XML 26 R11.htm IDEA: XBRL DOCUMENT v3.25.1

LIABILITIES FOR INSURANCE PRODUCTS

3 Months Ended

Mar. 31, 2025

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 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.

The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the three months ended March 31, 2025 (dollars in millions):

						Three months ended
						March 31, 2025
						Supplemental health						Medicare supplement						Long-term care						Traditional life						Other annuities						Total
Present value of expected net premiums ("PVENP"), beginning of period						$	2,643.9					$	3,161.9					$	1,102.8					$	2,203.9					$	—					$	9,112.5
Effect of changes in discount rate assumptions, beginning of period						180.0						195.2						25.7						113.5						—						514.4
Beginning PVENP at original discount rate						2,823.9						3,357.1						1,128.5						2,317.4						—						9,626.9
Effect of actual variances from expected experience						(19.4)						33.3						(17.8)						(32.4)						—						(36.3)
Adjusted beginning of period PVENP						2,804.5						3,390.4						1,110.7						2,285.0						—						9,590.6
Issuances						108.3						157.3						43.1						91.8						1.6						402.1
Interest accrual						30.9						35.4						13.2						23.6						—						103.1
Net premiums collected						(90.0)						(116.8)						(40.6)						(99.9)						(1.6)						(348.9)
Ending PVENP at original discount rate						2,853.7						3,466.3						1,126.4						2,300.5						—						9,746.9
Effect of changes in discount rate assumptions, end of period						(154.3)						(157.9)						(13.9)						(86.4)						—						(412.5)
PVENP, end of period						$	2,699.4					$	3,308.4					$	1,112.5					$	2,214.1					$	—					$	9,334.4

Present value of expected future policy benefits ("PVEFPB"), beginning of period						$	5,828.2					$	3,375.6					$	4,240.1					$	4,570.6					$	264.5					$	18,279.0
Effect of changes in discount rate assumptions, beginning of period						516.6						211.5						94.1						333.3						16.2						1,171.7
Beginning PVEFPB at original discount rate						6,344.8						3,587.1						4,334.2						4,903.9						280.7						19,450.7
Effect of actual variances from expected experience						(22.6)						34.7						(20.8)						(40.7)						0.6						(48.8)
Adjusted beginning of period PVEFPB						6,322.2						3,621.8						4,313.4						4,863.2						281.3						19,401.9
Issuances						111.2						157.4						43.1						92.0						1.6						405.3
Interest accrual						73.2						37.9						57.0						52.6						3.2						223.9
Benefit payments						(104.1)						(123.4)						(73.0)						(122.5)						(7.2)						(430.2)
Ending PVEFPB at original discount rate						6,402.5						3,693.7						4,340.5						4,885.3						278.9						19,600.9
Effect of changes in discount rate assumptions, end of period						(465.5)						(171.3)						(60.9)						(283.0)						(16.5)						(997.2)
PVEFPB, end of period						$	5,937.0					$	3,522.4					$	4,279.6					$	4,602.3					$	262.4					$	18,603.7

Net liability for future policy benefits						$	3,237.6					$	214.0					$	3,167.1					$	2,388.2					$	262.4					$	9,269.3
Flooring impact						—						0.7						—						—						—						0.7
Adjusted net liability for future policy benefits						3,237.6						214.7						3,167.1						2,388.2						262.4						9,270.0
Related reinsurance recoverable						(1.2)						—						(368.1)						(166.4)						—						(535.7)
Net liability for future policy benefits, net of reinsurance recoverable						$	3,236.4					$	214.7					$	2,799.0					$	2,221.8					$	262.4					$	8,734.3

Adjusted net liability for future policy benefits																																	$	9,270.0
Reserves excluded from rollforward (a)																																	2,406.7
Deferred liability																																	68.7
Future loss reserves (b)																																	27.6
Future policy benefits																																	$	11,773.0

(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.

