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Market Risk Benefits | 12 Months Ended
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Dec. 31, 2024
Insurance [Abstract] |
Market Risk Benefits | 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 rate annuities and fixed index annuities in the accumulation phase and non-variable group annuity contracts. The balances and changes in policyholders’ account balances are as follows:
|  | Year Ended December 31, 2024
Successor |  | Annuities |  | Life Insurance |  | Total
|  | (Dollars in millions)
Balance, beginning of period |  | $ | 14,694 |  |  | $ | 1,975 |  |  | $ | 16,669 |
Issuances |  | 11,647 |  |  | 62 |  |  | 11,709 |
Acquisition from business combination (b) |  | 61,296 |  |  | — |  |  | 61,296 |
Derecognition |  | — |  |  | — |  |  | — |
Premiums received |  | 67 |  |  | 423 |  |  | 490 |
Policy charges |  | (442) |  |  | (374) |  |  | (816) |
Surrenders and withdrawals |  | (8,958) |  |  | (66) |  |  | (9,024) |
Interest credited |  | 2,383 |  |  | 87 |  |  | 2,470 |
Benefit payments |  | (646) |  |  | — |  |  | (646) |
Other |  | 5 |  |  | — |  |  | 5 |
Balance, end of period |  | $ | 80,046 |  |  | $ | 2,107 |  |  | $ | 82,153 |
Reconciling items: |  |  |  |  |  |
Supplemental contracts |  | $ | 514 |  |  | $ | — |  |  | $ | 514 |
Variable universal life |  | — |  |  | 39 |  |  | 39 |
Variable deferred annuity |  | 7 |  |  | — |  |  | 7 |
Embedded derivative and other |  | 319 |  |  | 47 |  |  | 366 |
Total PAB balance, end of period |  | $ | 80,886 |  |  | $ | 2,193 |  |  | $ | 83,079 |
Weighted-average crediting rate |  | 4.19 | % |  | 4.21 | % |  |
Net amount at risk (a) |  | $ | 12,475 |  |  | $ | 38,733 |  |  |
Cash surrender value |  | $ | 73,832 |  |  | $ | 1,860 |  |  |
(a)Net amount at risk is defined as the current guarantee amount in excess of the current account balance. (b)Amount excludes $177 million of liabilities relating to supplemental contracts at acquisition date.
|  | Year Ended December 31, 2023
Successor |  | Annuities |  | Life Insurance |  | Total
|  | (Dollars in millions)
Balance, beginning of period |  | $ | 12,012 |  |  | $ | 1,899 |  |  | $ | 13,911 |
Issuances |  | 4,382 |  |  | 84 |  |  | 4,466 |
Acquisition from business combination |  | — |  |  | — |  |  | — |
Derecognition |  | — |  |  | — |  |  | — |
Premiums received |  | 34 |  |  | 399 |  |  | 433 |
Policy charges |  | (39) |  |  | (362) |  |  | (401) |
Surrenders and withdrawals |  | (2,132) |  |  | (110) |  |  | (2,242) |
Interest credited |  | 437 |  |  | 65 |  |  | 502 |
Benefit payments |  | — |  |  | — |  |  | — |
Net transfers from (to) separate accounts |  | — |  |  | — |  |  | — |
Other |  | — |  |  | — |  |  | — |
Balance, end of period |  | $ | 14,694 |  |  | $ | 1,975 |  |  | $ | 16,669 |
Reconciling items: |  |  |  |  |  |
Supplemental contracts |  | $ | 291 |  |  | $ | — |  |  | $ | 291 |
Variable universal life |  | — |  |  | 36 |  |  | 36 |
Variable deferred annuity |  | 8 |  |  | — |  |  | 8 |
Embedded derivative and other |  | 135 |  |  | 38 |  |  | 173 |
Total PAB balance, end of period |  | $ | 15,128 |  |  | $ | 2,049 |  |  | $ | 17,177 |
Weighted-average crediting rate |  | 3.27 | % |  | 3.34 | % |  |
Net amount at risk (a) |  | $ | 417 |  |  | $ | 38,365 |  |  |
Cash surrender value |  | $ | 15,000 |  |  | $ | 1,796 |  |  |
|  | Period From May 25, 2022 to December 31, 2022
Successor |  | Annuities |  | Life Insurance |  | Total
|  | (Dollars in millions)
Balance, beginning of period |  | $ | 11,603 |  |  | $ | 1,923 |  |  | $ | 13,526 |
Issuances |  | 1,054 |  |  | 45 |  |  | 1,099 |
Acquisition from business combination |  | — |  |  | — |  |  | — |
Derecognition |  | — |  |  | — |  |  | — |
Premiums received |  | 26 |  |  | 226 |  |  | 252 |
Policy charges |  | (10) |  |  | (273) |  |  | (283) |
Surrenders and withdrawals |  | (739) |  |  | (38) |  |  | (777) |
Interest credited |  | 67 |  |  | 23 |  |  | 90 |
