Long duration insurance contracts (Tables)

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Summary of periodic payment annuity and life and health insurance benefits liabilities

We write periodic payment annuity and life and health insurance contracts. A summary of the impacts of adopting ASU 2018-12 on our periodic payment annuity and life and health insurance benefits liabilities as of the January 1, 2021 transition date follows in millions.

	Periodic payment annuities			Life and health			Total
Balance at December 31, 2020, as previously reported	$	10,974		$	10,642		$	21,616
Reclassifications to other policyholder liabilities		(286	)		(929	)		(1,215	)
Balance at December 31, 2020 after reclassifications		10,688			9,713			20,401
Change in discount rate assumptions		6,553			1,447			8,000
Change in cash flow assumptions		(117	)		552			435
Balance as of January 1, 2021	$	17,124		$	11,712		$	28,836

Summary of life, annuity and health insurance benefits liabilities

A summary of our life, annuity and health insurance benefits liabilities as of March 31, 2023 and 2022, disaggregated for our two primary product categories, periodic payment annuities and life and health insurance, follows (in millions). Other liabilities primarily consist of incurred-but-not-reported claims and claims in the course of settlement.

	March 31,
	2023		2022
Periodic payment annuities	$	11,174	$	13,867
Life and health		5,633		6,792
Other liabilities		3,130		3,524
	$	19,937	$	24,183

Summary of changes in discounted present values of expected future policy benefits and expected future net premiums

In this context, net premiums represent the portion of expected gross premiums that are required to provide for future policy benefits and variable expenses.

	Periodic payment annuities						Life and health
	2023			2022			2023			2022
Expected future policy benefits:
Balance at beginning of period	$	10,640		$	16,153		$	52,008		$	63,648
Balance at beginning of period at original discount rate		11,549			11,261			63,584			60,133
Impact of cash flow assumption changes		—			—			(1	)		486
Effect of actual from expected results		1			1			(519	)		90
Change in benefits, net		(116	)		43			(747	)		(517	)
Interest accrual		133			135			425			404
Foreign currency effect		19			(23	)		47			(167	)
Ending balance at original discount rate		11,586			11,417			62,789			60,429
Effect of changes in discount rate assumptions		(412	)		2,450			(12,169	)		(2,386	)
Expected future policy benefits at March 31	$	11,174		$	13,867		$	50,620		$	58,043
Expected future net premiums:
Balance at beginning of period							$	46,129		$	55,960
Balance at beginning of period at original discount rate								56,535			53,277
Impact of cash flow assumption changes								2			458
Effect of actual from expected results								(413	)		22
Change in premiums, net								(660	)		(357	)
Interest accrual								371			351
Foreign currency effect								47			(184	)
Ending balance at original discount rate								55,882			53,567
Effect of changes in discount rate assumptions								(10,895	)		(2,316	)
Expected future net premiums at March 31							$	44,987		$	51,251
Liability for future policy benefits at March 31	$	11,174		$	13,867		$	5,633		$	6,792
Reinsurance recoverables		—			—			(1,565	)		(1,857	)
Liability for future policy benefits at March 31,   net of reinsurance recoverables	$	11,174		$	13,867		$	4,068		$	4,935

Summary of undiscounted and discounted expected future gross premiums to be collected and undiscounted expected future benefits for periodic payment annuities and life and health insurance

The undiscounted and discounted expected future gross premiums to be collected and undiscounted expected future benefits for periodic payment annuities and life and health insurance as of March 31, 2023 and 2022 are summarized below (in millions).

	Undiscounted expected future gross premiums				Discounted expected future gross premiums				Undiscounted expected future benefits
	2023		2022		2023		2022		2023		2022
Periodic payment annuities	$	—	$	—	$	—	$	—	$	31,244	$	30,647
Life and health		107,831		105,433		64,421		63,904		102,881		100,529

Summary of gross premiums earned and interest expense

Gross premiums earned on long duration contracts are included in insurance premiums earned and interest expense associated with long duration insurance contracts is included as a component of life, annuity and health benefits expenses in our Consolidated Statements of Earnings. Gross premiums earned and interest expense for the first three months of 2023 and 2022 were as follows (in millions).

	Gross Premiums				Interest Expense
	2023		2022		2023		2022
Periodic payment annuities	$	—	$	169	$	133	$	135
Life and health		1,004		1,143		54		53

Summary of weighted average current discount rates and interest accretion rates

The weighted average current discount rates and interest accretion rates established at contract inception for the periodic payment annuities and life and health insurance are summarized below.

	March 31,
	2023			2022
Periodic payment annuities
Weighted average discount rate		5.0	%		3.6	%
Weighted average accretion rate		4.8	%		4.9	%
Weighted average duration (in years)	18			20
Life and health
Weighted average discount rate		4.9	%		3.4	%
Weighted average accretion rate		3.2	%		3.5	%
Weighted average duration (in years)	14			14