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Future Policy Benefits
 12 Months Ended
Dec. 31, 2024
Insurance [Abstract]  
Future Policy Benefits
17. 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,
20242023
(Dollars in millions)
Future policy benefits:
Annuities$5,532 $2,213 
Life Insurance1,816 1,895 
Deferred profit liability:
Annuities81 64 
Life Insurance76 66 
Other contracts and VOBA liability1,665 1,870 
Total future policy benefits$9,170 $6,108 
Future Policy Benefits
The balances and changes in the liability for future policy benefits are as follows:
Year Ended December 31, 2024
Successor
AnnuitiesLife
Insurance		Total
(Dollars in millions)
Present Value of Expected Net Premiums:
Balance, beginning of period$— $3,145 $3,145 
Beginning balance at original discount rate— 3,254 3,254 
Effect of changes in cash flow assumptions (1) — (245)(245)
Effect of actual variances from expected experience11 (343)(332)
Adjusted beginning of period balance11 2,666 2,677 
Acquisition from business combination— — — 
Issuances1,970 48 2,018 
Interest accrual11 112 123 
Net premiums collected(1,992)(320)(2,312)
Derecognitions (lapses and withdrawals)— 1 1 
Ending balance at original discount rate— 2,507 2,507 
Effect of changes in discount rate assumptions— (154)(154)
Balance, end of period$— $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 rate2,217 5,277 7,494 
Effect of changes in cash flow assumptions1 (236)(235)
Effect of actual variances from expected experience(5)(369)(374)
Adjusted beginning of period balance2,213 4,672 6,885 
Acquisition of business combination311 — 311 
Issuances3,289 49 3,338 
Interest accrual168 190 358 
Benefit payments(336)(311)(647)
Derecognitions (lapses and withdrawals)23 1 24 
Foreign currency translation— — — 
Ending balance at original discount rate5,668 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 $6,048 
Weighted-average liability duration of future policy benefits (years)9 years15 years
Weighted average interest accretion rate5.23 %4.75 %
Weighted average current discount rate5.53 %5.83 %
Year Ended December 31, 2023
Successor
AnnuitiesLife
Insurance		Total
(Dollars in millions)
Present Value of Expected Net Premiums:
Balance, beginning of period$— $3,520 $3,520 
Beginning balance at original discount rate— 3,826 3,826 
Effect of changes in cash flow assumptions (1) — (353)(353)
Effect of actual variances from expected experience2 (59)(57)
Adjusted beginning of period balance2 3,414 3,416 
Acquisition from business combination— — — 
Issuances984 90 1,074 
Interest accrual8 121 129 
Net premiums collected(995)(373)(1,368)
Derecognitions (lapses and withdrawals)1 2 3 
Foreign currency translation— — — 
Ending balance at original discount rate— 3,254 3,254 
Effect of changes in discount rate assumptions— (109)(109)
Balance, end of period$— $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 rate1,368 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 balance1,342 5,454 6,796 
Acquisition of business combination— — — 
Issuances988 89 1,077 
Interest accrual73 188 261 
Benefit payments(189)(456)(645)
Derecognitions (lapses and withdrawals)3 2 5 
Foreign currency translation— — — 
Ending balance at original discount rate2,217 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 $4,063 
Weighted-average liability duration of future policy benefits (years)8 years16 years
Weighted average interest accretion rate4.94 %4.60 %
Weighted average current discount rate4.88 %5.03 %
Period From May 25, 2022 to December 31, 2022
Successor
AnnuitiesLife
Insurance		Total
(Dollars in millions)
Present Value of Expected Net Premiums:
Balance, beginning of period$— $3,844 $3,844 
Beginning balance at original discount rate— 3,844 3,844 
Effect of changes in cash flow assumptions (1) — (4)(4)
Effect of actual variances from expected experience3 (15)(12)
Adjusted beginning of period balance3 3,825 3,828 
Acquisition from business combination— — — 
Issuances13 155 168 
Interest accrual— 53 53 
Net premiums collected(16)(207)(223)
Derecognitions (lapses and withdrawals)— — — 
Foreign currency translation— — — 
Ending balance at original discount rate— 3,826 3,826 
Effect of changes in discount rate assumptions— (306)(306)
Balance, end of period$— $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 rate1,432 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 balance1,431 5,827 7,258 
Acquisition of business combination— — — 
Issuances13 155 168 
Interest accrual19 80 99 
Benefit payments(95)(187)(282)
Derecognitions (lapses and withdrawals)— — — 
Foreign currency translation— — — 
Ending balance at original discount rate1,368 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 years16 years
Weighted average interest accretion rate4.40 %4.50 %
Weighted average current discount rate5.20 %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.
