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Policyholders' Account Balances

9 Months Ended

Sep. 30, 2024

Insurance [Abstract]

Policyholders' Account Balances

18. Policyholders' Account Balances

Policyholders’ account balances relate to investment-type contracts and universal life-type policies. Investment-type contracts principally include traditional individual fixed annuities and fixed index annuities in the accumulation phase and non-variable group annuity contracts.

The balances and changes in policyholders’ account balances follow.

			Nine Months Ended September 30, 2024												Year Ended December 31, 2023
			Annuity						Life						Annuity						Life
			(Dollars in millions)
Balance, beginning of period			$	14,694					$	1,975					$	12,012					$	1,899
Issuances			8,192						51						4,382						84
Acquisition from business combination			61,296						—						—						—
Premiums received			46						314						34						399
Policy charges			(298)						(284)						(39)						(362)
Surrenders and withdrawals			(6,278)						(62)						(2,132)						(110)
Interest credited			1,467						74						437						65
Benefit payments			(386)						—						—						—
Other			4						—						—						—
Balance, end of period			$	78,737					$	2,068					$	14,694					$	1,975
Reconciling items:
Supplemental contracts			$	499					$	—					$	291					$	—
Variable universal life			—						39						—						36
Variable deferred annuity			8						—						8						—
Embedded derivative and other			1,004						58						135						38
Total PAB balance, end of period			$	80,248					$	2,165					$	15,128					$	2,049
Weighted-average crediting rate			3.89		%				4.88		%				3.27		%				3.34		%
Net amount at risk (a)			$	12,495					$	38,548					$	417					$	38,365
Cash surrender value			$	72,719					$	1,826					$	15,000					$	1,796

(a)Net amount at risk is defined as the current guarantee amount in excess of the current account balance.

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 follow.

			September 30, 2024
			Range of Guaranteed Minimum Crediting Rate						At Guaranteed Minimum						1 - 50 Basis Points Above						51 - 150 Basis Points Above						> 150 Basis Points Above						Other						Total
									(Dollars in millions)
Annuity			0% - 1%						$	4,176					$	2,882					$	3,676					$	4,763					$	—					$	15,497
			1% - 2%						1,504						366						1,411						1,765						—						5,046
			2% - 3%						1,907						412						142						8,354						—						10,815
			Greater than 3%						289						6						1						9						—						305
Products with either a fixed rate or no guaranteed minimum crediting rate									—						—						—						—						47,074						47,074
			Total						$	7,876					$	3,666					$	5,230					$	14,891					$	47,074					$	78,737
Life			0% - 1%						$	—					$	—					$	—					$	—					$	—					$	—
			1% - 2%						30						2						57						699						—						788
			2% to 3%						422						—						222						—						—						644
			Greater than 3%						636						—						—						—						—						636
Products with either a fixed rate or no guaranteed minimum crediting rate									—						—						—						—						—						—
			Total						$	1,088					$	2					$	279					$	699					$	—					$	2,068
			December 31, 2023
			Range of Guaranteed Minimum Crediting Rate						At Guaranteed Minimum						1 - 50 Basis Points Above						51 - 150 Basis Points Above						> 150 Basis Points Above						Other						Total
									(Dollars in millions)
Annuity			0% - 1%						$	2,485					$	29					$	483					$	722					$	—					$	3,719
			1% - 2%						668						430						1,943						2,137						—						5,178
			2% - 3%						827						409						56						4,224						—						5,516
			Greater than 3%						264						7						1						1						—						273
Products with either a fixed rate or no guaranteed minimum crediting rate									—						—						—						—						8						8
			Total						$	4,244					$	875					$	2,483					$	7,084					$	8					$	14,694
Life			0% - 1%						$	—					$	—					$	—					$	—					$	—					$	—
			1% - 2%						168						2						140						371						—						681
			2% to 3%						415						—						219						—						—						634
			Greater than 3%						659						—						—						—						—						659
Products with either a fixed rate or no guaranteed minimum crediting rate									—						—						—						—						1						1
			Total						$	1,242					$	2					$	359					$	371					$	1					$	1,975