Benefit payments |  | — |  |  | — |  |  | — |
Net transfers from (to) separate accounts |  | — |  |  | — |  |  | — |
Other |  | 11 |  |  | (7) |  |  | 4 |
Balance, end of period |  | $ | 12,012 |  |  | $ | 1,899 |  |  | $ | 13,911 |
Reconciling items: |  |  |  |  |  |
Supplemental contracts |  | $ | 305 |  |  | $ | — |  |  | $ | 305 |
Variable universal life |  | — |  |  | 43 |  |  | 43 |
Variable deferred annuity |  | 17 |  |  | — |  |  | 17 |
Embedded derivative and other |  | 29 |  |  | 5 |  |  | 34 |
Total PAB balance, end of period |  | $ | 12,363 |  |  | $ | 1,947 |  |  | $ | 14,310 |
Weighted-average crediting rate |  | 0.66 | % |  | 0.87 | % |  |
Net amount at risk (a) |  | $ | 313 |  |  | $ | 35,899 |  |  |
Cash surrender value |  | $ | 10,899 |  |  | $ | 1,694 |  |  |
(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.
| December 31, 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)
Annuities | 0% - 1% |  | $ | 3,963 |  |  | $ | 2,838 |  |  | $ | 3,768 |  |  | $ | 4,787 |  |  | $ | — |  |  | $ | 15,356 |
| 1% - 2% |  | 1,501 |  |  | 341 |  |  | 1,159 |  |  | 1,826 |  |  | — |  |  | 4,827 |
| 2% - 3% |  | 1,839 |  |  | 411 |  |  | 159 |  |  | 9,321 |  |  | — |  |  | 11,730 |
| Greater than 3% |  | 282 |  |  | 7 |  |  | 2 |  |  | 9 |  |  | — |  |  | 300 |
Products with either a fixed rate or no guaranteed minimum crediting rate |  | — |  |  | — |  |  | — |  |  | — |  |  | 47,833 |  |  | 47,833 |
| Total |  | $ | 7,585 |  |  | $ | 3,597 |  |  | $ | 5,088 |  |  | $ | 15,943 |  |  | $ | 47,833 |  |  | $ | 80,046 |
Life Insurance | 0% - 1% |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| 1% - 2% |  | 32 |  |  | 2 |  |  | 60 |  |  | 735 |  |  | — |  |  | 829 |
| 2% - 3% |  | 422 |  |  | — |  |  | 222 |  |  | — |  |  | — |  |  | 644 |
| Greater than 3% |  | 634 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 634 |
Products with either a fixed rate or no guaranteed minimum crediting rate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
| Total |  | $ | 1,088 |  |  | $ | 2 |  |  | $ | 282 |  |  | $ | 735 |  |  | $ | — |  |  | $ | 2,107 |
| 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)
Annuities | 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 Insurance | 0% - 1% |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| 1% - 2% |  | 168 |  |  | 2 |  |  | 140 |  |  | 371 |  |  | — |  |  | 681 |
| 2% - 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 assumptions review relating to its policyholders’ account balances. The Company updated assumptions relating to option budget, utilization and policyholder lapse rates which resulted in a $60 million increase in the policyholders’ account balances. 19. Market Risk Benefits Market Risk Benefits The net balance of market risk benefit (MRB) assets and liabilities of, and changes in guaranteed minimum withdrawal benefits associated with, annuity contracts is as follows:
| Successor |  |  |
| Year Ended December 31, |  | Period From May 25 to December 31, |  |  |
| 2024 |  | 2023 |  | 2022 |  |  |
| (Dollars in millions) |  |  |
Balance, beginning of period | $ | — |  |  | $ | 44 |  |  | $ | 172 |  |  |  |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 1 |  |  | 70 |  |  | 216 |  |  |  |
Acquisition from business combination (a) | 2,420 |  |  | — |  |  | — |  |  |  |
Issuances | 7 |  |  | 1 |  |  | 2 |  |  |  |
Interest accrual | 100 |  |  | 3 |  |  | 2 |  |  |  |
Attributed fees collected | 146 |  |  | 13 |  |  | 5 |  |  |  |
Benefits payments | — |  |  | — |  |  | — |  |  |  |
Effect of changes in interest rates | (112) |  |  | (117) |  |  | 49 |  |  |  |
Effect of changes in equity markets | 39 |  |  | 171 |  |  | — |  |  |  |
Effect of changes in equity index volatility | (97) |  |  | (46) |  |  | 46 |  |  |  |
Actual policyholder behavior different from expected behavior | — |  |  | (7) |  |  | — |  |  |  |
Effect of changes in future expected policyholder behavior | 2 |  |  | — |  |  | (4) |  |  |  |
