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Policyholder Account Balances, Future Policy Benefits and Claims (Tables)
 6 Months Ended
Jun. 30, 2023
Policyholder Account Balance [Abstract]  
Policyholder account balances, future policy benefits and claims
Policyholder account balances, future policy benefits and claims consisted of the following:
June 30, 2023December 31, 2022
(in millions)
Policyholder account balances
Policyholder account balances$26,390 $24,986 
Future policy benefits
Reserve for future policy benefits7,569 7,495 
Deferred profit liability70 62 
Additional liabilities for insurance guarantees1,241 1,186 
Other insurance and annuity liabilities211 177 
Total future policy benefits9,091 8,920 
Policy claims and other policyholders’ funds178 226 
Total policyholder account balances, future policy benefits and claims$35,659 $34,132 
Balances of and changes in policyholder account balances
The balances of and changes in policyholder account balances were as follows:
Variable AnnuitiesStructured Variable AnnuitiesFixed AnnuitiesFixed Indexed AnnuitiesNon-Life Contingent Payout Annuities
(in millions, except percentages)
Balance at January 1, 2023
$4,752 $6,410 $6,799 $312 $471 
Contract deposits37 1,364 24 — 46 
Policy charges(4)— — — — 
Surrenders and other benefits(358)(55)(574)(5)(59)
Net transfer from (to) separate account liabilities(9)— — — — 
Other variable account adjustments— 808 — — — 
Interest credited72 — 114 1 2 
Balance at June 30, 2023
$4,490 $8,527 $6,363 $308 $460 
Weighted-average crediting rate3.2 %1.5 %3.5 %1.9 %N/A
Cash surrender value (1)
$4,461 $8,014 $6,353 $276 N/A
Universal Life InsuranceVariable Universal Life InsuranceIndexed Universal Life InsuranceOther Life InsuranceTotal,
All Products
(in millions, except percentages)
Balance at January 1, 2023
$1,544 $1,520 $2,654 $524 $24,986 
Contract deposits62 122 96 — 1,751 
Policy charges(89)(47)(60)— (200)
Surrenders and other benefits(36)(39)(27)(20)(1,173)
Net transfer from (to) separate account liabilities— (46)— — (55)
Other variable account adjustments— — — — 808 
Interest credited26 25 23 10 273 
Balance at June 30, 2023
$1,507 $1,535 $2,686 $514 $26,390 
Weighted-average crediting rate3.6 %3.9 %2.0 %4.0 %
Net amount at risk$8,958 $57,033 $14,711 $145 
Cash surrender value (1)
$1,356 $1,057 $2,190 $338 
Variable AnnuitiesStructured Variable AnnuitiesFixed AnnuitiesFixed Indexed AnnuitiesNon-Life Contingent Payout Annuities
(in millions, except percentages)
Balance at January 1, 2022
$4,972 $4,458 $7,251 $323 $527 
Contract deposits146 2,784 55 — 53 
Policy charges(8)— — — — 
Surrenders and other benefits(450)(41)(744)(17)(124)
Net transfer from (to) separate account liabilities(60)— — — — 
Other variable account adjustments— (791)— — — 
Interest credited152 — 237 6 15 
Balance at December 31, 2022
$4,752 $6,410 $6,799 $312 $471 
Weighted-average crediting rate3.2 %1.1 %3.5 %1.9 %N/A
Cash surrender value (1)
$4,720 $5,986 $6,786 $277 N/A
Universal Life InsuranceVariable Universal Life InsuranceIndexed Universal Life InsuranceOther Life InsuranceTotal,
All Products
(in millions, except percentages)
Balance at January 1, 2022
$1,602 $1,493 $2,534 $563 $23,723 
Contract deposits134 233 218 (3)3,620 
Policy charges(178)(91)(116)— (393)
Surrenders and other benefits(67)(70)(50)(56)(1,619)
Net transfer from (to) separate account liabilities— (102)— — (162)
Other variable account adjustments— — — — (791)
Interest credited53 57 68 20 608 
Balance at December 31, 2022
$1,544 $1,520 $2,654 $524 $24,986 
Weighted-average crediting rate3.6 %3.9 %2.0 %4.0 %
Net amount at risk$9,187 $57,354 $15,043 $149 
Cash surrender value (1)
$1,382 $1,054 $2,148 $348 
(1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. For variable annuities and VUL, the cash surrender value shown is the proportion of the total cash surrender value related to their fixed account liabilities.
Account values by guaranteed minimum interest rates
The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of June 30, 2023 and December 31, 2022 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated. Rates are reset at management’s discretion, subject to guaranteed minimums.
