Reinsurance (Tables)

9 Months Ended

Sep. 30, 2024

The effect of reinsurance on net premiums earned and claims incurred and policyholder benefits paid are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(Dollars in millions)
Premiums earned:
Gross amounts	$	1,253	$	1,090	$	4,124	$	3,501
Reinsurance ceded	(365)		(306)		(1,087)		(934)
Net premiums earned	$	888	$	784	$	3,037	$	2,567

Other policy revenue:
Gross amounts	$	212	$	106	$	527	$	306
Reinsurance ceded	(4)		—		(23)		—
Net other policy revenue	$	208	$	106	$	504	$	306

Policyholder benefits paid and claims incurred:
Gross amounts	$	1,183	$	928	$	3,771	$	2,957
Reinsurance ceded	(337)		(211)		(809)		(551)
Net benefits paid and claims incurred	$	846	$	717	$	2,962	$	2,406

Change in fair value of market risk benefits:
Gross amounts	$	110	$	(27)	$	296	$	(41)
Reinsurance ceded	24		13		(4)		20
Net change in fair value of market risk benefits	$	134	$	(14)	$	292	$	(21)

Interest sensitive contract benefits:
Gross amounts	$	629	$	238	$	1,394	$	603
Reinsurance ceded	(106)		(105)		(326)		(265)
Net interest sensitive contract benefits	$	523	$	133	$	1,068	$	338

The following summarizes our life and annuity reinsurance treaties and related recoverable (in millions):

Reinsurance
Recoverable

Agreement Type

Products Covered

September 30, 2024

(Dollars in millions)

Principal Reinsurers:

EquiTrust Life Insurance Company

237

Coinsurance

Certain Fixed Index and Fixed Rate Annuities

Athene Life Re Ltd.

1,924

Coinsurance Funds Withheld, Modified Coinsurance

Certain Fixed Annuities and Multi-Year Guaranteed Annuities

North End Re (Cayman) SPC

8,010

Coinsurance Funds Withheld, Modified Coinsurance

Certain Fixed Annuities

AeBe ISA LTD

4,333

Coinsurance Funds Withheld, Coinsurance

Certain Fixed Index and Fixed Rate Annuities

Reinsurance Group of America Inc. (RGA)

3,406

Coinsurance

Certain Term, Whole, Indexed Universal, Universal, and Universal with Secondary Guarantee Life Insurance Policies

17,910

Below is a table showing a summary of the impact of the reinsurance agreement:


			September 30, 2024
			(Dollars in millions)
Total assets			$	8,020
Total liabilities			5,660

	Three Months Ended September 30, 2024		Nine Months Ended September 30, 2024
	(Dollars in millions)
Effect of reinsurance agreement on net income (loss)	$	(138)	$	(216)