10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

———————————————

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to

Commission File No. 333-65423

————————————————

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

(Exact name of registrant as specified in its charter)

Arizona	86-0222062
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
525 Washington Boulevard, Jersey City, New Jersey	07310
(Address of principal executive offices)	(Zip Code)

(212) 554-1234

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an “emerging growth company”. See definition of “accelerated filer,” “large accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☒	Smaller reporting company	☐	Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 17, 2023, 2,500,000 shares of the registrant’s $1.00 par value Common Stock were outstanding, all of which were owned indirectly by Equitable Holdings, Inc.

REDUCED DISCLOSURE FORMAT

Equitable Financial Life Insurance Company of America meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format.

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Balance Sheets, June 30, 2023 (Unaudited) and December 31, 2022	4
	Statements of Income (Loss), Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)	5
	Statements of Comprehensive Income (Loss), Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)	6
	Statements of Equity, Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)	7
	Statements of Cash Flows, Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)	8
	Notes to Financial Statements:
	Note 1 - Organization	10
	Note 2 - Significant Accounting Policies	10
	Note 3 - Investments	16
	Note 4 - Derivatives	23
	Note 5 - DAC and Other Deferred Assets/Liabilities	26
	Note 6 - Fair Value Disclosures	27
	Note 7 - Liabilities for Future Policyholder Benefits	37
	Note 8 - Market Risk Benefits	41
	Note 9 - Policyholder Account Balances	43
	Note 10 - Income Taxes	48
	Note 11 - Related Party Transactions	48
	Note 12 - Equity	48
	Note 13 - Commitments and Contingent Liabilities	49
	Note 14 - Insurance Statutory Financial Information	50
	Note 15 - Unpaid Claim and Claim Expenses	50
	Note 16 - Reinsurance	51
	Note 17 - Revision of Previously Issued Financial Statements	53
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	56
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	63
Item 4.	Controls and Procedures	63
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	64
Item 1A.	Risk Factors	64
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 3.	Defaults Upon Senior Securities	64
Item 4.	Mine Safety Disclosures	64
Item 5.	Other Information	64
Item 6.	Exhibits	64
Signatures		71

1

NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION

Certain of the statements included or incorporated by reference in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estimates,” “projects,” “should,” “would,” “could,” “may,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Equitable Financial Life Insurance Company of America (“Equitable America”). “We,” “us” and “our” refer to Equitable America, unless the context refers only to Equitable America as a corporate entity. There can be no assurance that future developments affecting Equitable America will be those anticipated by management. Forward-looking statements include, without limitation, all matters that are not historical facts.

These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (i) conditions in the financial markets and economy, including the impact of plateauing or decreasing economic growth and geopolitical conflicts and related economic conditions, equity market declines and volatility, interest rate fluctuations, impacts on our goodwill and changes in liquidity and access to and cost of capital; (ii) operational factors, indebtedness, protection of confidential customer information or proprietary business information, operational failures by us or our service providers, potential strategic transactions, changes in accounting standards, and catastrophic events, such as the outbreak of pandemic diseases including COVID-19; (iii) credit, counterparties and investments, including counterparty default on derivative contracts, failure of financial institutions, defaults by third parties and affiliates and economic downturns, defaults and other events adversely affecting our investments; (iv) our reinsurance and hedging programs; (v) our products, structure and product distribution, including variable annuity guaranteed benefits features within certain of our products, variations in statutory capital requirements, financial strength and claims-paying ratings and key product distribution relationships; (vi) estimates, assumptions and valuations, including risk management policies and procedures, potential inadequacy of reserves and experience differing from pricing expectations or reserves, amortization of deferred acquisition costs and financial models; (vii) recruitment and retention of key employees at Equitable Financial and experienced and productive financial professionals; (viii) subjectivity of the determination of the amount of allowances and impairments taken on our investments; (ix) legal and regulatory risks, including federal and state legislation affecting financial institutions, insurance regulation and tax reform; and (x) general risks, including strong industry competition, information systems failing or being compromised and protecting our intellectual property.

Forward-looking statements should be read in conjunction with the other cautionary statements, risks, uncertainties and other factors identified in Equitable America’s Annual Report on Form 10-K for the year ended December 31, 2022, as amended or supplemented in our subsequently filed (i) Current Report on Form 8-K, dated May 17, 2023 (the “Recast 2022 Annual Report”), (ii) Quarterly Reports on Form 10-Q, including in the section entitled “Risk Factors,” and (iii) elsewhere in this Quarterly Report on Form 10-Q. You should read this Form 10-Q completely and with the understanding that actual future results may be materially different from expectations. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

Other risks, uncertainties and factors, including those discussed under “Risk Factors”, in our Annual Report on Form 10-K could cause our actual results to differ materially from those projected in any forward-looking statements we make. Readers should read carefully the factors described in “Risk Factors” in our Annual Report on Form 10-K to better understand the risks and uncertainties inherent in our business and underlying any forward-looking statements.

Throughout this Quarterly Report on Form 10-Q we use certain defined terms and abbreviations, which are summarized in the “Glossary” and “Acronyms” sections.

2

Part I FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

3

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Balance Sheets

June 30, 2023 (Unaudited) and December 31, 2022

	June 30, 2023		December 31, 2022
	(in millions, except share data)
ASSETS
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost of $6,180 and $2,606) (allowance for credit losses of $0 and $0 )	$	5,804	$	2,218
Mortgage loans on real estate (net of allowance for credit losses of $0 and $0)	17		17
Policy loans	260		244
Other equity investments	38		19
Other invested assets	117		47
Total investments	6,236		2,545
Cash and cash equivalents	1,080		294
Deferred policy acquisition costs	947		760
Amounts due from reinsurers (allowance for credit losses of $0 and $0)	1,005		1,051
Funds withheld receivable	10,615		—
Reinsurance deposit assets	12,782		—
Current and deferred income taxes	151		76
Purchased market risk benefits	10		13
Other assets	361		101
Assets for market risk benefits	26		12
Separate Accounts assets	4,508		3,374
Total Assets	$	37,721	$	8,226
LIABILITIES
Policyholders’ account balances	$	21,014	$	3,751
Liability for market risk benefits	7,363		15
Future policy benefits and other policyholders' liabilities	1,209		669
Amounts due to reinsurers	106		112
Other liabilities	2,124		73
Separate Accounts liabilities	4,508		3,374
Total Liabilities	$	36,324	$	7,994
Commitments and contingent liabilities (1)
EQUITY
Common stock, $1.00 par value; 2,500,000 shares authorized, issued and outstanding	$	3	$	3
Additional paid-in capital	1,882		831
Accumulated deficit	(143)		(220)
Accumulated other comprehensive income (loss)	(345)		(382)
Total Equity	1,397		232
Total Liabilities and Equity	$	37,721	$	8,226

_____________

(1)See Note 13 of the Notes to these Financial Statements for details of commitments and contingent liabilities.

Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

See Notes to Financial Statements (Unaudited).

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EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Statements of Income (Loss)

Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
REVENUES
Policy charges and fee income	$	411	$	56	$	472	$	112
Premiums	112		60		181		109
Net derivative gains (losses)	(700)		(3)		(694)		(11)
Net investment income (loss)	56		21		85		41
Investment gains (losses), net	—		(2)		(5)		(3)
Investment management and service fees	105		6		110		11
Other income	38		1		44		1
Total revenues	22		139		193		260
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits	335		82		414		156
Remeasurement of liability for future policy benefits	1		—		—		(1)
Change in market risk benefits and purchased market risk benefits	(862)		1		(862)		(4)
Interest credited to policyholders’ account balances	185		23		208		42
Compensation and benefits	15		9		28		20
Commissions	90		26		121		42
Amortization of deferred policy acquisition costs	16		10		28		20
Other operating costs and expenses	222		21		245		44
Total benefits and other deductions	2		172		182		319
Income (loss) from continuing operations, before income taxes	20		(33)		11		(59)
Income tax (expense) benefit	(6)		8		66		14
Net income (loss)	$	14	$	(25)	$	77	$	(45)

Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

See Notes to Financial Statements (Unaudited).

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EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Statements of Comprehensive Income (Loss)

Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$	14	$	(25)	$	77	$	(45)
Other comprehensive income (loss), net of income taxes:
Change in unrealized gains (losses), net of adjustments (1)	(51)		(153)		24		(324)
Change in market risk benefits - instrument-specific credit risk	7		3		12		8
Change in liability for future policy benefits - current discount rate	1		—		1		—
Other comprehensive income (loss), net of income taxes	(43)		(150)		37		(316)
Comprehensive income (loss)	$	(29)	$	(175)	$	114	$	(361)

_____________

(1)See Note 12 of the Notes to these Financial Statements for details of change in unrealized gains (losses), net of adjustments.

Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

See Notes to Financial Statements (Unaudited).

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EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Statements of Equity

For the Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)

	Three Months Ended June 30,
	Common Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Equity
	(in millions)
Balance, beginning of period	$	3	$	831	$	(157)	$	(302)	$	375
Contribution from parent	—		1,050		—		—		1,050
Net income (loss)	—		—		14		—		14
Other comprehensive income (loss)	—		—		—		(43)		(43)
Other	—		1		—		—		1
Balance, June 30, 2023	$	3	$	1,882	$	(143)	$	(345)	$	1,397

Balance, beginning of period	$	3	$	681	$	(154)	$	(68)	$	462
Dividend of AB Units to parent	—		—		—		—		—
Net income (loss)	—		—		(25)		—		(25)
Other comprehensive income (loss)	—		—		—		(150)		(150)
Other	—		1		—		—		1
Balance, June 30, 2022	$	3	$	682	$	(179)	$	(218)	$	288

	Six Months Ended June 30,
	Common Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Equity
	(in millions)
Balance, beginning of period	$	3	$	831	$	(220)	$	(382)	$	232
Contribution from parent	—		1,050		—		—		1,050
Cumulative effect of adoption of ASU 2016-13, CECL	—		—		—		—		—
Net income (loss)	—		—		77		—		77
Other comprehensive income (loss)	—		—		—		37		37
Other	—		1		—		—		1
Balance, June 30, 2023	$	3	$	1,882	$	(143)	$	(345)	$	1,397

Balance, beginning of period	$	3	$	680	$	(134)	$	98	$	647
Dividend of AB Units to parent	—				—		—		—
Net income (loss)	—		—		(45)		—		(45)
Other comprehensive income (loss)	—		—		—		(316)		(316)
Other	—		2		—		—		2
Balance, June 30, 2022	$	3	$	682	$	(179)	$	(218)	$	288

Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

See Notes to Financial Statements (Unaudited).

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EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Statements of Cash Flows

Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)

	Six Months Ended June 30,
	2023		2022
	(in millions)
Cash flows from operating activities:
Net income (loss)	$	77	$	(45)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Interest credited to policyholders’ account balances	208		42
Policy charges and fee income	(472)		(112)
Net derivative (gains) losses	694		11
Investment (gains) losses, net	5		3
Non-cash long-term incentive compensation expense	1		2
Amortization and depreciation	124		21
Remeasurement of liability for future policy benefits	—		(1)
Change in market risk benefits	(862)		(4)
Changes in:
Reinsurance recoverable	817		(12)
Funds withheld receivable	13		—
Capitalization of deferred policy acquisition costs	(215)		(52)
Future policy benefits	133		17
Current and deferred income taxes (1)	(66)		(14)
Other, net	431		105
Net cash provided by (used in) operating activities	$	888	$	(39)
Cash flows from investing activities:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	$	98	$	120
Short-term investments	(1)		(1)
Other	80		—
Payment for the purchase/origination of:
Fixed maturities, available-for-sale	(3,582)		(289)
Other	(99)		(1)
Cash settlements related to derivative instruments, net	(208)		(97)
Other, net	(16)		(8)
Net cash provided by (used in) investing activities	$	(3,728)	$	(276)
Cash flows from financing activities:
Policyholders’ account balances:
Deposits	$	3,453	$	357
Withdrawals	(1,064)		(44)
Transfer (to) from Separate Accounts	26		(93)
Payments of market risk benefits	(181)		—
Change in collateralized pledged liabilities	342		(3)
Cash contribution from parent company	1,050		—
Other, net	—		4
Net cash provided by (used in) financing activities	$	3,626	$	221
Change in cash and cash equivalents	786		(94)
Cash and cash equivalents, beginning of period	294		127
Cash and cash equivalents, end of period	$	1,080	$	33

_______________

(1)    The six months ended June 30, 2023 includes a release of $69 million deferred tax valuation allowance. See Note 10 of the Notes to these Financial Statements.

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EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Statements of Cash Flows

Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)

Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

See Notes to Financial Statements (Unaudited).

9

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited)

1)    ORGANIZATION

Equitable Financial Life Insurance Company of America’s (“Equitable America” or “the Company”) primary business is providing variable annuity, life insurance and employee benefit products to both individuals and businesses. The Company is an indirect, wholly-owned subsidiary of Equitable Holdings, Inc. (“Holdings”). Equitable America is a stock life insurance company organized under the laws of Arizona.

Internal Reinsurance Transaction

On May 17, 2023, Equitable America entered into a reinsurance agreement (the “Reinsurance Treaty”) with its affiliate, Equitable Financial Life Insurance Company, a New York domiciled life insurance company (“Equitable Financial”), effective April 1, 2023. Pursuant to the Reinsurance Treaty, virtually all of Equitable Financial’s net retained general account liabilities, including all of its net retained liabilities relating to the living benefit and death riders related to (i) its variable annuity contracts issued outside the State of New York prior to October 1, 2022 (and with respect to its EQUI-VEST variable annuity contracts, issued outside the State of New York prior to February 1, 2023) and (ii) certain universal life insurance policies issued outside the State of New York prior to October 1, 2022 were reinsured to Equitable America on a coinsurance funds withheld basis. In addition, all of the separate account liabilities relating to such variable annuity contracts were reinsured to Equitable America on a modified coinsurance basis. Equitable America’s obligations under the Reinsurance Treaty are secured through Equitable Financial’s retention of certain assets supporting the reinsured liabilities. The New York Department of Financial Services (the “NYDFS”) and the Arizona Department of Insurance and Financial Institutions each approved the Reinsurance Treaty.

As a condition to approving the Reinsurance Treaty, the NYDFS has required that Equitable Financial seeks to novate the reinsured contracts on a reasonable best effort basis either to Equitable America or another affiliate over the next three years. Novations of the reinsured contracts are subject to additional regulatory approvals, as well as certain policyholder approvals.

At the effective date of the transaction, April 1, 2023, the Company recorded a funds withheld receivable of $11.2 billion, reinsurance deposit assets of $12.9 billion, MRB of $8.2 billion, policyholders’ account balances of $13.9 billion (includes $32.4 billion of assumed policyholder account balances related to the non-insulated (“NI”) modco offset by $28.7 billion of NI modco receivable), future policy benefits and other policyholders' liabilities of $357 million, and cost of reinsurance liability of $1.7 billion. Additionally, $64.1 billion of Insulated Separate Account liabilities were assumed under a modified coinsurance portion of the agreement.

2)    SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited interim financial statements (the “financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”).

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s financial statements included in the Recast 2022 Annual Report. Certain prior period amounts were adjusted to reflect the adoption of ASU 2018-12: Financial Services - Insurance (Topic 944).

The terms “second quarter 2023” and “second quarter 2022” refer to the three months ended June 30, 2023 and 2022, respectively. The terms “first six months of 2023” and “first six months of 2022” refer to the six months ended June 30, 2023 and 2022, respectively.

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EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

Adoption of New Accounting Pronouncements

Description	Effect on the Financial Statement or Other Significant Matters
ASU 2018-12: Financial Services - Insurance (Topic 944)
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of Market Risk Benefits (“ MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement.	On January 1, 2023, the Company adopted the new accounting standard ASU 2018-12 using the modified retrospective approach, except for MRBs which will use the full retrospective approach. Refer to “Transition impact of ASU 2018-12, Financial Services- Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” section within this note for further details.

Transition impact of ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

The Company has not retrospectively adjusted its financial statements for the year ended December 31, 2020 to reflect the adoption of ASU 2018-12, consistent with the Division of Corporation Finance’s Financial Reporting Manual Section 11410.1.

The Company adopted ASU 2018-12 for liability for future policy benefits (“LFPB”), additional insurance liabilities, DAC and balances amortized on a basis consistent with DAC on a modified retrospective basis. ASU 2018-12 was adopted for MRBs on a full retrospective basis.

The majority of the transition impacts come from removal of DAC and URL adjustments balances recorded in accumulated other comprehensive income (AOCI) impact, resulting in a favorable AOCI. There is limited impact from LFPB and MRB as of transition.

The following table presents the effect of transition adjustment to total equity resulting from the adoption of ASU 2018-12 as of January 1, 2021:

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EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Retained Earnings		Accumulated Other Comprehensive Income		Total
	(in millions)
Liability for future policy benefits (1)	$	—	$	—	$	—
Market risk benefits	2		(1)		1
DAC	—		110		110
Unearned revenue liability and sales inducement assets (1)	—		(37)		(37)
Total transition adjustment before taxes	2		72		74
Income taxes	(1)		(15)		(16)
Total transition adjustment (net of taxes)	$	1	$	57	$	58

_____________

(1)Unearned revenue liability included within liability for future policy benefits financial statement line item in the balance sheet. Sales inducement assets are included in other assets in the balance sheets.

The following table summarizes the balance of and changes in DAC on January 1, 2021 resulting from the adoption of ASU 2018-12:

	Variable Universal Life		Indexed Universal Life		Total
	(in millions)
Balance, December 31, 2020	$	230	$	247	$	477
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income	70		40		110
Balance, January 1, 2021	$	300	$	287	$	587

The following table summarizes the balance of and changes in sales inducement assets and unearned revenue liability on January 1, 2021 resulting from the adoption of ASU 2018-12:

	Variable Universal Life		Indexed Universal Life		Total
	(in millions)
Balance, December 31, 2020	$	55	$	14	$	69
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income	28		9		37
Balance, January 1, 2021	$	83	$	23	$	106

DAC

Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including employee fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred.

Contracts are measured on a grouped basis utilizing cohorts consistent with those used in the calculation of future policy benefit reserves. DAC is amortized on a constant level basis for the grouped contracts over the expected term of the contract. For life insurance products, DAC is amortized in proportion to the face amount in force. For annuity products DAC is amortized in proportion to policy counts. The constant level basis used for amortization determines the current period amortization considering both the current period’s actual experience and future projections. The amortization pattern is revised quarterly on a prospective basis. Amortization of DAC is included in Amortization of DAC, part of total benefits and other deductions.

For some products, policyholders can elect to modify product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. These transactions are known as internal replacements. If such modification substantially

12

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

changes the contract, the associated DAC is written off immediately through income and any new acquisition costs associated with the replacement contract are deferred.

Funds withheld receivable

Funds withheld receivable represents a receivable for amounts contractually withheld by ceding companies in accordance with funds withheld coinsurance (“funds withheld”) reinsurance agreements in which we are the reinsurer. The funds withheld receivable under reinsurance treaties includes the funds withheld embedded derivative receivable.

The reinsurance agreement between the Company and Equitable Financial written on a funds withheld and modified coinsurance basis contains embedded derivatives. We determined that the obligation to receive the total return on the assets funds withheld receivable, represents a total return swap with a floating rate leg. The fair value of embedded derivatives on funds withheld and modified coinsurance agreements is computed as the unrealized gain (loss) on the underlying assets and is included within funds withheld receivable on the balance sheets for assumed agreement. The change in the fair value of the embedded derivatives is recorded in net derivatives gains (losses) on the statements of income. Assumed earnings from the funds withheld receivable and changes in the fair value of embedded derivatives are reported in operating activities on the statements of cash flows. Contributions to and withdrawals from funds withheld receivable are reported in operating activities on the statements of cash flows.

For business assumed on a funds withheld or modified coinsurance basis, a funds withheld segregated portfolio, comprised of invested assets and other assets is maintained by the ceding entity, which is sufficient to support the current balance of statutory reserves. The fair value of the embedded derivative included in funds withheld is recorded as a funds withheld asset and any excess or shortfall in relation to statutory reserves is settled quarterly.

Reinsurance

For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims.

For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as premiums ceded (assumed); and amounts due from reinsurers (amounts due to reinsurers) are established.

Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. As a result, we have netted the receivable and payable related to modified coinsurance agreements. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance.

Premiums, policy charges and fee income, and policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues.

For reinsurance contracts, reinsurance recoverable balances are generally calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities.

Ceded reinsurance transactions are recognized and measured in a manner consistent with underlying reinsured contracts, including using consistent assumptions. Assumed and ceded reinsurance contract rights and obligations are accounted for on a basis consistent with our direct contract. The reinsurance cost or benefit for traditional life non-participating and limited-payment contracts is recognized in proportion to the gross premiums of the underlying direct cohorts. The locked-in single A discount rate used to calculate the reinsurance cost or benefit is established at inception of the reinsurance contract. Changes to the single A discount rate are reflected in comprehensive income at each reporting date.

13

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within reinsurance deposit assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Recognition of losses are recorded in other operating expenses. Recognition of gains are recorded in other income.

Policyholders’ Account Balances

Policyholders’ account balances relate to contracts or contract features where the Company has no significant insurance risk. This liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date.

The reinsurance agreement between the Company and Equitable Financial written on a modified coinsurance basis contains embedded derivatives. We determined that the obligation to pay the total return on the assets the modified coinsurance,represents a total return swap with a floating rate leg. The fair value of embedded derivatives on the modified coinsurance agreement is computed as the unrealized gain (loss) and current period income on the underlying assets included within Policyholder account balances on the balance sheets for the assumed agreement. The change in the fair value of the embedded derivatives is recorded in net derivative gains (losses) on the statements of income. Assumed earnings from the modified coinsurance and changes in the fair value of embedded derivatives are reported in operating activities on the statements of cash flows. Contributions to and withdrawals from the Policyholder account balances are reported in financing activities on the statements of cash flows.

Future Policy Benefits and Other Policyholders’ Liabilities

For traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 3.5% to 4.5% of life insurance liabilities and a range of 4.5% to 5.5% for retained annuity liabilities.

For traditional life insurance policies and limited pay contracts, contracts are grouped into cohorts by contract type and issue year. The Company quarterly updates its estimate of cash flows using actual experience and current future cash flow assumptions, which is reflected in an updated net premium ratio used to calculate the liability. The ratio of actual and future expected claims to actual and future expected premiums determines the net premium ratio. The policy administration expense assumption is not updated after policy issuance. If actual expenses differ from the original expense assumptions, the differences are recognized in the period identified. The revised net premium ratio is used to determine the updated liability for future policy benefits as of the beginning of the reporting period, discounted at the original contract issuance rate. Changes in the liability due to current discount rates differing from original rates are included in other comprehensive income within the statement of comprehensive income.

For non-participating traditional life insurance policies (Term) and limited pay contracts (Payout, Pension), the discount rate assumption used is corporate A rated forward curve. We use a forward curve based upon a Bloomberg index. The liability is remeasured each quarter with the remeasurement change reported in other comprehensive income. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., single A) at contract inception for contracts issued after January 1, 2021. The Company developed an LDTI discount rate methodology used to calculate the LFPB for its traditional insurance liabilities and constructed a discount rate curve that references upper-medium grade (low credit risk) fixed-income instrument yields (i.e. Single-A rated Corporate bond yields) which are meant to reflect the duration characteristics of the corresponding insurance liabilities. The methodology uses observable market data, where available, and uses various estimation techniques in line with fair value guidance (such as interpolation and extrapolation) where data is limited. Discount rates are updated quarterly.

For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”). DPL will be amortized in relation to the expected future benefit payments. As the calculation of the DPL is based on discounted cash flows, interest accrues on the unamortized DPL balance using the discount rate determined at contract issuance. The DPL is updated at the same time as the estimates for cash flows for the liability for future policy benefits. Any difference between the recalculated and beginning of period DPL is

14

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

recognized in remeasurement gain or loss in the statement of income (loss), Remeasurement of Liability for Future Policy Benefits, part of total benefits and other deductions. On the balance sheet the DPL is recorded in the liability for future policy benefits.

Additional liabilities for contract or contract feature that provide for additional benefits in addition to the account balance but are not market risk benefits or embedded derivatives (“additional insurance liabilities”) are established by estimating the expected value of death or other insurance benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. These reserves are recorded within future policy benefits and other policyholders’ liabilities. The determination of this estimated future policy benefits liability is based on models that involve numerous assumptions and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, and mortality experience. There can be no assurance that actual experience will be consistent with management’s estimates. Assumptions are reviewed annually and updated with the remeasurement gain or loss reflected in total benefit expense.

The Company recognizes an adjustment in other comprehensive income for the additional insurance liabilities for unrealized gains and losses not included when calculating the present value of expected assessments for the benefit ratios.

The Company conducts annual premium deficiency testing except for liability for future policy benefits for non-participating traditional and limited payment contracts. The Company reviews assumptions and determines whether the sum of existing liabilities and the present value of future gross premiums is sufficient to cover the present value of future benefits to be paid and settlement costs. Anticipated investment income is considered when performing premium deficiency for long duration contracts. The anticipated investment income is projected based on current investment portfolio returns grading to long term reinvestment rates over the projection periods, based on anticipated gross reinvestment spreads, defaults and investment expenses. Premium deficiency reserves are recorded in certain instances where the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. This pattern of profits followed by losses is exhibited in our VISL business and is generated by the cost structure of the product or secondary guarantees in the contract. 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. We accrue for these PFBL using a dynamic approach that changes over time as the projection of future losses change.

Liabilities for unpaid claims and claim adjustment expenses are established for the Company’s employee benefits products which include the following Group products: long-term and short-term disability, life insurance, vision, dental, critical Illness, and accident. Unpaid claim and claim adjustment expenses consist of (i) claim reserves for known claims that are unpaid as of the balance sheet date; (ii) Incurred But Not Reported reserves for claims where the insured event occurred but has not yet been reported to the Company or the insured has not yet satisfied elimination period to be eligible for the benefits; and (iii) claim adjustment expense reserves for settling the claim run-out. The Company determines Incurred But Not Reported reserves and reviews the claim reserves for the long-term disability claims provided by a reinsurer managing the claims on the Company’s behalf. The claim adjustment expense reserves are set based on the Company’s anticipated cost associated with claim administration expenses on the run-out of business.

For long-term disability (“LTD”) the claim reserves for the reported claims are calculated as the present value of the net monthly LTD benefits (Social Security and other offsets may be estimated if unknown) and the best estimate probabilities of the claimant remaining disabled for a given benefit payment which are based on a termination rates table adjusted for experience. Should the offsets be estimated, they are estimated using the claimant’s salary, duration of disability and the probability of the offset award.

The disability termination rates vary based on the insured’s age at disability, gender, elimination period, the duration of disability, social security status and the number of months remaining in the benefit period. The rates account for the probabilities of both recovery and death. The reserves vary with plan provisions such as monthly benefit, offsets, own occupation period, benefit duration, cost of living adjustment (“COLA”), and minimum and maximum benefits. The discount rate assumptions for these liabilities are set annually and are based on projected investment returns for the asset portfolios. The interest rate is locked in for each claimant based on the year of disability.

15

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

For long-term disability, critical illness, and group accident the incurred but not reported reserves are determined using the expected loss ratio method, where the expected loss ratio is applied to the premiums to determine ultimate liabilities. For dental and vision, the incurred but not reported reserves are determined using completion factors, where these factors complete paid-to-date claims to the ultimate liability based on past experience. For short-term disability and group life the incurred but not reported reserves are determined using a combination of expected loss ratio and completion factor methods.

Market Risk Benefits

Market risk benefits (“MRBs”) are contracts or contract features that provide protection to the contract holder from other than nominal capital market risk and expose the Company to other than nominal capital market risk. Market risk benefits include contract features that provide minimum guarantees to policyholders and include GMIB, GMDB, and ROP DB benefits. MRBs are measured at fair value on a seriatim basis using an ascribed fee approach based upon policyholder behavior projections and risk neutral economic scenarios adjusted based on the facts and circumstances of the Company’s product features. The MRB Asset and MRB Liability will be equal to the average present value of benefits and risk margins less the average present value of ascribed fees. Ascribed fees will consist of the fee needed, under a stochastically generated set of risk-neutral scenarios, so that the mean present value of claims, including any risk charge, is equal to the mean present value of the projected attributed fees which will be capped at average present value of total policyholder contractual fees. The attributed fee percentage is considered a fixed term of the MRB feature and is held static over the life of the contract. Changes in fair value are recognized as a remeasurement gain/loss in the Change in market risk benefits and purchased market risk benefits, part of total benefits and other deductions except for the portion of the change in the fair value due to change in the Company’s own credit risk, which is recognized in other than comprehensive income. Additionally, when an annuitization occurs (for annuitization benefits) or upon extinguishment of the account balance (for withdrawal benefits) the balance related to the MRB will be derecognized and the amount deducted (after derecognition of any related amount included in accumulated other comprehensive income) shall be used in the calculation of the liability for future policy benefits for the payout annuity. Upon derecognition, any related balance will be removed from AOCI.

The Company has issued and continues to offer certain variable annuity products with GMDB and/or contain a GMIB (collectively, the “GMxB features”) which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a GMIB base.

Features in ceded reinsurance contracts that meet the definition of MRBs are accounted for at fair value. The fees used to determine the fair value of the reinsured market risk benefit are those defined in the reinsurance contract. The expected periodic future premiums would represent cash outflows and the expected future benefits would represent cash inflows in the fair value calculation. On the ceded side, the Purchased MRB will be measured considering the counterparty credit risk of the reinsurer, while the direct contract liabilities will be measured considering the instrument-specific credit risk of the insurer. As a result of the difference in the treatment of the counterparty credit risk, the fair value of the direct and ceded contracts may be different even if the contractual fees and benefits are the same. Changes in instrument-specific credit risk of the Company is included in the fair value of its market risk benefit, whether in an asset or liability position, and whether related to an issued or purchased MRB, is recognized in OCI. The counterparty credit risk of the reinsurer is recorded in the statements of income (loss).

Revision of Previously Issued Financial Statements

During the quarter ended September 30, 2022, the Company identified an error in its previously issued financial statements specifically related to the amortization of the cost of reinsurance asset. The impact of this error to prior periods financial statements were not considered to be material. The impact of the errors to prior periods financial statements was not considered to be material. See Note 17 to the Notes to these Financial Statements for details of the revision.

Out of Period Adjustment

During the three months ended June 30, 2023, the Company recorded out of period adjustment resulting in a decrease of $5 million to Income (loss) from continuing operations, before income taxes. The adjustments relate to an understatement of policyholders’ benefits expenses and an understatement of other liabilities in the period ended and as of December 31, 2021, respectively. The error was not material to any prior period.

3)    INVESTMENTS

16

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

Fixed Maturities AFS

The components of fair value and amortized cost for fixed maturities classified as AFS on the balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of June 30, 2023 and December 31, 2022 was $50 million and $23 million, respectively. There was no accrued interest written off for AFS fixed maturities for the three and six months ended June 30, 2023 and 2022.

The following tables provide information relating to the Company’s fixed maturities classified as AFS:

AFS Fixed Maturities by Classification

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
June 30, 2023:
Fixed Maturities:
Corporate (1)	$	4,421	$	—	$	5	$	345	$	4,081
U.S. Treasury, government and agency	15		—		—		1		14
States and political subdivisions	51		—		—		8		43
Foreign governments	30		—		—		—		30
Residential mortgage-backed	416		—		—		5		411
Asset-backed (2)	1,082		—		—		6		1,076
Commercial mortgage-backed	165		—		—		16		149
Total at June 30, 2023	$	6,180	$	—	$	5	$	381	$	5,804
December 31, 2022:
Fixed Maturities:
Corporate (1)	$	2,417	$	—	$	—	$	359	$	2,058
U.S. Treasury, government and agency	14		—		—		—		14
States and political subdivisions	43		—		—		9		34
Residential mortgage-backed	8		—		—		2		6
Asset-backed (2)	43		—		—		2		41
Commercial mortgage-backed	81		—		—		16		65
Total at December 31, 2022	$	2,606	$	—	$	—	$	388	$	2,218

______________

(1)Corporate fixed maturities include both public and private issues.

(2)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities. and other asset types.

17

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

The contractual maturities of AFS fixed maturities as of June 30, 2023 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Contractual Maturities of AFS Fixed Maturities

	Amortized Cost (Less Allowance for Credit Losses)		Fair Value
	(in millions)
June 30, 2023:
Contractual maturities:
Due in one year or less	$	127	$	126
Due in years two through five	888		860
Due in years six through ten	2,370		2,256
Due after ten years	1,132		926
Subtotal	4,517		4,168
Residential mortgage-backed	416		411
Asset-backed	1,082		1,076
Commercial mortgage-backed	165		149
Total at June 30, 2023	$	6,180	$	5,804

The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities:

Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Proceeds from sales	$	—	$	39	$	50	$	62
Gross gains on sales	$	—	$	—	$	—	$	—
Gross losses on sales	$	—	$	3	$	(5)	$	4
Net (increase) decrease in Allowance for Credit and Intent to Sell losses	$	—	$	—	$	—	$	—

The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts:

AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Balance, beginning of period	$	—	$	2	$	—	$	2
Previously recognized impairments on securities that matured, paid, prepaid or sold	—		(2)		—		(2)
Recognized impairments on securities impaired to fair value this period (1)	—		—		—		—
Credit losses recognized this period on securities for which credit losses were not previously recognized	—		—		—
Additional credit losses this period on securities previously impaired	—		—		—		—
Increases due to passage of time on previously recorded credit losses	—		—		—		—

18

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)	—		—		—		—
Balance, end of period	$	—	$	—	$	—	$	—

______________

(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI.

Net Unrealized Gains (Losses) on AFS Fixed Maturities

	Three Months Ended June 30, 2023
	Net Unrealized Gains (Losses) on Investments		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, beginning of period	$	(312)	$	6	$	145	$	(161)
Net investment gains (losses) arising during the period	(64)		—		—		(64)
Reclassification adjustment:							—
Included in Net income (loss)	—		—		—		—
Excluded from Net income (loss)	—		—		—		—
Impact of net unrealized investment gains (losses)	—		1		14		15
Net unrealized investment gains (losses) excluding credit losses	(376)		7		159		(210)
Net unrealized investment gains (losses) with credit losses	—		—		—		—
Balance, end of period	$	(376)	$	7	$	159	$	(210)
	Three Months Ended June 30, 2022
	Net Unrealized Gains (Losses) on Investments		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, beginning of period	$	(93)	$	2	$	19	$	(72)
Net investment gains (losses) arising during the period	(202)		—		—		(202)
Reclassification adjustment:							—
Included in Net income (loss)	2		—		—		2
Excluded from Net income (loss)	—		—		—		—
Impact of net unrealized investment gains (losses)	—		4		41		45
Net unrealized investment gains (losses) excluding credit losses	(293)		6		60		(227)
Net unrealized investment gains (losses) with credit losses (1)	—		—		—		—
Balance, end of period	$	(293)	$	6	$	60	$	(227)

Six Months Ended June 30, 2023
Net Unrealized Gains (Losses) on Investments	Policyholders’ Liabilities	Deferred Income Tax Asset (Liability)	AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)

19

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	(in millions)
Balance, beginning of period	$	(388)	$	8	$	161	$	(219)
Net investment gains (losses) arising during the period	7		—		—		7
Reclassification adjustment:
Included in net income (loss)	5		—		—		5
Other (1)	—		—		—		—
Impact of net unrealized investment gains (losses)	—		(1)		(2)		(3)
Net unrealized investment gains (losses) excluding credit losses	(376)		7		159		(210)
Net unrealized investment gains (losses) with credit losses	—		—		—		—
Balance, end of period	$	(376)	$	7	$	159	$	(210)
	Six Months Ended June 30, 2022
	Net Unrealized Gains (Losses) on Investments		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, beginning of period	$	128	$	(3)	$	(26)	$	99
Net investment gains (losses) arising during the period	(424)		—		—		(424)
Reclassification adjustment:
Included in net income (loss)	3		—		—		3
Other	—		—		—		—
Impact of net unrealized investment gains (losses)	—		9		86		95
Net unrealized investment gains (losses) excluding credit losses	(293)		6		60		(227)
Net unrealized investment gains (losses) with credit losses	—		—		—		—
Balance, end of period	$	(293)	$	6	$	60	$	(227)

The following tables disclose the fair values and gross unrealized losses of the 1,172 issues as of June 30, 2023 and the 845 issues as of December 31, 2022 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated:

AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
June 30, 2023:
Fixed Maturities:
Corporate	$	1,928	$	38	$	1,555	$	307	$	3,483	$	345
U.S. Treasury, government and agency	5		—		9		1		14		1
States and political subdivisions	6		1		27		7		33		8
Residential mortgage-backed	331		2		6		3		337		5
Asset-backed	680		5		31		1		711		6
Commercial mortgage-backed	85		1		60		15		145		16
Total at June 30, 2023	$	3,035	$	47	$	1,688	$	334	$	4,723	$	381

20

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
December 31, 2022:
Fixed Maturities:
Corporate	$	1,446	$	159	$	590	$	200	$	2,036	$	359
States and political subdivisions	19		4		13		5		32		9
Residential mortgage-backed	2		—		4		2		6		2
Asset-backed	35		1		6		1		41		2
Commercial mortgage-backed	5		1		60		15		65		16
Total at December 31, 2022	$	1,507	$	165	$	673	$	223	$	2,180	$	388

The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 1.3% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of June 30, 2023 and December 31, 2022 were $54 million and $24 million, respectively, representing 3.9% and 10.3% of the equity of the Company.

Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of June 30, 2023 and December 31, 2022, respectively, approximately $48 million and $4 million, or 0.8% and 0.2%, of the $6.2 billion and $2.6 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had no gross unrealized losses as of June 30, 2023 and December 31, 2022.

As of June 30, 2023 and December 31, 2022, respectively, the $334 million and $223 million of gross unrealized losses of twelve months or more were concentrated in corporate securities. In accordance with the policy described in Note 2 of the Notes to these Financial Statements, the Company concluded that an allowance for credit losses for these securities was not warranted at either June 30, 2023 or December 31, 2022. As of June 30, 2023 and December 31, 2022, the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis.

Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of June 30, 2023, the Company determined that the unrealized loss was primarily due to increases in interest rates and credit spreads.

Mortgage Loans on Real Estate

The Company held two commercial mortgage loans with a carrying value of $17 million and $17 million at June 30, 2023 and December 31, 2022. The loans were issued prior to 2017 for apartment complex properties located in the Mid-Atlantic region. The loans were current as of June 30, 2023 and December 31, 2022 with LTV ratios between 0%-50% and DSC ratios of 2.0x or greater.

Accrued interest receivable as of June 30, 2023 and December 31, 2022 was $0 million and no accrued interest was written off for the three and six months ended June 30, 2023 and 2022. The allowance for credit losses was $0 million as of June 30, 2023 and 2022, with a change of $0 million for the periods ended.

As of June 30, 2023 and 2022, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses.

Equity Securities

The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and six months ended June 30, 2023 and 2022.

21

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

Unrealized and Realized Gains (Losses) from Equity Securities

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	—	$	(1)	$	(1)	$	(3)
Net investment gains (losses) recognized on securities sold during the period	—		—		—		—
Unrealized and realized gains (losses) on equity securities	$	—	$	(1)	$	(1)	$	(3)

Trading Securities

As of June 30, 2023 and December 31, 2022, respectively, the fair value of the Company’s trading securities was $0 million and $1 million. As of June 30, 2023 and December 31, 2022, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $1 million and $1 million.

The table below shows a breakdown of net investment income (loss) from trading securities during the three and six months ended June 30, 2023 and 2022.

Net Investment Income (Loss) from Trading Securities

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	2	$	—	$	—	$	—
Net investment gains (losses) recognized on securities sold during the period	—		—		—		—
Unrealized and realized gains (losses) on trading securities	2		—		—		—
Interest and dividend income from trading securities	—		—		—		—
Net investment income (loss) from trading securities	$	2	$	—	$	—	$	—

Net Investment Income

The following tables provide the components of net investment income by investment type:

	Three Months Ended June 30,					Six Months Ended June 30,
	2023		2022			2023		2022
	(in millions)
Fixed maturities	$	48		$	22	$	77	$	43
Mortgage loans on real estate	—			—		—		—
Policy loans	1			1		2		2
Other equity investments	—			(2)		—		(3)
Trading securities	2			—		—		—
Other investment income	7			—		9		—
Gross investment income (loss)	58			21		88		42
Investment expenses	(2)			—		(3)		(1)
Net investment income (loss)	$	56		$	21	$	85	$	41

Investment Gains (Losses), Net

Investment gains (losses), net, including changes in the valuation allowances and credit losses are as follows:

22

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Fixed maturities	$	—	$	(2)	$	(5)	$	(3)
Mortgage loans on real estate	—		—		—		—
Other equity investments (1)	—		—		—		—
Investment gains (losses), net	$	—	$	(2)	$	(5)	$	(3)

_____________

(1)    Investment gains (losses), net of Other equity investments includes Real Estate Held for production.

4)    DERIVATIVES

The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by applicable states’ insurance law. The Company does not designate any derivatives as hedge accounting. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts can be used in these hedging programs, including exchange traded equity and interest rate futures contracts as well as equity options. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets.

Derivatives Utilized to Hedge Exposure to Variable Annuities with Guarantee Features

The Company has issued and continues to offer variable annuity products with GMxB features which are accounted for as market risk benefits. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with products that have a GMxB feature and are accounted for as market risk benefits is that under-performance of the financial markets could result in the GMxB features benefits being higher than what accumulated policyholders’ account balances would support.

For GMxB features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual experience versus expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB features that result from financial markets movements.

Derivatives Utilized to Hedge Crediting Rate Exposure on SCS, SIO, MSO and IUL Products/Investment Options

The Company hedges crediting rates in the SCS, MSO in the variable life insurance products and IUL insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment.

In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers, thereby substantially reducing any exposure to market-related earnings volatility.

The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments:

The following table presents the gross notional amount and estimated fair value of the Company’s derivatives:

23

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

Derivative Instruments by Category

	June 30, 2023						December 31, 2022
			Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in millions)
Derivatives: (1)
Equity contracts:
Futures	$	1,324	$	—	$	—	$	394	$	—	$	—
Options	1,948		546		167		209		34		16
Interest rate contracts:
Futures	370		—		—		282		—		—
Other contracts:
Margin	—		81		—		—		29		—
Collateral	—		—		346		—		—		3
Total:	3,642		627		513		885		63		19
Embedded derivatives:
SCS, SIO, MSO and IUL indexed features (2)	—		—		7,347		—		—		87
Funds withheld receivable (3)	—		(136)		—		—		—		—
Modco receivable (2)	—		—		166		—		—		—
Total embedded derivatives	—		(136)		7,513		—		—		87
Total derivative instruments	$	3,642	$	491	$	8,026	$	885	$	63	$	106

______________

(1)Reported in other invested assets in the balance sheets.

(2)Reported in policyholders’ account balances in the balance sheets.

(3)Reported in funds withheld receivable in the balance sheets.

The following table presents the effects of derivative instruments on the statements of income and comprehensive income (loss):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	Net Derivatives Gains (Losses)
	(in millions)
Derivatives:
Equity contracts:
Futures	$	70	$	(66)	$	98	$	(74)
Options	105		(3)		111		(3)
Interest rate contracts:
Futures	(12)		(12)		(4)		(24)
Total:	163		(81)		205		(101)
Embedded Derivatives:
SCS, SIO, MSO and IUL indexed features	(2,194)		78		(2,230)		90
Funds withheld receivable	(599)		—		(599)		—
Modco receivable	1,930		—		1,930		—
Total Embedded Derivatives	(863)		78		(899)		90
Total Derivatives instruments (1)	$	(700)	$	(3)	$	(694)	(11)

24

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

________

(1)Reported in net derivative gains (losses) in the statements of income (loss).

