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LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Policyholder Account Balance and Liability for Unpaid Claims and Claims Adjustment Expense

The following tables reconcile the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheets:


	December 31, 2023
	(in millions)
Reconciliation
Payout - Legacy	$	340
UL (1)	344
Other (2)	365
Subtotal	1,049
Other policy funds (3)	604
Grand total	$	1,653

______________

(1)Represents the SOP NLG Rider on UL contracts assumed from Equitable Financial.

(2)Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits.

(3)Includes $415 million of URL of which $413 million is covered in Note 5 of the Notes to these Consolidated Financial Statements.


	December 31, 2022
	(in millions)
Reconciliation
Universal Life (1)	$	58
Other (2)	220
Future policyholder benefits, total	278
Other policyholder liabilities	391
Total	$	669

______________

(1)Represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Internal Reinsurance Transaction described further in Note 1 of the Notes to these Consolidated Financial Statements, these are no longer material and are not disclosed separately.

(2)Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits.

Schedule of Policyholder Account Balance

The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts.

The payout annuities result from annuitization of current contracts. Inflows are the liquidation of the account values not premiums:


	Year Ended December 31,
	Payout-Legacy
	2023		2022
	(Dollars in millions)
Present Value of Expected Future Policy Benefits
Balance, beginning of period	$	—	$	—
Beginning balance of original discount rate	—		—
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	—		—
Adjusted beginning of period balance	—		—
Issuances	333		—
Interest accrual	—		—
Benefits payments	—		—
Ending balance at original discount rate	333		—
Effect of changes in discount rate assumptions	7		—
Balance, end of period	$	340	$	—

Net liability for future policy benefits	$	340	$	—
Less: Reinsurance recoverable	—		—
Net liability for future policy benefits, after reinsurance recoverable	$	340	$	—

Weighted-average duration of liability for future policyholder benefits (years)	7.7		—

The following tables reconcile the policyholders account balances to the policyholders’ account balance liability in the consolidated balance sheets:


	December 31, 2023
	(in millions)
Policyholders’ account balance reconciliation
UL	$	1,186
IUL	2,431
EI	1,964
EG	6,619
SCS	40,353
Other (1)	(27,590)
Total	$	24,963

______________

(1)Includes $(30.3) billion of assumed fair value of the modco reinsurance with Equitable Financial.


	December 31, 2022
	(in millions)
Policyholders’ account balance reconciliation
IUL	$	1,962
VUL	655
GMxB Core	27
IE	7
SCS	242
Reinsured	819
Other	39
Total	$	3,751

The following tables summarize the balances and changes in policyholders’ account balances:


	Year Ended December 31, 2023
	UL		IUL		EI		EG		SCS (1)
	(Dollars in millions)
Balance, beginning of year	$	—	$	1,962	$	—	$	—	242
Issuances (2)	1,208		349		2,213		6,818		31,189
Premiums received	361		236		7		262		1
Policy charges	(376)		(192)		—		(3)		(6)
Surrenders and withdrawals	(11)		(69)		(251)		(720)		(1,880)
Benefit payments	(23)		(8)		(20)		(17)		(172)
Net transfers from (to) separate account	—		—		(30)		110		7,132
Interest credited (3)	27		153		45		169		3,847
Balance, end of year	$	1,186	$	2,431	$	1,964	$	6,619	$	40,353

Weighted-average crediting rate	3.50%		2.43%		2.87%		2.41%		—%
Net amount at risk (4)	$	16,062	$	19,148	$	98	$	6	$	1
Cash surrender value	$	1,036	$	1,850	$	1,959	$	6,573	$	37,562

______________

(1)SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Consolidated Financial Statements.

(3)SCS includes amounts related to the change in embedded derivative.

(4)For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder.


	Year Ended December 31, 2022
	IUL		VUL		GMxB Core		Reinsured (2)
	(Dollars in millions)
Balance, beginning of year	$	1,973	$	614	$	13	$	866
Issuances	—		—		—		—
Premiums received	246		17		17		52
Policy charges	(177)		(35)		(3)		(31)
Surrenders and withdrawals	(49)		—		(1)		(132)
Benefit payments	(7)		(8)		—		(21)
Net transfers from (to) separate account	—		49		—		47
Interest credited (3)	(24)		18		1		36
Other	—		—		—		2
Balance, end of year	$	1,962	$	655	$	27	$	819

Weighted-average crediting rate	2.20%		3.52%		1.00%		4.39%
Net amount at risk (4)	$	18,092	$	30,067	$	13	$	4,120
Cash surrender value	$	1,494	$	528	$	29	$	818

___________

(1)SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account.

(2)Reinsured primarily reflects Protective Life reinsured business.

(3)SCS includes amounts related to the change in embedded derivative.