For the year ended December 31, 2023, the Company recognized liability remeasurement gains of $3 million, from the net effect of the changes in cash flow assumptions, which were included in “Policyholder benefits and claims incurred” in the Consolidated Statements of Operations.
For the period from May 25, 2022 to December 31, 2022, the Company recognized liability remeasurement losses of $1 million, from the net effect of the changes in cash flow assumptions, which were included in “Policyholder benefits and claims incurred” in the Consolidated Statements of Operations.
The amounts of undiscounted and discounted expected gross premiums and future benefit payments follow:
December 31,
20242023
UndiscountedDiscountedUndiscountedDiscounted
(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 payments8,819 4,169 10,353 5,040 
Expected future gross premiums5,669 3,356 7,541 4,328 
Total
Expected future benefit payments18,672 9,674 13,819 7,253 
Expected future gross premiums5,669 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,
202420232022
(Dollars in millions)
Annuities$3,299 $1,027 $18 
Life Insurance436 452 265 
Interest Expense
Successor
Year Ended December 31,Period From
May 25 to
December 31,
202420232022
(Dollars in millions)
Annuities$157 $83 $19 
Life Insurance78 95 27 
20. Liability For Unpaid Claims and Claim Adjustment Expenses
The liability for unpaid claims and claim adjustment expenses (“unpaid claims”) for property and casualty insurance is included in “Policy and contract claims” in the Consolidated Statements of Financial Position and is the amount estimated for incurred but not reported (“IBNR”) claims and claims that have been reported but not settled (“case reserves”), as well as associated claim adjustment expenses.
Information regarding the liability for unpaid claims is shown below:
Successor
Predecessor
Year Ended December 31,Period From
May 25 to
December 31,		Period From
January 1 to
May 24,
2024202320222022
(Dollars in millions)
Policy and contract claims, beginning$1,870 $1,786 $1,496 $1,455 
Less: Unpaid claims balance, beginning – long-duration213 218 — — 
Gross unpaid claims balance, beginning – short-duration1,657 1,568 1,496 1,455 
Less: Reinsurance recoverables, beginning302 305 281 288 
Net unpaid claims balance, beginning – short-duration1,355 1,263 1,215 1,167 
Acquisition from business combination, net of reinsurance1 — — — 
Add: incurred related to:
Current accident year1,388 1,605 830 562 
Prior accident years(46)(81)(31)(21)
Total incurred claims1,342 1,524 799 541 
Less: paid claims related to:
Current accident year787 951 554 225 
Prior accident years573 481 197 268 
Total paid claims1,360 1,432 751 493 
Net unpaid claims balance, ending – short-duration1,338 1,355 1,263 1,215 
Add: Foreign currency translation and other— — — — 
Add: Reinsurance recoverables, ending288 302 305 281 
Gross unpaid claims balance, ending – short-duration1,626 1,657 1,568 1,496 
Add: Unpaid claims balance, ending – long duration241 213 218 — 
Policy and contract claims, ending$1,867 $1,870 $1,786 $1,496 
The estimates for ultimate incurred claims attributable to insured events of prior years decreased by $46 million and decreased by $81 million, respectively, for the year ended December 31, 2024 and 2023. For the period from May 25, 2022 to December 31, 2022, and the Predecessor period from January 1, 2022 to May 24, 2022, the estimates for ultimate incurred claims attributable to insured events of prior years decreased by $31 million and decreased by $21 million, respectively. The favorable development in 2024 was a reflection of lower-than-anticipated losses arising from commercial other, business owners, and commercial auto lines of business. The favorable development in 2023 was a reflection of lower-than-anticipated losses arising from agribusiness, business owners, commercial auto, and commercial other lines of business. The favorable development for the period from May 25, 2022 to December 31, 2022 was a reflection of lower-than-anticipated settlement of losses emerging from commercial automotive, agribusiness, commercial business owner, and guaranteed asset protection waiver lines of business. The favorable development for the Predecessor period from January 1, 2022 to May 24, 2022 was a reflection of lower liability claim settlement costs emerging primarily from the liability line of business, including personal and commercial auto, agribusiness and commercial business owner businesses.