The following tables summarize balances and changes in the liability for future policy benefits for traditional and limited-payment contracts for the three months ended March 31, 2024 (dollars in millions):

						Three months ended
						March 31, 2024
						Supplemental health						Medicare supplement						Long-term care						Traditional life						Other annuities						Total
PVENP, beginning of period						$	2,718.2					$	3,009.2					$	1,055.6					$	2,279.6					$	—					$	9,062.6
Effect of changes in discount rate assumptions, beginning of period						86.8						99.1						(7.6)						67.6						—						245.9
Beginning PVENP at original discount rate						2,805.0						3,108.3						1,048.0						2,347.2						—						9,308.5
Effect of actual variances from expected experience						(15.2)						(39.0)						(7.9)						(21.2)						—						(83.3)
Adjusted beginning of period PVENP						2,789.8						3,069.3						1,040.1						2,326.0						—						9,225.2
Issuances						66.0						134.2						46.9						108.2						0.9						356.2
Interest accrual						30.7						32.2						12.9						24.3						—						100.1
Net premiums collected						(86.9)						(114.4)						(39.5)						(99.9)						(0.9)						(341.6)
Ending PVENP at original discount rate						2,799.6						3,121.3						1,060.4						2,358.6						—						9,339.9
Effect of changes in discount rate assumptions, end of period						(139.1)						(145.5)						(11.5)						(102.0)						—						(398.1)
PVENP, end of period						$	2,660.5					$	2,975.8					$	1,048.9					$	2,256.6					$	—					$	8,941.8

PVEFPB, beginning of period						$	6,023.3					$	3,236.6					$	4,364.6					$	4,694.7					$	308.9					$	18,628.1
Effect of changes in discount rate assumptions, beginning of period						229.8						108.3						(132.8)						170.9						3.0						379.2
Beginning PVEFPB at original discount rate						6,253.1						3,344.9						4,231.8						4,865.6						311.9						19,007.3
Effect of actual variances from expected experience						(17.7)						(39.1)						(12.1)						(22.0)						0.8						(90.1)
Adjusted beginning of period PVEFPB						6,235.4						3,305.8						4,219.7						4,843.6						312.7						18,917.2
Issuances						66.0						134.2						47.0						108.2						0.9						356.3
Interest accrual						72.6						34.9						56.7						52.8						3.6						220.6
Benefit payments						(105.6)						(117.8)						(74.2)						(120.7)						(8.2)						(426.5)
Ending PVEFPB at original discount rate						6,268.4						3,357.1						4,249.2						4,883.9						309.0						19,067.6
Effect of changes in discount rate assumptions, end of period						(371.4)						(158.4)						25.5						(263.8)						(10.1)						(778.2)
PVEFPB, end of period						$	5,897.0					$	3,198.7					$	4,274.7					$	4,620.1					$	298.9					$	18,289.4

Net liability for future policy benefits						$	3,236.5					$	222.9					$	3,225.8					$	2,363.5					$	298.9					$	9,347.6
Flooring impact						—						0.8						—						—						—						0.8
Adjusted net liability for future policy benefits						3,236.5						223.7						3,225.8						2,363.5						298.9						9,348.4
Related reinsurance recoverable						(1.5)						—						(360.8)						(187.3)						—						(549.6)
Net liability for future policy benefits, net of reinsurance recoverable						$	3,235.0					$	223.7					$	2,865.0					$	2,176.2					$	298.9					$	8,798.8

Adjusted net liability for future policy benefits																																	$	9,348.4
Reserves excluded from rollforward (a)																																	2,488.1
Deferred liability																																	64.7
Future loss reserves (b)																																	31.0
Future policy benefits																																	$	11,932.2

(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.

