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Insurance Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

Insurance [Abstract]

Schedule of Liability for Future Policy Benefits, by Product Segment

Information regarding liability for future policy benefits (“LFPB”) for non-participating traditional and limited-payment contracts was as follows:

						Three Months Ended March 31,
						2024																		2023
						Term and Whole Life Insurance						Income Annuities						Structured Settlement and Pension Risk Transfer Annuities						Term and Whole Life Insurance						Income Annuities						Structured Settlement and Pension Risk Transfer Annuities
						(Dollars in millions)
Present value of expected net premiums:
Balance, beginning of period						$	2,974					$	—					$	—					$	2,871					$	—					$	—
Beginning balance at original discount rate						3,234						—						—						3,212						—						—
Effect of model refinements						1						—						—						—						—						—
Effect of actual variances from expected experience						(7)						—						—						(9)						—						—
Adjusted beginning of period balance						3,228						—						—						3,203						—						—
Issuances						24						—						—						24						—						—
Interest accrual						29						—						—						28						—						—
Net premiums collected						(92)						—						—						(90)						—						—
Ending balance at original discount rate						3,189						—						—						3,165						—						—
Effect of changes in discount rate assumptions						(308)						—						—						(270)						—						—
Balance, end of period						$	2,881					$	—					$	—					$	2,895					$	—					$	—
Present value of expected future policy benefits:
Balance, beginning of period						$	5,507					$	3,754					$	6,697					$	5,279					$	3,512					$	6,793
Beginning balance at original discount rate						6,023						4,031						7,085						5,922						3,897						7,410
Effect of model refinements						1						—						—						—						—						—
Effect of actual variances from expected experience						(5)						4						(2)						(9)						(31)						(31)
Adjusted beginning of period balance						6,019						4,035						7,083						5,913						3,866						7,379
Issuances						25						99						—						24						78						—
Interest accrual						55						38						77						54						36						80
Benefit payments						(153)						(104)						(147)						(131)						(89)						(146)
Ending balance at original discount rate						5,946						4,068						7,013						5,860						3,891						7,313
Effect of changes in discount rate assumptions						(619)						(351)						(576)						(501)						(287)						(385)
Balance, end of period						$	5,327					$	3,717					$	6,437					$	5,359					$	3,604					$	6,928
Net liability for future policy benefits, end of period						$	2,446					$	3,717					$	6,437					$	2,464					$	3,604					$	6,928
Less: Reinsurance recoverable, end of period						38						30						62						43						26						69
Net liability for future policy benefits, after reinsurance recoverable						$	2,408					$	3,687					$	6,375					$	2,421					$	3,578					$	6,859
Weighted-average duration of liability						8.7 years						8.1 years						11.6 years						8.4 years						8.4 years						11.6 years
Weighted-average interest accretion rate						3.94		%				3.99		%				4.46		%				3.96		%				3.87		%				4.46		%
Current discount rate						5.24		%				5.24		%				5.32		%				4.90		%				4.92		%				5.00		%
Gross premiums or assessments recognized during period						$	140					$	123					$	—					$	153					$	102					$	—
Expected future gross premiums, undiscounted						$	6,057					$	—					$	—					$	6,618					$	—					$	—
Expected future gross premiums, discounted						$	4,553					$	—					$	—					$	4,905					$	—					$	—
Expected future benefit payments, undiscounted						$	8,232					$	5,765					$	13,622					$	8,099					$	5,375					$	14,224
Expected future benefit payments, discounted						$	5,946					$	4,068					$	7,013					$	5,860					$	3,891					$	7,313

Information regarding the additional insurance liabilities for universal life-type contracts with secondary guarantees was as follows:

