Future Policy Benefits (Tables)

9 Months Ended

Sep. 30, 2024

The following tables present the balances and changes in the liability for future policy benefits and a reconciliation of the net liability for future policy benefits to the liability for future policy benefits in the Condensed Consolidated Balance Sheets:


	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Corporate and Other		Total
(in millions, except for liability durations)


Nine Months Ended September 30, 2024
Present value of expected net premiums
Balance, beginning of year	$	—	$	—	$	8,379	$	—	$	973	$	9,352
Effect of changes in discount rate assumptions (AOCI)	—		—		1,482		—		44		1,526
Reclassified to Liabilities held-for-sale	—		—		4,287		—		—		4,287
Beginning balance at original discount rate	—		—		14,148		—		1,017		15,165
Effect of changes in cash flow assumptions	—		—		(57)		—		(11)		(68)
Effect of actual variances from expected experience	—		—		4		—		(7)		(3)
Adjusted beginning of year balance	—		—		14,095		—		999		15,094
Issuances	—		—		733		—		—		733
Interest accrual	—		—		288		—		32		320
Net premium collected	—		—		(888)		—		(86)		(974)
Foreign exchange impact	—		—		(46)		—		—		(46)
Other	—		—		—		—		—		—
Dispositions	—		—		(5,108)		—		—		(5,108)
Ending balance at original discount rate	—		—		9,074		—		945		10,019
Effect of changes in discount rate assumptions (AOCI)	—		—		(463)		—		(28)		(491)
Balance, end of period	$	—	$	—	$	8,611	$	—	$	917	$	9,528

Present value of expected future policy benefits
Balance, beginning of year	$	1,353	$	217	$	17,531	$	18,482	$	20,654	$	58,237
Effect of changes in discount rate assumptions (AOCI)	132		(3)		2,745		1,906		437		5,217
Reclassified to Liabilities held-for-sale	—		—		5,119		—		—		5,119
Beginning balance at original discount rate	1,485		214		25,395		20,388		21,091		68,573
Effect of changes in cash flow assumptions(a)	—		—		(24)		(41)		(39)		(104)
Effect of actual variances from expected experience(a)	(27)		(2)		15		(8)		(19)		(41)
Adjusted beginning of year balance	1,458		212		25,386		20,339		21,033		68,428
Issuances	92		10		721		2,105		5		2,933
Interest accrual	50		9		635		665		753		2,112
Benefit payments	(105)		(18)		(1,204)		(907)		(1,099)		(3,333)
Foreign exchange impact	—		—		(61)		503		—		442
Other	—		(5)		2		—		(7)		(10)
Dispositions	—		—		(6,796)		—		—		(6,796)
Ending balance at original discount rate	1,495		208		18,683		22,705		20,685		63,776
Effect of changes in discount rate assumptions (AOCI)	(108)		5		(825)		(2,260)		(324)		(3,512)
Balance, end of period	$	1,387	$	213	$	17,858	$	20,445	$	20,361	$	60,264
Net liability for future policy benefits, end of period	1,387		213		9,247		20,445		19,444		50,736
Liability for future policy benefits for certain participating contracts	—		—		12		—		1,270		1,282
Liability for universal life policies(b)	—		—		4,170		—		55		4,225


Deferred profit liability	59		11		22		1,673		832		2,597
Other reconciling items(c)	34		—		449		—		93		576
Future policy benefits for life and accident and health insurance contracts	1,480		224		13,900		22,118		21,694		59,416
Less: Reinsurance recoverable:	(5)		—		(678)		(41)		(21,694)		(22,418)
Net liability for future policy benefits after reinsurance recoverable	$	1,475	$	224	$	13,222	$	22,077	$	—	$	36,998
Weighted average liability duration of the liability for future policy benefits(d)	7.7		6.7		11.1		11.9		11.2


	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Corporate and Other		Total
(in millions, except for liability durations)


Nine Months Ended September 30, 2023
Present value of expected net premiums
Balance, beginning of year	$	—	$	—	$	11,654	$	—	$	991	$	12,645
Effect of changes in discount rate assumptions (AOCI)	—		—		1,872		—		66		1,938
Beginning balance at original discount rate	—		—		13,526		—		1,057		14,583
Effect of changes in cash flow assumptions	—		—		34		—		21		55
Effect of actual variances from expected experience	—		—		36		—		16		52
Adjusted beginning of year balance	—		—		13,596		—		1,094		14,690
Issuances	—		—		986		—		—		986
Interest accrual	—		—		325		—		34		359
Net premium collected	—		—		(1,093)		—		(90)		(1,183)
Foreign exchange impact	—		—		44		—		—		44
Other	—		—		11		—		(3)		8
Ending balance at original discount rate	—		—		13,869		—		1,035		14,904
Effect of changes in discount rate assumptions (AOCI)	—		—		(2,199)		—		(95)		(2,294)
Reclassified to Liabilities held-for-sale					(3,784)						(3,784)
Balance, end of period	$	—	$	—	$	7,886	$	—	$	940	$	8,826

