Policyholder Account Balances, Future Policy Benefits and Claims (Tables)

12 Months Ended

Dec. 31, 2024

Policyholder Account Balance [Abstract]

Policyholder account balances, future policy benefits and claims

Policyholder account balances, future policy benefits and claims consisted of the following:


	December 31, 2024		December 31, 2023
	(in millions)
Policyholder account balances









Policyholder account balances	$	32,542	$	27,947

Future policy benefits




Reserve for future policy benefits	7,418		7,763
Deferred profit liability	118		81
Additional liabilities for insurance guarantees	1,389		1,321
Other insurance and annuity liabilities	192		213

Total future policy benefits	9,117		9,378
Policy claims and other policyholders’ funds	204		210
Total policyholder account balances, future policy benefits and claims	$	41,863	$	37,535

Balances of and changes in policyholder account balances

The balances of and changes in policyholder account balances were as follows:


	Variable Annuities			Structured Variable Annuities			Fixed Annuities			Fixed Indexed Annuities			Non-Life Contingent Payout Annuities
	(in millions, except percentages)
Balance at January 1, 2024	$	4,173		$	10,742		$	5,982		$	307		$	444
Contract deposits	56			4,005			39			—			101
Policy charges	(14)			(3)			—			—			—
Surrenders and other benefits	(628)			(383)			(856)			(16)			(110)

Net transfer from (to) separate account liabilities	(32)			—			—			—			—
Variable account index-linked adjustments	—			1,968			—			—			—
Interest credited	125			1			204			14			12
Balance at December 31, 2024	$	3,680		$	16,330		$	5,369		$	305		$	447

Weighted-average crediting rate	3.3		%	1.9		%	3.7		%	2.0		%	N/A

Cash surrender value (1)	$	3,658		$	15,467		$	5,365		$	279		N/A

	Universal Life Insurance			Variable Universal Life Insurance			Indexed Universal Life Insurance			Other Life Insurance			Total, All Products
	(in millions, except percentages)
Balance at January 1, 2024	$	1,474		$	1,569		$	2,755		$	501		$	27,947
Contract deposits	117			333			181			—			4,832
Policy charges	(173)			(93)			(124)			—			(407)
Surrenders and other benefits	(62)			(80)			(79)			(52)			(2,266)

Net transfer from (to) separate account liabilities	—			(145)			—			—			(177)
Variable account index-linked adjustments	—			—			—			—			1,968
Interest credited	49			63			161			16			645
Balance at December 31, 2024	$	1,405		$	1,647		$	2,894		$	465		$	32,542

Weighted-average crediting rate	3.6		%	3.9		%	2.3		%	4.0		%
Net amount at risk	$	8,312		$	57,473		$	13,593		$	130
Cash surrender value (1)	$	1,280		$	1,092		$	2,447		$	298


	Variable Annuities			Structured Variable Annuities			Fixed Annuities			Fixed Indexed Annuities			Non-Life Contingent Payout Annuities
	(in millions, except percentages)
Balance at January 1, 2023	$	4,752		$	6,410		$	6,799		$	312		$	471
Contract deposits	73			3,084			47			—			91
Policy charges	(10)			—			—			—			—
Surrenders and other benefits	(759)			(156)			(1,086)			(10)			(127)

Net transfer from (to) separate account liabilities	(25)			—			—			—			—
Variable account index-linked adjustments	—			1,403			—			—			—
Interest credited	142			1			222			5			9
Balance at December 31, 2023	$	4,173		$	10,742		$	5,982		$	307		$	444

Weighted-average crediting rate	3.3		%	1.8		%	3.6		%	2.0		%	N/A

Cash surrender value (1)	$	4,146		$	10,129		$	5,974		$	278		N/A

	Universal Life Insurance			Variable Universal Life Insurance			Indexed Universal Life Insurance			Other Life Insurance			Total, All Products
	(in millions, except percentages)
Balance at January 1, 2023	$	1,544		$	1,520		$	2,654		$	524		$	24,986
Contract deposits	123			272			193			1			3,884
Policy charges	(176)			(94)			(121)			—			(401)
Surrenders and other benefits	(69)			(78)			(53)			(44)			(2,382)

Net transfer from (to) separate account liabilities	—			(107)			—			—			(132)
Variable account index-linked adjustments	—			—			—			—			1,403
Interest credited	52			56			82			20			589
Balance at December 31, 2023	$	1,474		$	1,569		$	2,755		$	501		$	27,947

Weighted-average crediting rate	3.6		%	3.9		%	2.0		%	4.0		%
Net amount at risk	$	8,740		$	57,291		$	14,407		$	141
Cash surrender value (1)	$	1,330		$	1,065		$	2,271		$	326

(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 December 31, 2024 and 2023 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.


