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LIABILITIES FOR INSURANCE PRODUCTS
 12 Months Ended
Dec. 31, 2024
Insurance [Abstract]  
LIABILITIES FOR INSURANCE PRODUCTS LIABILITIES FOR INSURANCE PRODUCTS
The liability for future policy benefits is determined based on numerous assumptions. The most significant assumptions for our life and annuity business are mortality and lapse/withdrawal rates which are based on our experience and, in cases of limited experience, industry experience. Mortality and lapse/withdrawal rates also take into consideration future expectations in policyholder behavior that may vary from past experience. For our health business, mortality rates, lapse rates, morbidity assumptions and future rate increases are based on our experience and, in cases of limited experience, industry experience. Such assumptions also consider future expectations in policyholder behavior that may vary from past experience.

In 2024 and 2023, we reviewed our actual mortality, lapse and morbidity experience and updated our assumptions for future cash flows. The impact of updating these assumptions is reflected in the "Effect of changes in cash flow assumptions" line items in the tables below.
The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the year ended December 31, 2024 (dollars in millions):
2024
Supplemental healthMedicare supplementLong-term careTraditional lifeOther annuities
Present value of expected net premiums ("PVENP"), beginning of period$2,718.2 $3,009.2 $1,055.6 $2,279.6 $— 
Effect of changes in discount rate assumptions, beginning of period86.8 99.1 (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)89.8 9.6 (20.0)— 
Effect of actual variances from expected experience(3.6)71.2 (11.3)(76.4)— 
Adjusted beginning of period PVENP2,773.0 3,269.3 1,046.3 2,250.8 — 
Issuances275.2 406.9 190.6 371.8 5.1 
Interest accrual124.0 133.8 53.4 97.9 — 
Net premiums collected(348.3)(452.9)(161.8)(403.1)(5.1)
Ending PVENP at original discount rate2,823.9 3,357.1 1,128.5 2,317.4 — 
Effect of changes in discount rate assumptions, end of period(180.0)(195.2)(25.7)(113.5)— 
PVENP, end of period$2,643.9 $3,161.9 $1,102.8 $2,203.9 $— 
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)99.8 8.2 (20.7)— 
Effect of actual variances from expected experience(3.8)77.5 (32.4)(91.8)(17.9)
Adjusted beginning of period PVEFPB6,210.1 3,522.2 4,207.6 4,753.1 294.0 
Issuances275.9 403.3 190.9 380.8 4.9 
Interest accrual291.9 144.2 228.7 213.0 13.6 
Benefit payments(433.1)(482.6)(293.0)(443.0)(31.8)
Ending PVEFPB at original discount rate6,344.8 3,587.1 4,334.2 4,903.9 280.7 
Effect of changes in discount rate assumptions, end of period(516.6)(211.5)(94.1)(333.3)(16.2)
PVEFPB, end of period$5,828.2 $3,375.6 $4,240.1 $4,570.6 $264.5 
Net liability for future policy benefits$3,184.3 $213.7 $3,137.3 $2,366.7 $264.5 
Flooring impact— 0.6 — — — 
Adjusted net liability for future policy benefits3,184.3 214.3 3,137.3 2,366.7 264.5 
Related reinsurance recoverable(1.4)— (360.8)(168.1)— 
Net liability for future policy benefits, net of reinsurance recoverable$3,182.9 $214.3 $2,776.5 $2,198.6 $264.5 
The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the year ended December 31, 2023 (dollars in millions):
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(145.0)76.0 (32.1)33.0 — 
Effect of actual variances from expected experience(57.2)20.1 33.4 (71.0)— 
Adjusted beginning of period PVENP2,767.5 3,093.1 1,058.6 2,274.1 — 
Issuances261.3 328.8 98.7 378.2 6.9 
Interest accrual127.4 123.3 49.9 94.0 — 
Net premiums collected(351.2)(436.9)(159.2)(399.1)(6.9)
Ending PVENP at original discount rate2,805.0 3,108.3 1,048.0 2,347.2 — 
Effect of changes in discount rate assumptions, end of period(86.8)(99.1)7.6 (67.6)— 
PVENP, end of period$2,718.2 $3,009.2 $1,055.6 $2,279.6 $— 
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 rate$6,370.1 $3,245.1 $4,186.6 $4,754.5 $326.3 
Effect of changes in cash flow assumptions(187.0)86.5 (39.0)34.5 (3.5)
Effect of actual variances from expected experience(65.8)30.3 47.2 (86.9)2.3 
Adjusted beginning of period PVEFPB$6,117.3 $3,361.9 $4,194.8 $4,702.1 $325.1 
Issuances261.7 328.9 99.4 388.4 7.0 
Interest accrual295.0 133.9 223.9 206.7 14.8 
Benefit payments(420.9)(479.8)(286.3)(431.6)(35.0)
Ending PVEFPB at original discount rate$6,253.1 $3,344.9 $4,231.8 $4,865.6 $311.9 
Effect of changes in discount rate assumptions, end of period(229.8)(108.3)132.8 (170.9)(3.0)
PVEFPB, end of period$6,023.3 $3,236.6 $4,364.6 $4,694.7 $308.9 
Net liability for future policy benefits$3,305.1 $227.4 $3,309.0 $2,415.1 $308.9 
Flooring impact— .5 — — — 
Adjusted net liability for future policy benefits$3,305.1 $227.9 $3,309.0 $2,415.1 $308.9 
Related reinsurance recoverable(1.3)— (366.6)(194.2)— 
Net liability for future policy benefits, net of reinsurance recoverable$3,303.8 $227.9 $2,942.4 $2,220.9 $308.9 
The following table reconciles the net liability for future policy benefits to the amount presented in the consolidated balance sheet (dollars in millions):

