POLICY LIABILITIES |
POLICY LIABILITIES The following reflects the reconciliation of the components of policy liabilities to the total balance reported in the consolidated statements of financial condition as of March 31, 2024 and December 31, 2023: | | | | | | | | | | | | | March 31, 2024 | | December 31, 2023 | Policyholders’ account balances | $ | 129,509,137 | | | $ | 125,187,354 | | Liability for future policy benefits | 25,410,733 | | | 17,823,750 | | Additional liability for annuitization, death, or other insurance benefits | 7,213,357 | | | 7,129,785 | | Market risk benefit liability | 1,023,053 | | | 1,120,968 | | Other policy-related liabilities(1) | 10,442,406 | | | 8,796,414 | | Total policy liabilities | $ | 173,598,686 | | | $ | 160,058,271 | |
(1)Other policy-related liabilities as of March 31, 2024 and December 31, 2023 primarily consist of negative VOBA ($837.8 million and $867.9 million, respectively), policy liabilities accounted under a fair value option (both $1.2 billion), embedded derivatives associated with contractholder deposit funds ($4.5 billion and $4.0 billion, respectively), cost-of-reinsurance liabilities ($3.0 billion and $1.8 billion, respectively) and outstanding claims ($240.0 million and $235.1 million, respectively). Policyholders’ account balances The following reflects the policyholders’ account balances roll-forward for the three months ended March 31, 2024 and 2023, and the policyholders’ account balances weighted average interest rates, net amount at risk, and cash surrender value as of those dates: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended March 31, 2024 | | Fixed rate annuities | | Fixed indexed annuities | | Interest sensitive life | | Funding agreements | | Other(1) | | Total | Balance as of beginning of period | $ | 56,762,736 | | | $ | 30,168,445 | | | $ | 21,969,053 | | | $ | 7,015,998 | | | $ | 9,271,122 | | | $ | 125,187,354 | | Issuances and premiums received | 4,784,285 | | | 1,549,004 | | | 312,020 | | | 695,933 | | | 1,339,437 | | | 8,680,679 | | | | | | | | | | | | | | Benefit payments, surrenders, and withdrawals | (2,879,479) | | | (1,294,134) | | | (306,463) | | | (68,159) | | | (411,941) | | | (4,960,176) | | | | | | | | | | | | | | Interest(2) | 498,543 | | | 165,239 | | | 177,275 | | | 69,519 | | | 74,324 | | | 984,900 | | Other activity(3) | (102,899) | | | 25,879 | | | (305,139) | | | (21,815) | | | 20,354 | | | (383,620) | | Balance as of end of period | $ | 59,063,186 | | | $ | 30,614,433 | | | $ | 21,846,746 | | | $ | 7,691,476 | | | $ | 10,293,296 | | | $ | 129,509,137 | | Less: reinsurance recoverable | (10,557,317) | | | (3,189,167) | | | (7,159,910) | | | — | | | (3,830,017) | | | (24,736,411) | | Balance as of end of period, net of reinsurance recoverable | $ | 48,505,869 | | | $ | 27,425,266 | | | $ | 14,686,836 | | | $ | 7,691,476 | | | $ | 6,463,279 | | | $ | 104,772,726 | | | | | | | | | | | | | | Average interest rate | 3.58 | % | | 2.30 | % | | 3.22 | % | | 3.80 | % | | 3.47 | % | | 3.15 | % | Net amount at risk, gross of reinsurance(4) | $ | — | | | $ | — | | | $ | 117,008,523 | | | $ | — | | | $ | 1,161,762 | | | $ | 118,170,285 | | Cash surrender value(5) | $ | 45,612,785 | | | $ | 29,313,985 | | | $ | 13,827,297 | | | $ | — | | | $ | 4,604,037 | | | $ | 93,358,104 | |
(1)“Other” consists of activity related to payout annuities without life contingencies, preneed, variable annuities and life products. (2)Interest includes interest credited to policyholders’ account values, and interest accreted in other components of the policyholder account balance, including investment-type contract values, host amounts for contractholder deposits with embedded derivatives, funding agreements and other associated reserves. (3) “Other activity” includes policy charges, fees and commissions, transfers, assumption changes, fair value changes and the impact of hedge fair value adjustments. (4)Net amount at risk represents the difference between the face value of the insurance policy and the reserve accumulated under that same policy. (5)Cash surrender values are reported net of any applicable surrender charges, net of reinsurance. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended March 31, 2023 | | Fixed rate annuities | | Fixed indexed annuities | | Interest sensitive life | | Funding agreements | | Other(1) | | Total | Balance as of beginning of period | $ | 48,510,703 | | | $ | 29,123,926 | | | $ | 17,397,185 | | | $ | 7,535,489 | | | $ | 9,713,933 | | | $ | 112,281,236 | | Issuances and premiums received | 3,416,916 | | | 1,640,745 | | | 144,797 | | | — | | | 100,616 | | | 5,303,074 | | | | | | | | | | | | | | Benefit payments, surrenders, and withdrawals | (2,329,373) | | | (937,627) | | | (230,514) | | | (224,107) | | | (401,156) | | | (4,122,777) | | | | | | | | | | | | | | Interest(2) | 340,106 | | | 114,739 | | | 107,298 | | | 51,423 | | | 74,209 | | | 687,775 | | Other activity(3) | (63,346) | | | (45,130) | | | (25,172) | | | 86,057 | | | 78,474 | | | 30,883 | | Balance as of end of period | $ | 49,875,006 | | | $ | 29,896,653 | | | $ | 17,393,594 | | | $ | 7,448,862 | | | $ | 9,566,076 | | | $ | 114,180,191 | | Less: reinsurance recoverable | (6,699,771) | | | (3,311,541) | | | (3,467,814) | | | — | | | (3,119,287) | | | (16,598,413) | | Balance as of end of period, net of reinsurance recoverable | $ | 43,175,235 | | | $ | 26,585,112 | | | $ | 13,925,780 | | | $ | 7,448,862 | | | $ | 6,446,789 | | | $ | 97,581,778 | | | | | | | | | | | | | | Average interest rate | 2.85 | % | | 1.70 | % | | 3.09 | % | | 2.75 | % | | 2.69 | % | | 2.53 | % | Net amount at risk, gross of reinsurance(4) | $ | — | | | $ | — | | | $ | 84,498,038 | | | $ | — | | | $ | 1,182,896 | | | $ | 85,680,934 | | Cash surrender value(5) | $ | 40,420,172 | | | $ | 27,236,116 | | | $ | 12,948,054 | | | $ | — | | | $ | 4,744,008 | | | $ | 85,348,350 | |
(1)“Other” consists of activity related to payout annuities without life contingencies, preneed, variable annuities and life products. (2)Interest includes interest credited to policyholders’ account values, and interest accreted in other components of the policyholder account balance, including investment-type contract values, host amounts for contractholder deposits with embedded derivatives, funding agreements and other associated reserves. (3)“Other activity” includes policy charges, fees and commissions, transfers, assumption changes, fair value changes and the impact of hedge fair value adjustments. (4)Net amount at risk represents the difference between the face value of the insurance policy and the reserve accumulated under that same policy. (5)Cash surrender values are reported net of any applicable surrender charges, net of reinsurance. The following table presents the 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. Account values, as disclosed below, differ from policyholder account balances as they exclude balances associated with index credits, contractholder deposit fund host balances, funding agreements, and other associated reserves. In addition, policyholder account balances include discounts and premiums on assumed business which are not reflected in account values. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of March 31, 2024 | | Account values with adjustable crediting rates subject to guaranteed minimums: | 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 | Less than 1.00% | $ | 2,894,495 | | | $ | 30,211 | | | $ | 559,718 | | | $ | 2,726,724 | | | $ | 28,705,318 | | | $ | 34,916,466 | | 1.00% - 1.99% | 1,443,207 | | | 939,437 | | | 914,146 | | | 1,924,889 | | | 7,614,747 | | | 12,836,426 | | 2.00% - 2.99% | 855,374 | | | 45,699 | | | 56,328 | | | 99,215 | | | 1,338,545 | | | 2,395,161 | | 3.00% - 4.00% | 11,515,571 | | | 1,472,797 | | | 391,942 | | | 1,183,923 | | | 1,294,192 | | | 15,858,425 | | Greater than 4.00% | 11,888,750 | | | 1,353,373 | | | 141,937 | | | 115,460 | | | 288,949 | | | 13,788,469 | | Total | $ | 28,597,397 | | | $ | 3,841,517 | | | $ | 2,064,071 | | | $ | 6,050,211 | | | $ | 39,241,751 | | | $ | 79,794,947 | | Percentage of total | 36 | % | | 5 | % | | 3 | % | | 8 | % | | 48 | % | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2023 | | Account values with adjustable crediting rates subject to guaranteed minimums: | 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 | Less than 1.00% | $ | 2,706,701 | | | $ | 25,839 | | | $ | 660,189 | | | $ | 3,546,450 | | | $ | 25,940,436 | | | $ | 32,879,615 | | 1.00% - 1.99% | 1,471,320 | | | 1,013,423 | | | 999,852 | | | 1,968,519 | | | 6,603,795 | | | 12,056,909 | | 2.00% - 2.99% | 896,276 | | | 44,850 | | | 55,874 | | | 109,411 | | | 1,310,234 | | | 2,416,645 | | 3.00% - 4.00% | 12,494,439 | | | 1,186,572 | | | 414,111 | | | 953,560 | | | 1,067,325 | | | 16,116,007 | | Greater than 4.00% | 12,095,647 | | | 1,385,538 | | | 138,112 | | | 117,561 | | | 298,493 | | | 14,035,351 | | Total | $ | 29,664,383 | | | $ | 3,656,222 | | | $ | 2,268,138 | | | $ | 6,695,501 | | | $ | 35,220,283 | | | $ | 77,504,527 | | Percentage of total | 38 | % | | 5 | % | | 3 | % | | 9 | % | | 45 | % | | 100 | % |
Liability for future policy benefits The following tables summarize the balances of, and changes in, the liability for future policy benefits for traditional and limited-payment contracts for the three months ended March 31, 2024 and 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | March 31, 2024 | | March 31, 2023 | | Payout annuities(1) | | Other(2) | | Total | | Payout annuities(1) | | Other(2) | | Total | Present value of expected net premiums | | | | | | | | | | | | Balance as of beginning of the period | $ | — | | | $ | (208,370) | | | $ | (208,370) | | | $ | — | | | $ | (255,401) | | | $ | (255,401) | | | | | | | | | | | | | | Balance at original discount rate | $ | — | | | $ | (241,058) | | | $ | (241,058) | | | $ | — | | | $ | (303,610) | | | $ | (303,610) | | | | | | | | | | | | | | Effect of actual variances from expected experience | — | | | 2,481 | | | 2,481 | | | — | | | 992 | | | 992 | | Adjusted beginning of period balance | — | | | (238,577) | | | (238,577) | | | — | | | (302,618) | | | (302,618) | | Issuances | — | | | (1,138,831) | | | (1,138,831) | | | — | | | — | | | — | | Interest | | | (949) | | | (949) | | | — | | | (1,206) | | | (1,206) | | Net premiums collected | — | | | 8,416 | | | 8,416 | | | — | | | 8,283 | | | 8,283 | | | | | | | | | | | | | | | | | | | | | | | | | | Ending balance at original discount rate | — | | | (1,369,941) | | | (1,369,941) | | | — | | | (295,541) | | | (295,541) | | Effect of changes in discount rate assumptions | — | | | 36,556 | | | 36,556 | | | — | | | 43,489 | | | 43,489 | | Balance as of the end of the period | $ | — | | | $ | (1,333,385) | | | $ | (1,333,385) | | | $ | — | | | $ | (252,052) | | | $ | (252,052) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | March 31, 2024 | | March 31, 2023 | | Payout annuities(1) | | Other(2) | | Total | | Payout annuities(1) | | Other(2) | | Total | Present value of expected future policy benefits | | | | | | | | | | | | Balance as of beginning of the period | $ | 17,427,353 | | | $ | 604,767 | | | $ | 18,032,120 | | | $ | 14,021,514 | | | $ | 679,807 | | | $ | 14,701,321 | | | | | | | | | | | | | | Balance at original discount rate | $ | 20,040,000 | | | $ | 701,655 | | | $ | 20,741,655 | | | $ | 17,180,626 | | | $ | 806,555 | | | $ | 17,987,181 | | | | | | | | | | | | | | Effect of actual variances from expected experience | (5,403) | | | (4,126) | | | (9,529) | | | (7,777) | | | 3,539 | | | (4,238) | | Adjusted beginning of period balance | 20,034,597 | | | 697,529 | | | 20,732,126 | | | 17,172,849 | | | 810,094 | | | 17,982,943 | | Issuances | 521,384 | | | 8,829,048 | | | 9,350,432 | | | 559,421 | | | 15 | | | 559,436 | | Interest | 145,265 | | | 2,146 | | | 147,411 | | | 93,654 | | | 2,467 | | | 96,121 | | Benefit payments | (443,016) | | | (16,726) | | | (459,742) | | | (389,426) | | | (25,861) | | | (415,287) | | | | | | | | | | | | | | Ending balance at original discount rate | 20,258,230 | | | 9,511,997 | | | 29,770,227 | | | 17,436,498 | | | 786,715 | | | 18,223,213 | | Effect of changes in discount rate assumptions | (2,934,499) | | | (91,610) | | | (3,026,109) | | | (2,721,312) | | | (115,387) | | | (2,836,699) | | Balance as of the end of the period | 17,323,731 | | | 9,420,387 | | | 26,744,118 | | | 14,715,186 | | | 671,328 | | | 15,386,514 | | Net liability for future policy benefits | 17,323,731 | | | 8,087,002 | | | 25,410,733 | | | 14,715,186 | | | 419,276 | | | 15,134,462 | | Less: reinsurance recoverable(3) | (9,184,956) | | | (6,395,483) | | | (15,580,439) | | | (7,636,570) | | | 1,750 | | | (7,634,820) | | Net liability for future policy benefits, net of reinsurance recoverables | $ | 8,138,775 | | | $ | 1,691,519 | | | $ | 9,830,294 | | | $ | 7,078,616 | | | $ | 421,026 | | | $ | 7,499,642 | |
