In 2023, the Company recognized an immaterial impact to net income attributable to the actuarial assumption update for direct and assumed benefit reserves. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed additional insurance reserves, primarily due to unfavorable model refinements, partially offset by favorable updates to economic assumptions, including expected future rates of returns on investments on universal life policies with secondary guarantees.

In 2022, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed benefit reserves, primarily due to updates to mortality assumptions on individual term life insurance. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed additional insurance reserves, primarily due to updates to policyholder behavior assumptions on universal life policies with secondary guarantees.

The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits.


	Six Months Ended June 30, 2023
	Present Value of Expected Net Premiums
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	10,911,794	$	0	$	10,911,794
Effect of cumulative changes in discount rate assumptions, beginning of period	554,896		0		554,896
Balance at original discount rate, beginning of period	11,466,690		0		11,466,690

Effect of assumption update	(790)		0		(790)
Effect of actual variances from expected experience and other activity	(65,230)		(1,257)		(66,487)
Adjusted balance, beginning of period	11,400,670		(1,257)		11,399,413
Issuances	318,867		23,211		342,078
Net premiums / considerations collected	(674,147)		(21,954)		(696,101)
Interest accrual	261,862		0		261,862

Balance at original discount rate, end of period	11,307,252		0		11,307,252
Effect of cumulative changes in discount rate assumptions, end of period	(484,287)		0		(484,287)
Balance, end of period	$	10,822,965	$	0	$	10,822,965


	Six Months Ended June 30, 2023
	Present Value of Expected Future Policy Benefits
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	17,835,251	$	204,727	$	18,039,978
Effect of cumulative changes in discount rate assumptions, beginning of period	962,034		24,876		986,910
Balance at original discount rate, beginning of period	18,797,285		229,603		19,026,888

Effect of assumption update	(1,044)		0		(1,044)
Effect of actual variances from expected experience and other activity	(87,110)		4,195		(82,915)
Adjusted balance, beginning of period	18,709,131		233,798		18,942,929
Issuances	318,867		23,211		342,078
Interest accrual	447,387		4,201		451,588
Benefit payments	(716,919)		(14,838)		(731,757)
Other adjustments	1,558		(33)		1,525
Balance at original discount rate, end of period	18,760,024		246,339		19,006,363
Effect of cumulative changes in discount rate assumptions, end of period	(791,413)		(26,245)		(817,658)
Balance, end of period	$	17,968,611	$	220,094	$	18,188,705
Other, end of period					1,941
Total balance, end of period					$	18,190,646


	Six Months Ended June 30, 2023
	Net Liability for Future Policy Benefits (Benefit Reserves)
	Term Life		Fixed Annuities		Total
	(in thousands)


Balance, end of period, post-flooring	$	7,145,646	$	220,094	$	7,365,740
Less: Reinsurance recoverable	6,614,071		17,835		6,631,906
Balance after reinsurance recoverable, end of period, post-flooring	$	531,575	$	202,259	$	733,834


	Six Months Ended June 30, 2022
	Present Value of Expected Net Premiums
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	12,485,056	$	0	$	12,485,056
Effect of cumulative changes in discount rate assumptions, beginning of period	(1,826,120)		0		(1,826,120)
Balance at original discount rate, beginning of period	10,658,936		0		10,658,936

Effect of assumption update	1,295,294		0		1,295,294
Effect of actual variances from expected experience and other activity	(84,412)		(78)		(84,490)
Adjusted balance, beginning of period	11,869,818		(78)		11,869,740
Issuances	187,092		17,356		204,448
Net premiums / considerations collected	(657,195)		(17,278)		(674,473)
Interest accrual	257,706		0		257,706

Balance at original discount rate, end of period	11,657,421		0		11,657,421
Effect of cumulative changes in discount rate assumptions, end of period	22,765		0		22,765
Balance, end of period	$	11,680,186	$	0	$	11,680,186


	Six Months Ended June 30, 2022
	Present Value of Expected Future Policy Benefits
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	20,937,097	$	237,065	$	21,174,162
Effect of cumulative changes in discount rate assumptions, beginning of period	(3,607,275)		(16,704)		(3,623,979)
Balance at original discount rate, beginning of period	17,329,822		220,361		17,550,183

