Market Risk Benefits

9 Months Ended

Sep. 30, 2023

Market Risk Benefit [Abstract]

Market Risk Benefits

(13) Market Risk Benefits

The following table sets forth our market risk benefits by asset and liability position as of the dates indicated:

	September 30, 2023						December 31, 2022
(Amounts in millions)	Asset		Liability		Net liability		Asset		Liability		Net liability
Fixed indexed annuities	$	—	$	38	$	38	$	—	$	52	$	52
Variable annuities		39		541		502		26		696		670
Total market risk benefits	$	39	$	579	$	540	$	26	$	748	$	722

The following tables present the balances of and changes in market risk benefits as of and for the periods indicated:

	September 30, 2023
(Dollar amounts in millions)	Fixed indexed annuities			Variable annuities			Reinsurance recoverable (1)
Beginning balance as of January 1	$	52		$	670		$	158
Beginning balance before effect of changes in instrument-specific credit risk	$	50		$	660		$	158
Issuances		—			—			—
Interest accrual		2			26			6
Attributed fees collected		3			28			6
Benefit payments		—			(26	)		(11	)
Effect of changes in interest rates		(16	)		(142	)		(24	)
Effect of changes in equity markets		(1	)		(54	)		(15	)
Actual policyholder behavior different from expected behavior		(2	)		4			3
Effect of changes in future expected policyholder behavior		—			—			—
Effect of changes in other future expected assumptions		—			—			—
Ending balance before effect of changes in instrument-specific credit risk		36			496			123
Effect of changes in instrument-specific credit risk		2			6			—
Ending balance as of September 30		38			502		$	123
Less: reinsurance recoverable		—			123
Market risk benefits, net of reinsurance recoverable	$	38		$	379
Weighted-average attained age of contractholders		72			76
Net amount at risk (2)

(1) Represents the net reinsured asset related to our variable annuity MRBs.

(2) See note 11 for additional information on the net amount at risk.

	December 31, 2022
(Dollar amounts in millions)	Fixed indexed annuities			Variable annuities			Reinsurance recoverable (1)
Beginning balance as of January 1	$	94		$	855		$	193
Beginning balance before effect of changes in instrument-specific credit risk	$	90		$	840		$	193
Issuances		—			6			—
Interest accrual		1			18			4
Attributed fees collected		5			42			9
Benefit payments		—			(28	)		(16	)
Effect of changes in interest rates		(51	)		(513	)		(74	)
Effect of changes in equity markets		5			286			39
Actual policyholder behavior different from expected behavior		(2	)		8			3
Effect of changes in future expected policyholder behavior		—			—			—
Effect of changes in other future expected assumptions		—			—			—
Other		2			1			—
Ending balance before effect of changes in instrument-specific credit risk		50			660			158
Effect of changes in instrument-specific credit risk		2			10			—
Ending balance as of December 31		52			670		$	158
Less: reinsurance recoverable		—			158
Market risk benefits, net of reinsurance recoverable	$	52		$	512
Weighted-average attained age of contractholders		72			76
Net amount at risk (2)

(1) Represents the net reinsured asset related to our variable annuity MRBs.

(2) See note 11 for additional information on the net amount at risk.

	December 31, 2021
(Dollar amounts in millions)	Fixed indexed annuities			Variable annuities			Reinsurance recoverable (1)
Beginning balance as of January 1	$	115		$	1,173		$	244
Beginning balance before effect of changes in instrument-specific credit risk	$	110		$	1,154		$	244
Issuances		—			3			—
Interest accrual		—			4			1
Attributed fees collected		6			48			11
Benefit payments		—			(23	)		(13	)
Effect of changes in interest rates		(10	)		(115	)		(21	)
Effect of changes in equity markets		(7	)		(267	)		(42	)
Actual policyholder behavior different from expected behavior		(7	)		36			13
Effect of changes in future expected policyholder behavior		—			—			—
Effect of changes in other future expected assumptions		—			—			—
Other		(2	)		—			—
Ending balance before effect of changes in instrument-specific credit risk		90			840			193
Effect of changes in instrument-specific credit risk		4			15			—
Ending balance as of December 31		94			855		$	193
Less: reinsurance recoverable		—			193
Market risk benefits, net of reinsurance recoverable	$	94		$	662
Weighted-average attained age of contractholders		71			75
Net amount at risk (2)

(1) Represents the net reinsured asset related to our variable annuity MRBs.

(2) See note 11 for additional information on the net amount at risk.

During the year ended December 31, 2022, risk-free interest rates increased, resulting in a decrease in the net MRB liability of our fixed indexed and variable annuity products. In our variable annuity products, this was partially offset by unfavorable equity market performance, which increased our net MRB liability.

During the year ended December 31, 2021, equity market performance was favorable and risk-free interest rates increased, resulting in a decrease in our net MRB liability of our fixed indexed and variable annuity products.