CLOSED BLOCK

3 Months Ended

Mar. 31, 2024

Closed Block Disclosure [Abstract]

CLOSED BLOCK

CLOSED BLOCK

As a result of demutualization, the Company’s Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and earnings of the Closed Block are specifically identified to support its participating policyholders.

Assets allocated to the Closed Block insure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of the Company’s General Account, any of its Separate Accounts or any affiliate of the Company without the approval of the New York State Department of Financial Services (the “NYDFS”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. For more information on the Closed Block, see Note 5 to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2023.

Summarized financial information for the Company’s Closed Block is as follows:

	March 31, 2024		December 31, 2023
	(in millions)
Closed Block Liabilities:
Future policy benefits, policyholders’ account balances and other	$	5,390	$	5,461
Other liabilities	69		57
Total Closed Block liabilities	5,459		5,518
Assets Designated to the Closed Block:
Fixed maturities AFS, at fair value (amortized cost of $2,949 and $2,945) (allowance for credit losses of $0 and $0)	2,784		2,800
Mortgage loans on real estate (net of allowance for credit losses of $13 and $13)	1,550		1,612
Policy loans	541		554
Cash and other invested assets	63		58
Other assets	163		150
Total assets designated to the Closed Block	5,101		5,174
Excess of Closed Block liabilities over assets designated to the Closed Block	358		344
Amounts included in AOCI:
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $35 and $31	(130)		(115)
Maximum future earnings to be recognized from Closed Block assets and liabilities	$	228	$	229

The Company’s Closed Block revenues and expenses were as follows:

	Three Months Ended March 31,
	2024		2023
	(in millions)
Revenues:
Premiums and other income	$	29	$	30
Net investment income (loss)	52		51
Investment gains (losses), net	(1)		—
Total revenues	80		81
Benefits and Other Deductions:
Policyholders’ benefits and dividends	77		83
Total benefits and other deductions	77		83
Net income (loss), before income taxes	3		(2)
Income tax (expense) benefit	(1)		(1)
Net income (loss)	$	2	$	(3)