June 30, 2023
Account Values with Crediting Rates
Range of Guaranteed Minimum Crediting RatesAt Guaranteed Minimum
1-49 bps above Guaranteed Minimum
50-99 bps above Guaranteed Minimum
100-150 bps above Guaranteed Minimum
Greater than 150 bps above Guaranteed Minimum
Total
(in millions, except percentages)
Fixed accounts of variable annuities1 %–1.99%$84 $156 $21 $5 $— $266 
2 %–2.99%158 — — — — 158 
3 %–3.99%2,422 — — 1 — 2,423 
4 %–5.00%1,584 — — — — 1,584 
Total$4,248 $156 $21 $6 $— $4,431 
Fixed accounts of structured variable annuities1 %–1.99%$3 $18 $3 $1 $5 $30 
2 %–2.99%— — — — — — 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$3 $18 $3 $1 $5 $30 
Fixed annuities1 %–1.99%$129 $563 $161 $21 $9 $883 
2 %–2.99%59 — — — — 59 
3 %–3.99%3,075 — — — — 3,075 
4 %–5.00%2,329 — — — — 2,329 
Total$5,592 $563 $161 $21 $9 $6,346 
Non-indexed accounts of fixed indexed annuities1 %–1.99%$— $3 $7 $14 $— $24 
2 %–2.99%— — — — — — 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$— $3 $7 $14 $— $24 
Universal life insurance1 %–1.99%$— $— $— $— $— $— 
2 %–2.99%54 — 6 — — 60 
3 %–3.99%869 — 4 2 — 875 
4 %–5.00%543 — — — — 543 
Total$1,466 $— $10 $2 $— $1,478 
Account Values with Crediting Rates
Range of Guaranteed Minimum Crediting RatesAt Guaranteed Minimum
1-49 bps above Guaranteed Minimum
50-99 bps above Guaranteed Minimum
100-150 bps above Guaranteed Minimum
Greater than 150 bps above Guaranteed Minimum
Total
(in millions, except percentages)
Fixed accounts of variable universal life insurance1 %–1.99%$— $4 $3 $— $17 $24 
2 %–2.99%23 3 1 2 4 33 
3 %–3.99%128 1 3 2 — 134 
4 %–5.00%631 — — — — 631 
Total$782 $8 $7 $4 $21 $822 
Non-indexed accounts of indexed universal life insurance1 %–1.99%$— $— $2 $— $— $2 
2 %–2.99%128 — — — — 128 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$128 $— $2 $— $— $130 
Other life insurance1 %–1.99%$— $— $— $— $— $— 
2 %–2.99%— — — — — — 
3 %–3.99%32 — — — — 32 
4 %–5.00%305 — — — — 305 
Total$337 $— $— $— $— $337 
Total1 %–1.99%$216 $744 $197 $41 $31 $1,229 
2 %–2.99%422 3 7 2 4 438 
3 %–3.99%6,526 1 7 5 — 6,539 
4 %–5.00%5,392 — — — — 5,392 
Total$12,556 $748 $211 $48 $35 $13,598 
Percentage of total account values that reset in:
Next 12 months99.9 %98.9 %98.8 %100.0 %100.0 %99.8 %
> 12 months to 24 months— 1.1 1.2 — — 0.1 
> 24 months0.1 — — — — 0.1 
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
December 31, 2022
Account Values with Crediting Rates
Range of Guaranteed Minimum Crediting RatesAt Guaranteed Minimum
1-49 bps above Guaranteed Minimum
50-99 bps above Guaranteed Minimum
100-150 bps above Guaranteed Minimum
Greater than 150 bps above Guaranteed Minimum
Total
(in millions, except percentages)
Fixed accounts of variable annuities1 %–1.99%$169 $102 $18 $— $— $289 
2 %–2.99%177 — — — — 177 
3 %–3.99%2,611 — — 1 — 2,612 
4 %–5.00%1,611 — — — — 1,611 
Total$4,568 $102 $18 $1 $— $4,689 
Account Values with Crediting Rates
Range of Guaranteed Minimum Crediting RatesAt Guaranteed Minimum
1-49 bps above Guaranteed Minimum
50-99 bps above Guaranteed Minimum
100-150 bps above Guaranteed Minimum
Greater than 150 bps above Guaranteed Minimum
Total
(in millions, except percentages)
Fixed accounts of structured variable annuities1 %–1.99%$12 $7 $3 $1 $— $23 
2 %–2.99%— — — — — — 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$12 $7 $3 $1 $— $23 
Fixed annuities1 %–1.99%$460 $402 $132 $33 $10 $1,037 
2 %–2.99%67 — — — — 67 
3 %–3.99%3,344 — — — — 3,344 
4 %–5.00%2,333 — — — — 2,333 
Total$6,204 $402 $132 $33 $10 $6,781 
Non-indexed accounts of fixed indexed annuities1 %–1.99%$1 $3 $7 $14 $— $25 
2 %–2.99%— — — — — — 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$1 $3 $7 $14 $— $25 
Universal life insurance1 %–1.99%$— $— $— $— $— $— 
2 %–2.99%55 — 1 — — 56 
3 %–3.99%885 1 2 — — 888 
