Future Contract Benefits

12 Months Ended

Dec. 31, 2024

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets:


	As of December 31,
	2024		2023
Payout Annuities (1)	$	2,009	$	2,085
Traditional Life (1)	3,774		3,841
Group Protection (2)	5,628		5,689
UL and Other (3)	16,062		15,000
Other Operations (4)	9,070		9,879
Other (5)	3,264		3,371
Total future contract benefits	$	39,807	$	39,864

(1) See LFPB below for further information.

(2) See “Liability for Future Claims” below for further information.

(3) See “Additional Liabilities for Other Insurance Benefits” below for further information.

(4) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($5.4 billion and $5.6 billion as of December 31, 2024 and 2023, respectively) and Swiss Re ($1.8 billion and $2.2 billion as of December 31, 2024 and 2023, respectively) that are excluded from the following tables.

(5) Represents other miscellaneous reserves that are not representative of long-duration contracts and are excluded from the following tables.

LFPB

The following table summarizes the balances of and changes in the present values of expected net premiums and LFPB (in millions, except years):


	As of or For the Year Ended December 31, 2024				As of or For the Year Ended December 31, 2023
	Payout Annuities		Traditional Life		Payout Annuities		Traditional Life

Present Value of Expected Net Premiums
Balance as of beginning-of-year	$	–	$	6,200	$	–	$	6,063
Less: Effect of cumulative changes in discount
rate assumptions	–		(148)		–		(582)
Beginning balance at original discount rate	–		6,348		–		6,645
Effect of changes in cash flow assumptions	–		28		–		(12)
Effect of actual variances from expected experience	–		(53)		–		(303)
Adjusted balance as of beginning-of-year	–		6,323		–		6,330
Issuances	–		360		–		579
Interest accrual	–		251		–		244
Net premiums collected	–		(785)		–		(804)
Flooring impact of LFPB	–		(1)		–		(1)
Ending balance at original discount rate	–		6,148		–		6,348
Effect of cumulative changes in discount rate assumptions	–		(275)		–		(148)
Balance as of end-of-year	$	–	$	5,873	$	–	$	6,200

Present Value of Expected LFPB
Balance as of beginning-of-year	$	2,085	$	10,041	$	2,004	$	9,572
Less: Effect of cumulative changes in discount
rate assumptions	(187)		(189)		(263)		(785)
Beginning balance at original discount rate (1)	2,272		10,230		2,267		10,357
Effect of changes in cash flow assumptions	–		(68)		–		(29)
Effect of actual variances from expected experience	2		(70)		1		(333)
Adjusted balance as of beginning-of-year	2,274		10,092		2,268		9,995
Issuances	102		361		109		580
Interest accrual	87		399		86		387
Benefit payments	(203)		(767)		(191)		(732)
Ending balance at original discount rate (1)	2,260		10,085		2,272		10,230
Effect of cumulative changes in discount rate assumptions	(251)		(438)		(187)		(189)
Balance as of end-of-year	$	2,009	$	9,647	$	2,085	$	10,041

Net balance as of end-of-year	$	2,009	$	3,774	$	2,085	$	3,841
Less: reinsurance recoverables	1,477		385		1,617		445
Net balance as of end-of-year, net of reinsurance	$	532	$	3,389	$	468	$	3,396

Weighted-average duration of future policyholder
benefit liability (years)	9		9		9		9

(1) Includes deferred profit liability within Payout Annuities of $62 million, $56 million and $38 million as of December 31, 2024, December 31, 2023 and December 31, 2022, respectively.

For the year ended December 31, 2024, Payout Annuities did not have a significant cash flow assumption impact to net income (loss) attributable to the annual assumption review, and Traditional Life had a favorable cash flow assumption impact from updates to mortality

assumptions, partially offset by an unfavorable impact from updates to policyholder behavior assumptions. For the year ended December 31, 2024, Payout Annuities and Traditional Life did not have any significantly different actual experience compared to expected.

For the year ended December 31, 2023, Payout Annuities did not have a significant cash flow assumption impact to net income (loss) attributable to the annual assumption review. For the year ended December 31, 2023, Traditional Life had a favorable cash flow assumption impact from updates to mortality assumptions, partially offset by an unfavorable impact from updates to policyholder lapse behavior assumptions. For the year ended December 31, 2023, Payout Annuities and Traditional Life did not have any significantly different actual experience compared to expected.

The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions):


	As of December 31, 2024				As of December 31, 2023
	Undiscounted		Discounted		Undiscounted		Discounted
Payout Annuities
Expected future gross premiums	$	–	$	–	$	–	$	–
Expected future benefit payments	3,428		2,009		3,483		2,085
Traditional Life
Expected future gross premiums	14,025		9,471		14,015		9,815
Expected future benefit payments (1)	14,319		9,647		13,894		10,041

(1) We refined the process for calculating undiscounted expected future benefit payments during 2024, which, if applied to 2023, would increase the prior year reported number by $681 million.