Claims and Claim Adjustment Expenses
The claims development tables as of December 31, 2024 are presented separately for each of the following major property and casualty lines of business:
•Liability – includes a broad range of primary and excess casualty products, such as specialty casualty, construction defect, general liability, commercial multi-peril, workers compensation, product liability, environmental liability and auto liability.
•Professional – provides both admitted and non-admitted policies for professional liability
•Property – offers policies protecting various personal and commercial properties from man-made and natural disasters, including farm and ranch buildings and building contents, as well as auto physical damages.
•Specialty – includes niche insurance coverages such as garage and inland marine and offer insurance programs and fronting solutions.
The reconciliation of the net incurred and paid claims development tables to the “Policy and contract claims” in the Consolidated Statements of Financial Position follows.
December 31, 2024
(Dollars in millions)
Net outstanding liabilities:
Liability$1,041 
Professional2 
Property198 
Specialty4 
Other short-duration lines not included in claims development table (1)19 
Total liabilities for unpaid claims and claim adjustment expenses, net of reinsurance1,264 
Reinsurance recoverables:
Liability187 
Professional— 
Property12 
Specialty70 
Other short-duration lines not included in claims development table (1)19 
Total reinsurance recoverables288 
Insurance lines other than short-duration241 
Unallocated claim adjustment expenses74 
Policy and contract claims$1,867 
(1)Certain lines of business were excluded from claims development tables and other disclosures that are applicable to short-duration contracts due to significantly longer claims development period (e.g., for claim coverages relating to accident years prior to the mid-1990s) or individually insignificant lines of business that do not fall under the Company’s four major property and casualty lines.
The amounts of incurred and paid claims are presented net of reinsurance. The tables present claims development and cumulative claim payments by incurred year and are only presented for significant short-duration product liabilities. The information about incurred and paid claims development prior to 2024 is presented as supplementary information. The cumulative number of reported claims is calculated on a per claim basis.
Liability Line of Business
Incurred Claims and Allocated Claim Adjustment Expenses, Net of ReinsuranceAs of December 31, 2024
Years Ended December 31,IBNR & Expected Development on Reported LossesCumulative Number of Reported Claims
(unaudited)
Accident Year2015201620172018201920202021202220232024
(Dollars in millions)
2015$355 $351 $345 $346 $340 $341 $341 $340 $339 $338 $2 43,968 
2016384 373 368 364 359 356 358 357 355 2 46,601 
2017415 406 398 394 395 393 391 391 5 53,691 
2018454 436 420 409 403 396 393 6 57,338 
2019483 469 456 443 435 428 13 52,054 
2020436 401 386 374 366 16 40,918 
2021498 488 477 467 35 45,025 
2022548 530 519 66 42,831 
2023603 599 107 52,816 
2024569 219 51,650 
Total$4,425 
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Years Ended December 31,
(unaudited)
Accident Year2015201620172018201920202021202220232024
(Dollars in millions)
2015$101 $186 $240 $280 $308 $318 $324 $327 $329 $332 
2016111 196 253 294 314 330 338 342 346 
2017116 233 290 322 344 359 366 374 
2018127 242 297 329 353 362 374 
2019133 256 310 350 378 395 
2020114 214 264 300 326 
2021140 272 330 375 
2022153 296 370 
2023189 351 
2024167 
Total3,410 
All outstanding liabilities before 2015, net of reinsurance26 
Liabilities for claims and claim adjustment expenses, net of reinsurance$1,041 
Professional Line of Business
Incurred Claims and Allocated Claim Adjustment Expenses, Net of ReinsuranceAs of December 31, 2024
Years Ended December 31,IBNR & Expected Development on Reported LossesCumulative Number of Reported Claims
(unaudited)