4 %–5.00%569 — — — — 569 
Total$1,509 $1 $3 $— $— $1,513 
Fixed accounts of variable universal life insurance1 %–1.99%$4 $3 $2 $— $9 $18 
2 %–2.99%30 — 1 2 2 35 
3 %–3.99%134 1 1 1 — 137 
4 %–5.00%648 — — — — 648 
Total$816 $4 $4 $3 $11 $838 
Non-indexed accounts of indexed universal life insurance1 %–1.99%$— $— $3 $— $— $3 
2 %–2.99%126 — — — — 126 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$126 $— $3 $— $— $129 
Account Values with Crediting Rates
Range of Guaranteed Minimum Crediting RatesAt Guaranteed Minimum
1-49 bps above Guaranteed Minimum
50-99 bps above Guaranteed Minimum
100-150 bps above Guaranteed Minimum
Greater than 150 bps above Guaranteed Minimum
Total
(in millions, except percentages)
Other life insurance1 %–1.99%$— $— $— $— $— $— 
2 %–2.99%— — — — — — 
3 %–3.99%32 — — — — 32 
4 %–5.00%314 — — — — 314 
Total$346 $— $— $— $— $346 
Total1 %–1.99%$646 $517 $165 $48 $19 $1,395 
2 %–2.99%455 — 2 2 2 461 
3 %–3.99%7,006 2 3 2 — 7,013 
4 %–5.00%5,475 — — — — 5,475 
Total$13,582 $519 $170 $52 $21 $14,344 
Percentage of total account values that reset in:
Next 12 months99.8 %96.3 %93.8 %100.0 %100.0 %99.6 %
> 12 months to 24 months0.1 3.0 5.8 — — 0.3 
> 24 months0.1 0.7 0.4 — — 0.1 
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Balances of and changes in liability for future policy benefits, and Revenue and interest recognized
The following tables summarize the balances of and changes in the liability for future policy benefits, including the January 1, 2021 adoption of ASU 2018-12:
Life Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceLong Term Care InsuranceTotal, All Products
(in millions)
Pre-adoption balance at December 31, 2020$1,536 $633 $530 $5,749 $8,448 
Effect of shadow reserve adjustments(175)— — (566)(741)
Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach4 — — 35 39 
Effect of change in deferred profit liability(43)— — — (43)
Effect of remeasurement of the liability at the current single A discount rate215 265 238 1,965 2,683 
Post-adoption balance at January 1, 20211,537 898 768 7,183 10,386 
Less: reinsurance recoverable— 601 24 3,623 4,248 
Post-adoption balance at January 1, 2021, after
reinsurance recoverable		$1,537 $297 $744 $3,560 $6,138 
Life Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceLong Term Care InsuranceTotal,
All Products
(in millions, except percentages)
Present Value of Expected Net Premiums:
Balance at January 1, 2021$— $702 $238 $1,831 $2,771 
Beginning balance at original discount rate— 536 183 1,498 2,217 
Effect of changes in cash flow assumptions— — — (6)(6)
Effect of actual variances from expected experience— 56 (35)(61)(40)
Adjusted beginning of year balance$— $592 $148 $1,431 $2,171 
Issuances38 78 18 — 134 
Interest accrual— 29 9 73 111 
Net premiums collected(38)(63)(20)(184)(305)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$— $636 $155 $1,320 $2,111 
Effect of changes in discount rate assumptions— 141 33 227 401 
Balance at December 31, 2021$— $777 $188 $1,547 $2,512 
Present Value of Future Policy Benefits:
Balance at January 1, 2021$1,537 $1,600 $1,006 $9,014 $13,157 
Beginning balance at original discount rate1,321 1,169 714 6,716 9,920 
Effect of changes in cash flow assumptions— — — (8)(8)
Effect of actual variances from expected experience(14)58 (40)(124)(120)
Adjusted beginning of year balance$1,307 $1,227 $674 $6,584 $9,792 
Issuances39 78 18 — 135 
Interest accrual53 70 39 347 509 
Benefit payments(168)(120)(43)(336)(667)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$1,231 $1,255 $688 $6,595 $9,769 
Effect of changes in discount rate assumptions139 343 226 1,755 2,463 
Balance at December 31, 2021$1,370 $1,598 $914 $8,350 $12,232 
Adjustment due to reserve flooring$— $1 $— $— $1 
Net liability for future policy benefits$1,370 $822 $726 $6,803 $9,721 
