Company: L
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0000060086-25-000036
Chunk: 161

Company: LOEWS CORP
Filing Date: 2025-02-11
Form: 10-K
Item: Item 3
Chunk 161
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 expense associated with the long-term care business recognized on the Consolidated Statement of Operations.Year Ended December 31202420232022(In millions)   Earned premiums$437 $451 $473 Interest expense741 760 763 The following table presents undiscounted expected future benefit and expense payments and undiscounted expected future gross premiums.December 31,20242023(In millions)Expected future benefit and expense payments$31,712 $32,851 Expected future gross premiums5,183 5,414 Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $3.6 billion and $3.8 billion as of December 31, 2024 and 2023.The weighted average effective duration of the LFPB calculated using the original locked in discount rate was 11 years as of December 31, 2024 and 2023.  The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.December 31,20242023Original locked in discount rate5.20 %5.22 %Upper-medium grade fixed income instrument discount rate5.51 4.94 

For the years ended December 31, 2024 and 2023, immediate charges to net income resulting from adverse development in certain cohorts where the NPR exceeded 100% were $159 million and $164 million. For the years ended December 31, 2024 and 2023, the portion of losses recognized in a prior period due to NPR exceeding 100% for certain cohorts which, due to favorable development, was reversed through net income were $29 million and $42 million. 

Note 10. Leases

Lease agreements primarily cover office facilities and machinery and equipment and expire at various dates. Leases, predominantly operating leases, are included in Other assets and Other liabilities on the Consolidated Balance Sheets. The lease agreements do not contain significant residual value guarantees, restrictions or covenants.Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payments is typically the applicable secured borrowing rate, as most of the leases do not provide an implicit rate. The operating lease right of use asset was $320 million and $302 million and the operating lease liability was $406 million and $384 million at December 31,