Effect of assumption update	1,756,995		0		1,756,995
Effect of actual variances from expected experience and other activity	(167,637)		351		(167,286)
Adjusted balance, beginning of period	18,919,180		220,712		19,139,892
Issuances	187,092		17,357		204,449
Interest accrual	436,119		3,809		439,928
Benefit payments	(738,715)		(13,658)		(752,373)
Other adjustments	1,781		(285)		1,496
Balance at original discount rate, end of period	18,805,457		227,935		19,033,392
Effect of cumulative changes in discount rate assumptions, end of period	144,406		(16,737)		127,669
Balance, end of period	$	18,949,863	$	211,198	$	19,161,061
Other, end of period					2,235
Total balance, end of period					$	19,163,296


	Six Months Ended June 30, 2022
	Net Liability for Future Policy Benefits (Benefit Reserves)
	Term Life		Fixed Annuities		Total
	(in thousands)


Balance, end of period, post-flooring	$	7,269,677	$	211,198	$	7,480,875
Less: Reinsurance recoverable	6,847,216		16,488		6,863,704
Balance after reinsurance recoverable, end of period, post-flooring	$	422,461	$	194,710	$	617,171

The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated:


	Six Months Ended June 30, 2023
	Term Life			Fixed Annuities
	($ in thousands)
Undiscounted expected future gross premiums	$	21,948,491		$	0
Discounted expected future gross premiums (at original discount rate)	$	15,125,847		$	0
Discounted expected future gross premiums (at current discount rate)	$	14,493,623		$	0
Undiscounted expected future benefits and expenses	$	29,156,389		$	328,414
Interest accrual	$	185,524		$	4,201
Gross premiums	$	900,634		$	24,200
Weighted-average duration of the liability in years (at original discount rate)	10			7
Weighted-average duration of the liability in years (at current discount rate)	10			6
Weighted-average interest rate (at original discount rate)	5.20		%	3.57		%
Weighted-average interest rate (at current discount rate)	5.28		%	5.27		%


	Six Months Ended June 30, 2022
	Term Life			Fixed Annuities
	($ in thousands)
Undiscounted expected future gross premiums	$	22,348,506		$	0
Discounted expected future gross premiums (at original discount rate)	$	15,414,984		$	0
Discounted expected future gross premiums (at current discount rate)	$	15,442,782		$	0
Undiscounted expected future benefits and expenses	$	29,470,523		$	302,195
Interest accrual	$	178,413		$	3,809
Gross premiums	$	925,202		$	19,545
Weighted-average duration of the liability in years (at original discount rate)	11			7
Weighted-average duration of the liability in years (at current discount rate)	10			6
Weighted-average interest rate (at original discount rate)	5.28		%	3.44		%
Weighted-average interest rate (at current discount rate)	4.63		%	4.54		%

For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss.

In the first six months of 2023, there was a $30 million gain in net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, which was offset by a $30 million charge, reflecting the impact of ceded reinsurance on the affected cohorts.

In the first six months of 2022, there was a $99 million charge to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $97 million gain, reflecting the impact of ceded reinsurance on the affected cohorts. The unfavorable impact in the first six months of 2022 is primarily due to unfavorable assumption updates related to individual term life products.


	Six Months Ended June 30,
	2023		2022
	Fixed Annuities
	(in thousands)
Balance, beginning of period	$	18,193	$	15,765

Effect of actual variances from expected experience and other activity	(5,092)		(607)
Adjusted balance, beginning of period	13,101		15,158
Profits deferred	2,088		2,173
Interest accrual	294		276
Amortization	(973)		(950)
Other adjustments	(8)		(25)
Balance, end of period	14,502		16,632


Less: Reinsurance recoverable	1,558		1,722
Balance after reinsurance recoverable	$	12,944	$	14,910

The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated:


	Six Months Ended June 30,
	2023		2022
	(in thousands)
Balance, including amounts in AOCI, beginning of period, post-flooring	$	12,664,445	$	11,660,527
Flooring impact and amounts in AOCI	1,269,237		(896,930)