Equity-Based and Treasury Futures Contracts Margin

All outstanding equity-based futures contracts as of June 30, 2023 and December 31, 2022 are exchange-traded and net settled daily in cash. As of June 30, 2023 and December 31, 2022, respectively, the Company had open exchange-traded futures positions on: (i) the S&P 500, Nasdaq, Russell 2000 and Emerging Market indices, having initial margin requirements of $67 million and $22 million and (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $14 million and $10 million.

Collateral Arrangements

The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its OTC derivative counterparties that requires both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities, U.S. government and government agency securities and investment grade corporate bonds. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. As of June 30, 2023 and December 31, 2022, respectively, the Company held $346 million and $3 million in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. The unrestricted cash collateral is reported in other invested assets. The Company posted collateral of $0 million and $0 million as of June 30, 2023 and December 31, 2022, respectively, in the normal operation of its collateral arrangements. The Company is exposed to losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreements, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. In addition, certain of the Company’s derivative agreements contain credit-risk related contingent features; if the credit rating of one of the parties to the derivative agreement is to fall below a certain level, the party with positive fair value could request termination at the then fair value or demand immediate full collateralization from the party whose credit rating fell and is in a net liability position.

As of June 30, 2023 and December 31, 2022, there were no net liability derivative positions with counterparties with credit risk-related contingent features whose credit rating has fallen. All derivatives have been appropriately collateralized by the Company or the counterparty in accordance with the terms of the derivative agreements.

The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of June 30, 2023 and December 31, 2022:

Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of June 30, 2023

25

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (1)		Net Amount
	(in millions)
Assets:
Derivative assets	$	627	$	513	$	114	$	—	$	114
Other financial assets	3		—		3		—		3
Other invested assets	$	630	$	513	$	117	$	—	$	117
Liabilities:
Derivative liabilities	$	513	$	513	$	—	$	—	$	—
Other financial liabilities	2,124		—		2,124		—		2,124
Other liabilities	$	2,637	$	513	$	2,124	$	—	$	2,124

______________

(1)Financial instruments sent (held).

As of December 31, 2022

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (1)		Net Amount
	(in millions)
Assets:
Derivative assets	$	63	$	18	$	45	$	—	$	45
Other financial assets	2		—		2		—		2
Other invested assets	$	65	$	18	$	47	$	—	$	47
Liabilities:
Derivative liabilities	$	19	$	18	$	1	$	—	$	1
Other financial liabilities	72		—		72		—		72
Other liabilities	$	91	$	18	$	73	$	—	$	73

______________

(1)Financial instruments sent (held).

5)    DAC AND OTHER DEFERRED ASSETS/LIABILITIES

Changes in the DAC asset for the six months ended June 30, 2023 and 2022 are as follows:

	Six Months Ended June 30, 2023
	VUL (1)		IUL (2)		GMxB Core		IE (3)		SCS		Total
	(in millions)
Balance, beginning of period	$	410	$	296	$	40	$	1	$	13	$	760
Capitalization	34		7		34		11		119		205
Amortization	(11)		(9)		(2)		—		(5)		(27)
Balance, end of period	$	433	$	294	$	72	$	12	$	127	$	938

______________

(1)    “VUL” defined as Variable Universal Life.

(2)    “IUL” defined as Indexed Universal Life.

(3)    “IE” defined as Investment Edge.

26

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Six Months Ended June 30, 2022
	VUL (1)		IUL (2)		GMxB Core		Total
	(in millions)
Balance, beginning of period	$	361	$	297	$	14	$	672
Capitalization	35		9		9		53
Amortization	(10)		(9)		(1)		(20)
Balance, end of period	$	386	$	297	$	22	$	705

______________

(1)    “VUL” defined as Variable Universal Life.

(2)    “IUL” defined as Indexed Universal Life.

Changes in the Unearned Revenue Liability for the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended June 30,
	2023				2022
	VUL		IUL		VUL		IUL
	(in millions)
Balance, beginning of period	$	159	$	157	$	118	$	94
Capitalization	27		33		23		36
Amortization	(5)		(5)		(4)		(4)
Balance, end of period	$	181	$	185	$	137	$	126

The following table presents a reconciliation of DAC to the balance sheet:

	June 30, 2023		December 31, 2022
	(in millions)
VUL	$	433	$	410
IUL	294		296
GMxB Core	72		40
Investment Edge	12		1
SCS	127		13
Other	9		—
Total	$	947	$	760

Annually, or as circumstances warrant, we will review the associated decrements assumptions. (i.e. mortality and lapse) based on our multi-year average of companies experience with actuarial judgements to reflect other observable industry trends. In addition to DAC, the Unearned Revenue Liability and Sales Inducement Asset (“SIA”) use similar techniques and quarterly update processes for balance amortization.

6)    FAIR VALUE DISCLOSURES

U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value:

Level 1    Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2    Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data.

27

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

Level 3    Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability.

The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument.

Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. As of June 30, 2023 and December 31, 2022, no assets or liabilities were required to be measured at fair value on a non-recurring basis.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

28

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

Fair Value Measurements as of June 30, 2023

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate (1)	$	—	$	4,020	$	61	$	4,081
U.S. Treasury, government and agency	—		14		—		14
States and political subdivisions	—		43		—		43
Foreign governments	—		30		—		30
Residential mortgage-backed	—		411		—		411
Asset-backed (2)	—		1,076		—		1,076
Commercial mortgage-backed	—		149		—		149
Total fixed maturities, AFS	—		5,743		61		5,804
Other equity investments	20		18		—		38
Other invested assets:
Options	—		379		—		379
Total other invested assets	—		379		—		379
Cash equivalents	1,028		—		—		1,028
Funds withheld receivable (3) (5)	—		—		(136)		(136)
Purchased market risk benefits	—		—		10		10
Assets for market risk benefits	—		—		26		26
Separate Accounts assets (4)	4,501		7		—		4,508
Total Assets	$	5,549	$	6,147	$	(39)	$	11,657
Liabilities:
Policyholders’ account balances:	—		—		—		—
SCS, MSO and IUL indexed features’ liability	—		7,347		—		7,347
Modco payable (5)	—		—		166		166
Liabilities for market risk benefits	—		—		7,363		7,363
Total Liabilities	$	—	$	7,347	$	7,529	$	14,876

______________

(1)Corporate fixed maturities includes both public and private issues.

(2)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(3)As discussed in Note 2 to these Financial Statements, the funds withheld receivable was created through a funds withheld and modified coinsurance agreement where the investments supporting the reinsurance agreement are withheld by and continue to reside on Equitable Financial’s consolidated balance sheet. This embedded derivative is valued as a total return swap with references to the fair value of the invested assets held by the Equitable Financial, which are primarily AFS securities.

(4)Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $1 million.

(5)The embedded derivative is partially reflected in funds withheld receivable and policyholders’ account balance. The portion within policyholders’ account balances relates to the non-insulated products assumed on a modified coinsurance basis and is reflected net of assumed liabilities on the balance sheet.

29

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

Fair Value Measurements as of December 31, 2022

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate (1)	$	—	$	2,040	$	18	$	2,058
U.S. Treasury, government and agency	—		14		—		14
States and political subdivisions	—		34		—		34
Residential mortgage-backed	—		6		—		6
Asset-backed (2)	—		41		—		41
Commercial mortgage-backed	—		65		—		65
Total fixed maturities, AFS	—		2,200		18		2,218
Other equity investments	—		19		—		19
Other invested assets:
Options	—		18		—		18
Total other invested assets	—		18		—		18
Cash equivalents	272		—		—		272
Funds withheld receivable	—		—		—		—
Purchased market risk benefits	—		—		13		13
Assets for market risk benefits	—		—		12		12
Separate Accounts assets (3)	3,367		7		—		3,374
Total Assets	$	3,639	$	2,244	$	43	$	5,926
Liabilities:
Policyholders’ account balances	—		—		—		—
SCS, SIO, MSO and IUL indexed features’ liability	—		87		—		87
Modco receivable	—		—		—		—
Liabilities for market risk benefits	—		—		15		15
Total Liabilities	$	—	$	87	$	15	$	102

______________

(1)Corporate fixed maturities includes both public and private issues.

(2)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(3)Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $1 million.

Public Fixed Maturities

The fair values of the Company’s public fixed maturities are generally based on prices obtained from independent valuation service providers and for which the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, the Company ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs.

Private Fixed Maturities

The fair values of the Company’s private fixed maturities are determined from prices obtained from independent valuation service providers. Prices not obtained from an independent valuation service provider are determined by using a discounted cash flow model or a market comparable company valuation technique. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other

30

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model or a market comparable company valuation technique may also incorporate unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made.

Freestanding Derivative Positions

The net fair value of the Company’s freestanding derivative positions as disclosed in Note 4 of the Notes to these Financial Statements are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including overnight index swap curves, and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable.

Funds withheld receivable

Reinsurance agreements written on a funds withheld or modified coinsurance basis contain embedded derivatives. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by Equitable Financial. Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the reinsurance agreements that are held on Equitable Financial’s consolidated balance sheet.

Level Classifications of the Company’s Financial Instruments

Financial Instruments Classified as Level 1

Investments classified as Level 1 primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less and are carried at cost as a proxy for fair value measurement due to their short-term nature.

Financial Instruments Classified as Level 2

Investments classified as Level 2 are measured at fair value on a recurring basis and primarily include U.S. government and agency securities and certain corporate debt securities, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity.

Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. The Company’s AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors.

Certain Company products, such as IUL and the MSO fund available in some life contracts offer investment options which permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options, which depending on the product and on the index selected can currently have one, three, five or six year terms, provide for participation in the performance of specified indices, ETF or commodity price movement up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g., holding these segments

31

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices, ETF or commodity prices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are accounted for as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers.

Financial Instruments Classified as Level 3

The Company’s investments classified as Level 3 primarily include corporate debt securities, such as private fixed maturities and asset-backed securities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification are fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data.

The Company has certain variable annuity contracts with GMDB, GMIB, GIB and GWBL and other features in-force that guarantee one of the following:

•Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals);

•Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals);

•Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages;

•Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include either a five year or an annual reset; or

•Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life.

The Company also issues certain benefits on its variable annuity products that are accounted for as market risk benefits carried at fair value and are also considered Level 3 for fair value leveling.

The GMIBNLG feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates applied to the contract’s benefit base if and when the contract account value is depleted and the NLG feature is activated. The optional GMIB feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates.

The GMWB feature allows the policyholder to withdraw at minimum, over the life of the contract, an amount based on the contract’s benefit base. The GWBL feature allows the policyholder to withdraw, each year for the life of the contract, a specified annual percentage of an amount based on the contract’s benefit base. The GMAB feature increases the contract account value at the end of a specified period to a GMAB base. The GIB feature provides a lifetime annuity based on predetermined annuity purchase rates if and when the contract account value is depleted.

This lifetime annuity is based on predetermined annuity purchase rates applied to a GIB base. The GMDB feature guarantees that the benefit paid upon death will not be less than a guaranteed benefit base. If the contract’s account value is less than the benefit base at the time a death claim is paid, the amount payable will be equal to the benefit base.

Purchased MRB assets, which are accounted for as market risk benefits carried at fair value are also considered Level 3 for fair value leveling. The Purchased MRB asset fair value reflects the present value of reinsurance premiums, net of recoveries, adjusted for risk margins and nonperformance risk over a range of market consistent economic scenarios while the MRB asset and liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to the MRB asset and liability over a range of market-consistent economic scenarios. 

The valuations of the Purchased MRB assets incorporate significant non-observable assumptions related to policyholder behavior, risk margins and projections of equity Separate Accounts funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its Purchased MRB asset after taking into account the effects of collateral arrangements. Incremental adjustment to the risk free curve for counterparty non-performance risk is made to the fair values of the Purchased MRB assets. Risk margins were applied to the non-capital markets inputs to the Purchased MRB valuations.

32

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

The Company also issues certain benefits on its variable annuity products that are accounted for as market risk benefits carried at fair value and are also considered Level 3. See Note 8 of the Notes to these Financial Statements for further description of our market risk benefits fair value.

The funds withheld embedded derivative receivable is determined based upon a total return swap technique referencing the fair value of the investments held under the reinsurance contract as collateral and requires certain unobservable inputs. The funds withheld embedded derivative are considered Level 3 in the fair value hierarchy.

Transfers of Financial Instruments Between Levels 2 and 3

During the six months ended June 30, 2023, there were $10 million AFS fixed maturities transferred out of Level 3 and into Level 2 and no AFS fixed maturities transferred out of Level 2 and into Level 3. These transfers in the aggregate represent approximately 0.7% of total equity as of June 30, 2023.

During the six months ended June 30, 2022, there were $5 million AFS fixed maturities transferred out of Level 3 and into Level 2 or AFS fixed maturities transferred out of Level 2 and into Level 3. These transfers in the aggregate represent approximately 1.7% of total equity as of June 30, 2022.

The tables below present reconciliations for Level 3 assets and liabilities and changes in unrealized gains (losses) for the three and six months ended June 30, 2023 and 2022, respectively. Not included below are the changes in balances related to market risk benefits and purchased market risk benefits level 3 assets and liabilities, which are included in Note 8 of the Notes to these Financial Statements.

Level 3 Instruments - Fair Value Measurements

	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
	Corporate		Funds Withheld Receivable		Modco Payable		Corporate		Funds Withheld Receivable		Modco Payable
	(in millions)
Balance, beginning of period	$	37	$	—	$	—	$	11	$	—	$	—
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income	—		—		—		—		—		—
Net derivative gains (losses) (1)	—		(136)		166		—		—		—
Total realized and unrealized gains (losses)	—		(136)		166		—		—		—
Other comprehensive income (loss)	—		—		—		—		—		—
Purchases	24		—		—		11		—		—
Sales	—		—		—		(1)		—		—
Transfers into Level 3 (1)	—		—		—		—		—		—
Transfers out of Level 3 (1)	—		—		—		(5)		—		—
Balance, end of period	$	61	$	(136)	$	166	$	16	$	—	$	—
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period	$	—	$	—	$	—	$	—	$	—	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period.	$	—	$	—	$	—	$	—	$	—	$	—

33

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
	Corporate		Funds Withheld Receivable		Modco Payable		Corporate		Funds Withheld Receivable		Modco Payable
	(in millions)
Balance, beginning of period	$	18	$	—	$	—	$	11	$	—	$	—
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income	—		—		—		—		—		—
Net derivative gains (losses) (1)	—		(136)		166		—		—		—
Total realized and unrealized gains (losses)	—		(136)		166		—		—		—
Other comprehensive income (loss)	—		—		—		(1)		—		—
Purchases	53		—		—		12		—		—
Sales	—		—		—		(1)		—		—
Transfers into Level 3 (1)	—		—		—		—		—		—
Transfers out of Level 3 (1)	(10)		—		—		(5)		—		—
Balance, end of period	$	61	$	(136)	$	166	$	16	$	—	$	—
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period	$	—	$	—	$	—	$	—	$	—	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period.	$	—	$	—	$	—	$	(1)	$	—	$	—

____

(1)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.

Quantitative and Qualitative Information about Level 3 Fair Value Measurements

The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of June 30, 2023 and December 31, 2022, respectively:

Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2023

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average
	(Dollars in millions)
Assets:(4)
Investments:
Fixed maturities, AFS:
Corporate	$	32	Matrix pricing  model	Spread over benchmark	20 bps - 320 bps	65 bps
Purchased MRB asset (1)	10		Discounted cash flow	Lapse rates Withdrawal rates Annuitization rates Non-performance risk (bps) Mortality: Ages 0-40 Ages 41-60 Ages 61-115	N/A	N/A

34

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average
	(Dollars in millions)
Liabilities:
Direct MRB (1) (2) (3)	$	7,337	Discounted cash flow	Non-performance risk (bps) Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115	55 bps - 192 bps 0.26% - 35.42% 0.00% - 10.93% 0.04% - 100.00% 0.01% - 0.17% 0.06% - 0.52% 0.32% - 40.00%	55 bps 3.81% 0.65% 3.13% 2.56% (same for all ages) (same for all ages)

(1)Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. GMIB utilization rates were developed as a function of the GMIB benefit base.

(2)MRB assets are shown net of MRB liabilities. Net amount is made up of $26 million of MRB assets and $7,363 million of MRB liabilities.

(3)Includes Core products.

(4)Funds withheld receivable that contain embedded derivatives held at fair value are excluded from the tables above. The funds withheld receivable embedded derivative utilizes a total return swap technique which incorporates the fair value of the invested assets supporting the reinsurance agreement as a component of the valuation.

    Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2022

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average
	(Dollars in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate	$	4	Matrix pricing model	Spread over benchmark	245 bps - 245 bps	245 bps
Purchased MRB asset (1) (2) (4)	13		Discounted cash flow	Lapse rates Withdrawal rates Annuitization Non-performance risk (bps) Mortality: Ages 0-40 Ages 41-60 Ages 61-115	N/A	N/A
Liabilities:
Direct MRB (1) (2) (3) (4)	$	3	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115	157 bps 0.35% - 35.42% 0.20% - 1.24% 0.04% - 100.00% 0.01% - 0.17% 0.06% - 0.52% 0.32% - 40.00%	157 bps 4.35% 1.22% 3.27% 1.08% (same for all ages) (same for all ages)

(1)Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.

(2)Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. GMIB utilization rates were developed as a function of the GMIB benefit base.

(3)MRB liabilities are shown net of MRB assets. Net amount is made up of $15 million of MRB liabilities and $12 million of MRB assets.

(4)Includes Core products.

Level 3 Financial Instruments for which Quantitative Inputs are Not Available

Certain Privately Placed Debt Securities with Limited Trading Activity

Excluded from the tables above as of June 30, 2023 and December 31, 2022, respectively, are approximately $29 million and $14 million of Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. These investments primarily consist of certain

35

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

privately placed debt securities with limited trading activity, and their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. Significant increases or decreases in the fair value amounts received from these pricing sources may result in the Company’s reporting significantly higher or lower fair value measurements for these Level 3 investments.

•The fair value of private placement securities is determined by application of a matrix pricing model or a market comparable company value technique. The significant unobservable input to the matrix pricing model valuation technique is the spread over the industry-specific benchmark yield curve. Generally, an increase or decrease in spreads would lead to directionally inverse movement in the fair value measurements of these securities. The significant unobservable input to the market comparable company valuation technique is the discount rate. Generally, a significant increase (decrease) in the discount rate would result in significantly lower (higher) fair value measurements of these securities.

Market Risk Benefits

Significant unobservable inputs with respect to the fair value measurement of the Purchased MRB assets and MRB liabilities identified in the table above are developed using Company data. Future policyholder behavior is an unobservable market assumption and as such all aspects of policyholder behavior are derived based on recent historical experience. These policyholder behaviors include lapses, pro-rata withdrawals, dollar for dollar withdrawals, GMIB utilization, deferred mortality and payout phase mortality. Many of these policyholder behaviors have dynamic adjustment factors based on the relative value of the rider as compared to the account value in different economic environments. This applies to all variable annuity related products; products with GMxB riders including but not limited to GMIB, GMDB and GWL.

Lapse rates are adjusted at the contract level based on a comparison of the value of the embedded GMxB rider and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. For valuing Purchased MRB assets and MRB liabilities, lapse rates vary throughout the period over which cash flows are projected.

Carrying Value of Financial Instruments Not Otherwise Disclosed in Note 3 and Note 4 of Notes to Financial Statements

The carrying values and fair values as of June 30, 2023 and December 31, 2022 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Financial Statements are presented in the table below.

36

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed

	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
June 30, 2023:
Mortgage loans on real estate	$	17	$	—	$	—	$	15	$	15
Policy loans	$	260	$	—	$	—	$	265	$	265
Funds withheld receivable	$	10,751	$	—	$	—	$	10,751	$	10,751
Modco receivable	$	30,022	$	—	$	—	$	30,022	$	30,022
Policyholders’ liabilities: Investment contracts	$	110	$	—	$	—	$	101	$	101
Separate Accounts liabilities	$	267	$	—	$	—	$	267	$	267
December 31, 2022:
Mortgage loans on real estate	$	17	$	—	$	—	$	15	$	15
Policy loans	$	244	$	—	$	—	$	248	$	248
Funds withheld receivable	$	—	$	—	$	—	$	—	$	—
Modco receivable	$	—	$	—	$	—	$	—	$	—
Policyholders’ liabilities: Investment contracts	$	115	$	—	$	—	$	106	$	106
Separate Accounts liabilities	$	—	$	—	$	—	$	—	$	—

Mortgage Loans on Real Estate

Fair values for commercial mortgage loans on real estate are measured by discounting future contractual cash flows to be received on the mortgage loan using interest rates at which loans with similar characteristics and credit quality would be made. The discount rate is derived based on the appropriate U.S. Treasury rate with a like term to the remaining term of the loan to which a spread reflective of the risk premium associated with the specific loan is added. Fair values for mortgage loans anticipated to be foreclosed and problem mortgage loans are limited to the fair value of the underlying collateral, if lower.

Policy Loans

The fair value of policy loans is calculated by discounting expected cash flows based upon the U.S. Treasury yield curve and historical loan repayment patterns.

Policyholder Liabilities - Investment Contracts and Separate Account Liabilities

The fair values for deferred annuities and certain annuities, which are included in policyholders’ account balances and liabilities for investment contracts with fund investments in Separate Accounts are estimated using projected cash flows discounted at rates reflecting current market rates. Significant unobservable inputs reflected in the cash flows include lapse rates and withdrawal rates. Incremental adjustments may be made to the fair value to reflect non-performance risk. Certain other products such as the Company’s association plans contracts, supplementary contracts not involving life contingencies, Access Accounts and Escrow Shield Plus product reserves are held at book value.

Financial Instruments Exempt from Fair Value Disclosure or Otherwise Not Required to be Disclosed

Exempt from Fair Value Disclosure Requirements

Certain financial instruments are exempt from the requirements for fair value disclosure, such as insurance liabilities other than financial guarantees.

7)    LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS

The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts for the six months ended June 30, 2023 and 2022.

The payout annuities result from annuitization of current contracts. Inflows are the liquidation of the account values not premiums:

37

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Six Months Ended June 30, 2022
	2023		2022
	Payout-Legacy
	(in millions)
Present Value of Expected Future Policy Benefits
Balance, beginning of period	$	—	$	—
Beginning balance of original discount rate	—		—
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	—		—
Adjusted beginning of period balance	—		—
Issuances	120		—
Interest accrual	—		—
Benefits payments	—		—
Ending balance at original discount rate	120		—
Effect of changes in discount rate assumptions	(1)		—
Balance, end of period	$	119	$	—
Net liability for future policy benefits	$	119	$	—
Less: Reinsurance recoverable	—		—
Net liability for future policy benefits, after reinsurance recoverable	$	119	$	—
Weighted-average duration of liability for future policyholder benefits (years)	7.6		0

The following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Reconciliation
Payout - Legacy	$	119
UL (1)	322
Other (2)	308
Subtotal	749
Other policy funds	460
Grand total	$	1,209

______________

(1)Represents the SOP NLG Rider on UL contracts assumed from Equitable Financial.

(2)Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits.

	December 31, 2022
	(in millions)
Reconciliation
Universal Life (1)	$	58
Other (2)	220
Future policyholder benefits, total	278
Other policyholder liabilities	391
Total	$	669

______________

38

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

(1)Represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Internal Reinsurance Transaction described further in Note 1, these are no longer material and are not disclosed separately.

(2)Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits.

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
	(in millions)
Payout-Legacy
Expected future benefit payments and expenses (undiscounted)	$	174	$	—
Expected future gross premiums (undiscounted)	—		—
Expected future benefit payments and expenses (discounted)	117		—
Expected future gross premiums (discounted)	—		—

The following tables provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	Gross Premium				Interest Accretion
	(in millions)
Revenue and Interest Accretion
Payout - Legacy (1)	$	21	$	—	$	—	$	—
Total	$	21	$	—	$	—	$	—

(1) Gross premium reflected is the liquidation of Account Value at time of annuitization.

The following table provides the weighted average interest rates for the liability for future policy benefits as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
Weighted Average Interest Rate
Payout-Legacy
Interest accretion rate	5.5	%	—	%
Current discount rate	5.6	%	—	%

The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities for the six months ended June 30, 2023 and 2022:

39

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Six Months Ended June 30,
	2023		2022
	UL (1)		Universal Life (2)
	(Dollars in millions)
Balance, beginning of period	$	—	$	57
Beginning balance before AOCI adjustments	—		55
Effect of changes in interest rate and cash flow assumptions and model changes	—		—
Effect of actual variances from expected experience	—		(1)
Adjusted beginning of period balance	—		54
Issuances (3)	322		—
Interest accrual	—		1
Net assessments collected	—		5
Benefit payments	—		—
Ending balance before shadow reserve adjustments	322		60
Effect of shadow reserve adjustment	—		(7)
Balance, end of period	$	322	$	53
Net liability for additional liability	$	322	$	53
Effect of reserve adjustment recorded in AOCI	—		—
Net liability for additional liability, after reinsurance recoverable	$	322	$	53
Weighted-average duration of additional liability - death benefit (years)	18.6		33.5

______________

(1)The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial.

(2)The 2022 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 1, these are no longer material and are not disclosed separately.

(3)Issuances represent the UL SOP NLG business assumed from Equitable Financial on April 1, 2023.

The following tables provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities for the six months ended June 30, 2023 and 2022.

	Six Months Ended June 30, 2023
	Assessments		Interest Accretion
	(in millions)
Revenue and Interest Accretion
UL (1)	$	258	$	4
Total	$	258	$	4

_____________

(1)The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial.

	Six Months Ended June 30, 2022
	Assessments		Interest Accretion
Revenue and Interest Accretion
Universal Life	9		1
Total	$	9	$	1

___________

(1)The 2022 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 1, these are no longer material and are not disclosed separately.

40

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Six Months Ended June 30,
	2023		2022
Weighted Average Interest Rate
Universal Life	4.5	%	5.5	%
Interest accretion rate	4.5	%	5.5	%

8)    MARKET RISK BENEFITS

The following table presents the balances and changes to the balances for the market risk benefits for the GMxB benefits on deferred variable annuities for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,
	2023				2022
	GMxB Core		GMxB Legacy		GMxB Core		GMxB Legacy
	(Dollars in millions)
Balance, beginning of period	$	(14)	$	—	$	(7)	$	—
Balance BOP before changes in the instrument specific credit risk	(8)		—		(2)		—
Model changes and effect of changes in cash flow assumptions	—		—		—		—
Actual market movement effect	(108)		(264)		10		—
Interest accrual	9		68		—		—
Attributed fees accrued (1)	101		95		1		—
Benefit payments	(12)		(153)		—		—
Actual policyholder behavior different from expected behavior	6		(4)		1		—
Changes in future economic assumptions	(224)		(364)		(12)		—
Issuances (2)	1,292		6,865		—		—
Balance EOP before changes in the instrument-specific credit risk	1,056		6,243		(2)		—
Changes in the instrument-specific credit risk (3)	(9)		(6)		(8)		—
Balance, end of period	$	1,047	$	6,237	$	(10)	$	—
Weighted-average age of policyholders (years)	64.3		73.5		59.7		—
Net amount at risk	$	3,079	$	10,464	$	11	$	—

_______________

(1)Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Financial Statements.

(3)Changes are recorded in OCI.

41

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Six Months Ended June 30,
	2023				2022
	GMxB Core		GMxB Legacy		GMxB Core		GMxB Legacy
	(Dollars in millions)
Balance, beginning of period	$	(9)	$	—	$	—	$	—
Balance BOP before changes in the instrument specific credit risk	(8)		—		1		—
Model changes and effect of changes in cash flow assumptions	—		—		—		—
Actual market movement effect	(113)		(264)		14		—
Interest accrual	9		68		—		—
Attributed fees accrued (1)	102		95		1		—
Benefit payments	(12)		(153)		—		—
Actual policyholder behavior different from expected behavior	8		(4)		2		—
Changes in future economic assumptions	(222)		(364)		(19)		—
Issuances (2)	1,292		6,865		(1)		—
Balance EOP before changes in the instrument-specific credit risk	1,056		6,243		(2)		—
Changes in the instrument-specific credit risk (3)	(9)		(6)		(8)		—
Balance, end of period	$	1,047	$	6,237	$	(10)	$	—
Weighted-average age of policyholders (years)	64.3		73.5		59.7		—
Net amount at risk	$	3,079	$	10,464	$	11	$	—

_______________

(1)Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Financial Statements.

(3)Changes are recorded in OCI.

The following table reconciles market risk benefits by the amounts in an asset position and amounts in a liability position to the market risk amounts in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023										December 31, 2022
	MRB Asset		MRB Liability		Net MRB		Purchased MRB		Total		MRB Asset		MRB Liability		Net MRB		Purchased MRB		Total
	(in millions)
GMxB Core	$	(25)	$	1,072	$	1,047	$	—	$	1,047	$	(12)	$	3	$	(9)	$	—	$	(9)
GMxB Legacy	—		6,237		6,237		—		6,237		—		—		—		—		—
Other (1)	(1)		54		53		(10)		43		—		12		12		(13)		(1)
Total	$	(26)	$	7,363	$	7,337	$	(10)	$	7,327	$	(12)	$	15	$	3	$	(13)	$	(10)

______________

(1)    Other, for June 30, 2023, primarily reflects Individual EquiVest. Other, for December 31, 2022, primarily reflects Protective Life Reinsured business.

42

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

9)    POLICYHOLDER ACCOUNT BALANCES    

The following table summarizes the balances and changes in policyholders’ account balances for the six months ended June 30, 2023:

	Six Months Ended June 30, 2023
	UL		IUL		EI		EG		SCS (1)
	(Dollars in millions)
Balance, beginning of period	$	—	$	1,962	$	—	$	—	242
Issuances (2)	1,208		349		2,213		6,817		31,189
Premiums received	122		119		3		93		—
Policy charges	(128)		(93)		—		(1)		(2)
Surrenders and withdrawals	(4)		(25)		(74)		(230)		(606)
Benefit payments	(5)		(5)		(9)		(7)		(55)
Net transfers from (to) separate account	—		—		(12)		45		2,823
Interest credited (3)	9		73		16		69		2,212
Balance, end of period	$	1,202	$	2,380	$	2,137	$	6,786	$	35,803
Weighted-average crediting rate	3.32%		2.34%		2.92%		2.31%		N/A
Net amount at risk (4)	$	16,580	$	19,438	$	107	$	17	$	11
Cash surrender value	$	1,044	$	1,790	$	2,130	$	6,713	$	32,495

______________

(1)SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Financial Statements.

(3)SCS includes amounts related to the change in embedded derivative.

(4)For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder.

The following table summarizes the balances and changes in policyholders’ account balances for the six months ended June 30, 2022:

	Six Months Ended June 30, 2022
	IUL		VUL		GMxB Core		Reinsured (2)
	(Dollars in millions)
Balance, beginning of period	$	1,973	$	614	$	13	$	866
Issuances	—		—		—		—
Premiums received	127		9		30		18
Policy charges	(89)		(14)		(1)		(12)
Surrenders and withdrawals	(12)		—		—		(39)
Benefit payments	(4)		(4)		—		(6)
Net transfers from (to) separate account	—		26		(27)		2
Interest credited (3)	(54)		7		—		18
Other	—		—		—		—
Balance, end of period	$	1,941	$	638	$	15	$	847
Weighted-average crediting rate	2.18%		3.52%		1.00%		4.27%
Net amount at risk (4)	$	18,260	$	28,861	$	11	$	4,272
Cash surrender value	$	1,477	$	518	$	16	$	846

___________

(1)SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account.

43

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

(2)Reinsured primarily reflects Protective Life reinsured business.

(3)SCS includes amounts related to the change in embedded derivative.

(4)For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder.

The following table reconciles the policyholders account balances to the policyholders’ account balance liability in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Policyholders’ account balance reconciliation
UL	$	1,202
IUL	2,380
EI	2,137
EG	6,786
SCS	35,803
Other (1)	(27,294)
Total	$	21,014

______________

(1) Includes $(30) billion of assumed fair value of the modco reinsurance with Equitable Financial.

	December 31, 2022
	(in millions)
Policyholders’ account balance reconciliation
IUL	$	1,962
VUL	655
GMxB Core	27
IE	7
SCS	242
Reinsured	819
Other	39
Total	$	3,751

The following table presents the account values by range of guaranteed minimum crediting rates and the related range of the difference in basis points, between rates being credited policyholders and the respective guaranteed minimums as of June 30, 2023 and December 31, 2022:

June 30, 2023
Product (1)	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
		(in millions)
Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
	1.51% - 2.50%	76		13		476		130		695
	Greater than 2.50%	—		506		—		—		506
	Total	$	76	$	519	$	476	$	130	$	1,201

44

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

June 30, 2023
Product (1)	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
		(in millions)
Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
Indexed Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
	1.51% - 2.50%	1,125		596		559		—		2,280
	Greater than 2.50%	—		—		—		—		—
	Total	$	1,125	$	596	$	559	$	—	$	2,280
EQUI-VEST Individual	0.00% - 1.50%	$	51	$	218	$	—	$	—	$	269
	1.51% - 2.50%	44		—		—		—		44
	Greater than 2.50%	1,823		—		—		—		1,823
	Total	$	1,918	$	218	$	—	$	—	$	2,136
SCS	Products with either a fixed rate or no guaranteed minimum	N/A		N/A		N/A		N/A		N/A
EQUI-VEST Group	0.00% - 1.50%	$	497	$	1,982	$	23	$	315	$	2,817
	1.51% - 2.50%	258		—		—		—		258
	Greater than 2.50%	2,844		—		1		—		2,845
	Total	$	3,599	$	1,982	$	24	$	315	$	5,920

45

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

December 31, 2022
Product	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above		51 Basis Points-150 Basis Points Above		Greater Than 150 Basis Points Above		Total
		(in millions)
Indexed Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
	1.51% - 2.50%	1,202		666		73		—		1,941
	Greater than 2.50%	—		—		—		—		—
	Total	$	1,202	$	666	$	73	$	—	$	1,941
Variable Universal Life	0.00% - 1.50%	$	18	$	30	$	2	$	—	$	50
	1.51% - 2.50%	73		12		—		—		85
	Greater than 2.50%	460		—		2		—		462
	Total	$	551	$	42	$	4	$	—	$	597
Investment Edge	0.00% - 1.50%	$	7	$	—	$	—	$	—	$	7
	1.51% - 2.50%	—		—		—		—		—
	Greater than 2.50%	—		—		—		—		—
	Total	$	7	$	—	$	—	$	—	$	7
GMxB Core	0.00% - 1.50%	$	32	$	—	$	—	$	—	$	32
	1.51% - 1.51%	—		—		—		—		—
	Greater than 2.50%	—		—		—		—		—
	Total	$	32	$	—	$	—	$	—	$	32

Separate Account - Summary

The following table presents the balances of and changes in separate account liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30, 2023
	VUL		GMxB Core		IE		Reinsured (2)
Balance, beginning of period	1,653		$	756	$	26	$	913
Premiums and deposits	190		439		270		11
Policy charges	(64)		(4)		—		(17)
Surrenders and withdrawals	(23)		(11)		(2)		(37)
Benefit payments	(5)		(3)		—		(11)
Investment performance (1)	192		79		4		141
Net transfers from (to) general account	(25)		65		(163)		(1)
Other charges	—		—		—		—
Balance, end of period	$	1,918	$	1,321	$	135	$	999
Cash surrender value	$	1,590	$	1,221	$	129	N/A

_______________

(1)Investment performance is reflected net of mortality and expense fees.

(2)Reinsured primarily reflects Protective Life reinsured ceded business.

46

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Six Months Ended June 30, 2022
	VUL		GMxB Core		Reinsured (1)
	(in millions)
Balance, beginning of period	$	1,832	$	315	$	1,244
Premiums and deposits	177		166		10
Policy charges	(60)		(1)		(14)
Surrenders and withdrawals	(16)		(3)		(24)
Benefit payments	(3)		—		(5)
Investment performance (2)	(361)		(74)		(141)
Net transfers from (to) general account	(26)		27		(2)
Other charges	—		—		—
Balance, end of period	$	1,543	$	430	$	1,068
Cash surrender value	$	1,241	$	392	N/A

_______________

(1)Reinsured primarily reflects Protective Life reinsured ceded business.

(2)Investment performance is reflected net of mortality and expense fees.

The following table reconciles the separate account liabilities to the separate account liability balance in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Separate Account Reconciliation
VUL	$	1,918
GMxB Core	1,321
IE	135
Reinsured	999
Other	135
Total	$	4,508

	December 31, 2022
	(in millions)
Separate Account Reconciliation
VUL	$	1,653
GMxB Core	756
IE	26
Reinsured	913
Other	26
Total	$	3,374

The following table presents the aggregate fair value of separate account assets by major asset category as of June 30, 2023 and December 31, 2022:

47

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	June 30, 2023
	Life Insurance & Employee Benefits Products		Individual Variable Annuity Products		Employer - Sponsored Products		Other		Legacy Segment		Total
	(in millions)
Asset Type
Mutual Funds	$	2,414	$	2,081	$	—	$	13	$	—	$	4,508
Total	$	2,414	$	2,081	$	—	$	13	$	—	$	4,508

	December 31, 2022
	Life Insurance & Employee Benefits Products			Individual Variable Annuity Products			Employer - Sponsored Products			Other			Legacy Segment		Total
	(in millions)
Asset Type
Mutual Funds	$	2,096	—	$	1,265	—	$	—	—	$	13	—	$	—	$	3,374
Total	$	2,096		$	1,265		$	—		$	13		$	—	$	3,374

10)    INCOME TAXES

Income tax expense for the three and six months ended June 30, 2023 and 2022 was computed using an estimated annual effective tax rate (“ETR”), with discrete items recognized in the period in which they occur. The estimated ETR is revised, as necessary, at the end of successive interim reporting periods.

During the fourth quarter of 2022, the Company established a valuation allowance of $85 million against its deferred tax asset related to unrealized capital losses in the AFS securities portfolio. For the three month period ended March 31, 2023, the Company recorded a decrease to the valuation allowance of $16 million due to a decrease in the portfolio’s unrealized capital loss. This adjustment was allocated to other comprehensive income.

As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. During the three-months ended March 31, 2023, the Company increased its available future liquidity by increasing borrowing capacity and amending certain counterparty agreements. As a result of these actions, the Company was able to assert its ability and intent to hold the underlying securities in its AFS portfolio to recovery. Based on all available evidence, the Company concluded the deferred tax assets related to unrealized tax capital losses are more-likely-than-not to be realized and that a valuation allowance was not necessary. The remaining release of the valuation allowance of $69 million was recorded in net income for the three months ended March 31, 2023.

The Company uses the aggregate portfolio approach related to the stranded or disproportionate income tax effects in accumulated other comprehensive income related to AFS securities. Under this approach, the disproportionate tax effect remains intact as long as the investment portfolio remains.

11)    RELATED PARTY TRANSACTIONS

On May 17, 2023, Equitable America entered into a reinsurance agreement with Equitable Financial, effective April 1, 2023. See Note 1 and Note 16 of the Notes to these Financial Statements for further details.

12)    EQUITY

AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of June 30, 2023 and December 31, 2022 is as follows:

48

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	June 30, 2023		December 31, 2022
	(in millions)
Unrealized gains (losses) on investments	$	(362)	$	(383)
Market risk benefits - instrument-specific credit risk component	16		1
Liability or future policy benefits - current discount rate component	$	1	$	—
Accumulated other comprehensive income (loss)	$	(345)	$	(382)

The components of OCI, net of taxes for the three and six months ended June 30, 2023 and 2022, follow:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Change in net unrealized gains (losses) on investments:
Net unrealized gains (losses) arising during the period	$	(51)	$	(159)	$	21	$	(335)
(Gains) losses reclassified into net income (loss) during the period (1)	—		2		4		3
Net unrealized gains (losses) on investments	(51)		(157)		25		(332)
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other	—		4		(1)		8
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(28), $(41), $(12) and $(86)).	(51)		(153)		24		(324)
Change in LFPB discount rate and MRB credit risk
Market risk benefits - change in instrument-specific credit risk (net of deferred income tax expense (benefit) of $2, $1, $3 and $2).	7		3		12		8
Liability for future policy benefits - change in current discount rate (net of deferred income tax expense (benefit) of $—, $—, $—, and $—)	1		—		1		—
Other comprehensive income (loss)	$	(43)	$	(150)	$	37	$	(316)

____________

(1)See “Reclassification adjustment” in Note 3 of the Notes to these Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $(2) million, $(1) million, $(1) million and $(1) million for the three and six months ended June 30, 2023 and 2022, respectively.

Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and credit losses of AFS securities and are included in total investment gains (losses), net on the statements of income (loss). Amounts presented in the table above are net of tax.

13)    COMMITMENTS AND CONTINGENT LIABILITIES

Litigation

Litigation, regulatory and other loss contingencies arise in the ordinary course of the Company’s activities. The Company is a defendant in litigation matters arising from the conduct of its business. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek, or they may be required only to state an amount sufficient to meet a court’s jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim.

The outcome of a litigation or regulatory matter is difficult to predict, and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have

49

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period.

For some matters, the Company is able to estimate a range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of June 30, 2023, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $5 million.

For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company’s accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews.

Funding Agreement-Backed Commercial Paper Program

In May 2023, the Company established a funding agreement-backed commercial paper program (the “FABCP Program”), pursuant to which a special purpose limited liability company (the “SPLLC”) may issue commercial paper and deposit the proceeds with the Company pursuant to a funding agreement issued by the Company to the SPLLC. The current maximum aggregate principal amount permitted to be outstanding at any one time under the FABCP Program is $1.0 billion. The Company had $0 outstanding as of June 30, 2023.

Guarantees and Other Commitments

The Company has no outstanding commitments under existing mortgage loans or mortgage loan commitment agreements at June 30, 2023.

14)    INSURANCE STATUTORY FINANCIAL INFORMATION

Prescribed and Permitted Accounting Practices

As of June 30, 2023, the following prescribed practice resulted in surplus that is different from the statutory surplus that would have been reported had NAIC statutory accounting practices been applied.

During 2022, Equitable Life Financial Insurance Company of America received approval from the Arizona Department of Insurance and Financial Institutions pursuant to A.R.S. 20-515 for Separate Account No. 68A (“SA 68A”) for our Structured Capital Strategies product, Separate Account No. 69A (“SA 69A”) for our EQUI-VEST product Structured Investment Option and Separate Account No. 71A (“SA 71A”) for our Investment Edge Structured Investment Option, to permit us to use book value as the accounting basis of these three non-insulated Separate Accounts instead of fair value in accordance with the NAIC Accounting and Practices and Procedures Manual to align with how we manage and measure our overall general account asset portfolio. The impact of the application is a decrease of approximately $36 million in statutory surplus as of June 30, 2023.

15)    UNPAID CLAIM AND CLAIM EXPENSES

The following summarizes the change in liability for unpaid claims and claim expenses:

50

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

Liability for Unpaid Claims and Claim Expenses

	Six Months Ended June 30,
	2023		2022
	(in millions)
Gross Balance, beginning of period	$	110	$	78
Less Reinsurance	36		23
Net Balance, beginning of period	74		55
Incurred Claims (net) Related to:
Current Period	121		88
Prior Period	(14)		9
Total Incurred	107		97
Paid Claims (net) Related to:
Current Period	65		49
Prior Period	33		27
Total Paid	98		76
Net Balance, end of period	83		76
Add Reinsurance	40		29
Gross Balance, end of period	$	123	$	105

16)    REINSURANCE

The Company assumes and cedes reinsurance with other insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability.

The following table summarizes the effect of reinsurance:

51

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
					(in millions)
Direct charges and fee income	$	92	$	78	$	178	$	151
Reinsurance assumed - Equitable Financial	345		—		345		—
Reinsurance ceded	(26)		(22)		(51)		(39)
Policy charges and fee income	$	411	$	56	$	472	$	112
Direct premiums	$	86	$	74	$	171	$	133
Reinsurance assumed - Equitable Financial	40		—		40		—
Reinsurance ceded	(14)		(14)		(30)		(24)
Premiums	$	112	$	60	$	181	$	109
Direct policyholders’ benefits	$	110	$	106	$	209	$	191
Reinsurance assumed - Equitable Financial	264		—		264		—
Reinsurance ceded	(39)		(24)		(59)		(35)
Policyholders’ benefits	$	335	$	82	$	414	$	156
Direct interest credited to policyholders’ account balances	$	42	$	32	$	74	$	77
Reinsurance assumed - Equitable Financial	151		—		151		—
Reinsurance ceded	(8)		(9)		(17)		(35)
Interest credited to policyholders’ account balances	$	185	$	23	$	208	$	42

Ceded Reinsurance

In 2013, the Company entered into the Reinsurance Agreement with Protective to reinsure an in-force book of life insurance and annuity policies written prior to 2004. In addition to the Reinsurance Agreement, the Company entered into a long-term administrative services agreement with Protective whereby Protective will provide all administrative and other services with respect to the reinsured business.

For business not reinsured with Protective, the Company generally reinsures its variable life and interest-sensitive life insurance policies on an excess of retention basis. The Company generally retains up to a maximum of $4 million of mortality risk on single-life policies and up to a maximum of $6 million of mortality risk on second-to die policies. For amounts applied for in excess of those limits, reinsurance is ceded to Equitable Financial up to a combined maximum of $20 million of risk on single-life policies and up to a maximum of $25 million on second-to die policies. For amounts issued in excess of these limits, reinsurance is typically obtained from unaffiliated third parties. These reinsurance arrangements obligate the reinsurers to pay a portion of any death claim in excess of the amount the Company retains in exchange for an agreed-upon premium.

Equitable America has a quota share arrangement with AXA Global Re (formerly AXA Cessions), assuming a percentage of excess Life/Disability/A&H business. The contract is now closed to new business.

Beginning in 2015, group short and long-term disability is being reinsured with Group Reinsurance Plus (GRP) via a quota share arrangement.

Assumed Reinsurance

On May 17, 2023, Equitable America entered into a Reinsurance Treaty with Equitable Financial, effective April 1, 2023. Pursuant to the Reinsurance Treaty, virtually all of Equitable Financial’s net retained General Account liabilities, including all of its net retained liabilities relating to the living benefit and death riders related to (i) its variable annuity contracts issued outside the State of New York prior to October 1, 2022 (and with respect to its EQUI-VEST variable annuity contracts, issued outside the State of New York prior to February 1, 2023) and (ii) certain universal life insurance policies issued outside the State of New York prior to October 1, 2022, were reinsured to Equitable America on a coinsurance funds withheld basis. See Note 1 to these Financial Statements for further details on the transaction.

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EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

There is a diverse pool of assets supporting the funds withheld and NI modco arrangement with Equitable Financial. The following table summarizes the composition of the pool of assets at June 30, 2023:

	June 30, 2023
	Carrying Value		Fair Value
	(in millions)
Fixed maturities	$	25,889	$	25,889
Mortgage loans on real estate	8,528		7,391
Policy loans	229		230
Other equity investments	245		245
Other invested assets (1)	7,249		7,249
Total assets supporting funds withheld	$	42,140	$	41,004

(1)    Other invested assets includes derivatives and cash and cash equivalents.

17)    REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

During the quarter ended September 30, 2022, the Company identified errors primarily related to the calculation of the deferred cost of reinsurance amortization. Specifically, the deferred cost of reinsurance as reflected on the balance sheet was overstated and operating expenses (deferred cost amortization) was understated commencing in the quarter ended December 31, 2019 with a cumulative impact of $14 million pre-tax. In accordance with SAB No. 108, management evaluated the impact of this error and concluded that previously issued financial statements were not materially misstated; however, the cumulative impact would be material to the quarter ended September 30, 2022 and annual period ending December 31, 2022 and accordingly, determined to revise previously reported financial statements for years ended December 31, 2021, 2020 and 2019 and for the three-month periods ended March 31, 2022 and 2021 and June 30, 2022 and 2021 and for the six-months periods ended June 30, 2022 and June 2021. As a result of the determination to revise previously issued financial statements for the amortization matter discussed above, management also has corrected other previously identified but uncorrected errors and errors recorded in incorrect periods including, (a) balance sheet gross up errors resulting from incorrectly calculating reserves relating to business which has been 100% ceded to reinsurers resulting in corrections to Future policy benefits and other policyholders’ liabilities and Amounts due from reinsurers; (b) the classification of a preferred stock investment of $25 million from AFS debt securities to equity securities and present previously recorded unrealized losses as net investment income (loss) rather than as a component of other comprehensive income in the amount of $2 million; and, (c) other immaterial errors.

The following tables present line items for prior period impacted financial statements that have been affected by the errors discussed above as well as the impact of the adoption of ASU 2018-12:

	Three Months Ended June 30, 2022										Six Months Ended June 30, 2022
	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised		As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised
	(in millions)
Statements of Income (Loss)
Benefits and other deductions
Other operating costs and expenses	$	22	$	(2)	$	20	$	1	$	21	$	43	$	(1)	$	42	$	2	$	44
Total benefits and deductions	177		(6)		171		1		172		338		(21)		317		2		319
Income (loss) from continuing operations, before income taxes	(12)		(20)		(32)		(1)		(33)		(34)		(23)		(57)		(2)		(59)
Income tax (expense) benefit from continuing operations	(1)		10		9		(1)		8		2		13		15		(1)		14
Net income (loss) from continuing operations	(13)		(10)		(23)		(2)		(25)		(32)		(10)		(42)		(3)		(45)
Net income (loss)	$	(13)	$	(10)	$	(23)	$	(2)	$	(25)	$	(32)	$	(10)	$	(42)	$	(3)	$	(45)

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EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Three Months Ended June 30, 2022										Six Months Ended June 30, 2022
	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised		As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised
	(in millions)
Statements of Comprehensive Income (Loss)
Net income (loss)	$	(13)	$	(10)	$	(23)	$	(2)	$	(25)	$	(32)	$	(10)	$	(42)	$	(3)	$	(45)
Comprehensive income (loss)	$	(150)	$	(23)	$	(173)	$	(2)	$	(175)	$	(319)	$	(40)	$	(359)	$	(3)	$	(361)

	Three Months Ended June 30, 2022
Statements of Equity:	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revision		As Revised
	(in millions)
Additional paid-in capital, beginning of year	$	680	$	—	$	680	$	1	$	681
Additional paid-in capital, end of period	681		—		681		1		682
Accumulated Deficit, beginning of year	(79)		(64)		(142)		(12)		(154)
Net income (loss)	(13)		(10)		(23)		(2)		(25)
Accumulated Deficit, end of period	(92)		(74)		(166)		(13)		(179)
Total equity, end of period	$	391	$	(92)	$	299	$	(11)	$	288

	Six Months Ended June 30, 2022
Statements of Equity:	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revision		As Revised
	(in millions)
Additional paid-in capital, beginning of year	$	679	$	—	$	679	$	1	$	680
Additional paid-in capital, end of year	681		—		681		1		682
Accumulated Deficit, beginning of year	(60)		(64)		(124)		(10)		(134)
Net income (loss)	(32)		(10)		(42)		(3)		(45)
Accumulated Deficit, end of year	(92)		(74)		(166)		(13)		(179)
Accumulated other comprehensive income (loss), beginning of year	86		12		98		—		98
Other comprehensive income (loss)	(287)		(30)		(317)		1		(316)
Total equity, end of year	$	391	$	(92)	$	299	$	(11)	$	288

54

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

Notes to Financial Statements (Unaudited), Continued

	Six Months June 30, 2022
	As Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revision		As Revised
	(in millions)
Statement of Cash Flows:
Cash flow from operating activities:
Net income (loss)	$	(32)	$	(10)	$	(42)	$	(3)	$	(45)
Future policy benefits	4		—		4		13		17
Reinsurance recoverable	1		—		1		(13)		(12)
Current and deferred income taxes	(2)		(13)		(15)		1		(14)
Other, net	$	104	$	—	$	104	$	2	$	106

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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis of financial condition and results of operations is presented pursuant to General Instruction (H)(2)(a) of Form 10-Q. The management’s narrative that follows should be read in conjunction with the financial statements and the related Notes to Financial Statements included elsewhere herein, with the information provided under “Note Regarding Forward-looking Statements and Information” included elsewhere herein and Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) in Part II, Item 7 contained in the Recast 2022 Annual Report and “Risk Factors” in Part I, Item 1A included in Equitable America’s Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). The management’s narrative that follows represents a discussion and analysis of Equitable America’s financial condition and results of operations and not the financial condition and results of operations of Equitable Holdings, Inc. (“Holdings”).

Executive Summary

Overview

We are an indirect, wholly-owned subsidiary of Holdings. Our primary business is to provide life insurance, annuity, and employee benefit products to individuals and small and medium-sized businesses. We are licensed to sell our products in 49 states (not including New York), the District of Columbia and Puerto Rico.

Internal Reinsurance Treaty

On May 17, 2023, the Company entered into a reinsurance agreement (the “Reinsurance Treaty”) with Equitable Financial, effective April 1, 2023. Pursuant to the Reinsurance Treaty, virtually all of Equitable Financial’s net retained general account liabilities, including all of its net retained liabilities relating to the living benefit and death riders related to (i) its variable annuity contracts issued outside the State of New York prior to October 1, 2022 (and with respect to its EQUI-VEST variable annuity contracts issued outside the State of New York prior to February 1, 2023) and (ii) certain universal life insurance policies issued outside the State of New York prior to October 1, 2022 were reinsured to the Company on a coinsurance funds withheld basis. In addition, all of the Separate Account liabilities relating to such variable annuity contracts were reinsured to the Company on a modified coinsurance basis. The Company’s obligations under the Reinsurance Treaty are secured through Equitable Financial’s retention of certain assets supporting the reinsured liabilities. In exchange for the Company’s agreement to assume these liabilities, The New York Department of Financial Services (the “NYDFS”) and the Arizona Department of Insurance and Financial Institutions each approved the Reinsurance Treaty.

The Reinsurance Treaty further diversifies our sources of regulated cash flows and supports more stable dividends to Holdings from Equitable Financial and the Company.

As a condition to approving the Reinsurance Treaty, the NYDFS has required that Equitable Financial seeks to novate the reinsured contracts on a reasonable best effort basis either to the Company or another affiliate over the next three years. Novations of the reinsured contracts are subject to additional regulatory approvals, as well as certain policyholder approvals.

Long - Duration Targeted Improvements (“LDTI”) Adoption

Effective January 1, 2023, the Company adopted ASU 2018-12 and elected a transition date of January 1, 2021, thereby permitting the Company to implement the standard only for the last two fiscal years rather than the customary last three fiscal years.

The Company adopted ASU 2018-12 for liability for future policy benefits, additional insurance liabilities, DAC and balances amortized on a basis consistent with DAC on a modified retrospective basis. ASU 2018-12 was adopted for MRBs on a full retrospective basis. See Note 2 of the Notes to the Financial Statements for further information on the adoption of LDTI.

Macroeconomic and Industry Trends

Our business and results of operations are significantly affected by economic conditions and consumer confidence, conditions in the global capital markets and the interest rate environment.

Financial and Economic Environment

A wide variety of factors continue to impact financial and economic conditions. These factors include, among others, concerns over increased volatility in the capital markets, equity market declines, rising interest rates, inflationary pressures fueling concerns of a potential recession, plateauing or decreasing economic growth, high fuel and energy costs, changes in

56

fiscal or monetary policy and geopolitical tensions. Despite ongoing concerns about inflation and the U.S. Federal Reserve’s tightening monetary policies, the second quarter experienced positive returns for the S&P 500, the Dow Jones Industrial Average, and Nasdaq, driven primarily by a rally in big technology stocks. However, the ongoing military conflict between the Ukraine and Russia and the sanctions and other measures imposed in response to this conflict also continue to contribute to geopolitical tensions and market volatility.

Stressed conditions, volatility and disruptions in the capital markets, particular markets, or financial asset classes can have an adverse effect on us, in part because we have a large investment portfolio. In addition, our insurance liabilities and derivatives are sensitive to changing market factors, including equity market performance and interest rates, which continued to rise during the second quarter 2023. An increase in market volatility could continue to affect our business, including through effects on the yields we earn on invested assets, changes in required reserves and capital and fluctuations in the value of our AUM and AV, from which we derive our fee income. These effects could be exacerbated by uncertainty about future fiscal policy, changes in tax policy, the scope of potential deregulation and levels of global trade.

The potential for increased volatility, coupled with prevailing interest rates remaining below historical averages despite recent increases, could pressure sales and reduce demand for our products as consumers consider purchasing alternative products to meet their objectives. In addition, this environment could make it difficult to consistently develop products that are attractive to customers. Financial performance can be adversely affected by market volatility and equity market declines as fees driven by AV and AUM fluctuate, hedging costs increase and revenues decline due to reduced sales and increased outflows

We monitor the behavior of our customers and other factors, including mortality rates, morbidity rates, annuitization rates and lapse and surrender rates, which change in response to changes in capital market conditions, to ensure that our products and solutions remain attractive and profitable. For additional information on our sensitivity to interest rates and capital market prices, see “Quantitative and Qualitative Disclosures About Market Risk.” in the Recast 2022 Annual Report.

Regulatory Developments

We are regulated primarily by the Arizona Department of Insurance and Financial Institutions, with some policies and products also subject to federal regulation. On an ongoing basis, regulators refine capital requirements and introduce new reserving standards. Regulations recently adopted or currently under review can potentially impact our statutory reserve and capital requirements.

On August 13, 2023, the NAIC adopted a short-term solution related to the accounting treatment of an insurer’s negative interest maintenance reserve (“IMR”) balance, which may occur when a rising interest rate environment causes an insurer’s IMR balance to become negative as a result of bond sales executed at a capital loss. If this occurs, previous statutory accounting guidance required the non-admittance of negative IMR, which can impact how accurately an insurer’s surplus and financial strength are reflected in its financial statements and result in lower reported surplus and RBC ratios. NAIC’s new interim statutory accounting guidance, which is effective until December 31, 2025, allows an insurer with an authorized control level RBC greater than 300% to admit negative IMR up to 10% of its general account capital and surplus, subject to certain restrictions and reporting obligations. The NAIC intends to develop a long-term solution for the accounting treatment of negative IMR, which may nullify the application of the proposed short-term solution if implemented prior to December 31, 2025.

The NAIC has been evaluating the risks associated with insurers’ investments in certain categories of structured securities, including CLOs. In March 2023, the NAIC adopted an amendment to the Purposes and Procedures Manual to give the NAIC’s Structured Securities Group, housed within the SVO, responsibility for modeling CLO securities and evaluating tranche level losses across all debt and equity tranches under a series of calibrated and weighted collateral stress scenarios in order to assign NAIC designations. Under the amended Purposes and Procedures Manual, which will become effective no earlier than year-end 2024 financial reporting, CLO investments will no longer be broadly exempt from filing with the SVO based on ratings from Credit Rating Providers. The NAIC’s goal is to ensure that the weighted average RBC factor for owning all tranches of a CLO more closely aligns with what would be required for directly owning all of the underlying loan collateral, in order to avoid RBC arbitrage. The NAIC is collaborating with interested parties to develop and refine the process for modeling CLO investments. In addition, on August 16, 2023, the NAIC increased the RBC factor for structured security residual tranches from 30% to 45% beginning on January 1, 2024. We cannot predict what effect this may have on our business and compliance costs.

The NAIC is also developing a new model law to replace the existing privacy models #670 (Insurance Information and Privacy Protections Model Act) and #672 (Privacy of Consumer Financial and Health Information Regulation). The NAIC’s Privacy Protections (H) Working Group (“PPWG”) held meetings in the spring, during which interested parties and consumer advocates provided feedback on the initial exposure draft of the new Consumer Privacy Protections and Model Law (“Model

57

674”). PPWG rewrote the model law and exposed a new draft of Model 674 on July 11, 2023. Due to the large number of comments received, the PPWG intends to ask for an extension of time to develop the new model law at he NAIC’s Fall National Meeting in December 2023. We cannot predict whether Model 674 will be adopted, what form it will take, or what effect it would have on our business or compliance efforts in the form adopted by states whose laws apply to our insurance subsidiaries.

In July 2023, the SEC adopted the Risk Management, Strategy, Governance, and Incident Disclosure Final Rule (the “Cybersecurity Final Rule”) enhancing disclosure requirements for registered companies covering cybersecurity risk and management. The Cybersecurity Final Rule requires registrants to disclose material cybersecurity incidents on Form 8-K within four business days of a determination that a cybersecurity incident is material, and such materiality determination must be made without unreasonable delay. The rule also requires periodic disclosures of, among other things, details on the company’s processes to assess, identify, and manage cybersecurity risks, cybersecurity governance, and management’s role in overseeing such a compliance program, including the board of directors’ oversight of cybersecurity risks. Certain reporting requirements under the Cybersecurity Final Rule become effective as early as December 2023.

For additional information on the regulatory developments, see “Business—Regulation” and “Risk Factors—Legal and Regulatory Risks” in the Recast 2022 Annual Report.

Revenues

Our revenues come from three principal sources:

•fee income derived from our products;

•premiums from our traditional life insurance, annuity, and employee benefits products; and

•investment income from our General Account investment portfolio.

Our fee income varies directly in relation to the amount of the underlying AV or benefit base of our life insurance and annuity products which are influenced by changes in economic conditions, primarily equity market returns, as well as net flows. Our premium income is driven by the growth in new policies written and covered lives, and the persistency of our in-force policies, which are influenced by a combination of factors, including our efforts to attract and retain customers and market conditions that influence demand for our products. Our investment income is driven by the yield on our General Account investment portfolio and is impacted by the prevailing level of interest rates as we reinvest cash associated with maturing investments and net flows to the portfolio.

Benefits and Other Deductions

Our primary expenses are:

•policyholders’ benefits and interest credited to policyholders’ account balances;

•sales commissions and compensation paid to intermediaries and advisors that distribute our products and services; and

•compensation and benefits provided to Equitable Financial’s employees and other operating expenses.

Policyholders’ benefits are driven primarily by mortality, morbidity, customer withdrawals and benefits which change in response to changes in capital market conditions. In addition, some of our policyholders’ benefits are directly tied to the AV and benefit base of our variable annuity products. Interest credited to policyholders varies in relation to the amount of the underlying AV or benefit base. Sales commissions and compensation paid to intermediaries and advisors vary in relation to premium and fee income generated from these sources, whereas compensation and benefits to Equitable Financial’s employees are more constant and impacted by market wages and decline with increases in efficiency. Our ability to manage these expenses across various economic cycles and products is critical to the profitability of our company.

Significant Factors Impacting Our Results

The following significant factors have impacted, and may in the future impact, our financial condition, results of operations or cash flows.

Impact of Hedging on Results

We have offered and continue to offer variable annuity and life insurance products. The future claims exposure on these features is sensitive to movements in the equity markets and interest rates. Accordingly, we have implemented hedging

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programs designed to mitigate the economic exposure to us from these features due to equity market and interest rate movements. Changes in the values of the derivatives associated with these programs due to equity market and interest rate movements are recognized in the periods in which they occur while corresponding changes in offsetting liabilities not measured at fair value, are recognized over time. This results in net income volatility.

Effect of Assumption Updates on Operating Results

Our actuaries oversee the valuation of the product liabilities and assets and review the underlying inputs and assumptions. We comprehensively review the actuarial assumptions underlying these valuations and update assumptions during the third quarter of each year. Assumptions are based on a combination of Company experience, industry experience, management actions and expert judgment and reflect our best estimate as of the date of the applicable financial statements. Changes in assumptions can result in a significant change to the carrying value of product liabilities and assets and, consequently, the impact could be material to earnings in the period of the change.

Most of the variable annuity products, variable universal life insurance and universal life insurance products we offer maintain policyholder deposits that are reported as liabilities and classified within either Separate Accounts liabilities or policyholder account balances. Our products and riders also impact liabilities for future policyholder benefits and unearned revenues and assets for DAC and DSI. The valuation of these assets and liabilities (other than deposits) is based on differing accounting methods depending on the product, each of which requires numerous assumptions and considerable judgment. The accounting guidance applied in the valuation of these assets and liabilities includes, but is not limited to, the following: (i) universal life insurance and variable life insurance secondary guarantees for which benefit liabilities are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments; (ii) certain product guarantees for which benefit liabilities are accrued over the life of the contract in proportion to actual and future expected policy assessments; and (iii) certain product guarantees reported as embedded derivatives at fair value.

For further details of our accounting policies and related judgments pertaining to assumption updates, see Note 2 of the Notes to the Financial Statements.

Results of Operations

The following table summarizes our statements of income (loss) for the six months ended June 30, 2023 and 2022:

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Statement of Income (Loss)

	Six Months Ended June 30,
	2023		2022
	(in millions)
REVENUES
Policy charges and fee income	$	472	$	112
Premiums	181		109
Net derivative gains (losses)	(694)		(11)
Net investment income (loss)	85		41
Investment gains (losses), net	(5)		(3)
Investment management and service fees	110		11
Other income	44		1
Total revenues	193		260
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits	414		156
Remeasurement of liability for future policy benefits	—		(1)
Change in market risk benefits and purchased market risk benefits	(862)		(4)
Interest credited to policyholders’ account balances	208		42
Compensation and benefits	28		20
Commissions	121		42
Amortization of deferred policy acquisition costs	28		20
Other operating costs and expenses	245		44
Total benefits and other deductions	182		319
Income (loss) from continuing operations, before income taxes	11		(59)
Income tax (expense) benefit	66		14
Net income (loss)	$	77	$	(45)

The following discussion compares the results for the six months ended June 30, 2023 to the six months ended June 30, 2022.

Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022

Net Income (Loss) Attributable to Equitable America

Net income attributable to Equitable America increased $122 million, to net income of $77 million for the six months ended June 30, 2023 from a net loss of $45 million for the six months ended June 30, 2022, primarily driven by the following notable items:

Favorable items included:

•Change in market risk benefits and purchased market risk benefits decreased by $858 million mainly due to the increase in equity market and interest rate impacts on the assumed MRBs from Equitable Financial as part of the Reinsurance Treaty in the second quarter 2023.

•Fee-type revenue increased by $574 million mainly due to the Reinsurance Treaty in the second quarter 2023 and business growth, primarily driven by an increase in employee benefit premiums.

•Net investment income increased by $44 million mainly due to higher assets and higher yields, including higher SCS asset balances due to higher sales.

•Income tax benefit increased $52 million primarily driven by a release of the valuation allowance of $69 million, partially offset by pre-tax income for the six months ended June 30, 2023 compared to a pre-tax loss for the six months ended June 30, 2022.

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These were partially offset by the following unfavorable items:

•Net derivative losses increased $683 million primarily due to the Reinsurance Treaty in the second quarter as equity markets increased compared to a decrease in the second quarter of 2022 resulting in losses associated with indexed annuity products which were offset by net embedded derivative gains related to the funds withheld and modified coinsurance portfolios held at Equitable Financial on behalf of the Company.

•Policyholders’ benefits increased by $258 million mainly due to business assumed as part of the Reinsurance Treaty in the second quarter 2023.

•Compensation, benefits and other operating expenses increased of $209 million mainly due to expense recognition related to the reinsurance deposit assets and expenses related to the assumed business as part of the Reinsurance Treaty.

•Interest credited to policyholders’ account balances increased by $166 million primarily due to business assumed as part of the Reinsurance Treaty in the second quarter 2023.

◦Commissions increased by $79 million primarily due to business assumed as part of the Reinsurance Treaty in the second quarter 2023 and an increase in sales related to business growth resulting from our initiative to begin offering a full suite of variable annuity products to policyholders located outside of New York.

Summary of Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in our financial statements included elsewhere herein. For a discussion of our significant accounting policies, see Note 2 of the Notes to the Financial Statements. The most critical estimates include those used in determining:

•market risk benefits and purchased market risk benefits;

•accounting for reinsurance;

•estimated fair values of investments in the absence of quoted market values and investment impairments;

•estimated fair values of freestanding derivatives and the recognition and estimated fair value of embedded derivatives requiring bifurcation;

•measurement of income taxes and the valuation of deferred tax assets; and

•liabilities for litigation and regulatory matters.

In applying our accounting policies, we make subjective and complex judgments that frequently require estimates about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries while others are specific to our business and operations. Actual results could differ from these estimates.

Market Risk Benefits

Market risk benefits include contract features that provide minimum guarantees to policyholders and include GMIB, GMDB, GMWB, GMAB, and ROP DB benefits. MRBs are measured at estimated fair value with changes reported in the change in market risk benefits and purchased market risk benefits, except for the portion of the fair value change related to the Company’s own credit risk, which is recognized in OCI.

MRBs are measured at fair value on a seriatim basis using an ascribed fee approach based upon policyholder behavior projections and risk neutral economic scenarios adjusted based on the facts and circumstances of the Company’s product features. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and variations in actuarial assumptions, including policyholder behavior, mortality and risk margins related to non-capital market inputs, as well as changes in our nonperformance risk adjustment may result in significant fluctuations in the estimated fair value of the MRBs that could materially affect net income.

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial

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assumptions. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount needed to cover the guarantees.

We ceded the risk associated with certain of the variable annuity products with GMxB features described in the preceding paragraphs. The value of the MRBs on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by us with the exception of the input for nonperformance risk that reflects the credit of the reinsurer.

Nonperformance Risk Adjustment

The valuation of our MRBs includes an adjustment for the risk that we fail to satisfy our obligations, which we refer to as our nonperformance risk. The nonperformance risk adjustment, which is captured as a spread over the risk-free rate in determining the discount rate to discount the cash flows of the liability, is determined by taking into consideration publicly available information relating to spreads on corporate bonds in the secondary market comparable to Holdings’ financial strength rating.

The table below illustrates the impact that a range of reasonably likely variances in credit spreads would have on our balance sheet, excluding the effect of income tax, related to the GMxB Core MRBs measured at estimated fair value. Even when credit spreads do not change, the impact of the nonperformance risk adjustment on fair value will change when the cash flows within the fair value measurement change. The table only reflects the impact of changes in credit spreads on our financial statements included elsewhere herein and not these other potential changes. In determining the ranges, we have considered current market conditions, as well as the market level of spreads that can reasonably be anticipated over the near term. The ranges do not reflect extreme market conditions such as those experienced during the 2008–2009 financial crisis as we do not consider those to be reasonably likely events in the near future.

NPR Sensitivity

December 31, 2022

	Increase/(Decrease) In MRB
	(in millions)
Increase in NPR by 50bps	$	(8)
Decrease in NPR by 50bps	$	9

Sensitivity of MRBs to Changes in Interest Rates

The following table demonstrates the sensitivity of the MRBs to changes in long-term interest rates by quantifying the adjustments that would be required, assuming an increase and decrease in long-term interest rates of 50bps. This information considers only the direct effect of changes in the interest rates on MRB balances, net of reinsurance:

Interest Rate Sensitivity

December 31, 2022

	Increase/(Decrease) In MRB
	(in millions)
Increase in interest rates by 50bps	$	(7)
Decrease in interest rates by 50bps	$	8

Sensitivity of MRBs to Changes in Equity Returns

The following table demonstrates the sensitivity of the MRBs to changes in equity returns:

Equity Returns Sensitivity

December 31, 2022

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	Increase/(Decrease) In MRB
	(in millions)
Increase in equity returns by 10%	$	(6)
Decrease in equity returns by 10%	$	7

Sensitivity of MRBs to Changes in GMIB Lapses

Lapse rates are adjusted at the contract level based on a comparison of the value of the embedded GMIB rider and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse.

GMIB Lapse floor Sensitivity

December 31, 2022

	Increase/(Decrease) In MRB
	(in millions)
GMIB Lapse floor of 1%	$	6

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to the quantitative and qualitative disclosures about market risk described in the Recast 2022 Annual Report in "Quantitative and Qualitative Disclosures About Market Risk".

Item 4.     Controls and Procedures

Management, with the participation of the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act. Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30, 2023, the Company’s disclosure controls and procedures were effective.

No changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act) occurred during the quarter ended June 30, 2023, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Part II     OTHER INFORMATION

Item 1.     Legal Proceedings

For information regarding certain legal proceedings pending against us, see Note 13 of the Notes to the Financial Statements (unaudited) in this Form 10-Q. Also see “Risk Factors—Legal and Regulatory Risks—Legal and regulatory actions” included in the Recast 2022 Annual Report.

Item 1A. Risk Factors

You should carefully consider the risks described in the “Risk Factors” section included in the 2022 Form 10-K. Risks to which we are subject also include, but are not limited to, the factors mentioned under “Note Regarding Forward-Looking Statements and Information” above and the risks of our businesses described elsewhere in this Quarterly Report on Form 10-Q.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3.     Defaults Upon Senior Securities

Not applicable.

Item 4.    Mine Safety Disclosures

Not applicable.

Item 5.     Other Information

Insider Trading Arrangements During the Three Months Ended June 30, 2023

None of our Section 16 officers or directors (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any “non-Rule 10b5-1 trading arrangement” (as defined in Section 408(c) of Regulation S-K).

Item 6.     Exhibits    

INDEX TO EXHIBITS

Number		Description
10.1	#	Indemnity Reinsurance Agreement, by and between Equitable Financial Life Insurance Company and Equitable Financial Life Insurance Company of America, dated as of May 17, 2023.
31.1	#	Section 302 Certification made by the registrant’s Chief Executive Officer
31.2	#	Section 302 Certification made by the registrant’s Chief Financial Officer
32.1	#	Section 906 Certification made by the registrant’s Chief Executive Officer
32.2	#	Section 906 Certification made by the registrant’s Chief Financial Officer
101.INS		XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
104		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibits 101).

______________

#    Filed herewith.

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GLOSSARY

Selected Financial Terms

Account Value (“AV”)	Generally equals the aggregate policy account value of our retirement and protection products. General Account AV refers to account balances in investment options that are backed by the General Account while Separate Accounts AV refers to Separate Accounts investment assets.
Alternative investments	Investments in real estate and real estate joint ventures and other limited partnerships.
Annualized Premium	100% of first year recurring premiums (up to target) and 10% of excess first year premiums or first year premiums from single premium products.
Assets under management (“AUM”)	Investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by AB, (ii) the assets in our GAIA portfolio and (iii) the Separate Account assets of our retirement and protection businesses. Total AUM reflects exclusions between segments to avoid double counting.
Combined RBC Ratio	Calculated as the overall aggregate RBC ratio for the Company’s insurance subsidiaries including capital held for its life insurance and variable annuity liabilities and non-variable annuity insurance liabilities.
Conditional tail expectation (“CTE”)	Calculated as the average amount of total assets required to satisfy obligations over the life of the contract or policy in the worst x% of scenarios. Represented as CTE (100 less x). Example: CTE95 represents the worst five percent of scenarios.
Deferred policy acquisition cost (“DAC”)	Represents the incremental costs related directly to the successful acquisition of new and certain renewal insurance policies and annuity contracts and which have been deferred on the balance sheet as an asset.
Deferred sales inducements (“DSI”)	Represent amounts that are credited to a policyholder’s account balance that are higher than the expected crediting rates on similar contracts without such an inducement and that are an incentive to purchase a contract and also meet the accounting criteria to be deferred as an asset that is amortized over the life of the contract.
Dividends Received Deduction (“DRD”)	A tax deduction under U.S. federal income tax law received by a corporation on the dividends it receives from other corporations in which it has an ownership stake.
Fee-Type Revenue	Revenue from fees and related items, including policy charges and fee income, premiums, investment management and service fees, and other income.
Gross Premiums	First year premium and deposits and renewal premium and deposits.
GMxB	A general reference to all forms of variable annuity guaranteed benefits, including guaranteed minimum living benefits, or GMLBs (such as GMIBs, GMWBs and GMABs), and guaranteed minimum death benefits, or GMDBs (inclusive of return of premium death benefit guarantees).
GMxB Core	Retirement Cornerstone and Accumulator sold 2011 and later.
GMxB Legacy	Fixed-rate GMxB business written prior to 2011

Invested assets	Includes fixed maturity securities, equity securities, mortgage loans, policy loans, alternative investments and short-term investments.
P&C	Property and casualty.
Premium and deposits	Amounts a policyholder agrees to pay for an insurance policy or annuity contract that may be paid in one or a series of payments as defined by the terms of the policy or contract.
Protection Solutions Reserves	Equals the aggregate value of Policyholders’ account balances and Future policy benefits for policies in our Protection Solutions segment.
Protective Life & Annuity	Business 100% ceded to Protective in a reinsurance treaty.

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Reinsurance	Insurance policies purchased by insurers to limit the total loss they would experience from an insurance claim.
Renewal premium and deposits	Premiums and deposits after the first twelve months of the policy or contract.
Risk-based capital (“RBC”)	Rules to determine insurance company statutory capital requirements. It is based on rules published by the National Association of Insurance Commissioners (“NAIC”).
Total adjusted capital (“TAC”)	Primarily consists of capital and surplus, and the asset valuation reserve.
Value of business acquired (“VOBA”)	Present value of estimated future gross profits from in-force policies of acquired businesses.
Product Terms
401(k)	A tax-deferred retirement savings plan sponsored by an employer. 401(k) refers to the section of the Internal Revenue Code of 1986, as amended (the “Code”) pursuant to which these plans are established.
403(b)	A tax-deferred retirement savings plan available to certain employees of public schools and certain tax-exempt organizations. 403(b) refers to the section of the Code pursuant to which these plans are established.
457(b)	A deferred compensation plan that is available to governmental and certain non-governmental employers. 457(b) refers to the section of the Code pursuant to which these plans are established.
Accumulation phase	The phase of a variable annuity contract during which assets accumulate based on the policyholder’s lump sum or periodic deposits and reinvested interest, capital gains and dividends that are generally tax-deferred.
Affluent	Refers to individuals with $250,000 to $999,999 of investable assets.
Annuitant	The person who receives annuity payments or the person whose life expectancy determines the amount of variable annuity payments upon annuitization of an annuity to be paid for life.
Annuitization	The process of converting an annuity investment into a series of periodic income payments, generally for life.

Benefit base	A notional amount (not actual cash value) used to calculate the owner’s guaranteed benefits within an annuity contract. The death benefit and living benefit within the same contract may not have the same benefit base.
Cash surrender value	The amount an insurance company pays (minus any surrender charge) to the policyholder when the contract or policy is voluntarily terminated prematurely.
Deferred annuity	An annuity purchased with premiums paid either over a period of years or as a lump sum, for which savings accumulate prior to annuitization or surrender, and upon annuitization, such savings are exchanged for either a future lump sum or periodic payments for a specified length of time or for a lifetime.
Dollar-for-dollar withdrawal	A method of calculating the reduction of a variable annuity benefit base after a withdrawal in which the benefit is reduced by one dollar for every dollar withdrawn.
EQUI-VEST Group (“EG”)	A traditional variable deferred annuity without enhanced guaranteed benefits with single and ongoing premiums sold in the tax-exempt 403(b)/(457(b) markets.
EQUI-VEST Individual (“(EI”)	A traditional variable deferred annuity without enhanced guaranteed benefits sold in the individual market.
Fixed annuity	An annuity that guarantees a set annual rate of return with interest at rates we determine, subject to specified minimums. Credited interest rates are guaranteed not to change for certain limited periods of time.
Fixed Rate GMxB	Guarantees on our individual variable annuity products that are based on a rate that is fixed at issue.

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Floating Rate GMxB	Guarantees on our individual variable annuity products that are based on a rate that varies with a specified index rate, subject to a cap and floor.
Future policy benefits	Future policy benefits for the annuities business are comprised mainly of liabilities for life-contingent income annuities, and liabilities for the variable annuity guaranteed minimum benefits accounted for as insurance. Future policy benefits for the life business are comprised mainly of liabilities for traditional life and certain liabilities for universal and variable life insurance contracts (other than the Policyholders’ account balance).
General Account Investment Portfolio	The invested assets held in the General Account.
General Account	The assets held in the general accounts of our insurance companies as well as assets held in our Separate Accounts on which we bear the investment risk.
GMxB	A general reference to all forms of variable annuity guaranteed benefits, including guaranteed minimum living benefits, or GMLBs (such as GMIBs, GMWBs and GMABs), and guaranteed minimum death benefits, or GMDBs (inclusive of return of premium death benefit guarantees).
Guaranteed income benefit (“GIB”)	An optional benefit which provides the policyholder with a guaranteed lifetime annuity based on predetermined annuity purchase rates applied to a GIB benefit base, with annuitization automatically triggered if and when the contract AV falls to zero.

Guaranteed minimum accumulation benefits (“GMAB”)	An optional benefit (available for an additional cost) which entitles an annuitant to a minimum payment, typically in lump-sum, after a set period of time, typically referred to as the accumulation period. The minimum payment is based on the benefit base, which could be greater than the underlying AV.
Guaranteed minimum death benefits (“GMDB”)	An optional benefit (available for an additional cost) that guarantees an annuitant’s beneficiaries are entitled to a minimum payment based on the benefit base, which could be greater than the underlying AV, upon the death of the annuitant.
Guaranteed minimum income benefits (“GMIB”)	An optional benefit (available for an additional cost) where an annuitant is entitled to annuitize the policy and receive a minimum payment stream based on the benefit base, which could be greater than the underlying AV.
Guaranteed minimum living benefits (“GMLB”)	A reference to all forms of guaranteed minimum living benefits, including GMIBs, GMWBs and GMABs (does not include GMDBs).
Guaranteed minimum withdrawal benefits (“GMWB”)	An optional benefit (available for an additional cost) where an annuitant is entitled to withdraw a maximum amount of their benefit base each year, for which cumulative payments to the annuitant could be greater than the underlying AV.
Guaranteed Universal Life (“GUL”)	A universal life insurance offering with a lifetime no lapse guarantee rider, otherwise known as a guaranteed UL policy. With a GUL policy, the premiums are guaranteed to last the life of the policy.
Guaranteed withdrawal benefit for life (“GWBL”)	An optional benefit (available for an additional cost) where an annuitant is entitled to withdraw a maximum amount of their benefit base each year, for the duration of the policyholder’s life, regardless of account performance.
High net worth	Refers to individuals with $1,000,000 or more of investable assets.
Index-linked annuities	An annuity that provides for asset accumulation and asset distribution needs with an ability to share in the upside from certain financial markets such as equity indices, or an interest rate benchmark. With an index-linked annuity, the policyholder’s AV can grow or decline due to various external financial market indices performance.
Investment Edge (“IE”)	A traditional variable deferred annuity without enhanced guaranteed benefits.
Indexed Universal Life (“IUL”)	A permanent life insurance offering built on a universal life insurance framework that uses an equity-linked approach for generating policy investment returns.
Living benefits	Optional benefits (available at an additional cost) that guarantee that the policyholder will get back at least his original investment when the money is withdrawn.

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Mortality and expense risk fee (“M&E fee”) A fee charged by insurance companies to compensate for the risk they take by issuing life insurance and variable annuity contracts.

Net flows	Net change in customer account balances in a period including, but not limited to, gross premiums, surrenders, withdrawals and benefits. It excludes investment performance, interest credited to customer accounts and policy charges.
Policyholder account balances	Annuities. Policyholder account balances are held for fixed deferred annuities, the fixed account portion of variable annuities and non-life contingent income annuities. Interest is credited to the policyholder’s account at interest rates we determine which are influenced by current market rates, subject to specified minimums. Life Insurance Policies. Policyholder account balances are held for retained asset accounts, universal life policies and the fixed account of universal variable life insurance policies. Interest is credited to the policyholder’s account at interest rates we determine which are influenced by current market rates, subject to specified minimums.
Return of premium (“ROP”) death benefit	This death benefit pays the greater of the account value at the time of a claim following the owner’s death or the total contributions to the contract (subject to adjustment for withdrawals). The charge for this benefit is usually included in the M&E fee that is deducted daily from the net assets in each variable investment option. We also refer to this death benefit as the Return of Principal death benefit.
Rider	An optional feature or benefit that a policyholder can purchase at an additional cost.
Roll-up rate	The guaranteed percentage that the benefit base increases by each year.
Separate Account	Refers to the separate account investment assets of our insurance subsidiaries excluding the assets held in those Separate Accounts on which we bear the investment risk.
Surrender charge	A fee paid by a contract owner for the early withdrawal of an amount that exceeds a specific percentage or for cancellation of the contract within a specified amount of time after purchase.

Surrender rate	Represents annualized surrenders and withdrawals as a percentage of average AV.
Universal life (“UL”) products	Life insurance products that provide a death benefit in return for payment of specified annual policy charges that are generally related to specific costs, which may change over time. To the extent that the policyholder chooses to pay more than the charges required in any given year to keep the policy in-force, the excess premium will be placed into the AV of the policy and credited with a stated interest rate on a monthly basis.
Variable annuity	A type of annuity that offers guaranteed periodic payments for a defined period of time or for life and gives purchasers the ability to invest in various markets though the underlying investment options, which may result in potentially higher, but variable, returns.
Variable Universal Life (“VUL”)	Universal life products where the excess amount paid over policy charges can be directed by the policyholder into a variety of Separate Account investment options. In the Separate Account investment options, the policyholder bears the entire risk and returns of the investment results.
Whole Life (“WL”)	A life insurance policy that is guaranteed to remain in-force for the policyholder’s lifetime, provided the required premiums are paid.

ACRONYMS

•“AB” or “AllianceBernstein” means AB Holding and ABLP.

•“AB Holding” means AllianceBernstein Holding L.P., a Delaware limited partnership.

•“AB Holding Units” means units representing assignments of beneficial ownership of limited partnership interests in AB Holding.

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•“ABLP” means AllianceBernstein L.P., a Delaware limited partnership and the operating partnership for the AB business.

•“AFS” means available-for-sale

•“AGL” means AXA Global Life

•“AOCI” means accumulated other comprehensive income

•“ASC” means Accounting Standards Codification

•“ASU” means Accounting Standards Update

•“AVR” means asset valuation reserve

•“AXA” means AXA S.A., a société anonyme organized under the laws of France, and formerly our controlling stockholder.

•“AXA Financial” means AXA Financial, Inc., a Delaware corporation and a former wholly-owned direct subsidiary of Holdings. On October 1, 2018, AXA Financial merged with and into Holdings, with Holdings assuming the obligations of AXA Financial.

•“AXA RSUs” means AXA restricted stock units

•“BPs” means basis points

•“CARES Act” means Coronavirus Aid, Relief, and Economic Security Act

•“CDS” means credit default swaps

•“CDSC” means contingent deferred sales commissions

•“CEA” means Commodity Exchange Act

•“CECL” means current expected credit losses

•“CFTC” means U.S. Commodity Futures Trading Commission

•“COLI” means corporate owned life insurance

•“Company” means Equitable Financial Life Insurance Company of America (“Equitable America”), a direct wholly-owned subsidiary of Holdings.

•“CS Life” means Corporate Solutions Life Reinsurance Company, a Delaware corporation and a wholly-owned direct subsidiary of Holdings.

•“CS Life RE” means CS Life RE Company, an Arizona corporation and a wholly-owned indirect subsidiary of Holdings.

•“CSA” means credit support annex

•“CTE” means conditional tail expectation

•“DAC” means deferred policy acquisition costs

•“DCO” means designated clearing organization

•“DI” means disability income

•“Dodd-Frank Act” means Dodd-Frank Wall Street Reform and Consumer Protection Act

•“DOL” means U.S. Department of Labor

•“DSC” means debt service coverage

•“DSI” means deferred sales inducement

•“EAFE” means European, Australasia, and Far East

•“EFS” means Equitable Financial Services, LLC, a Delaware corporation and a wholly-owned direct subsidiary of Holdings.

•“EIM” means Equitable Investment Management Group, LLC, a Delaware limited liability company and a wholly-owned indirect subsidiary of Holdings.

•“Equitable Advisors” means Equitable Advisors, LLC, a Delaware limited liability company, our retail broker/dealer for our retirement and protection businesses and a wholly-owned indirect subsidiary of Holdings.