Present value of expected future policy benefits
Balance, beginning of year	$	1,223	$	211	$	21,179	$	12,464	$	20,429	$	55,506
Effect of changes in discount rate assumptions (AOCI)	167		2		3,424		2,634		1,083		7,310
Beginning balance at original discount rate	1,390		213		24,603		15,098		21,512		62,816
Effect of changes in cash flow assumptions(a)	—		—		62		—		76		138
Effect of actual variances from expected experience(a)	(1)		(1)		85		21		(10)		94
Adjusted beginning of year balance	1,389		212		24,750		15,119		21,578		63,048
Issuances	141		16		978		3,503		4		4,642
Interest accrual	38		8		679		478		770		1,973
Benefit payments	(95)		(20)		(1,461)		(810)		(1,121)		(3,507)
Foreign exchange impact	—		—		54		48		—		102
Other	—		—		8		—		(18)		(10)
Ending balance at original discount rate	1,473		216		25,008		18,338		21,213		66,248
Effect of changes in discount rate assumptions (AOCI)	(217)		(9)		(4,397)		(3,512)		(2,214)		(10,349)
Reclassified to Liabilities held-for-sale	—		—		(4,352)		—		—		(4,352)
Balance, end of period	$	1,256	$	207	$	16,259	$	14,826	$	18,999	$	51,547
Net liability for future policy benefits, end of period	1,256		207		8,373		14,826		18,059		42,721
Liability for future policy benefits for certain participating contracts	—		—		13		—		1,308		1,321
Liability for universal life policies(b)	—		—		3,223		—		55		3,278


Deferred profit liability	80		9		18		1,428		865		2,400
Other reconciling items(c)	34		—		508		—		93		635
Future policy benefits for life and accident and health insurance contracts	1,370		216		12,135		16,254		20,380		50,355
Less: Reinsurance recoverable:	(4)		—		(700)		(37)		(20,380)		(21,121)
Net liability for future policy benefits after reinsurance recoverable	$	1,366	$	216	$	11,435	$	16,217	$	—	$	29,234

Weighted average liability duration of the liability for future policy benefits(d)(e)	7.4		6.6		11.9		10.9		10.8

(a)Effect of changes in cash flow assumptions and variances from actual experience are partially offset by changes in the deferred profit liability.

(b)Additional details can be found in the table that presents the balances and changes in the liability for universal life policies.

(c)Other reconciling items primarily include the Accident and Health as well as Group Benefits (short-duration) contracts.

(d)The weighted average liability durations are calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level, utilizing the segment level weighted average interest rates and current discount rate, which can be found in the table below.

(e)Includes balances that were reclassified to Liabilities held-for-sale in the Condensed Consolidated Balance Sheets.

The following table presents the amount of undiscounted expected future benefit payments and undiscounted and discounted expected gross premiums for future policy benefits for nonparticipating contracts:


		Nine Months Ended September 30,
(in millions)		2024		2023
Individual Retirement	Undiscounted expected future benefits and expense	$	2,139	$	2,119
	Undiscounted expected future gross premiums	$	—	$	—
	Discounted expected future gross premiums (at current discount rate)	$	—	$	—
Group Retirement	Undiscounted expected future benefits and expense	$	306	$	315
	Undiscounted expected future gross premiums	$	—	$	—
	Discounted expected future gross premiums (at current discount rate)	$	—	$	—
Life Insurance (a)	Undiscounted expected future benefits and expense	$	31,018	$	39,763
	Undiscounted expected future gross premiums	$	21,763	$	29,789
	Discounted expected future gross premiums (at current discount rate)	$	14,899	$	18,596
Institutional Markets	Undiscounted expected future benefits and expense	$	43,864	$	33,025
	Undiscounted expected future gross premiums	$	—	$	—
	Discounted expected future gross premiums (at current discount rate)	$	—	$	—
Corporate and other (b)	Undiscounted expected future benefits and expense	$	41,994	$	43,250
	Undiscounted expected future gross premiums	$	2,016	$	2,141
	Discounted expected future gross premiums (at current discount rate)	$	1,385	$	1,372

(a) 2023 includes balances related to AIG Life U.K. that have been reclassified to Liabilities held-for-sale in the Condensed Consolidated Balance Sheets at September 30, 2023.

(b) Represents activity ceded to Fortitude Re.

