Market Risk Benefits (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Market Risk Benefit, Activity

Components of the Company’s reinsurance recoverable on market risk benefits were as follows (in millions):


	March 31,		December 31,
	2024		2023
Variable annuity	$	72	$	90
Other product lines	54		59
Total	$	126	$	149

The following table presents a roll-forward of Closed Block Life additional liabilities for annuitization, death and other insurance benefits (in millions):


	Three Months Ended March 31, 2024		Year Ended December 31, 2023
Balance, beginning of period	$	1,153	$	1,131
Beginning of period cumulative effect of changes in shadow adjustments	17		41
Beginning balance excluding shadow	1,170		1,172
Effect of changes in cash flow assumptions	—		44
Effect of actual variances from expected experience	10		46

Interest accrual	14		56
Net assessments collected	(47)		(148)

Ending balance excluding shadow	1,147		1,170
End of period cumulative effect of changes in shadow adjustments	(22)		(17)
Balance, end of period	$	1,125	$	1,153

The following table presents the weighted average duration of Closed Block Life additional liabilities for annuitization, death and other insurance benefits. The weighted average duration represents average cohort-level duration weighted by the benefit reserves amount:


	March 31, 2024	December 31, 2023
Weighted average duration (years)	9.5	9.7

The following table presents assessments and interest expense of Closed Block Life additional liabilities for annuitization, death and other insurance benefits recognized in the Condensed Consolidated Income Statements (in millions):


	Assessments				Interest Expense
	Three Months Ended March 31, 2024		Year Ended December 31, 2023		Three Months Ended March 31, 2024		Year Ended December 31, 2023
Additional liability for annuitization, death and other insurance benefits	$	(47)	$	(148)	$	14	$	56

The following table presents the weighted average current discount rate of Closed Block Life additional liabilities for annuitization, death and other insurance benefits, applied at the cohort level weighted by reserve benefit amount:


	March 31, 2024		December 31, 2023
Weighted average current discount rate	4.97	%	4.97	%

The following table presents the reconciliation of the market risk benefits balance in the Condensed Consolidated Balance Sheets (in millions):


	March 31, 2024						December 31, 2023
	Variable		Other				Variable		Other
	Annuities		Product Lines		Total		Annuities		Product Lines		Total
Market risk benefit - (assets)	$	(8,020)	$	(5)	$	(8,025)	$	(6,732)	$	(5)	$	(6,737)
Market risk benefit - liabilities	3,794		49		3,843		4,732		53		4,785
Market risk benefit - net (asset) liability	$	(4,226)	$	44	$	(4,182)	$	(2,000)	$	48	$	(1,952)

Roll forward of the Separate Account Balance

The following table presents the roll-forward of the separate account balance for variable annuities (in millions):


	Three Months Ended March 31, 2024		Year Ended December 31, 2023
Balance as of beginning of period	$	219,381	$	195,550
Deposits	2,263		8,545
Surrenders, withdrawals and benefits	(5,857)		(17,029)
Net transfer from (to) general account	99		1,256
Investment performance	15,288		33,807
Policy charges and other	(695)		(2,748)
Balance as of end of period, gross	$	230,479	$	219,381



Cash surrender value (1)	$	225,521	$	214,395

(1) Cash surrender value represents the amount of the contract holder’s account balances distributable at the balance sheet date less applicable surrender charges.

The following table presents the roll-forward of the net MRB (assets) liabilities for variable annuities (dollars in millions):


	Three Months Ended March 31, 2024		Year Ended December 31, 2023
Net MRB balance, beginning of period	$	(2,000)	$	767
Beginning of period cumulative effect of changes in non-performance risk	972		2,185
Net MRB balance, beginning of period, before effect of changes in non-performance risk	(1,028)		2,952
Effect of changes in interest rates	(1,457)		(733)
Effect of fund performance	(1,851)		(5,401)
Effect of changes in equity index volatility	(205)		(1,107)
Effect of expected policyholder behavior	164		612
Effect of actual policyholder behavior different from expected	166		483
Effect of time	444		1,829
Effect of changes in assumptions	4		337
Net MRB balance, end of period, before effect of changes in non-performance risk	(3,763)		(1,028)
End of period cumulative effect of changes in non-performance risk	(463)		(972)
Net MRB balance, end of period, gross	(4,226)		(2,000)

Reinsurance recoverable on market risk benefits at fair value, end of period	(72)		(90)
Net MRB balance, end of period, net of reinsurance	(4,298)		(2,090)

Weighted average attained age (years) (1)	69		69
Net amount at risk (2)	$	6,327	$	8,225

(1) Weighted-average attained age is defined as the average age of policyholders weighted by account value.

(2) Net amount at risk (NAR) is defined as of the valuation date for each contract as the greater of Death Benefit NAR (DBNAR) and Living Benefit NAR (LBNAR), as applicable, where DBNAR is the GMDB benefit base in excess of the account value, and the LBNAR is the actuarial present value of guaranteed living benefits in excess of the account value.