December 31, 2024
					Account Values with Crediting Rates
	Range of Guaranteed Minimum Crediting Rates				At 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 annuities	1	%	–	1.99%	$	24	$	95	$	65	$	17	$	—	$	201
	2	%	–	2.99%	112		—		—		—		—		112
	3	%	–	3.99%	1,894		7		—		1		—		1,902
	4	%	–	5.00%	1,412		—		—		—		—		1,412
	Total				$	3,442	$	102	$	65	$	18	$	—	$	3,627

Fixed accounts of structured variable annuities	1	%	–	1.99%	$	2	$	20	$	9	$	—	$	—	$	31
	2	%	–	2.99%	13		—		—		—		—		13
	3	%	–	3.99%	1		—		—		—		—		1
	4	%	–	5.00%	—		—		—		—		—		—
	Total				$	16	$	20	$	9	$	—	$	—	$	45

Fixed annuities	1	%	–	1.99%	$	85	$	237	$	152	$	89	$	14	$	577
	2	%	–	2.99%	22		14		2		—		—		38
	3	%	–	3.99%	2,410		—		—		—		—		2,410
	4	%	–	5.00%	2,331		—		—		—		—		2,331
	Total				$	4,848	$	251	$	154	$	89	$	14	$	5,356

Non-indexed accounts of fixed indexed annuities	1	%	–	1.99%	$	—	$	2	$	5	$	14	$	—	$	21
	2	%	–	2.99%	—		—		—		—		—		—
	3	%	–	3.99%	—		—		—		—		—		—
	4	%	–	5.00%	—		—		—		—		—		—
	Total				$	—	$	2	$	5	$	14	$	—	$	21

Universal life insurance	1	%	–	1.99%	$	—	$	—	$	—	$	—	$	—	$	—
	2	%	–	2.99%	50		4		15		—		—		69
	3	%	–	3.99%	821		—		4		6		—		831
	4	%	–	5.00%	473		4		—		—		—		477
	Total				$	1,344	$	8	$	19	$	6	$	—	$	1,377


					Account Values with Crediting Rates
	Range of Guaranteed Minimum Crediting Rates				At 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 insurance	1	%	–	1.99%	$	—		$	—		$	4		$	1		$	41		$	46
	2	%	–	2.99%	7			14			—			1			12			34
	3	%	–	3.99%	108			1			2			12			—			123
	4	%	–	5.00%	564			21			—			—			—			585
	Total				$	679		$	36		$	6		$	14		$	53		$	788

Non-indexed accounts of indexed universal life insurance	1	%	–	1.99%	$	—		$	—		$	4		$	2		$	—		$	6
	2	%	–	2.99%	—			125			—			—			—			125
	3	%	–	3.99%	—			—			—			—			—			—
	4	%	–	5.00%	—			—			—			—			—			—
	Total				$	—		$	125		$	4		$	2		$	—		$	131

Other life insurance	1	%	–	1.99%	$	—		$	—		$	—		$	—		$	—		$	—
	2	%	–	2.99%	—			—			—			—			—			—
	3	%	–	3.99%	28			—			—			—			—			28
	4	%	–	5.00%	268			—			—			—			—			268
	Total				$	296		$	—		$	—		$	—		$	—		$	296

Total	1	%	–	1.99%	$	111		$	354		$	239		$	123		$	55		$	882
	2	%	–	2.99%	204			157			17			1			12			391
	3	%	–	3.99%	5,262			8			6			19			—			5,295
	4	%	–	5.00%	5,048			25			—			—			—			5,073
	Total				$	10,625		$	544		$	262		$	143		$	67		$	11,641

