Schedule of Insurance and Investment Contract Liabilities |
A summary of our insurance liabilities and annuity benefits is presented below: | | | | | | | | | | | | | | | | | | September 30, 2023 | Long-term care | Structured settlement annuities | Life | Other contracts | Total | Future policy benefit reserves | $ | 23,801 | | $ | 8,534 | | $ | 1,040 | | $ | 405 | | $ | 33,780 | | Investment contracts | — | | 812 | | — | | 782 | | 1,594 | | Other | — | | — | | 172 | 286 | | 458 | | | | | | | | | | | | | | Total | $ | 23,801 | | $ | 9,346 | | $ | 1,212 | | $ | 1,473 | | $ | 35,832 | |
| | | | | | | | | | | | | | | | | | December 31, 2022 | | | | | | Future policy benefit reserves | $ | 24,256 | | $ | 8,860 | | $ | 1,040 | | $ | 437 | | $ | 34,593 | | Investment contracts | — | | 860 | | — | | 849 | | 1,708 | | Other | — | | — | | 178 | | 365 | | 544 | | | | | | | | | | | | | | Total | $ | 24,256 | | $ | 9,720 | | $ | 1,218 | | $ | 1,651 | | $ | 36,845 | |
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Summary of Future Policy Benefits |
The following tables summarize balances of and changes in future policy benefits reserves.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | September 30, 2022 | Present value of expected net premiums | Long-term care | Structured settlement annuities | Life | | | | Long-term care | Structured settlement annuities | Life | | | Balance, beginning of year | $ | 4,059 | | $ | — | | $ | 4,828 | | | | | $ | 5,652 | | $ | — | | $ | 6,622 | | | | Beginning balance at locked-in discount rate | 3,958 | | — | | 5,210 | | | | | 4,451 | | — | | 5,443 | | | | Effect of changes in cash flow assumptions | (9) | | — | | (77) | | | | | (3) | | — | | 91 | | | | Effect of actual variances from expected experience | (42) | | — | | (286) | | | | | (259) | | — | | (14) | | | | Adjusted beginning of year balance | 3,908 | | — | | 4,847 | | | | | 4,189 | | — | | 5,520 | | | | Interest accrual | 157 | | — | | 148 | | | | | 170 | | — | | 153 | | | | Net premiums collected | (296) | | — | | (220) | | | | | (321) | | — | | (252) | | | | Effect of foreign currency | — | | — | | 11 | | | | | — | | — | | (209) | | | | Ending balance at locked-in discount rate | 3,768 | | — | | 4,786 | | | | | 4,038 | | — | | 5,212 | | | | Effect of changes in discount rate assumptions | 43 | | — | | (500) | | | | | 32 | | — | | (410) | | | | Balance, end of period | $ | 3,811 | | $ | — | | $ | 4,286 | | | | | $ | 4,070 | | $ | — | | $ | 4,802 | | | | | | | | | | | | | | | | Present value of expected future policy benefits | | | | | | | | | | | | Balance, beginning of year | $ | 28,316 | | $ | 8,860 | | $ | 5,868 | | | | | $ | 40,296 | | $ | 12,328 | | $ | 7,923 | | | | Beginning balance at locked-in discount rate | 27,026 | | 8,790 | | 6,247 | | | | | 27,465 | | 9,024 | | 6,560 | | | | Effect of changes in cash flow assumptions | (41) | | (16) | | 49 | | | | | (392) | | (23) | | 120 | | | | Effect of actual variances from expected experience | (79) | | 18 | | (254) | | | | | (344) | | (3) | | 9 | | | | Adjusted beginning of year balance | 26,906 | | 8,792 | | 6,042 | | | | | 26,729 | | 8,998 | | 6,689 | | | | Interest accrual | 1,091 | | 342 | | 177 | | | | | 1,089 | | 355 | | 184 | | | | Benefit payments | (947) | | (511) | | (396) | | | | | (855) | | (510) | | (399) | | | | Effect of foreign currency | — | | — | | 12 | | | | | — | | — | | (220) | | | | Ending balance at locked-in discount rate | 27,050 | | 8,623 | | 5,835 | | | | | 26,962 | | 8,843 | | 6,254 | | | | Effect of changes in discount rate assumptions | 562 | | (89) | | (509) | | | | | 610 | | (81) | | (417) | | | | Balance, end of period | $ | 27,612 | | $ | 8,534 | | $ | 5,326 | | | | | $ | 27,572 | | $ | 8,762 | | $ | 5,837 | | | | Net future policy benefit reserves | $ | 23,801 | | $ | 8,534 | | $ | 1,040 | | | | | $ | 23,503 | | $ | 8,762 | | $ | 1,035 | | | | Less: Reinsurance recoverables, net of allowance for credit losses | (133) | | — | | (39) | | | | | (2,869) | | — | | (66) | | | | Net future policy benefit reserves, after reinsurance recoverables | $ | 23,668 | | $ | 8,534 | | $ | 1,001 | | | | | $ | 20,634 | | $ | 8,762 | | $ | 969 | | | |
The following table provides the amount of undiscounted and discounted expected future gross premiums and expected future benefits and expenses. | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | September 30, 2022 | | | | | Undiscounted | Discounted(a) | | Undiscounted | Discounted(a) | | | | | | | | | | | | | | | | Long-term care: | Gross premiums | $ | 7,522 | | $ | 4,656 | | | $ | 8,057 | | $ | 4,858 | | | | | | | Benefit payments | 63,406 | | 27,612 | | | 65,620 | | 27,572 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Structured settlement annuities: | Benefit payments | 19,480 | | 8,534 | | | 20,122 | | 8,762 | | | | | | | | | | | | | | | | | Life: | Gross premiums | 12,387 | | 5,144 | | | 13,786 | | 5,905 | | | | | | | Benefit payments | 11,214 | | 5,326 | | | 12,023 | | 5,837 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) Determined using the current discount rate as of September 30, 2023 and 2022. The following table provides the weighted-average durations of and weighted-average interest rates for the liability for future policy benefits. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | September 30, 2022 | | | | Long-term care | Structured settlement annuities | Life | | Long-term care | Structured settlement annuities | Life | | | | | | | Duration (years)(a) | 12.3 | 10.5 | 5.3 | | 13.0 | 10.7 | 5.1 | | | | | | | Interest accretion rate | 5.5% | 5.4% | 4.9% | | 5.5% | 5.4% | 4.9% | | | | | | | Current discount rate | 5.8% | 5.7% | 5.6% | | 5.7% | 5.7% | 5.5% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) Determined using the current discount rate as of September 30 2023 and 2022.
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