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v3.25.1

Future Policy Benefits (Tables) | 12 Months Ended
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Dec. 31, 2024
Insurance [Abstract] |
Schedule of Changes in the Liability for Future Policy Benefits | The reconciliation of the balances described in the table below to the “Future policy benefits” in the Consolidated Statements of Financial Position is as follows.
| December 31,
| 2024 |  | 2023
| (Dollars in millions)
Future policy benefits: |  |  |
Annuities | $ | 5,532 |  |  | $ | 2,213 |
Life Insurance | 1,816 |  |  | 1,895 |
Deferred profit liability: |  |  |
Annuities | 81 |  |  | 64 |
Life Insurance | 76 |  |  | 66 |
Other contracts and VOBA liability | 1,665 |  |  | 1,870 |
Total future policy benefits | $ | 9,170 |  |  | $ | 6,108 |
The balances and changes in the liability for future policy benefits are as follows:
|  | Year Ended December 31, 2024
Successor |  | Annuities |  | Life Insurance |  | Total
|  | (Dollars in millions)
Present Value of Expected Net Premiums: |  |  |  |  |  |
Balance, beginning of period |  | $ | — |  |  | $ | 3,145 |  |  | $ | 3,145 |
Beginning balance at original discount rate |  | — |  |  | 3,254 |  |  | 3,254 |
Effect of changes in cash flow assumptions (1) |  | — |  |  | (245) |  |  | (245) |
Effect of actual variances from expected experience |  | 11 |  |  | (343) |  |  | (332) |
Adjusted beginning of period balance |  | 11 |  |  | 2,666 |  |  | 2,677 |
Acquisition from business combination |  | — |  |  | — |  |  | — |
Issuances |  | 1,970 |  |  | 48 |  |  | 2,018 |
Interest accrual |  | 11 |  |  | 112 |  |  | 123 |
Net premiums collected |  | (1,992) |  |  | (320) |  |  | (2,312) |
Derecognitions (lapses and withdrawals) |  | — |  |  | 1 |  |  | 1 |
Ending balance at original discount rate |  | — |  |  | 2,507 |  |  | 2,507 |
Effect of changes in discount rate assumptions |  | — |  |  | (154) |  |  | (154) |
Balance, end of period |  | $ | — |  |  | $ | 2,353 |  |  | $ | 2,353 |
Present Value of Expected Future Policy Benefits: |  |  |  |  |  |
Balance, beginning of period |  | $ | 2,213 |  |  | $ | 5,040 |  |  | $ | 7,253 |
Beginning balance at original discount rate |  | 2,217 |  |  | 5,277 |  |  | 7,494 |
Effect of changes in cash flow assumptions |  | 1 |  |  | (236) |  |  | (235) |
Effect of actual variances from expected experience |  | (5) |  |  | (369) |  |  | (374) |
Adjusted beginning of period balance |  | 2,213 |  |  | 4,672 |  |  | 6,885 |
Acquisition of business combination |  | 311 |  |  | — |  |  | 311 |
Issuances |  | 3,289 |  |  | 49 |  |  | 3,338 |
Interest accrual |  | 168 |  |  | 190 |  |  | 358 |
Benefit payments |  | (336) |  |  | (311) |  |  | (647) |
Derecognitions (lapses and withdrawals) |  | 23 |  |  | 1 |  |  | 24 |
Foreign currency translation |  | — |  |  | — |  |  | — |
Ending balance at original discount rate |  | 5,668 |  |  | 4,601 |  |  | 10,269 |
Effect of changes in discount rate assumptions |  | (136) |  |  | (432) |  |  | (568) |
Effect of foreign currency translation on the effect of changes in discount rate assumptions |  | — |  |  | — |  |  | — |
Balance, end of period |  | $ | 5,532 |  |  | $ | 4,169 |  |  | $ | 9,701 |
Liability for future policy benefits |  | $ | 5,532 |  |  | $ | 1,816 |  |  | $ | 7,348 |
Less: Reinsurance recoverables |  | (2) |  |  | (1,298) |  |  | (1,300) |
Net liability for future policy benefits, after reinsurance recoverable |  | $ | 5,530 |  |  | $ | 518 |  |  | $ | 6,048 |
Weighted-average liability duration of future policy benefits (years) |  | 9 years |  | 15 years |  |
Weighted average interest accretion rate |  | 5.23 | % |  | 4.75 | % |  |
Weighted average current discount rate |  | 5.53 | % |  | 5.83 | % |  |
|  | Year Ended December 31, 2023
Successor |  | Annuities |  | Life Insurance |  | Total
|  | (Dollars in millions)
Present Value of Expected Net Premiums: |  |  |  |  |  |
Balance, beginning of period |  | $ | — |  |  | $ | 3,520 |  |  | $ | 3,520 |
Beginning balance at original discount rate |  | — |  |  | 3,826 |  |  | 3,826 |
Effect of changes in cash flow assumptions (1) |  | — |  |  | (353) |  |  | (353) |
Effect of actual variances from expected experience |  | 2 |  |  | (59) |  |  | (57) |
