v3.24.3
Contractholder Funds (Tables)
 9 Months Ended
Sep. 30, 2024
Insurance [Abstract]  
Schedule of Balances and Changes in Contractholder Funds
The following tables summarize balances of and changes in contractholder funds’ account balances:
September 30, 2024
Indexed annuitiesFixed rate annuitiesUniversal LifeFABN (b)FHLB (b)
(Dollars in millions)
Balance, beginning of year$27,164 $13,443 $2,391 $2,613 $2,539 
Issuances4,829 4,476 157 599 1,803 
Premiums received85 1 361 — — 
Policy charges (a)(140)— (231)— — 
Surrenders and withdrawals(2,807)(1,184)(75)— — 
Benefit payments(368)(233)(13)(791)(1,576)
Interest credited488 476 108 51 89 
Other5 — — (1)(2)
Balance, end of period29,256 16,979 2,698 2,471 2,853 
Embedded derivative adjustment (c)790 — 119 — — 
Gross Liability, end of period30,046 16,979 2,817 2,471 2,853 
Less: Reinsurance410 10,471 883 — — 
Net Liability, after Reinsurance$29,636 $6,508 $1,934 $2,471 $2,853 
Weighted-average crediting rate2.33 %4.26 %5.84 %N/AN/A
Net amount at risk (d)N/AN/A$70,859 N/AN/A
Cash surrender value (e)$26,985 $15,815 $2,088 N/AN/A
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessment on the basis of the account balance.
(b) FABN and FHLB are considered funding agreements that are investment contracts, which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials.
(c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives.
(d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
(e) These amounts are gross of reinsurance.
December 31, 2023
Indexed annuitiesFixed rate annuitiesUniversal LifeFABN (b)FHLB (b)
(Dollars in millions)
Balance, beginning of year$24,766 $9,358 $2,112 $2,613 $1,982 
Issuances4,722 5,061 199 — 1,256 
Premiums received103 1 382 — — 
Policy charges (a)(182)— (261)— — 
Surrenders and withdrawals(2,005)(1,142)(90)— — 
Benefit payments(526)(240)(27)(53)(763)
Interest credited270 405 76 54 64 
Other16 — — (1)— 
Balance, end of period27,164 13,443 2,391 2,613 2,539 
Embedded derivative adjustment (c)243 — 84 — — 
Gross Liability, end of period27,407 13,443 2,475 2,613 2,539 
Less: Reinsurance17 7,520 894 — — 
Net Liability, after Reinsurance$27,390 $5,923 $1,581 $2,613 $2,539 
Weighted-average crediting rate1.40 %4.85 %3.44 %N/AN/A
Net amount at risk (d)N/AN/A$60,389 N/AN/A
Cash surrender value (e)$25,099 $12,505 $1,872 N/AN/A
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessment on the basis of the account balance.
(b) FABN and FHLB are considered funding agreements that are investment contracts, which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials.
(c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives.
(d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
(e) These amounts are gross of reinsurance.
Schedule of Reconciliation of Policyholder Account Balances to Statement of Financial Position
The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the accompanying unaudited Condensed Consolidated Balance Sheets:
September 30, 2024December 31, 2023
(In millions)
Indexed annuities$30,046 $27,407 
Fixed rate annuities16,979 13,443 
Immediate annuities292 311 
Universal life2,817 2,475 
Traditional life5 5 
Funding Agreement-FABN2,471 2,613 
FHLB2,853 2,539 
PRT5 5 
Total$55,468 $48,798 
Schedule of Policyholder Account Balance, Guaranteed Minimum Crediting Rate
The following tables present the 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:
September 30, 2024
Range of guaranteed minimum crediting rateAt Guaranteed Minimum
1 Basis Point-50 Basis Points Above
51 Basis Points-150 Basis Points Above
 Greater Than 150 Basis Points Above
 Total
Indexed Annuities(In millions)
0.00%-1.50%$23,095 $1,285 $502 $1,847 $26,729 
1.51%-2.50%700 1 460 1,046 2,207 
Greater than 2.50%317 2 — 1 320 
Total$24,112 $1,288 $962 $2,894 $29,256 
Fixed Rate Annuities
0.00%-1.50%$46 $21 $925 $13,855 $14,847 
1.51%-2.50%4 7 20 460 491 
Greater than 2.50%826 2 3 810 1,641 
Total$876 $30 $948 $15,125 $16,979 
Universal Life
0.00%-1.50%$2,303 $6 $— $22 $2,331 
Greater than 2.50%366 — 1 — 367 
Total$2,669 $6 $1 $22 $2,698 
December 31, 2023
Range of guaranteed minimum crediting rateAt Guaranteed Minimum
 1 Basis Point-50 Basis Points Above
51 Basis Points-150 Basis Points Above
 Greater Than 150 Basis Points Above
 Total
Indexed Annuities(In millions)
0.00%-1.50%$22,392 $1,444 $526 $1,953 $26,315 
1.51%-2.50%196 1 24 250 471 
Greater than 2.50%377 1 — — 378 
Total$22,965 $1,446 $550 $2,203 $27,164 
Fixed Rate Annuities
0.00%-1.50%$23 $25 $1,532 $10,271 $11,851 
1.51%-2.50%5 8 23 453 489 
Greater than 2.50%893 2 4 204 1,103 
Total$921 $35 $1,559 $10,928 $13,443 
Universal Life
0.00%-1.50%$1,987 $5 $— $21 $2,013 
Greater than 2.50%361 16 1 — 378 
Total$2,348 $21 $1 $21 $2,391