Variable Annuity and Insurance Guarantees

9 Months Ended

Sep. 30, 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)	September 30, 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	$	51,949	$	50,290	$	1,440	69	$	70,020	$	68,145	$	6	69
Five/six-year reset	6,652		3,986		277		69	8,309		5,612		6		68
One-year ratchet	4,612		4,306		1,019		72	6,177		5,858		13		71
Five-year ratchet	1,058		1,009		106		68	1,438		1,386		1		68
Other	964		950		284		75	1,302		1,286		38		74
Total — GMDB	$	65,235	$	60,541	$	3,126	69	$	87,246	$	82,287	$	64	69

GGU death benefit	$	966	$	909	$	139	72	$	1,260	$	1,198	$	184	72

GMIB	$	130	$	117	$	14	72	$	184	$	170	$	4	71
GMWB:
GMWB	$	1,351	$	1,346	$	54	75	$	1,900	$	1,895	$	1	75
GMWB for life	37,871		37,865		3,090		70	52,387		52,334		187		69
Total — GMWB	$	39,222	$	39,211	$	3,144	70	$	54,287	$	54,229	$	188	69

GMAB	$	1,391	$	1,391	$	187	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:


	September 30, 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	$	6,496	69	$	6,564	68
Structured variable annuity GMDB	$	723	64	$	3	63

The net amount at risk for UL secondary guarantees and structured variable annuity GMDB 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	40		2		(235)		87		87
Paid claims	(15)		—		—		—		(31)
Balance at September 30, 2022	$	61	$	7	$	2,101	$	64	$	1,076

Balance at January 1, 2021	$	24	$	6	$	3,049	$	1	$	916
Incurred claims	12		1		(793)		(15)		106
Paid claims	(3)		(1)		—		—		(27)
Balance at September 30, 2021	$	33	$	6	$	2,256	$	(14)	$	995

(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:


	September 30, 2022		December 31, 2021
	(in millions)
Mutual funds:
Equity	$	38,594	$	49,183
Bond	21,012		24,998
Other	6,224		8,316
Total mutual funds	$	65,830	$	82,497