Effect of changes in other future expected assumptions | 43 |  |  | (87) |  |  | (202) |  |  |  |
Balance, end of period, before effect of changes in the instrument-specific credit | 2,549 |  |  | 1 |  |  | 114 |  |  |  |
Effect of changes in the ending instrument-specific credit risk | 250 |  |  | (1) |  |  | (70) |  |  |  |
Balance, end of period | 2,799 |  |  | — |  |  | 44 |  |  |  |
Less: Reinsured MRB, end of period | (526) |  |  | — |  |  | — |  |  |  |
Balance, end of period, net of reinsurance | $ | 2,273 |  |  | $ | — |  |  | $ | 44 |  |  |  |
Net amount at risk (b) | $ | 12,051 |  |  | $ | — |  |  | $ | 453 |  |  |  |
Weighted average attained age of contract holders (years) | 71 years |  | 65 years |  | 64 years |  |  |
(a)See Note 16 - Acquisitions for the details of the measurement period adjustment to market risk benefits liability included within this amount which was assumed upon the Company’s acquisition of AEL in May 2024. (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:
| December 31, 2024
| Asset |  | Liability |  | Net Liability
| (Dollars in millions)
Market risk benefits | $ | 856 |  |  | $ | 3,655 |  |  | $ | 2,799 |
Total | $ | 856 |  |  | $ | 3,655 |  |  | $ | 2,799 |
| December 31, 2023
| Asset |  | Liability |  | Net Liability
| (Dollars in millions)
Market risk benefits | $ | 34 |  |  | $ | 34 |  |  | $ | — |
Total | $ | 34 |  |  | $ | 34 |  |  | $ | — |
25. Statutory Financial Information and Dividend Restrictions The Company’s insurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate, including the U.S. and Bermuda. Certain regulations include restrictions that limit the dividends or other distributions, such as loans or cash advances, available to stockholders without prior approval of the insurance regulatory authorities. The differences between financial statements prepared for insurance regulatory authorities and GAAP financial statements vary by jurisdiction. U.S. Statutory Requirements The Company’s U.S. insurance subsidiaries prepare financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of each subsidiary's state of domicile, which include certain components of the National Association of Insurance Commissioners ("NAIC") Statutory Accounting Principles ("SAP"). NAIC SAP is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting practices continue to be established by individual state laws and permitted practices. Modifications by the various state insurance departments may impact the statutory capital and surplus of our insurance subsidiaries. Statutory accounting differs from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefits liabilities using different actuarial assumptions, and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. Our U.S. insurance subsidiaries are subject to certain Risk Based Capital (“RBC”) requirements as defined by the National Association of Insurance Commissioners ("NAIC"). RBC requirements require a certain amount of capital and surplus to be maintained based upon various risk factors of the insurance company. Our insurance subsidiaries met the minimum regulatory requirements. Bermuda Statutory Requirements The Company’s Bermuda-domiciled insurance subsidiary, Freestone, is licensed by the Bermuda Monetary Authority (“BMA”). AEL Re Bermuda was a licensed Bermuda-domiciled insurance subsidiary until its deregistration, effective December 31, 2024, following the recapture of the North End Re reinsurance treaty. Freestone prepares statutory financial statements that are generally equivalent to GAAP financial statements, with the exception of prudential filters, which include adjustments to eliminate assets non-admissible for solvency purposes, and permitted practices granted by the BMA. Freestone is subject to the Insurance Act 1978, as amended (the “Bermuda Insurance Act”). Under the Bermuda Insurance Act, Freestone is required to maintain minimum statutory capital and