Long-duration Contracts (Tables)

9 Months Ended

Sep. 30, 2023

Insurance [Abstract]

Policyholder Account Balance

The following represents a rollforward of the policyholder account balance by product within interest sensitive contract liabilities. Where explicit policyholder account balances do not exist, the disaggregated rollforward represents the recorded reserve.

	Nine months ended September 30, 2023
(In millions, except percentages)	Traditional deferred annuities			Indexed annuities			Funding agreements			Other investment-type			Total
Balance at December 31, 2022	$	43,518		$	92,660		$	27,439		$	4,722		$	168,339
Deposits	18,011			8,960			4,893			3,760			35,624
Policy charges	(2)			(481)			—			—			(483)
Surrenders and withdrawals	(8,207)			(8,292)			(110)			(25)			(16,634)
Benefit payments	(738)			(1,216)			(2,264)			(223)			(4,441)
Interest credited	1,284			802			628			110			2,824
Foreign exchange	(77)			(1)			(26)			(344)			(448)
Other 1	63			77			(46)			(1,419)			(1,325)
Balance at September 30, 2023	$	53,852		$	92,509		$	30,514		$	6,581		$	183,456
	September 30, 2023
Weighted average crediting rate	3.7		%	2.3		%	3.1		%	2.7		%	2.9		%
Net amount at risk	$	425		$	14,438		$	—		$	104		$	14,967
Cash surrender value	50,352			84,052			—			5,335			139,739
1 Other includes a $1,371 million reduction of reserves related to the Venerable Insurance and Annuity Company (VIAC) recapture agreement. See Note 13 – Related Parties for further information.

	Nine months ended September 30, 2022
(In millions, except percentages)	Traditional deferred annuities			Indexed annuities			Funding agreements			Other investment-type			Total
Balance at January 1, 2022	$	35,599		$	89,755		$	23,623		$	2,413		$	151,390
Deposits	7,475			8,110			6,770			1,995			24,350
Policy charges	(2)			(441)			—			—			(443)
Surrenders and withdrawals	(3,435)			(5,679)			(505)			(9)			(9,628)
Benefit payments	(703)			(1,215)			(2,659)			(249)			(4,826)
Interest credited	718			1,487			474			64			2,743
Foreign exchange	—			—			(899)			(109)			(1,008)
Other	—			—			(693)			(17)			(710)
Balance at September 30, 2022	$	39,652		$	92,017		$	26,111		$	4,088		$	161,868
	September 30, 2022
Weighted average crediting rate	2.9		%	2.1		%	2.2		%	2.9		%	2.3		%
Net amount at risk	$	421		$	13,169		$	—		$	36		$	13,626
Cash surrender value	37,777			83,705			—			1,686			123,168

Policyholder Account Balance and Liability for Unpaid Claims and Claims Adjustment Expense

The following is a reconciliation of interest sensitive contract liabilities to the condensed consolidated balance sheets:

	September 30,
(In millions)	2023		2022
Traditional deferred annuities	$	53,852	$	39,652
Indexed annuities	92,509		92,017
Funding agreements	30,514		26,111
Other investment-type	6,581		4,088
Reconciling items1	5,609		5,010
Interest sensitive contract liabilities	$	189,065	$	166,878
1 Reconciling items primarily include embedded derivatives in indexed annuities, unaccreted host contract adjustments on indexed annuities, negative VOBA, sales inducement liabilities and wholly ceded universal life insurance contracts.

The following is a reconciliation of future policy benefits to the condensed consolidated balance sheets:

	September 30,
(In millions)	2023		2022
Payout annuities with life contingencies	$	40,840	$	35,515
Reconciling items1	5,832		5,770
Future policy benefits	$	46,672	$	41,285
1 Reconciling items primarily include the deferred profit liability and negative VOBA associated with our liability for future policy benefits. Additionally, it includes reserves for our immaterial lines of business including term and whole life, accident and health and disability, as well as other insurance benefit reserves for our no-lapse guarantees with universal life contracts, all of which are fully ceded.