Adjusted beginning of period balance |  | 2 |  |  | 3,414 |  |  | 3,416 |
Acquisition from business combination |  | — |  |  | — |  |  | — |
Issuances |  | 984 |  |  | 90 |  |  | 1,074 |
Interest accrual |  | 8 |  |  | 121 |  |  | 129 |
Net premiums collected |  | (995) |  |  | (373) |  |  | (1,368) |
Derecognitions (lapses and withdrawals) |  | 1 |  |  | 2 |  |  | 3 |
Foreign currency translation |  | — |  |  | — |  |  | — |
Ending balance at original discount rate |  | — |  |  | 3,254 |  |  | 3,254 |
Effect of changes in discount rate assumptions |  | — |  |  | (109) |  |  | (109) |
Balance, end of period |  | $ | — |  |  | $ | 3,145 |  |  | $ | 3,145 |
Present Value of Expected Future Policy Benefits: |  |  |  |  |  |
Balance, beginning of period |  | $ | 1,288 |  |  | $ | 5,330 |  |  | $ | 6,618 |
Beginning balance at original discount rate |  | 1,368 |  |  | 5,875 |  |  | 7,243 |
Effect of changes in cash flow assumptions |  | (1) |  |  | (362) |  |  | (363) |
Effect of actual variances from expected experience |  | (25) |  |  | (59) |  |  | (84) |
Adjusted beginning of period balance |  | 1,342 |  |  | 5,454 |  |  | 6,796 |
Acquisition of business combination |  | — |  |  | — |  |  | — |
Issuances |  | 988 |  |  | 89 |  |  | 1,077 |
Interest accrual |  | 73 |  |  | 188 |  |  | 261 |
Benefit payments |  | (189) |  |  | (456) |  |  | (645) |
Derecognitions (lapses and withdrawals) |  | 3 |  |  | 2 |  |  | 5 |
Foreign currency translation |  | — |  |  | — |  |  | — |
Ending balance at original discount rate |  | 2,217 |  |  | 5,277 |  |  | 7,494 |
Effect of changes in discount rate assumptions |  | (4) |  |  | (237) |  |  | (241) |
Effect of foreign currency translation on the effect of changes in discount rate assumptions |  | — |  |  | — |  |  | — |
Balance, end of period |  | $ | 2,213 |  |  | $ | 5,040 |  |  | $ | 7,253 |
Liability for future policy benefits |  | $ | 2,213 |  |  | $ | 1,895 |  |  | $ | 4,108 |
Less: Reinsurance recoverables |  | — |  |  | (45) |  |  | (45) |
Net liability for future policy benefits, after reinsurance recoverable |  | $ | 2,213 |  |  | $ | 1,850 |  |  | $ | 4,063 |
Weighted-average liability duration of future policy benefits (years) |  | 8 years |  | 16 years |  |
Weighted average interest accretion rate |  | 4.94 | % |  | 4.60 | % |  |
Weighted average current discount rate |  | 4.88 | % |  | 5.03 | % |  |
|  | Period From May 25, 2022 to December 31, 2022
Successor |  | Annuities |  | Life Insurance |  | Total
|  | (Dollars in millions)
Present Value of Expected Net Premiums: |  |  |  |  |  |
Balance, beginning of period |  | $ | — |  |  | $ | 3,844 |  |  | $ | 3,844 |
Beginning balance at original discount rate |  | — |  |  | 3,844 |  |  | 3,844 |
Effect of changes in cash flow assumptions (1) |  | — |  |  | (4) |  |  | (4) |
Effect of actual variances from expected experience |  | 3 |  |  | (15) |  |  | (12) |
Adjusted beginning of period balance |  | 3 |  |  | 3,825 |  |  | 3,828 |
Acquisition from business combination |  | — |  |  | — |  |  | — |
Issuances |  | 13 |  |  | 155 |  |  | 168 |
Interest accrual |  | — |  |  | 53 |  |  | 53 |
Net premiums collected |  | (16) |  |  | (207) |  |  | (223) |
Derecognitions (lapses and withdrawals) |  | — |  |  | — |  |  | — |
Foreign currency translation |  | — |  |  | — |  |  | — |
Ending balance at original discount rate |  | — |  |  | 3,826 |  |  | 3,826 |
Effect of changes in discount rate assumptions |  | — |  |  | (306) |  |  | (306) |
Balance, end of period |  | $ | — |  |  | $ | 3,520 |  |  | $ | 3,520 |
Present Value of Expected Future Policy Benefits: |  |  |  |  |  |
Balance, beginning of period |  | $ | 1,432 |  |  | $ | 5,846 |  |  | $ | 7,278 |
Beginning balance at original discount rate |  | 1,432 |  |  | 5,846 |  |  | 7,278 |
Effect of changes in cash flow assumptions |  | — |  |  | (4) |  |  | (4) |
Effect of actual variances from expected experience |  | (1) |  |  | (15) |  |  | (16) |
Adjusted beginning of period balance |  | 1,431 |  |  | 5,827 |  |  | 7,258 |
Acquisition of business combination |  | — |  |  | — |  |  | — |
Issuances |  | 13 |  |  | 155 |  |  | 168 |
Interest accrual |  | 19 |  |  | 80 |  |  | 99 |
