| Schedule of Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes |
The effects of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three and nine months ended September 30, 2024 and 2023 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended September 30, | | Nine months ended September 30, | | 2024 | | 2023 | | 2024 | | 2023 | | (In millions) | | Net Premiums Earned | | Net Benefits Incurred | | Net Premiums Earned | | Net Benefits Incurred | | Net Premiums Earned | | Net Benefits Incurred | | Net Premiums Earned | | Net Benefits Incurred | | Direct | $ | 363 | | | $ | 1,127 | | | $ | 508 | | | $ | 323 | | | $ | 1,340 | | | $ | 2,999 | | | $ | 1,319 | | | $ | 2,057 | | | | | | | | | | | | | | | | | | | Ceded | (23) | | | (32) | | | (26) | | | (31) | | | (71) | | | (135) | | | (79) | | | (136) | | | Net | $ | 340 | | | $ | 1,095 | | | $ | 482 | | | $ | 292 | | | $ | 1,269 | | | $ | 2,864 | | | $ | 1,240 | | | $ | 1,921 | |
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| Schedule of Reinsurance Recoverable |
The following summarizes our reinsurance recoverable as of September 30, 2024 and December 31, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Parent Company/
Principal Reinsurers | | Reinsurance Recoverable (a) | | Agreement Type | | Products
Covered | | Accounting | | | September 30, 2024 | | December 31, 2023 | | | | | | | | | | | | | | | | | | (In millions) | | | | | | | | Aspida Life Re Ltd | | $ | 7,543 | | | $ | 6,128 | | | Coinsurance Funds Withheld | | Certain MYGA (b) | | Deposit | | Somerset Reinsurance Ltd (c) | | 2,181 | | | 716 | | | Coinsurance Funds Withheld | | Certain MYGA (b) and deferred annuities | | Deposit | | | | | | | Coinsurance Funds Withheld | | Certain FIA | | Reinsurance | | Everlake Life Insurance Company | | 1,120 | | | 509 | | | Coinsurance (d) | | Certain MYGA (b) (d) | | Deposit | | Wilton Reassurance Company | | 1,073 | | | 1,092 | | | Coinsurance | | Block of traditional, IUL and UL (e) | | Reinsurance | | Other (f) | | 508 | | | 536 | | | | | | | | | Reinsurance recoverable, gross of allowance for credit losses | | 12,425 | | | 8,981 | | | | | | | | | Allowance for expected credit loss | | (21) | | | (21) | | | | | | | | | Reinsurance recoverable, net of allowance for credit losses | | $ | 12,404 | | | $ | 8,960 | | | | | | | | | | | | | | | | | | | | (a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies. | (b) The combined quota share flow reinsurance amongst all reinsurers for 2024 was 90% through May 31, 2024, decreased to 30% in June and July 2024, and increased to 90% in August and September 2024. As of December 31, 2023, the combined quota share flow reinsurance amongst all reinsurers was 90%. | | (c) The balance represents the total reinsurance recoverable for all reinsurance agreements with Somerset. | | (d) Reinsurance recoverable is collateralized by assets placed in a statutory comfort trust by the reinsurer and maintained for our sole benefit. | | (e) Also includes certain FGL Insurance life insurance policies that are subject to redundant reserves, reported on a statutory basis, under Regulation XXX and Guideline AXXX. | | (f) Represents all other reinsurers, with no single reinsurer having a carrying value in excess of 5% of total reinsurance recoverable. |
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