Separate Account - Summary

The following tables reconcile the Separate Account liabilities to the Separate Account liability balance in the consolidated balance sheets:


	December 31,
	2023		2022
	(in millions)
Separate Account Reconciliation
VUL	$	2,128	$	1,653
GMxB Core	2,166		756
IE	226		26
Reinsured	1,022		913
Other	212		26
Total	$	5,754	$	3,374

The following tables present the balances of and changes in Separate Account liabilities:


	Year Ended December 31, 2023
	VUL		GMxB Core		IE		Reinsured (2)
	(in millions)
Balance, beginning of year	$	1,653	$	756	$	26	$	913
Premiums and deposits	407		1,117		511		21
Policy charges	(133)		(12)		—		(32)
Surrenders and withdrawals	(47)		(37)		(6)		(70)
Benefit payments	(10)		(6)		—		(16)
Investment performance (1)	315		188		15		(2)
Net transfers from (to) general account	(57)		160		(320)		208
Other charges	—		—		—		—
Balance, end of year	$	2,128	$	2,166	$	226	$	1,022

Cash surrender value	$	1,796	$	2,011	$	216	$	—

_______________

(1)Investment performance is reflected net of mortality and expense fees.

(2)Reinsured primarily reflects Protective Life reinsured ceded business.



	VUL		GMxB Core		IE		Reinsured (1)

Balance, beginning of year	$	1,832	$	315	$	—	$	1,244
Premiums and deposits	358		536		—		—
Policy charges	(116)		(4)		33		(35)
Surrenders and withdrawals	(28)		(12)		—		—
Benefit payments	(9)		(2)		—		—
Investment performance (2)	(335)		(77)		—		(247)
Net transfers from (to) general account	(49)		—		(7)		(49)
Other charges	—		—		—		—
Balance, end of year	$	1,653	$	756	$	26	$	913

Cash surrender value	$	1,338	$	693	$	25	$	—

______________

(1)Reinsured primarily reflects Protective Life reinsured ceded business.

(2)Investment performance is reflected net of mortality and expense fees.

Schedule of Liability for Future Policy Benefits, Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefits and Expenses

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts:


	December 31,
	2023		2022
	(in millions)
Payout-Legacy
Expected future benefit payments and expenses (undiscounted)	$	508	$	—
Expected future gross premiums (undiscounted)	—		—
Expected future benefit payments and expenses (discounted)	340		—
Expected future gross premiums (discounted)	—		—

Schedule of Liability for Future Policy Benefits, Revenue and Interest Accretion

The following table provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities :


	Year Ended December 31,
	2023		2022		2021		2023		2022		2021
	Gross Premium						Interest Accretion
	(in millions)
Revenue and Interest Accretion
Payout - Legacy (1)	$	85	$	—	$	—	$	7	$	—	$	—
Total	$	85	$	—	$	—	$	7	$	—	$	—

______________

(1)Gross premium reflected is the liquidation of Account Value at time of annuitization.

Schedule of Liability for Future Policy Benefits, Weighted Average Interest Rates

The following table provides the weighted average interest rates for the liability for future policy benefits:


	December 31, 2023		December 31, 2022
Weighted Average Interest Rate
Payout-Legacy
Interest accretion rate	5.3	%	—	%
Current discount rate	5.0	%	—	%

Schedule of Balances of and Changes in Additional Liabilities Related to Insurance Guarantees

The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities:


	Year Ended December 31,
		2023		2022
	UL (1)	Universal Life (2)
		(Dollars in millions)
Balance, beginning of year		$	—	$	57
Beginning balance before AOCI adjustments		—		55
Effect of changes in interest rate and cash flow assumptions and model changes		6		1
Effect of actual variances from expected experience		2		(3)
Adjusted beginning of period balance		8		53
Issuances (3)		322		—
Interest accrual		7		3
Net assessments collected		12		10
Benefit payments		(5)		—

Ending balance before shadow reserve adjustments		344		66
Effect of shadow reserve adjustment		—		(8)
Balance, end of year		$	344	$	58

Net liability for additional liability		$	344	$	58
Effect of reserve adjustment recorded in AOCI		—		—
Net liability for additional liability, after reinsurance recoverable		$	344	$	58

Weighted-average duration of additional liability - death benefit (years)		17.7		28.4

______________

(1)The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial.

(2)The 2022 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 1 of the Notes to these Consolidated Financial Statements, these are no longer material and are not disclosed separately.

(3)Issuances represent the UL SOP NLG business assumed from Equitable Financial on April 1, 2023.

The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities:


	Year Ended December 31, 2023
	Assessments		Interest Accretion
	(in millions)
Revenue and Interest Accretion
UL (1)	$	477	$	11
Total	$	477	$	11

_____________

(1)The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial.


	Year Ended December 31, 2022				Year Ended December 31, 2021
	Assessments		Interest Accretion		Assessments		Interest Accretion
	(in millions)
Revenue and Interest Accretion
Universal Life	$	18	$	3	$	16	$	2
Total	$	18	$	3	$	16	$	2

______________

(1)The 2022 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 1 of the Notes to these Consolidated Financial Statements, these are no longer material and are not disclosed separately.


	Year Ended December 31,
		2023		2022		2021
		Universal Life
Weighted Average Interest Rate
Interest accretion rate		4.5	%	5.5	%	5.5	%