Other Insurance Liabilities and Separate Accounts (Tables)

9 Months Ended

Sep. 30, 2024

Insurance [Abstract]

Schedule of Changes in Liability for Future Policy Benefits

The following tables show the components of the change in the liability for future policy benefits, which is included in other insurance liabilities and other long-term insurance liabilities on the unaudited condensed consolidated balance sheets, during the nine months ended September 30, 2024 and 2023:

	Nine Months Ended September 30, 2024
In millions	Large Case Pensions		Long-Term Care
Present value of expected net premiums (1)
Liability for future policy benefits, beginning of the period - current discount rate			$	293
Beginning liability for future policy benefits at original (locked-in) discount rate			$	288
Effect of changes in cash flow assumptions			—
Effect of actual variances from expected experience			12
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate			300
Interest accrual (using locked-in discount rate)			11
Net premiums (actual)			(29)
Ending liability for future policy benefits at original (locked-in) discount rate			282
Effect of changes in discount rate assumptions			6
Liability for future policy benefits, end of the period - current discount rate			$	288
Present value of expected future policy benefits
Liability for future policy benefits, beginning of the period - current discount rate	$	2,139	$	1,640
Beginning liability for future policy benefits at original (locked-in) discount rate	$	2,251	$	1,632
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	(20)		5
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate	2,231		1,637
Issuances	26		—
Interest accrual (using locked-in discount rate)	69		61
Benefit payments (actual)	(192)		(55)
Ending liability for future policy benefits at original (locked-in) discount rate	2,134		1,643
Effect of changes in discount rate assumptions	(90)		12
Liability for future policy benefits, end of the period - current discount rate	$	2,044	$	1,655
Net liability for future policy benefits	$	2,044	$	1,367
Less: Reinsurance recoverable	—		—
Net liability for future policy benefits, net of reinsurance recoverable	$	2,044	$	1,367

_____________________________________________

(1)The present value of expected net premiums is equivalent to the present value of expected gross premiums for the long-term care insurance contracts as net premiums are set equal to gross premiums.

	Nine Months Ended September 30, 2023
In millions	Large Case Pensions		Long-Term Care
Present value of expected net premiums (1)
Liability for future policy benefits, beginning of the period - current discount rate			$	300
Beginning liability for future policy benefits at original (locked-in) discount rate			$	302
Effect of changes in cash flow assumptions			—
Effect of actual variances from expected experience			7
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate			309
Interest accrual (using locked-in discount rate)			11
Net premiums (actual)			(29)
Ending liability for future policy benefits at original (locked-in) discount rate			291
Effect of changes in discount rate assumptions			(12)
Liability for future policy benefits, end of the period - current discount rate			$	279
Present value of expected future policy benefits
Liability for future policy benefits, beginning of the period - current discount rate	$	2,253	$	1,566
Beginning liability for future policy benefits at original (locked-in) discount rate	$	2,425	$	1,613
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	1		9
Adjusted beginning liability for future policy benefits - original (locked-in) discount rate	2,426		1,622
Issuances	8		—
Interest accrual (using locked-in discount rate)	74		61
Benefit payments (actual)	(210)		(53)
Ending liability for future policy benefits at original (locked-in) discount rate	2,298		1,630
Effect of changes in discount rate assumptions	(247)		(146)
Liability for future policy benefits, end of the period - current discount rate	$	2,051	$	1,484
Net liability for future policy benefits	$	2,051	$	1,205
Less: Reinsurance recoverable	—		—
Net liability for future policy benefits, net of reinsurance recoverable	$	2,051	$	1,205

_____________________________________________

(1)The present value of expected net premiums is equivalent to the present value of expected gross premiums for the long-term care insurance contracts as net premiums are set equal to gross premiums.

The amount of undiscounted expected gross premiums and expected future benefit payments for long-duration insurance liabilities as of September 30, 2024 and 2023 were as follows:

In millions	September 30, 2024		September 30, 2023
Large case pensions
Expected future benefit payments	$	3,091	$	3,337
Expected gross premiums	—		—
Long-term care
Expected future benefit payments	$	3,198	$	3,237
Expected gross premiums	402		419

The weighted-average interest rate used in the measurement of the long-duration insurance liabilities as of September 30, 2024 and 2023 were as follows:

	September 30, 2024	September 30, 2023
Large case pensions
Interest accretion rate	4.20%	4.20%
Current discount rate	4.82%	5.86%
Long-term care
Interest accretion rate	5.11%	5.11%
Current discount rate	5.07%	5.99%

The weighted-average durations (in years) of the long-duration insurance liabilities as of September 30, 2024 and 2023 were as follows:

	September 30, 2024	September 30, 2023
Large case pensions	7.3	7.4
Long-term care	11.8	12.2

Roll Forward of Policyholders' Funds

The following table shows the components of the change in policyholders’ funds related to long-duration insurance contracts, which are included in policyholders’ funds and other long-term liabilities on the unaudited condensed consolidated balance sheets, during the nine months ended September 30, 2024 and 2023:

	Nine Months Ended September 30,
In millions, except weighted average crediting rate	2024		2023
Policyholders’ funds, beginning of the period	$	332	$	345
Deposits received	2		1
Policy charges	(1)		(2)
Surrenders and withdrawals	(9)		(23)
Interest credited	8		9
Change in net unrealized gains (losses)	17		(4)
Other	(18)		(23)
Policyholders’ funds, end of the period	$	331	$	303
Weighted average crediting rate	4.30%		4.40%
Net amount at risk	$	—	$	—
Cash surrender value	$	310	$	324

Summary of Separate Account Assets

Separate Accounts financial assets as of September 30, 2024 and December 31, 2023 were as follows:

	September 30, 2024								December 31, 2023
In millions	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	1	$	164	$	—	$	165	$	2	$	166	$	—	$	168
Debt securities	202		697		—		899		558		1,949		—		2,507
Common/collective trusts	—		2,372		—		2,372		—		529		—		529
Total (1)	$	203	$	3,233	$	—	$	3,436	$	560	$	2,644	$	—	$	3,204

_____________________________________________

(1)Excludes $102 million of other payables and $46 million of other receivables at September 30, 2024 and December 31, 2023, respectively.

The following table shows the fair value of assets, by major investment category, supporting Separate Accounts as of September 30, 2024 and December 31, 2023:

In millions	September 30, 2024		December 31, 2023
Cash and cash equivalents	$	165	$	168
Debt securities:
U.S. government securities	223		573
States, municipalities and political subdivisions	16		28
U.S. corporate securities	527		1,632
Foreign securities	52		202
Residential mortgage-backed securities	68		51
Commercial mortgage-backed securities	3		6
Other asset-backed securities	10		15
Total debt securities	899		2,507
Common/collective trusts	2,372		529
Total (1)	$	3,436	$	3,204

_____________________________________________

(1)Excludes $102 million of other payables and $46 million of other receivables at September 30, 2024 and December 31, 2023, respectively.

Roll Forward of Separate Accounts

The following table shows the components of the change in Separate Accounts liabilities during the nine months ended September 30, 2024 and 2023:

	Nine Months Ended September 30,
In millions	2024		2023
Separate Accounts liability, beginning of the period	$	3,250	$	3,228
Premiums and deposits	661		657
Surrenders and withdrawals	(203)		(7)
Benefit payments	(706)		(714)
Investment earnings	327		42
Net transfers from general account	8		4
Other	(3)		(10)
Separate Accounts liability, end of the period	$	3,334	$	3,200
Cash surrender value, end of the period	$	2,209	$	2,136