surplus equal to the greater of a minimum solvency margin and the enhanced capital requirement as determined by the BMA. Freestone met the minimum solvency and minimum liquidity regulatory requirements, which include the Enhanced Capital Requirement (“ECR”), calculated based on the Bermuda Solvency Capital Requirement (“BSCR”) model, which is a risk-based model that takes into account the risk characteristics of different aspects of the insurance company’s business. Statutory Financial Information The statutory capital and surplus and statutory net income (loss) of our primary life insurance and property and casualty insurance entities in accordance with statutory accounting practices are shown below:
| December 31,
| 2024 |  | 2023
| (Dollars in millions)
Statutory capital and surplus: |  |  |
American Equity Investment Life Insurance Company (1) | $ | 3,214 |  |  | $ | — |
American National’s U.S. life insurance entities (2) | 2,652 |  |  | 2,776 |
American National’s U.S. property and casualty insurance entities (3) | 1,741 |  |  | 1,702 |
| Successor |  |  |
| Year Ended December 31, |  |  |
| 2024 |  | 2023 |  | 2022 |  |  |
| (Dollars in millions)
Statutory net income (loss): |  |  |  |  |  |  |  |
American Equity Investment Life Insurance Company (1) | $ | (747) |  |  | $ | — |  |  | $ | — |  |  |  |
American National’s U.S. life insurance entities (2) | (185) |  |  | (355) |  |  | 354 |  |  |  |
American National’s U.S. property and casualty insurance entities (3) | 128 |  |  | (38) |  |  | 50 |  |  |  |
(1)American Equity Investment Life Insurance Company’s, statutory capital and surplus as of December 31, 2023 and statutory net income (loss) for the year ended December 31, 2023, the period from May 25, 2022 to December 31, 2022, and the Predecessor period from January 1, 2022 to May 24, 2022 are not provided as the Company acquired AEL on May 2, 2024. Statutory net income (loss) for the year ended December 31, 2024 presented above represent earnings reported to its regulator and are inclusive of earnings prior to the Company’s acquisition of AEL. (2)American National’s U.S. life insurance entities include American National Insurance Company, American National Life Insurance Company of New York, Garden State Life Insurance Company, and American National Life Insurance Company of Texas. (3)American National’s U.S. property and casualty insurance entities include American National Property and Casualty Company, American National General Insurance Company, American National Lloyd’s Insurance Company, American National County Mutual Insurance Company, Farm Family Casualty Insurance Company, and United Farm Family Insurance Company. Prescribed and Permitted Statutory Accounting Practices American Equity Investment Life Insurance Company (“AEILIC”) is domiciled in the State of Iowa and is regulated by the Iowa Insurance Division (“IID”). AEILIC uses certain statutory accounting practices prescribed by the IID. AEILIC uses a prescribed practice which allows for call option derivatives instruments hedging the interest credited on fixed indexed annuities to be recorded at amortized cost. The use of this prescribed practice resulted in lower statutory capital and surplus of $91 million as of December 31, 2024. AEILIC also uses a prescribed practice which defines the mortality table allowed for determining the minimum standard of valuation of reserve liabilities for annuities. The use of this prescribed practice resulted in higher statutory capital and surplus of $51 million as of December 31, 2024. The statutory capital and surplus of AEILIC would have remained above the authorized control level RBC had it not used these permitted and prescribed practices. AEILIC cedes certain lifetime income benefit rider payments in excess of the policyholder’s account balances to three subsidiaries in Vermont, AEL Re Vermont, AEL Re Vermont II and AEL Re Vermont III. The Vermont subsidiaries have been