Benefit payments |  | (95) |  |  | (187) |  |  | (282) |
Derecognitions (lapses and withdrawals) |  | — |  |  | — |  |  | — |
Foreign currency translation |  | — |  |  | — |  |  | — |
Ending balance at original discount rate |  | 1,368 |  |  | 5,875 |  |  | 7,243 |
Effect of changes in discount rate assumptions |  | (80) |  |  | (545) |  |  | (625) |
Effect of foreign currency translation on the effect of changes in discount rate assumptions |  | — |  |  | — |  |  | — |
Balance, end of period |  | $ | 1,288 |  |  | $ | 5,330 |  |  | $ | 6,618 |
Liability for future policy benefits |  | $ | 1,288 |  |  | $ | 1,810 |  |  | $ | 3,098 |
Less: Reinsurance recoverables |  | — |  |  | (54) |  |  | (54) |
Net liability for future policy benefits, after reinsurance recoverable |  | $ | 1,288 |  |  | $ | 1,756 |  |  | $ | 3,044 |
Weighted-average liability duration of future policy benefits (years) |  | 8 years |  | 16 years |  |
Weighted average interest accretion rate |  | 4.40 | % |  | 4.50 | % |  |
Weighted average current discount rate |  | 5.20 | % |  | 5.40 | % |  |
(1)For the year ended December 31, 2024, the Company recognized liability remeasurement losses of $66 million, which were included in “Policyholder benefits and claims incurred” in the Consolidated Statements of Operations. The amounts include the effect of the Company’s annual assumption review which was conducted during the third quarter of 2024. The notable changes to cash flow assumptions resulted in (i) a decrease in the liability for future policy benefits related to annuity products driven by favorable mortality. The change in mortality resulted in an offsetting increase to the deferred profit liability; (ii) a decrease in the liability for future policy benefits for term life products primarily driven by favorable mortality and favorable updates to policyholder lapse behavior assumptions; and (iii) an increase in the future policy benefits liability for universal life products driven by unfavorable updates in policyholder lapse assumptions and unfavorable mortality. The amounts of undiscounted and discounted expected gross premiums and future benefit payments follow:
| December 31,
| 2024 |  | 2023
| Undiscounted |  | Discounted |  | Undiscounted |  | Discounted
| (Dollars in millions)
Annuities |  |  |  |  |  |  |
Expected future benefit payments | $ | 9,853 |  |  | $ | 5,505 |  |  | $ | 3,466 |  |  | $ | 2,213 |
Expected future gross premiums | — |  |  | — |  |  | — |  |  | — |
Life Insurance |  |  |  |  |  |  |
Expected future benefit payments | 8,819 |  |  | 4,169 |  |  | 10,353 |  |  | 5,040 |
Expected future gross premiums | 5,669 |  |  | 3,356 |  |  | 7,541 |  |  | 4,328 |
Total |  |  |  |  |  |  |
Expected future benefit payments | 18,672 |  |  | 9,674 |  |  | 13,819 |  |  | 7,253 |
Expected future gross premiums | 5,669 |  |  | 3,356 |  |  | 7,541 |  |  | 4,328 |
The amount of revenue and interest recognized in the Consolidated Statements of Operations follows:
| Gross Premiums or Assessments |  |  |
| Successor |  |  |
| Year Ended December 31, |  | Period From May 25 to December 31, |  |  |
| 2024 |  | 2023 |  | 2022 |  |  |
| (Dollars in millions) |  |  |
Annuities | $ | 3,299 |  |  | $ | 1,027 |  |  | $ | 18 |  |  |  |
Life Insurance | 436 |  |  | 452 |  |  | 265 |  |  |  |
| Interest Expense |  |  |
| Successor |  |  |
| Year Ended December 31, |  | Period From May 25 to December 31, |  |  |
| 2024 |  | 2023 |  | 2022 |  |  |
| (Dollars in millions) |  |  |
Annuities | $ | 157 |  |  | $ | 83 |  |  | $ | 19 |  |  |  |
Life Insurance | 78 |  |  | 95 |  |  | 27 |  |  |  |

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- Definition Tabular disclosure of beginning balance to ending balance for liability for future policy benefit, with separate presentation of expected future net premium and expected future benefit. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (g)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480016/944-40-65-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 55 -Paragraph 29E -Publisher FASB -URI https://asc.fasb.org/1943274/2147480046/944-40-55-29E Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480081/944-40-50-6 + Details
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