•“Equitable America” means Equitable Financial Life Insurance Company of America (f/k/a MONY Life Insurance Company of America), an Arizona corporation and a wholly-owned indirect subsidiary of Holdings.

•“Equitable Distributors” means Equitable Distributors, LLC, a Delaware limited liability company, our wholesale broker/dealer for our retirement and protection businesses and a wholly-owned indirect subsidiary of Holdings.

•“Equitable Financial QP” means Equitable Retirement Plan

•“Equitable Financial” means Equitable Financial Life Insurance Company, a New York corporation, a life insurance company and a wholly-owned subsidiary of EFS.

•“Equitable Network” means Equitable Network, LLC, a Delaware limited liability company and wholly-owned indirect subsidiary of Holdings and its subsidiary, Equitable Network of Puerto Rico, Inc.

•“EQ Premier VIP Trust” means EQ Premier VIP Trust, a series trust that is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”), as an open-end management investment company.

•“EQAT” means EQ Advisors Trust, a series trust that is a Delaware statutory trust and is registered under the Investment Company Act as an open-end management investment company.

•“EQ AZ Life Re” means EQ AZ Life Re Company, an Arizona corporation and a wholly-owned indirect subsidiary of Holdings.

•“ERISA” means Employee Retirement Income Security Act of 1974

•“ETF” means exchange traded funds

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•“Exchange Act” means Securities Exchange Act of 1934, as amended

•“FABCP” means Funding Agreement-Backed Commercial Paper program

•“FASB” means Financial Accounting Standards Board

•“FDIC” means Federal Deposit Insurance Corporation

•“FHLB” means Federal Home Loan Bank

•“FINRA” means Financial Industry Regulatory Authority, Inc.

•“FIO” means Federal Insurance Office

•“FSOC” means Financial Stability Oversight Council

•The “General Partner” means AllianceBernstein Corporation, a Delaware corporation and the general partner of AB Holding and ABLP.

•“GIO” means guaranteed interest option

•“Holdings” means Equitable Holdings, Inc.

•“Investment Advisers Act” means Investment Advisers Act of 1940, as amended

•“IPO” means initial public offering

•“IRS” means Internal Revenue Service

•“ISDA Master Agreement” means International Swaps and Derivatives Association Master Agreement

•“IUS” means Investments Under Surveillance

•“K-12 education market” means individuals in the kindergarten, primary and secondary education market

•“LGD” means loss given default

•“LIBOR” means London Interbank Offered Rate

•“LTV” means loan-to-value

•“Manual” means Accounting Practices and Procedures Manual as established by the NAIC

•“MD&A” means Management’s Discussion and Analysis of Financial Condition and Results of Operations

•“MRBs” means market risk benefits

•“MSO” means Market Stabilizer Option

•“NAIC” means National Association of Insurance Commissioners

•“NAR” means net amount at risk

•“NAV” means net asset value

•“NFA” means National Futures Association

•“NLG” means no-lapse guarantee

•“NYDFS” means New York State Department of Financial Services

•“OCI” means other comprehensive income

•“OTC” means over-the-counter

•“PD” means probability of default

•“Performance Share Plan” means AXA International Performance Shares Plan

•“PFBL” means profits followed by losses

•“R&P” means retirement and protection

•“RBG” means the Retirement Benefits Group, a specialized division of Equitable Advisors

•“REIT” means real estate investment trusts

•“RoU” means right of use

•“RSUs” means restricted stock units

•“RTM” means reversion to the mean

•“SAP” means statutory accounting principles

•“SCB LLC” means Sanford C. Bernstein & Co., LLC, a registered investment adviser and broker-dealer.

•“SCS” means Structured Capital Strategies

•“SEC” means U.S. Securities and Exchange Commission

•“SIO” means structured investment option

•“SPE” means special purpose entity

•“SPLLC” means special purpose limited liability company

•“Stock Option Plan” means AXA Stock Option Plan for AXA Financial Employees and Associates

•“TCJA” or “Tax Reform Act” means the Tax Cuts and Jobs Act, enacted on December 22, 2017

•“TDRs” means troubled debt restructurings

•“TIPS” means treasury inflation-protected securities

•“U.S. GAAP” means accounting principles generally accepted in the United States of America

•“ULSG” means universal life products with secondary guarantee

•“URR” means unearned revenue reserve

•“VIAC” means Venerable Insurance and Annuity Company

•“VIE” means variable interest entity

•“VISL” means variable interest-sensitive life

•“VOE” means voting interest entity

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Equitable Financial Life Insurance Company of America has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 21, 2023	/s/ Robin M. Raju
	Name: Robin M. Raju
	Title: Chief Financial Officer              (Principal Financial Officer)
Date: August 21, 2023	/s/ William Eckert
	Name: William Eckert
	Title: Chief Accounting Officer              (Principal Accounting Officer)

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EX-10.1

Exhibit 10.1

INDEMNITY REINSURANCE AGREEMENT

Between

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY

(referred to as the Ceding Company)

and

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

(referred to as the Reinsurer)

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) PRIVATE OR CONFIDENTIAL. SUCH EXCLUDED INFORMATION IS IDENTIFIED HEREIN WITH “[***].” SCHEDULES AND EXHIBITS HAVE BEEN OMITTED PURSUANT TO ITEM 601(A)(5) OF REGULATION S-K.

TABLE OF CONTENTS

Article I. DEFINITIONS	1
Section 1.1.    Definitions	1
Article II. BASIS OF REINSURANCE AND BUSINESS REINSURED	15
Section 2.1.    Coverage	15
Section 2.2.    Liability	15
Section 2.3.    Indemnity Reinsurance	15
Section 2.4.    Territory	15
Section 2.5.    Reinstatements	15
Section 2.6.    Non-Guaranteed Elements	16
Section 2.7.    Retrocession	16
Section 2.8.    Separate Accounts and NI Modco Accounts	16
Section 2.9.    Existing Reinsurance	17
Article III. PAYMENTS; ADDITIONAL CONSIDERATION	17
Section 3.1.    Initial Reinsurance Premium	17
Section 3.2.    Additional Consideration	18
Section 3.3.    Net Settlement	19
Section 3.4.    Delayed Payments	20
Section 3.5.    Defenses	20
Section 3.6.    Offset	20
Section 3.7.    Premium Taxes	20
Section 3.8.    Reports from the Reinsurer	20
Article IV. ADMINISTRATION	22
Section 4.1.    Administration	22
Section 4.2.    Performance Standards	22
Section 4.3.    Administrative Expense Allowance	22
Section 4.4.    Books and Records and Access	23
Section 4.5.    Novation	23
Article V. LICENSES; RESERVE CREDIT	24
Section 5.1.    Licenses; Reserve Credit	24
Article VI. FUNDS WITHHELD ACCOUNT	25
Section 6.1.    Funds Withheld Account	25
Section 6.2.    Withdrawals from the Funds Withheld Account	25
Section 6.3.    Calculation of Funds Withheld Reserves Adjustment	26
Section 6.4.    Funds Withheld Reserves Adjustment	26
Section 6.5.    Funds Withheld Account Eligible Assets	27
Section 6.6.    Funds Withheld Account Investment Management	27
Article VII. NI MODCO ACCOUNTS	28
Section 7.1.    NI Modco Accounts	28
Section 7.2.    Calculation of NI Modco Accounts Reserves Adjustment	28

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Section 7.3.    NI Modco Accounts Reserves Adjustment	29
Section 7.4.    NI Modco Accounts Eligible Assets	29
Section 7.5.    NI Modco Accounts Investment Management	29
Article VIII. SA MODCO ACCOUNTS	30
Section 8.1.    Calculation of SA Modco Accounts Adjustment	30
Section 8.2.    SA Modco Accounts Reserves Adjustment	30
Article IX. HEDGING	30
Section 9.1.    Hedging	30
Article X. OVERSIGHTS; COOPERATION	31
Section 10.1.    Oversights	31
Section 10.2.    Cooperation	31
Section 10.3.    Changes to RBC	31
Article XI. INSOLVENCY	32
Section 11.1.    Insolvency of the Ceding Company	32
Article XII. DURATION; RECAPTURE	32
Section 12.1.    Duration	32
Section 12.2.    Survival	32
Section 12.3.    Recapture	33
Section 12.4.    Recapture Payments	33
Article XIII. INDEMNIFICATION	34
Section 13.1.    Ceding Company’s Obligation to Indemnify	34
Article XIV. TAXES	34
Section 14.1.    Withholding	34
Section 14.2.    DAC Tax Adjustment	34
Article XV. MISCELLANEOUS	35
Section 15.1.    Expenses	35
Section 15.2.    Notices	35
Section 15.3.    Severability	36
Section 15.4.    Entire Agreement	36
Section 15.5.    Assignment	36
Section 15.6.    No Third Party Beneficiaries	36
Section 15.7.    Amendment	36
Section 15.8.    Submission to Jurisdiction	36
Section 15.9.    Governing Law	37
Section 15.10.    Waiver of Jury Trial	37
Section 15.11.    Specific Performance	37
Section 15.12.    Waivers	38
Section 15.13.    Rules of Construction	38
Section 15.14.    Counterparts	38
Section 15.15.    Incontestability	39

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INDEX OF SCHEDULES AND EXHIBITS
Schedule A	Expense Allowance
Schedule B	Investment Guidelines
Schedule C-1 Schedule C-2	Types of Reinsured Contracts Assumed Retrocession Agreements
Schedule D Schedule E Schedule F Schedule G Schedule H-1 Schedule H-2	Seriatim Listing Recapture Terminal Settlement Premium Taxes Certain Indemnification Matters Hedging Guidelines – Funds Withheld Account Hedging Guidelines – NI Modco Accounts
Exhibit 1	Form of Settlement Statement

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INDEMNITY REINSURANCE AGREEMENT

THIS INDEMNITY REINSURANCE AGREEMENT (this “Agreement”) is made and entered into on May 17, 2023 (the “Closing Date”) and effective as of the Effective Time by and between Equitable Financial Life Insurance Company, a New York-domiciled insurance company (the “Ceding Company”), and Equitable Financial Life Insurance Company of America, an Arizona-domiciled insurance company (the “Reinsurer”). For purposes of this Agreement, the Ceding Company and the Reinsurer shall each be deemed a “Party” and together the “Parties.”

WHEREAS, the Ceding Company wishes to initially cede to the Reinsurer on an indemnity reinsurance basis, and the Reinsurer wishes to initially reinsure on an indemnity reinsurance basis, (a) certain life insurance and annuity contracts issued by the Ceding Company outside the State of New York and (b) certain life insurance contracts assumed by the Ceding Company as retrocessionaire; and

WHEREAS, the liabilities ceded hereunder on an indemnity basis will be ceded on a combination coinsurance funds withheld and modified coinsurance basis; and

WHEREAS, following the date hereof, the Parties shall seek to novate certain of the Reinsured Contracts from the Ceding Company to the Reinsurer or another Affiliate of the Parties in accordance with the terms of this Agreement.

NOW, THEREFORE, in consideration of the mutual and several promises and undertakings herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Ceding Company and the Reinsurer agree as follows:

Article I.

DEFINITIONS

Section 1.1.Definitions. The following terms have the respective meanings set forth below throughout this Agreement:

“Action” means any claim, action, suit, litigation, arbitration or proceeding by or before any Governmental Authority or arbitrator or arbitration panel or similar Person or body.

“Additional Consideration” has the meaning set forth in Section 3.2.

“Affiliate” means, with respect to any specified Person, any other Person that, at the time of determination, directly or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Control with such specified Person.

“Affiliate Retrocessionaire” means any Retrocessionaire that is Affiliated with the Reinsurer at the time of the initial retrocession or any time thereafter.

“Agreement” has the meaning set forth in the preamble.

“Allocated CTE [***] Amount” means, as of any date of determination, an amount equal to (a) the arithmetic mean of the Quota Share of the statutory carrying value of assets required as of such date to satisfy contractholder obligations (or the greatest present value of accumulated deficiencies) in excess of the Quota Share of the cash surrender value, as defined in the VM-21 guidelines, of all variable annuity contracts issued (including variable annuity contracts novated

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to the Reinsurer) or reinsured by the Reinsurer, including the Variable Annuity Reinsured Contracts (taking into effect any diversification or aggregation benefits that may be available based on other variable annuity business written or reinsured by the Reinsurer) in the worst [***] of the 1,000 statutory stochastic capital market scenarios, as determined by the Reinsurer, multiplied by (b) the Allocation Ratio. For the avoidance of doubt, the Allocated CTE [***] Amount is calculated on a post-tax basis consistent with US RBC requirements and is inclusive of the cash surrender value of the underlying contracts.

“Allocation Ratio” means, as of any date of determination, (a) the sum of the greater of (i) the Death Benefit Net Amount at Risk and (ii) the Income Benefit Net Amount at Risk for each Variable Annuity Reinsured Contract in pre-payout status over (b) the sum of the greater of (i) the Death Benefit Net Amount at Risk and (ii) the Income Benefit Net Amount at Risk for each variable annuity contract issued (including variable annuity contracts novated to the Reinsurer) or reinsured by the Reinsurer in pre-payout status, including the Reinsured Contracts, in each case of (i) and (ii), as of such date.

“Assumed Reinsured Contracts” has the meaning set forth in the definition of “Reinsured Contracts”.

“Assumed Retrocession Agreements” means each of the retrocession agreements listed on Schedule C-2.

“Beneficiary Continuation Option Contract” means an annuity contract issued by the Ceding Company to a beneficiary of a Reinsured Contract who has elected to receive such annuity contract in lieu of a lump sum payment for all or a portion of the beneficiary’s proceeds from such Reinsured Contract.

“Books and Records” means all books and records that relate to the Reinsured Contracts, including administrative records, claim records, sales records, underwriting records, financial records, reinsurance records, compliance records and other records, in whatever form maintained, but excluding certificates of incorporation, bylaws, corporate seals, licenses to do business, minute books and other corporate records relating to the corporate organization or capitalization of Ceding Company or its Affiliates, tax returns or records, records of any employee of Ceding Company or its Affiliates, benefit plan records with respect to any employee of Ceding Company or its Affiliates, and books and records that are subject to the attorney-client, work product, or other similar privilege or doctrine.

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in the City of New York, New York are required or authorized by Law to be closed.

“Capital Reporting Deadline” means, with respect to a calendar quarter other than the last quarter of a calendar year, the date that is forty-five (45) calendar days after the end of such calendar quarter, and with respect to the last calendar quarter of a calendar year, the date that is sixty (60) calendar days after the end of such calendar quarter.

“Ceding Commission” means [***]

“Ceding Company” has the meaning set forth in the preamble.

“Ceding Company Domiciliary State” means the State of New York, or, if the Ceding Company changes its state of domicile to another state within the United States, such other state.

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“Ceding Company Extra-Contractual Obligations” means all Extra-Contractual Obligations other than Reinsurer Extra-Contractual Obligations.

“Ceding Company Statutory Reserves” means, as of any date of determination, the aggregate statutory reserve (including unearned premium reserves and other premium accruals) amount for the General Account Liabilities calculated in accordance with the Ceding Company Domiciliary State SAP that would be applicable to Ceding Company (as would be reflected on Line 1, column 1 of the Liabilities section and Exhibit 5; Line 3, column 1 of the Liabilities section and Exhibit 7; and Line 24.07 of the Liabilities section of the Ceding Company’s Statutory Financial Statement (or the equivalent exhibits or lines in the event of changes to the Ceding Company’s Statutory Financial Statement subsequent to December 31, 2022)), as calculated as of such date (without giving effect to this Agreement) using the same process and methodologies for modeling and setting assumptions as used by the Ceding Company in calculating the statutory reserves of the Ceding Company’s similar business that is not reinsured hereunder or reinsured to a third party under any other agreement, net of (without duplication) statutory reserves ceded pursuant to the Existing Reinsurance Agreements; provided, however, that Ceding Company Statutory Reserves shall at all times (a) include any additional reserves that would be required as a result of stand-alone asset adequacy testing for the General Account Liabilities if they were not reinsured, (b) exclude NI Modco Accounts Reserves and (c) include statutory reserves for the Reinsured Contracts that are annuity contracts in payout status.

“Closing Date” has the meaning set forth in the preamble.

“Code” means the United States Internal Revenue Code of 1986.

“Company Action Level RBC” means, with respect to any insurance company, company action level RBC as calculated in accordance with the applicable Laws of such insurance company’s state of domicile.

“Control” means, with respect to any Person, the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. Control will be presumed to exist if any Person directly or indirectly owns, controls or holds with the power to vote ten percent or more of the voting securities of any other Person. The terms “Controlled,” “Controlled by,” “under common Control with” and “Controlling” shall have correlative meanings.

“DAC Tax Election” has the meaning specified in Section 14.2(a).

“Death Benefit Net Amount at Risk” means, in respect of any Variable Annuity Reinsured Contract, the excess of (a) the Guaranteed Minimum Death Benefit (GMDB) benefit base of such contract, if any, over (b) the contract account value of such contract, in each case determined in accordance with the terms of such Variable Annuity Reinsured Contract.

“Effective Time” means 12:01 a.m. (New York time) on April 1, 2023.

“Eligible Assets” has the meaning set forth in Section 6.5.

“Estimated Initial Premium” has the meaning specified in Section 3.1(b).

“Estimated Initial FWH Required Balance” has the meaning specified in Section 3.1(b).

“Estimated Initial NI Modco Accounts Required Balance” has the meaning specified in Section 3.1(c).

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“Estimated Recapture Terminal Settlement” has the meaning set forth in Section 12.4(a).

“Existing Reinsurance Agreements” means all reinsurance agreements under which the Ceding Company cedes or retrocedes to reinsurers (whether or not affiliated with the Ceding Company) risks arising in respect of the Reinsured Contracts (and only to the extent such agreements cover the Reinsured Contracts) where such agreements are (a) in force or are being treated as being in force as of the date hereof or any time after the date hereof or (b) terminated but under which there remains any outstanding liability of the reinsurer, in each case, only to the extent that such reinsurance agreement remains in force and effect.

“Expense Allowances” means, for each Quarterly Accounting Period, an amount determined in accordance with Schedule A.

“Extra-Contractual Obligations” means all Liabilities to any Person or Persons arising out of or relating to the Reinsured Contracts (other than Liabilities arising under the terms and conditions and within the policy limits of the Reinsured Contracts), including any loss in excess of the limits arising under or covered by any Reinsured Contract, any Liabilities for fines, penalties, taxes, fees, forfeitures, compensatory, consequential, punitive, exemplary, special, treble, bad faith, tort, statutory or any other form of extra-contractual damages, as well as all legal fees and expenses relating thereto, which Liabilities arise out of or result from any act, error or omission, whether or not intentional, negligent, fraudulent, in bad faith or otherwise (actual or alleged), arising out of or relating to the Reinsured Contracts, including (a) the form, sale, marketing, distribution, underwriting, production, issuance, cancellation or administration of the Reinsured Contracts, (b) the investigation, defense, prosecution, trial, settlement (including the failure to settle) or handling of claims, benefits, or payments under the Reinsured Contracts, (c) the failure to pay or the delay in payment or errors in calculating or administering the payment of benefits, claims or any other amounts due or alleged to be due under or in connection with the Reinsured Contracts, (d) the failure of the Reinsured Contracts to qualify for their intended tax status, or (e) any fines, penalties, taxes, fees, forfeitures, or other damages with respect to escheat or unclaimed property Liabilities arising under or relating to the Reinsured Contracts.

“Fair Market Value” means, with respect to any asset, the fair market value or valuation thereof (including accrued but unpaid interest) as determined by the Ceding Company in accordance with GAAP.

“FMV Triggering Event” means any of the following occurrences:

(a)the RBC Ratio of the Reinsurer or any Affiliate Retrocessionaire that assumes Reinsured Risks with respect to Reinsured Contracts that are in pre-payout status as of any calendar year-end is below [***]% and the Reinsurer or such Affiliate Retrocessionaire, as applicable, has not cured such shortfall as of the applicable Capital Reporting Deadline; provided that in the event that such Affiliate Retrocessionaire is not a U.S. domiciled insurance company, the foregoing RBC Ratios shall refer to equivalent capital adequacy ratios determined under the laws of such Affiliate Retrocessionaire’s jurisdiction of domicile as mutually agreed by the Parties;

(b)the RBC Ratio of the Reinsurer or any Affiliate Retrocessionaire that assumes Reinsured Risks with respect to Reinsured Contracts that are in pre-payout status is below [***]% for two consecutive calendar quarter-end dates, and the Reinsurer or such Affiliate Retrocessionaire, as applicable, has not cured such shortfall as of the applicable Capital Reporting Deadline; provided that in the event that such Affiliate Retrocessionaire is not a U.S. domiciled insurance company, the foregoing RBC Ratios shall refer to equivalent capital

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adequacy ratios determined under the laws of such Retrocessionaire’s jurisdiction of domicile as mutually agreed by the Parties;

(c)there has been a failure by the Reinsurer (i) to timely pay Quarterly Net Settlement amounts in accordance with Section 3.3(a) and such breach has not been cured within ten (10) calendar days after written notice thereof from the Ceding Company; or (ii) to timely fund the Funds Withheld Account in accordance with Section 6.4, as applicable, and such breach has not been cured within two (2) Business Days;

(d)a Reserve Credit Triggering Event has occurred; or

(e)the Reinsurer has been placed into liquidation, rehabilitation, conservation, supervision, receivership or similar proceedings (whether voluntary or involuntary), or there has been instituted against it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator, or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or assume control of its operations.

“Fund” means any collective investment vehicle in which a Separate Account or a division thereof invests with respect to the Reinsured Contracts.

“Funds Withheld Account” has the meaning set forth in Section 6.1(a).

“Funds Withheld Account Balance” means, as of any date of determination, the Statutory Book Value of the Eligible Assets in the Funds Withheld Account.

“Funds Withheld Reserves Adjustment” has the meaning set forth in Section 6.3.

“FWH Existing IMR Amount” means the amount of the Ceding Company’s existing IMR, calculated on an after-tax basis, that has been allocated by the Ceding Company to the General Account Liabilities ceded to the Reinsurer hereunder on a funds withheld basis as of the Closing Date determined in accordance with SAP applicable to the Ceding Company.

“FWH IMR Amount” means (a) the FWH Existing IMR Amount, plus (b) the Transaction IMR Amount, plus (c) the FWH Post-Closing Date IMR Amount.

“FWH Post-Closing Date IMR Amount” means the amount of IMR, calculated on an after-tax basis, that is created following the Closing Date with respect to the assets supporting the General Account Liabilities reinsured hereunder on a funds withheld basis determined in accordance with SAP applicable to the Ceding Company.

“FWH Required Balance” means [***]

“GAAP” mean generally accepted accounting principles in the United States applied consistently.

“General Account Liabilities” means, (a) with respect to the Assumed Reinsured Contracts, all Liabilities of the Ceding Company under the Assumed Retrocession Agreements in each case net of amounts actually collected by or on behalf of the Ceding Company under the Existing Reinsurance Agreements, and (b) with respect to all other Reinsured Contracts, all Liabilities of the Ceding Company (and with respect to clause (iii) of this definition, all Liabilities of any of its Affiliates) arising out of or resulting from the Reinsured Contracts, in each case net of amounts actually collected by or on behalf of the Ceding Company under the Existing Reinsurance Agreements, but excluding Separate Account Liabilities and Ceding Company Extra-Contractual Obligations, whether incurred before, at or after the Effective Time,

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calculated in accordance with the Ceding Company Domiciliary State SAP. Without limiting the foregoing, “General Account Liabilities” with respect to all Reinsured Contracts other than the Assumed Reinsured Contracts shall include, but not be limited to, any and all of the following Liabilities, in each case net of amounts actually collected by or on behalf of the Ceding Company under the Existing Reinsurance Agreements but excluding Separate Account Liabilities and Ceding Company Extra-Contractual Obligations:

(i)all Liabilities for (x) claims, benefits, interest on claims or unearned premiums, interest on policy funds, withdrawals, surrenders, policy loans, amounts payable for returns or refunds of premiums, guaranteed minimum death benefits, guaranteed minimum income benefits, incurred but not reported claims, pending claims and benefits (including death benefits, lump sum payments, annuitization payments, deferred payments, payments in respect of market value adjustments, and any other settlement options), unearned premiums, and other contract benefits, in each case, arising under the terms and conditions of the Reinsured Contracts and whether such amounts are escheated or paid to policyholders or beneficiaries of the Reinsured Contracts and (y) claim expenses (including all reasonable litigation expenses related thereto);

(ii)all Liabilities arising out of changes to the terms and conditions of the Reinsured Contracts;

(iii)all premium and asset commissions and other compensation and obligations payable to Producers with respect to the Reinsured Contracts;

(iv)all amounts payable under the Existing Reinsurance Agreements;

(v)all assessments and similar charges payable on or after the Effective Time with respect to the Reinsured Contracts in connection with participation by the Ceding Company or the Reinsurer, whether voluntary or involuntary, in any guaranty association established or governed by any state or other jurisdiction, arising on account of insolvencies, rehabilitations or similar proceedings occurring before, on or after the Effective Time;

(vi)all Premium Taxes allocated to the Reinsured Contracts calculated consistent with Schedule F;

(vii)all Liabilities which relate to Reinsured Contracts that (i) are amounts held in the general account of the Ceding Company pending transfer to the Separate Accounts, or (ii) contemplate payment from a Separate Account the amount of which exceeds the assets of such Separate Account (without duplication of the amounts set forth in clause (i) above); and

(viii)all Reinsurer Extra-Contractual Obligations.

For the avoidance of doubt, all NI Modco Accounts Liabilities shall be deemed General Account Liabilities and not Separate Account Liabilities.

“Governmental Authority” means any United States or non-United States federal, state or local or any supra-national, political subdivision, governmental, legislative, tax, regulatory or administrative authority, instrumentality, agency, body or commission, self-regulatory organization or any court, tribunal, or judicial or arbitral body having jurisdiction over a Party.

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“Governmental Order” means any binding and enforceable order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority.

“Hedges” has the meaning set forth in Section 9.1(a).

“Hedging Guidelines” has the meaning set forth in Section 9.1(a).

“IMR” means an interest maintenance reserve.

“Income Benefit Net Amount at Risk” means, in respect of any Variable Annuity Reinsured Contract, the excess of (a) the Guaranteed Minimum Income or Withdrawal benefit base of such contract, if any, over (b) the contract account value of such contract, in each case determined in accordance with the terms of such Variable Annuity Reinsured Contract.

“Initial FWH Required Balance” has the meaning specified in Section 3.1(e).

“Initial NI Modco Accounts Required Balance” has the meaning specified in Section 3.1(f).

“Initial Premium” has the meaning set forth in Section 3.1(a).

“Insurance Regulator” means, with respect to any insurance or reinsurance company, the insurance regulator of the jurisdiction of domicile of such insurance or reinsurance company.

“Interest Rate” means the sum of (a) one hundred (100) basis points (expressed as a rate per annum), plus (b) the average of the daily “prime rate” (expressed as a rate per annum) published in The Wall Street Journal, for each of the days in the applicable period, but in any event not less than zero (0).

“Investment Guidelines” means the Investment Guidelines set forth in Schedule B.

“Law” means any United States or non-United States federal, state or local statute, law, ordinance, regulation, code, Governmental Order or other requirement or rule of law.

“Liabilities” means any and all debts, liabilities, commitments or obligations, whether direct or indirect, accrued or fixed, known or unknown, absolute or contingent, matured or unmatured or determined or determinable, whether arising in the past, present or future.

“NI Modco Accounts” means the non-insulated separate accounts of the Ceding Company established in respect of NI Modco Accounts Reinsured Contracts.

“NI Modco Accounts Balance” means, as of any date of determination, the Statutory Book Value of the Eligible Assets in the NI Modco Accounts.

“NI Modco Accounts Existing IMR Amount” means the amount of the Ceding Company’s existing IMR, calculated on an after-tax basis, that has been allocated by the Ceding Company to the NI Modco Accounts Liabilities ceded to the Reinsurer hereunder on a modified coinsurance basis as of the Closing Date determined in accordance with SAP applicable to the Ceding Company.

“NI Modco Accounts IMR Amount” means (a) the NI Modco Accounts Existing IMR Amount, plus (b) the NI Modco Accounts Post-Closing Date IMR Amount.

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“NI Modco Accounts Liabilities” means the Ceding Company’s General Account Liabilities in respect of the NI Modco Accounts Reinsured Contracts.

“NI Modco Accounts Post-Closing Date IMR Amount” means the amount of IMR, calculated on an after-tax basis, that is created following the Closing Date with respect to the assets supporting the NI Modco Accounts Liabilities reinsured hereunder on a modified coinsurance basis determined in accordance with SAP applicable to the Ceding Company.

“NI Modco Accounts Reinsured Contracts” means those Reinsured Contracts that include non-guaranteed index benefits.

“NI Modco Accounts Required Balance” means, with respect to any date of determination, an amount equal to the sum of:

(a)for all NI Modco Accounts Reinsured Contracts in pre-payout status, 100% of the NI Modco Accounts Reserves with respect to such Reinsured Contracts; plus

(b)an amount equal to the Unamortized NI Modco Accounts IMR Amount to the extent such Unamortized NI Modco Accounts IMR Amount is a liability or an admitted asset on the Ceding Company’s statutory balance sheet;

each of (a) and (b) as of such date of determination.

“NI Modco Accounts Reserves” means, as of any date of determination, the aggregate amount of statutory reserves of the Ceding Company with respect to the NI Modco Accounts Liabilities (as would be described in Line 1, column 1 of the Liabilities section and Exhibit 3 of the Statutory Financial Statements related to the NI Modco Accounts of the Ceding Company (or the equivalent exhibits or lines in the event of changes to the Ceding Company’s Statutory Financial Statement subsequent to December 31, 2022)), calculated in accordance with the Ceding Company Domiciliary State SAP.

“NI Modco Accounts Reserves Adjustment” has the meaning set forth in Section 7.2.

“Non-Guaranteed Elements”means the cost of insurance charges, credited interest rates, mortality and expense charges, administrative expense risk charges, lump sum payment options, policy loads and any other policy features that are subject to change by the Ceding Company, and those items set forth in Actuarial Standard of Practice 2-Non-Guaranteed Charges or Benefits for Life Insurance Policies and Annuity Contracts in effect as of the Effective Time and any successor rules for such Non-Guaranteed Elements as in effect from time to time.

“Novating Reinsurer” has the meaning set forth in Section 4.5(a).

“Novating Reinsurer Separate Accounts” has the meaning set forth in Section 4.5(d).

“Novated Contracts” means a Reinsured Contract that has been novated to the Reinsurer or another Affiliate of the Parties in accordance with applicable Law.

“Parties” has the meaning set forth in the preamble.

“Party” has the meaning set forth in the preamble.

“Person” means any natural person, general or limited partnership, corporation, limited liability company, limited liability partnership, firm, association or organization or other legal entity.

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“Policy Loan Balance” means, with respect to any date of determination, the amount of contract loans in respect of the Reinsured Contracts, as of such date, as would be reflected in Line 6, column 1 of the “Assets” section of the Ceding Company’s Statutory Financial Statement (or the equivalent exhibits or lines in the event of changes to the Ceding Company’s Statutory Financial Statement subsequent to December 31, 2022), net of any unearned policy loan interest on such loans but including any due and accrued interest thereon.

“Premium Taxes” means all taxes assessed in respect of the Premiums under the Reinsured Contracts (other than the Assumed Reinsured Contracts) by any Governmental Authority.

“Premiums” means premiums, considerations, policy loan repayments, deposits and similar amounts collected by or on behalf of the Ceding Company in respect of the Reinsured Contracts other than the Assumed Reinsured Contracts.

“Producer” means any broker, insurance producer, agent, general agent, managing general agent, master broker agency, broker general agency, financial specialist or other Person, including any employee of the Ceding Company or its Affiliates, responsible for writing, marketing, producing, selling or soliciting Reinsured Contracts.

“Qualified Domestic Relations Order Contract” means an annuity contract issued by the Ceding Company pursuant to a qualified domestic relations order and which is funded by a portion of the account value of a policyholder under a Reinsured Contract.

“Quarterly Accounting Period” means each successive calendar quarter during the term of this Agreement or any fraction thereof, beginning at the Effective Time and ending on the Recapture Date or the date this Agreement is otherwise terminated in accordance with Article XII, as applicable.

“Quarterly Net Settlement” has the meaning set forth in Section 3.3(a).

“Quarterly Settlement Statement” has the meaning set forth in Section 3.3(a).

“Quota Share” means one hundred percent (100%).

“RBC Ratio” means, with respect to any U.S. domiciled insurance or reinsurance company, the percentage equal to (a) the quotient of the Total Adjusted Capital of such insurance or reinsurance company divided by the Company Action Level RBC, multiplied by (b) 100; provided, that any calculation of the RBC Ratio as of a calendar quarter-end other than the last day of a calendar year shall be based on such insurance company’s good faith estimate using, to the extent any factors are not reasonably available, amounts based on reasonable estimation and annualization.

“Recapture Date” has the meaning set forth in Section 12.3(b).

“Recapture Notice” has the meaning set forth in Section 12.3(a).

“Recapture Terminal Settlement” means the amount calculated in accordance with Schedule E.

“Recapture Triggering Event” means any of the following occurrences:

(a)the RBC Ratio of the Reinsurer or any Affiliate Retrocessionaire that assumes Reinsured Risks with respect to Reinsured Contracts that are in pre-payout status as of

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any calendar year-end is below [***]% and the Reinsurer or such Affiliate Retrocessionaire, as applicable, has not cured such shortfall as of the applicable Capital Reporting Deadline; provided that in the event that such Affiliate Retrocessionaire is not a U.S. domiciled insurance company, the foregoing RBC Ratios shall refer to equivalent capital adequacy ratios determined under the laws of such Affiliate Retrocessionaire’s jurisdiction of domicile as mutually agreed by the Parties;

(b)the RBC Ratio of the Reinsurer or any Affiliate Retrocessionaire that assumes Reinsured Risks with respect to Reinsured Contracts that are in pre-payout status is below [***]% for two consecutive calendar quarter-end dates, and the Reinsurer or such Affiliate Retrocessionaire, as applicable, has not cured such shortfall as of the applicable Capital Reporting Deadline; provided that in the event that such Affiliate Retrocessionaire is not a U.S. domiciled insurance company, the foregoing RBC Ratios shall refer to equivalent capital adequacy ratios determined under the laws of such Retrocessionaire’s jurisdiction of domicile as mutually agreed by the Parties;

(c)there has been a failure by the Reinsurer (i) to timely pay any undisputed Quarterly Net Settlement amounts in accordance with Section 3.3(a) in an aggregate amount that, when added to the aggregate amount that the Reinsurer has failed to fund in accordance with Section 6.4 that has not been cured, exceeds $[***], and the Reinsurer’s failure to pay undisputed Quarterly Net Settlements has not been cured within ten (10) calendar days after written notice thereof from the Ceding Company; or (ii)  to timely fund the Funds Withheld Account in accordance with Section 6.4 in an aggregate amount that, when added to the aggregate amount of undisputed amounts that the Reinsurer has failed to timely pay in accordance with Section 3.3(a) that has not been cured, exceeds $[***], and the Reinsurer’s failure to fund the Funds Withheld Account has not been cured within three (3) Business Days;

(d)a Reserve Credit Event has occurred and the Reinsurer has not remedied such event in accordance with the timelines in Article V; or

(e)the Reinsurer has been placed into liquidation, rehabilitation, conservation, supervision, receivership or similar proceedings (whether voluntary or involuntary), or there has been instituted against it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator, or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or assume control of its operations.

“Reinsured Contracts” means (a) those variable annuity contracts and life insurance policies of the types described on Schedule C-1 and listed in the seriatim file set forth in Schedule D, in each case that is issued outside the State of New York prior to the applicable date set forth on Schedule C-1 and, with respect to any variable annuity contracts, are not in payout status as of the Effective Time, including all binders, slips, certificates, applications therefor, supplements, endorsements, settlement options and riders thereto issued or entered into in connection with such contracts; provided, that, Novated Contracts shall cease to be Reinsured Contracts upon novation in accordance with the terms of this Agreement; provided, however, at the Ceding Company’s election exercisable by written notice to the Reinsurer, the Ceding Company may, on a prospective basis, exclude from the Reinsured Contracts reinsured hereunder any Beneficiary Continuation Option Contracts or Qualified Domestic Relations Order Contracts and (b) those life insurance policies reinsured by the Ceding Company (as retrocessionaire) under the Assumed Retrocession Agreements, whether issued prior to, on or after the date hereof (the “Assumed Reinsured Contracts”).

“Reinsured Liabilities” means, collectively, the General Account Liabilities and the Separate Account Liabilities; provided, that in no event shall “Reinsured Liabilities” include any Ceding Company Extra-Contractual Obligations.

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“Reinsured Risks” has the meaning set forth in Section 2.1.

“Reinsurer” has the meaning set forth in the preamble.

“Reinsurer Domiciliary State” means the State of Arizona, or, if the Reinsurer changes its domiciliary state to another state within the United States, such other state.

“Reinsurer Extra-Contractual Obligations” means all Extra-Contractual Obligations that arise out of or relate to (a) any act, error or omission taken by the Ceding Company or any of its Affiliates at the written direction or request or with the written consent of the Reinsurer; or (b) any act, error or omission taken by the Reinsurer or any of its Affiliates.

“Reinsurer Statutory Reserves” means, as of any date of determination, the aggregate statutory reserve (including unearned premium reserves and other premium accruals) amount for the General Account Liabilities ceded hereunder on a funds withheld basis calculated under the Reinsurer Domiciliary State SAP that would be applicable to the Reinsurer (as would be reflected on Line 1, column 1 of the Liabilities section and Exhibit 5 and Line 3, column 1 of the Liabilities section and Exhibit 7 of the Reinsurer’s Statutory Financial Statement (or the equivalent exhibits or lines in the event of changes to the Reinsurer’s Statutory Financial Statement subsequent to December 31, 2022)), as calculated as of such date (without giving effect to any retrocession by the Reinsurer of any Reinsured Risks); provided, however, that “Reinsurer Statutory Reserves” shall (a) exclude NI Modco Accounts Reserves and (b) include statutory reserves for the Reinsured Contracts that are annuity contracts in payout status.

“Representative” of a Person means the directors, officers, employees, advisors, agents, stockholders or other equity holders or investors, consultants, independent accountants, investment bankers, counsel or other representatives of such Person and of such Person’s Affiliates.

“Reserve Credit” means full statutory financial statement credit for the reinsurance ceded to the Reinsurer under this Agreement in the Ceding Company’s Statutory Financial Statements required to be filed by the Ceding Company with the Governmental Authority charged with supervision of insurance companies in the Ceding Company Domiciliary State.

“Reserve Credit Event” means any event that would cause the Ceding Company to not be permitted to receive Reserve Credit in the Ceding Company Domiciliary State.

“Reserve Credit Triggering Event” means that a Reserve Credit Event has occurred and is continuing as of the third (3rd) Business Day prior to the end of the calendar quarter during which such Reserve Credit Event occurred.

“Retrocessionaire” means any Person to whom the Reinsurer retrocedes any of the Reinsured Risks.

“SA Modco Accounts Adjustment” has the meaning set forth in Section 8.1.

“SAP” means, with respect to either Party, the statutory accounting principles prescribed or permitted by the Insurance Regulator for the jurisdiction in which such insurance company is domiciled consistently applied.

“Separate Account Assets” has the meaning set forth in Section 4.5(c).

“Separate Account Charges” has the meaning set forth in Section 3.2(c).

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“Separate Account Liabilities” has the meaning set forth in Section 2.8.

“Separate Account Reserves” means, as of any date of determination, the aggregate amount of statutory reserves of the Ceding Company with respect to the Separate Account Liabilities (as would be described in Line 1, column 1 of the Liabilities section and Exhibit 3 of the Statutory Financial Statements related to Separate Accounts of the Ceding Company (or the equivalent exhibits or lines in the event of changes to the Ceding Company’s Statutory Financial Statement subsequent to December 31, 2022)), calculated in accordance with the Ceding Company Domiciliary State SAP.

“Separate Accounts” means the registered and unregistered insulated separate accounts of the Ceding Company applicable to the Reinsured Contracts. For the avoidance of doubt, the Separate Accounts do not include the NI Modco Accounts.

“Statutory Book Value” means, with respect to any asset held in the Funds Withheld Account or the NI Modco Accounts, the sum of (a) the amount permitted to be carried by the Ceding Company as an admitted asset consistent with SAP applicable to the Ceding Company, consistently applied, plus (b) accrued interest on such assets.

“Statutory Financial Statements” means, with respect to any Person, the annual and quarterly statutory financial statements of such Person filed with the Governmental Authority charged with supervision of such Person.

“Total Adjusted Capital” means, with respect to any U.S. domiciled insurance company, total adjusted capital as calculated in accordance with the applicable Laws of such insurance company’s domiciliary state.

“Transaction IMR Amount” means the amount of the IMR, calculated on an after-tax basis, that is created on the Closing Date as a direct result of the transfer of any investment assets by the Ceding Company to the Reinsurer pursuant to Section 3.1(b)(ii), determined in accordance with SAP applicable to the Ceding Company.

“Unamortized Adjusted Ceding Commission” means an amount determined by recalculating the amount of the Ceding Commission using the same methodologies used for determining the Ceding Commission, but (a) running the calculation as of the Recapture Date rather than the Effective Time and (b) limiting the calculation to the Reinsured Contracts that are the subject of recapture.

“Unamortized FWH IMR Amount” means, with respect to any date of determination, an amount equal to the portion of the FWH IMR Amount which remains unamortized as of such date, determined in accordance with SAP applicable to the Ceding Company.

“Unamortized NI Modco Accounts IMR Amount” means, with respect to any date of determination, an amount equal to the portion of the NI Modco Accounts IMR Amount which remains unamortized as of such date, determined in accordance with SAP applicable to the Ceding Company.

“Uncollected/Deferred Premiums” means, as of any date of determination, the sum of (i) uncollected premiums in the course of collection in respect of the Reinsured Contracts, as of such date, as would be reflected in Line 15.1, column 1 in the “Assets” section of the Ceding Company’s Statutory Financial Statement (or the equivalent exhibits or lines in the event of changes to the Ceding Company’s Statutory Financial Statement subsequent to December 31, 2022), plus (ii) deferred premiums booked but deferred and not yet due in respect of the Reinsured Contracts, as of such date, as would be reflected in Line 15.2, column 1 in the

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“Assets” section of the Ceding Company’s Statutory Financial Statement (or the equivalent exhibits or lines in the event of changes to the Ceding Company’s Statutory Financial Statement subsequent to December 31, 2022).

“Variable Annuity Reinsured Contracts” means the Reinsured Contracts that are variable annuity contracts, whether in pre-payout or payout status.

Article II.

BASIS OF REINSURANCE AND BUSINESS REINSURED

Section 1.1.Coverage. Upon the terms and subject to the conditions and other provisions of this Agreement, as of the Effective Time, the Ceding Company hereby cedes to the Reinsurer, and the Reinsurer hereby agrees to reinsure and indemnify the Ceding Company (a)  on a coinsurance funds withheld basis for the Quota Share of the General Account Liabilities other than the NI Modco Accounts Liabilities and (b) on a modified coinsurance basis for the Quota Share of the Separate Account Liabilities and the NI Modco Accounts Liabilities, in each case, that have not been paid by the Ceding Company prior to the Effective Time (collectively, the “Reinsured Risks”). The reinsurance effective under this Agreement shall be maintained in force, without reduction, unless such reinsurance is terminated or recaptured as provided herein.

Section 1.2.Liability. Subject to the terms and conditions of this Agreement, the Reinsurer’s liability under this Agreement shall attach as of the Effective Time and the Reinsurer’s Liability under this Agreement shall be subject in all respects to the same terms, rates and conditions as the Ceding Company, and, to the same modifications, alterations and cancellations of the Reinsured Contracts as the Ceding Company, the true intent of this Agreement being that the Reinsurer shall, subject to the terms and conditions of this Agreement, follow the fortunes of the Ceding Company with respect to the Reinsured Liabilities.