Policyholder Account Balance, Guaranteed Minimum Crediting Rate

The following represents policyholder account balances by range of guaranteed minimum crediting rates, as well as the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums:

	September 30, 2023
(In millions)	At guaranteed minimum		1 basis point – 100 basis points above guaranteed minimum		Greater than 100 basis points above guaranteed minimum		Total
< 2.0%	$	28,564	$	19,709	$	90,121	$	138,394
2.0% – < 4.0%	28,838		1,128		541		30,507
4.0% – < 6.0%	11,433		9		1		11,443
6.0% and greater	3,112		—		—		3,112
Total	$	71,947	$	20,846	$	90,663	$	183,456

	September 30, 2022
(In millions)	At guaranteed minimum		1 basis point – 100 basis points above guaranteed minimum		Greater than 100 basis points above guaranteed minimum		Total
< 2.0%	$	25,599	$	26,909	$	65,484	$	117,992
2.0% – < 4.0%	37,150		1,491		477		39,118
4.0% – < 6.0%	4,611		11		6		4,628
6.0% and greater	130		—		—		130
Total	$	67,490	$	28,411	$	65,967	$	161,868

Liability for Future Policy Benefit, Activity

The following table summarizes future policy benefits and changes to the liability:

(In millions)	Traditional deferred annuities		Indexed annuities		Payout annuities		Reconciling items1		Total
Balance as of January 1, 2022	$	221	$	5,389	$	32,872	$	8,632	$	47,114
Change in discount rate assumptions	—		—		2,406		—		2,406
Adjustment for removal of balances related to market risk benefits	(221)		(5,389)		—		—		(5,610)
Adjustment for offsetting balance in negative VOBA2	—		—		—		(2,428)		(2,428)
Adjusted balance as of January 1, 2022	$	—	$	—	$	35,278	$	6,204	$	41,482
1 Reconciling items primarily include negative VOBA associated with our liability for future policy benefits, as well as reserves for our immaterial lines of business including term and whole life, accident and health and disability, as well as other insurance benefit reserves for our no-lapse guarantees with universal life contracts, all of which are fully ceded.
2 Uneliminated adjustments were recorded to positive VOBA within deferred acquisition costs, deferred sales inducements and value of business acquired on the condensed consolidated balance sheets.

The following is a rollforward of the expected value of future policy benefits:

	Payout annuities with life contingencies
	Nine months ended September 30,
(In millions)	2023		2022
Present value of expected future policy benefits
Beginning balance	$	36,422	$	35,278
Effect of changes in discount rate assumptions	8,425		—
Beginning balance at original discount rate	44,847		35,278
Effect of changes in cash flow assumptions	(297)		—
Effect of actual experience compared to expected experience	(36)		(115)
Adjusted balance	44,514		35,163
Issuances	9,120		10,666
Interest accrual	1,194		802
Benefit payments	(2,731)		(2,193)
Foreign exchange	5		(90)
Other1	(1,509)		—
Ending balance at original discount rate	50,593		44,348
Effect of changes in discount rate assumptions	(9,753)		(8,833)
Ending balance	$	40,840	$	35,515
1 Other represents $1,509 million reduction of reserves related to the VIAC recapture agreement. See Note 13 – Related Parties for further information.

The following is a reconciliation of premiums to the condensed consolidated statements of income (loss):

	Nine months ended September 30,
(In millions)	2023		2022
Payout annuities with life contingencies	$	9,142	$	10,745
Reconciling items1	21		24
Premiums	$	9,163	$	10,769
1 Reconciling items premiums related to our immaterial lines of business including term and whole life, and accident and health and disability.

The following represents the undiscounted and discounted expected future benefit payments for the liability for future policy benefits. As these relate to payout annuities for single premium immediate annuities with life contingencies, there are no expected future gross premiums.

	September 30, 2023				September 30, 2022
(In millions)	Undiscounted		Discounted		Undiscounted		Discounted
Expected future benefit payments	$	73,933	$	50,593	$	63,743	$	44,348

The following represents the weighted-average durations and the weighted-average interest rates of future policy benefits:

	September 30,
	2023		2022
Weighted-average liability duration (in years)	9.6		10.2
Weighted-average interest accretion rate	3.6	%	3.1	%
Weighted-average current discount rate	6.1	%	5.6	%

Additional Liability, Long-Duration Insurance

The following is a summary of remeasurement gains (losses) included within future policy and other policy benefits on the condensed consolidated statements of income (loss):

