Market Risk Benefits

12 Months Ended

Dec. 31, 2023

5. Market Risk Benefits

Information regarding MRB assets and liabilities associated with variable annuities was as follows:


	Years Ended December 31,
	2023		2022		2021
	(Dollars in millions)
Balance, beginning of year	$	9,974	$	15,698	$	18,388
Balance, beginning of year, before effect of changes in nonperformance risk	8,230		11,611		14,934
Decrements	(176)		16		(68)
Effect of changes in future expected assumptions	259		210		41
Effect of actual different from expected experience	187		(48)		(86)
Effect of changes in interest rates	(428)		(8,394)		(1,829)
Effect of changes in fund returns	(2,203)		3,807		(2,578)
Issuances	(7)		(47)		(96)
Effect of changes in risk margin	(34)		(152)		(128)
Aging of the block and other	1,498		1,227		1,421
Balance, end of year, before effect of changes in nonperformance risk	7,326		8,230		11,611
Effect of changes in nonperformance risk	2,375		1,744		4,087
Balance, end of year	9,701		9,974		15,698
Less: Reinsurance recoverable, end of year	43		71		118
Balance, end of year, net of reinsurance (1)	$	9,658	$	9,903	$	15,580
Weighted-average attained age of contract holder	72.9 years		71.8 years		71.1 years

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(1)Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at December 31, 2023, 2022 and 2021, with the exception of $9 million, $3 million and $5 million, respectively, of index-linked annuities not included in this table.

Market conditions, including, but not limited to, changes in interest rates, equity indices, market volatility and variations in actuarial assumptions, including policyholder behavior, mortality and risk margins related to non-capital markets inputs, as well as changes in nonperformance risk, may result in significant fluctuations in the estimated fair value of the guarantees. As part of the AAR in 2023 and 2022, the Company updated assumptions regarding policyholder behavior, mortality, separate account fund allocations and volatility, which are reflected in the table above.