20242023
Balances included in the future policy benefits rollforwards:
Supplemental health$3,184.3 $3,305.1 
Medicare supplement214.3 227.9 
Long-term care3,137.3 3,309.0 
Traditional life2,366.7 2,415.1 
Other annuities264.5 308.9 
Reserves excluded from rollforward (a)2,443.1 2,526.9 
Deferred profit liability67.9 64.8 
Future loss reserves (b)27.4 30.7 
Future policy benefits$11,705.5 $12,188.4 

_______________
(a)     Primarily comprised of blocks of business that are 100% ceded.
(b)     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.

Many of our fixed indexed annuity products include a GLWB that is considered a MRB. The calculation of MRBs includes market assumptions (interest rate, equity returns, volatility and dividend yields) and nonmarket assumptions (mortality rates, surrender and withdrawal rates, GLWB utilization and spreads). Market assumptions are updated quarterly to reflect current market conditions. During 2024, we reviewed our non-market assumptions used to calculate the MRBs and determined updates were warranted. The impact of updating these assumptions is reflected in the Effect of changes in future expected policyholder behavior line items in the table below.
The following table presents the balance of and changes in MRBs associated with our fixed indexed annuities (dollars in millions):

20242023
Net liability (asset), beginning of period$117.1 $144.0 
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 risk121.9 156.2 
Issuances4.3 7.1 
Interest accrual4.3 6.7 
Attributed fees collected— — 
Benefit payments— — 
Effect of changes in interest rates(30.2)(13.1)
Effect of changes in equity markets0.8 5.9 
Effect of changes in equity index volatility1.0 (23.0)
Actual policyholder behavior different from expected behavior(0.4)(1.4)
Effect of changes in future expected policyholder behavior - other(36.2)(13.5)
Effect of changes in future expected policyholder behavior - risk margin0.2 (1.5)
Effect of changes in assumptions(4.3)(1.5)
Net liability (asset), end of period, before effect of changes in the instrument-specific credit risk61.4 121.9 
Effect of changes in the instrument-specific credit risk, end of period(1.4)(4.8)
Net liability (asset), end of period60.0 117.1 
Reinsurance recoverable, end of period— — 
Net liability (asset), end of period, net of reinsurance$60.0 $117.1 
Balance reported as an asset$— $— 
Balance reported as a liability60.0 117.1 
Net liability (asset)$60.0 $117.1 
Net amount at risk$21.7 $44.3 
Weighted average attained age of contract holders6969
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)
202420232022202420232022
Other annuity$5.9 $8.1 $8.7 $13.6 $14.8 $15.2 
Supplemental health724.8 705.4 691.7 167.9 167.6 165.5 
Medicare supplement618.8 608.1 644.9 10.4 10.6 11.2 
Long-term care344.1 325.5 323.6 175.3 174.0 172.4 
Traditional life724.2 708.7 692.5 115.1 112.7 110.6 
Total$2,417.7 $2,355.8 $2,361.4 $482.3 $479.7 $474.9 
_____________________
(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 gross premiums and expected future benefits and expenses for traditional and limited-payment contracts (dollars in millions):

20242023
UndiscountedDiscounted (a)UndiscountedDiscounted (a)
Other annuity
Expected future gross premiums$— $— $— $— 
Expected future benefits and expenses328.4 264.5 376.7 308.9 
Supplemental health
Expected future gross premiums8,994.0 5,479.1 8,909.8 5,625.9 
Expected future benefits and expenses10,942.1 5,828.2 10,783.5 6,023.3 
Medicare supplement
Expected future gross premiums6,248.7 4,248.6 5,698.1 4,090.4 
Expected future benefits and expenses4,993.9 3,375.6 4,544.1 3,236.6 
Long-term care
Expected future gross premiums3,508.4 2,419.8 3,280.4 2,353.4 
Expected future benefits and expenses7,930.4 4,240.1 7,680.6 4,364.6 
Traditional life
Expected future gross premiums5,639.0 4,006.3 5,580.4 4,069.6 
Expected future benefits and expenses7,632.9 4,570.6 7,538.5 4,694.7 
_____________________
(a)     Calculated at the discount rates at period end.