Section 1.3.Indemnity Reinsurance. Unless and until an Assumed Retrocession Agreement is novated to the Reinsurer or another Affiliate of the Parties, the Ceding Company shall be and shall remain the only Party hereunder that is liable to the reinsured under such Assumed Retrocession Agreement. Unless and until a Reinsured Contract (other than an Assumed Reinsured Contract) becomes a Novated Contract, the Ceding Company shall be and shall remain the only Party hereunder that is liable to any insured, policyholder, claimant or beneficiary under such Reinsured Contract.

Section 1.4.Territory. The territorial limits of this Agreement shall be identical with those of the Reinsured Contracts.

Section 1.5.Reinstatements. If any Reinsured Contract that has lapsed is subsequently reinstated prior to the termination of this Agreement, the reinsurance for such Reinsured Contract under this Agreement shall be reinstated automatically. The Ceding Company shall pay the Reinsurer the Quota Share of all amounts received by the Ceding Company in connection with the reinstatement of such Reinsured Contract.

Section 1.6.Non-Guaranteed Elements. From and after the Closing Date, the Ceding Company shall retain the authority to set and establish all Non-Guaranteed Elements in respect of the Reinsured Contracts. The Ceding Company shall set and establish such Non-Guaranteed Elements in compliance with the terms of the Reinsured Contracts, applicable Law and Actuarial Standards of Practice promulgated by the Actuarial Standard Board governing redetermination of non-guaranteed charges. The Ceding Company shall give the Reinsurer prior written notice of any changes to Non-Guaranteed Elements. For the avoidance of doubt, this Section 2.6 shall not apply to the Assumed Reinsured Contracts.

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Section 1.7.Retrocession.

(a)Except as set forth in Section 2.7(b), the Reinsurer may retrocede all or any of the Reinsured Risks to any Person without the consent of the Ceding Company. For the avoidance of doubt, no retrocession by the Reinsurer of any Reinsured Risks shall relieve the Reinsurer of any of its obligations under this Agreement.

(b)Notwithstanding anything in this Agreement to the contrary, without the prior written consent of the New York Department of Financial Services, the Reinsurer shall not retrocede any of the Reinsured Risks to any reinsurer that is licensed solely as a captive reinsurer in its jurisdiction of domicile so long as, and to the extent that, such retrocession is prohibited by the New York Department of Financial Services.

Section 1.8.Separate Accounts and NI Modco Accounts.

(a)Notwithstanding anything contained in this Agreement to the contrary, for each of the Reinsured Contracts that relate to the Separate Account Liabilities, the amount invested on a variable basis in accordance with the terms of such Reinsured Contracts shall be held by the Ceding Company in the Separate Accounts, and Premiums with respect to such Reinsured Contracts shall be deposited in the Separate Accounts to the extent required to be deposited therein by the terms of such Reinsured Contracts. From and after the Closing Date, the Ceding Company shall retain and own all assets contained in the Separate Accounts and shall hold the Separate Account Reserves with respect to the Reinsured Contracts that are funded, in whole or in part, by one or more of the Separate Accounts and such Separate Account Reserves shall be reported by the Ceding Company on its Separate Account balance sheets, consistent with the Ceding Company Domiciliary State SAP. For each Reinsured Contract that relates to the Separate Account Liabilities, the Reinsurer shall deposit, shall cause to be deposited, or shall transfer to the Ceding Company for deposit any additional amounts required to be deposited into the Separate Accounts after the Closing Date pursuant to the terms of the applicable Reinsured Contract, in each case, except to the extent that such amounts have been previously paid (or provided for) pursuant to the Quarterly Net Settlement,and all amounts to be paid with respect to surrenders, annuitization payments, death benefits, compensation, Separate Account Charges or any other amounts with respect to such Reinsured Contracts that by the terms of such Reinsured Contracts contemplate payment from the Separate Accounts (the “Separate Account Liabilities”) shall be paid out of the Separate Accounts to the extent so contemplated. For the avoidance of doubt, Separate Account Liabilities exclude any Ceding Company Extra-Contractual Obligations.

(b)The Ceding Company shall deposit all premiums in respect of the NI Modco Accounts Reinsured Contracts into the NI Modco Accountsand shall pay all General Account Liabilities with respect to such NI Modco Accounts Reinsured Contracts from the NI Modco Accounts.

Section 1.9.Existing Reinsurance.

(a)From and after the Effective Time, except as otherwise required to comply with applicable Law, the Ceding Company shall not voluntarily amend, terminate or recapture any Existing Reinsurance Agreement or enter into any new reinsurance agreement that would constitute an Existing Reinsurance Agreement with respect to any of the Reinsured Contracts without the Reinsurer’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed.

(b)Any Liabilities ceded under the terms of any Existing Reinsurance Agreement, as shall be terminated or recaptured or as may be reduced or altered to reflect any

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amendment of such Existing Reinsurance Agreement, shall be ceded hereunder to the Reinsurer without any further action, subject to the receipt by the Reinsurer of any reinsurance recoveries resulting from any such termination or recapture, including any reserve transfer or similar transfer or settlement amount, received by the Ceding Company from the applicable reinsurer and any amounts released to the Ceding Company from funds withheld accounts, modified coinsurance accounts or otherwise. The Reinsurer shall pay the applicable portion of any resulting special transfer or recapture fee incurred by the Ceding Company as provided for under the terms of the recapture or termination agreements or instruments for such Existing Reinsurance Agreements.

Article III.

PAYMENTS; ADDITIONAL CONSIDERATION

Section 1.1.Initial Reinsurance Premium.

(a)As initial consideration for the Reinsurer entering into this Agreement (the “Initial Premium”), the Reinsurer shall be entitled to an amount equal to the sum of:

(i)100% of the Ceding Company Statutory Reserves to the extent proscribed by New York Regulation 213 or New York Regulation 147, as applicable, as of the Effective Time, [***]

(ii)[***], plus

(iii)the FWH Existing IMR Amount, plus

(iv)the Transaction IMR Amount, minus

(v)the Policy Loan Balance as of the Effective Time, minus

(vi)the amount of Uncollected/Deferred Premiums as of the Effective Time.

(b)On the Closing Date, the Ceding Company shall (i) deposit into or otherwise allocate to the Funds Withheld Account, cash and Eligible Assets that have a Statutory Book Value as of the end of the Business Day immediately prior to the Closing Date equal to the Ceding Company’s estimate of the FWH Required Balance as of the Effective Time (the “Estimated Initial FWH Required Balance”) and (ii) transfer to the Reinsurer cash and investment assets reasonably acceptable to the Reinsurer having an aggregate Fair Market Value equal to the amount by which (A) the Ceding Company’s estimate of the Initial Premium (the “Estimated Initial Premium”) exceeds (B) the sum of (x) the Estimated Initial FWH Required Balance, plus (y) the amount of any excess assets the Reinsurer elects to retain in the Funds Withheld Account pursuant to Section 6.3. In addition, the Ceding Company shall at all times allocate to the Funds Withheld Account the outstanding policy loans on the Reinsured Contracts.

(c)On the Closing Date, the Ceding Company shall deposit into or otherwise allocate to the NI Modco Accounts, cash and Eligible Assets that have a Statutory Book Value as of the end of the Business Day immediately prior to the Closing Date equal to the Ceding Company’s estimate of the NI Modco Accounts Required Balance as of the Effective Time (the “Estimated Initial NI Modco Accounts Required Balance”).

(d)On the Closing Date, the Parties will record on their respective books and records an initial modco reserve adjustment equal to the Separate Account Liabilities as of the Effective Time.

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(e)No later than ninety (90) days following the Closing Date, the Ceding Company and the Reinsurer shall agree on the actual calculation of the Initial Premium and the FWH Required Balance as of the Effective Time (the “Initial FWH Required Balance”), and make any necessary adjustments to the Funds Withheld Account and the payment to the Reinsurer pursuant to Section 3.1(b)(ii) to reflect any difference between the Parties’ calculation of the (i) Estimated Initial FWH Required Balance and the Initial FWH Required Balance (but only to the extent such difference has not been addressed pursuant to Section 6.4) and (ii) the Estimated Initial Premium and the actual Initial Premium.

(f)No later than ninety (90) days following the Closing Date, the Ceding Company and the Reinsurer shall agree on the actual calculation of the NI Modco Accounts Required Balance as of the Effective Time (the “Initial NI Modco Accounts Required Balance”), and make any necessary adjustments to the NI Modco Accounts to reflect any difference between the Parties’ calculation of the Estimated Initial NI Modco Accounts Required Balance and the Initial NI Modco Accounts Required Balance (but only to the extent such difference has not been addressed pursuant to Section 7.3).

Section 1.2.Additional Consideration. As additional consideration for the Reinsurer entering into this Agreement, the Reinsurer shall be entitled to the Quota Share of (a) with respect to the Assumed Reinsured Contracts, all amounts collected by the Ceding Company under the Assumed Retrocession Agreements and (b) with respect to all other Reinsured Contracts, the following amounts received at or after the Effective Time by the Ceding Company (collectively, the “Additional Consideration”):

(a)Premiums;

(b)(i) mortality and expense risk charges, administrative expense charges, rider charges, contract maintenance charges, back-end sales loads, surrender charges and other considerations billed separately for the Reinsured Contracts collected or collectible by the Ceding Company, and any other charges, fees, and similar amounts received or receivable by the Ceding Company from the Separate Accounts with respect to the Reinsured Contracts, and (ii) all other amounts that are transferrable between the Separate Accounts and the general account of the Ceding Company in respect of the Reinsured Contracts; and

(c) (i) all revenue sharing fees, service fees, distribution fees and other amounts received by the Ceding Company from or in respect of any mutual fund organization’s mutual funds as funding vehicles to the extent attributable to the Reinsured Contracts, including amounts received pursuant to a plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, and (ii) all other amounts received by the Ceding Company with respect to the Reinsured Contracts (other than with respect to Ceding Company Extra-Contractual Obligations) (amounts in clauses (i) and (ii), collectively, the “Separate Account Charges”).

Section 1.3.Net Settlement.

(a)During the term of this Agreement, a settlement amount between the Ceding Company (including on behalf of NI Modco Accounts and the Separate Accounts) and the Reinsurer as of the last day of each Quarterly Accounting Period (the “Quarterly Net Settlement”) shall be calculated by the Ceding Company, and a statement setting forth details of such calculation (the “Quarterly Settlement Statement”) in the form attached as Exhibit 1 or as otherwise agreed between the Parties shall be delivered by the Ceding Company to the Reinsurer no later than twenty (20) Business Days following the end of such Quarterly Accounting Period. If the amount of the Quarterly Net Settlement for such Quarterly Accounting Period is positive, the Ceding Company (including on behalf of NI Modco Accounts and the Separate Accounts)

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shall pay such amount in cash to the Reinsurer within five (5) Business Days of its delivery of the final Quarterly Settlement Statement for such period to the Reinsurer. If the amount of the Quarterly Net Settlement for such Quarterly Accounting Period is negative, the Reinsurer shall pay the absolute value of such amount in cash to the Ceding Company within five (5) Business Days of its receipt of the final Quarterly Settlement Statement for such period. At any time, the Ceding Company and the Reinsurer may agree to implement more frequent net settlements under this Agreement without any further action by the Parties.

(b)The Quarterly Net Settlement with respect to each of (i) the NI Modco Accounts Reinsured Contracts and (ii) all other Reinsured Contracts for any Quarterly Accounting Period shall be an amount equal to the following, as applicable:

(i)the Quota Share of the Additional Consideration in respect of the Reinsured Contracts received by the Ceding Company during such Quarterly Accounting Period; minus

(ii)the Quota Share of the Reinsured Liabilities in respect of the Reinsured Contracts paid by the Ceding Company during such Quarterly Accounting Period; minus

(iii)the Expense Allowances in respect of the Reinsured Contracts for such Quarterly Accounting Period; plus

(iv)the NI Modco Accounts Reserve Adjustment for such Quarterly Accounting Period as described in Section 7.2; plus

(v)the SA Modco Accounts Adjustment with respect to such Quarterly Accounting Period as described in Section 8.1.

(c)In addition, following the settlement of the Quarterly Net Settlement for each Quarterly Accounting Period pursuant to Section 3.3(a), the Funds Withheld Reserves Adjustment with respect to each Quarterly Accounting Period shall also be paid in accordance with Section 6.4.

Section 1.4.Delayed Payments. If there is a delayed settlement of any payment due hereunder, interest will accrue on such overdue payment at the Interest Rate until settlement is made. For purposes of this Section 3.4, a payment will be considered overdue, and such interest will begin to accrue, on the first day immediately following the date such payment is due. For greater clarity, a payment shall be deemed to be due hereunder on the last date on which such payment may be timely made under the applicable provision.

Section 1.5.Defenses. The Reinsurer accepts, reinsures and assumes the Reinsured Risks subject to any and all defenses, set-offs and counterclaims to which the Ceding Company would be entitled with respect to the Reinsured Risks, it being expressly understood and agreed to by the Parties hereto that no such defenses, set-offs, or counterclaims are or shall be waived by the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby and that the Reinsurer is and shall be fully subrogated in and to all such defenses, set-offs and counterclaims.

Section 1.6.Offset. Except as otherwise provided under applicable Law, any undisputed debits or credits incurred between the Parties on and after the Effective Time in favor of or against either the Ceding Company or the Reinsurer with respect to this Agreement are deemed mutual debits or credits, as the case may be, and shall be set off or recouped, and only the net balance shall be allowed or paid. In the event of any liquidation, insolvency, rehabilitation, conservatorship or

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comparable proceeding by or against the Ceding Company or the Reinsurer, the rights of offset and recoupment set forth in this Section 3.6 shall apply to the fullest extent permitted by applicable Law.

Section 1.7.Premium Taxes. For each Quarterly Accounting Period, the Parties shall cooperate and provide the other with information regarding Premium Taxes which is reasonably necessary to calculate the Quarterly Net Settlement.

Section 1.8.Reports from the Reinsurer.

(a)Each calendar quarter, the Reinsurer shall provide to the Ceding Company, by the relevant Capital Reporting Deadline, a calculation of the RBC Ratio of the Reinsurer as of the last day of the immediately preceding calendar quarter, (x) with respect to quarters other than the last quarter of a calendar year, based on the Reinsurer’s good faith estimate using, to the extent any factors are not reasonably available, amounts based on reasonable estimation and annualization and (y) with respect to the last quarter of a calendar year, as calculated by the Reinsurer. In addition, if the RBC Ratio of the Reinsurer as of any calendar quarter-end is below the amount described in clause (a) or clause (b), as applicable, of the definition of “FMV Triggering Event” herein and has been cured, the Reinsurer shall provide to the Ceding Company evidence that such shortfall has been cured by the applicable Capital Reporting Deadline. Each such calculation shall include reasonable supporting detail with respect to such calculation.

(b)Each calendar quarter, the Reinsurer shall cause each Affiliate Retrocessionaire to provide to the Ceding Company, by the relevant Capital Reporting Deadline, a calculation of the RBC Ratio of such Affiliate Retrocessionaire (or equivalent capital adequacy ratio of such Affiliate Retrocessionaire as mutually agreed by the Parties) as of the last day of the immediately preceding calendar quarter, (x) with respect to quarters other than the last quarter of a calendar year, based on the Affiliate Retrocessionaire’s good faith estimate using, to the extent any factors are not reasonably available, amounts based on reasonable estimation and annualization and (y) with respect to the last quarter of a calendar year, as calculated by the Affiliate Retrocessionaire. In addition, if the RBC Ratio of any Affiliate Retrocessionaire as of any calendar quarter-end is below the amount described in clause (a) or clause (b), as applicable, of the definition of “FMV Triggering Event” herein and has been cured, the Reinsurer shall provide to the Ceding Company evidence that such shortfall has been cured by the applicable Capital Reporting Deadline. Each such calculation shall include reasonable supporting detail with respect to such calculation.

(c)The Reinsurer shall provide written notice to the Ceding Company of the occurrence of any FMV Triggering Event or Recapture Triggering Event within two (2) Business Days after it becomes aware of such occurrence. In addition, the Reinsurer shall cooperate fully with the Ceding Company and promptly respond to the Ceding Company’s reasonable inquiries from time to time concerning the determination of whether a FMV Triggering Event or Recapture Triggering Event has occurred or is likely to occur.

(d)At the Ceding Company’s request, the Reinsurer shall provide to the Ceding Company (i) a copy of the Reinsurer’s annual and quarterly Statutory Financial Statement and a copy of its annual audited Statutory Financial Statements, along with the audit report thereon and (ii) for each Affiliate Retrocessionaire to which the Reinsurer retrocedes any portion of the Reinsured Risks, a copy of the annual and quarterly Statutory Financial Statements and a copy of the annual audited Statutory Financial Statements of such Affiliate Retrocessionaires, along with the audit report thereon (or comparable financial statements if the Affiliate Retrocessionaire is a non-U.S. insurer).

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(e)At the Ceding Company’s reasonable request, the Reinsurer shall meet with the Ceding Company and its Representatives upon reasonable notice and during business hours and for a reasonable period of time (but no more than once per calendar quarter in the absence of the continuation of a FMV Triggering Event), and, subject to applicable Law, will provide to the Ceding Company additional financial and operational materials, as well as access to the Reinsurer’s senior financial officers, provided such access shall not unreasonably interfere with the conduct of the business of the Reinsurer, designed to provide to the Ceding Company a comprehensive perspective on (i) the Reinsurer’s or any Affiliate Retrocessionaire’s then-current financial condition and continuing creditworthiness, and (ii) the Reinsurer’s risk management policy. Nothing herein shall (x) require the Reinsurer to disclose any information to the Ceding Company or its Representatives if such disclosure would jeopardize any attorney-client privilege, the work product immunity or any other legal privilege or similar doctrine or contravene any applicable Law or any contract (including any confidentiality agreement to which the Reinsurer or any of its Affiliates is a party); it being understood that the Reinsurer shall use its reasonable best efforts to enable such information to be furnished or made available to the Ceding Company or its Representatives without so jeopardizing privilege or contravening such applicable Law (including redacting information or entering into joint defense agreements with the Ceding Company on mutually agreeable terms) or (y) require the Reinsurer to disclose its Tax records or any personnel or related records (except with respect to Premium Taxes and other Taxes expressly covered by this Agreement).

(f)For purposes of any report or other item required to be delivered during the continuation of a FMV Triggering Event, such report or other items shall also be required to be delivered during the continuation of a Recapture Triggering Event.

Article IV.
ADMINISTRATION

Section 1.1.Administration.

(a)Subject to Section 4.1(c), the Ceding Company shall remain responsible for the administration of the Reinsured Contracts, the Assumed Retrocession Agreements and the Existing Reinsurance Agreements. The Ceding Company may subcontract or assign such responsibility so long as the Ceding Company remains liable to the Reinsurer for the acts of any such subcontractor or assignee as if the Ceding Company was performing such administration itself. A subcontractor or assignee can either be an Affiliate of the Ceding Company or a third party.

(b)The Ceding Company shall have full authority to determine liability on any Reinsured Liabilities reinsured hereunder and may pay or settle such liabilities as it deems appropriate.

(c)Upon the novation of any Reinsured Contract or an Assumed Retrocession Agreement in accordance with Section 4.5, the Ceding Company shall cease to have any responsibility to administer such Novated Contract or Assumed Retrocession Agreement, and the applicable Novating Reinsurer shall assume responsibility for such administration.

Section 1.2.Performance Standards. The Ceding Company shall administer, or shall cause to be administered, the Reinsured Contracts (i)  with the skill, diligence and expertise that would reasonably be expected from experienced and qualified personnel performing such duties in like circumstances; (ii) using a standard of care and policies and procedures generally that are, in the aggregate, at least as stringent as that employed by the Ceding Company to administer its other

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similar businesses, and (iii) in all material respects in accordance with the terms and conditions of the Reinsured Contracts and applicable Laws.

Section 1.3.Administrative Expense Allowance. For each Quarterly Accounting Period, the Reinsurer shall pay to the Ceding Company an amount equal to the Expense Allowances for such Quarterly Accounting Period in consideration for the administration of the Reinsured Contracts. Such amount shall be paid as part of the Quarterly Net Settlements pursuant to Section 3.3(a).

Section 1.4.Books and Records and Access. Each of the Ceding Company and the Reinsurer shall maintain its respective Books and Records relating to the Reinsured Contracts. During the term of this Agreement, upon any reasonable request from the Reinsurer or its Representatives, the Ceding Company shall (i) provide to the Reinsurer and its Representatives reasonable access during normal business hours to the Ceding Company’s Books and Records pertaining to the Reinsured Contracts, the Reinsured Liabilities, this Agreement or the Reinsurer’s rights hereunder, provided such access shall not unreasonably interfere with the conduct of the business of the Ceding Company, (ii) permit the Reinsurer and its Representatives to inspect, photocopy and audit copies of such Books and Records at their own cost, including as pertains to the payment of Reinsured Liabilities and the administration of the Reinsured Contracts and (iii) make available to the Reinsurer its personnel knowledgeable with respect thereto to facilitate such inspection and audit. In furtherance of the foregoing, at the Reinsurer’s reasonable request, the Ceding Company shall meet with the Reinsurer and its Representatives upon reasonable notice and during business hours and for a reasonable period of time (but no more than once per calendar quarter) to discuss the Ceding Company’s administration of the Reinsured Contracts. Nothing herein shall (x) require the Ceding Company to disclose any information to the Reinsurer or its Representatives if such disclosure would jeopardize any attorney-client privilege, the work product immunity or any other legal privilege or similar doctrine or contravene any applicable Law or any contract (including any confidentiality agreement to which the Ceding Company or any of its Affiliates is a party); it being understood that the Ceding Company shall use its reasonable best efforts to enable such information to be furnished or made available to the Reinsurer or its Representatives without so jeopardizing privilege or contravening such applicable Law (including redacting information or entering into joint defense agreements with the Reinsurer on mutually agreeable terms) or (y) require the Ceding Company to disclose its tax records or any personnel or related records (except with respect to Premium Taxes and other taxes expressly covered by this Agreement).

Section 1.5.Novation.

(a)Following the date hereof but no later than three years from the date hereof, the Parties shall use reasonable best efforts to obtain all required approvals from and make all required filings with all Governmental Authorities and policyholders to effectuate a novation of those Reinsured Contracts selected by the Parties and agreed to by the New York Department of Financial Services (other than the Assumed Reinsured Contracts) to the Reinsurer or another Affiliate of the Parties (as applicable, the “Novating Reinsurer”). The Parties shall, and shall cause the Novating Reinsurer to, use their commercially reasonable efforts to (i) submit a proposed Assumption Reinsurance Agreement to the domiciliary state insurance departments of the applicable parties in 2023 or as soon thereafter as reasonably practicable, with subsequent filings to all other states as soon as reasonably practicable following receipt of approvals from the domiciliary states and (ii) complete the provision of initial notice of the proposed novation to all relevant policyholders of Reinsured Contracts subject to the novation process by the third anniversary of the date of this Agreement.

(b)Following the date hereof but no later than three years from the date hereof, the Parties shall use reasonable best efforts to novate each of the Assumed Retrocession Agreements to a Novating Reinsurer.

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(c)In connection with each novation of a Reinsured Contract or Assumed Retrocession Agreement, subject to the Reinsurer’s election to retain excess assets in the Funds Withheld Account pursuant to Section 6.3, the Ceding Company shall transfer to the Novating Reinsurer, from funds in the Funds Withheld Account or the NI Modco Accounts, as applicable, cash and/or Eligible Assets selected by the Reinsurer having an aggregate Statutory Book Value equal to the calculation of the Funds Withheld Account Balance or NI Modco Accounts Balance, as applicable, but calculated solely with respect to such Novated Contracts or Assumed Retrocession Agreement, as applicable, as of the effective time of the novation. In addition, the Ceding Company shall transfer to the Novating Reinsurer all of its right, title and interest in and to the Policy Loan Balances with respect to such Novated Contacts or Assumed Retrocession Agreements, as applicable, as of the effective time of the novation through accounting transfers and other assets, if any, held by the Ceding Company that are attributable to such Novated Contracts or Assumed Retrocession Agreements, as applicable. Following the payments described in this Section 4.5(c), the FWH Required Balance and the NI Modco Accounts Required Balance, as applicable, will be adjusted to reflect the novation of the applicable Reinsured Contracts and Assumed Retrocession Agreements and the removal of such contracts and agreements from coverage under this Agreement.

(d)In connection with each novation of a Reinsured Contract, on the date during which the applicable effective time of novation for such Novated Contracts occurs, the Ceding Company shall transfer to the Novating Reinsurer all of its right, title and interest in and to any and all cash and assets allocable to the applicable Novated Contracts standing to the credit of the Separate Accounts (the “Separate Account Assets”) by transferring such Separate Account Assets into corresponding separate accounts of the Novating Reinsurer (the “Novating Reinsurer Separate Accounts”). Fund shares attributable to each Novated Contract held by the Separate Accounts shall be transferred from the applicable Separate Account to the applicable Novating Reinsurer Separate Account as of the close of the Business Day on the date during which the effective time of novation for such Novated Contracts occurs or as of the close of the next Business Day if the effective time of novation occurs on a non-Business Day. Such transfers of Fund shares shall be made in accordance with the terms of each applicable Fund participation agreement and applicable Law. The Parties will use commercially reasonable efforts to effect such transfer by book entry on the shareholder records of each applicable Fund.

Article V.

LICENSES; RESERVE CREDIT

Section 1.1.Licenses; Reserve Credit. At all times during the term of this Agreement, the Reinsurer shall (a) use its reasonable best efforts to hold and maintain its reciprocal jurisdiction status in the Ceding Company Domiciliary State and (b) take all other actions necessary so that the Ceding Company may receive Reserve Credit. Should the Reinsurer fail to maintain such status, the Reinsurer shall, at its own expense, take all steps necessary so as to permit the Ceding Company to obtain Reserve Credit no later than the third (3rd) Business Day prior to the end of the calendar quarter during which such event occurred.

Article VI.

FUNDS WITHHELD ACCOUNT

Section 1.1.Funds Withheld Account.

(a)On the Closing Date, the Ceding Company shall establish on its books and records a funds withheld account (the “Funds Withheld Account”) and transfer to or otherwise allocate to the Funds Withheld Account the assets described in Section 3.1(b)(i), and thereafter,

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shall maintain the Funds Withheld Account with Eligible Assets having a Statutory Book Value equal to the FWH Required Balance determined as often as agreed by the Parties but no less frequently than quarterly in accordance with this Agreement. The Ceding Company will retain, control and own all assets in the Funds Withheld Account. The Parties agree that the retention of the assets in the Funds Withheld Account by the Ceding Company in the Funds Withheld Account is not intended in any way to diminish or dilute the investment risk transferred to the Reinsurer through the calculation of the investment results of the assets in the Funds Withheld Account. The Ceding Company shall record the Funds Withheld Account Balance on its statutory financial statements as a payable to the Reinsurer. All investment income (including interest and principal payments, dividends, income on Hedges and realized gains from sales) received on assets held in the Funds Withheld Account shall be deposited and maintained in Eligible Assets in the Funds Withheld Account, thereby increasing the Funds Withheld Account Balance. In addition, the calculation of the Statutory Book Value of equity securities and Hedges held in the Funds Withheld Account shall include unrealized gains and losses on such equity securities and Hedges.

(b)The Ceding Company shall cause the investment results of the assets in the Funds Withheld Account to be determined independently of the investment results of the Ceding Company’s other assets, including the assets of any other segregated account.

Section 1.2.Withdrawals from the Funds Withheld Account. The Ceding Company and the Reinsurer agree that the assets maintained in the Funds Withheld Account may be withdrawn by the Ceding Company at any time, notwithstanding any other provisions of this Agreement, and shall be utilized and applied by the Ceding Company or any successor by operation of law of the Ceding Company, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company, without diminution because of insolvency on the part of the Ceding Company or Reinsurer only for the following purposes:

(i)to reimburse the Ceding Company for the Reinsurer’s share of premiums returned to the owners of the Reinsured Contracts on account of cancellations of such Reinsured Contracts;

(ii)to reimburse the Ceding Company for the Reinsurer’s share of surrenders and benefits or losses paid by the Ceding Company pursuant to the provisions of the Reinsured Contracts;

(iii)to reimburse the Ceding Company for any expenses incurred by the Ceding Company in managing the assets in the Funds Withheld Account in accordance with Section 6.6;

(iv)to pay General Account Liabilities other than with respect to NI Modco Accounts Reinsured Contracts;

(v)to fund or reimburse the Ceding Company for the settling of trades or other direct acquisition costs incurred by the Ceding Company in respect of the Hedges;

(vi)to fund scheduled payments, interest on cash collateral received from Hedge counterparties, if any, and any other payment obligations under the Hedges; and

(vii)to pay any other amounts the Ceding Company claims are due under this Agreement.

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The Ceding Company shall return to the Funds Withheld Account within five (5) Business Days of withdrawal, assets withdrawn in excess of all amounts permitted under this Section 6.2. Any excess amount shall at all times be held by the Ceding Company (or any successor by operation of law of the Ceding Company, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company) for the benefit of the Reinsurer and be maintained for the sole purpose of funding the payments and reimbursements described in this Section 6.2.

Section 1.3.Calculation of Funds Withheld Reserves Adjustment. As of the end of each Quarterly Accounting Period, the Ceding Company will determine the amount of the Funds Withheld Reserves Adjustment, which adjustment shall be calculated as (a) minus (b) (the “Funds Withheld Reserves Adjustment”), which amount shall be reported as a component of the Quarterly Settlement Statement, where:

(a)equals the FWH Required Balance as of the end of the Quarterly Accounting Period; and

(b)equals the Statutory Book Value of the Eligible Assets on deposit in or otherwise allocated to the Funds Withheld Account at the end of the Quarterly Accounting Period;

provided, that at any time and from time to time, upon notice to the Ceding Company, the Reinsurer could elect to retain excess assets in the Funds Withheld Account. In such event, the Funds Withheld Reserve Adjustment will be adjusted by the amount of excess assets that the Reinsurer has elected to retain in the Funds Withheld Account until such time as the Reinsurer elects to withdraw such excess assets or change the amount of excess assets it elects to retain in the Funds Withheld Account. For the avoidance of doubt, the Funds Withheld Reserves Adjustment may be positive or negative. When calculating the Statutory Book Value of Eligible Assets on deposit or otherwise allocated to the Funds Withheld Account, (i) any cash withdrawn from the Funds Withheld Account to satisfy collateral requirements contemplated in Section 9.1(b) shall continue to be included in the calculation as an asset of the Funds Withheld Account and (ii) the Fair Market Value of the Hedges shall be included in the calculation.

Section 1.4.Funds Withheld Reserves Adjustment. Within five (5) Business Days following the Ceding Company’s delivery of each Quarterly Settlement Statement, the Funds Withheld Reserves Adjustment in respect of the applicable Quarterly Accounting Period shall be paid as follows:

(a)if the Funds Withheld Reserves Adjustment as shown on the Quarterly Settlement Statement is a positive amount, (A) the Reinsurer shall deliver cash or Eligible Assets with a Fair Market Value equal to the Funds Withheld Reserves Adjustment to the Funds Withheld Account or to the Ceding Company and (B) if delivered to the Ceding Company, the Ceding Company shall promptly deposit such cash or Eligible Assets into the Funds Withheld Account; and

(b)if the Funds Withheld Reserves Adjustment as shown on the Quarterly Settlement Statement is a negative amount, the Ceding Company shall withdraw from the Funds Withheld Account cash or, at the direction of Reinsurer, Eligible Assets with a Statutory Book Value equal to the absolute value of such Funds Withheld Reserves Adjustment and deliver such cash or assets to the Reinsurer, subject to the Reinsurer’s election to retain excess assets in the Funds Withheld Account pursuant to Section 6.3.

Section 1.5.Funds Withheld Account Eligible Assets. The assets that may be held in the Funds Withheld Account shall consist of cash or investments of the type consistent with the requirements for authorized investments and admitted assets under the insurance laws of the Ceding

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Company Domiciliary State; provided, that at all times, (a) each such investment that is a security is issued by an institution that is not the parent, subsidiary or Affiliate of either the Reinsurer or the Ceding Company and (b) such investments, together with the Eligible Assets in the NI Modco Accounts, comply with the Investment Guidelines set forth in Schedule B (the assets meeting the requirements of this sentence being the “Eligible Assets”).

Section 1.6.Funds Withheld Account Investment Management.

(a)The Ceding Company shall manage, or shall cause to be managed, the assets in the Funds Withheld Account. All investment expenses of the Ceding Company in managing such assets shall be paid by the Reinsurer either directly by the Reinsurer or by the Ceding Company’s withdrawal of such expenses from the Funds Withheld Account. The Ceding Company shall only allocate such investment expenses to the Reinsurer to the extent such expenses relate directly to the assets in the Funds Withheld Account.

(b)The Ceding Company and the Reinsurer shall cooperate reasonably to give effect to any proposal by the Reinsurer to substitute one or more assets in the Funds Withheld Account for one or more Eligible Assets owned by the Reinsurer, having the same or higher Fair Market Value as such substituted assets. In addition, the Ceding Company and the Reinsurer shall cooperate reasonably to give effect to any proposal by the Reinsurer or the Ceding Company to substitute one or more assets in the Funds Withheld Account for one or more Eligible Assets owned by the Ceding Company outside of the Funds Withheld Account having the same or higher Statutory Book Value as such substituted assets and a Fair Market Value at least equal to [***]% of such substituted assets. [***]

(c)In furtherance of the Ceding Company’s investment management of the assets in the Funds Withheld Account, the Ceding Company shall be permitted to pledge assets in the Funds Withheld Account to satisfy collateral obligations under Federal Home Loan Bank funding agreements or similar borrowing agreements entered into by the Ceding Company, provided that all net profits and losses of the Ceding Company from the use of such borrowed funds shall inure to the benefit of the Funds Withheld Account. In addition, all interest and other income received in respect of such collateral shall be deposited into the Funds Withheld Account.

Article VII.

NI MODCO ACCOUNTS

Section 1.1.NI Modco Accounts.

(a)From and after the Closing Date, the Ceding Company shall maintain the NI Modco Accounts with Eligible Assets having a Statutory Book Value equal to the NI Modco Accounts Required Balance determined as often as agreed by the Parties but no less frequently than quarterly in accordance with this Agreement. The Ceding Company will retain, control and own all assets in the NI Modco Accounts. The Parties agree that the retention of the assets in the NI Modco Accounts by the Ceding Company in the NI Modco Accounts is not intended in any way to diminish or dilute the investment risk transferred to the Reinsurer through the calculation of the investment results of the assets in the NI Modco Accounts. All investment income (including interest and principal payments, dividends, income on Hedges and realized gains from sales) received on assets held in the NI Modco Accounts shall be deposited and maintained in Eligible Assets in the NI Modco Accounts, thereby increasing the NI Modco Accounts Balance. In addition, the calculation of the Statutory Book Value of equity securities and Hedges held in the NI Modco Accounts shall include unrealized gains and losses on such equity securities and Hedges.

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(b)The Ceding Company shall cause the investment results of the assets in the NI Modco Accounts to be determined independently of the investment results of the Ceding Company’s other assets, including the assets of any other segregated account.

Section 1.2.Calculation of NI Modco Accounts Reserves Adjustment. As of the end of each Quarterly Accounting Period, the Ceding Company will determine the amount of the NI Modco Accounts Reserves Adjustment, which adjustment shall be calculated as (a) minus (b) plus (c) (the “NI Modco Accounts Reserves Adjustment”), which amount shall be reported as a component of the Quarterly Settlement Statement, where:

(a)

(a)equals the NI Modco Accounts Required Balance as of the end of the prior Quarterly Accounting Period to which the Quarterly Settlement Statement relates; and

(b)equals the NI Modco Accounts Required Balance as of the end of the Quarterly Accounting Period to which the Quarterly Settlement Statement relates; and

(c)equals the sum of all investment income (loss) in respect of assets in the NI Modco Accounts for such Quarterly Accounting Period;

provided, that at any time and from time to time, upon notice to the Ceding Company, the Reinsurer could elect to retain excess assets in the NI Modco Accounts. In such event, the NI Modco Accounts Reserve Adjustment will be adjusted by the amount of excess assets that the Reinsurer has elected to retain in the NI Modco Accounts until such time as the Reinsurer elects to withdraw such excess assets or change the amount of excess assets it elects to retain in the NI Modco Accounts. For the avoidance of doubt, the NI Modco Accounts Reserves Adjustment may be positive or negative. When calculating the Statutory Book Value of Eligible Assets on deposit or otherwise allocated to the NI Modco Accounts, (i) any cash withdrawn from the NI Modco Accounts to satisfy collateral requirements contemplated in Section 9.1(b) shall continue to be included in the calculation as an asset of the NI Modco Accounts and (ii) without duplication of the Fair Market Value of Hedges included in the calculation of the Funds Withheld Account Balance, the Fair Market Value of the Hedges shall be included in the calculation.

Section 1.3.NI Modco Accounts Reserves Adjustment. The NI Modco Accounts Reserves Adjustment in respect of each Quarterly Accounting Period shall be settled in accordance with Section 3.3.

Section 1.4.NI Modco Accounts Eligible Assets. The assets that may be held in the NI Modco Accounts shall consist of Eligible Assets.

Section 1.5.NI Modco Accounts Investment Management.

(a)The Ceding Company shall manage, or shall cause to be managed, the assets in the NI Modco Accounts. All investment expenses of the Ceding Company in managing such assets shall be paid by the Reinsurer either directly by the Reinsurer or by the Ceding Company’s withdrawal of such expenses from the NI Modco Accounts. The Ceding Company shall only allocate such investment expenses to the Reinsurer to the extent such expenses relate directly to the assets in the NI Modco Accounts.

(b)The Ceding Company and the Reinsurer shall cooperate reasonably to give effect to any proposal by the Reinsurer to substitute one or more assets in the NI Modco Accounts for one or more Eligible Assets owned by the Reinsurer, having the same or higher

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Fair Market Value as such substituted assets. In addition, the Ceding Company and the Reinsurer shall cooperate reasonably to give effect to any proposal by the Reinsurer or the Ceding Company to (i) substitute one or more assets in the NI Modco Accounts for one or more Eligible Assets owned by the Ceding Company outside of the NI Modco Accounts and the Funds Withheld Account having the same or higher Statutory Book Value as such substituted assets and a Fair Market Value at least equal to [***]% of such substituted assets or (ii) substitute one or more assets in the NI Modco Accounts for one or more Eligible Assets owned by the Ceding Company in the Funds Withheld Account having the same or higher Statutory Book Value as such substituted assets.

(c)In furtherance of the Ceding Company’s investment management of the assets in the NI Modco Accounts, the Ceding Company shall be permitted to pledge assets in the NI Modco Accounts to satisfy collateral obligations under Federal Home Loan Bank funding agreements or similar borrowing agreements entered into by the Ceding Company, provided that all net profits and losses of the Ceding Company from the use of such borrowed funds shall inure to the benefit of the NI Modco Accounts. In addition, all interest and other income received in respect of such collateral shall be deposited into the NI Modco Accounts.

Article VIII.

SA MODCO ACCOUNTS

Section 1.1.Calculation of SA Modco Accounts Adjustment. As of the end of each Quarterly Accounting Period, the Ceding Company will determine the amount of the SA Modco Accounts Adjustment, which adjustment shall be calculated as (a) minus (b) plus (c) (the “SA Modco Accounts Adjustment”), which amount shall be reported as a component of the Quarterly Settlement Statement, where:

(a)equals the Separate Account Liabilities as of the end of the prior Quarterly Accounting Period to which the Quarterly Settlement Statement relates; and

(b)equals the Separate Account Liabilities as of the end of the Quarterly Accounting Period to which the Quarterly Settlement Statement relates; and

(c)equals the sum of all investment income (loss) in respect of assets in the Separate Accounts for such Quarterly Accounting Period.

Section 1.2.SA Modco Accounts Reserves Adjustment. The SA Modco Accounts Adjustment in respect of each Quarterly Accounting Period shall be settled in accordance with Section 3.3.

.

Article IX.

HEDGING

Section 1.1.Hedging.

(a) In accordance with Schedule H-1 with respect to the Funds Withheld Account and Schedule H-2 with respect to the NI Modco Accounts (collectively, the “Hedging Guidelines”), the Ceding Company has and shall purchase derivatives to hedge certain risks associated with the Reinsured Contracts (the “Hedges”). Such Hedges shall be at the expense and for the benefit of the Reinsurer.

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(b)For liquidity management purposes, the Ceding Company shall be permitted to pledge cash and securities in the Funds Withheld Account and NI Modco Accounts to satisfy some or all of the Ceding Company’s requirements to post initial or variation margin to derivative counterparties in respect of hedges held by the Ceding Company, including the Hedges; provided that all interest and other income received in respect of such cash or securities is deposited into the Funds Withheld Account or NI Modco Accounts from which such cash or securities is pledged.

Article X.

OVERSIGHTS; COOPERATION

Section 1.1.Oversights. Inadvertent delays, oversights, errors or omissions made in connection with this Agreement or any transaction hereunder shall not relieve either Party from any liability that would have attached had such delay, oversight, error or omission not occurred. The Parties shall nevertheless cooperate in good faith to rectify such delay, oversight, error or omission as soon as possible after discovery so that both Parties shall be restored as closely as possible to the positions they would have occupied if no delay, oversight, error or omission had occurred.

Section 1.2.Cooperation. The Ceding Company and the Reinsurer shall cooperate with each other in order to accomplish the objectives of this Agreement by furnishing additional information and executing and delivering any additional documents as may be reasonably requested by the other to further perfect or evidence the consummation of, or otherwise implement, any transaction contemplated by this Agreement, or to aid in the preparation of any regulatory filing or financial statement; provided, however, that any such additional documents must be reasonably satisfactory to each Party and not impose upon either Party any material liability, risk, obligation, loss, cost or expense not contemplated by this Agreement.

Section 1.3.Changes to RBC.In the event of a material change to or elimination by applicable Law of the requirement for the Reinsurer or any Affiliate Retrocessionaire, as applicable, to calculate risk-based capital or in the event there is a material change relating to the framework, factors and/or formulae prescribed by the insurance regulatory authority in the Reinsurer’s or such Affiliate Retrocessionaire’s jurisdiction of domicile that are used to calculate RBC Ratios (or, in the event that an Affiliate Retrocessionaire is not a U.S. domiciled insurance company, the equivalent capital adequacy ratios determined in accordance with the terms of this Agreement) from those in effect at the Effective Time, the Parties shall amend this Agreement to adjust the RBC Ratios (or such equivalent capital adequacy ratios) reflected in the definitions of FMV Triggering Event, Recapture Triggering Event or otherwise required under this Agreement so that such adjusted RBC Ratio (or such equivalent capital adequacy ratio) or any replacement formula as determined after such material change or elimination will reasonably correspond to the relevant RBC Ratio (or such equivalent capital adequacy ratio) requirements in effect as of the Effective Time within thirty (30) days after the implementation of such change, and, if the Parties cannot agree on any such adjustments, the Reinsurer shall, and shall cause such Affiliate Retrocessionaire to, continue to calculate its RBC Ratio (or such equivalent capital adequacy ratio) as if such material change or elimination had not occurred; provided, however, that any such change (together with any previous changes or series of changes) that, in the aggregate, requires an adjustment of ten (10) percentage points or less to the applicable RBC Ratio (or an equivalent adjustment to such equivalent capital adequacy ratio) requirement in effect as of the Effective Time (or, to the extent previously adjusted hereunder, the RBC Ratio (or such equivalent capital adequacy ratios) requirement in effect as of the last adjustment date) shall not be deemed “material” for purposes of this Section 10.3.

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Article XI.

INSOLVENCY

Section 1.1.Insolvency of the Ceding Company.