Less: reinsurance recoverable1,265 558 25 3,443 5,291 
Net liability for future policy benefits, after reinsurance recoverable$105 $264 $701 $3,360 $4,430 
Discounted expected future gross premiums$— $2,005 $1,158 $1,623 $4,786 
Expected future gross premiums$— $2,815 $1,395 $1,905 $6,115 
Expected future benefit payments$1,707 $2,159 $1,217 $11,568 $16,651 
Weighted average interest accretion rate4.2 %6.5 %5.9 %5.3 %
Weighted average discount rate2.6 %2.8 %2.8 %2.9 %
Weighted average duration of liability (in years)78910
Life Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceLong Term Care InsuranceTotal,
All Products
(in millions, except percentages)
Present Value of Expected Net Premiums:
Balance at January 1, 2022
$— $777 $188 $1,547 $2,512 
Beginning balance at original discount rate— 636 155 1,320 2,111 
Effect of changes in cash flow assumptions— 1 1 52 54 
Effect of actual variances from expected experience— 47 (22)(48)(23)
Adjusted beginning of year balance$— $684 $134 $1,324 $2,142 
Issuances42 57 12 — 111 
Interest accrual— 34 7 65 106 
Net premiums collected(42)(67)(16)(169)(294)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$— $708 $137 $1,220 $2,065 
Effect of changes in discount rate assumptions— (22)(3)(13)(38)
Balance at December 31, 2022
$— $686 $134 $1,207 $2,027 
Present Value of Future Policy Benefits:
Balance at January 1, 2022
$1,370 $1,598 $914 $8,350 $12,232 
Beginning balance at original discount rate1,231 1,255 688 6,595 9,769 
Effect of changes in cash flow assumptions— (8)1 42 35 
Effect of actual variances from expected experience(13)52 (28)(36)(25)
Adjusted beginning of year balance$1,218 $1,299 $661 $6,601 $9,779 
Issuances42 57 12 — 111 
Interest accrual49 73 38 336 496 
Benefit payments(154)(116)(42)(368)(680)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$1,155 $1,313 $669 $6,569 $9,706 
Effect of changes in discount rate assumptions(90)6 27 (130)(187)
Balance at December 31, 2022
$1,065 $1,319 $696 $6,439 $9,519 
Adjustment due to reserve flooring$— $3 $— $— $3 
Net liability for future policy benefits$1,065 $636 $562 $5,232 $7,495 
Less: reinsurance recoverable949 443 19 2,649 4,060 
Net liability for future policy benefits, after reinsurance recoverable$116 $193 $543 $2,583 $3,435 
Discounted expected future gross premiums$— $1,855 $926 $1,381 $4,162 
Expected future gross premiums$— $3,183 $1,331 $1,908 $6,422 
Expected future benefit payments$1,595 $2,234 $1,169 $11,229 $16,227 
Weighted average interest accretion rate4.1 %6.4 %6.1 %5.2 %
Weighted average discount rate5.2 %5.5 %5.4 %5.4 %
Weighted average duration of liability (in years)6789
Life Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceLong Term Care InsuranceTotal,
All Products
(in millions, except percentages)
Present Value of Expected Net Premiums:
Balance at January 1, 2023
$— $686 $134 $1,207 $2,027 
Beginning balance at original discount rate— 708 137 1,220 2,065 
Effect of changes in cash flow assumptions— (3)— (1)(4)
Effect of actual variances from expected experience— 2 (10)(14)(22)
Adjusted beginning of year balance$— $707 $127 $1,205 $2,039 
Issuances76 27 6 — 109 
Interest accrual— 18 3 30 51 
Net premiums collected(76)(35)(7)(77)(195)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$— $717 $129 $1,158 $2,004 
Effect of changes in discount rate assumptions— (18)(3)(11)(32)
Balance at June 30, 2023
$— $699 $126 $1,147 $1,972 
Present Value of Future Policy Benefits:
Balance at January 1, 2023
$1,065 $1,319 $696 $6,439 $9,519 
Beginning balance at original discount rate1,155 1,313 669 6,569 9,706 
Effect of changes in cash flow assumptions— (3)— (2)(5)
Effect of actual variances from expected experience(3)2 (15)(10)(26)
Adjusted beginning of year balance$1,152 $1,312 $654 $6,557 $9,675 
Issuances76 27 6 — 109 