(1)Payout annuities generally only have a single premium received at contract inception. As a result, the liability for future policy benefits generally would not reflect a present value for future premiums for payout annuities. (2)“Other” consists of activity related to long-term care insurance, variable annuities, traditional life insurance, preneed insurance and fixed-rate annuity products. Mortality and morbidity risks associated with the long-term care insurance have been ceded to a third-party reinsurer. (3)Reinsurance recoverables associated with the liability for future policy benefits is net of the effect of changes in discount rate assumptions of $(141.4) million and $237.1 million for the three months ended March 31, 2024 and 2023, respectively. The following table summarizes the amount of gross premiums related to traditional and limited-payment contracts recognized in the consolidated statements of operations for the three months ended March 31, 2024 and 2023: | | | | | | | | | | | | | | | Gross premiums | | Three Months Ended March 31, | | 2024 | | 2023 | | | Payout annuities | $ | 582,588 | | | $ | 492,727 | | | | Other | 8,547,653 | | | 14,391 | | | | Total products | $ | 9,130,241 | | | $ | 507,118 | | | |
The following table reflects the weighted-average duration and weighted-average interest rates of the future policy benefit liability as of March 31, 2024 and December 31, 2023: | | | | | | | | | | | | | As of March 31, 2024 | | Payout annuities | | Other | Weighted-average interest rates, original discount rate | 3.44 | % | | 4.85 | % | Weighted-average interest rates, current discount rate | 5.22 | % | | 5.29 | % | Weighted-average liability duration (years, current rates) | 8.42 | | 10.70 |
| | | | | | | | | | | | | As of December 31, 2023 | | Payout annuities | | Other | Weighted-average interest rates, original discount rate | 3.37 | % | | 2.57 | % | Weighted-average interest rates, current discount rate | 4.95 | % | | 4.95 | % | Weighted-average liability duration (years, current rates) | 8.58 | | 9.03 |
The following reflects the undiscounted ending balance of expected future gross premiums and expected future benefits and payments for traditional and limited-payment contracts, as of March 31, 2024 and December 31, 2023: | | | | | | | | | | | | | As of March 31, 2024 | | Payout annuities | | Other | Expected future benefit payments, undiscounted | $ | 29,845,573 | | | $ | 16,966,712 | | Expected future benefit payments, discounted (original discount rate) | 20,258,230 | | | 9,511,997 | | Expected future benefit payments, discounted (current discount rate) | 17,323,731 | | | 9,420,387 | | | | | | Expected future gross premiums, undiscounted | — | | | 1,880,510 | | Expected future gross premiums, discounted (original discount rate) | — | | | 1,447,508 | | Expected future gross premiums, discounted (current discount rate) | — | | | 1,398,867 | |
| | | | | | | | | | | | | As of December 31, 2023 | | Payout annuities | | Other | Expected future benefit payments, undiscounted | $ | 29,164,580 | | | $ | 832,608 | | Expected future benefit payments, discounted (original discount rate) | 19,899,423 | | | 689,760 | | Expected future benefit payments, discounted (current discount rate) | 17,427,352 | | | 604,768 | | | | | | Expected future gross premiums, undiscounted | — | | | 377,693 | | Expected future gross premiums, discounted (original discount rate) | — | | | 317,710 | | Expected future gross premiums, discounted (current discount rate) | — | | | 262,653 | |