The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):


	For the Years Ended December 31,
	2024		2023		2022
Payout Annuities
Gross premiums	$	108	$	116	$	133
Interest accretion	87		86		84
Traditional Life
Gross premiums	1,251		1,252		1,211
Interest accretion	148		143		134

The following table summarizes the weighted-average interest rates:


	For the Years Ended December 31,
	2024		2023
Payout Annuities
Interest accretion rate	4.0	%	3.9	%
Current discount rate	5.4	%	4.9	%
Traditional Life
Interest accretion rate	5.0	%	5.0	%
Current discount rate	5.1	%	4.6	%

Liability for Future Claims

The following table summarizes the balances of and changes in liability for future claims (in millions, except years):


	Group Protection
	As of or For the Years Ended December 31,
	2024		2023
Balance as of beginning-of-year	$	5,689	$	5,462
Less: Effect of cumulative changes in discount
rate assumptions	(490)		(597)
Beginning balance at original discount rate	6,179		6,059
Effect of changes in cash flow assumptions	(2)		(27)
Effect of actual variances from expected experience	(345)		(261)
Adjusted beginning-of-year balance	5,832		5,771
New incidence	1,641		1,702
Interest	181		159
Benefit payments	(1,476)		(1,453)
Ending balance at original discount rate	6,178		6,179
Effect of cumulative changes in discount
rate assumptions	(550)		(490)
Balance as of end-of-year	5,628		5,689
Less: reinsurance recoverables	118		123
Balance as of end-of-year, net of reinsurance	$	5,510	$	5,566

Weighted-average duration of liability for future
claims (years)	5		5

For the year ended December 31, 2024, we did not have a significant cash flow assumption impact to net income (loss) attributable to the annual assumption review. For the year ended December 31, 2024, we experienced more favorable reported incidence and claim terminations than assumed.

For the year ended December 31, 2023, we had a favorable cash flow assumption impact to net income (loss) attributable to the annual assumption review from updates to long-term disability and life waiver claim termination rate assumptions, partially offset by unfavorable impacts from updates to long-term disability social security offset assumptions. For the year ended December 31, 2023, we experienced more favorable reported incidence and claim terminations than assumed.

The following table summarizes the discounted and undiscounted expected future benefit payments (in millions):


	As of December 31, 2024				As of December 31, 2023
	Undiscounted		Discounted		Undiscounted		Discounted
Group Protection
Expected future benefit payments	$	7,368	$	5,628	$	7,250	$	5,689


	For the Years Ended December 31,
	2024		2023		2022
Group Protection
Gross premiums	$	3,563	$	3,549	$	3,393
Interest accretion	181		159		141

The following table summarizes the weighted-average interest rates:


	For the Years Ended December 31,
	2024		2023
Group Protection
Interest accretion rate	3.3	%	3.0	%
Current discount rate	5.1	%	4.7	%

Additional Liabilities for Other Insurance Benefits

The following table summarizes the balances of and changes in additional liabilities for other insurance benefits (in millions, except years):


	UL and Other
	As of or For the Years Ended December 31,
	2024		2023
Balance as of beginning-of-year	$	15,000	$	14,818
Less: Effect of cumulative changes in shadow
balance in AOCI	(2,222)		(905)
Balance as of beginning-of-year, excluding
shadow balance in AOCI	17,222		15,723
Effect of changes in cash flow assumptions	244		173
Effect of actual variances from expected experience	289		(71)
Adjusted beginning-of-year balance	17,755		15,825

Interest accrual	863		775
Net assessments collected	1,168		1,210
Benefit payments	(1,051)		(588)
Balance as of end-of-year, excluding
shadow balance in AOCI	18,735		17,222
Effect of cumulative changes in shadow
balance in AOCI	(2,673)		(2,222)
Balance as of end-of-year	16,062		15,000
Less: reinsurance recoverables	5,211		4,708
Balance as of end-of-year, net of reinsurance	$	10,851	$	10,292

Weighted-average duration of additional liabilities
for other insurance benefits (years)	16		17

For the year ended December 31, 2024, we had an unfavorable cash flow assumption impact to net income (loss) attributable to the annual assumption review impacting reinsured blocks of MoneyGuard® business for updates to policyholder behavior and mortality assumptions that were partially offset by updates to capital market assumptions. For the year ended December 31, 2024, we had unfavorable actual mortality experience compared to expected on reinsured and retained business.

For the year ended December 31, 2023, we had an unfavorable cash flow assumption impact to net income (loss) attributable to the annual assumption review from updates to policyholder lapse behavior assumptions, partially offset by a favorable impact from updates to interest rate assumptions. For the year ended December 31, 2023, we did not have any significantly different actual experience compared to expected.

The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):


	For the Years Ended December 31,
	2024		2023		2022
UL and Other
Gross assessments	$	2,937	$	3,219	$	2,818
Interest accretion	863		775		626

The following table summarizes the weighted-average interest rates:


	For the Years Ended December 31,
	2024		2023
UL and Other
Interest accretion rate	5.4	%	5.3	%