						Three Months Ended March 31,
						2024						2023
						(Dollars in millions)
Balance, beginning of period						$	7,607					$	6,935
Beginning balance before the effect of unrealized gains and losses						7,784						7,175
Effect of actual variances from expected experience						40						34
Adjusted beginning of period balance						7,824						7,209
Interest accrual						94						87
Net assessments collected						103						101
Benefit payments						(115)						(103)
Ending balance before the effect of unrealized gains and losses						7,906						7,294
Effect of unrealized gains and losses						(220)						(171)
Balance, end of period						7,686						7,123
Less: Reinsurance recoverable, end of period						1,447						1,397
Net additional liability, after reinsurance recoverable						$	6,239					$	5,726
Weighted-average duration of liability						6.7 years						6.7 years
Weighted-average interest accretion rate						4.93		%				4.91		%
Gross assessments recognized during period						$	254					$	256

A reconciliation of the net LFPBs for nonparticipating traditional and limited-payment contracts and the additional insurance liabilities for universal life-type contracts with secondary guarantees reported in the preceding rollforward tables to LFPBs on the consolidated balance sheets was as follows at:

						March 31,
						2024						2023
						(In millions)
Liabilities reported in the preceding rollforward tables						$	20,286					$	20,119
Long-term care insurance (1)						5,375						5,763
ULSG liabilities, including liability for profits followed by losses						2,591						2,654
Participating whole life insurance (2)						3,128						2,986
Deferred profit liabilities						480						373
Other						385						391
Total liability for future policy benefits						$	32,245					$	32,286

_______________

(1)Includes liabilities related to fully reinsured individual long-term care insurance. See Note 2.

(2)Participating whole life insurance uses an interest assumption based on the non-forfeiture interest rate, ranging from 3.5% to 4.5%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts, and also includes a liability for terminal dividends. Participating whole life insurance represented 3% of the Company’s life insurance in-force at both March 31, 2024 and 2023, and 41% and 39% of gross traditional life insurance premiums for the three months ended March 31, 2024 and 2023, respectively.

Policyholder Account Balance

Information regarding policyholder account balances was as follows:

						Universal Life Insurance						Variable Annuities (1)						Index-linked Annuities						Fixed Rate Annuities						ULSG						Company-Owned Life Insurance (1)
						(Dollars in millions)
Three Months Ended March 31, 2024
Balance, beginning of period						$	2,550					$	4,307					$	41,627					$	14,672					$	5,052					$	653
Premiums and deposits						61						19						2,052						637						162						—
Surrenders and withdrawals						(22)						(187)						(1,274)						(441)						(4)						—
Benefit payments						(15)						(25)						(77)						(84)						(17)						(3)
Net transfers from (to) separate account						16						34						—						—						—						200
Interest credited						25						28						138						139						40						8
Policy charges						(54)						(6)						(4)						—						(249)						(2)
Changes related to embedded derivatives						—						—						1,888						—						—						—
Balance, end of period						$	2,561					$	4,170					$	44,350					$	14,923					$	4,984					$	856
Weighted-average crediting rate (2)						0.98		%				0.66		%				0.41		%				0.94		%				0.80		%				1.06		%
Three Months Ended March 31, 2023
Balance, beginning of period						$	2,658					$	4,908					$	33,896					$	14,274					$	5,307					$	641
Premiums and deposits						55						27						1,677						912						171						—
Surrenders and withdrawals						(70)						(177)						(785)						(506)						(6)						—
Benefit payments						(25)						(36)						(50)						(102)						(38)						(2)
Net transfers from (to) separate account						12						11						—						—						—						—
Interest credited						22						41						96						106						43						7
Policy charges						(57)						(7)						(2)						—						(258)						(2)
Changes related to embedded derivatives						—						—						1,090						—						—						—
Balance, end of period						$	2,595					$	4,767					$	35,922					$	14,684					$	5,219					$	644
Weighted-average crediting rate (2)						0.84		%				0.85		%				0.32		%				0.73		%				0.82		%				1.09		%

_______________

(1)Includes liabilities related to separate account products where the contract holder elected a general account investment option.

(2)Excludes the effects of embedded derivatives related to index-linked crediting rates.