The following table presents the balance of and changes in MRBs associated with our fixed indexed annuities (dollars in millions):

						Three months ended
						March 31,
						2025						2024
Net liability (asset), beginning of period						$	60.0					$	117.1
Effect of changes in the instrument-specific credit risk, beginning of period						1.4						4.8
Balance, beginning of period, before effect of changes in the instrument-specific credit risk						61.4						121.9
Issuances						1.1						0.8
Interest accrual						0.8						1.3
Effect of changes in interest rates						5.8						(13.7)
Effect of changes in equity markets						2.0						(4.9)
Effect of changes in equity index volatility						6.8						(1.2)
Actual policyholder behavior different from expected behavior						(0.3)						(0.4)
Effect of changes in assumptions						(0.9)						(0.8)
Net liability (asset), end of period, before effect of changes in the instrument-specific credit risk						76.7						103.0
Effect of changes in the instrument-specific credit risk, end of period						(3.1)						(3.4)
Net liability (asset), end of period, net of reinsurance						$	73.6					$	99.6
Balance reported as an asset						$	—					$	—
Balance reported as a liability						73.6						99.6
Net liability (asset)						$	73.6					$	99.6
Net amount at risk						$	25.2					$	46.2
Weighted average attained age of contract holders						69						69

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)
						Three months ended												Three months ended
						March 31,												March 31,
						2025						2024						2025						2024
Other annuities						$	2.0					$	1.0					$	3.2					$	3.6
Supplemental health						184.8						175.2						42.3						41.9
Medicare supplement						158.1						156.8						2.5						2.7
Long-term care						86.7						85.0						43.8						43.8
Traditional life						183.4						178.9						29.0						28.5
Total						$	615.0					$	596.9					$	120.8					$	120.5

_____________________

(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):

						March 31, 2025												March 31, 2024
						Undiscounted						Discounted (a)						Undiscounted						Discounted (a)
Other annuity
Expected future gross premiums						$	—					$	—					$	—					$	—
Expected future benefits and expenses						324.1						262.4						370.6						298.9
Supplemental health
Expected future gross premiums						9,028.5						5,543.1						8,932.2						5,527.6
Expected future benefits and expenses						11,079.0						5,937.0						10,812.6						5,897.0
Medicare supplement
Expected future gross premiums						6,484.6						4,427.0						5,744.3						4,024.7
Expected future benefits and expenses						5,187.4						3,522.4						4,601.3						3,198.7
Long-term care
Expected future gross premiums						3,508.9						2,437.8						3,330.8						2,340.7
Expected future benefits and expenses						7,967.7						4,279.6						7,724.0						4,274.7
Traditional life
Expected future gross premiums						5,681.9						4,077.6						5,642.0						4,048.0
Expected future benefits and expenses						7,616.2						4,602.3						7,574.2						4,620.1

_____________________

(a) Calculated at the discount rates at period end.

Loss expense as a result of net premium ratio capping was not material in both the three months ended March 31, 2025 and 2024.

The following table provides the weighted average durations (under locked-in rates) of the liability for future policy benefits in years:

						March 31, 2025						March 31, 2024
Other annuity						9.6						9.6
Supplemental health						11.3						11.3
Medicare supplement						6.3						6.4
Long-term care						10.8						10.6
Traditional life						10.2						10.4

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

						March 31, 2025						March 31, 2024
Other annuities
Interest accretion rate						4.80		%				4.82		%
Current discount rate						5.63		%				5.37		%
Supplemental health
Interest accretion rate						4.97		%				5.00		%
Current discount rate						5.51		%				5.35		%
Medicare supplement
Interest accretion rate						4.31		%				4.31		%
Current discount rate						5.23		%				5.24		%
Long-term care
Interest accretion rate						5.66		%				5.67		%
Current discount rate						5.57		%				5.39		%
Traditional life
Interest accretion rate						4.78		%				4.77		%
Current discount rate						5.53		%				5.37		%

The following tables present the balances of and changes in the liability for policyholder account balances (dollars in millions):

