Additional Insurance Liabilities

6 Months Ended

Jun. 30, 2024

Discloure of Additional Insurance Liabilities [Abstract]

(10) Additional Insurance Liabilities

The following table presents the balances of and changes in additional liabilities related to death or other insurance benefits that are included within policyholder account balances related to universal and term universal life insurance products as of and for the periods indicated:


(Dollar amounts in millions)	June 30, 2024			December 31, 2023
Beginning balance as of January 1	$	2,887		$	2,566
Beginning balance before shadow accounting adjustments	$	2,939		$	2,634
Effect of changes in cash flow assumptions		—			200
Effect of actual variances from expected experience		(1	)		(3	)

Adjusted beginning balance		2,938			2,831
Issuances		—			—
Interest accretion		50			90
Assessments collected		125			240
Benefit payments		(120	)		(222	)
Derecognition (lapses and withdrawals)		—			—

Ending balance before shadow accounting adjustments		2,993			2,939
Effect of shadow accounting adjustments		(79	)		(52	)

Ending balance		2,914			2,887
Less: reinsurance recoverable		—			—

Additional insurance liabilities, net of reinsurance recoverable	$	2,914		$	2,887

Weighted-average liability duration (years)		18.4			18.9

In the fourth quarter of 2023, as part of our annual review of assumptions, we increased our additional insurance liabilities primarily to reflect unfavorable updates to our persistency and mortality assumptions to better reflect emerging experience. Our mortality assumption updates included more modest mortality improvement and reflected an expectation that mortality will continue at elevated levels in the near term

post-COVID-19.

The following table provides the weighted-average interest rates for our additional insurance liabilities as of the dates indicated:


	June 30, 2024			December 31, 2023
Interest accretion rate (1)		3.4	%		3.2	%
Projected crediting rate (2)		3.9	%		3.8	%

(1)	The interest accretion rate is determined by using the weighted-average policyholder crediting rates for the underlying policies over the period in-force, and based on the adjusted beginning balance, is used to measure the amount of interest accretion.

(2)

The projected crediting rate is determined by using a future crediting rate curve that utilizes a portfolio approach reflecting anticipated reinvestment activity and runoff of existing assets over the projection period. The projected crediting rate is used to discount future assessments and excess benefits.

The following table sets forth the amount of revenue and interest accretion (expense) recognized in net income related to additional insurance liabilities for the periods indicated:


	Three months ended				Six months ended				Year ended December 31,
	June 30,				June 30,				Year ended December 31,
(Amounts in millions)	2024		2023		2024		2023		2023

Gross assessments	$	132	$	136	$	265	$	272	$	539
Interest accretion (1)	$	25	$	22	$	50	$	44	$	90

(1)	Amounts for interest accretion are included in benefits and other changes in policy reserves in the condensed consolidated statements of income.