The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of Income (Loss) for future policy benefits for nonparticipating contracts:


	Gross Premiums				Interest Accretion
	Nine Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2024		2023			2024		2023

Individual Retirement	$	102	$	164		$	50	$	38

Group Retirement	10		16			9		8

Life Insurance	1,537		1,781			347		354

Institutional Markets	2,200		3,709			665		478
Corporate and Other	154		161			721		736
Total	$	4,003	$	5,831		$	1,792	$	1,614

The following table presents the weighted-average interest rate for future policy benefits for nonparticipating contracts:


	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Corporate and Other



September 30, 2024
Weighted-average interest rate, original discount rate	3.75	%	5.17	%	4.69	%	4.29	%	4.85	%
Weighted-average interest rate, current discount rate	4.89	%	4.81	%	5.04	%	5.15	%	5.04	%

September 30, 2023
Weighted-average interest rate, original discount rate *	3.75	%	5.15	%	4.14	%	3.97	%	4.87	%
Weighted-average interest rate, current discount rate *	5.92	%	5.90	%	5.92	%	5.87	%	5.94	%

* Weighted-average interest rates for Life Insurance include balances that have been reclassified to Liabilities held-for-sale.

The following table presents the balances and changes in the liability for universal life policies:


	Nine Months Ended September 30,
	2024						2023
	Life Insurance		Corporate and Other		Total		Life Insurance		Corporate and Other		Total
(in millions, except duration of liability)


Balance, beginning of year	$	3,731	$	55	$	3,786	$	3,300	$	55	$	3,355
Effect of changes in assumptions	38		—		38		(41)		—		(41)
Effect of changes in experience	274		(3)		271		174		(3)		171
Adjusted beginning balance	$	4,043	$	52	$	4,095	$	3,433	$	52	$	3,485

Assessments	434		1		435		518		1		519
Excess benefits paid	(646)		—		(646)		(681)		—		(681)
Interest accrual	119		2		121		95		2		97
Other	(8)		—		(8)		20		—		20
Changes related to unrealized appreciation (depreciation) of investments	228		—		228		(162)		—		(162)
Balance, end of period	$	4,170	$	55	$	4,225	$	3,223	$	55	$	3,278
Less: Reinsurance recoverable	(155)		(55)		(210)		(162)		—		(162)
Balance, end of period, net of Reinsurance recoverable	$	4,015	$	—	$	4,015	$	3,061	$	55	$	3,116

Weighted average duration of liability *	24.0		9.0				25.4		9.3

*The weighted average duration of liabilities is calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level, utilizing the segment level weighted average interest rates, which can be found in the table below.

The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of Income (Loss) for the liability for universal life policies:


	Gross Assessments				Interest Accretion
	Nine Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2024		2023			2024		2023





Life Insurance	$	741	$	855		$	119	$	95

Corporate and Other	29		31			2		2
Total	$	770	$	886		$	121	$	97

The following table presents the calculation of weighted average interest rate for the liability for universal life policies:


September 30,	2024				2023
	Life Insurance		Corporate and Other		Life Insurance		Corporate and Other



Weighted-average interest rate	4.13	%	4.20	%	3.94	%	4.20	%

The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.

The following table presents details concerning our universal life policies:


	Nine Months Ended September 30,
(in millions, except for attained age of contract holders)	2024		2023
Account value	$	3,912	$	3,654
Net amount at risk	$	74,889	$	71,497
Average attained age of contract holders	53		53

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)
Nine Months Ended September 30, 2024
Policyholder contract deposits account balance, beginning of year	$	94,896		$	41,299		$	10,231		$	13,649		$	3,333		$	163,408
Deposits	17,949			4,025			1,211			3,784			31			27,000
Policy charges	(544)			(380)			(1,124)			(51)			(44)			(2,143)
Surrenders and withdrawals	(13,087)			(7,337)			(227)			(82)			(91)			(20,824)
Benefit payments	(3,049)			(1,500)			(214)			(1,232)			(219)			(6,214)
Net transfers from (to) separate account	3,934			3,086			17			15			—			7,052
Interest credited	2,769			951			377			511			119			4,727
Other	(1)			(210)			15			214			(3)			15
Policyholder contract deposits account balance, end of period	102,867			39,934			10,286			16,808			3,126			173,021
Other reconciling items(b)	(1,113)			(187)			279			177			—			(844)
Policyholder contract deposits	$	101,754		$	39,747		$	10,565		$	16,985		$	3,126		$	172,177
Weighted average crediting rate	3.04		%	3.12		%	4.46		%	4.57		%	5.05		%
Cash surrender value(c)	$	96,343		$	39,076		$	9,101		$	2,586		$	1,613		$	148,719