						Three months ended
						March 31, 2025
						Fixed indexed annuities						Fixed interest annuities						Other annuities						Interest-sensitive life (a)						Funding agreements						Other (b)						Total
Policyholder account values, beginning of period excluding contracts 100% ceded						$	10,766.3					$	1,646.6					$	107.4					$	1,321.8					$	3,021.2					$	359.1					$	17,222.4
Issuances (funds collected from new business)						383.6						50.9						—						9.7						—						—						444.2
Premiums received (premiums collected from inforce business)						3.9						0.7						6.7						55.0						—						65.4						131.7
Policy charges						(6.8)						(0.4)						—						(49.9)						—						—						(57.1)
Surrenders and withdrawals						(233.2)						(41.4)						(8.6)						(10.0)						(419.8)						(69.3)						(782.3)
Benefit payments						(72.6)						(28.4)						(1.2)						(6.5)						—						—						(108.7)
Interest credited						96.4						12.7						0.6						17.6						27.1						0.6						155.0
Other						14.5						—						0.1						(0.1)						—						—						14.5
Policyholder account values, end of period excluding contracts 100% ceded						10,952.1						1,640.7						105.0						1,337.6						2,628.5						355.8						17,019.7
Policyholder account values, end of period for contracts 100% ceded						121.6						527.3						28.0						96.5						—						10.0						783.4
Amount of reserves above (below) policyholder account values (c)						(462.4)						—						—						5.3						—						—						(457.1)
Balance, end of period						$	10,611.3					$	2,168.0					$	133.0					$	1,439.4					$	2,628.5					$	365.8					$	17,346.0
Balance, end of period, reinsurance ceded						(114.0)						(527.3)						(28.0)						(114.4)						—						(23.3)						(807.0)
Balance, end of period, net of reinsurance						$	10,497.3					$	1,640.7					$	105.0					$	1,325.0					$	2,628.5					$	342.5					$	16,539.0

Weighted average crediting rate (d) 2.1  % 2.9  % 2.7  % 5.4  % 4.1  % 0.8  %

Cash surrender value, net of reinsurance $ 10,233.1  $ 1,598.5  $ 105.0  $ 1,090.2  $ —  $ 342.5 

_______________

(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 $29.8 billion 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.

						Three months ended
						March 31, 2024
						Fixed indexed annuities						Fixed interest annuities						Other annuities						Interest-sensitive life (a)						Funding agreements						Other (b)						Total
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					$	14,795.9
Issuances (funds collected from new business)						345.4						45.1						—						9.7						—						—						400.2
Premiums received (premiums collected from inforce business)						0.5						1.0						5.7						52.4						—						65.7						125.3
Policy charges						(6.5)						(0.3)						—						(48.2)						—						—						(55.0)
Surrenders and withdrawals						(232.2)						(52.8)						(8.7)						(8.1)						(9.9)						(74.5)						(386.2)
Benefit payments						(74.4)						(30.2)						(1.4)						(5.4)						—						—						(111.4)
Interest credited						68.9						11.4						0.5						15.2						7.2						0.7						103.9
Other						11.8						—						(0.1)						(0.1)						—						—						11.6
Policyholder account values, end of period excluding contracts 100% ceded						10,112.7						1,610.6						109.1						1,270.7						1,408.3						372.9						14,884.3
Policyholder account values, end of period for contracts 100% ceded						134.4						579.3						25.5						102.9						—						10.3						852.4
Amount of reserves above (below) policyholder account values (c)						(398.4)																		22.8																		(375.6)
Policyholder account balance, end of period						$	9,848.7					$	2,189.9					$	134.6					$	1,396.4					$	1,408.3					$	383.2					$	15,361.1
Balance, end of period, reinsurance ceded						(134.4)						(579.3)						(25.5)						(121.0)						—						(24.0)						(884.2)
Balance, end of period, net of reinsurance						$	9,714.3					$	1,610.6					$	109.1					$	1,275.4					$	1,408.3					$	359.2					$	14,476.9

Weighted average crediting rate (d) 1.9  % 2.8  % 2.4  % 4.3  % 2.0  % 0.8  %

Cash surrender value, net of reinsurance $ 9,434.2  $ 1,582.1  $ 109.1  $ 1,027.7  $ —  $ 359.2 