Balance, excluding amounts in AOCI, beginning of period, pre-flooring	13,933,682		10,763,597
Effect of assumption update	22,910		2,197,592
Effect of actual variances from expected experience and other activity	26,204		(157,782)
Adjusted balance, beginning of period	13,982,796		12,803,407
Assessments collected(1)	513,593		446,443
Interest accrual	237,869		203,986
Benefits paid	(151,097)		(100,856)

Balance, excluding amounts in AOCI, end of period, pre-flooring	14,583,161		13,352,980





Flooring impact and amounts in AOCI	(1,094,298)		(859,387)
Balance, including amounts in AOCI, end of period, post-flooring	13,488,863		12,493,593
Less: Reinsurance recoverable	13,268,534		12,282,253
Balance after reinsurance recoverable, including amounts in AOCI, end of period	$	220,329	$	211,340


	Six Months Ended June 30,
	2023			2022

	($ in thousands)
Interest accrual	$	237,869		$	203,986
Gross assessments	$	785,370		$	627,513
Weighted-average duration of the liability in years (at original discount rate)	22			23
Weighted-average interest rate (at original discount rate)	3.39		%	3.72		%

The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Consolidated Statements of Financial Position as of the periods indicated:


	Six Months Ended June 30,
	2023		2022
	(in thousands)
Benefit reserves, end of period, post-flooring	$	7,365,740	$	7,480,875
Deferred profit liability, end of period, post-flooring	14,502		16,632
Additional insurance reserves, including amounts in AOCI, end of period, post-flooring	13,488,863		12,493,593
Subtotal of amounts disclosed above	20,869,105		19,991,100


Other Future policy benefits reserves(1)	1,108,889		1,035,166
Total Future policy benefits	$	21,977,994	$	21,026,266

The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Consolidated Statement of Operations for the periods indicated:


	Six Months Ended June 30, 2023
	Revenues(1)
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	900,634	$	0	$	24,200	$	924,834
Deferred profit liability	0		0		3,691		3,691
Additional insurance reserves	0		785,370		0		785,370
Total	$	900,634	$	785,370	$	27,891	$	1,713,895



	Six Months Ended June 30, 2022
	Revenues(1)
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	925,202	$	0	$	19,545	$	944,747
Deferred profit liability	0		0		(867)		(867)
Additional insurance reserves	0		627,513		0		627,513
Total	$	925,202	$	627,513	$	18,678	$	1,571,393


	Six Months Ended June 30, 2023
	Interest Expense
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	185,524	$	0	$	4,201	$	189,725
Deferred profit liability	0		0		294		294
Additional insurance reserves	0		237,869		0		237,869
Total	$	185,524	$	237,869	$	4,495	$	427,888


	Six Months Ended June 30, 2022
	Interest Expense
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	178,413	$	0	$	3,809	$	182,222
Deferred profit liability	0		0		276		276
Additional insurance reserves	0		203,986		0		203,986
Total	$	178,413	$	203,986	$	4,085	$	386,484


	Six Months Ended June 30, 2023

	Variable Annuities			Variable Life / Universal Life			Total
	($ in thousands)
Balance, beginning of period	$	16,432,032		$	18,736,365		$	35,168,397
Deposits	2,225,558			1,030,843			3,256,401
Interest credited	131,119			278,886			410,005

Policy charges	(10,684)			(903,228)			(913,912)
Surrenders and withdrawals	(233,470)			(400,194)			(633,664)
Benefit payments	(15,067)			(42,131)			(57,198)
Net transfers (to) from separate account(1)	4,995			1,035,554			1,040,549
Change in market value and other adjustments(2)	954,563			139,608			1,094,171

Balance, end of period	19,489,046			19,875,703			39,364,749
Less: Reinsurance and other recoverables(3)	418,986			12,872,063			13,291,049
Policyholders' account balance net of reinsurance and other recoverables	$	19,070,060		$	7,003,640		$	26,073,700
Unearned revenue reserve							3,401,994
Other(4)							4,841,412
Total Policyholders' account balance							$	47,608,155

Weighted-average crediting rate	1.46		%	2.89		%	2.20		%
Net amount at risk(5)	$	0		$	313,218,977		$	313,218,977
Cash surrender value(6)	$	17,391,104		$	18,341,323		$	35,732,427

(1) Variable life includes $900 million of funding for a policy loan to an affiliated irrevocable trust. See Note 14 for additional information.