(a)In the event of the insolvency of the Ceding Company, all reinsurance made, ceded, renewed or otherwise becoming effective under this Agreement shall be payable by the Reinsurer directly to the Ceding Company or its statutory liquidator, receiver or statutory successor on the basis of the liability of the Ceding Company under the Reinsured Contracts without diminution because of the insolvency of the Ceding Company, except where the Reinsurer with the consent of the direct insureds has assumed the policy obligations of the Ceding Company as its direct obligations to the payees under such policies, in substitution for the obligations of the Ceding Company to such payees.

(b)It is understood, however, that in the event of such an insolvency of the Ceding Company, the liquidator, receiver or statutory successor of the Ceding Company shall give written notice of the pendency of a claim against the Ceding Company on a Reinsured Contract within a reasonable period of time after such claim is filed in the applicable insolvency proceedings and that during the pendency of such claim the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses which it may deem available to the Ceding Company or its liquidator, receiver or statutory successor. It is further understood that the expense thus incurred by the Reinsurer will be chargeable, subject to applicable Law and court approval, against the Ceding Company as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Ceding Company solely as a result of the defense undertaken by the Reinsurer.

Article XII.

DURATION; RECAPTURE

Section 1.1.Duration. This Agreement shall continue in force until such time as (i) the Ceding Company’s Liability arising out of or related to all Reinsured Contracts is terminated in accordance with their respective terms and each Party has received payments which discharge the other Party’s liabilities incurred hereunder prior to such termination, (ii) with respect to any Assumed Reinsured Contract, the Ceding Company’s Liability with respect to such Assumed Reinsured Contract is terminated due to recapture or termination of the applicable Assumed Retrocession Agreement and each Party has received payments which discharge the other Party’s liabilities incurred hereunder prior to such termination or (iii) in accordance with Section 12.3, if the Ceding Company has elected to recapture the reinsurance of the Reinsured Contracts, and each Party has received payments which discharge the other Party’s liability in full in accordance with Section 12.4 and the other terms of this Agreement.

Section 1.2.Survival. Notwithstanding the other provisions of this Article XII, the terms and conditions of Articles I and XIII, and the provisions of Sections 3.6,15.1, 15.2, 15.3, 15.4, 15.5, 15.6, 15.8, 15.9, 15.10, 15.11, and 15.13 shall remain in full force and effect after the termination of this Agreement.

Section 1.3.Recapture.

(a)Following the occurrence of a Recapture Triggering Event, the Ceding Company shall have the right (but not the obligation) to recapture all, and not less than all, of the

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Reinsured Risks ceded under this Agreement, by providing the Reinsurer with written notice of its intent to effect such a recapture (a “Recapture Notice”).

(b)Any recapture pursuant to Section 12.3(a) shall be effective (i) as of 11:59 p.m. (New York time) on the last Business Day of the calendar month during which the Ceding Company delivers a Recapture Notice to the Reinsurer (unless an early effective date and time is necessary in order to effectuate the recapture prior to any loss of Reserve Credit hereunder, in which case any recapture pursuant to Section 12.3(a) shall be effective as of such earlier date and time) or (ii) on such later date and time as set forth in the Ceding Company’s Recapture Notice (the “Recapture Date”).

(c)Following a recapture pursuant to Section 12.3(a), subject to the satisfaction of payment obligations described in Section 12.4, (i) both the Ceding Company and the Reinsurer will be fully and finally released from all rights and obligations under this Agreement in respect of the Reinsured Risks other than the obligations under the provisions that expressly survive termination as provided in Section 12.2 and (ii) no Additional Consideration shall be payable to the Reinsurer with respect to the Reinsured Risks.

(d)Notwithstanding the remedies contemplated by this Article XII, the Ceding Company may, in its sole discretion, require direct payment by the Reinsurer of any sum in default under this Agreement or pursue any other remedy to which the Ceding Company may be entitled hereunder or at law or in equity in lieu of exercising the remedies in this Article XII, and it shall be no defense to any such claim that the Ceding Company might have had other recourse.

Section 1.4.Recapture Payments.

(a)In connection with a recapture pursuant to Section 12.3(a), on or prior to the Recapture Date, the Ceding Company shall prepare and provide to the Reinsurer a settlement statement setting forth an estimated calculation of the Recapture Terminal Settlement (the “Estimated Recapture Terminal Settlement”). If the amount of the Estimated Recapture Terminal Settlement is positive, then on the Recapture Date (i) the Ceding Company shall withdraw from the Funds Withheld Account cash and Eligible Assets having a Statutory Book Value equal to the Estimated Recapture Terminal Settlement. To the extent the cash and Eligible Assets in the Funds Withheld Account are insufficient to satisfy such amount, the Reinsurer shall pay the amount of such deficiency in cash by wire transfer of immediately available funds to the account designed in writing by the Ceding Company. If the amount of the Estimated Recapture Terminal Settlement is negative, then on the Recapture Date, the Ceding Company shall pay the absolute value of such amount to the Reinsurer in cash by wire transfer of immediately available funds to the account designed in writing by the Reinsurer. Following the payment by the applicable Party of the Estimated Recapture Terminal Settlement, any assets remaining in the Funds Withheld Account shall be transferred to the Reinsurer and the Funds Withheld Account shall be closed.

(b)As soon as practicable following the Recapture Date, the Ceding Company shall prepare and provide to the Reinsurer an actual calculation of the Recapture Terminal Settlement, and the Parties shall make any necessary adjustments to reflect any difference between the actual Recapture Terminal Settlement and the Estimated Recapture Terminal Settlement.

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Article XIII.

INDEMNIFICATION

Section 1.1.Ceding Company’s Obligation to Indemnify. Without limiting any rights or remedies to which either Party may be entitled hereunder or at law or in equity, the Ceding Company hereby agrees to indemnify, defend and hold harmless the Reinsurer from and against any and all losses incurred by the Reinsurer to the extent arising from [***]

Article XIV.

TAXES

Section 1.1.Withholding. Each Party and any of their agents shall be entitled to deduct and withhold from any amount otherwise payable pursuant to this Agreement such amounts as it is required to deduct and withhold with respect to the making of such payment under any provision of federal, state, local or foreign applicable tax Law. If a Party determines that an amount is required to be deducted or withheld, such Party shall use reasonable best efforts to: (i) provide written notice to the other Party, at least five (5) Business Days before the relevant payment of such deduction or withholding, (ii) cooperate in good faith with the other Party to reduce or eliminate the deduction or withholding of such amount and (iii) provide the other Party a reasonable opportunity to provide forms or documentation that would exempt such amounts from withholding. If any amount is so withheld and paid over to the applicable Governmental Authority, such amounts paid to the applicable Governmental Authority shall be treated for all purposes of this Agreement as having been paid to the Person with respect to which such deduction or withholding was imposed. Without limiting the generality of the foregoing, each Party agrees to provide to the other on or before the date hereof an accurate and complete copy of IRS Form W-9 and shall deliver renewals or additional copies of such forms (or successor forms) to the other Party on or before the date that such forms expire or become obsolete.

Section 1.2.DAC Tax Adjustment.

(a)To the extent that Section 848 of the Code and corresponding Treasury Regulations Section 1.848-2 are applicable to the Reinsured Contracts, the Ceding Company and the Reinsurer hereby make the joint election provided for in Treasury Regulations Section 1.848-2(g)(8) (the “DAC Tax Election”) and agree as follows:

(i)The Parties will attach a schedule to their respective U.S. federal income tax returns identifying this Agreement as a reinsurance agreement for which the DAC Tax Election has been made, and will otherwise file their respective federal income tax returns in a manner consistent with the DAC Tax Election. Such schedule shall be attached to each Party’s U.S. federal income tax return filed for the first taxable year ending after the DAC Tax Election becomes effective.

(ii)The Party with the net positive consideration for this Agreement for each taxable year will capitalize specified policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Code.

(iii)The Parties agree to exchange information pertaining to the amount of the net consideration under this Agreement each year to ensure consistency or as otherwise required by the Code or the Internal Revenue Service.

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(iv)The DAC Tax Election shall be effective for the first taxable year in which this Agreement is effective and for all years for which this Agreement remains in effect.

(b)As used in this Article XIV, the terms “net consideration,” “net positive consideration,” “specified policy acquisitions expenses” and “general deductions limitation” are defined by reference to Treasury Regulations Section 1.848-2 and Section 848 of the Code, in effect as of the Effective Time.

(c)Each of the Parties represents and warrants that it is subject to U.S. taxation under the provisions of Subchapter L of Chapter 1 of Subtitle A of the Code.

Article XV.

MISCELLANEOUS

Section 1.1.Expenses. Except as may be otherwise specified in this Agreement, all costs and expenses, including fees and disbursements of counsel, financial advisers and independent accountants, incurred in connection with this Agreement and the transactions contemplated herein shall be paid by the Person incurring such costs and expenses.

Section 1.2.Notices. All notices, requests, consents, claims, demands and other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by electronic mail or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties hereto at the following respective addresses (or at such other address for a Party hereto as shall be specified in a notice given in accordance with this Section 15.2).

(a)if to the Ceding Company:

Equitable Financial Life Insurance Company
1290 Avenue of the Americas
New York, NY 10104
Attention:    Jose Gonzalez
Tel:    212-554-1234
E-mail:    jose.gonzalez@equitable.com

(b)if to the Reinsurer:

Equitable Financial Life Insurance Company of America
1290 Avenue of the Americas
New York, NY 10104
Attention:    Jose Gonzalez
Tel:    212-554-1234
E-mail:    jose.gonzalez@equitable.com

Section 1.3.Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced under any Law or as a matter of public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated herein is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order

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that the transactions contemplated herein be consummated as originally contemplated to the greatest extent possible.

Section 1.4.Entire Agreement. This Agreement (including all exhibits and schedules hereto) constitutes the entire agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior agreements and undertakings, both written and oral, between or on behalf of the Ceding Company and/or its Affiliates, on the one hand, and the Reinsurer and/or its Affiliates, on the other hand, with respect to the subject matter of this Agreement.

Section 1.5.Assignment. This Agreement shall not be assigned by any Party without the prior written consent of the other Party. Any attempted assignment in violation of this Section 15.5 shall be void. This Agreement shall be binding upon, shall inure to the benefit of, and shall be enforceable by the Parties and their permitted successors and assigns.

Section 1.6.No Third Party Beneficiaries. Except as otherwise provided herein, this Agreement is for the sole benefit of the Parties and their permitted successors and assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

Section 1.7.Amendment. No provision of this Agreement may be amended, supplemented or modified except by a written instrument signed by each Party.

Section 1.8.Submission to Jurisdiction.

(a)Each of the Ceding Company and the Reinsurer irrevocably and unconditionally submits for itself and its property in any Action arising out of or relating to this Agreement, the transactions contemplated hereby, the formation, breach, termination or validity of this Agreement or the recognition and enforcement of any judgment in respect of this Agreement, to the exclusive jurisdiction of the courts of the State of New York sitting in the County of New York, the federal courts for the Southern District of New York, and appellate courts having jurisdiction of appeals from any of the foregoing, and all claims in respect of any such Action shall be heard and determined in such New York courts or, to the extent permitted by Law, in such federal court.

(b)Any such Action may and shall be brought in such courts and each of the Ceding Company and the Reinsurer irrevocably and unconditionally waives any objection that it may now or hereafter have to the venue or jurisdiction of any such Action in any such court or that such Action was brought in an inconvenient court and shall not plead or claim the same.

(c)Service of process in any Action may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Party at its address as provided in Section 15.2.

(d)Nothing in this Agreement shall affect the right to effect service of process in any other manner permitted by the Laws of the State of New York.

Section 1.9.Governing Law. This Agreement, and the formation, termination or validity of any part of this Agreement shall in all respects be governed by, and construed in accordance with, the Laws of the State of New York.

Section 1.10.Waiver of Jury Trial. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR

- 32 -

RELATING TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, OR ITS PERFORMANCE UNDER OR THE ENFORCEMENT OF THIS AGREEMENT.

Section 1.11.Specific Performance. The Parties agree that irreparable damage would occur in the event that any of the covenants or obligations contained in this Agreement are not performed in accordance with their specific terms or were otherwise breached. Accordingly, each of the Parties shall be entitled to injunctive or other equitable relief to prevent or cure any breach by the other Party of its covenants or obligations contained in this Agreement and to specifically enforce such covenants and obligations in any court referenced in Section 15.8(a) having jurisdiction, such remedy being in addition to any other remedy to which either Party may be entitled hereunder or at law or in equity. Each of the Parties acknowledges and agrees that it shall not oppose the granting of an injunction, specific performance and other equitable relief when expressly available pursuant to the terms of this Agreement, and hereby waives (x) any defenses in any Action for an injunction, specific performance or other equitable relief, including the defense that the other Parties have an adequate remedy at Law or an award of specific performance is not an appropriate remedy for any reason at Law or equity, and (y) any requirement under Law to post a bond, undertaking or other security as a prerequisite to obtaining equitable relief.

Section 1.12.Waivers. Any term or provision of this Agreement may be waived, or the time for its performance may be extended, in writing at any time by the Party or Parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently authorized for the purposes of this Agreement if, as to any Party, it is authorized in writing by an authorized Representative of such Party. The failure of any Party hereto to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any preceding or subsequent breach.

Section 1.13.Rules of Construction. Interpretation of this Agreement shall be governed by the following rules of construction: (a) words in the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires; (b) references to Articles, Sections, paragraphs, Exhibits and Schedules are references to the Articles, Sections, paragraphs, Exhibits and Schedules to this Agreement unless otherwise specified; (c) references to “$” shall mean United States dollars; (d) the word “including” and words of similar import when used in this Agreement shall mean “including without limiting the generality of the foregoing,” unless otherwise specified; (e) the table of contents, articles, titles and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement; (f) this Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting or causing any instrument to be drafted; (g) the Schedules and Exhibits referred to herein shall be construed with and as an integral part of this Agreement to the same extent as if they were set forth verbatim herein; (h) unless the context otherwise requires, the words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; (i) all terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein; (j) any agreement or instrument defined or referred to herein or any agreement or instrument that is referred to herein means such agreement or instrument as from time to time amended, modified or supplemented, including by waiver or consent, and references to all attachments thereto and instruments incorporated therein; (k) unless otherwise specified herein, any statute or regulation referred to herein means such statute or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of any statute, includes any rules and regulations promulgated under such statute), and references to any section of any statute or regulation include any successor to such section; (l) all time periods within or following which any payment is to be made or act to be done shall be calculated by excluding the date on which the period commences

- 33 -

and including the date on which the period ends and by extending the period to the first succeeding Business Day if the last day of the period is not a Business Day; (m) references to any Person include such Person’s predecessors or successors, whether by merger, consolidation, amalgamation, reorganization or otherwise; and (n) references to any contract (including this Agreement) or organizational document are to the contract or organizational document as amended, modified, supplemented or replaced from time to time, unless otherwise stated.

Section 1.14.Counterparts. This Agreement may be executed in two (2) or more counterparts, and by the different Parties to this Agreement in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or other means of electronic transmission utilizing reasonable image scan technology shall be as effective as delivery of a manually executed counterpart of this Agreement.

Section 1.15.Incontestability. In consideration of the mutual covenants and agreements contained herein, each Party agrees that this Agreement, and each and every provision hereof, is and shall be enforceable by and between them according to its terms, and each Party does hereby agree that it shall not contest the validity or enforceability hereof.

The rest of this page intentionally left blank.

- 34 -

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed on the day and year first above written.

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY

By:        /s/ Robin Raju    
    Name: Robin Raju
    Title: Chief Financial Officer

EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA

By:        /s/ Yun Zhang    
    Name: Yun Zhang
    Title: Treasurer

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Mark Pearson, Chief Executive Officer of Equitable Financial Life Insurance Company of America, certify that:

1) I have reviewed this Quarterly Report on Form 10-Q of Equitable Financial Life Insurance Company of America (the “Registrant”);

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4) The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5) The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

Exhibit 31.1

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: August 21, 2023

/s/ Mark Pearson

Mark Pearson

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robin M. Raju, Chief Financial Officer of Equitable Financial Life Insurance Company of America, certify that:

1) I have reviewed this Quarterly Report on Form 10-Q of Equitable Financial Life Insurance Company of America (the “Registrant”);

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4) The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5) The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

Exhibit 31.2

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: August 21, 2023

/s/ Robin M. Raju

Robin M. Raju

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Equitable Financial Life Insurance Company of America (the "Company") for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Mark Pearson, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 21, 2023

/s/ Mark Pearson

Mark Pearson

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Equitable Financial Life Insurance Company of America (the "Company") for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Robin M. Raju, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 21, 2023

/s/ Robin M. Raju

Robin M. Raju

Chief Financial Officer

XML

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 17, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	333-65423
Entity Registrant Name	EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA
Entity Incorporation, State or Country Code	AZ
Entity Tax Identification Number	86-0222062
Entity Address, Address Line One	525 Washington Boulevard
Entity Address, City or Town	Jersey City
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07310
City Area Code	212
Local Phone Number	554-1234
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,500,000
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Amendment Flag	false
Entity Central Index Key	0000835357
Current Fiscal Year End Date	--12-31

XML

Balance Sheets - USD ($) $ in Millions		Jun. 30, 2023	Dec. 31, 2022	[1]
Investments:
Fixed maturities available-for-sale, at fair value (amortized cost of $6,180 and $2,606) (allowance for credit losses of $0 and $0 )		$ 5,804	$ 2,218
Mortgage loans on real estate (net of allowance for credit losses of $0 and $0)		17	17
Policy loans		260	244
Other equity investments		38	19
Other invested assets		117	47
Total investments		6,236	2,545
Cash and cash equivalents		1,080	294
Deferred policy acquisition costs		947	760
Amounts due from reinsurers (allowance for credit losses of $0 and $0)		1,005	1,051
Funds withheld receivable		10,615	0
Reinsurance deposit assets		12,782	0
Current and deferred income taxes		151	76
Purchased market risk benefits		10	13
Other assets		361	101
Assets for market risk benefits		26	12
Separate Accounts assets		4,508	3,374
Total Assets		37,721	8,226
LIABILITIES
Policyholders’ account balances		21,014	3,751
Liability for market risk benefits		7,363	15
Future policy benefits and other policyholders' liabilities		1,209	669
Amounts due to reinsurers		106	112
Other liabilities		2,124	73
Separate Accounts liabilities		4,508	3,374
Total Liabilities		36,324	7,994
Commitments and contingent liabilities	[2]
EQUITY
Common stock, $1.00 par value; 2,500,000 shares authorized, issued and outstanding		3	3
Additional paid-in capital		1,882	831
Accumulated deficit		(143)	(220)
Accumulated other comprehensive income (loss)		(345)	(382)
Total Equity		1,397	232
Total Liabilities and Equity		$ 37,721	$ 8,226

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] See Note 13 of the Notes to these Financial Statements for details of commitments and contingent liabilities.

XML

Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Fixed maturities available-for-sale, amortized cost	$ 6,180	$ 2,606
Fixed maturities available-for-sale, allowance for credit losses	0	0
Mortgage loans on real estate, valuation allowances	0	0
Reinsurance recoverable, allowance for credit loss	$ 0	$ 0
Common stock par value (in dollars per share)	$ 1.00	$ 1.00
Common stock authorized (in shares)	2,500,000	2,500,000
Common stock issued (in shares)	2,500,000	2,500,000
Common stock outstanding (in shares)	2,500,000	2,500,000

XML

Statements of Income (Loss) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
REVENUES
Policy charges and fee income	$ 411	$ 56	[1]	$ 472	$ 112	[2]
Premiums	112	60	[1]	181	109	[1]
Net derivative gains (losses)	(700)	(3)	[1]	(694)	(11)	[2]
Net investment income (loss)	56	21	[1]	85	41	[1]
Investment gains (losses), net	0	(2)	[1]	(5)	(3)	[1]
Investment management and service fees	105	6	[1]	110	11	[1]
Other income	38	1	[1]	44	1	[1]
Total revenues	22	139	[1]	193	260	[1]
BENEFITS AND OTHER DEDUCTIONS
Policyholders’ benefits	335	82	[1]	414	156	[1]
Remeasurement of liability for future policy benefits	1	0	[1]	0	(1)	[2]
Change in market risk benefits and purchased market risk benefits	(862)	1	[1]	(862)	(4)	[1]
Interest credited to policyholders’ account balances	185	23	[1]	208	42	[2]
Compensation and benefits	15	9	[1]	28	20	[1]
Commissions	90	26	[1]	121	42	[1]
Amortization of deferred policy acquisition costs	16	10	[1]	28	20	[1]
Other operating costs and expenses	222	21	[1]	245	44	[1]
Total benefits and other deductions	2	172	[1]	182	319	[1]
Income (loss) from continuing operations, before income taxes	20	(33)	[1]	11	(59)	[1]
Income tax (expense) benefit	(6)	8	[1]	66	14	[1]
Net income (loss)	$ 14	$ (25)	[3]	$ 77	$ (45)	[2]

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[3] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

XML

Statements of Comprehensive Income (Loss) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
COMPREHENSIVE INCOME (LOSS)
Net income (loss)		$ 14	$ (25)	[1]	$ 77	$ (45)	[2]
Other comprehensive income (loss), net of income taxes:
Change in unrealized gains (losses), net of reclassification adjustment	[3]	(51)	(153)	[1]	24	(324)	[1]
Change in market risk benefits - instrument-specific credit risk		7	3	[1]	12	8	[1]
Change in liability for future policy benefits - current discount rate		1	0	[1]	1	0	[1]
Other comprehensive income (loss), net of income taxes		(43)	(150)	[4]	37	(316)	[4]
Comprehensive income (loss)		$ (29)	$ (175)	[1]	$ 114	$ (361)	[1]

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[3] See Note 12 of the Notes to these Financial Statements for details of change in unrealized gains (losses), net of adjustments.

[4] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

XML

Statements of Equity - USD ($) $ in Millions		Total		Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-in Capital	Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2021	[1]	$ 647			$ 3	$ 680	$ (134)		$ 98
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(45)	[2]				(45)	[1]
Other comprehensive income (loss)	[1]	(316)							(316)
Other	[1]	2				2
Dividend of AB Units to parent		0
Ending balance at Jun. 30, 2022	[1]	288			3	682	(179)		(218)
Beginning balance at Dec. 31, 2021	[1]	647			3	680	(134)		98
Ending balance at Dec. 31, 2022		$ 232		$ 0	3	831	(220)		(382)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting standards update [extensible list]		Accounting Standards Update 2016-13 [Member]
Beginning balance at Mar. 31, 2022	[1]	$ 462			3	681	(154)		(68)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(25)	[3]				(25)	[1]
Other comprehensive income (loss)	[1]	(150)							(150)
Other	[1]	1				1
Dividend of AB Units to parent	[1]	0
Ending balance at Jun. 30, 2022	[1]	288			3	682	(179)		(218)
Beginning balance at Dec. 31, 2022		232		$ 0	3	831	(220)		(382)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Capital contribution from parent		1,050				1,050
Net income (loss)		77					77
Other comprehensive income (loss)		37							37
Other		1				1
Ending balance at Jun. 30, 2023		1,397			3	1,882	(143)		(345)
Beginning balance at Mar. 31, 2023		375			3	831	(157)		(302)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Capital contribution from parent		1,050				1,050
Net income (loss)		14					14
Other comprehensive income (loss)		(43)							(43)
Other		1				1
Ending balance at Jun. 30, 2023		$ 1,397			$ 3	$ 1,882	$ (143)		$ (345)

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[3] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

XML

Statements of Cash Flows - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2023		Jun. 30, 2022
Statement of Cash Flows [Abstract]
Net income (loss)		$ 77		$ (45)	[1]
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Interest credited to policyholders’ account balances		208		42	[1]
Policy charges and fee income		(472)		(112)	[1]
Net derivative (gains) losses		694		11	[1]
Investment (gains) losses, net		5		3	[1]
Non-cash long-term incentive compensation expense		1		2	[1]
Amortization and depreciation		124		21	[1]
Remeasurement of liability for future policy benefits		0		(1)	[1]
Change in market risk benefits		(862)		(4)	[1]
Changes in:
Reinsurance recoverable		817		(12)	[1]
Funds withheld receivable		13		0	[1]
Capitalization of deferred policy acquisition costs		(215)		(52)	[1]
Future policy benefits		133		17	[1]
Current and deferred income taxes	[2]	(66)		(14)	[1]
Other, net		431		105	[1]
Net cash provided by (used in) operating activities		888		(39)	[1]
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale		98		120	[1]
Short-term investments		(1)		(1)	[1]
Other		80		0	[1]
Payment for the purchase/origination of:
Fixed maturities, available-for-sale		(3,582)		(289)	[1]
Other		(99)		(1)	[1]
Cash settlements related to derivative instruments, net		(208)		(97)	[1]
Other, net		(16)		(8)	[1]
Net cash provided by (used in) investing activities		(3,728)		(276)	[1]
Cash flows from financing activities:
Deposits		3,453		357	[1]
Withdrawals		(1,064)		(44)	[1]
Transfer (to) from Separate Accounts		26		(93)	[1]
Payments of market risk benefits		(181)		0
Change in collateralized pledged liabilities		342		(3)	[1]
Cash contribution from parent company		1,050		0	[1]
Other, net		0		4	[1]
Net cash provided by (used in) financing activities		3,626		221	[1]
Change in cash and cash equivalents		786		(94)	[1]
Cash and cash equivalents, beginning of period		294	[3]	127	[1]
Cash and cash equivalents, end of period		$ 1,080		$ 33	[1]

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] The six months ended June 30, 2023 includes a release of $69 million deferred tax valuation allowance. See Note 10 of the Notes to these Financial Statements.

[3] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

XML

Statements of Cash Flows (Parenthetical) $ in Millions	Jun. 30, 2023 USD ($)
Statement of Cash Flows [Abstract]
Valuation allowance partial release	$ 69

XML

ORGANIZATION

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

ORGANIZATION

Equitable Financial Life Insurance Company of America’s (“Equitable America” or “the Company”) primary business is providing variable annuity, life insurance and employee benefit products to both individuals and businesses. The Company is an indirect, wholly-owned subsidiary of Equitable Holdings, Inc. (“Holdings”). Equitable America is a stock life insurance company organized under the laws of Arizona.

Internal Reinsurance Transaction

On May 17, 2023, Equitable America entered into a reinsurance agreement (the “Reinsurance Treaty”) with its affiliate, Equitable Financial Life Insurance Company, a New York domiciled life insurance company (“Equitable Financial”), effective April 1, 2023. Pursuant to the Reinsurance Treaty, virtually all of Equitable Financial’s net retained general account liabilities, including all of its net retained liabilities relating to the living benefit and death riders related to (i) its variable annuity contracts issued outside the State of New York prior to October 1, 2022 (and with respect to its EQUI-VEST variable annuity contracts, issued outside the State of New York prior to February 1, 2023) and (ii) certain universal life insurance policies issued outside the State of New York prior to October 1, 2022 were reinsured to Equitable America on a coinsurance funds withheld basis. In addition, all of the separate account liabilities relating to such variable annuity contracts were reinsured to Equitable America on a modified coinsurance basis. Equitable America’s obligations under the Reinsurance Treaty are secured through Equitable Financial’s retention of certain assets supporting the reinsured liabilities. The New York Department of Financial Services (the “NYDFS”) and the Arizona Department of Insurance and Financial Institutions each approved the Reinsurance Treaty.

As a condition to approving the Reinsurance Treaty, the NYDFS has required that Equitable Financial seeks to novate the reinsured contracts on a reasonable best effort basis either to Equitable America or another affiliate over the next three years. Novations of the reinsured contracts are subject to additional regulatory approvals, as well as certain policyholder approvals.

At the effective date of the transaction, April 1, 2023, the Company recorded a funds withheld receivable of $11.2 billion, reinsurance deposit assets of $12.9 billion, MRB of $8.2 billion, policyholders’ account balances of $13.9 billion (includes $32.4 billion of assumed policyholder account balances related to the non-insulated (“NI”) modco offset by $28.7 billion of NI modco receivable), future policy benefits and other policyholders' liabilities of $357 million, and cost of reinsurance liability of $1.7 billion. Additionally, $64.1 billion of Insulated Separate Account liabilities were assumed under a modified coinsurance portion of the agreement.

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited interim financial statements (the “financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”).

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s financial statements included in the Recast 2022 Annual Report. Certain prior period amounts were adjusted to reflect the adoption of ASU 2018-12: Financial Services - Insurance (Topic 944).

The terms “second quarter 2023” and “second quarter 2022” refer to the three months ended June 30, 2023 and 2022, respectively. The terms “first six months of 2023” and “first six months of 2022” refer to the six months ended June 30, 2023 and 2022, respectively.

Adoption of New Accounting Pronouncements

Description	Effect on the Financial Statement or Other Significant Matters
ASU 2018-12: Financial Services - Insurance (Topic 944)
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of Market Risk Benefits (“ MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement.	On January 1, 2023, the Company adopted the new accounting standard ASU 2018-12 using the modified retrospective approach, except for MRBs which will use the full retrospective approach. Refer to “Transition impact of ASU 2018-12, Financial Services- Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” section within this note for further details.

Transition impact of ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

The Company has not retrospectively adjusted its financial statements for the year ended December 31, 2020 to reflect the adoption of ASU 2018-12, consistent with the Division of Corporation Finance’s Financial Reporting Manual Section 11410.1.

The Company adopted ASU 2018-12 for liability for future policy benefits (“LFPB”), additional insurance liabilities, DAC and balances amortized on a basis consistent with DAC on a modified retrospective basis. ASU 2018-12 was adopted for MRBs on a full retrospective basis.

The majority of the transition impacts come from removal of DAC and URL adjustments balances recorded in accumulated other comprehensive income (AOCI) impact, resulting in a favorable AOCI. There is limited impact from LFPB and MRB as of transition.

The following table presents the effect of transition adjustment to total equity resulting from the adoption of ASU 2018-12 as of January 1, 2021:

	Retained Earnings		Accumulated Other Comprehensive Income		Total
	(in millions)
Liability for future policy benefits (1)	$	—	$	—	$	—
Market risk benefits	2		(1)		1
DAC	—		110		110
Unearned revenue liability and sales inducement assets (1)	—		(37)		(37)
Total transition adjustment before taxes	2		72		74
Income taxes	(1)		(15)		(16)
Total transition adjustment (net of taxes)	$	1	$	57	$	58

_____________

(1)Unearned revenue liability included within liability for future policy benefits financial statement line item in the balance sheet. Sales inducement assets are included in other assets in the balance sheets.

The following table summarizes the balance of and changes in DAC on January 1, 2021 resulting from the adoption of ASU 2018-12:

	Variable Universal Life		Indexed Universal Life		Total
	(in millions)
Balance, December 31, 2020	$	230	$	247	$	477
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income	70		40		110
Balance, January 1, 2021	$	300	$	287	$	587

The following table summarizes the balance of and changes in sales inducement assets and unearned revenue liability on January 1, 2021 resulting from the adoption of ASU 2018-12:

	Variable Universal Life		Indexed Universal Life		Total
	(in millions)
Balance, December 31, 2020	$	55	$	14	$	69
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income	28		9		37
Balance, January 1, 2021	$	83	$	23	$	106

DAC

Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including employee fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred.

Contracts are measured on a grouped basis utilizing cohorts consistent with those used in the calculation of future policy benefit reserves. DAC is amortized on a constant level basis for the grouped contracts over the expected term of the contract. For life insurance products, DAC is amortized in proportion to the face amount in force. For annuity products DAC is amortized in proportion to policy counts. The constant level basis used for amortization determines the current period amortization considering both the current period’s actual experience and future projections. The amortization pattern is revised quarterly on a prospective basis. Amortization of DAC is included in Amortization of DAC, part of total benefits and other deductions.

For some products, policyholders can elect to modify product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. These transactions are known as internal replacements. If such modification substantially

changes the contract, the associated DAC is written off immediately through income and any new acquisition costs associated with the replacement contract are deferred.

Funds withheld receivable

Funds withheld receivable represents a receivable for amounts contractually withheld by ceding companies in accordance with funds withheld coinsurance (“funds withheld”) reinsurance agreements in which we are the reinsurer. The funds withheld receivable under reinsurance treaties includes the funds withheld embedded derivative receivable.

The reinsurance agreement between the Company and Equitable Financial written on a funds withheld and modified coinsurance basis contains embedded derivatives. We determined that the obligation to receive the total return on the assets funds withheld receivable, represents a total return swap with a floating rate leg. The fair value of embedded derivatives on funds withheld and modified coinsurance agreements is computed as the unrealized gain (loss) on the underlying assets and is included within funds withheld receivable on the balance sheets for assumed agreement. The change in the fair value of the embedded derivatives is recorded in net derivatives gains (losses) on the statements of income. Assumed earnings from the funds withheld receivable and changes in the fair value of embedded derivatives are reported in operating activities on the statements of cash flows. Contributions to and withdrawals from funds withheld receivable are reported in operating activities on the statements of cash flows.

For business assumed on a funds withheld or modified coinsurance basis, a funds withheld segregated portfolio, comprised of invested assets and other assets is maintained by the ceding entity, which is sufficient to support the current balance of statutory reserves. The fair value of the embedded derivative included in funds withheld is recorded as a funds withheld asset and any excess or shortfall in relation to statutory reserves is settled quarterly.

R

For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims.

For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as premiums ceded (assumed); and amounts due from reinsurers (amounts due to reinsurers) are established.

Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. As a result, we have netted the receivable and payable related to modified coinsurance agreements. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance.

Premiums, policy charges and fee income, and policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues.

For reinsurance contracts, reinsurance recoverable balances are generally calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities.

Ceded reinsurance transactions are recognized and measured in a manner consistent with underlying reinsured contracts, including using consistent assumptions. Assumed and ceded reinsurance contract rights and obligations are accounted for on a basis consistent with our direct contract. The reinsurance cost or benefit for traditional life non-participating and limited-payment contracts is recognized in proportion to the gross premiums of the underlying direct cohorts. The locked-in single A discount rate used to calculate the reinsurance cost or benefit is established at inception of the reinsurance contract. Changes to the single A discount rate are reflected in comprehensive income at each reporting date.

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within reinsurance deposit assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted.

Policyholders’ Account Balances

Policyholders’ account balances relate to contracts or contract features where the Company has no significant insurance risk. This liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date.

The reinsurance agreement between the Company and Equitable Financial written on a modified coinsurance basis contains embedded derivatives. We determined that the obligation to pay the total return on the assets the modified coinsurance,represents a total return swap with a floating rate leg. The fair value of embedded derivatives on the modified coinsurance agreement is computed as the unrealized gain (loss) and current period income on the underlying assets included within Policyholder account balances on the balance sheets for the assumed agreement. The change in the fair value of the embedded derivatives is recorded in net derivative gains (losses) on the statements of income. Assumed earnings from the modified coinsurance and changes in the fair value of embedded derivatives are reported in operating activities on the statements of cash flows. Contributions to and withdrawals from the Policyholder account balances are reported in financing activities on the statements of cash flows.

Future Policy Benefits and Other Policyholders’ Liabilities

For traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 3.5% to 4.5% of life insurance liabilities and a range of 4.5% to 5.5% for retained annuity liabilities.

For traditional life insurance policies and limited pay contracts, contracts are grouped into cohorts by contract type and issue year. The Company quarterly updates its estimate of cash flows using actual experience and current future cash flow assumptions, which is reflected in an updated net premium ratio used to calculate the liability. The ratio of actual and future expected claims to actual and future expected premiums determines the net premium ratio. The policy administration expense assumption is not updated after policy issuance. If actual expenses differ from the original expense assumptions, the differences are recognized in the period identified. The revised net premium ratio is used to determine the updated liability for future policy benefits as of the beginning of the reporting period, discounted at the original contract issuance rate. Changes in the liability due to current discount rates differing from original rates are included in other comprehensive income within the statement of comprehensive income.

For non-participating traditional life insurance policies (Term) and limited pay contracts (Payout, Pension), the discount rate assumption used is corporate A rated forward curve. We use a forward curve based upon a Bloomberg index. The liability is remeasured each quarter with the remeasurement change reported in other comprehensive income. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., single A) at contract inception for contracts issued after January 1, 2021. The Company developed an LDTI discount rate methodology used to calculate the LFPB for its traditional insurance liabilities and constructed a discount rate curve that references upper-medium grade (low credit risk) fixed-income instrument yields (i.e. Single-A rated Corporate bond yields) which are meant to reflect the duration characteristics of the corresponding insurance liabilities. The methodology uses observable market data, where available, and uses various estimation techniques in line with fair value guidance (such as interpolation and extrapolation) where data is limited. Discount rates are updated quarterly.

For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”). DPL will be amortized in relation to the expected future benefit payments. As the calculation of the DPL is based on discounted cash flows, interest accrues on the unamortized DPL balance using the discount rate determined at contract issuance. The DPL is updated at the same time as the estimates for cash flows for the liability for future policy benefits. Any difference between the recalculated and beginning of period DPL is

recognized in remeasurement gain or loss in the statement of income (loss), Remeasurement of Liability for Future Policy Benefits, part of total benefits and other deductions. On the balance sheet the DPL is recorded in the liability for future policy benefits.

Additional liabilities for contract or contract feature that provide for additional benefits in addition to the account balance but are not market risk benefits or embedded derivatives (“additional insurance liabilities”) are established by estimating the expected value of death or other insurance benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. These reserves are recorded within future policy benefits and other policyholders’ liabilities. The determination of this estimated future policy benefits liability is based on models that involve numerous assumptions and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, and mortality experience. There can be no assurance that actual experience will be consistent with management’s estimates. Assumptions are reviewed annually and updated with the remeasurement gain or loss reflected in total benefit expense.

The Company recognizes an adjustment in other comprehensive income for the additional insurance liabilities for unrealized gains and losses not included when calculating the present value of expected assessments for the benefit ratios.

The Company conducts annual premium deficiency testing except for liability for future policy benefits for non-participating traditional and limited payment contracts. The Company reviews assumptions and determines whether the sum of existing liabilities and the present value of future gross premiums is sufficient to cover the present value of future benefits to be paid and settlement costs. Anticipated investment income is considered when performing premium deficiency for long duration contracts. The anticipated investment income is projected based on current investment portfolio returns grading to long term reinvestment rates over the projection periods, based on anticipated gross reinvestment spreads, defaults and investment expenses. Premium deficiency reserves are recorded in certain instances where the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. This pattern of profits followed by losses is exhibited in our VISL business and is generated by the cost structure of the product or secondary guarantees in the contract. 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. We accrue for these PFBL using a dynamic approach that changes over time as the projection of future losses change.

Liabilities for unpaid claims and claim adjustment expenses are established for the Company’s employee benefits products which include the following Group products: long-term and short-term disability, life insurance, vision, dental, critical Illness, and accident. Unpaid claim and claim adjustment expenses consist of (i) claim reserves for known claims that are unpaid as of the balance sheet date; (ii) Incurred But Not Reported reserves for claims where the insured event occurred but has not yet been reported to the Company or the insured has not yet satisfied elimination period to be eligible for the benefits; and (iii) claim adjustment expense reserves for settling the claim run-out. The Company determines Incurred But Not Reported reserves and reviews the claim reserves for the long-term disability claims provided by a reinsurer managing the claims on the Company’s behalf. The claim adjustment expense reserves are set based on the Company’s anticipated cost associated with claim administration expenses on the run-out of business.

For long-term disability (“LTD”) the claim reserves for the reported claims are calculated as the present value of the net monthly LTD benefits (Social Security and other offsets may be estimated if unknown) and the best estimate probabilities of the claimant remaining disabled for a given benefit payment which are based on a termination rates table adjusted for experience. Should the offsets be estimated, they are estimated using the claimant’s salary, duration of disability and the probability of the offset award.

The disability termination rates vary based on the insured’s age at disability, gender, elimination period, the duration of disability, social security status and the number of months remaining in the benefit period. The rates account for the probabilities of both recovery and death. The reserves vary with plan provisions such as monthly benefit, offsets, own occupation period, benefit duration, cost of living adjustment (“COLA”), and minimum and maximum benefits. The discount rate assumptions for these liabilities are set annually and are based on projected investment returns for the asset portfolios. The interest rate is locked in for each claimant based on the year of disability.

For long-term disability, critical illness, and group accident the incurred but not reported reserves are determined using the expected loss ratio method, where the expected loss ratio is applied to the premiums to determine ultimate liabilities. For dental and vision, the incurred but not reported reserves are determined using completion factors, where these factors complete paid-to-date claims to the ultimate liability based on past experience. For short-term disability and group life the incurred but not reported reserves are determined using a combination of expected loss ratio and completion factor methods.

Market Risk Benefits

Market risk benefits (“MRBs”) are contracts or contract features that provide protection to the contract holder from other than nominal capital market risk and expose the Company to other than nominal capital market risk. Market risk benefits include contract features that provide minimum guarantees to policyholders and include GMIB, GMDB, and ROP DB benefits. MRBs are measured at fair value on a seriatim basis using an ascribed fee approach based upon policyholder behavior projections and risk neutral economic scenarios adjusted based on the facts and circumstances of the Company’s product features. The MRB Asset and MRB Liability will be equal to the average present value of benefits and risk margins less the average present value of ascribed fees. Ascribed fees will consist of the fee needed, under a stochastically generated set of risk-neutral scenarios, so that the mean present value of claims, including any risk charge, is equal to the mean present value of the projected attributed fees which will be capped at average present value of total policyholder contractual fees. The attributed fee percentage is considered a fixed term of the MRB feature and is held static over the life of the contract. Changes in fair value are recognized as a remeasurement gain/loss in the Change in market risk benefits and purchased market risk benefits, part of total benefits and other deductions except for the portion of the change in the fair value due to change in the Company’s own credit risk, which is recognized in other than comprehensive income. Additionally, when an annuitization occurs (for annuitization benefits) or upon extinguishment of the account balance (for withdrawal benefits) the balance related to the MRB will be derecognized and the amount deducted (after derecognition of any related amount included in accumulated other comprehensive income) shall be used in the calculation of the liability for future policy benefits for the payout annuity. Upon derecognition, any related balance will be removed from AOCI.

The Company has issued and continues to offer certain variable annuity products with GMDB and/or contain a GMIB (collectively, the “GMxB features”) which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a GMIB base.

Features in ceded reinsurance contracts that meet the definition of MRBs are accounted for at fair value. The fees used to determine the fair value of the reinsured market risk benefit are those defined in the reinsurance contract. The expected periodic future premiums would represent cash outflows and the expected future benefits would represent cash inflows in the fair value calculation. On the ceded side, the Purchased MRB will be measured considering the counterparty credit risk of the reinsurer, while the direct contract liabilities will be measured considering the instrument-specific credit risk of the insurer. As a result of the difference in the treatment of the counterparty credit risk, the fair value of the direct and ceded contracts may be different even if the contractual fees and benefits are the same. Changes in instrument-specific credit risk of the Company is included in the fair value of its market risk benefit, whether in an asset or liability position, and whether related to an issued or purchased MRB, is recognized in OCI. The counterparty credit risk of the reinsurer is recorded in the statements of income (loss).

Revision of Previously Issued Financial Statements

During the quarter ended September 30, 2022, the Company identified an error in its previously issued financial statements specifically related to the amortization of the cost of reinsurance asset. The impact of this error to prior periods financial statements were not considered to be material. The impact of the errors to prior periods financial statements was not considered to be material. See Note 17 to the Notes to these Financial Statements for details of the revision.

Out of Period Adjustment

During the three months ended June 30, 2023, the Company recorded out of period adjustment resulting in a decrease of $5 million to Income (loss) from continuing operations, before income taxes. The adjustments relate to an understatement of policyholders’ benefits expenses and an understatement of other liabilities in the period ended and as of December 31, 2021, respectively. The error was not material to any prior period.

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INVESTMENTS

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

INVESTMENTS

Fixed Maturities AFS

The components of fair value and amortized cost for fixed maturities classified as AFS on the balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of June 30, 2023 and December 31, 2022 was $50 million and $23 million, respectively. There was no accrued interest written off for AFS fixed maturities for the three and six months ended June 30, 2023 and 2022.