Nine Months Ended September 30, 2023
Policyholder contract deposits account balance, beginning of year	$	89,554		$	43,395		$	10,224		$	11,734		$	3,587		$	158,494
Deposits	12,885			3,943			1,211			3,707			34			21,780
Policy charges	(661)			(359)			(1,143)			(50)			(47)			(2,260)
Surrenders and withdrawals	(10,310)			(6,010)			(194)			(502)			(65)			(17,081)
Benefit payments	(2,984)			(1,801)			(222)			(1,355)			(233)			(6,595)
Net transfers from (to) separate account	2,577			1,896			1			565			—			5,039
Interest credited	1,482			843			297			353			127			3,102
Other	(7)			6			16			(9)			(11)			(5)
Policyholder contract deposits account balance, end of period	92,536			41,913			10,190			14,443			3,392			162,474
Other reconciling items(b)	(2,280)			(327)			11			(20)			—			(2,616)
Policyholder contract deposits	$	90,256		$	41,586		$	10,201		$	14,423		$	3,392		$	159,858
Weighted average crediting rate	2.65		%	2.88		%	4.37		%	3.66		%	4.99		%
Cash surrender value(c)	$	85,644		$	40,928		$	9,008		$	2,577		$	1,732		$	139,889

(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:


September 30, 2024		At 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 Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	5,794	$	1,711	$	33,119	$	40,624
	> 1% - 2%	3,226		21		1,120		4,367
	> 2% - 3%	7,127		13		2,299		9,439
	> 3% - 4%	5,943		34		4		5,981
	> 4% - 5%	411		—		4		415
	> 5%	37		5		3		45
	Total	$	22,538	$	1,784	$	36,549	$	60,871








Group Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	2,087	$	1,542	$	8,594	$	12,223
	> 1% - 2%	3,324		735		937		4,996
	> 2% - 3%	10,977		297		115		11,389
	> 3% - 4%	575		—		—		575
	> 4% - 5%	6,432		—		—		6,432
	> 5%	137		—		—		137
	Total	$	23,532	$	2,574	$	9,646	$	35,752

Life Insurance	Range of Guaranteed Minimum Credited Rate
	<=1%	$	—	$	—	$	—	$	—
	> 1% - 2%	—		109		364		473
	> 2% - 3%	9		391		1,530		1,930
	> 3% - 4%	1,179		438		22		1,639
	> 4% - 5%	2,748		—		—		2,748
	> 5%	211		—		—		211
	Total	$	4,147	$	938	$	1,916	$	7,001

Total*		$	50,217	$	5,296	$	48,111	$	103,624
Percentage of total		49%		5%		46%		100%


September 30, 2023		At 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 Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	6,741	$	2,234	$	24,455	$	33,430
	> 1% - 2%	3,940		22		1,909		5,871
	> 2% - 3%	8,401		11		822		9,234
	> 3% - 4%	6,864		37		6		6,907
	> 4% - 5%	439		—		4		443
	> 5%	32		—		3		35
	Total	$	26,417	$	2,304	$	27,199	$	55,920









Group Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	2,197	$	2,467	$	6,304	$	10,968
	> 1% - 2%	3,874		1,347		667		5,888
	> 2% - 3%	12,700		159		93		12,952
	> 3% - 4%	641		—		—		641
	> 4% - 5%	6,773		—		—		6,773
	> 5%	150		—		—		150
	Total	$	26,335	$	3,973	$	7,064	$	37,372

Life Insurance	Range of Guaranteed Minimum Credited Rate
	<=1%	$	—	$	—	$	—	$	—
	> 1% - 2%	—		131		347		478
	> 2% - 3%	9		866		1,078		1,953
	> 3% - 4%	1,178		499		26		1,703
	> 4% - 5%	2,879		—		—		2,879
	> 5%	218		—		—		218
	Total	$	4,284	$	1,496	$	1,451	$	7,231

Total*		$	57,036	$	7,773	$	35,714	$	100,523
Percentage of total		56%		8%		36%		100%

*Excludes policyholder contract deposits account balances that are not subject to guaranteed minimum crediting rates.

The following table presents a rollforward of the unearned revenue reserve for the nine months ended September 30, 2024 and 2023:


	Life Insurance		Institutional Markets		Corporate and Other		Total
(in millions)


Nine Months Ended September 30, 2024
Balance, beginning of year	$	1,770	$	1	$	94	$	1,865
Revenue deferred	120		—		—		120


Amortization	(83)		—		(7)		(90)

Balance, end of period	$	1,807	$	1	$	87	$	1,895
Other reconciling items*							957
Other policyholder funds							$	2,852

Nine Months Ended September 30, 2023
Balance, beginning of year	$	1,727	$	2	$	105	$	1,834
Revenue deferred	114		—		—		114


Amortization	(83)		(1)		(8)		(92)

Balance, end of period	$	1,758	$	1	$	97	$	1,856
Other reconciling items*							994
Other policyholder funds							$	2,850

*Other reconciling items include policyholders' dividend accumulations, provisions for future dividends to participating policyholders, dividends to policyholders and any similar items.