In the third quarter of 2024, the Company performed its annual assumption review related to investment-type contracts and universal life-type contracts, which resulted in $60 million net increase primarily in the value of embedded derivatives related to fixed-index annuity products, which was included in “Change in fair value of insurance-related derivatives and embedded derivatives” in the consolidated statements of operations. The notable changes made to cash flow assumptions from the annual assumption review were a net increase in option budget primarily from an increase in investment portfolio rates and an increase in the utilization assumption for the lifetime income benefit riders partially offset by favorable updates to policyholder lapse behavior assumptions. In 2023, the Company performed its annual assumption review in the fourth quarter of 2023, resulting in no material changes to the value of the embedded derivative in policyholders’ account balances.

19. Market Risk Benefits

Market Risk Benefits

The balances of and changes in the net market risk benefit (MRB) assets and liabilities for the nine months ended September 30, 2024 and year ended December 31, 2023 is as follows:

			Nine Months Ended September 30, 2024												Year Ended December 31, 2023
			Annuity												Annuity
			(Dollars in millions)
Balance, beginning of period			$	—											$	44
Balance, beginning of period, before effect of changes in the instrument-specific credit risk			1												70
Acquisition from business combination (a)			2,420												—
Issuances			3												1
Interest accrual			61												3
Attributed fees collected			91												13
Benefits payments			—												—
Effect of changes in interest rates			413												(117)
Effect of changes in equity markets			(39)												171
Effect of changes in equity index volatility			(95)												(46)
Actual policyholder behavior different from expected behavior			—												(7)
Effect of changes in future expected policyholder behavior			(13)												—
Effect of changes in other future expected assumptions			44												(87)
Balance, end of period, before effect of changes in the instrument-specific credit			2,886												1
Effect of changes in the ending instrument-specific credit risk			81												(1)
Balance, end of period			2,967												—
Less: Reinsured MRB, end of period			(746)												—
Balance, end of period, net of reinsurance			$	2,221											$	—
Net amount at risk (b)			$	12,078											$	—
Weighted average attained age of contract holders (years)			71												65

(a)Includes a measurement period adjustment to market risk benefits liability which was assumed through the acquisition of AEL in May 2024. See Note 16 - Acquisition for further details.

(b)Net amount at risk is defined as the current guarantee amount in excess of the current account balance.

The following is a reconciliation of market risk benefits by amounts in an asset position and in a liability position to “Market risk benefits” amount in the Consolidated Statements of Financial Position:

			September 30, 2024
			Asset						Liability						Net Liability
			(Dollars in millions)
Annuity			$	758					$	3,725					$	2,967
Total			$	758					$	3,725					$	2,967
			December 31, 2023
			Asset						Liability						Net Liability
			(Dollars in millions)
Annuity			$	34					$	34					$	—
Total			$	34					$	34					$	—

In the third quarter of 2024, the Company performed its annual assumption review for annuity contracts, which resulted in a $40 million net decrease in the market risk benefits liability, which was included in “Change in fair value of market risk benefits” in the consolidated statements of operations. The notable changes to cash flow assumptions from the annual assumption review were a net increase in option budget primarily from an increase in investment portfolio rates and favorable updates to policyholder lapse behavior assumptions. In 2023, the Company performed its annual assumption review in the fourth quarter of 2023, resulting in no material changes to the market risk benefits liability.

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- Definition

The entire disclosure for long duration contracts. This may include the information pertinent to an understanding of the types of traditional and nontraditional insurance and investment contracts sold and serviced, including the nature and amount of estimated guaranteed obligations pertaining to such contracts and the assumptions underlying such estimated amounts, hedging strategies, and sales inducements offered.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (u)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480016/944-40-65-2

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

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