Percentage of total account values that reset in:
Next 12 months					100.0		%	100.0		%	99.9		%	100.0		%	99.8		%	100.0		%
> 12 months to 24 months					—			—			—			—			—			—
> 24 months					—			—			0.1			—			0.2			—
Total					100.0		%	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%


December 31, 2023
					Account Values with Crediting Rates
	Range of Guaranteed Minimum Crediting Rates				At 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 annuities	1	%	–	1.99%	$	43	$	131	$	52	$	15	$	2	$	243
	2	%	–	2.99%	137		1		—		—		—		138
	3	%	–	3.99%	2,214		—		—		1		—		2,215
	4	%	–	5.00%	1,514		—		—		—		—		1,514
	Total				$	3,908	$	132	$	52	$	16	$	2	$	4,110


					Account Values with Crediting Rates
	Range of Guaranteed Minimum Crediting Rates				At 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 annuities	1	%	–	1.99%	$	1	$	18	$	7	$	2	$	—	$	28
	2	%	–	2.99%	11		—		—		—		—		11
	3	%	–	3.99%	—		—		—		—		—		—
	4	%	–	5.00%	—		—		—		—		—		—
	Total				$	12	$	18	$	7	$	2	$	—	$	39

Fixed annuities	1	%	–	1.99%	$	107	$	377	$	183	$	93	$	—	$	760
	2	%	–	2.99%	36		14		1		—		—		51
	3	%	–	3.99%	2,816		1		—		—		—		2,817
	4	%	–	5.00%	2,339		—		—		—		—		2,339
	Total				$	5,298	$	392	$	184	$	93	$	—	$	5,967

Non-indexed accounts of fixed indexed annuities	1	%	–	1.99%	$	—	$	2	$	7	$	13	$	—	$	22
	2	%	–	2.99%	—		—		—		—		—		—
	3	%	–	3.99%	—		—		—		—		—		—
	4	%	–	5.00%	—		—		—		—		—		—
	Total				$	—	$	2	$	7	$	13	$	—	$	22

Universal life insurance	1	%	–	1.99%	$	—	$	—	$	—	$	—	$	—	$	—
	2	%	–	2.99%	51		3		9		—		—		63
	3	%	–	3.99%	854		1		4		4		—		863
	4	%	–	5.00%	518		1		—		—		—		519
	Total				$	1,423	$	5	$	13	$	4	$	—	$	1,445

Fixed accounts of variable universal life insurance	1	%	–	1.99%	$	—	$	2	$	4	$	—	$	24	$	30
	2	%	–	2.99%	13		12		—		1		8		34
	3	%	–	3.99%	122		2		3		6		—		133
	4	%	–	5.00%	607		6		—		—		—		613
	Total				$	742	$	22	$	7	$	7	$	32	$	810

Non-indexed accounts of indexed universal life insurance	1	%	–	1.99%	$	—	$	—	$	2	$	—	$	—	$	2
	2	%	–	2.99%	128		—		—		—		—		128
	3	%	–	3.99%	—		—		—		—		—		—
	4	%	–	5.00%	—		—		—		—		—		—
	Total				$	128	$	—	$	2	$	—	$	—	$	130


					Account Values with Crediting Rates
	Range of Guaranteed Minimum Crediting Rates				At 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 insurance	1	%	–	1.99%	$	—		$	—		$	—		$	—		$	—		$	—
	2	%	–	2.99%	—			—			—			—			—			—
	3	%	–	3.99%	30			—			—			—			—			30
	4	%	–	5.00%	295			—			—			—			—			295
	Total				$	325		$	—		$	—		$	—		$	—		$	325

Total	1	%	–	1.99%	$	151		$	530		$	255		$	123		$	26		$	1,085
	2	%	–	2.99%	376			30			10			1			8			425
	3	%	–	3.99%	6,036			4			7			11			—			6,058
	4	%	–	5.00%	5,273			7			—			—			—			5,280
	Total				$	11,836		$	571		$	272		$	135		$	34		$	12,848

Percentage of total account values that reset in:
Next 12 months					99.9		%	99.5		%	99.3		%	100.0		%	100.0		%	99.9		%
> 12 months to 24 months					0.1			0.5			0.6			—			—			0.1
> 24 months					—			—			0.1			—			—			—
Total					100.0		%	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:


