INSURANCE LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2022

GMDB and GMIB Liabilities and Other Policyholder's Liabilities

Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature

Three and Nine Months Ended September 30, 2022 and 2021


	GMDB				GMIB
	Direct		Ceded		Direct		Ceded
	(in millions)








Balance, July 1, 2022	$	6	$	(6)	$	2	$	(1)
Paid guarantee benefits	—		—		—		—
Other changes in reserve	1		(1)		—		—
Balance, September 30, 2022	$	7	$	(7)	$	2	$	(1)

Balance, July 1, 2021	$	2	$	(2)	$	1	$	(1)
Paid guarantee benefits	—		—		—		—
Other changes in reserve	—		—		(1)		1
Balance, September 30, 2021	$	2	$	(2)	$	—	$	—


	GMDB				GMIB
	Direct		Ceded		Direct		Ceded
	(in millions)








Balance, January 1, 2022	$	5	$	(5)	$	1	$	(1)
Paid guarantee benefits	—		—		—		—
Other changes in reserve	2		(2)		1		—
Balance, September 30, 2022	$	7	$	(7)	$	2	$	(1)

Balance, January 1, 2021	$	4	$	(4)	$	1	$	(1)
Paid guarantee benefits	—		—		—		—
Other changes in reserve	(2)		2		(1)		1
Balance, September 30, 2021	$	2	$	(2)	$	—	$	—

Variable Annuity Contracts with GMDB and GMIB Features

Account Values and NAR for direct variable annuity contracts in force with GMDB and GMIB features as of September 30, 2022 are presented in the following tables by guarantee type. For contracts with the GMDB feature, the NAR in the event of death is the amount by which the GMDB feature exceeds the related Account Values. For contracts with the GMIB feature, the NAR in the event of annuitization is the amount by which the present value of the GMIB benefits exceed the related Account Values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB features may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive.

Direct Variable Annuity Contracts with GMDB and GMIB Features

as of September 30, 2022


	Guarantee Type
	Return of Premium			Ratchet			Roll-Up		Combo		Total
	(in millions, except age and interest rate)
Variable annuity contracts with GMDB features
Account Values invested in:
General Account	$	—		$	—		$	—	$	—	$	—
Separate Accounts	398			107			—		—		505
Total Account Values	$	398		$	107		$	—	$	—	$	505

NAR, gross	$	68		$	18		$	—	$	—	$	86
NAR, net of amounts reinsured	$	68		$	18		$	—	$	—	$	86

Average attained age of policyholders (in years)	60.5			62.4			—		—		60.9
Percentage of policyholders over age 70	12.3		%	16.0		%	—%		—%		13.1		%
Range of contractually specified interest rates	N/A			N/A			N/A		T+ 200bps		T+ 200bps

Variable annuity contracts with GMIB features
Account Values invested in:
General Account	$	—		$	—		$	—	$	—	$	—
Separate Accounts	—			—			497		—		497
Total Account Values	$	—		$	—		$	497	$	—	$	497

NAR, gross (1)	$	—		$	—		$	—	$	—	$	—
NAR, net of amounts reinsured (1)	$	—		$	—		$	—	$	—	$	—

Average attained age of policyholders (in years)	N/A			N/A			64.5		—		64.5
Weighted average years remaining until annuitization	N/A			N/A			9.7		—		9.7
Range of contractually specified interest rates	N/A			N/A			T+200bp		N/A		T+ 200bps

____________

(1) Amounts reported for NAR are $0 million as the values are less than $1 million at September 30, 2022.

Investment in Variable Insurance Trust Mutual Funds

The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB features. The investment performance of the assets impacts the related Account Values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive.

Investment in Variable Insurance Trust Mutual Funds



	September 30, 2022				December 31, 2021
Mutual Fund Type	GMDB		GMIB		GMDB		GMIB
	(in millions)
Equity	$	37	$	7	$	27	$	5
Fixed income	9		2		6		2
Balanced	456		488		238		263
Other	3		—		1		—
Total	$	505	$	497	$	272	$	270

No Lapse Guarantee Liabilities

The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the balance sheets, is summarized in the table below.


	2022						2021
	Direct Liability		Reinsurance Ceded		Net		Direct Liability		Reinsurance Ceded		Net
	(in millions)




















Balance, July 1,	$	7	$	(3)	$	4	$	6	$	(3)	$	3
Paid guarantee benefits	—		—		—		—		—		—
Other changes in reserve	—		—		—		—		—		—
Balance, September 30,	$	7	$	(3)	$	4	$	6	$	(3)	$	3

Balance, January 1,	$	6	$	(3)	$	3	$	6	$	(3)	$	3
Paid guarantee benefits	—		—		—		—		—		—
Other changes in reserve	1		—		1		—		—		—
Balance, September 30,	$	7	$	(3)	$	4	$	6	$	(3)	$	3