(2) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products.

(3) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability.

(4) Includes $4,740 million of fixed annuities account balances.

(5) The net amount at risk calculation includes both general and separate account balances.

(6) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges.


	Six Months Ended June 30, 2022

	Variable Annuities			Variable Life / Universal Life			Total
	($ in thousands)
Balance, beginning of period	$	11,465,411		$	18,762,548		$	30,227,959
Deposits	2,709,044			1,085,659			3,794,703
Interest credited	31,825			290,089			321,914

Policy charges	(1,003)			(896,223)			(897,226)
Surrenders and withdrawals	(113,369)			(433,915)			(547,284)
Benefit payments	(20,563)			(54,384)			(74,947)
Net transfers (to) from separate account	157,771			126,364			284,135
Change in market value and other adjustments(1)	517,047			(232,805)			284,242

Balance, end of period	14,746,163			18,647,333			33,393,496
Less: Reinsurance and other recoverables(2)	334,311			12,954,996			13,289,307
Policyholders' account balance net of reinsurance and other recoverables	$	14,411,852		$	5,692,337		$	20,104,189
Unearned revenue reserve							2,729,057
Other(3)							3,081,856
Total Policyholders' account balance							$	39,204,409

Weighted-average crediting rate	0.49		%	3.10		%	2.02		%
Net amount at risk(4)	$	0		$	295,739,871		$	295,739,871
Cash surrender value(5)	$	11,912,977		$	17,028,535		$	28,941,512

(1) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products.

(2) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability.

(3) Includes $2,983 million of fixed annuities account balances.

(4) The net amount at risk calculation includes both general and separate account balances.

(5) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges.

The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid.

The net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns.

The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 10 for additional information, including the net amount at risk associated with these guarantees.


	June 30, 2023
Range of Guaranteed Minimum Crediting Rate(1)	At guaranteed minimum		1 -50 bps above guaranteed minimum		51 -150 bps above guaranteed minimum		Greater than 150 bps above guaranteed minimum		Total
	(in thousands)
Variable Annuities
Less than 1.00%	$	972,976	$	833,696	$	18,454	$	2	$	1,825,128
1.00% - 1.99%	229,049		2,126		1,094		0		232,269
2.00% - 2.99%	24,531		4,090		0		0		28,621
3.00% - 4.00%	990,408		2,859		0		0		993,267
Greater than 4.00%	2,091		0		0		0		2,091
Total	$	2,219,055	$	842,771	$	19,548	$	2	$	3,081,376
Variable Life / Universal Life
Less than 1.00%	$	0	$	0	$	0	$	9,078	$	9,078
1.00% - 1.99%	163,616		0		2,706,552		363,119		3,233,287
2.00% - 2.99%	21,001		1,399,691		2,765,577		267,001		4,453,270
3.00% - 4.00%	4,555,992		1,985,262		1,110,457		0		7,651,711
Greater than 4.00%	2,159,217		0		0		0		2,159,217
Total	$	6,899,826	$	3,384,953	$	6,582,586	$	639,198	$	17,506,563


	June 30, 2022
Range of Guaranteed Minimum Crediting Rate(1)	At guaranteed minimum		1 - 50 bps above guaranteed minimum		51 -150 bps above guaranteed minimum		Greater than 150 bps above guaranteed minimum		Total
	(in thousands)
Variable Annuities
Less than 1.00%	$	1,050,808	$	877,536	$	18,943	$	2	$	1,947,289
1.00% - 1.99%	251,989		1,682		0		0		253,671
2.00% - 2.99%	30,850		63		0		0		30,913
3.00% - 4.00%	1,127,302		0		0		0		1,127,302
Greater than 4.00%	2,146		0		0		0		2,146
Total	$	2,463,095	$	879,281	$	18,943	$	2	$	3,361,321
Variable Life / Universal Life
Less than 1.00%	$	16,033	$	0	$	0	$	0	$	16,033
1.00% - 1.99%	340,859		0		694,771		1,978,385		3,014,015
2.00% - 2.99%	8,519		0		2,259,847		2,099,855		4,368,221
3.00% - 4.00%	4,625,968		11,776		2,308,532		138,389		7,084,665
Greater than 4.00%	2,094,298		0		0		0		2,094,298
Total	$	7,085,677	$	11,776	$	5,263,150	$	4,216,629	$	16,577,232

(1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options.