Loss expense as a result of net premium ratio capping was not material in each of the three years ended December 31, 2024.
The following table provides the weighted average durations (under locked-in rates) of the liability for future policy benefits in years:

20242023
Other annuity9.69.6
Supplemental health11.211.4
Medicare supplement6.36.4
Long-term care10.710.6
Traditional life10.210.4

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

20242023
Other annuity
Interest accretion rate4.82 %4.81 %
Current discount rate5.63 %5.09 %
Supplemental health
Interest accretion rate4.98 %5.01 %
Current discount rate5.62 %5.07 %
Medicare supplement
Interest accretion rate4.30 %4.29 %
Current discount rate5.43 %4.92 %
Long-term care
Interest accretion rate5.66 %5.68 %
Current discount rate5.68 %5.12 %
Traditional life
Interest accretion rate4.78 %4.77 %
Current discount rate5.64 %5.09 %
The following tables present the balances of and changes in the liability for policyholder account balances (dollars in millions):
2024
Fixed indexed annuitiesFixed interest annuitiesOther annuities
Interest-sensitive life (a)
Funding agreements
Other (b)
Policyholder account values, 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)1,541.6 236.4 — 40.4 1,599.2 — 
Premiums received (premiums collected from inforce business)2.6 2.9 30.8 211.8 — 274.6 
Policy charges(29.7)(1.4)— (196.0)— — 
Surrenders and withdrawals(927.6)(171.5)(32.8)(35.0)(50.6)(299.1)
Benefit payments(274.4)(103.8)(5.8)(23.7)— — 
Interest credited399.8 48.0 2.2 69.5 61.6 2.6 
Other54.8 (0.4)(0.1)(0.4)— — 
Policyholder account values, ending of period excluding contracts 100% ceded
10,766.3 1,646.6 107.4 1,321.8 3,021.2 359.1 
Policyholder account values, end of period for contracts 100% ceded124.0 540.4 28.2 98.2 — 10.1 
Amount of reserves above (below) policyholder account values (c)
(424.5)— — 17.0 — — 
Policyholder account balance, end of period
$10,465.8 $2,187.0 $135.6 $1,437.0 $3,021.2 $369.2 
Balance, end of period, reinsurance ceded(116.7)(540.4)(28.2)(116.6)— (23.5)
Balance, end of period, net of reinsurance$10,349.1 $1,646.6 $107.4 $1,320.4 $3,021.2 $345.7 
Weighted average crediting rate (d)2.1 %2.9 %2.6 %5.3 %3.8 %0.8 %
Cash surrender value, net of reinsurance$10,056.2 $1,607.0 $107.4 $1,074.8 $— $345.7 
_________________

(a)     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 $29,490.2 million at the balance sheet date.
(b)     Predominantly consists of retained asset accounts associated with our traditional life and supplemental health blocks.
(c)    Such amount represents the difference between: (i) the total insurance liabilities for our fixed indexed products (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.
(d)    Excludes any impact from the amount of reserves above (below) policyholder account balances.
2023
Fixed indexed annuitiesFixed interest annuitiesOther annuities
Interest-sensitive life (a)
Funding agreements
Other (b)
Policyholder account values, 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)1,373.7 197.0 — 40.8 — — 
Premiums received (premiums collected from inforce business)0.1 2.7 28.1 203.4 — 273.4 
Policy charges(19.7)(1.0)— (188.3)— — 
Surrenders and withdrawals(738.3)(164.6)(37.6)(31.1)(28.6)(290.0)
Benefit payments(243.9)(106.9)(5.9)(24.7)— (0.1)
Interest credited112.6 46.1 2.3 46.0 28.8 2.6 
Other24.3 — (0.9)(0.5)— (0.4)
Policyholder account values, ending of period excluding contracts 100% ceded
9,999.2 1,636.4 113.1 1,255.2 1,411.0 381.0 
Policyholder account values, end of period for contracts 100% ceded139.4 592.4 25.2 104.6 — 10.3 
Amount of reserves above (below) policyholder account values (c)
(460.0)— — 14.7 — — 
Policyholder account balance, end of period
$9,678.6 $2,228.8 $138.3 $1,374.5 $1,411.0 $391.3 
Balance, end of period, reinsurance ceded(132.4)(592.4)(25.2)(122.9)— (24.1)
Balance, end of period, net of reinsurance$9,546.2 $1,636.4 $113.1 $1,251.6 $1,411.0 $367.2 
Weighted average crediting rate (d)1.8 %2.8 %2.4 %3.8 %2.0 %0.8 %
Cash surrender value, net of reinsurance$9,326.2 $1,610.0 $113.1 $1,013.6 $— $367.2 

