Policyholders' Account Balances

6 Months Ended

Jun. 30, 2023

Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract]

Liabilities for Future Policy Benefits

LIABILITY FOR FUTURE POLICY BENEFITS

Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below:

•Benefit Reserves;

•Deferred Profit Liability; and

•Additional Insurance Reserves

In 2023, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed Benefit Reserves and Deferred Profit Liability, net of the impact of flooring these liabilities at zero for each issue year cohort. This net impact was primarily due to updates to lapse and claim incidence assumptions on Long-Term Care policies. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed Additional Insurance Reserves, primarily due to unfavorable model refinements, partially offset by favorable updates to economic assumptions, including expected future rates of returns on investments on universal life policies with secondary guarantees.    

In 2022, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed Benefit Reserves and Deferred Profit Liability, net of the impact of flooring these liabilities at zero for each issue year cohort. This net impact was primarily due to updates to mortality assumptions on individual term life policies. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed Additional Insurance Reserves, primarily due to updates to policyholder behavior assumptions on universal life policies with secondary guarantees.

Benefit Reserves

The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits.

	Six Months Ended June 30, 2023
	Present Value of Expected Net Premiums
	Retirement Strategies		Individual Life		International Businesses				Corporate and Other
	Institutional		Term Life		Life Planner		Gibraltar Life and Other		Long-Term Care		Total
	(in millions)
Balance, BOP	$	52,620	$	11,282	$	30,689	$	28,951	$	2,932	$	126,474
Effect of cumulative changes in discount rate assumptions, BOP	14,349		572		1,354		1,326		103		17,704
Balance at original discount rate, BOP	66,969		11,854		32,043		30,277		3,035		144,178
Effect of assumption update	(1,117)		(1)		78		(175)		266		(949)
Effect of actual variances from expected experience and other activity	378		(81)		(417)		(332)		121		(331)
Adjusted balance, BOP	66,230		11,772		31,704		29,770		3,422		142,898
Issuances	5,783		338		1,253		865		0		8,239
Net premiums / considerations collected	(4,944)		(711)		(2,106)		(1,928)		(154)		(9,843)
Interest accrual	1,049		270		458		402		77		2,256
Foreign currency adjustment	3,816		0		(1,080)		(1,214)		0		1,522
Other adjustments	0		0		93		0		0		93
Balance at original discount rate, EOP	71,934		11,669		30,322		27,895		3,345		145,165
Effect of cumulative changes in discount rate assumptions, EOP	(18,002)		(497)		(594)		(614)		(89)		(19,796)
Balance, EOP	$	53,932	$	11,172	$	29,728	$	27,281	$	3,256	$	125,369
Other businesses, EOP											85
Total balance, EOP											$	125,454

	Six Months Ended June 30, 2023
	Present Value of Expected Future Policy Benefits
	Retirement Strategies		Individual Life		International Businesses				Corporate and Other
	Institutional		Term Life		Life Planner		Gibraltar Life and Other		Long-Term Care		Total
	(in millions)
Balance, BOP	$	117,754	$	19,288	$	78,639	$	80,331	$	10,685	$	306,697
Effect of cumulative changes in discount rate assumptions, BOP	20,170		1,012		3,719		11,266		1,216		37,383
Balance at original discount rate, BOP	137,924		20,300		82,358		91,597		11,901		344,080
Effect of assumption update	(1,289)		(1)		145		44		357		(744)
Effect of actual variances from expected experience and other activity	351		(96)		(381)		(323)		136		(313)
Adjusted balance, BOP	136,986		20,203		82,122		91,318		12,394		343,023
Issuances	5,783		338		1,253		865		0		8,239
Interest accrual	2,457		472		1,325		1,162		292		5,708
Benefit payments	(5,643)		(779)		(1,777)		(2,270)		(122)		(10,591)
Foreign currency adjustment	3,898		0		(3,243)		(4,355)		0		(3,700)
Other adjustments	4		(13)		179		(11)		0		159
Balance at original discount rate, EOP	143,485		20,221		79,859		86,709		12,564		342,838
Effect of cumulative changes in discount rate assumptions, EOP	(22,882)		(823)		715		(6,148)		(999)		(30,137)
Balance, EOP	$	120,603	$	19,398	$	80,574	$	80,561	$	11,565	$	312,701
Other businesses, EOP											1,707
Total balance, EOP											$	314,408