_________________

(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 $28.7 billion 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 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):

						March 31, 2025
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%						$	88.3					$	188.6					$	282.3					$	59.2					$	618.4
3.00%-4.99%						1,230.5						34.8						174.4						27.1						1,466.8
5.00% and greater						82.8						—						—						—						82.8
Subtotal						1,401.6						223.4						456.7						86.3						2,168.0
Other annuities
0.00%-2.99%						24.9						22.4						—						—						47.3
3.00%-4.99%						48.0						—						—						—						48.0
5.00% and greater						37.7						—						—						—						37.7
Subtotal						110.6						22.4						—						—						133.0
Interest-sensitive life
0.00%-2.99%						15.8						—						0.4						731.6						747.8
3.00%-4.99%						366.3						112.1						185.1						1.6						665.1
5.00% and greater						20.6						0.5						—						—						21.1
Subtotal						402.7						112.6						185.5						733.2						1,434.0
Other
0.00%-2.99%						16.5						327.9						—						—						344.4
3.00%-4.99%						21.1						—						—						—						21.1
5.00% and greater						0.3						—						—						—						0.3
Subtotal						37.9						327.9						—						—						365.8
Total
0.00%-2.99%						145.5						538.9						282.7						790.8						1,757.9
3.00%-4.99%						1,665.9						146.9						359.5						28.7						2,201.0
5.00% and greater						141.4						0.5						—						—						141.9
Total policyholder account balances, excluding fixed indexed annuities						$	1,952.8					$	686.3					$	642.2					$	819.5					4,100.8
Fixed indexed annuity account balances																														11,073.8
Funding agreements																														2,628.5
Total policyholder account values																														17,803.1
Amount of reserves above (below) policyholder account values																														$	(457.1)
Total policyholder account balances																														$	17,346.0

____________________

(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.

						March 31, 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%						$	105.2					$	211.9					$	233.0					$	100.9					$	651.0
3.00%-4.99%						1,380.6						49.6						15.9						5.2						1,451.3
5.00% and greater						87.6						—						—						—						87.6
Subtotal						1,573.4						261.5						248.9						106.1						2,189.9
Other annuities
0.00%-2.99%						31.6						24.1						—						—						55.7
3.00%-4.99%						44.4						—						—						—						44.4
5.00% and greater						34.5						—						—						—						34.5
Subtotal						110.5						24.1						—						—						134.6
Interest-sensitive life
0.00%-2.99%						17.6						—						5.4						667.2						690.2
3.00%-4.99%						444.2						49.7						167.1						0.5						661.5
5.00% and greater						21.4						0.5						—						—						21.9
Subtotal						483.2						50.2						172.5						667.7						1,373.6
Other
0.00%-2.99%						17.1						343.0						—						—						360.1
3.00%-4.99%						22.9						—						—						—						22.9
5.00% and greater						0.2						—						—						—						0.2
Subtotal						40.2						343.0						—						—						383.2
Total
0.00%-2.99%						171.5						579.0						238.4						768.1						1,757.0
3.00%-4.99%						1,892.1						99.3						183.0						5.7						2,180.1
5.00% and greater						143.7						0.5						—						—						144.2
Total policyholder account balances, excluding fixed indexed annuities						$	2,207.3					$	678.8					$	421.4					$	773.8					4,081.3
Fixed indexed annuity account balances																														10,247.1
Funding agreements																														1,408.3
Total policyholder account values																														15,736.7
Amount of reserves above (below) policyholder account values																														(375.6)
Total policyholder account balances																														$	15,361.1

____________________

(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

X

- References

No definition available.

+ Details

Name:	us-gaap_InsuranceAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480081/944-40-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/944-40/tableOfContent

+ Details

Name:	us-gaap_LiabilityForFuturePolicyBenefitsAndUnpaidClaimsDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration