v3.24.2.u1
Policyholder Contract Deposits and Other Policyholder Funds
 6 Months Ended
Jun. 30, 2024
Insurance [Abstract]  
Policyholder Contract Deposits and Other Policyholder Funds
13. Policyholder Contract Deposits and Other Policyholder Funds
POLICYHOLDER CONTRACT DEPOSITS
The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited, less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues. They are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included as Policy fees in revenues.
In addition to liabilities for universal life, fixed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, policyholder contract deposits also include our liability for (i) index features accounted for as embedded derivatives at fair value, (ii) annuities issued in a structured settlement arrangement with no life contingency and (iii) certain contracts we have elected to account for at fair value. Changes in the fair value of the embedded derivatives related to policy index features and the fair value of derivatives hedging these liabilities are recognized in realized gains and losses.
For additional information on index credits accounted for as embedded derivatives, see Note 4.
Under a funding agreement-backed notes issuance program, an unaffiliated, non-consolidated statutory trust issues medium-term notes to investors, which are secured by funding agreements issued to the trust by one of our subsidiaries through our Institutional Markets business.
The following table presents the balances and changes in Policyholder contract deposits account balances(a):
Individual
Retirement		Group
Retirement		Life
Insurance		Institutional
Markets
Corporate and other
Total
(in millions, except for average crediting rate)
Six Months Ended June 30, 2024
Policyholder contract deposits account balance, beginning of year$94,896 $41,299 $10,231 $13,649 $3,333 $163,408 
Deposits11,696 2,637 816 2,682 21 17,852 
Policy charges(360)(250)(753)(34)(29)(1,426)
Surrenders and withdrawals(8,902)(4,859)(148)(53)(39)(14,001)
Benefit payments(1,422)(993)(153)(1,028)(143)(3,739)
Net transfers from (to) separate account2,570 2,026 9 — — 4,605 
Interest credited1,670 611 243 320 80 2,924 
Other1 (207)17 201 (1)11 
Policyholder contract deposits account balance, end of period100,149 40,264 10,262 15,737 3,222 169,634 
Other reconciling items(b)
(1,286)(212)161 27 — (1,310)
Policyholder contract deposits$98,863 $40,052 $10,423 $15,764 $3,222 $168,324 
Weighted average crediting rate2.84 %3.08 %4.43 %4.45 %4.98 %
Cash surrender value(c)
$93,131 $39,262 $9,068 $2,596 $1,666 $145,723 
Six Months Ended June 30, 2023
Policyholder contract deposits account balance, beginning of year$89,554 $43,395 $10,224 $11,734 $3,587 $158,494 
Deposits8,898 2,597 809 1,608 22 13,934 
Policy charges(462)(238)(764)(34)(31)(1,529)
Surrenders and withdrawals(6,585)(3,979)(122)(421)(42)(11,149)
Benefit payments(2,012)(1,080)(100)(283)(171)(3,646)
Net transfers from (to) separate account1,637 1,221 — 473 — 3,331 
Interest credited863 554 188 218 85 1,908 
Other(3)4 (32)(1)8 (24)
Policyholder contract deposits account balance, end of period
91,890 42,474 10,203 13,294 3,458 161,319 
Other reconciling items(b)
(1,598)(254)135 42 — (1,675)
Policyholder contract deposits$90,292 $42,220 $10,338 $13,336 $3,458 $159,644 
Weighted average crediting rate2.59 %2.84 %4.30 %3.54 %4.95 %
Cash surrender value(c)
$85,417 $41,550 $8,976 $2,555 $1,762 $140,260 
(a)Transactions between the general account and the separate account are presented in this table on a gross basis (e.g., a policyholder's funds are initially deposited into the general account and then simultaneously transferred to the separate account), and thus, did not impact the ending balance of policyholder contract deposits.
(b)Reconciling items principally relate to MRBs that are bifurcated and reported separately, net of embedded derivatives that are recorded in policyholder contract deposits.
(c)Cash surrender value is related to the portion of policyholder contract deposits that have a defined cash surrender value (e.g. GICs do not have a cash surrender value).
For information related to net amount at risk, refer to the table that presents the balances of and changes in MRBs in Note 14.