	Six Months Ended June 30, 2023
	Net Liability for Future Policy Benefits - Benefit Reserves
	Retirement Strategies		Individual Life		International Businesses				Corporate and Other
	Institutional		Term Life		Life Planner		Gibraltar Life and Other		Long-Term Care		Total
	(in millions)
Balance, EOP, pre-flooring	$	66,671	$	8,225	$	50,846	$	53,279	$	8,309	$	187,330
Flooring impact, EOP	1		0		17		2		0		20
Balance, EOP, post-flooring	66,672		8,225		50,863		53,281		8,309		187,350
Less: Reinsurance recoverable	0		707		104		211		0		1,022
Balance after reinsurance recoverable, EOP, post-flooring	$	66,672	$	7,518	$	50,759	$	53,070	$	8,309	$	186,328
Other businesses, EOP(1)											1,553
Total balance after reinsurance recoverable, EOP											$	187,881

	Six Months Ended June 30, 2022
	Present Value of Expected Net Premiums
	Retirement Strategies		Individual Life		International Businesses				Corporate and Other
	Institutional		Term Life		Life Planner		Gibraltar Life and Other		Long-Term Care		Total
	(in millions)
Balance, BOP	$	68,791	$	12,971	$	39,517	$	37,815	$	3,585	$	162,679
Effect of cumulative changes in discount rate assumptions, BOP	(4,414)		(1,892)		(3,516)		(3,239)		(644)		(13,705)
Balance at original discount rate, BOP	64,377		11,079		36,001		34,576		2,941		148,974
Effect of assumption update	249		1,313		(76)		(176)		49		1,359
Effect of actual variances from expected experience and other activity	282		40		(719)		(274)		132		(539)
Adjusted balance, BOP	64,908		12,432		35,206		34,126		3,122		149,794
Issuances	2,436		204		1,831		1,429		0		5,900
Net premiums / considerations collected	(3,232)		(689)		(2,277)		(2,215)		(139)		(8,552)
Interest accrual	800		266		487		446		72		2,071
Foreign currency adjustment	(6,646)		0		(2,644)		(2,545)		0		(11,835)
Other adjustments	0		(8)		121		0		0		113
Balance at original discount rate, EOP	58,266		12,205		32,724		31,241		3,055		137,491
Effect of cumulative changes in discount rate assumptions, EOP	(8,098)		22		(6)		(23)		70		(8,035)
Balance, EOP	$	50,168	$	12,227	$	32,718	$	31,218	$	3,125	$	129,456
Other businesses, EOP											109
Total balance, EOP											$	129,565

	Six Months Ended June 30, 2022
	Present Value of Expected Future Policy Benefits
	Retirement Strategies		Individual Life		International Businesses				Corporate and Other
	Institutional		Term Life		Life Planner		Gibraltar Life and Other		Long-Term Care		Total
	(in millions)
Balance, BOP	$	142,593	$	22,768	$	109,562	$	114,846	$	15,810	$	405,579
Effect of cumulative changes in discount rate assumptions, BOP	(13,706)		(3,876)		(21,554)		(13,476)		(4,482)		(57,094)
Balance at original discount rate, BOP	128,887		18,892		88,008		101,370		11,328		348,485
Effect of assumption update	(187)		1,777		(115)		(164)		49		1,360
Effect of actual variances from expected experience and other activity	190		54		(795)		(235)		152		(634)
Adjusted balance, BOP	128,890		20,723		87,098		100,971		11,529		349,211
Issuances	2,436		204		1,831		1,429		0		5,900
Interest accrual	1,992		460		1,357		1,235		273		5,317
Benefit payments	(4,880)		(810)		(1,642)		(2,590)		(119)		(10,041)
Foreign currency adjustment	(6,842)		0		(7,250)		(8,921)		0		(23,013)
Other adjustments	(418)		(15)		243		(8)		0		(198)
Balance at original discount rate, EOP	121,178		20,562		81,637		92,116		11,683		327,176
Effect of cumulative changes in discount rate assumptions, EOP	(10,638)		161		2,708		(4,876)		(178)		(12,823)
Balance, EOP	$	110,540	$	20,723	$	84,345	$	87,240	$	11,505	$	314,353
Other businesses, EOP											2,043
Total balance, EOP											$	316,396