	Nine months ended September 30,
(In millions)	2023		2022
Reserves	$	333	$	115
Deferred profit liability	(243)		(110)
Negative VOBA	(54)		—
Total remeasurement gains (losses)	$	36	$	5

Market Risk Benefit, Activity

The following table presents the net liability position of market risk benefits:

(In millions)	Traditional deferred annuities		Indexed annuities		Total
Balance as of January 1, 2022	$	—	$	—	$	—
Adjustment for addition of existing balances1	221		5,389		5,610
Adjustment to positive VOBA due to fair value adjustment for market risk benefits2	32		(1,165)		(1,133)
Adjustment to negative VOBA due to fair value adjustment for market risk benefits3	—		(30)		(30)
Adjusted balance as of January 1, 2022	$	253	$	4,194	$	4,447
1 Previously recorded within future policy benefits on the condensed consolidated balance sheets.
2 Previously recorded within deferred acquisition costs, deferred sales inducements and value of business acquired on the condensed consolidated balance sheets.
3 Previously recorded within interest sensitive contract liabilities on the condensed consolidated balance sheets.

The following table represents market risk benefits by asset and liability positions:

(In millions)	Asset1		Liability		Net liability
Traditional deferred annuities	$	—	$	253	$	253
Indexed annuities	366		4,560		4,194
Adjusted balance as of January 1, 2022	$	366	$	4,813	$	4,447
1 Included in other assets on the condensed consolidated balance sheets.

The following is a rollfoward of net market risk benefit liabilities by product:

	Nine months ended September 30, 2023
(In millions)	Traditional deferred annuities		Indexed annuities		Total
Balance at December 31, 2022	$	170	$	2,319	$	2,489
Effect of changes in instrument-specific credit risk	13		353		366
Balance, beginning of period, before changes in instrument-specific credit risk	183		2,672		2,855
Issuances	—		47		47
Interest accrual	7		108		115
Attributed fees collected	2		250		252
Benefit payments	(1)		(24)		(25)
Effect of changes in interest rates	(18)		(591)		(609)
Effect of changes in equity	—		(26)		(26)
Effect of actual behavior compared to expected behavior	4		42		46
Effect of changes in future expected policyholder behavior	(3)		78		75
Effect of changes in other future expected assumptions	—		6		6
Balance, end of period, before changes in instrument-specific credit risk	174		2,562		2,736
Effect of changes in instrument-specific credit risk	(7)		(139)		(146)
Balance at September 30, 2023	$	167	$	2,423	$	2,590
	September 30, 2023
Net amount at risk	$	425	$	14,438	$	14,863
Weighted-average attained age of contract holders (in years)	75		69		69

	Nine months ended September 30, 2022
(In millions)	Traditional deferred annuities		Indexed annuities		Total
Balance at January 1, 2022	$	253	$	4,194	$	4,447
Issuances	—		42		42
Interest accrual	2		24		26
Attributed fees collected	2		245		247
Benefit payments	(3)		(38)		(41)
Effect of changes in interest rates	(77)		(2,016)		(2,093)
Effect of changes in equity	—		188		188
Effect of actual behavior compared to expected behavior	4		27		31
Effect of changes in other future expected assumptions	(2)		(41)		(43)
Balance, end of period, before changes in instrument-specific credit risk	179		2,625		2,804
Effect of changes in instrument-specific credit risk	(18)		(506)		(524)
Balance at September 30, 2022	$	161	$	2,119	$	2,280
	September 30, 2022
Net amount at risk	$	421	$	13,169	$	13,590
Weighted-average attained age of contract holders (in years)	75		69		69

The following is a reconciliation of market risk benefits to the condensed consolidated balance sheets. Market risk benefit assets are included in other assets on the condensed consolidated balance sheets.