The following table presents Policyholder contract deposits account balance 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:
June 30, 2024At Guaranteed Minimum1 Basis Point - 50 Basis Points AboveMore than 50 Basis Points Above Minimum GuaranteeTotal
(in millions, except percentage of total)
Individual RetirementRange of Guaranteed Minimum Credited Rate
<=1%
$6,010 $1,794 $31,449 $39,253 
> 1% - 2%
3,380 21 1,262 4,663 
> 2% - 3%
7,367 12 1,898 9,277 
> 3% - 4%
6,114 34 5 6,153 
> 4% - 5%
418 — 4 422 
> 5%
32 2 3 37 
Total$23,321 $1,863 $34,621 $59,805 
Group RetirementRange of Guaranteed Minimum Credited Rate
<=1%
$2,103 $1,841 $8,062 $12,006 
> 1% - 2%
3,449 781 933 5,163 
> 2% - 3%
11,277 272 113 11,662 
> 3% - 4%
588 — — 588 
> 4% - 5%
6,503 — — 6,503 
> 5%
140 — — 140 
Total$24,060 $2,894 $9,108 $36,062 
Life InsuranceRange of Guaranteed Minimum Credited Rate
<=1%
$— $— $— $— 
> 1% - 2%
— 109 367 476 
> 2% - 3%
9 623 1,299 1,931 
> 3% - 4%
1,179 479 7 1,665 
> 4% - 5%
2,785 — — 2,785 
> 5%
212 — — 212 
Total$4,185 $1,211 $1,673 $7,069 
Total*$51,566 $5,968 $45,402 $102,936 
Percentage of total50%6%44%100%
June 30, 2023At Guaranteed Minimum
1 Basis Point - 50 Basis Points Above
More than 50 Basis Points Above Minimum Guarantee
Total
(in millions, except percentage of total)
Individual RetirementRange of Guaranteed Minimum Credited Rate
<=1%
$7,044 $2,390 $23,797 $33,231 
> 1% - 2%
4,151 23 2,067 6,241 
> 2% - 3%
8,831 11 732 9,574 
> 3% - 4%
7,122 39 6 7,167 
> 4% - 5%
446 — 4 450 
> 5%
32 — 4 36 
Total$27,626 $2,463 $26,610 $56,699 
Group RetirementRange of Guaranteed Minimum Credited Rate
<=1%
$2,018 $2,574 $6,382 $10,974 
> 1% - 2%
4,050 1,624 391 6,065 
> 2% - 3%
13,123 89 62 13,274 
> 3% - 4%
651 — — 651 
> 4% - 5%
6,799 — — 6,799 
> 5%
151 — — 151 
Total$26,792 $4,287 $6,835 $37,914 
Life InsuranceRange of Guaranteed Minimum Credited Rate
<=1%
$— $— $— $— 
> 1% - 2%
— 131 350 481 
> 2% - 3%
10 872 1,083 1,965 
> 3% - 4%
1,190 322 201 1,713 
> 4% - 5%
2,909 — — 2,909 
> 5%
221 — — 221 
Total$4,330 $1,325 $1,634 $7,289 
Total*$58,748 $8,075 $35,079 $101,902 
Percentage of total58%8%34%100%
*Excludes policyholder contract deposits account balances that are not subject to guaranteed minimum crediting rates.
OTHER POLICYHOLDER FUNDS
Other policyholder funds include unearned revenue reserve (“URR”), consisting of front-end loads on investment-oriented contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. Amortization of URR is recorded in Policy fees.
URR for investment-oriented contracts are generally deferred and amortized into income using the same assumptions and factors used to amortize DAC (i.e., on a constant level basis).
The following table presents a rollforward of the unearned revenue reserve for the six months ended June 30, 2024 and 2023:
Life
Insurance		Institutional
Markets		Corporate and OtherTotal
(in millions)
Six Months Ended June 30, 2024
Balance, beginning of year$1,770 $1 $94 $1,865 
Revenue deferred80 — — 80 
Amortization(56)— (5)(61)
Balance, end of period$1,794 $1 $89 $1,884 
Other reconciling items*969 
Other policyholder funds$2,853 
Six Months Ended June 30, 2023
Balance, beginning of year$1,727 $2 $105 $1,834 
Revenue deferred76 — — 76 
Amortization(55)(1)(5)(61)
Balance, end of period$1,748 $1 $100 $1,849 
Other reconciling items*1,042 
Other policyholder funds$2,891 
*Other reconciling items include policyholders' dividend accumulations, provisions for future dividends to participating policyholders, dividends to policyholders and any similar items.