	Life Contingent Payout Annuities			Term and Whole Life Insurance			Disability Income Insurance			Long Term Care Insurance			Total, All Products
	(in millions, except percentages)
Present Value of Expected Net Premiums:
Balance at January 1, 2024	$	—		$	703		$	104		$	1,146		$	1,953
Beginning balance at original discount rate	—			708			105			1,137			1,950
Effect of changes in cash flow assumptions	—			57			(39)			55			73
Effect of actual variances from expected experience	—			(16)			(13)			(26)			(55)
Adjusted beginning of year balance	$	—		$	749		$	53		$	1,166		$	1,968
Issuances	201			63			9			—			273
Interest accrual	1			38			3			55			97
Net premiums collected	(202)			(76)			(6)			(149)			(433)
Derecognition (lapses)	—			—			—			—			—
Ending balance at original discount rate	$	—		$	774		$	59		$	1,072		$	1,905
Effect of changes in discount rate assumptions	—			(37)			(6)			(15)			(58)
Balance at December 31, 2024	$	—		$	737		$	53		$	1,057		$	1,847

Present Value of Future Policy Benefits:
Balance at January 1, 2024	$	1,164		$	1,325		$	661		$	6,561		$	9,711
Beginning balance at original discount rate	1,222			1,291			621			6,507			9,641
Effect of changes in cash flow assumptions	(24)			67			(61)			58			40
Effect of actual variances from expected experience	(8)			(16)			(25)			(48)			(97)
Adjusted beginning of year balance	$	1,190		$	1,342		$	535		$	6,517		$	9,584
Issuances	201			63			9			—			273
Interest accrual	56			73			34			323			486
Benefit payments	(158)			(125)			(43)			(432)			(758)
Derecognition (lapses)	—			—			—			—			—
Ending balance at original discount rate	$	1,289		$	1,353		$	535		$	6,408		$	9,585
Effect of changes in discount rate assumptions	(85)			(31)			10			(221)			(327)
Balance at December 31, 2024	$	1,204		$	1,322		$	545		$	6,187		$	9,258

Adjustment due to reserve flooring	$	—		$	7		$	—		$	—		$	7

Net liability for future policy benefits	$	1,204		$	592		$	492		$	5,130		$	7,418
Less: reinsurance recoverable	759			424			20			2,591			3,794
Net liability for future policy benefits, after reinsurance recoverable	$	445		$	168		$	472		$	2,539		$	3,624

Discounted expected future gross premiums	$	—		$	1,672		$	836		$	1,247		$	3,755
Expected future gross premiums	$	—		$	2,921		$	1,196		$	1,713		$	5,830
Expected future benefit payments	$	1,846		$	2,286		$	899		$	10,522		$	15,553

Weighted average interest accretion rate	4.5		%	6.0		%	6.3		%	5.0		%
Weighted average discount rate	5.4		%	5.6		%	5.6		%	5.7		%

Weighted average duration of liability (in years)	6			7			7			8


	Life Contingent Payout Annuities			Term and Whole Life Insurance			Disability Income Insurance			Long Term Care Insurance			Total, 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	—			(19)			(19)			19			(19)
Effect of actual variances from expected experience	—			(2)			(18)			(3)			(23)
Adjusted beginning of year balance	$	—		$	687		$	100		$	1,236		$	2,023
Issuances	177			55			12			—			244
Interest accrual	1			36			5			59			101
Net premiums collected	(178)			(70)			(12)			(158)			(418)
Derecognition (lapses)	—			—			—			—			—
Ending balance at original discount rate	$	—		$	708		$	105		$	1,137		$	1,950
Effect of changes in discount rate assumptions	—			(5)			(1)			9			3
Balance at December 31, 2023	$	—		$	703		$	104		$	1,146		$	1,953