_________________
(a)    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 $28,241.0 million at the balance sheet date.
(b)    Predominantly consists of retained asset accounts associated with our traditional life and supplemental health blocks.
(c)    Such amount represents the difference between: (i) the total insurance liabilities for our fixed indexed products (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.
(d)    Excludes any impact from the amount of reserves above (below) policyholder account balances.
The following table reconciles the liability for policyholder account balances to the amount presented in the consolidated balance sheet (dollars in millions):

20242023
Amounts included in the liability for policyholder account balances rollforwards:
Fixed indexed annuities$10,465.8 $9,678.6 
Fixed interest annuities2,187.0 2,228.8 
Other annuities135.6 138.3 
Interest-sensitive life1,437.0 1,374.5 
Funding agreements3,021.2 1,411.0 
Other369.2 391.3 
Total$17,615.8 $15,222.5 
The following tables present the policyholder 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):
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%
92.5 194.7 233.9 73.5 $594.6 
3.00%-4.99%
1,256.3 48.3 176.7 29.8 1,511.1 
5.00% and greater
81.3 — — — 81.3 
Subtotal1,430.1 243.0 410.6 103.3 2,187.0 
Other annuities
0.00%-2.99%
27.3 22.7 — — 50.0 
3.00%-4.99%
47.9 — — — 47.9 
5.00% and greater
37.7 — — — 37.7 
Subtotal112.9 22.7 — — 135.6 
Interest-sensitive life
0.00%-2.99%
15.2 — 0.4 718.7 734.3 
3.00%-4.99%
370.6 113.0 179.6 1.4 664.6 
5.00% and greater
20.6 .5 — — 21.1 
Subtotal406.4 113.5 180.0 720.1 1,420.0 
Other
0.00%-2.99%
16.7 330.8 — — 347.5 
3.00%-4.99%
21.5 — — — 21.5 
5.00% and greater
0.2 — — — 0.2 
Subtotal38.4 330.8 — — 369.2 
Total
0.00%-2.99%
151.7 548.2 234.3 792.2 1,726.4 
3.00%-4.99%
1,696.3 161.3 356.3 31.2 2,245.1 
5.00% and greater
139.8 0.5 — — 140.3 
Total policyholder account values, excluding fixed indexed annuities
$1,987.8 $710.0 $590.6 $823.4 4,111.8 
Fixed indexed annuity account values
10,890.3 
Funding agreements3,021.2 
Total policyholder account values
18,023.3 
Amount of reserves above (below) policyholder account values
(407.5)
Total policyholder account balances
$17,615.8 
____________________
(a)     Excludes the account values 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.
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%
112.9 232.6 225.3 105.7 $676.5 
3.00%-4.99%
1,438.4 27.3 — — 1,465.7 
5.00% and greater
86.6 — — — 86.6 
Subtotal1,637.9 259.9 225.3 105.7 2,228.8 
Other annuities
0.00%-2.99%
34.4 25.0 — — 59.4 
3.00%-4.99%
44.9 — — — 44.9 
5.00% and greater
34.0 — — — 34.0 
Subtotal113.3 25.0 — — 138.3 
Interest-sensitive life
0.00%-2.99%
16.2 7.9 14.9 637.7 676.7 
3.00%-4.99%
448.1 50.1 162.2 .5 660.9 
5.00% and greater
21.7 .5 — — 22.2 
Subtotal486.0 58.5 177.1 638.2 1,359.8 
Other
0.00%-2.99%
17.3 350.8 — — 368.1 
3.00%-4.99%
23.0 — — — 23.0 
5.00% and greater
.2 — — — .2 
Subtotal40.5 350.8 — — 391.3 
Total
0.00%-2.99%
180.8 616.3 240.2 743.4 1,780.7 
3.00%-4.99%
1,954.4 77.4 162.2 .5 2,194.5 
5.00% and greater
142.5 .5 — — 143.0 
Total policyholder account values, excluding fixed indexed annuities
$2,277.7 $694.2 $402.4 $743.9 4,118.2 
Fixed indexed annuity account values
10,138.6 
Funding agreements1,411.0 
Total policyholder account values
15,667.8 
Amount of reserves above (below) policyholder account values
(445.3)
Total policyholder account balances
$15,222.5 
____________________
(a)     Excludes the account values 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.