	Six Months Ended June 30, 2022
	Net Liability for Future Policy Benefits - Benefit Reserves
	Retirement Strategies		Individual Life		International Businesses				Corporate and Other
	Institutional		Term Life		Life Planner		Gibraltar Life and Other		Long-Term Care		Total
	(in millions)
Balance, EOP, pre-flooring	$	60,372	$	8,497	$	51,627	$	56,021	$	8,380	$	184,897
Flooring impact, EOP	44		0		102		162		0		308
Balance, EOP, post-flooring	60,416		8,497		51,729		56,183		8,380		185,205
Less: Reinsurance recoverable	0		782		128		219		0		1,129
Balance after reinsurance recoverable, EOP, post-flooring	$	60,416	$	7,715	$	51,601	$	55,964	$	8,380	$	184,076
Other businesses, EOP(1)											1,852
Total balance after reinsurance recoverable, EOP											$	185,928

__________

(1)Reflects balance after reinsurance recoverable of $71 million and $81 million at June 30, 2023 and 2022, respectively.

The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the period indicated:

	Six Months Ended June 30, 2023
	Retirement Strategies			Individual Life			International Businesses						Corporate and Other
	Institutional			Term Life			Life Planner			Gibraltar Life and Other			Long-Term Care
	($ in millions)
Undiscounted expected future gross premiums	$	114,545		$	23,200		$	70,654		$	57,912		$	6,972
Discounted expected future gross premiums (at original discount rate)	$	79,109		$	15,427		$	54,694		$	46,591		$	4,561
Discounted expected future gross premiums (at current discount rate)	$	59,307		$	14,789		$	54,132		$	45,778		$	4,444
Undiscounted expected future benefits and expenses	$	220,313		$	31,195		$	140,232		$	142,232		$	30,913
Interest accrual	$	1,408		$	202		$	867		$	760		$	215
Gross premiums	$	5,335		$	923		$	3,340		$	3,174		$	222
Weighted-average duration of the liability in years (at original discount rate)	8			10			20			19			18
Weighted-average duration of the liability in years (at current discount rate)	8			10			20			18			18
Weighted-average interest rate (at original discount rate)	4.39		%	5.18		%	3.45		%	2.57		%	4.91		%
Weighted-average interest rate (at current discount rate)	5.30		%	5.28		%	2.85		%	2.75		%	5.47		%

	Six Months Ended June 30, 2022
	Retirement Strategies			Individual Life			International Businesses						Corporate and Other
	Institutional			Term Life			Life Planner			Gibraltar Life and Other			Long-Term Care
	($ in millions)
Undiscounted expected future gross premiums	$	87,851		$	23,901		$	75,418		$	65,827		$	7,122
Discounted expected future gross premiums (at original discount rate)	$	63,647		$	15,877		$	58,628		$	52,470		$	4,605
Discounted expected future gross premiums (at current discount rate)	$	54,888		$	15,911		$	59,093		$	52,619		$	4,714
Undiscounted expected future benefits and expenses	$	182,241		$	31,885		$	148,659		$	157,157		$	29,554
Interest accrual	$	1,192		$	194		$	870		$	789		$	201
Gross premiums	$	3,437		$	947		$	3,656		$	3,631		$	218
Weighted-average duration of the liability in years (at original discount rate)	9			11			21			21			19
Weighted-average duration of the liability in years (at current discount rate)	8			10			20			18			19
Weighted-average interest rate (at original discount rate)	4.19		%	5.25		%	3.44		%	2.52		%	4.91		%
Weighted-average interest rate (at current discount rate)	4.68		%	4.63		%	2.61		%	2.48		%	5.02		%

For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2.

For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter, such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss respectively.

For the first six months of 2023, there was an immaterial impact to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts.

For the first six months of 2022, there was a $206 million charge to net income for nonparticipating traditional and limited-pay business, where net premiums exceeded gross premiums for certain issue-year cohorts, partially offset by a $90 million gain reflecting the impact of ceded reinsurance on the affected cohorts. The unfavorable impact in the first six months of 2022 is primarily due to unfavorable assumption updates related to the term life business in Individual Life.

Deferred Profit Liability

The balances of and changes in Deferred Profit Liability as of and for the period indicated are as follows:

	Six Months Ended June 30, 2023
	Deferred Profit Liability
	Retirement Strategies		International Businesses
	Institutional		Life Planner		Gibraltar Life and Other		Total
	(in millions)
Balance, BOP	$	5,532	$	3,379	$	5,261	$	14,172
Flooring impact, BOP	0		0		1		1
Balance, BOP, pre-flooring	5,532		3,379		5,260		14,171
Effect of assumption update	35		(67)		(228)		(260)
Effect of actual variances from expected experience and other activity	19		(4)		(18)		(3)
Adjusted balance, BOP	5,586		3,308		5,014		13,908
Profits deferred	197		850		665		1,712
Interest accrual	113		71		76		260
Amortization	(282)		(579)		(512)		(1,373)
Foreign currency adjustment	14		(72)		(188)		(246)
Other adjustments	0		20		0		20
Balance, EOP, pre-flooring	5,628		3,598		5,055		14,281
Flooring impact, EOP	0		0		1		1
Balance, EOP	5,628		3,598		5,056		14,282
Less: Reinsurance recoverable	0		8		10		18
Balance after reinsurance recoverable	$	5,628	$	3,590	$	5,046	14,264
Other businesses(1)							149
Total balance after reinsurance recoverable							$	14,413

	Six Months Ended June 30, 2022
	Deferred Profit Liability
	Retirement Strategies		International Businesses
	Institutional		Life Planner		Gibraltar Life and Other		Total
	(in millions)
Balance, BOP	$	5,183	$	2,741	$	5,014	$	12,938
Flooring impact, BOP	0		0		1		1
Balance, BOP, pre-flooring	5,183		2,741		5,013		12,937
Effect of assumption update	382		28		(5)		405
Effect of actual variances from expected experience and other activity	96		3		(49)		50
Adjusted balance, BOP	5,661		2,772		4,959		13,392
Profits deferred	21		875		759		1,655
Interest accrual	104		60		71		235
Amortization	(272)		(573)		(526)		(1,371)
Foreign currency adjustment	(28)		(166)		(363)		(557)
Other adjustments	0		19		(1)		18
Balance, EOP, pre-flooring	5,486		2,987		4,899		13,372
Flooring impact, EOP	0		0		1		1
Balance, EOP	5,486		2,987		4,900		13,373
Less: Reinsurance recoverable	0		8		10		18
Balance after reinsurance recoverable	$	5,486	$	2,979	$	4,890	13,355
Other businesses(1)							189
Total balance after reinsurance recoverable							$	13,544

__________

(1)Reflects balance after reinsurance recoverable of $0 million and $1 million at June 30, 2023 and 2022, respectively.

The following tables provide supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the period indicated:

	Six Months Ended June 30, 2023
	Retirement Strategies		International Businesses
	Institutional		Life Planner		Gibraltar Life and Other
	(in millions)
Revenue(1)	$	(83)	$	(291)	$	18
Interest accrual	$	113	$	71	$	76

	Six Months Ended June 30, 2022
	Retirement Strategies		International Businesses
	Institutional		Life Planner		Gibraltar Life and Other
	(in millions)
Revenue(1)	$	(330)	$	(415)	$	(250)
Interest accrual	$	104	$	60	$	71

__________

(1)Represents the gross premiums collected in changes in Deferred Profit Liability excluding impact of foreign currency adjustments.

Additional Insurance Reserves

AIR represents the additional liability for annuitization, death, or other insurance benefits, including GMDB and GMIB contract features, that are above and beyond the contractholder's account balance.

The following table shows a rollforward of AIR balances for variable and universal life products within Individual Life, which is the only line of business that contains a material AIR balance, for the period indicated, along with a reconciliation to the Company’s total AIR balance:

	Six Months Ended June 30,
	2023		2022
	(in millions)
Balance, including amounts in AOCI, BOP, post-flooring	$	12,684	$	11,708
Flooring impact and amounts in AOCI	1,285		(909)
Balance, excluding amounts in AOCI, BOP, pre-flooring	13,969		10,799
Effect of assumption update	23		2,200
Effect of actual variances from expected experience and other activity	26		(156)
Adjusted balance, BOP	14,018		12,843
Assessments collected(1)	518		453
Interest accrual	239		205
Benefits paid	(153)		(118)
Balance, excluding amounts in AOCI, EOP, pre-flooring	14,622		13,383
Flooring impact and amounts in AOCI	(1,109)		(869)
Balance, including amounts in AOCI, EOP, post-flooring	13,513		12,514
Less: Reinsurance recoverable	5,484		5,004
Balance after reinsurance recoverable, including amounts in AOCI, EOP	8,029		7,510
Other businesses	147		165
Total balance after reinsurance recoverable	$	8,176	$	7,675

__________

(1)Represents the portion of gross assessments required to fund the future policy benefits.

	Six Months Ended June 30,
	2023			2022
	($ in millions)
Interest accrual	$	239		$	205
Gross assessments	$	1,547		$	1,230
Weighted-average duration of the liability in years (at original discount rate)	22			23
Weighted-average interest rate (at original discount rate)	3.39		%	3.72		%

Future Policy Benefits Reconciliation

The following table presents the reconciliation of the ending balances from above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverable, to the total liability for Future Policy Benefits on the Company's Consolidated Statement of Financial Position as of the periods indicated:

	Six Months Ended June 30,
	2023		2022
	(in millions)
Benefit reserves, EOP, post-flooring	$	188,974	$	187,139
Deferred Profit Liability EOP, post-flooring	14,431		13,563
Additional insurance reserves, including amounts in AOCI, EOP, post-flooring	13,660		12,679
Subtotal of amounts disclosed above	217,065		213,381
Other Future Policy Benefits reserves(1)	51,584		52,709
Total Future Policy Benefits	$	268,649	$	266,090

__________

(1)Represents balances for which disaggregated rollforward disclosures are not required, including Closed Block liabilities, unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities.

Revenue and Interest Expense

The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Consolidated Statement of Operations as of the periods indicated:

	Six Months Ended June 30, 2023
	Revenues(1)
	Retirement Strategies		Individual Life				International Businesses
	Institutional		Term Life		Variable/Universal Life		Life Planner		Gibraltar Life and Other		Other Businesses(2)		Total
	(in millions)
Benefit reserves	$	5,335	$	923	$	0	$	3,340	$	3,174	$	273	$	13,045
Deferred profit liability	(83)		0		0		(291)		18		34		(322)
Additional insurance reserves	0		0		1,547		0		0		0		1,547
Total	$	5,252	$	923	$	1,547	$	3,049	$	3,192	$	307	$	14,270

	Six Months Ended June 30, 2022
	Revenues(1)
	Retirement Strategies		Individual Life				International Businesses
	Institutional		Term Life		Variable/Universal Life		Life Planner		Gibraltar Life and Other		Other Businesses(2)		Total
	(in millions)
Benefit reserves	$	3,437	$	947	$	0	$	3,656	$	3,631	$	268	$	11,939
Deferred profit liability	(330)		0		0		(415)		(250)		36		(959)
Additional insurance reserves	0		0		1,230		0		0		1		1,231
Total	$	3,107	$	947	$	1,230	$	3,241	$	3,381	$	305	$	12,211

	Six Months Ended June 30, 2023
	Interest Expense
	Retirement Strategies		Individual Life				International Businesses
	Institutional		Term Life		Variable/Universal Life		Life Planner		Gibraltar Life and Other		Other Businesses(2)		Total
	(in millions)
Benefit reserves	$	1,408	$	202	$	0	$	867	$	760	$	242	$	3,479
Deferred profit liability	113		0		0		71		76		2		262
Additional insurance reserves	0		0		239		0		0		1		240
Total	$	1,521	$	202	$	239	$	938	$	836	$	245	$	3,981

	Six Months Ended June 30, 2022
	Interest Expense
	Retirement Strategies		Individual Life				International Businesses
	Institutional		Term Life		Variable/Universal Life		Life Planner		Gibraltar Life and Other		Other Businesses(2)		Total
	(in millions)
Benefit reserves	$	1,192	$	194	$	0	$	870	$	789	$	230	$	3,275
Deferred profit liability	104		0		0		60		71		3		238
Additional insurance reserves	0		0		205		0		0		2		207
Total	$	1,296	$	194	$	205	$	930	$	860	$	235	$	3,720

__________

(1)Represents "Gross Premiums" for benefit reserves, "Revenue" for deferred profit liability and "Gross Assessments" for additional insurance reserves.

(2)Includes remaining balances disclosed above and balances for which disaggregated rollforward disclosures may not be presented above.

POLICYHOLDERS’ ACCOUNT BALANCES

The balances of and changes in policyholders' account balances as of and for the periods ended are as follows:

	Six Months Ended June 30, 2023
	Group Insurance			Retirement Strategies									Individual Life			International Businesses						Total
	Life/Disability			Institutional			Individual Variable			Individual Fixed			Variable/Universal Life			Life Planner			Gibraltar Life and Other
	($ in millions)
Balance, beginning of period	$	5,839		$	17,376		$	17,524		$	4,643		$	26,502		$	11,168		$	35,325		$	118,377
Deposits	523			2,513			2,230			1,206			1,190			1,150			2,818			11,630
Interest credited	84			335			148			60			391			513			354			1,885
Acquisitions and dispositions	0			0			0			0			0			0			0			0
Policy charges	(161)			(11)			(11)			(3)			(1,024)			(150)			(87)			(1,447)
Surrenders and withdrawals	(826)			(2,295)			(332)			(196)			(859)			(96)			(582)			(5,186)
Benefit payments	0			(272)			(40)			(40)			(81)			(137)			(1,002)			(1,572)
Net transfers (to) from separate account	0			0			16			0			1,155			0			0			1,171
Change in market value and other adjustments(1)	0			0			1,052			70			148			14			(2)			1,282
Foreign currency adjustment	0			0			0			0			0			(798)			(888)			(1,686)
Balance, end of period	5,459			17,646			20,587			5,740			27,422			11,664			35,936			124,454
Less: Reinsurance and other recoverable(2)	0			0			0			0			11			1			20			32
Policyholders' account balance net of reinsurance and other recoverable	$	5,459		$	17,646		$	20,587		$	5,740		$	27,411		$	11,663		$	35,916		$	124,422
Closed Block Division																						4,543
Unearned revenue reserve, unearned expense credit, and additional interest reserve																						4,930
Other(3)																						4,816
Total Policyholders' account balance																						$	138,743
Weighted-average crediting rate	2.99		%	3.83		%	1.55		%	2.32		%	2.90		%	8.98		%	1.99		%	3.11		%
Net amount at risk(4)	$	72,764		$	0		$	0		$	0		$	373,992		$	17,126		$	6,472		$	470,354
Cash surrender value(5)	$	3,992		$	17,646		$	18,638		$	4,541		$	22,936		$	10,046		$	31,477		$	109,276

	Six Months Ended June 30, 2022
	Group Insurance			Retirement Strategies									Individual Life			International Businesses						Total
	Life/Disability			Institutional			Individual Variable			Individual Fixed			Variable/Universal Life			Life Planner			Gibraltar Life and Other
	($ in millions)
Balance, beginning of period	$	6,273		$	16,391		$	14,125		$	4,652		$	26,859		$	11,555		$	37,615		$	117,470
Deposits	608			2,076			2,721			71			1,279			415			1,523			8,693
Interest credited	75			255			53			53			405			(9)			232			1,064
Acquisitions and dispositions	0			0			(1,406)			(440)			0			0			0			(1,846)
Policy charges	(162)			(11)			(1)			(2)			(1,018)			(100)			(53)			(1,347)
Surrenders and withdrawals	(700)			(2,240)			(150)			(67)			(848)			(100)			(1,504)			(5,609)
Benefit payments	0			(270)			(57)			(86)			(107)			(130)			(1,159)			(1,809)
Net transfers (to) from separate account	(17)			0			185			0			264			0			0			432
Change in market value and other adjustments(1)	0			0			72			(75)			(286)			16			(7)			(280)
Foreign currency adjustment	0			0			0			0			0			(1,525)			(1,990)			(3,515)
Balance, end of period	6,077			16,201			15,542			4,106			26,548			10,122			34,657			113,253
Less: Reinsurance and other recoverable(2)	0			0			0			0			12			1			22			35
Policyholders' account balance net of reinsurance and other recoverable	$	6,077		$	16,201		$	15,542		$	4,106		$	26,536		$	10,121		$	34,635		$	113,218
Closed Block Division																						4,664
Unearned revenue reserve, unearned expense credit, and additional interest reserve																						4,216
Other(3)																						8,275
Total Policyholders' account balance																						$	130,408
Weighted-average crediting rate	2.42		%	3.13		%	0.71		%	2.41		%	3.03		%	(0.17)		%	1.29		%	1.84		%
Net amount at risk(4)	$	71,162		$	0		$	0		$	0		$	360,368		$	14,518		$	7,285		$	453,333
Cash surrender value(5)	$	4,136		$	16,201		$	13,380		$	3,079		$	21,673		$	8,959		$	30,843		$	98,271

____________

(1)Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products.

(2)The amount of recoverable related to reinsurance agreements that reduce the risk of the policyholders' account balance gross liability.

(3)Includes $5,832 million and $8,242 million of Full Service account balances reinsured to Great-West as of June 30, 2023 and 2022, respectively. See Note 1 for additional information.

(4)The net amount at risk calculation includes both general account and separate account balances.

(5)Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. There are no cash surrender charges for the Institutional Retirement Strategies segment.

The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid.

The net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns.

The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 11 for additional information, including the net amount at risk associated with these guarantees.

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows:

	June 30, 2023
Range of Guaranteed Minimum Crediting Rate (1)	At guaranteed minimum		1 - 50 bps above guaranteed minimum		51 - 150 bps above guaranteed minimum		Greater than 150 bps above guaranteed minimum		Total
	($ in millions)
Group Insurance
Less than 1.00%	$	0	$	0	$	0	$	1,342	$	1,342
1.00% - 1.99%	0		0		0		0		0
2.00% - 2.99%	55		0		0		0		55
3.00% - 4.00%	1,621		0		0		0		1,621
Greater than 4.00%	3		0		0		0		3
Total	$	1,679	$	0	$	0	$	1,342	$	3,021
Institutional
Less than 1.00%	$	401	$	0	$	0	$	0	$	401
1.00% - 1.99%	1,565		0		0		0		1,565
2.00% - 2.99%	557		0		0		0		557
3.00% - 4.00%	5,891		0		0		0		5,891
Greater than 4.00%	1,728		0		0		0		1,728
Total	$	10,142	$	0	$	0	$	0	$	10,142
Individual Variable
Less than 1.00%	$	973	$	834	$	18	$	0	$	1,825
1.00% - 1.99%	232		2		1		0		235
2.00% - 2.99%	30		5		0		0		35
3.00% - 4.00%	2,119		8		10		0		2,137
Greater than 4.00%	101		0		0		0		101
Total	$	3,455	$	849	$	29	$	0	$	4,333
Individual Fixed
Less than 1.00%	$	0	$	0	$	0	$	0	$	0
1.00% - 1.99%	559		136		245		84		1,024
2.00% - 2.99%	519		467		48		11		1,045
3.00% - 4.00%	355		8		0		0		363
Greater than 4.00%	100		0		0		0		100
Total	$	1,533	$	611	$	293	$	95	$	2,532
Variable & Universal Life
Less than 1.00%	$	0	$	0	$	0	$	36	$	36
1.00% - 1.99%	164		0		2,681		363		3,208
2.00% - 2.99%	23		1,724		2,826		287		4,860
3.00% - 4.00%	7,386		2,024		1,308		11		10,729
Greater than 4.00%	5,560		0		0		0		5,560
Total	$	13,133	$	3,748	$	6,815	$	697	$	24,393
Life Planner
Less than 1.00%	$	342	$	26	$	91	$	1,136	$	1,595
1.00% - 1.99%	2,915		24		0		0		2,939
2.00% - 2.99%	2,080		0		0		0		2,080
3.00% - 4.00%	333		0		0		0		333
Greater than 4.00%	388		0		0		0		388
Total	$	6,058	$	50	$	91	$	1,136	$	7,335
Gibraltar
Less than 1.00%	$	16,373	$	0	$	0	$	0	$	16,373
1.00% - 1.99%	9,143		68		0		0		9,211
2.00% - 2.99%	3,225		327		39		0		3,591
3.00% - 4.00%	3,943		0		0		0		3,943
Greater than 4.00%	2,612		0		0		0		2,612
Total	$	35,296	$	395	$	39	$	0	$	35,730

