Market Risk Benefits

3 Months Ended

Mar. 31, 2024

Insurance [Abstract]

Market Risk Benefits

MARKET RISK BENEFITS

The following table provides the balances of and changes in the Company’s market risk benefits for the three months ended March 31, 2024 and 2023 (dollars in millions):

	U.S. and Latin America – Financial Solutions
	Three months ended March 31,
	2024		2023
Balance, beginning of year	$	249	$	247
Balance, beginning of year, before effect of changes in the instrument-specific credit risk	253		263
Interest accrual	3		4
Attributed fees collected	6		6
Benefit payments	—		—
Effect of changes in interest rates	(25)		21
Effect of changes in equity markets	(21)		(17)
Effect of changes in volatility	—		(5)
Other market impacts	(4)		—
Actual policyholder behavior different from expected behavior	6		5
Balance, end of period, before effect of changes in the instrument-specific credit risk	218		277
Effect of changes in the instrument-specific credit risk	(4)		(18)
Balance, end of period	214		259
Less: reinsurance recoverable	—		—
Balance, end of period, after reinsurance	$	214	$	259
Net amount at risk	$	1,329	$	1,428
Weighted average attained age of contract holders (in years)	71		71

The reconciliation of the rollforward for market risk benefits to the condensed consolidated balance sheets as of March 31, 2024 and 2023 is as follows (dollars in millions):

	March 31,						March 31,
	2024						2023
	Asset (1)		Liability		Net		Asset (1)		Liability		Net
U.S. and Latin America – Financial Solutions	$	14	$	228	$	(214)	$	2	$	261	$	(259)
Total market risk benefits	$	14	$	228	$	(214)	$	2	$	261	$	(259)

(1)Included in Other assets

Fair Value Measurement

See Note 12 – “Fair Value of Assets and Liabilities” for information about fair value measurement of assets and liabilities, except for market risk benefits.

Market risk benefits are classified within Level 3 on the fair value hierarchy. The fair value of market risk benefits is monitored through the use of attribution reports to quantify the effect of underlying sources of fair value change, including capital market inputs based on policyholder account values, interest rates and short-term and long-term implied volatility from period to period.

During the three months ended March 31, 2024 and 2023, there were no material changes made to the inputs in the market risk benefits calculations, and nonfinancial assumptions were unchanged.