granted permitted practices from the Vermont Department to recognize as an admitted asset an excess of loss reinsurance agreement with a third party which reinsures the lifetime income benefit rider payments in excess of policyholder fund values upon exhaustion of a funds withheld account balance. The permitted practice increased the statutory capital of these Vermont entities by $5.3 billion at December 31, 2024. Without such permitted practices, the risk based capital at the Vermont entities would fall below the minimum regulatory requirements. American National had been granted a permitted practice from the Texas Department of Insurance to recognize an admitted asset related to the notional value of coverage defined in an excess of loss reinsurance agreement. This permitted practice was withdrawn in 2024. The permitted practice increased the statutory capital and surplus of American National by $548 million at December 31, 2023. The statutory capital and surplus of American National would have remained above authorized control level RBC had it not used the permitted practice. One of American National’s insurance subsidiaries has been granted a permitted practice from the Nebraska Department of Insurance to record as the valuation of its investment in a wholly-owned subsidiary that is the attorney-in-fact for a Texas domiciled insurer, the statutory capital and surplus of the Texas domiciled insurer. This permitted practice increased the statutory capital and surplus of American National Property And Casualty Company ("ANPAC") by $65 million and $71 million at December 31, 2024 and 2023, respectively. The statutory capital and surplus of both ANPAC and American National Lloyds Insurance Company would have remained above the authorized control level RBC had it not used the permitted practice. ANPAC redomesticated from Missouri to Nebraska in 2024. Statutory Dividend Restrictions The ability of the Company’s insurance subsidiaries to pay dividends, or other distributions, to their parent companies (and ultimately the Company) is subject to certain restrictions imposed by the jurisdictions of domicile that regulate these insurance subsidiaries, and each jurisdiction typically has calculations for the amount of dividends that an insurance company can pay without the prior approval of the insurance regulatory authorities. The following provides a summary of statutory restrictions on the payment of dividends for the Company’s insurance subsidiaries in various jurisdictions: U.S. insurance entities – Various state insurance laws restrict the amount that may be transferred to the parent company by its insurance subsidiaries in the form of dividends without prior approval of the insurance regulatory authorities. These restrictions are based, in part, on the prior year’s statutory income and surplus. In general, dividends up to specified levels are considered ordinary and may be paid without prior regulatory approval. Dividends in larger amounts, or extraordinary dividends, are subject to the approval by the insurance commissioner of the applicable state of domicile. The following outlines the ordinary dividend capacity of the Company’s primary insurance subsidiaries during 2025: •AEILIC - $321 million, •American National Insurance Company (“ANICO”) - $225 million; •American National Life Insurance Company of New York - $35 million; •ANPAC - $77 million, and •Farm Family Casualty Insurance Company $40 million. Bermuda insurance entities – Under the Bermuda Insurance Act, Bermuda insurance entities are generally prohibited from declaring or paying, in any financial year, dividends of more than 25% of its prior financial year’s total statutory capital and surplus unless it files with the BMA an affidavit signed by at least two directors and the principal representative in Bermuda stating that it will continue to meet its relevant margins.

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