The following tables provide information relating to the Company’s fixed maturities classified as AFS:

AFS Fixed Maturities by Classification

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
June 30, 2023:
Fixed Maturities:
Corporate (1)	$	4,421	$	—	$	5	$	345	$	4,081
U.S. Treasury, government and agency	15		—		—		1		14
States and political subdivisions	51		—		—		8		43
Foreign governments	30		—		—		—		30
Residential mortgage-backed	416		—		—		5		411
Asset-backed (2)	1,082		—		—		6		1,076
Commercial mortgage-backed	165		—		—		16		149
Total at June 30, 2023	$	6,180	$	—	$	5	$	381	$	5,804
December 31, 2022:
Fixed Maturities:
Corporate (1)	$	2,417	$	—	$	—	$	359	$	2,058
U.S. Treasury, government and agency	14		—		—		—		14
States and political subdivisions	43		—		—		9		34
Residential mortgage-backed	8		—		—		2		6
Asset-backed (2)	43		—		—		2		41
Commercial mortgage-backed	81		—		—		16		65
Total at December 31, 2022	$	2,606	$	—	$	—	$	388	$	2,218

______________

(1)Corporate fixed maturities include both public and private issues.

(2)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities. and other asset types.

The contractual maturities of AFS fixed maturities as of June 30, 2023 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Contractual Maturities of AFS Fixed Maturities

	Amortized Cost (Less Allowance for Credit Losses)		Fair Value
	(in millions)
June 30, 2023:
Contractual maturities:
Due in one year or less	$	127	$	126
Due in years two through five	888		860
Due in years six through ten	2,370		2,256
Due after ten years	1,132		926
Subtotal	4,517		4,168
Residential mortgage-backed	416		411
Asset-backed	1,082		1,076
Commercial mortgage-backed	165		149
Total at June 30, 2023	$	6,180	$	5,804

The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities:

Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Proceeds from sales	$	—	$	39	$	50	$	62
Gross gains on sales	$	—	$	—	$	—	$	—
Gross losses on sales	$	—	$	3	$	(5)	$	4
Net (increase) decrease in Allowance for Credit and Intent to Sell losses	$	—	$	—	$	—	$	—

The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts:

AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Balance, beginning of period	$	—	$	2	$	—	$	2
Previously recognized impairments on securities that matured, paid, prepaid or sold	—		(2)		—		(2)
Recognized impairments on securities impaired to fair value this period (1)	—		—		—		—
Credit losses recognized this period on securities for which credit losses were not previously recognized	—		—		—
Additional credit losses this period on securities previously impaired	—		—		—		—
Increases due to passage of time on previously recorded credit losses	—		—		—		—

Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)	—		—		—		—
Balance, end of period	$	—	$	—	$	—	$	—

______________

(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI.

Net Unrealized Gains (Losses) on AFS Fixed Maturities

	Three Months Ended June 30, 2023
	Net Unrealized Gains (Losses) on Investments		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, beginning of period	$	(312)	$	6	$	145	$	(161)
Net investment gains (losses) arising during the period	(64)		—		—		(64)
Reclassification adjustment:							—
Included in Net income (loss)	—		—		—		—
Excluded from Net income (loss)	—		—		—		—
Impact of net unrealized investment gains (losses)	—		1		14		15
Net unrealized investment gains (losses) excluding credit losses	(376)		7		159		(210)
Net unrealized investment gains (losses) with credit losses	—		—		—		—
Balance, end of period	$	(376)	$	7	$	159	$	(210)
	Three Months Ended June 30, 2022
	Net Unrealized Gains (Losses) on Investments		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, beginning of period	$	(93)	$	2	$	19	$	(72)
Net investment gains (losses) arising during the period	(202)		—		—		(202)
Reclassification adjustment:							—
Included in Net income (loss)	2		—		—		2
Excluded from Net income (loss)	—		—		—		—
Impact of net unrealized investment gains (losses)	—		4		41		45
Net unrealized investment gains (losses) excluding credit losses	(293)		6		60		(227)
Net unrealized investment gains (losses) with credit losses (1)	—		—		—		—
Balance, end of period	$	(293)	$	6	$	60	$	(227)

Six Months Ended June 30, 2023
Net Unrealized Gains (Losses) on Investments	Policyholders’ Liabilities	Deferred Income Tax Asset (Liability)	AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)

	(in millions)
Balance, beginning of period	$	(388)	$	8	$	161	$	(219)
Net investment gains (losses) arising during the period	7		—		—		7
Reclassification adjustment:
Included in net income (loss)	5		—		—		5
Other (1)	—		—		—		—
Impact of net unrealized investment gains (losses)	—		(1)		(2)		(3)
Net unrealized investment gains (losses) excluding credit losses	(376)		7		159		(210)
Net unrealized investment gains (losses) with credit losses	—		—		—		—
Balance, end of period	$	(376)	$	7	$	159	$	(210)
	Six Months Ended June 30, 2022
	Net Unrealized Gains (Losses) on Investments		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, beginning of period	$	128	$	(3)	$	(26)	$	99
Net investment gains (losses) arising during the period	(424)		—		—		(424)
Reclassification adjustment:
Included in net income (loss)	3		—		—		3
Other	—		—		—		—
Impact of net unrealized investment gains (losses)	—		9		86		95
Net unrealized investment gains (losses) excluding credit losses	(293)		6		60		(227)
Net unrealized investment gains (losses) with credit losses	—		—		—		—
Balance, end of period	$	(293)	$	6	$	60	$	(227)

The following tables disclose the fair values and gross unrealized losses of the 1,172 issues as of June 30, 2023 and the 845 issues as of December 31, 2022 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated:

AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
June 30, 2023:
Fixed Maturities:
Corporate	$	1,928	$	38	$	1,555	$	307	$	3,483	$	345
U.S. Treasury, government and agency	5		—		9		1		14		1
States and political subdivisions	6		1		27		7		33		8
Residential mortgage-backed	331		2		6		3		337		5
Asset-backed	680		5		31		1		711		6
Commercial mortgage-backed	85		1		60		15		145		16
Total at June 30, 2023	$	3,035	$	47	$	1,688	$	334	$	4,723	$	381

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
December 31, 2022:
Fixed Maturities:
Corporate	$	1,446	$	159	$	590	$	200	$	2,036	$	359
States and political subdivisions	19		4		13		5		32		9
Residential mortgage-backed	2		—		4		2		6		2
Asset-backed	35		1		6		1		41		2
Commercial mortgage-backed	5		1		60		15		65		16
Total at December 31, 2022	$	1,507	$	165	$	673	$	223	$	2,180	$	388

The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 1.3% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of June 30, 2023 and December 31, 2022 were $54 million and $24 million, respectively, representing 3.9% and 10.3% of the equity of the Company.

Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of June 30, 2023 and December 31, 2022, respectively, approximately $48 million and $4 million, or 0.8% and 0.2%, of the $6.2 billion and $2.6 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had no gross unrealized losses as of June 30, 2023 and December 31, 2022.

As of June 30, 2023 and December 31, 2022, respectively, the $334 million and $223 million of gross unrealized losses of twelve months or more were concentrated in corporate securities. In accordance with the policy described in Note 2 of the Notes to these Financial Statements, the Company concluded that an allowance for credit losses for these securities was not warranted at either June 30, 2023 or December 31, 2022. As of June 30, 2023 and December 31, 2022, the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis.

Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of June 30, 2023, the Company determined that the unrealized loss was primarily due to increases in interest rates and credit spreads.

Mortgage Loans on Real Estate

The Company held two commercial mortgage loans with a carrying value of $17 million and $17 million at June 30, 2023 and December 31, 2022. The loans were issued prior to 2017 for apartment complex properties located in the Mid-Atlantic region. The loans were current as of June 30, 2023 and December 31, 2022 with LTV ratios between 0%-50% and DSC ratios of 2.0x or greater.

Accrued interest receivable as of June 30, 2023 and December 31, 2022 was $0 million and no accrued interest was written off for the three and six months ended June 30, 2023 and 2022. The allowance for credit losses was $0 million as of June 30, 2023 and 2022, with a change of $0 million for the periods ended.

As of June 30, 2023 and 2022, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses.

Equity Securities

The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and six months ended June 30, 2023 and 2022.

Unrealized and Realized Gains (Losses) from Equity Securities

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	—	$	(1)	$	(1)	$	(3)
Net investment gains (losses) recognized on securities sold during the period	—		—		—		—
Unrealized and realized gains (losses) on equity securities	$	—	$	(1)	$	(1)	$	(3)

Trading Securities

As of June 30, 2023 and December 31, 2022, respectively, the fair value of the Company’s trading securities was $0 million and $1 million. As of June 30, 2023 and December 31, 2022, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $1 million and $1 million.

The table below shows a breakdown of net investment income (loss) from trading securities during the three and six months ended June 30, 2023 and 2022.

Net Investment Income (Loss) from Trading Securities

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	2	$	—	$	—	$	—
Net investment gains (losses) recognized on securities sold during the period	—		—		—		—
Unrealized and realized gains (losses) on trading securities	2		—		—		—
Interest and dividend income from trading securities	—		—		—		—
Net investment income (loss) from trading securities	$	2	$	—	$	—	$	—

Net Investment Income

The following tables provide the components of net investment income by investment type:

	Three Months Ended June 30,					Six Months Ended June 30,
	2023		2022			2023		2022
	(in millions)
Fixed maturities	$	48		$	22	$	77	$	43
Mortgage loans on real estate	—			—		—		—
Policy loans	1			1		2		2
Other equity investments	—			(2)		—		(3)
Trading securities	2			—		—		—
Other investment income	7			—		9		—
Gross investment income (loss)	58			21		88		42
Investment expenses	(2)			—		(3)		(1)
Net investment income (loss)	$	56		$	21	$	85	$	41

Investment Gains (Losses), Net

Investment gains (losses), net, including changes in the valuation allowances and credit losses are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Fixed maturities	$	—	$	(2)	$	(5)	$	(3)
Mortgage loans on real estate	—		—		—		—
Other equity investments (1)	—		—		—		—
Investment gains (losses), net	$	—	$	(2)	$	(5)	$	(3)

_____________

(1)    Investment gains (losses), net of Other equity investments includes Real Estate Held for production.

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DERIVATIVES

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

DERIVATIVES

The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by applicable states’ insurance law. The Company does not designate any derivatives as hedge accounting. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts can be used in these hedging programs, including exchange traded equity and interest rate futures contracts as well as equity options. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets.

Derivatives Utilized to Hedge Exposure to Variable Annuities with Guarantee Features

The Company has issued and continues to offer variable annuity products with GMxB features which are accounted for as market risk benefits. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with products that have a GMxB feature and are accounted for as market risk benefits is that under-performance of the financial markets could result in the GMxB features benefits being higher than what accumulated policyholders’ account balances would support.

For GMxB features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual experience versus expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB features that result from financial markets movements.

Derivatives Utilized to Hedge Crediting Rate Exposure on SCS, SIO, MSO and IUL Products/Investment Options

The Company hedges crediting rates in the SCS, MSO in the variable life insurance products and IUL insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment.

In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers, thereby substantially reducing any exposure to market-related earnings volatility.

The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments:

The following table presents the gross notional amount and estimated fair value of the Company’s derivatives:

Derivative Instruments by Category

	June 30, 2023						December 31, 2022
			Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in millions)
Derivatives: (1)
Equity contracts:
Futures	$	1,324	$	—	$	—	$	394	$	—	$	—
Options	1,948		546		167		209		34		16
Interest rate contracts:
Futures	370		—		—		282		—		—
Other contracts:
Margin	—		81		—		—		29		—
Collateral	—		—		346		—		—		3
Total:	3,642		627		513		885		63		19
Embedded derivatives:
SCS, SIO, MSO and IUL indexed features (2)	—		—		7,347		—		—		87
Funds withheld receivable (3)	—		(136)		—		—		—		—
Modco receivable (2)	—		—		166		—		—		—
Total embedded derivatives	—		(136)		7,513		—		—		87
Total derivative instruments	$	3,642	$	491	$	8,026	$	885	$	63	$	106

______________

(1)Reported in other invested assets in the balance sheets.

(2)Reported in policyholders’ account balances in the balance sheets.

(3)Reported in funds withheld receivable in the balance sheets.

The following table presents the effects of derivative instruments on the statements of income and comprehensive income (loss)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	Net Derivatives Gains (Losses)
	(in millions)
Derivatives:
Equity contracts:
Futures	$	70	$	(66)	$	98	$	(74)
Options	105		(3)		111		(3)
Interest rate contracts:
Futures	(12)		(12)		(4)		(24)
Total:	163		(81)		205		(101)
Embedded Derivatives:
SCS, SIO, MSO and IUL indexed features	(2,194)		78		(2,230)		90
Funds withheld receivable	(599)		—		(599)		—
Modco receivable	1,930		—		1,930		—
Total Embedded Derivatives	(863)		78		(899)		90
Total Derivatives instruments (1)	$	(700)	$	(3)	$	(694)	(11)

________

(1)Reported in net derivative gains (losses) in the statements of income (loss).

Equity-Based and Treasury Futures Contracts Margin

All outstanding equity-based futures contracts as of June 30, 2023 and December 31, 2022 are exchange-traded and net settled daily in cash. As of June 30, 2023 and December 31, 2022, respectively, the Company had open exchange-traded futures positions on: (i) the S&P 500, Nasdaq, Russell 2000 and Emerging Market indices, having initial margin requirements of $67 million and $22 million and (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $14 million and $10 million.

Collateral Arrangements

The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its OTC derivative counterparties that requires both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities, U.S. government and government agency securities and investment grade corporate bonds. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. As of June 30, 2023 and December 31, 2022, respectively, the Company held $346 million and $3 million in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. The unrestricted cash collateral is reported in other invested assets. The Company posted collateral of $0 million and $0 million as of June 30, 2023 and December 31, 2022, respectively, in the normal operation of its collateral arrangements. The Company is exposed to losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreements, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review.

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. In addition, certain of the Company’s derivative agreements contain credit-risk related contingent features; if the credit rating of one of the parties to the derivative agreement is to fall below a certain level, the party with positive fair value could request termination at the then fair value or demand immediate full collateralization from the party whose credit rating fell and is in a net liability position.

As of June 30, 2023 and December 31, 2022, there were no net liability derivative positions with counterparties with credit risk-related contingent features whose credit rating has fallen. All derivatives have been appropriately collateralized by the Company or the counterparty in accordance with the terms of the derivative agreements.

The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of June 30, 2023 and December 31, 2022:

Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of June 30, 2023

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (1)		Net Amount
	(in millions)
Assets:
Derivative assets	$	627	$	513	$	114	$	—	$	114
Other financial assets	3		—		3		—		3
Other invested assets	$	630	$	513	$	117	$	—	$	117
Liabilities:
Derivative liabilities	$	513	$	513	$	—	$	—	$	—
Other financial liabilities	2,124		—		2,124		—		2,124
Other liabilities	$	2,637	$	513	$	2,124	$	—	$	2,124

______________

(1)Financial instruments sent (held).

As of December 31, 2022

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (1)		Net Amount
	(in millions)
Assets:
Derivative assets	$	63	$	18	$	45	$	—	$	45
Other financial assets	2		—		2		—		2
Other invested assets	$	65	$	18	$	47	$	—	$	47
Liabilities:
Derivative liabilities	$	19	$	18	$	1	$	—	$	1
Other financial liabilities	72		—		72		—		72
Other liabilities	$	91	$	18	$	73	$	—	$	73

______________

(1)Financial instruments sent (held).

XML

DAC AND OTHER DEFERRED ASSETS/LIABILITIES

6 Months Ended

Jun. 30, 2023

Contract holder Bonus Interest Credits [Abstract]

DAC AND OTHER DEFERRED ASSETS/LIABILITIES

DAC AND OTHER DEFERRED ASSETS/LIABILITIES

Changes in the DAC asset for the six months ended June 30, 2023 and 2022 are as follows:

	Six Months Ended June 30, 2023
	VUL (1)		IUL (2)		GMxB Core		IE (3)		SCS		Total
	(in millions)
Balance, beginning of period	$	410	$	296	$	40	$	1	$	13	$	760
Capitalization	34		7		34		11		119		205
Amortization	(11)		(9)		(2)		—		(5)		(27)
Balance, end of period	$	433	$	294	$	72	$	12	$	127	$	938

______________

(1)    “VUL” defined as Variable Universal Life.

(2)    “IUL” defined as Indexed Universal Life.

(3)    “IE” defined as Investment Edge.

	Six Months Ended June 30, 2022
	VUL (1)		IUL (2)		GMxB Core		Total
	(in millions)
Balance, beginning of period	$	361	$	297	$	14	$	672
Capitalization	35		9		9		53
Amortization	(10)		(9)		(1)		(20)
Balance, end of period	$	386	$	297	$	22	$	705

______________

(1)    “VUL” defined as Variable Universal Life.

(2)    “IUL” defined as Indexed Universal Life.

Changes in the Unearned Revenue Liability for the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended June 30,
	2023				2022
	VUL		IUL		VUL		IUL
	(in millions)
Balance, beginning of period	$	159	$	157	$	118	$	94
Capitalization	27		33		23		36
Amortization	(5)		(5)		(4)		(4)
Balance, end of period	$	181	$	185	$	137	$	126

The following table presents a reconciliation of DAC to the balance sheet:

	June 30, 2023		December 31, 2022
	(in millions)
VUL	$	433	$	410
IUL	294		296
GMxB Core	72		40
Investment Edge	12		1
SCS	127		13
Other	9		—
Total	$	947	$	760

Annually, or as circumstances warrant, we will review the associated decrements assumptions. (i.e. mortality and lapse) based on our multi-year average of companies experience with actuarial judgements to reflect other observable industry trends. In addition to DAC, the Unearned Revenue Liability and Sales Inducement Asset (“SIA”) use similar techniques and quarterly update processes for balance amortization.

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FAIR VALUE DISCLOSURES

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES

U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value:

Level 1    Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2    Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data.

Level 3    Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability.

The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument.

Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. As of June 30, 2023 and December 31, 2022, no assets or liabilities were required to be measured at fair value on a non-recurring basis.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

Fair Value Measurements as of June 30, 2023

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate (1)	$	—	$	4,020	$	61	$	4,081
U.S. Treasury, government and agency	—		14		—		14
States and political subdivisions	—		43		—		43
Foreign governments	—		30		—		30
Residential mortgage-backed	—		411		—		411
Asset-backed (2)	—		1,076		—		1,076
Commercial mortgage-backed	—		149		—		149
Total fixed maturities, AFS	—		5,743		61		5,804
Other equity investments	20		18		—		38
Other invested assets:
Options	—		379		—		379
Total other invested assets	—		379		—		379
Cash equivalents	1,028		—		—		1,028
Funds withheld receivable (3) (5)	—		—		(136)		(136)
Purchased market risk benefits	—		—		10		10
Assets for market risk benefits	—		—		26		26
Separate Accounts assets (4)	4,501		7		—		4,508
Total Assets	$	5,549	$	6,147	$	(39)	$	11,657
Liabilities:
Policyholders’ account balances:	—		—		—		—
SCS, MSO and IUL indexed features’ liability	—		7,347		—		7,347
Modco payable (5)	—		—		166		166
Liabilities for market risk benefits	—		—		7,363		7,363
Total Liabilities	$	—	$	7,347	$	7,529	$	14,876

______________

(1)Corporate fixed maturities includes both public and private issues.

(2)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(3)As discussed in Note 2 to these Financial Statements, the funds withheld receivable was created through a funds withheld and modified coinsurance agreement where the investments supporting the reinsurance agreement are withheld by and continue to reside on Equitable Financial’s consolidated balance sheet. This embedded derivative is valued as a total return swap with references to the fair value of the invested assets held by the Equitable Financial, which are primarily AFS securities.

(4)Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $1 million.

(5)The embedded derivative is partially reflected in funds withheld receivable and policyholders’ account balance. The portion within policyholders’ account balances relates to the non-insulated products assumed on a modified coinsurance basis and is reflected net of assumed liabilities on the balance sheet.

Fair Value Measurements as of December 31, 2022

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate (1)	$	—	$	2,040	$	18	$	2,058
U.S. Treasury, government and agency	—		14		—		14
States and political subdivisions	—		34		—		34
Residential mortgage-backed	—		6		—		6
Asset-backed (2)	—		41		—		41
Commercial mortgage-backed	—		65		—		65
Total fixed maturities, AFS	—		2,200		18		2,218
Other equity investments	—		19		—		19
Other invested assets:
Options	—		18		—		18
Total other invested assets	—		18		—		18
Cash equivalents	272		—		—		272
Funds withheld receivable	—		—		—		—
Purchased market risk benefits	—		—		13		13
Assets for market risk benefits	—		—		12		12
Separate Accounts assets (3)	3,367		7		—		3,374
Total Assets	$	3,639	$	2,244	$	43	$	5,926
Liabilities:
Policyholders’ account balances	—		—		—		—
SCS, SIO, MSO and IUL indexed features’ liability	—		87		—		87
Modco receivable	—		—		—		—
Liabilities for market risk benefits	—		—		15		15
Total Liabilities	$	—	$	87	$	15	$	102

______________

(1)Corporate fixed maturities includes both public and private issues.

(2)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(3)Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $1 million.

Public Fixed Maturities

The fair values of the Company’s public fixed maturities are generally based on prices obtained from independent valuation service providers and for which the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, the Company ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs.

Private Fixed Maturities

The fair values of the Company’s private fixed maturities are determined from prices obtained from independent valuation service providers. Prices not obtained from an independent valuation service provider are determined by using a discounted cash flow model or a market comparable company valuation technique. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other

factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model or a market comparable company valuation technique may also incorporate unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made.

Freestanding Derivative Positions

The net fair value of the Company’s freestanding derivative positions as disclosed in Note 4 of the Notes to these Financial Statements are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including overnight index swap curves, and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable.

Funds withheld receivable

Reinsurance agreements written on a funds withheld or modified coinsurance basis contain embedded derivatives. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by Equitable Financial. Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the reinsurance agreements that are held on Equitable Financial’s consolidated balance sheet.

Level Classifications of the Company’s Financial Instruments

Financial Instruments Classified as Level 1

Investments classified as Level 1 primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less and are carried at cost as a proxy for fair value measurement due to their short-term nature.

Financial Instruments Classified as Level 2

Investments classified as Level 2 are measured at fair value on a recurring basis and primarily include U.S. government and agency securities and certain corporate debt securities, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity.

Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. The Company’s AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors.

Certain Company products, such as IUL and the MSO fund available in some life contracts offer investment options which permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options, which depending on the product and on the index selected can currently have one, three, five or six year terms, provide for participation in the performance of specified indices, ETF or commodity price movement up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g., holding these segments

for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices, ETF or commodity prices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are accounted for as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers.

Financial Instruments Classified as Level 3

The Company’s investments classified as Level 3 primarily include corporate debt securities, such as private fixed maturities and asset-backed securities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification are fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data.

The Company has certain variable annuity contracts with GMDB, GMIB, GIB and GWBL and other features in-force that guarantee one of the following:

•Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals);

•Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals);

•Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages;

•Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include either a five year or an annual reset; or

•Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life.

The Company also issues certain benefits on its variable annuity products that are accounted for as market risk benefits carried at fair value and are also considered Level 3 for fair value leveling.

The GMIBNLG feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates applied to the contract’s benefit base if and when the contract account value is depleted and the NLG feature is activated. The optional GMIB feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates.

The GMWB feature allows the policyholder to withdraw at minimum, over the life of the contract, an amount based on the contract’s benefit base. The GWBL feature allows the policyholder to withdraw, each year for the life of the contract, a specified annual percentage of an amount based on the contract’s benefit base. The GMAB feature increases the contract account value at the end of a specified period to a GMAB base. The GIB feature provides a lifetime annuity based on predetermined annuity purchase rates if and when the contract account value is depleted.

This lifetime annuity is based on predetermined annuity purchase rates applied to a GIB base. The GMDB feature guarantees that the benefit paid upon death will not be less than a guaranteed benefit base. If the contract’s account value is less than the benefit base at the time a death claim is paid, the amount payable will be equal to the benefit base.

Purchased MRB assets, which are accounted for as market risk benefits carried at fair value are also considered Level 3 for fair value leveling. The Purchased MRB asset fair value reflects the present value of reinsurance premiums, net of recoveries, adjusted for risk margins and nonperformance risk over a range of market consistent economic scenarios while the MRB asset and liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to the MRB asset and liability over a range of market-consistent economic scenarios. 

The valuations of the Purchased MRB assets incorporate significant non-observable assumptions related to policyholder behavior, risk margins and projections of equity Separate Accounts funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its Purchased MRB asset after taking into account the effects of collateral arrangements. Incremental adjustment to the risk free curve for counterparty non-performance risk is made to the fair values of the Purchased MRB assets. Risk margins were applied to the non-capital markets inputs to the Purchased MRB valuations.

The Company also issues certain benefits on its variable annuity products that are accounted for as market risk benefits carried at fair value and are also considered Level 3. See Note 8 of the Notes to these Financial Statements for further description of our market risk benefits fair value.

The funds withheld embedded derivative receivable is determined based upon a total return swap technique referencing the fair value of the investments held under the reinsurance contract as collateral and requires certain unobservable inputs. The funds withheld embedded derivative are considered Level 3 in the fair value hierarchy.

Transfers of Financial Instruments Between Levels 2 and 3

During the six months ended June 30, 2023, there were $10 million AFS fixed maturities transferred out of Level 3 and into Level 2 and no AFS fixed maturities transferred out of Level 2 and into Level 3. These transfers in the aggregate represent approximately 0.7% of total equity as of June 30, 2023.

During the six months ended June 30, 2022, there were $5 million AFS fixed maturities transferred out of Level 3 and into Level 2 or AFS fixed maturities transferred out of Level 2 and into Level 3. These transfers in the aggregate represent approximately 1.7% of total equity as of June 30, 2022.

The tables below present reconciliations for Level 3 assets and liabilities and changes in unrealized gains (losses) for the three and six months ended June 30, 2023 and 2022, respectively. Not included below are the changes in balances related to market risk benefits and purchased market risk benefits level 3 assets and liabilities, which are included in Note 8 of the Notes to these Financial Statements.

Level 3 Instruments - Fair Value Measurements

	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
	Corporate		Funds Withheld Receivable		Modco Payable		Corporate		Funds Withheld Receivable		Modco Payable
	(in millions)
Balance, beginning of period	$	37	$	—	$	—	$	11	$	—	$	—
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income	—		—		—		—		—		—
Net derivative gains (losses) (1)	—		(136)		166		—		—		—
Total realized and unrealized gains (losses)	—		(136)		166		—		—		—
Other comprehensive income (loss)	—		—		—		—		—		—
Purchases	24		—		—		11		—		—
Sales	—		—		—		(1)		—		—
Transfers into Level 3 (1)	—		—		—		—		—		—
Transfers out of Level 3 (1)	—		—		—		(5)		—		—
Balance, end of period	$	61	$	(136)	$	166	$	16	$	—	$	—
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period	$	—	$	—	$	—	$	—	$	—	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period.	$	—	$	—	$	—	$	—	$	—	$	—

	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
	Corporate		Funds Withheld Receivable		Modco Payable		Corporate		Funds Withheld Receivable		Modco Payable
	(in millions)
Balance, beginning of period	$	18	$	—	$	—	$	11	$	—	$	—
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income	—		—		—		—		—		—
Net derivative gains (losses) (1)	—		(136)		166		—		—		—
Total realized and unrealized gains (losses)	—		(136)		166		—		—		—
Other comprehensive income (loss)	—		—		—		(1)		—		—
Purchases	53		—		—		12		—		—
Sales	—		—		—		(1)		—		—
Transfers into Level 3 (1)	—		—		—		—		—		—
Transfers out of Level 3 (1)	(10)		—		—		(5)		—		—
Balance, end of period	$	61	$	(136)	$	166	$	16	$	—	$	—
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period	$	—	$	—	$	—	$	—	$	—	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period.	$	—	$	—	$	—	$	(1)	$	—	$	—

____

(1)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.

Quantitative and Qualitative Information about Level 3 Fair Value Measurements

The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of June 30, 2023 and December 31, 2022, respectively:

Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2023

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average
	(Dollars in millions)
Assets:(4)
Investments:
Fixed maturities, AFS:
Corporate	$	32	Matrix pricing  model	Spread over benchmark	20 bps - 320 bps	65 bps
Purchased MRB asset (1)	10		Discounted cash flow	Lapse rates Withdrawal rates Annuitization rates Non-performance risk (bps) Mortality: Ages 0-40 Ages 41-60 Ages 61-115	N/A	N/A

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average
	(Dollars in millions)
Liabilities:
Direct MRB (1) (2) (3)	$	7,337	Discounted cash flow	Non-performance risk (bps) Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115	55 bps - 192 bps 0.26% - 35.42% 0.00% - 10.93% 0.04% - 100.00% 0.01% - 0.17% 0.06% - 0.52% 0.32% - 40.00%	55 bps 3.81% 0.65% 3.13% 2.56% (same for all ages) (same for all ages)

(1)Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. GMIB utilization rates were developed as a function of the GMIB benefit base.

(2)MRB assets are shown net of MRB liabilities. Net amount is made up of $26 million of MRB assets and $7,363 million of MRB liabilities.

(3)Includes Core products.

(4)Funds withheld receivable that contain embedded derivatives held at fair value are excluded from the tables above. The funds withheld receivable embedded derivative utilizes a total return swap technique which incorporates the fair value of the invested assets supporting the reinsurance agreement as a component of the valuation.

    Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2022

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average
	(Dollars in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate	$	4	Matrix pricing model	Spread over benchmark	245 bps - 245 bps	245 bps
Purchased MRB asset (1) (2) (4)	13		Discounted cash flow	Lapse rates Withdrawal rates Annuitization Non-performance risk (bps) Mortality: Ages 0-40 Ages 41-60 Ages 61-115	N/A	N/A
Liabilities:
Direct MRB (1) (2) (3) (4)	$	3	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115	157 bps 0.35% - 35.42% 0.20% - 1.24% 0.04% - 100.00% 0.01% - 0.17% 0.06% - 0.52% 0.32% - 40.00%	157 bps 4.35% 1.22% 3.27% 1.08% (same for all ages) (same for all ages)

(1)Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.

(2)Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. GMIB utilization rates were developed as a function of the GMIB benefit base.

(3)MRB liabilities are shown net of MRB assets. Net amount is made up of $15 million of MRB liabilities and $12 million of MRB assets.

(4)Includes Core products.

Level 3 Financial Instruments for which Quantitative Inputs are Not Available

Certain Privately Placed Debt Securities with Limited Trading Activity

Excluded from the tables above as of June 30, 2023 and December 31, 2022, respectively, are approximately $29 million and $14 million of Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. These investments primarily consist of certain

privately placed debt securities with limited trading activity, and their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. Significant increases or decreases in the fair value amounts received from these pricing sources may result in the Company’s reporting significantly higher or lower fair value measurements for these Level 3 investments.

•The fair value of private placement securities is determined by application of a matrix pricing model or a market comparable company value technique. The significant unobservable input to the matrix pricing model valuation technique is the spread over the industry-specific benchmark yield curve. Generally, an increase or decrease in spreads would lead to directionally inverse movement in the fair value measurements of these securities. The significant unobservable input to the market comparable company valuation technique is the discount rate. Generally, a significant increase (decrease) in the discount rate would result in significantly lower (higher) fair value measurements of these securities.

Market Risk Benefits

Significant unobservable inputs with respect to the fair value measurement of the Purchased MRB assets and MRB liabilities identified in the table above are developed using Company data. Future policyholder behavior is an unobservable market assumption and as such all aspects of policyholder behavior are derived based on recent historical experience. These policyholder behaviors include lapses, pro-rata withdrawals, dollar for dollar withdrawals, GMIB utilization, deferred mortality and payout phase mortality. Many of these policyholder behaviors have dynamic adjustment factors based on the relative value of the rider as compared to the account value in different economic environments. This applies to all variable annuity related products; products with GMxB riders including but not limited to GMIB, GMDB and GWL.

Lapse rates are adjusted at the contract level based on a comparison of the value of the embedded GMxB rider and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. For valuing Purchased MRB assets and MRB liabilities, lapse rates vary throughout the period over which cash flows are projected.

Carrying Value of Financial Instruments Not Otherwise Disclosed in Note 3 and Note 4 of Notes to Financial Statements

The carrying values and fair values as of June 30, 2023 and December 31, 2022 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Financial Statements are presented in the table below.

Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed

	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
June 30, 2023:
Mortgage loans on real estate	$	17	$	—	$	—	$	15	$	15
Policy loans	$	260	$	—	$	—	$	265	$	265
Funds withheld receivable	$	10,751	$	—	$	—	$	10,751	$	10,751
Modco receivable	$	30,022	$	—	$	—	$	30,022	$	30,022
Policyholders’ liabilities: Investment contracts	$	110	$	—	$	—	$	101	$	101
Separate Accounts liabilities	$	267	$	—	$	—	$	267	$	267
December 31, 2022:
Mortgage loans on real estate	$	17	$	—	$	—	$	15	$	15
Policy loans	$	244	$	—	$	—	$	248	$	248
Funds withheld receivable	$	—	$	—	$	—	$	—	$	—
Modco receivable	$	—	$	—	$	—	$	—	$	—
Policyholders’ liabilities: Investment contracts	$	115	$	—	$	—	$	106	$	106
Separate Accounts liabilities	$	—	$	—	$	—	$	—	$	—

Mortgage Loans on Real Estate

Fair values for commercial mortgage loans on real estate are measured by discounting future contractual cash flows to be received on the mortgage loan using interest rates at which loans with similar characteristics and credit quality would be made. The discount rate is derived based on the appropriate U.S. Treasury rate with a like term to the remaining term of the loan to which a spread reflective of the risk premium associated with the specific loan is added. Fair values for mortgage loans anticipated to be foreclosed and problem mortgage loans are limited to the fair value of the underlying collateral, if lower.

Policy Loans

The fair value of policy loans is calculated by discounting expected cash flows based upon the U.S. Treasury yield curve and historical loan repayment patterns.

Policyholder Liabilities - Investment Contracts and Separate Account Liabilities

The fair values for deferred annuities and certain annuities, which are included in policyholders’ account balances and liabilities for investment contracts with fund investments in Separate Accounts are estimated using projected cash flows discounted at rates reflecting current market rates. Significant unobservable inputs reflected in the cash flows include lapse rates and withdrawal rates. Incremental adjustments may be made to the fair value to reflect non-performance risk. Certain other products such as the Company’s association plans contracts, supplementary contracts not involving life contingencies, Access Accounts and Escrow Shield Plus product reserves are held at book value.

Financial Instruments Exempt from Fair Value Disclosure or Otherwise Not Required to be Disclosed

Exempt from Fair Value Disclosure Requirements

Certain financial instruments are exempt from the requirements for fair value disclosure, such as insurance liabilities other than financial guarantees.

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LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS

LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS

The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts for the six months ended June 30, 2023 and 2022.

The payout annuities result from annuitization of current contracts. Inflows are the liquidation of the account values not premiums:

	Six Months Ended June 30, 2022
	2023		2022
	Payout-Legacy
	(in millions)
Present Value of Expected Future Policy Benefits
Balance, beginning of period	$	—	$	—
Beginning balance of original discount rate	—		—
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	—		—
Adjusted beginning of period balance	—		—
Issuances	120		—
Interest accrual	—		—
Benefits payments	—		—
Ending balance at original discount rate	120		—
Effect of changes in discount rate assumptions	(1)		—
Balance, end of period	$	119	$	—
Net liability for future policy benefits	$	119	$	—
Less: Reinsurance recoverable	—		—
Net liability for future policy benefits, after reinsurance recoverable	$	119	$	—
Weighted-average duration of liability for future policyholder benefits (years)	7.6		0

The following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Reconciliation
Payout - Legacy	$	119
UL (1)	322
Other (2)	308
Subtotal	749
Other policy funds	460
Grand total	$	1,209

______________

(1)Represents the SOP NLG Rider on UL contracts assumed from Equitable Financial.

(2)Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits.

	December 31, 2022
	(in millions)
Reconciliation
Universal Life (1)	$	58
Other (2)	220
Future policyholder benefits, total	278
Other policyholder liabilities	391
Total	$	669

______________

(1)Represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Internal Reinsurance Transaction described further in Note 1, these are no longer material and are not disclosed separately.

(2)Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits.

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
	(in millions)
Payout-Legacy
Expected future benefit payments and expenses (undiscounted)	$	174	$	—
Expected future gross premiums (undiscounted)	—		—
Expected future benefit payments and expenses (discounted)	117		—
Expected future gross premiums (discounted)	—		—

The following tables provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	Gross Premium				Interest Accretion
	(in millions)
Revenue and Interest Accretion
Payout - Legacy (1)	$	21	$	—	$	—	$	—
Total	$	21	$	—	$	—	$	—

The following table provides the weighted average interest rates for the liability for future policy benefits as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
Weighted Average Interest Rate
Payout-Legacy
Interest accretion rate	5.5	%	—	%
Current discount rate	5.6	%	—	%

The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30,
	2023		2022
	UL (1)		Universal Life (2)
	(Dollars in millions)
Balance, beginning of period	$	—	$	57
Beginning balance before AOCI adjustments	—		55
Effect of changes in interest rate and cash flow assumptions and model changes	—		—
Effect of actual variances from expected experience	—		(1)
Adjusted beginning of period balance	—		54
Issuances (3)	322		—
Interest accrual	—		1
Net assessments collected	—		5
Benefit payments	—		—
Ending balance before shadow reserve adjustments	322		60
Effect of shadow reserve adjustment	—		(7)
Balance, end of period	$	322	$	53
Net liability for additional liability	$	322	$	53
Effect of reserve adjustment recorded in AOCI	—		—
Net liability for additional liability, after reinsurance recoverable	$	322	$	53
Weighted-average duration of additional liability - death benefit (years)	18.6		33.5

______________

(1)The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial.

(2)The 2022 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 1, these are no longer material and are not disclosed separately.

(3)Issuances represent the UL SOP NLG business assumed from Equitable Financial on April 1, 2023.

The following tables provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities for the six months ended June 30, 2023 and 2022.

	Six Months Ended June 30, 2023
	Assessments		Interest Accretion
	(in millions)
Revenue and Interest Accretion
UL (1)	$	258	$	4
Total	$	258	$	4

_____________

(1)The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial.

	Six Months Ended June 30, 2022
	Assessments		Interest Accretion
Revenue and Interest Accretion
Universal Life	9		1
Total	$	9	$	1

___________

(1)The 2022 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 1, these are no longer material and are not disclosed separately.

	Six Months Ended June 30,
	2023		2022
Weighted Average Interest Rate
Universal Life	4.5	%	5.5	%
Interest accretion rate	4.5	%	5.5	%

INSURANCE STATUTORY FINANCIAL INFORMATION

Prescribed and Permitted Accounting Practices

As of June 30, 2023, the following prescribed practice resulted in surplus that is different from the statutory surplus that would have been reported had NAIC statutory accounting practices been applied.

During 2022, Equitable Life Financial Insurance Company of America received approval from the Arizona Department of Insurance and Financial Institutions pursuant to A.R.S. 20-515 for Separate Account No. 68A (“SA 68A”) for our Structured Capital Strategies product, Separate Account No. 69A (“SA 69A”) for our EQUI-VEST product Structured Investment Option and Separate Account No. 71A (“SA 71A”) for our Investment Edge Structured Investment Option, to permit us to use book value as the accounting basis of these three non-insulated Separate Accounts instead of fair value in accordance with the NAIC Accounting and Practices and Procedures Manual to align with how we manage and measure our overall general account asset portfolio. The impact of the application is a decrease of approximately $36 million in statutory surplus as of June 30, 2023.

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MARKET RISK BENEFITS

6 Months Ended

Jun. 30, 2023

Market Risk Benefit [Abstract]

MARKET RISK BENEFITS

MARKET RISK BENEFITSThe following table presents the balances and changes to the balances for the market risk benefits for the GMxB benefits on deferred variable annuities for the three and six months ended June 30, 2023 and 2022

	Three Months Ended June 30,
	2023				2022
	GMxB Core		GMxB Legacy		GMxB Core		GMxB Legacy
	(Dollars in millions)
Balance, beginning of period	$	(14)	$	—	$	(7)	$	—
Balance BOP before changes in the instrument specific credit risk	(8)		—		(2)		—
Model changes and effect of changes in cash flow assumptions	—		—		—		—
Actual market movement effect	(108)		(264)		10		—
Interest accrual	9		68		—		—
Attributed fees accrued (1)	101		95		1		—
Benefit payments	(12)		(153)		—		—
Actual policyholder behavior different from expected behavior	6		(4)		1		—
Changes in future economic assumptions	(224)		(364)		(12)		—
Issuances (2)	1,292		6,865		—		—
Balance EOP before changes in the instrument-specific credit risk	1,056		6,243		(2)		—
Changes in the instrument-specific credit risk (3)	(9)		(6)		(8)		—
Balance, end of period	$	1,047	$	6,237	$	(10)	$	—
Weighted-average age of policyholders (years)	64.3		73.5		59.7		—
Net amount at risk	$	3,079	$	10,464	$	11	$	—

_______________

(1)Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Financial Statements.

(3)Changes are recorded in OCI.

	Six Months Ended June 30,
	2023				2022
	GMxB Core		GMxB Legacy		GMxB Core		GMxB Legacy
	(Dollars in millions)
Balance, beginning of period	$	(9)	$	—	$	—	$	—
Balance BOP before changes in the instrument specific credit risk	(8)		—		1		—
Model changes and effect of changes in cash flow assumptions	—		—		—		—
Actual market movement effect	(113)		(264)		14		—
Interest accrual	9		68		—		—
Attributed fees accrued (1)	102		95		1		—
Benefit payments	(12)		(153)		—		—
Actual policyholder behavior different from expected behavior	8		(4)		2		—
Changes in future economic assumptions	(222)		(364)		(19)		—
Issuances (2)	1,292		6,865		(1)		—
Balance EOP before changes in the instrument-specific credit risk	1,056		6,243		(2)		—
Changes in the instrument-specific credit risk (3)	(9)		(6)		(8)		—
Balance, end of period	$	1,047	$	6,237	$	(10)	$	—
Weighted-average age of policyholders (years)	64.3		73.5		59.7		—
Net amount at risk	$	3,079	$	10,464	$	11	$	—

_______________

(1)Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Financial Statements.

(3)Changes are recorded in OCI.

The following table reconciles market risk benefits by the amounts in an asset position and amounts in a liability position to the market risk amounts in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023										December 31, 2022
	MRB Asset		MRB Liability		Net MRB		Purchased MRB		Total		MRB Asset		MRB Liability		Net MRB		Purchased MRB		Total
	(in millions)
GMxB Core	$	(25)	$	1,072	$	1,047	$	—	$	1,047	$	(12)	$	3	$	(9)	$	—	$	(9)
GMxB Legacy	—		6,237		6,237		—		6,237		—		—		—		—		—
Other (1)	(1)		54		53		(10)		43		—		12		12		(13)		(1)
Total	$	(26)	$	7,363	$	7,337	$	(10)	$	7,327	$	(12)	$	15	$	3	$	(13)	$	(10)

______________

(1)    Other, for June 30, 2023, primarily reflects Individual EquiVest. Other, for December 31, 2022, primarily reflects Protective Life Reinsured business.