Additional liability for annuitization, death, or other insurance benefits The following tables reflect the additional liability for annuitization, death, or other insurance benefits roll-forward for the three months ended March 31, 2024 and 2023: | | | | | | | | | | | | | | | Three Months Ended March 31, | | 2024 | | 2023 | | | Balance as of beginning of period | $ | 7,251,266 | | | $ | 5,104,810 | | | | Effect of changes in cash flow assumptions | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Effect of changes in experience | (29,667) | | | (21,177) | | | | Adjusted balance as of beginning of period | 7,221,599 | | | 5,083,633 | | | | Issuances | 6,079 | | | 5,684 | | | | Assessments | 175,430 | | | 85,683 | | | | Benefits paid | (136,605) | | | (84,913) | | | | Interest | 59,363 | | | 26,296 | | | | Balance as of end of period | 7,325,866 | | | 5,116,383 | | | | Less: impact of unrealized investment gain and losses | 112,509 | | | 117,958 | | | | Less: reinsurance recoverable, end of period | 1,460,314 | | | — | | | | Balance, end of year, net of reinsurance recoverable and impact of unrealized investment gains and losses | $ | 5,753,043 | | | $ | 4,998,425 | | | |
The additional liability for annuitization, death, or other insurance benefits relates primarily to secondary guarantees on certain interest-sensitive life products, and preneed insurance. The following reflects the amount of gross assessments recognized for the additional liability for annuitization, death, or other insurance benefits in the consolidated statements of operations for the three months ended March 31, 2024 and 2023: | | | | | | | | | | | | | | | Gross assessments | | Three Months Ended March 31, | | 2024 | | 2023 | | | | | | | | | | | | | | | Total amount recognized within revenue in the consolidated statements of operations | $ | 168,504 | | | $ | 146,376 | | | |
The following reflects the weighted average duration and weighted average interest rate for the additional liability for annuitization, death, or other insurance benefits as of March 31, 2024 and December 31, 2023: | | | | | | | | | | | | | As of | | March 31, 2024 | | December 31, 2023 | | | | | Weighted-average interest, current discount rate | 3.27 | % | | 3.09 | % | Weighted-average liability duration (years) | 27.75 | | 27.64 |
Market risk benefits The following table presents the balances of, and changes in, market risk benefits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | March 31, 2024 | | March 31, 2023 | | Fixed-indexed annuity | | Variable- and other annuities | | Total | | Fixed-indexed annuity | | Variable- and other annuities | | Total | Balance as of beginning of period | $ | 868,268 | | | $ | 252,683 | | | $ | 1,120,951 | | | $ | 548,536 | | | $ | 120,322 | | | $ | 668,858 | | | | | | | | | | | | | | Balance as of beginning of period, before impact of changes in instrument-specific credit risk | $ | 790,616 | | | $ | 225,593 | | | $ | 1,016,209 | | | $ | 656,880 | | | $ | 150,633 | | | $ | 807,513 | | Issuances | 3,408 | | | (2) | | | 3,406 | | | (36) | | | (9) | | | (45) | | Interest | 10,914 | | | 2,926 | | | 13,840 | | | 8,854 | | | 1,957 | | | 10,811 | | Attributed fees collected | 24,660 | | | 21,874 | | | 46,534 | | | 24,143 | | | 21,095 | | | 45,238 | | Benefit payments | (1,649) | | | (1,807) | | | (3,456) | | | (802) | | | (18) | | | (820) | | Effect of changes in interest rates | (68,282) | | | (40,975) | | | (109,257) | | | 71,737 | | | 49,005 | | | 120,742 | | Effect of changes in equity markets | (12,806) | | | (42,848) | | | (55,654) | | | (3,822) | | | (21,986) | | | (25,808) | | Effect of actual experience different from assumptions | 6,352 | | | (5,001) | | | 1,351 | | | 772 | | | (12,676) | | | (11,904) | | | | | | | | | | | | | | Balance as of end of period before impact of changes in instrument-specific credit risk | 753,213 | | | 159,760 | | | 912,973 | | | 757,726 | | | 188,001 | | | 945,727 | | Effect of changes in instrument-specific credit risk | 82,969 | | | 27,080 | | | 110,049 | | | (146,505) | | | (44,165) | | | (190,670) | | Balance as of end of period | 836,182 | | | 186,840 | | | 1,023,022 | | | 611,221 | | | 143,836 | | | 755,057 | | Less: reinsurance recoverable as of the end of the period | — | | | (12,820) | | | (12,820) | | | — | | | (14,913) | | | (14,913) | | Balance as of end of period, net of reinsurance recoverable | $ | 836,182 | | | $ | 174,020 | | | $ | 1,010,202 | | | $ | 611,221 | | | $ | 128,923 | | | $ | 740,144 | | | | | | | | | | | | | | Net amount at risk | $ | 4,356,548 | | | $ | 1,289,163 | | | $ | 5,645,711 | | | $ | 3,980,500 | | | $ | 1,277,299 | | | $ | 5,257,799 | | Weighted-average attained age of contract holders (years) | 70 | | 69 | | 70 | | 70 | | 71 | | 70 |