Accident Year2015201620172018201920202021202220232024
(Dollars in millions)
2015$1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $— 71 
20161 1 1 1 1 1 1 1 1 — 62 
20171 1 1 1 1 1 1 1 — 66 
20181 1 1 1 1 1 1 — 57 
20191 1 1 1 1 1 — 53 
20201 1 1 1 1 — 53 
20211 — 1 — — 46 
20221 1 1 — 30 
2023— 1 — 27 
20241 — 27 
Total$9 
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Years Ended December 31,
(unaudited)
Accident Year2015201620172018201920202021202220232024
(Dollars in millions)
2015$— $1 $1 $1 $1 $1 $1 $1 $1 $1 
2016— — 1 1 1 1 1 1 1 
2017— — — 1 1 1 1 1 
2018— 1 1 1 1 1 1 
20191 1 1 1 1 1 
20201 1 1 1 1 
2021— — — — 
20221 1 1 
2023— — 
2024— 
Total7 
All outstanding liabilities before 2015, net of reinsurance— 
Liabilities for claims and claim adjustment expenses, net of reinsurance$2 
Property Line of Business
Incurred Claims and Allocated Claim Adjustment Expenses, Net of ReinsuranceAs of December 31, 2024
Years Ended December 31,IBNR & Expected Development on Reported LossesCumulative Number of Reported Claims
(unaudited)
Accident Year2015201620172018201920202021202220232024
(Dollars in millions)
2015$328 $324 $323 $323 $322 $322 $322 $322 $322 $322 $— 77,339 
2016363 361 359 360 360 360 360 360 360 — 86,839 
2017393 399 398 395 394 394 394 394 — 106,058 
2018423 423 419 420 420 420 420 — 89,497 
2019425 418 415 416 416 416 — 86,169 
2020465 458 457 459 461 — 78,223 
2021510 515 514 513 1 78,859 
2022590 599 601 4 79,859 
2023726 716 13 91,921 
2024678 60 78,320 
Total$4,881 
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Years Ended December 31,
(unaudited)
Accident Year2015201620172018201920202021202220232024
(Dollars in millions)
2015$269 $313 $318 $321 $321 $322 $322 $322 $322 $322 
2016298 350 355 358 359 360 360 360 360 
2017321 384 391 393 393 393 393 394 
2018340 407 413 416 419 419 420 
2019341 402 409 413 415 416 
2020370 445 452 455 459 
2021411 500 508 510 
2022472 581 590 
2023568 685 
2024527 
Total4,683 
All outstanding liabilities before 2015, net of reinsurance— 
Liabilities for claims and claim adjustment expenses, net of reinsurance$198 
Specialty Line of Business
Incurred Claims and Allocated Claim Adjustment Expenses, Net of ReinsuranceAs of December 31, 2024
Years Ended December 31,IBNR & Expected Development on Reported LossesCumulative Number of Reported Claims
(unaudited)
Accident Year2015201620172018201920202021202220232024
(Dollars in millions)
2015$47 $46 $46 $46 $46 $46 $46 $46 $46 $46 $— 20,776 
201676 76 76 76 76 76 76 76 76 — 26,657 
201795 95 95 95 95 95 95 95 — 31,886 
201890 90 90 90 90 90 90 — 30,505 
201983 83 83 83 83 83 — 27,523 
202070 69 69 69 69 — 27,183 
202155 47 47 47 — 20,482 
202262 57 56 — 17,889 
2023106 108 1 23,351 
202414 1 19,247 
Total$684 
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
Years Ended December 31,
(unaudited)
Accident Year2015201620172018201920202021202220232024
(Dollars in millions)
2015$35 $46 $46 $46 $46 $46 $46 $46 $46 $46 
201660 76 76 76 76 76 76 76 76 
201774 95 95 95 95 95 95 95 
201873 90 90 90 90 90 90 
201961 83 83 83 83 83 
202048 68 69 69 69 
202136 46 47 47 
202241 55 56 
202378 105 
202413 
Total680 
All outstanding liabilities before 2015, net of reinsurance— 
Liabilities for claims and claim adjustment expenses, net of reinsurance$4 
For short-duration health insurance claims, the total of IBNR plus expected development on reported claims included in the liability for unpaid claims as of December 31, 2024 and 2023 were $7 million and $4 million, respectively.
Claims Duration
The following table provides supplementary information about the 10-year average annual percentage payout of incurred claims as of December 31, 2024:
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
As of December 31, 2024:
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Liability30.6 %27.5 %14.2 %9.8 %6.5 %3.5 %2.2 %1.4 %0.9 %3.4 %
Property80.7 %15.9 %1.5 %0.8 %0.4 %0.1 %0.1 %0.1 %— %0.6 %
Professional46.0 %23.8 %9.7 %2.9 %12.4 %1.0 %0.2 %0.5 %2.1 %1.4 %
Specialty76.3 %23.2 %0.2 %— %— %— %— %— %— %0.2 %