	Six Months Ended June 30,
	2023		2022

	Variable Life / Universal Life
	(in thousands)


Balance, beginning of period	$	3,067,336	$	2,398,788
Unearned revenue	405,732		393,675
Amortization expense	(70,981)		(63,472)
Other adjustments	(93)		66

Balance, end of period	3,401,994		2,729,057
Less: Reinsurance recoverables	1,621,229		1,450,592
Unearned revenue reserve net of reinsurance recoverables	$	1,780,765	$	1,278,465


	Six Months Ended June 30, 2023
	Variable Annuities		Less: Reinsured Market Risk Benefits		Total, Net of Reinsurance
	(in thousands)
Balance, beginning of period	$	4,550,625	$	(422,261)	$	4,128,364
Effect of cumulative changes in non-performance risk	1,727,910		0		1,727,910
Balance, beginning of period, before effect of changes in non-performance risk	6,278,535		(422,261)		5,856,274
Attributed fees collected	587,663		(107,425)		480,238
Claims paid	(43,782)		3,681		(40,101)
Interest accrual	160,106		(20,505)		139,601
Actual in force different from expected	36,193		(6,069)		30,124
Effect of changes in interest rates	(671,989)		169,229		(502,760)
Effect of changes in equity markets	(1,314,461)		127,157		(1,187,304)
Effect of assumption update	330,769		(54,067)		276,702
Issuances	11,403		9,025		20,428
Other adjustments(1)	(17,436)		(638,198)		(655,634)
Effect of changes in current period counterparty non-performance risk	0		(7,445)		(7,445)

Balance, end of period, before effect of changes in non-performance risk	5,357,001		(946,878)		4,410,123
Effect of cumulative changes in non-performance risk	(1,660,587)		0		(1,660,587)


Balance, end of period	$	3,696,414	$	(946,878)	$	2,749,536


	Six Months Ended June 30, 2022
	Variable Annuities		Less: Reinsured Market Risk Benefits		Total, Net of Reinsurance
	(in thousands)
Balance, beginning of period	$	8,884,362	$	(906,484)	$	7,977,878
Effect of cumulative changes in non-performance risk	287,605		0		287,605
Balance, beginning of period, before effect of changes in non-performance risk	9,171,967		(906,484)		8,265,483
Attributed fees collected	659,743		(77,427)		582,316
Claims paid	(16,431)		318		(16,113)
Interest accrual	26,589		(2,564)		24,025
Actual in force different from expected	44,344		(4,746)		39,598
Effect of changes in interest rates	(5,067,986)		527,662		(4,540,324)
Effect of changes in equity markets	3,238,166		(339,149)		2,899,017
Effect of assumption update	(160,596)		23,170		(137,426)

Effect of changes in current period counterparty non-performance risk	0		223,753		223,753
Balance, end of period, before effect of changes in non-performance risk	7,895,796		(555,467)		7,340,329
Effect of cumulative changes in non-performance risk	(2,077,191)		0		(2,077,191)


Balance, end of period	$	5,818,605	$	(555,467)	$	5,263,138

In 2023, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed market risk benefits, primarily due to updates to policyholder behavior assumptions on certain variable annuities.

In 2022, the Company recognized a favorable impact to net income attributable to the actuarial assumption update for direct and assumed market risk benefits, primarily due to updates to mortality and policyholder behavior assumptions on certain variable annuities.

The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods.

The Company also issues indexed variable annuity contracts for which the return is tied to the return of specific indices where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals upon death. In certain of these indexed variable annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods.

For guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance.

For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior.