Variable Annuity and Insurance Guarantees

3 Months Ended

Mar. 31, 2022

Variable Annuity and Insurance Guarantees

Most of the variable annuity contracts issued by the Company contain one or more guaranteed minimum death benefit (“GMDB”) provisions or death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. The Company discontinued new sales of substantially all GMWB and GMAB at the end of 2021. The Company also previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions.

Certain UL policies provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.

The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:


Variable Annuity Guarantees by Benefit Type (1)	March 31, 2022							December 31, 2021
	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age	Total Contract Value		Contract Value in Separate Accounts		Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
GMDB:
Return of premium	$	64,309	$	62,458	$	122	69	$	70,020	$	68,145	$	6	69
Five/six-year reset	7,814		5,125		40		69	8,309		5,612		6		68
One-year ratchet	5,689		5,375		222		72	6,177		5,858		13		71
Five-year ratchet	1,318		1,266		13		68	1,438		1,386		1		68
Other	1,190		1,175		99		74	1,302		1,286		38		74
Total — GMDB	$	80,320	$	75,399	$	496	69	$	87,246	$	82,287	$	64	69

GGU death benefit	$	1,173	$	1,112	$	164	72	$	1,260	$	1,198	$	184	72

GMIB	$	166	$	153	$	5	72	$	184	$	170	$	4	71
GMWB:
GMWB	$	1,724	$	1,719	$	2	75	$	1,900	$	1,895	$	1	75
GMWB for life	47,847		47,815		575		69	52,387		52,334		187		69
Total — GMWB	$	49,571	$	49,534	$	577	69	$	54,287	$	54,229	$	188	69

GMAB	$	1,771	$	1,771	$	3	62	$	2,005	$	2,005	$	—	62

(1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table.

The net amount at risk for GMDB, GGU and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.

The following table provides information related to insurance guarantees for which the Company has established additional liabilities:


	March 31, 2022			December 31, 2021
	Net Amount at Risk		Weighted Average Attained Age	Net Amount at Risk		Weighted Average Attained Age
	(in millions, except age)
UL secondary guarantees	$	6,563	68	$	6,564	68

The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder account balance.

Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows:


	GMDB & GGU		GMIB		GMWB (1)		GMAB (1)		UL
	(in millions)
Balance at January 1, 2022	$	36	$	5	$	2,336	$	(23)	$	1,020
Incurred claims	—		—		(586)		6		31
Paid claims	(3)		—		—		—		(9)
Balance at March 31, 2022	$	33	$	5	$	1,750	$	(17)	$	1,042

Balance at January 1, 2021	$	24	$	6	$	3,049	$	1	$	916
Incurred claims	3		—		(1,570)		(23)		32
Paid claims	(1)		—		—		—		(8)
Balance at March 31, 2021	$	26	$	6	$	1,479	$	(22)	$	940

(1) The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims.

The liabilities for guaranteed benefits are supported by general account assets.

The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:


	March 31, 2022		December 31, 2021
	(in millions)
Mutual funds:
Equity	$	46,511	$	49,183
Bond	21,640		24,998
Other	7,438		8,316
Total mutual funds	$	75,589	$	82,497