	June 30, 2022
Range of Guaranteed Minimum Crediting Rate (1)	At guaranteed minimum		1 - 50 bps above guaranteed minimum		51 - 150 bps above guaranteed minimum		Greater than 150 bps above guaranteed minimum		Total
	($ in millions)
Group Insurance
Less than 1.00%	$	0	$	0	$	0	$	1,813	$	1,813
1.00% - 1.99%	7		0		0		0		7
2.00% - 2.99%	54		0		0		0		54
3.00% - 4.00%	1,681		0		0		0		1,681
Greater than 4.00%	3		0		0		0		3
Total	$	1,745	$	0	$	0	$	1,813	$	3,558
Institutional
Less than 1.00%	$	401	$	0	$	0	$	0	$	401
1.00% - 1.99%	1,573		0		0		0		1,573
2.00% - 2.99%	1,224		0		0		0		1,224
3.00% - 4.00%	4,676		0		0		0		4,676
Greater than 4.00%	989		0		0		0		989
Total	$	8,863	$	0	$	0	$	0	$	8,863
Individual Variable
Less than 1.00%	$	1,051	$	878	$	19	$	0	$	1,948
1.00% - 1.99%	255		2		0		0		257
2.00% - 2.99%	38		0		1		0		39
3.00% - 4.00%	2,393		6		10		0		2,409
Greater than 4.00%	114		0		0		0		114
Total	$	3,851	$	886	$	30	$	0	$	4,767
Individual Fixed
Less than 1.00%	$	0	$	0	$	0	$	0	$	0
1.00% - 1.99%	653		65		94		26		838
2.00% - 2.99%	477		0		0		0		477
3.00% - 4.00%	413		2		0		0		415
Greater than 4.00%	109		0		0		0		109
Total	$	1,652	$	67	$	94	$	26	$	1,839
Variable & Universal Life
Less than 1.00%	$	16	$	0	$	0	$	0	$	16
1.00% - 1.99%	343		0		695		1,978		3,016
2.00% - 2.99%	397		0		2,260		2,118		4,775
3.00% - 4.00%	7,773		13		2,515		157		10,458
Greater than 4.00%	5,566		0		0		0		5,566
Total	$	14,095	$	13	$	5,470	$	4,253	$	23,831
Life Planner
Less than 1.00%	$	359	$	28	$	97	$	28	$	512
1.00% - 1.99%	3,080		20		0		0		3,100
2.00% - 2.99%	2,228		0		0		0		2,228
3.00% - 4.00%	308		0		0		0		308
Greater than 4.00%	395		0		0		0		395
Total	$	6,370	$	48	$	97	$	28	$	6,543
Gibraltar
Less than 1.00%	$	18,839	$	0	$	0	$	0	$	18,839
1.00% - 1.99%	10,254		0		0		0		10,254
2.00% - 2.99%	3,466		326		49		0		3,841
3.00% - 4.00%	1,157		0		0		0		1,157
Greater than 4.00%	246		0		0		0		246
Total	$	33,962	$	326	$	49	$	0	$	34,337

____________

(1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options and Japan variable products.

MARKET RISK BENEFITS

The following table shows a rollforward of MRB balances for variable annuity products within Individual Retirement Strategies, which is the only line of business that contains a material MRB balance, along with a reconciliation to the Company’s total net MRB positions as of the following dates:

 

	Six Months Ended June 30,
	2023		2022
	(in millions)
Balance, BOP	$	4,987	$	13,392
Effect of cumulative changes in NPR	1,828		898
Balance, BOP, before effect of changes in NPR	6,815		14,290
Attributed fees collected	601		734
Claims paid	(59)		(33)
Interest accrual	173		31
Actual in force different from expected	36		61
Effect of changes in interest rates	(696)		(6,078)
Effect of changes in equity markets	(1,389)		3,669
Effect of assumption update	342		(152)
Issuances	5		0
Other adjustments(1)	(22)		(3,993)
Balance, EOP, before effect of changes in NPR	5,806		8,529
Effect of cumulative changes in NPR	(1,751)		(2,197)
Balance, EOP	4,055		6,332
Less: Reinsured MRB	637		41
Balance, EOP, net of reinsurance	3,418		6,291
Other businesses	93		133
Total net MRB balance	$	3,511	$	6,424

_________

(1)2022 includes $4,061 million related to the sale of PALAC. See Note 1 for additional information.

.

In 2023, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed MRBs, primarily due to updates to policyholder behavior assumptions on certain variable annuities. In 2022, the Company recognized a favorable impact to net income attributable to the actuarial assumption update for direct and assumed MRBs, primarily due to updates to mortality and policyholder behavior assumptions on certain variable annuities.

The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods.

The Company also issues indexed variable annuity contracts for which the return is tied to the return of specific indices where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals upon death. In certain of these indexed variable annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods.

For guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary

risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance.

For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior.

The following table presents accompanying information to the rollforward table above.

	June 30, 2023		June 30, 2022
	($ in millions)
Net amount at risk(1)	$	10,885	$	11,538
Weighted-average attained age of contractholders	69		68

___________

(1)For contracts with multiple benefit features, the highest net amount at risk for each contract is included.

The tables below reconcile MRB asset and liability positions as of the following dates:

	June 30, 2023
	Retirement Strategies
	Individual Variable		Other Businesses		Total
	(in millions)
MRB Assets	$	1,937	$	14	$	1,951
MRB Liabilities	5,355		107		5,462
Net Liability	$	3,418	$	93	$	3,511

	June 30, 2022
	Retirement Strategies
	Individual Variable		Other Businesses		Total
	(in millions)
MRB Assets	$	856	$	13	$	869
MRB Liabilities	7,147		146		7,293
Net Liability	$	6,291	$	133	$	6,424