The following reflects the reconciliation of the market risk benefits reflected in the preceding table to the amounts reported in an asset and liability position, respectively, in the consolidated statements of financial condition as of March 31, 2024 and December 31, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of March 31, 2024 | | As of December 31, 2023 | | Asset | | Liability | | Net | | Asset | | Liability | | Net | Fixed-indexed annuities | $ | 23 | | | $ | 836,205 | | | $ | (836,182) | | | $ | — | | | $ | 868,268 | | | $ | (868,268) | | Variable- and other annuities | 8 | | | 186,848 | | | (186,840) | | | 17 | | | 252,700 | | | (252,683) | | Total | $ | 31 | | | $ | 1,023,053 | | | $ | (1,023,022) | | | $ | 17 | | | $ | 1,120,968 | | | $ | (1,120,951) | |
Separate account liabilities Separate account assets and liabilities consist of investment accounts established and maintained by Global Atlantic for certain variable annuity and interest-sensitive life insurance contracts. Some of these contracts include minimum guarantees such as GMDBs and GMWBs that guarantee a minimum payment to the policyholder. The assets that support these variable annuity and interest-sensitive life insurance contracts are measured at fair value and are reported as separate account assets on the consolidated statements of financial condition. An equivalent amount is reported as separate account liabilities. Market risk benefit assets and liabilities for minimum guarantees are valued and presented separately from separate account assets and separate account liabilities. For more information on market risk benefits see “—Market risk benefits” in this footnote. Policy charges assessed against the policyholders for mortality, administration and other services are included in “Policy fees” in the consolidated statements of operations. The following table presents the balances of and changes in separate account liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2024 | | March 31, 2023 | | Variable annuities | | Interest-sensitive life | | Total | | Variable annuities | | Interest-sensitive life | | Total | Balance as of beginning of period | $ | 3,565,029 | | | $ | 541,971 | | | $ | 4,107,000 | | | $ | 3,627,769 | | | $ | 503,025 | | | $ | 4,130,794 | | Premiums and deposits | 6,519 | | | 3,444 | | | 9,963 | | | 10,655 | | | 3,581 | | | 14,236 | | Surrenders, withdrawals and benefit payments | (134,786) | | | (5,223) | | | (140,009) | | | (108,408) | | | (3,716) | | | (112,124) | | Investment performance | 241,056 | | | 44,942 | | | 285,998 | | | 141,071 | | | 31,944 | | | 173,015 | | Other | (28,267) | | | (11,512) | | | (39,779) | | | (29,652) | | | (11,466) | | | (41,118) | | Balance as of end of period | $ | 3,649,551 | | | $ | 573,622 | | | $ | 4,223,173 | | | $ | 3,641,435 | | | $ | 523,368 | | | $ | 4,164,803 | | | | | | | | | | | | | | Cash surrender value as of end of period(1) | $ | 3,649,551 | | | $ | 573,622 | | | $ | 4,223,173 | | | $ | 3,641,435 | | | $ | 523,368 | | | $ | 4,164,803 | |
(1)Cash surrender value attributed to the separate accounts does not reflect the impact of surrender charges; surrender charges are attributed to policyholder account balances recorded in the general account. The following table presents the aggregate fair value of assets, by major investment asset type, supporting separate accounts: | | | | | | | | | | | | | March 31, 2024 | | December 31, 2023 | Asset type: | | | | Managed volatility equity/fixed income blended fund | $ | 2,152,615 | | | $ | 2,131,149 | | Equity | 1,688,119 | | | 1,596,467 | | Fixed income | 149,305 | | | 152,398 | | Money market | 232,510 | | | 226,387 | | Alternative | 624 | | | 599 | | Total assets supporting separate account liabilities | $ | 4,223,173 | | | $ | 4,107,000 | |
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