Separate Account Assets and Liabilities

3 Months Ended

Mar. 31, 2024

14. Separate Account Assets and Liabilities

We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder and the separate account meets additional accounting criteria to qualify for separate account treatment. The assets supporting the variable portion of variable annuity and variable universal life contracts that qualify for separate account treatment are carried at fair value and are reported as separate account assets, with an equivalent summary total reported as separate account liabilities. The assets of separate accounts are legally segregated and are not subject to claims that arise from any of our other businesses.

Policy values for variable products and investment contracts are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units in the separate accounts, plus any liabilities for MRBs.

Amounts assessed against the policyholders for mortality, administrative and other services are included in policy fees. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such separate accounts are offset within the same line in the Condensed Consolidated Statements of Income (Loss).

For discussion of the fair value measurement of guaranteed benefits that are accounted for as MRBs, see Note 5.

The following table presents fair value of separate account investment options:


	March 31, 2024						December 31, 2023
(in millions)	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Total		Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Total
Equity funds	$	26,945	$	30,285	$	900	$	635	$	58,765	$	25,451	$	28,675	$	819	$	593	$	55,538
Bond funds	4,121		3,315		45		1,281		8,762		4,037		3,292		44		1,303		8,676
Balanced funds	18,179		5,663		55		2,062		25,959		17,711		5,479		53		1,923		25,166
Money market funds	693		802		16		176		1,687		694		742		16		173		1,625
Total	$	49,938	$	40,065	$	1,016	$	4,154	$	95,173	$	47,893	$	38,188	$	932	$	3,992	$	91,005

The following table presents the balances and changes in Separate account liabilities:


Three Months Ended March 31, 2024	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Total
(in millions)
Balance, beginning of year	$	47,893	$	38,188	$	932	$	3,992	$	91,005
Premiums and deposits	294		340		9		69		712
Policy charges	(288)		(115)		(12)		(24)		(439)
Surrenders and withdrawals	(1,193)		(1,052)		(9)		(31)		(2,285)
Benefit payments	(239)		(154)		(2)		(5)		(400)
Investment performance	3,451		2,934		98		139		6,622
Net transfers from (to) general account and other	20		(76)		—		14		(42)

Balance, end of period	$	49,938	$	40,065	$	1,016	$	4,154	$	95,173

Cash surrender value*	$	48,975	$	39,865	$	995	$	4,150	$	93,985


Three Months Ended March 31, 2023

Balance, beginning of year	$	45,178	$	34,361	$	799	$	4,515	$	84,853
Premiums and deposits	451		360		9		26		846
Policy charges	(344)		(110)		(12)		(24)		(490)
Surrenders and withdrawals	(844)		(669)		(6)		(404)		(1,923)
Benefit payments	(215)		(130)		(1)		(54)		(400)
Investment performance	2,131		2,186		53		99		4,469
Net transfers from (to) general account and other	73		(78)		(1)		8		2

Balance, end of period	$	46,430	$	35,920	$	841	$	4,166	$	87,357

Cash surrender value*	$	45,388	$	35,726	$	794	$	4,168	$	86,076

*The cash surrender value represents the amount of the contract holder’s account balance distributable at the balance sheet date less applicable surrender charges.

Separate account liabilities primarily represent the contract holder's account balance in separate account assets and will be equal and offsetting to total separate account assets.