Interest accrual24 37 18 165 244 
Benefit payments(76)(71)(21)(196)(364)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$1,176 $1,305 $657 $6,526 $9,664 
Effect of changes in discount rate assumptions(84)10 29 (83)(128)
Balance at June 30, 2023
$1,092 $1,315 $686 $6,443 $9,536 
Adjustment due to reserve flooring$— $5 $— $— $5 
Net liability for future policy benefits$1,092 $621 $560 $5,296 $7,569 
Less: reinsurance recoverable906 434 21 2,679 4,040 
Net liability for future policy benefits, after reinsurance recoverable$186 $187 $539 $2,617 $3,529 
Discounted expected future gross premiums$— $1,833 $908 $1,319 $4,060 
Expected future gross premiums$— $3,110 $1,300 $1,808 $6,218 
Expected future benefit payments$1,638 $2,193 $1,141 $11,019 $15,991 
Weighted average interest accretion rate4.2 %6.3 %6.2 %5.1 %
Weighted average discount rate5.2 %5.4 %5.4 %5.3 %
Weighted average duration of liability (in years)6789
The amount of revenue and interest recognized in the Statement of Operations was as follows:
Six Months Ended June 30,
2023
Gross PremiumsInterest Expense
(in millions)
Life contingent payout annuities$83 $24 
Term and whole life insurance84 19 
Disability insurance62 15 
Long term care insurance89 135 
Total$318 $193 
Years Ended December 31,
20222021
Gross PremiumsInterest ExpenseGross PremiumsInterest Expense
(in millions)
Life contingent payout annuities$45 $49 $39 $53 
Term and whole life insurance169 39 166 41 
Disability insurance127 31 131 30 
Long term care insurance189 271 192 274 
Total$530 $390 $528 $398 
Balances of and changes in additional liabilities related to insurance guarantees
The balances of and changes in additional liabilities related to insurance guarantees were as follows:
Universal Life InsuranceVariable Universal Life InsuranceOther Life InsuranceTotal,
All Products
(in millions, except percentages)
Balance at January 1, 2023
$1,100 $74 $12 $1,186 
Interest accrual17 3 — 20 
Benefit accrual66 4 1 71 
Benefit payments(20)(7)(1)(28)
Effect of actual variances from expected experience(12)(1)(2)(15)
Impact of change in net unrealized (gains) losses on securities5 — 2 7 
Balance at June 30, 2023
$1,156 $73 $12 $1,241 
Weighted average interest accretion rate2.9 %7.1 %3.9 %
Weighted average discount rate3.2 %7.1 %4.0 %
Weighted average duration of reserves (in years)1086
Universal Life InsuranceVariable Universal Life InsuranceOther Life InsuranceTotal,
All Products
(in millions, except percentages)
Balance at January 1, 2022
$1,120 $76 $46 $1,242 
Interest accrual32 5 1 38 
Benefit accrual108 8 — 116 
Benefit payments(43)(14)(4)(61)
Effect of actual variances from expected experience(19)2 (2)(19)
Impact of change in net unrealized (gains) losses on securities(98)(3)(29)(130)
Balance at December 31, 2022
$1,100 $74 $12 $1,186 
Weighted average interest accretion rate2.9 %7.0 %4.1 %
Weighted average discount rate3.2 %7.1 %4.0 %
Weighted average duration of reserves (in years)1086
Changes in unearned revenue
The following tables summarize the balances of and changes in unearned revenue, including the January 1, 2021 adoption of ASU 2018-12:
Universal Life InsuranceVariable Universal Life InsuranceIndexed Universal Life InsuranceTotal,
All Products
(in millions)
Pre-adoption balance at December 31, 2020$19 $76 $— $95 
Effect of shadow reserve adjustments5 10 153 168 
Post-adoption balance at January 1, 202124 86 153 263 
Deferral of revenue3 34 55 92 
Amortization(1)(8)(13)(22)
Balance at December 31, 2021$26 $112 $195 $333 
Balance at January 1, 2022
$26 $112 $195 $333 
Deferral of revenue2 48 54 104 
Amortization(1)(10)(16)(27)
Balance at December 31, 2022
$27 $150 $233 $410 
Balance at January 1, 2023
$27 $150 $233 $410 
Deferral of revenue1 28 26 55 
Amortization(1)(6)(9)(16)
Balance at June 30, 2023
$27 $172 $250 $449