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 rate	1,155			1,313			669			6,569			9,706
Effect of changes in cash flow assumptions	—			(18)			(25)			9			(34)
Effect of actual variances from expected experience	(10)			(1)			(29)			5			(35)
Adjusted beginning of year balance	$	1,145		$	1,294		$	615		$	6,583		$	9,637
Issuances	177			56			11			—			244
Interest accrual	50			73			37			329			489
Benefit payments	(150)			(132)			(42)			(405)			(729)
Derecognition (lapses)	—			—			—			—			—
Ending balance at original discount rate	$	1,222		$	1,291		$	621		$	6,507		$	9,641
Effect of changes in discount rate assumptions	(58)			34			40			54			70
Balance at December 31, 2023	$	1,164		$	1,325		$	661		$	6,561		$	9,711

Adjustment due to reserve flooring	$	—		$	5		$	—		$	—		$	5

Net liability for future policy benefits	$	1,164		$	627		$	557		$	5,415		$	7,763
Less: reinsurance recoverable	880			440			22			2,738			4,080
Net liability for future policy benefits, after reinsurance recoverable	$	284		$	187		$	535		$	2,677		$	3,683

Discounted expected future gross premiums	$	—		$	1,764		$	904		$	1,325		$	3,993
Expected future gross premiums	$	—		$	2,938		$	1,269		$	1,786		$	5,993
Expected future benefit payments	$	1,726		$	2,166		$	1,068		$	10,850		$	15,810

Weighted average interest accretion rate	4.2		%	6.2		%	6.1		%	5.0		%
Weighted average discount rate	4.9		%	5.1		%	5.1		%	5.1		%

Weighted average duration of liability (in years)	7			7			8			8

The amount of revenue and interest recognized in the Statement of Income was as follows:


	Years Ended December 31,
	2024				2023
	Gross Premiums		Interest Expense		Gross Premiums		Interest Expense
	(in millions)
Life contingent payout annuities	$	226	$	55	$	196	$	49
Term and whole life insurance	172		35		169		37
Disability income insurance	119		31		124		32
Long term care insurance	179		268		185		270
Total	$	696	$	389	$	674	$	388

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 Insurance			Variable Universal Life Insurance			Other Life Insurance			Total, All Products
	(in millions, except percentages)
Balance at January 1, 2024	$	1,225		$	81		$	15		$	1,321
Interest accrual	37			6			1			44
Benefit accrual	133			8			3			144
Benefit payments	(69)			(13)			(5)			(87)
Effect of actual variances from expected experience	(2)			(1)			(1)			(4)
Impact of change in net unrealized (gains) losses on securities	(23)			(1)			(5)			(29)
Balance at December 31, 2024	$	1,301		$	80		$	8		$	1,389

Weighted average interest accretion rate	3.0		%	7.0		%	3.9		%
Weighted average discount rate	3.2		%	7.1		%	4.0		%

Weighted average duration of reserves (in years)	10			8			6


	Universal Life Insurance			Variable Universal Life Insurance			Other Life Insurance			Total, All Products
	(in millions, except percentages)
Balance at January 1, 2023	$	1,100		$	74		$	12		$	1,186
Interest accrual	35			5			1			41
Benefit accrual	128			8			2			138
Benefit payments	(50)			(18)			(4)			(72)
Effect of actual variances from expected experience	(13)			11			(2)			(4)
Impact of change in net unrealized (gains) losses on securities	25			1			6			32
Balance at December 31, 2023	$	1,225		$	81		$	15		$	1,321

Weighted average interest accretion rate	3.0		%	6.9		%	4.0		%
Weighted average discount rate	3.2		%	7.1		%	4.0		%

Weighted average duration of reserves (in years)	10			8			6

Changes in unearned revenue

The following tables summarize the balances of and changes in unearned revenue:


	Universal Life Insurance		Variable Universal Life Insurance		Indexed Universal Life Insurance		Total, All Products
	(in millions)
Balance at January 1, 2024	$	27	$	196	$	266	$	489
Deferral of revenue	—		70		51		121
Amortization	(1)		(17)		(22)		(40)
Balance at December 31, 2024	$	26	$	249	$	295	$	570

Balance at January 1, 2023	$	27	$	150	$	233	$	410
Deferral of revenue	1		59		52		112
Amortization	(1)		(13)		(19)		(33)
Balance at December 31, 2023	$	27	$	196	$	266	$	489

RIVERSOURCE LIFE INSURANCE CO 10-K