A reconciliation of policyholder account balances reported in the preceding rollforward table to the liability for policyholder account balances on the consolidated balance sheets was as follows at:

						March 31,
						2024						2023
						(In millions)
Policyholder account balances reported in the preceding rollforward table						$	71,844					$	63,831
Funding agreements classified as investment contracts						11,245						11,151
Other investment contract liabilities						1,070						1,138
Total policyholder account balances						$	84,159					$	76,120

Policyholder Account Balance, Guaranteed Minimum Crediting Rate

The balance of 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 was as follows at:

Range of Guaranteed Minimum Crediting Rate						At Guaranteed Minimum						1 to 50 Basis Points Above						51 to 150 Basis Points Above						Greater than 150 Basis Points Above						Total
						(In millions)
March 31, 2024
Annuities (1):
Less than 2.00%						$	663					$	170					$	292					$	8,278					$	9,403
2.00% to 3.99%						8,347						270						167						493						9,277
Greater than 3.99%						854						—						—						—						854
Total						$	9,864					$	440					$	459					$	8,771					$	19,534
Life insurance (2) (3):
Less than 2.00%						$	—					$	—					$	—					$	255					$	255
2.00% to 3.99%						—						499						49						135						683
Greater than 3.99%						1,581						—						—						—						1,581
Total						$	1,581					$	499					$	49					$	390					$	2,519
ULSG (3):
Less than 2.00%						$	—					$	—					$	—					$	—					$	—
2.00% to 3.99%						1,113						1,463						1,648						250						4,474
Greater than 3.99%						501						—						—						—						501
Total						$	1,614					$	1,463					$	1,648					$	250					$	4,975
December 31, 2023
Annuities (1):
Less than 2.00%						$	697					$	223					$	310					$	7,652					$	8,882
2.00% to 3.99%						8,827						242						225						356						9,650
Greater than 3.99%						874						—						—						—						874
Total						$	10,398					$	465					$	535					$	8,008					$	19,406
Life insurance (2) (3):
Less than 2.00%						$	—					$	—					$	—					$	236					$	236
2.00% to 3.99%						—						492						49						136						677
Greater than 3.99%						1,595						—						—						—						1,595
Total						$	1,595					$	492					$	49					$	372					$	2,508
ULSG (3):
Less than 2.00%						$	—					$	—					$	—					$	—					$	—
2.00% to 3.99%						1,135						1,485						1,663						254						4,537
Greater than 3.99%						506						—						—						—						506
Total						$	1,641					$	1,485					$	1,663					$	254					$	5,043

_______________

(1)Includes policyholder account balances for fixed rate annuities and the fixed account portion of variable annuities.

(2)Includes policyholder account balances for retained asset accounts, universal life policies and the fixed account portion of universal variable life insurance policies.

(3)Amounts are gross of policy loans.

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Tabular disclosure of policyholder account balance by range of guaranteed minimum crediting rate and related range of difference between rate being credited to policyholder and respective guaranteed minimum.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 55
-Paragraph 29F
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480046/944-40-55-29F

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-Topic 944
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-Name Accounting Standards Codification
-Section 50
-Paragraph 7A
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-Publisher FASB
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Tabular disclosure of information about policyholder account balance, including, but not limited to change in liability and related cash surrender value.

+ References

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-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 55
-Paragraph 29F
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-URI https://asc.fasb.org//1943274/2147480046/944-40-55-29F

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The entire disclosure for the present values of future benefits to be paid to or on behalf of policyholders and related expenses less the present value of future net premiums using assumptions such as estimates of expected investment yields, mortality, morbidity, terminations and expenses, applicable at the time the insurance contracts are made and unpaid claim costs relating to insurance contracts including estimates of costs relating to incurred but not reported claims based on the estimated ultimate cost of settling the claims (including effects of inflation and other societal and economic factors), using past experience adjusted for current trends and any other factors that would modify past experience by element such as business segment, country and interest rate range.

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