	September 30, 2023						September 30, 2022
(In millions)	Asset		Liability		Net liability		Asset		Liability		Net liability
Traditional deferred annuities	$	—	$	167	$	167	$	—	$	161	$	161
Indexed annuities	431		2,854		2,423		511		2,630		2,119
Total	$	431	$	3,021	$	2,590	$	511	$	2,791	$	2,280

Summary of the Unobservable Inputs for the Embedded Derivative of Fixed Indexed Annuities

The following summarizes the unobservable inputs for AFS, trading and equity securities, mortgage loans, investment funds and the embedded derivatives of fixed indexed annuities, including those of consolidated VIEs:

	September 30, 2023
(In millions, except for percentages and multiples)	Fair value		Valuation technique	Unobservable inputs	Minimum		Maximum		Weighted average			Impact of an increase in the input on fair value
AFS, trading and equity securities	$	14,272	Discounted cash flow	Discount rate	2.3	%	18.8	%	7.2	%	1	Decrease
Mortgage loans	41,254		Discounted cash flow	Discount rate	2.2	%	21.9	%	7.0	%	1	Decrease
Investment funds	483		Discounted cash flow	Discount rate	6.3	%	6.3	%	6.3	%		Decrease
	511		Net tangible asset values	Implied multiple	1.18x		1.18x		1.18x			Increase
	408		Reported net asset value	Reported net asset value	N/A		N/A		N/A			N/A
Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives	7,345		Discounted cash flow	Nonperformance risk	0.6	%	1.6	%	1.2	%	2	Decrease
				Option budget	0.5	%	5.9	%	2.3	%	3	Increase
				Surrender rate	6.7	%	13.3	%	8.8	%	3	Decrease
	December 31, 2022
(In millions, except for percentages and multiples)	Fair value		Valuation technique	Unobservable inputs	Minimum		Maximum		Weighted average			Impact of an increase in the input on fair value
AFS, trading and equity securities	$	10,671	Discounted cash flow	Discount rate	2.2	%	18.8	%	6.8	%	1	Decrease
Mortgage loans	30,811		Discounted cash flow	Discount rate	1.5	%	22.1	%	6.3	%	1	Decrease
Investment funds	506		Discounted cash flow	Discount rate	6.4	%	6.4	%	6.4	%		Decrease
	873		Discounted cash flow / Guideline public equity	Discount rate / P/E	16.5% / 9x		16.5% / 9x		16.5% / 9x			Decrease/Increase
	529		Net tangible asset values	Implied multiple	1.26x		1.26x		1.26x			Increase
	563		Reported net asset value	Reported net asset value	N/A		N/A		N/A			N/A
Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives	5,841		Discounted cash flow	Nonperformance risk	0.1	%	1.7	%	1.0	%	2	Decrease
				Option budget	0.5	%	5.3	%	1.9	%	3	Increase
				Surrender rate	5.1	%	11.5	%	8.1	%	3	Decrease
1 The discount rate weighted average is calculated based on the relative fair values of the securities or loans.
2 The nonperformance risk weighted average is based on the projected cash flows attributable to the embedded derivative.
3 The option budget and surrender rate weighted averages are calculated based on projected account values.

The following summarizes the unobservable inputs for market risk benefits:

	September 30, 2023
(In millions, except for percentages)	Fair value		Valuation technique	Unobservable inputs	Minimum		Maximum		Weighted average			Impact of an increase in the input on fair value
Market risk benefits, net	$	2,590	Discounted cash flow	Nonperformance risk	0.6	%	1.6	%	1.4	%	1	Decrease
				Option budget	0.5	%	5.9	%	1.9	%	2	Decrease
				Surrender rate	3.4	%	6.5	%	4.6	%	2	Decrease
				Utilization rate	28.6	%	95.0	%	83.2	%	3	Increase
	September 30, 2022
(In millions, except for percentages)	Fair value		Valuation technique	Unobservable inputs	Minimum		Maximum		Weighted average			Impact of an increase in the input on fair value
Market risk benefits, net	$	2,280	Discounted cash flow	Nonperformance risk	0.6	%	1.9	%	1.6	%	1	Decrease
				Option budget	0.5	%	4.5	%	1.6	%	2	Decrease
				Surrender rate	3.3	%	6.8	%	4.5	%	2	Decrease
				Utilization rate	28.6	%	95.0	%	81.9	%	3	Increase
1 The nonperformance risk weighted average is based on the cash flows underlying the market risk benefit reserve.
2 The option budget and surrender rate weighted averages are calculated based on projected account values.
3 The utilization of GLWB withdrawals represents the estimated percentage of policyholders that are expected to use their income rider over the duration of the contract, with the weighted average based on current account values.