 157.5 .5 659.7 
5.00% and greater
21.8 .5 — — 22.3 
Subtotal495.0 88.2 456.0 305.6 1,344.8 
Other
0.00%-2.99%
17.5 351.2 — — 368.7 
3.00%-4.99%
23.2 — — — 23.2 
5.00% and greater
.2 — — — .2 
Subtotal40.9 351.2 — — 392.1 
Total
0.00%-2.99%
198.2 671.1 481.9 384.2 1,735.4 
3.00%-4.99%
1,996.6 77.6 157.5 .5 2,232.2 
5.00% and greater
144.9 .5 — — 145.4 
Total policyholder account balances, excluding fixed indexed annuities$2,339.7 $749.2 $639.4 $384.7 4,113.0 
Fixed indexed annuity account balances9,960.6 
Funding agreements1,408.2 
Total policyholder account balances$15,481.8 
____________________
(a)     Excludes the account balances related to: (i) fixed indexed annuity contracts which do not have a minimum crediting rate since returns are based on an index; and (ii) funding agreements which have a fixed crediting rate.