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POLICYHOLDER ACCOUNT BALANCES

6 Months Ended

Jun. 30, 2023

Policyholder Account Balance [Abstract]

POLICYHOLDER ACCOUNT BALANCES

POLICYHOLDER ACCOUNT BALANCES    

The following table summarizes the balances and changes in policyholders’ account balances for the six months ended June 30, 2023:

	Six Months Ended June 30, 2023
	UL		IUL		EI		EG		SCS (1)
	(Dollars in millions)
Balance, beginning of period	$	—	$	1,962	$	—	$	—	242
Issuances (2)	1,208		349		2,213		6,817		31,189
Premiums received	122		119		3		93		—
Policy charges	(128)		(93)		—		(1)		(2)
Surrenders and withdrawals	(4)		(25)		(74)		(230)		(606)
Benefit payments	(5)		(5)		(9)		(7)		(55)
Net transfers from (to) separate account	—		—		(12)		45		2,823
Interest credited (3)	9		73		16		69		2,212
Balance, end of period	$	1,202	$	2,380	$	2,137	$	6,786	$	35,803
Weighted-average crediting rate	3.32%		2.34%		2.92%		2.31%		N/A
Net amount at risk (4)	$	16,580	$	19,438	$	107	$	17	$	11
Cash surrender value	$	1,044	$	1,790	$	2,130	$	6,713	$	32,495

______________

(1)SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Financial Statements.

(3)SCS includes amounts related to the change in embedded derivative.

(4)For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder.

The following table summarizes the balances and changes in policyholders’ account balances for the six months ended June 30, 2022:

	Six Months Ended June 30, 2022
	IUL		VUL		GMxB Core		Reinsured (2)
	(Dollars in millions)
Balance, beginning of period	$	1,973	$	614	$	13	$	866
Issuances	—		—		—		—
Premiums received	127		9		30		18
Policy charges	(89)		(14)		(1)		(12)
Surrenders and withdrawals	(12)		—		—		(39)
Benefit payments	(4)		(4)		—		(6)
Net transfers from (to) separate account	—		26		(27)		2
Interest credited (3)	(54)		7		—		18
Other	—		—		—		—
Balance, end of period	$	1,941	$	638	$	15	$	847
Weighted-average crediting rate	2.18%		3.52%		1.00%		4.27%
Net amount at risk (4)	$	18,260	$	28,861	$	11	$	4,272
Cash surrender value	$	1,477	$	518	$	16	$	846

___________

(1)SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account.

(2)Reinsured primarily reflects Protective Life reinsured business.

(3)SCS includes amounts related to the change in embedded derivative.

(4)For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder.

The following table reconciles the policyholders account balances to the policyholders’ account balance liability in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Policyholders’ account balance reconciliation
UL	$	1,202
IUL	2,380
EI	2,137
EG	6,786
SCS	35,803
Other (1)	(27,294)
Total	$	21,014

______________

(1) Includes $(30) billion of assumed fair value of the modco reinsurance with Equitable Financial.

	December 31, 2022
	(in millions)
Policyholders’ account balance reconciliation
IUL	$	1,962
VUL	655
GMxB Core	27
IE	7
SCS	242
Reinsured	819
Other	39
Total	$	3,751

The following table presents the account values by range of guaranteed minimum crediting rates and the related range of the difference in basis points, between rates being credited policyholders and the respective guaranteed minimums as of June 30, 2023 and December 31, 2022:

June 30, 2023
Product (1)	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
		(in millions)
Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
	1.51% - 2.50%	76		13		476		130		695
	Greater than 2.50%	—		506		—		—		506
	Total	$	76	$	519	$	476	$	130	$	1,201

June 30, 2023
Product (1)	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
		(in millions)
Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
Indexed Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
	1.51% - 2.50%	1,125		596		559		—		2,280
	Greater than 2.50%	—		—		—		—		—
	Total	$	1,125	$	596	$	559	$	—	$	2,280
EQUI-VEST Individual	0.00% - 1.50%	$	51	$	218	$	—	$	—	$	269
	1.51% - 2.50%	44		—		—		—		44
	Greater than 2.50%	1,823		—		—		—		1,823
	Total	$	1,918	$	218	$	—	$	—	$	2,136
SCS	Products with either a fixed rate or no guaranteed minimum	N/A		N/A		N/A		N/A		N/A
EQUI-VEST Group	0.00% - 1.50%	$	497	$	1,982	$	23	$	315	$	2,817
	1.51% - 2.50%	258		—		—		—		258
	Greater than 2.50%	2,844		—		1		—		2,845
	Total	$	3,599	$	1,982	$	24	$	315	$	5,920

December 31, 2022
Product	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above		51 Basis Points-150 Basis Points Above		Greater Than 150 Basis Points Above		Total
		(in millions)
Indexed Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
	1.51% - 2.50%	1,202		666		73		—		1,941
	Greater than 2.50%	—		—		—		—		—
	Total	$	1,202	$	666	$	73	$	—	$	1,941
Variable Universal Life	0.00% - 1.50%	$	18	$	30	$	2	$	—	$	50
	1.51% - 2.50%	73		12		—		—		85
	Greater than 2.50%	460		—		2		—		462
	Total	$	551	$	42	$	4	$	—	$	597
Investment Edge	0.00% - 1.50%	$	7	$	—	$	—	$	—	$	7
	1.51% - 2.50%	—		—		—		—		—
	Greater than 2.50%	—		—		—		—		—
	Total	$	7	$	—	$	—	$	—	$	7
GMxB Core	0.00% - 1.50%	$	32	$	—	$	—	$	—	$	32
	1.51% - 1.51%	—		—		—		—		—
	Greater than 2.50%	—		—		—		—		—
	Total	$	32	$	—	$	—	$	—	$	32

Separate Account - Summary

The following table presents the balances of and changes in separate account liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30, 2023
	VUL		GMxB Core		IE		Reinsured (2)
Balance, beginning of period	1,653		$	756	$	26	$	913
Premiums and deposits	190		439		270		11
Policy charges	(64)		(4)		—		(17)
Surrenders and withdrawals	(23)		(11)		(2)		(37)
Benefit payments	(5)		(3)		—		(11)
Investment performance (1)	192		79		4		141
Net transfers from (to) general account	(25)		65		(163)		(1)
Other charges	—		—		—		—
Balance, end of period	$	1,918	$	1,321	$	135	$	999
Cash surrender value	$	1,590	$	1,221	$	129	N/A

_______________

(1)Investment performance is reflected net of mortality and expense fees.

(2)Reinsured primarily reflects Protective Life reinsured ceded business.

	Six Months Ended June 30, 2022
	VUL		GMxB Core		Reinsured (1)
	(in millions)
Balance, beginning of period	$	1,832	$	315	$	1,244
Premiums and deposits	177		166		10
Policy charges	(60)		(1)		(14)
Surrenders and withdrawals	(16)		(3)		(24)
Benefit payments	(3)		—		(5)
Investment performance (2)	(361)		(74)		(141)
Net transfers from (to) general account	(26)		27		(2)
Other charges	—		—		—
Balance, end of period	$	1,543	$	430	$	1,068
Cash surrender value	$	1,241	$	392	N/A

_______________

(1)Reinsured primarily reflects Protective Life reinsured ceded business.

(2)Investment performance is reflected net of mortality and expense fees.

The following table reconciles the separate account liabilities to the separate account liability balance in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Separate Account Reconciliation
VUL	$	1,918
GMxB Core	1,321
IE	135
Reinsured	999
Other	135
Total	$	4,508

	December 31, 2022
	(in millions)
Separate Account Reconciliation
VUL	$	1,653
GMxB Core	756
IE	26
Reinsured	913
Other	26
Total	$	3,374

The following table presents the aggregate fair value of separate account assets by major asset category as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	Life Insurance & Employee Benefits Products		Individual Variable Annuity Products		Employer - Sponsored Products		Other		Legacy Segment		Total
	(in millions)
Asset Type
Mutual Funds	$	2,414	$	2,081	$	—	$	13	$	—	$	4,508
Total	$	2,414	$	2,081	$	—	$	13	$	—	$	4,508

	December 31, 2022
	Life Insurance & Employee Benefits Products			Individual Variable Annuity Products			Employer - Sponsored Products			Other			Legacy Segment		Total
	(in millions)
Asset Type
Mutual Funds	$	2,096	—	$	1,265	—	$	—	—	$	13	—	$	—	$	3,374
Total	$	2,096		$	1,265		$	—		$	13		$	—	$	3,374

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INCOME TAXES

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income tax expense for the three and six months ended June 30, 2023 and 2022 was computed using an estimated annual effective tax rate (“ETR”), with discrete items recognized in the period in which they occur. The estimated ETR is revised, as necessary, at the end of successive interim reporting periods.

During the fourth quarter of 2022, the Company established a valuation allowance of $85 million against its deferred tax asset related to unrealized capital losses in the AFS securities portfolio. For the three month period ended March 31, 2023, the Company recorded a decrease to the valuation allowance of $16 million due to a decrease in the portfolio’s unrealized capital loss. This adjustment was allocated to other comprehensive income.

As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. During the three-months ended March 31, 2023, the Company increased its available future liquidity by increasing borrowing capacity and amending certain counterparty agreements. As a result of these actions, the Company was able to assert its ability and intent to hold the underlying securities in its AFS portfolio to recovery. Based on all available evidence, the Company concluded the deferred tax assets related to unrealized tax capital losses are more-likely-than-not to be realized and that a valuation allowance was not necessary. The remaining release of the valuation allowance of $69 million was recorded in net income for the three months ended March 31, 2023.

The Company uses the aggregate portfolio approach related to the stranded or disproportionate income tax effects in accumulated other comprehensive income related to AFS securities. Under this approach, the disproportionate tax effect remains intact as long as the investment portfolio remains.

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RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONSOn May 17, 2023, Equitable America entered into a reinsurance agreement with Equitable Financial, effective April 1, 2023. See Note 1 and Note 16 of the Notes to these Financial Statements for further details.

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EQUITY

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

EQUITY

EQUITY AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of June 30, 2023 and December 31, 2022 is as follows:

	June 30, 2023		December 31, 2022
	(in millions)
Unrealized gains (losses) on investments	$	(362)	$	(383)
Market risk benefits - instrument-specific credit risk component	16		1
Liability or future policy benefits - current discount rate component	$	1	$	—
Accumulated other comprehensive income (loss)	$	(345)	$	(382)

The components of OCI, net of taxes for the three and six months ended June 30, 2023 and 2022, follow:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Change in net unrealized gains (losses) on investments:
Net unrealized gains (losses) arising during the period	$	(51)	$	(159)	$	21	$	(335)
(Gains) losses reclassified into net income (loss) during the period (1)	—		2		4		3
Net unrealized gains (losses) on investments	(51)		(157)		25		(332)
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other	—		4		(1)		8
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(28), $(41), $(12) and $(86)).	(51)		(153)		24		(324)
Change in LFPB discount rate and MRB credit risk
Market risk benefits - change in instrument-specific credit risk (net of deferred income tax expense (benefit) of $2, $1, $3 and $2).	7		3		12		8
Liability for future policy benefits - change in current discount rate (net of deferred income tax expense (benefit) of $—, $—, $—, and $—)	1		—		1		—
Other comprehensive income (loss)	$	(43)	$	(150)	$	37	$	(316)

____________

(1)See “Reclassification adjustment” in Note 3 of the Notes to these Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $(2) million, $(1) million, $(1) million and $(1) million for the three and six months ended June 30, 2023 and 2022, respectively.

Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and credit losses of AFS securities and are included in total investment gains (losses), net on the statements of income (loss). Amounts presented in the table above are net of tax.

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COMMITMENTS AND CONTINGENT LIABILITIES

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

COMMITMENTS AND CONTINGENT LIABILITIES

Litigation

Litigation, regulatory and other loss contingencies arise in the ordinary course of the Company’s activities. The Company is a defendant in litigation matters arising from the conduct of its business. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek, or they may be required only to state an amount sufficient to meet a court’s jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim.

The outcome of a litigation or regulatory matter is difficult to predict, and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have

a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period.

For some matters, the Company is able to estimate a range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of June 30, 2023, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $5 million.

For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company’s accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews.

Funding Agreement-Backed Commercial Paper Program

In May 2023, the Company established a funding agreement-backed commercial paper program (the “FABCP Program”), pursuant to which a special purpose limited liability company (the “SPLLC”) may issue commercial paper and deposit the proceeds with the Company pursuant to a funding agreement issued by the Company to the SPLLC. The current maximum aggregate principal amount permitted to be outstanding at any one time under the FABCP Program is $1.0 billion. The Company had $0 outstanding as of June 30, 2023.

Guarantees and Other Commitments

The Company has no outstanding commitments under existing mortgage loans or mortgage loan commitment agreements at June 30, 2023.

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INSURANCE STATUTORY FINANCIAL INFORMATION

6 Months Ended

Jun. 30, 2023

Insurance Statutory Financial Information [Abstract]

INSURANCE STATUTORY FINANCIAL INFORMATION

LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS

The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts for the six months ended June 30, 2023 and 2022.

The payout annuities result from annuitization of current contracts. Inflows are the liquidation of the account values not premiums:

	Six Months Ended June 30, 2022
	2023		2022
	Payout-Legacy
	(in millions)
Present Value of Expected Future Policy Benefits
Balance, beginning of period	$	—	$	—
Beginning balance of original discount rate	—		—
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	—		—
Adjusted beginning of period balance	—		—
Issuances	120		—
Interest accrual	—		—
Benefits payments	—		—
Ending balance at original discount rate	120		—
Effect of changes in discount rate assumptions	(1)		—
Balance, end of period	$	119	$	—
Net liability for future policy benefits	$	119	$	—
Less: Reinsurance recoverable	—		—
Net liability for future policy benefits, after reinsurance recoverable	$	119	$	—
Weighted-average duration of liability for future policyholder benefits (years)	7.6		0

The following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Reconciliation
Payout - Legacy	$	119
UL (1)	322
Other (2)	308
Subtotal	749
Other policy funds	460
Grand total	$	1,209

______________

(1)Represents the SOP NLG Rider on UL contracts assumed from Equitable Financial.

(2)Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits.

	December 31, 2022
	(in millions)
Reconciliation
Universal Life (1)	$	58
Other (2)	220
Future policyholder benefits, total	278
Other policyholder liabilities	391
Total	$	669

______________

(1)Represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Internal Reinsurance Transaction described further in Note 1, these are no longer material and are not disclosed separately.

(2)Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits.

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
	(in millions)
Payout-Legacy
Expected future benefit payments and expenses (undiscounted)	$	174	$	—
Expected future gross premiums (undiscounted)	—		—
Expected future benefit payments and expenses (discounted)	117		—
Expected future gross premiums (discounted)	—		—

The following tables provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	Gross Premium				Interest Accretion
	(in millions)
Revenue and Interest Accretion
Payout - Legacy (1)	$	21	$	—	$	—	$	—
Total	$	21	$	—	$	—	$	—

The following table provides the weighted average interest rates for the liability for future policy benefits as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
Weighted Average Interest Rate
Payout-Legacy
Interest accretion rate	5.5	%	—	%
Current discount rate	5.6	%	—	%

The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30,
	2023		2022
	UL (1)		Universal Life (2)
	(Dollars in millions)
Balance, beginning of period	$	—	$	57
Beginning balance before AOCI adjustments	—		55
Effect of changes in interest rate and cash flow assumptions and model changes	—		—
Effect of actual variances from expected experience	—		(1)
Adjusted beginning of period balance	—		54
Issuances (3)	322		—
Interest accrual	—		1
Net assessments collected	—		5
Benefit payments	—		—
Ending balance before shadow reserve adjustments	322		60
Effect of shadow reserve adjustment	—		(7)
Balance, end of period	$	322	$	53
Net liability for additional liability	$	322	$	53
Effect of reserve adjustment recorded in AOCI	—		—
Net liability for additional liability, after reinsurance recoverable	$	322	$	53
Weighted-average duration of additional liability - death benefit (years)	18.6		33.5

______________

(1)The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial.

(2)The 2022 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 1, these are no longer material and are not disclosed separately.

(3)Issuances represent the UL SOP NLG business assumed from Equitable Financial on April 1, 2023.

The following tables provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities for the six months ended June 30, 2023 and 2022.

	Six Months Ended June 30, 2023
	Assessments		Interest Accretion
	(in millions)
Revenue and Interest Accretion
UL (1)	$	258	$	4
Total	$	258	$	4

_____________

(1)The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial.

	Six Months Ended June 30, 2022
	Assessments		Interest Accretion
Revenue and Interest Accretion
Universal Life	9		1
Total	$	9	$	1

___________

(1)The 2022 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 1, these are no longer material and are not disclosed separately.

	Six Months Ended June 30,
	2023		2022
Weighted Average Interest Rate
Universal Life	4.5	%	5.5	%
Interest accretion rate	4.5	%	5.5	%

INSURANCE STATUTORY FINANCIAL INFORMATION

Prescribed and Permitted Accounting Practices

As of June 30, 2023, the following prescribed practice resulted in surplus that is different from the statutory surplus that would have been reported had NAIC statutory accounting practices been applied.

During 2022, Equitable Life Financial Insurance Company of America received approval from the Arizona Department of Insurance and Financial Institutions pursuant to A.R.S. 20-515 for Separate Account No. 68A (“SA 68A”) for our Structured Capital Strategies product, Separate Account No. 69A (“SA 69A”) for our EQUI-VEST product Structured Investment Option and Separate Account No. 71A (“SA 71A”) for our Investment Edge Structured Investment Option, to permit us to use book value as the accounting basis of these three non-insulated Separate Accounts instead of fair value in accordance with the NAIC Accounting and Practices and Procedures Manual to align with how we manage and measure our overall general account asset portfolio. The impact of the application is a decrease of approximately $36 million in statutory surplus as of June 30, 2023.

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UNPAID CLAIM AND CLAIM EXPENSES

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

UNPAID CLAIM AND CLAIM EXPENSES

UNPAID CLAIM AND CLAIM EXPENSESThe following summarizes the change in liability for unpaid claims and claim expenses:

Liability for Unpaid Claims and Claim Expenses

	Six Months Ended June 30,
	2023		2022
	(in millions)
Gross Balance, beginning of period	$	110	$	78
Less Reinsurance	36		23
Net Balance, beginning of period	74		55
Incurred Claims (net) Related to:
Current Period	121		88
Prior Period	(14)		9
Total Incurred	107		97
Paid Claims (net) Related to:
Current Period	65		49
Prior Period	33		27
Total Paid	98		76
Net Balance, end of period	83		76
Add Reinsurance	40		29
Gross Balance, end of period	$	123	$	105

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REINSURANCE

6 Months Ended

Jun. 30, 2023

Reinsurance Disclosures [Abstract]

REINSURANCE

REINSURANCE

The Company assumes and cedes reinsurance with other insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability.

The following table summarizes the effect of reinsurance:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
					(in millions)
Direct charges and fee income	$	92	$	78	$	178	$	151
Reinsurance assumed - Equitable Financial	345		—		345		—
Reinsurance ceded	(26)		(22)		(51)		(39)
Policy charges and fee income	$	411	$	56	$	472	$	112
Direct premiums	$	86	$	74	$	171	$	133
Reinsurance assumed - Equitable Financial	40		—		40		—
Reinsurance ceded	(14)		(14)		(30)		(24)
Premiums	$	112	$	60	$	181	$	109
Direct policyholders’ benefits	$	110	$	106	$	209	$	191
Reinsurance assumed - Equitable Financial	264		—		264		—
Reinsurance ceded	(39)		(24)		(59)		(35)
Policyholders’ benefits	$	335	$	82	$	414	$	156
Direct interest credited to policyholders’ account balances	$	42	$	32	$	74	$	77
Reinsurance assumed - Equitable Financial	151		—		151		—
Reinsurance ceded	(8)		(9)		(17)		(35)
Interest credited to policyholders’ account balances	$	185	$	23	$	208	$	42

Ceded Reinsurance

In 2013, the Company entered into the Reinsurance Agreement with Protective to reinsure an in-force book of life insurance and annuity policies written prior to 2004. In addition to the Reinsurance Agreement, the Company entered into a long-term administrative services agreement with Protective whereby Protective will provide all administrative and other services with respect to the reinsured business.

For business not reinsured with Protective, the Company generally reinsures its variable life and interest-sensitive life insurance policies on an excess of retention basis. The Company generally retains up to a maximum of $4 million of mortality risk on single-life policies and up to a maximum of $6 million of mortality risk on second-to die policies. For amounts applied for in excess of those limits, reinsurance is ceded to Equitable Financial up to a combined maximum of $20 million of risk on single-life policies and up to a maximum of $25 million on second-to die policies. For amounts issued in excess of these limits, reinsurance is typically obtained from unaffiliated third parties. These reinsurance arrangements obligate the reinsurers to pay a portion of any death claim in excess of the amount the Company retains in exchange for an agreed-upon premium.

Equitable America has a quota share arrangement with AXA Global Re (formerly AXA Cessions), assuming a percentage of excess Life/Disability/A&H business. The contract is now closed to new business.

Beginning in 2015, group short and long-term disability is being reinsured with Group Reinsurance Plus (GRP) via a quota share arrangement.

Assumed Reinsurance

On May 17, 2023, Equitable America entered into a Reinsurance Treaty with Equitable Financial, effective April 1, 2023. Pursuant to the Reinsurance Treaty, virtually all of Equitable Financial’s net retained General Account liabilities, including all of its net retained liabilities relating to the living benefit and death riders related to (i) its variable annuity contracts issued outside the State of New York prior to October 1, 2022 (and with respect to its EQUI-VEST variable annuity contracts, issued outside the State of New York prior to February 1, 2023) and (ii) certain universal life insurance policies issued outside the State of New York prior to October 1, 2022, were reinsured to Equitable America on a coinsurance funds withheld basis. See Note 1 to these Financial Statements for further details on the transaction.

There is a diverse pool of assets supporting the funds withheld and NI modco arrangement with Equitable Financial. The following table summarizes the composition of the pool of assets at June 30, 2023:

	June 30, 2023
	Carrying Value		Fair Value
	(in millions)
Fixed maturities	$	25,889	$	25,889
Mortgage loans on real estate	8,528		7,391
Policy loans	229		230
Other equity investments	245		245
Other invested assets (1)	7,249		7,249
Total assets supporting funds withheld	$	42,140	$	41,004

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REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2023

Accounting Changes and Error Corrections [Abstract]

REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

During the quarter ended September 30, 2022, the Company identified errors primarily related to the calculation of the deferred cost of reinsurance amortization. Specifically, the deferred cost of reinsurance as reflected on the balance sheet was overstated and operating expenses (deferred cost amortization) was understated commencing in the quarter ended December 31, 2019 with a cumulative impact of $14 million pre-tax. In accordance with SAB No. 108, management evaluated the impact of this error and concluded that previously issued financial statements were not materially misstated; however, the cumulative impact would be material to the quarter ended September 30, 2022 and annual period ending December 31, 2022 and accordingly, determined to revise previously reported financial statements for years ended December 31, 2021, 2020 and 2019 and for the three-month periods ended March 31, 2022 and 2021 and June 30, 2022 and 2021 and for the six-months periods ended June 30, 2022 and June 2021. As a result of the determination to revise previously issued financial statements for the amortization matter discussed above, management also has corrected other previously identified but uncorrected errors and errors recorded in incorrect periods including, (a) balance sheet gross up errors resulting from incorrectly calculating reserves relating to business which has been 100% ceded to reinsurers resulting in corrections to Future policy benefits and other policyholders’ liabilities and Amounts due from reinsurers; (b) the classification of a preferred stock investment of $25 million from AFS debt securities to equity securities and present previously recorded unrealized losses as net investment income (loss) rather than as a component of other comprehensive income in the amount of $2 million; and, (c) other immaterial errors.

The following tables present line items for prior period impacted financial statements that have been affected by the errors discussed above as well as the impact of the adoption of ASU 2018-12:

	Three Months Ended June 30, 2022										Six Months Ended June 30, 2022
	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised		As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised
	(in millions)
Statements of Income (Loss)
Benefits and other deductions
Other operating costs and expenses	$	22	$	(2)	$	20	$	1	$	21	$	43	$	(1)	$	42	$	2	$	44
Total benefits and deductions	177		(6)		171		1		172		338		(21)		317		2		319
Income (loss) from continuing operations, before income taxes	(12)		(20)		(32)		(1)		(33)		(34)		(23)		(57)		(2)		(59)
Income tax (expense) benefit from continuing operations	(1)		10		9		(1)		8		2		13		15		(1)		14
Net income (loss) from continuing operations	(13)		(10)		(23)		(2)		(25)		(32)		(10)		(42)		(3)		(45)
Net income (loss)	$	(13)	$	(10)	$	(23)	$	(2)	$	(25)	$	(32)	$	(10)	$	(42)	$	(3)	$	(45)

	Three Months Ended June 30, 2022										Six Months Ended June 30, 2022
	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised		As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised
	(in millions)
Statements of Comprehensive Income (Loss)
Net income (loss)	$	(13)	$	(10)	$	(23)	$	(2)	$	(25)	$	(32)	$	(10)	$	(42)	$	(3)	$	(45)
Comprehensive income (loss)	$	(150)	$	(23)	$	(173)	$	(2)	$	(175)	$	(319)	$	(40)	$	(359)	$	(3)	$	(361)

	Three Months Ended June 30, 2022
Statements of Equity:	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revision		As Revised
	(in millions)
Additional paid-in capital, beginning of year	$	680	$	—	$	680	$	1	$	681
Additional paid-in capital, end of period	681		—		681		1		682
Accumulated Deficit, beginning of year	(79)		(64)		(142)		(12)		(154)
Net income (loss)	(13)		(10)		(23)		(2)		(25)
Accumulated Deficit, end of period	(92)		(74)		(166)		(13)		(179)
Total equity, end of period	$	391	$	(92)	$	299	$	(11)	$	288

	Six Months Ended June 30, 2022
Statements of Equity:	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revision		As Revised
	(in millions)
Additional paid-in capital, beginning of year	$	679	$	—	$	679	$	1	$	680
Additional paid-in capital, end of year	681		—		681		1		682
Accumulated Deficit, beginning of year	(60)		(64)		(124)		(10)		(134)
Net income (loss)	(32)		(10)		(42)		(3)		(45)
Accumulated Deficit, end of year	(92)		(74)		(166)		(13)		(179)
Accumulated other comprehensive income (loss), beginning of year	86		12		98		—		98
Other comprehensive income (loss)	(287)		(30)		(317)		1		(316)
Total equity, end of year	$	391	$	(92)	$	299	$	(11)	$	288

	Six Months June 30, 2022
	As Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revision		As Revised
	(in millions)
Statement of Cash Flows:
Cash flow from operating activities:
Net income (loss)	$	(32)	$	(10)	$	(42)	$	(3)	$	(45)
Future policy benefits	4		—		4		13		17
Reinsurance recoverable	1		—		1		(13)		(12)
Current and deferred income taxes	(2)		(13)		(15)		1		(14)
Other, net	$	104	$	—	$	104	$	2	$	106

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income (loss)	$ 14	$ (25)	[1]	$ 77	$ (45)	[2]

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

Basis of Presentation

The unaudited interim financial statements (the “financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”).

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s financial statements included in the Recast 2022 Annual Report. Certain prior period amounts were adjusted to reflect the adoption of ASU 2018-12: Financial Services - Insurance (Topic 944).

The terms “second quarter 2023” and “second quarter 2022” refer to the three months ended June 30, 2023 and 2022, respectively. The terms “first six months of 2023” and “first six months of 2022” refer to the six months ended June 30, 2023 and 2022, respectively.

Adoption of New Accounting Pronouncements

Adoption of New Accounting Pronouncements

Description	Effect on the Financial Statement or Other Significant Matters
ASU 2018-12: Financial Services - Insurance (Topic 944)
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of Market Risk Benefits (“ MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement.	On January 1, 2023, the Company adopted the new accounting standard ASU 2018-12 using the modified retrospective approach, except for MRBs which will use the full retrospective approach. Refer to “Transition impact of ASU 2018-12, Financial Services- Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” section within this note for further details.

DAC

DAC

Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including employee fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred.

Contracts are measured on a grouped basis utilizing cohorts consistent with those used in the calculation of future policy benefit reserves. DAC is amortized on a constant level basis for the grouped contracts over the expected term of the contract. For life insurance products, DAC is amortized in proportion to the face amount in force. For annuity products DAC is amortized in proportion to policy counts. The constant level basis used for amortization determines the current period amortization considering both the current period’s actual experience and future projections. The amortization pattern is revised quarterly on a prospective basis. Amortization of DAC is included in Amortization of DAC, part of total benefits and other deductions.

For some products, policyholders can elect to modify product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. These transactions are known as internal replacements. If such modification substantially

changes the contract, the associated DAC is written off immediately through income and any new acquisition costs associated with the replacement contract are deferred.

Funds withheld receivable

Funds withheld receivable represents a receivable for amounts contractually withheld by ceding companies in accordance with funds withheld coinsurance (“funds withheld”) reinsurance agreements in which we are the reinsurer. The funds withheld receivable under reinsurance treaties includes the funds withheld embedded derivative receivable.

The reinsurance agreement between the Company and Equitable Financial written on a funds withheld and modified coinsurance basis contains embedded derivatives. We determined that the obligation to receive the total return on the assets funds withheld receivable, represents a total return swap with a floating rate leg. The fair value of embedded derivatives on funds withheld and modified coinsurance agreements is computed as the unrealized gain (loss) on the underlying assets and is included within funds withheld receivable on the balance sheets for assumed agreement. The change in the fair value of the embedded derivatives is recorded in net derivatives gains (losses) on the statements of income. Assumed earnings from the funds withheld receivable and changes in the fair value of embedded derivatives are reported in operating activities on the statements of cash flows. Contributions to and withdrawals from funds withheld receivable are reported in operating activities on the statements of cash flows.

For business assumed on a funds withheld or modified coinsurance basis, a funds withheld segregated portfolio, comprised of invested assets and other assets is maintained by the ceding entity, which is sufficient to support the current balance of statutory reserves. The fair value of the embedded derivative included in funds withheld is recorded as a funds withheld asset and any excess or shortfall in relation to statutory reserves is settled quarterly.

Funds Withheld Receivable

Funds withheld receivable

Funds withheld receivable represents a receivable for amounts contractually withheld by ceding companies in accordance with funds withheld coinsurance (“funds withheld”) reinsurance agreements in which we are the reinsurer. The funds withheld receivable under reinsurance treaties includes the funds withheld embedded derivative receivable.

The reinsurance agreement between the Company and Equitable Financial written on a funds withheld and modified coinsurance basis contains embedded derivatives. We determined that the obligation to receive the total return on the assets funds withheld receivable, represents a total return swap with a floating rate leg. The fair value of embedded derivatives on funds withheld and modified coinsurance agreements is computed as the unrealized gain (loss) on the underlying assets and is included within funds withheld receivable on the balance sheets for assumed agreement. The change in the fair value of the embedded derivatives is recorded in net derivatives gains (losses) on the statements of income. Assumed earnings from the funds withheld receivable and changes in the fair value of embedded derivatives are reported in operating activities on the statements of cash flows. Contributions to and withdrawals from funds withheld receivable are reported in operating activities on the statements of cash flows.

For business assumed on a funds withheld or modified coinsurance basis, a funds withheld segregated portfolio, comprised of invested assets and other assets is maintained by the ceding entity, which is sufficient to support the current balance of statutory reserves. The fair value of the embedded derivative included in funds withheld is recorded as a funds withheld asset and any excess or shortfall in relation to statutory reserves is settled quarterly.

Reinsurance

For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims.

For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as premiums ceded (assumed); and amounts due from reinsurers (amounts due to reinsurers) are established.

Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. As a result, we have netted the receivable and payable related to modified coinsurance agreements. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance.

Premiums, policy charges and fee income, and policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues.

For reinsurance contracts, reinsurance recoverable balances are generally calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities.

Ceded reinsurance transactions are recognized and measured in a manner consistent with underlying reinsured contracts, including using consistent assumptions. Assumed and ceded reinsurance contract rights and obligations are accounted for on a basis consistent with our direct contract. The reinsurance cost or benefit for traditional life non-participating and limited-payment contracts is recognized in proportion to the gross premiums of the underlying direct cohorts. The locked-in single A discount rate used to calculate the reinsurance cost or benefit is established at inception of the reinsurance contract. Changes to the single A discount rate are reflected in comprehensive income at each reporting date.

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within reinsurance deposit assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted.

Policyholders’ Account Balances and Future Policy Benefits and Other Policyholders’ Liabilities

Policyholders’ Account Balances

Policyholders’ account balances relate to contracts or contract features where the Company has no significant insurance risk. This liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date.

The reinsurance agreement between the Company and Equitable Financial written on a modified coinsurance basis contains embedded derivatives. We determined that the obligation to pay the total return on the assets the modified coinsurance,represents a total return swap with a floating rate leg. The fair value of embedded derivatives on the modified coinsurance agreement is computed as the unrealized gain (loss) and current period income on the underlying assets included within Policyholder account balances on the balance sheets for the assumed agreement. The change in the fair value of the embedded derivatives is recorded in net derivative gains (losses) on the statements of income. Assumed earnings from the modified coinsurance and changes in the fair value of embedded derivatives are reported in operating activities on the statements of cash flows. Contributions to and withdrawals from the Policyholder account balances are reported in financing activities on the statements of cash flows.

Future Policy Benefits and Other Policyholders’ Liabilities

For traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 3.5% to 4.5% of life insurance liabilities and a range of 4.5% to 5.5% for retained annuity liabilities.

For traditional life insurance policies and limited pay contracts, contracts are grouped into cohorts by contract type and issue year. The Company quarterly updates its estimate of cash flows using actual experience and current future cash flow assumptions, which is reflected in an updated net premium ratio used to calculate the liability. The ratio of actual and future expected claims to actual and future expected premiums determines the net premium ratio. The policy administration expense assumption is not updated after policy issuance. If actual expenses differ from the original expense assumptions, the differences are recognized in the period identified. The revised net premium ratio is used to determine the updated liability for future policy benefits as of the beginning of the reporting period, discounted at the original contract issuance rate. Changes in the liability due to current discount rates differing from original rates are included in other comprehensive income within the statement of comprehensive income.

For non-participating traditional life insurance policies (Term) and limited pay contracts (Payout, Pension), the discount rate assumption used is corporate A rated forward curve. We use a forward curve based upon a Bloomberg index. The liability is remeasured each quarter with the remeasurement change reported in other comprehensive income. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., single A) at contract inception for contracts issued after January 1, 2021. The Company developed an LDTI discount rate methodology used to calculate the LFPB for its traditional insurance liabilities and constructed a discount rate curve that references upper-medium grade (low credit risk) fixed-income instrument yields (i.e. Single-A rated Corporate bond yields) which are meant to reflect the duration characteristics of the corresponding insurance liabilities. The methodology uses observable market data, where available, and uses various estimation techniques in line with fair value guidance (such as interpolation and extrapolation) where data is limited. Discount rates are updated quarterly.

For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”). DPL will be amortized in relation to the expected future benefit payments. As the calculation of the DPL is based on discounted cash flows, interest accrues on the unamortized DPL balance using the discount rate determined at contract issuance. The DPL is updated at the same time as the estimates for cash flows for the liability for future policy benefits. Any difference between the recalculated and beginning of period DPL is

recognized in remeasurement gain or loss in the statement of income (loss), Remeasurement of Liability for Future Policy Benefits, part of total benefits and other deductions. On the balance sheet the DPL is recorded in the liability for future policy benefits.

Additional liabilities for contract or contract feature that provide for additional benefits in addition to the account balance but are not market risk benefits or embedded derivatives (“additional insurance liabilities”) are established by estimating the expected value of death or other insurance benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. These reserves are recorded within future policy benefits and other policyholders’ liabilities. The determination of this estimated future policy benefits liability is based on models that involve numerous assumptions and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, and mortality experience. There can be no assurance that actual experience will be consistent with management’s estimates. Assumptions are reviewed annually and updated with the remeasurement gain or loss reflected in total benefit expense.

The Company recognizes an adjustment in other comprehensive income for the additional insurance liabilities for unrealized gains and losses not included when calculating the present value of expected assessments for the benefit ratios.

The Company conducts annual premium deficiency testing except for liability for future policy benefits for non-participating traditional and limited payment contracts. The Company reviews assumptions and determines whether the sum of existing liabilities and the present value of future gross premiums is sufficient to cover the present value of future benefits to be paid and settlement costs. Anticipated investment income is considered when performing premium deficiency for long duration contracts. The anticipated investment income is projected based on current investment portfolio returns grading to long term reinvestment rates over the projection periods, based on anticipated gross reinvestment spreads, defaults and investment expenses. Premium deficiency reserves are recorded in certain instances where the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. This pattern of profits followed by losses is exhibited in our VISL business and is generated by the cost structure of the product or secondary guarantees in the contract. 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. We accrue for these PFBL using a dynamic approach that changes over time as the projection of future losses change.

Liabilities for unpaid claims and claim adjustment expenses are established for the Company’s employee benefits products which include the following Group products: long-term and short-term disability, life insurance, vision, dental, critical Illness, and accident. Unpaid claim and claim adjustment expenses consist of (i) claim reserves for known claims that are unpaid as of the balance sheet date; (ii) Incurred But Not Reported reserves for claims where the insured event occurred but has not yet been reported to the Company or the insured has not yet satisfied elimination period to be eligible for the benefits; and (iii) claim adjustment expense reserves for settling the claim run-out. The Company determines Incurred But Not Reported reserves and reviews the claim reserves for the long-term disability claims provided by a reinsurer managing the claims on the Company’s behalf. The claim adjustment expense reserves are set based on the Company’s anticipated cost associated with claim administration expenses on the run-out of business.

For long-term disability (“LTD”) the claim reserves for the reported claims are calculated as the present value of the net monthly LTD benefits (Social Security and other offsets may be estimated if unknown) and the best estimate probabilities of the claimant remaining disabled for a given benefit payment which are based on a termination rates table adjusted for experience. Should the offsets be estimated, they are estimated using the claimant’s salary, duration of disability and the probability of the offset award.

The disability termination rates vary based on the insured’s age at disability, gender, elimination period, the duration of disability, social security status and the number of months remaining in the benefit period. The rates account for the probabilities of both recovery and death. The reserves vary with plan provisions such as monthly benefit, offsets, own occupation period, benefit duration, cost of living adjustment (“COLA”), and minimum and maximum benefits. The discount rate assumptions for these liabilities are set annually and are based on projected investment returns for the asset portfolios. The interest rate is locked in for each claimant based on the year of disability.

For long-term disability, critical illness, and group accident the incurred but not reported reserves are determined using the expected loss ratio method, where the expected loss ratio is applied to the premiums to determine ultimate liabilities. For dental and vision, the incurred but not reported reserves are determined using completion factors, where these factors complete paid-to-date claims to the ultimate liability based on past experience. For short-term disability and group life the incurred but not reported reserves are determined using a combination of expected loss ratio and completion factor methods.

Market Risk Benefits

Market risk benefits (“MRBs”) are contracts or contract features that provide protection to the contract holder from other than nominal capital market risk and expose the Company to other than nominal capital market risk. Market risk benefits include contract features that provide minimum guarantees to policyholders and include GMIB, GMDB, and ROP DB benefits. MRBs are measured at fair value on a seriatim basis using an ascribed fee approach based upon policyholder behavior projections and risk neutral economic scenarios adjusted based on the facts and circumstances of the Company’s product features. The MRB Asset and MRB Liability will be equal to the average present value of benefits and risk margins less the average present value of ascribed fees. Ascribed fees will consist of the fee needed, under a stochastically generated set of risk-neutral scenarios, so that the mean present value of claims, including any risk charge, is equal to the mean present value of the projected attributed fees which will be capped at average present value of total policyholder contractual fees. The attributed fee percentage is considered a fixed term of the MRB feature and is held static over the life of the contract. Changes in fair value are recognized as a remeasurement gain/loss in the Change in market risk benefits and purchased market risk benefits, part of total benefits and other deductions except for the portion of the change in the fair value due to change in the Company’s own credit risk, which is recognized in other than comprehensive income. Additionally, when an annuitization occurs (for annuitization benefits) or upon extinguishment of the account balance (for withdrawal benefits) the balance related to the MRB will be derecognized and the amount deducted (after derecognition of any related amount included in accumulated other comprehensive income) shall be used in the calculation of the liability for future policy benefits for the payout annuity. Upon derecognition, any related balance will be removed from AOCI.

The Company has issued and continues to offer certain variable annuity products with GMDB and/or contain a GMIB (collectively, the “GMxB features”) which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a GMIB base.

Features in ceded reinsurance contracts that meet the definition of MRBs are accounted for at fair value. The fees used to determine the fair value of the reinsured market risk benefit are those defined in the reinsurance contract. The expected periodic future premiums would represent cash outflows and the expected future benefits would represent cash inflows in the fair value calculation. On the ceded side, the Purchased MRB will be measured considering the counterparty credit risk of the reinsurer, while the direct contract liabilities will be measured considering the instrument-specific credit risk of the insurer. As a result of the difference in the treatment of the counterparty credit risk, the fair value of the direct and ceded contracts may be different even if the contractual fees and benefits are the same. Changes in instrument-specific credit risk of the Company is included in the fair value of its market risk benefit, whether in an asset or liability position, and whether related to an issued or purchased MRB, is recognized in OCI. The counterparty credit risk of the reinsurer is recorded in the statements of income (loss).

Revision of Previously Issued Financial Statements

During the quarter ended September 30, 2022, the Company identified an error in its previously issued financial statements specifically related to the amortization of the cost of reinsurance asset. The impact of this error to prior periods financial statements were not considered to be material. The impact of the errors to prior periods financial statements was not considered to be material. See Note 17 to the Notes to these Financial Statements for details of the revision.

Out of Period Adjustment

During the three months ended June 30, 2023, the Company recorded out of period adjustment resulting in a decrease of $5 million to Income (loss) from continuing operations, before income taxes. The adjustments relate to an understatement of policyholders’ benefits expenses and an understatement of other liabilities in the period ended and as of December 31, 2021, respectively. The error was not material to any prior period.

Fair Value Disclosures

U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value:

Level 1    Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2    Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data.

Level 3    Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability.

The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument.

Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness.

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SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Adoption of New Accounting Pronouncements

Description	Effect on the Financial Statement or Other Significant Matters
ASU 2018-12: Financial Services - Insurance (Topic 944)
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of Market Risk Benefits (“ MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement.	On January 1, 2023, the Company adopted the new accounting standard ASU 2018-12 using the modified retrospective approach, except for MRBs which will use the full retrospective approach. Refer to “Transition impact of ASU 2018-12, Financial Services- Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” section within this note for further details.

The following table presents the effect of transition adjustment to total equity resulting from the adoption of ASU 2018-12 as of January 1, 2021:

	Retained Earnings		Accumulated Other Comprehensive Income		Total
	(in millions)
Liability for future policy benefits (1)	$	—	$	—	$	—
Market risk benefits	2		(1)		1
DAC	—		110		110
Unearned revenue liability and sales inducement assets (1)	—		(37)		(37)
Total transition adjustment before taxes	2		72		74
Income taxes	(1)		(15)		(16)
Total transition adjustment (net of taxes)	$	1	$	57	$	58

_____________

(1)Unearned revenue liability included within liability for future policy benefits financial statement line item in the balance sheet. Sales inducement assets are included in other assets in the balance sheets.

Schedule of Deferred Policy Acquisition Costs

The following table summarizes the balance of and changes in DAC on January 1, 2021 resulting from the adoption of ASU 2018-12:

	Variable Universal Life		Indexed Universal Life		Total
	(in millions)
Balance, December 31, 2020	$	230	$	247	$	477
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income	70		40		110
Balance, January 1, 2021	$	300	$	287	$	587

Changes in the DAC asset for the six months ended June 30, 2023 and 2022 are as follows:

	Six Months Ended June 30, 2023
	VUL (1)		IUL (2)		GMxB Core		IE (3)		SCS		Total
	(in millions)
Balance, beginning of period	$	410	$	296	$	40	$	1	$	13	$	760
Capitalization	34		7		34		11		119		205
Amortization	(11)		(9)		(2)		—		(5)		(27)
Balance, end of period	$	433	$	294	$	72	$	12	$	127	$	938

______________

(1)    “VUL” defined as Variable Universal Life.

(2)    “IUL” defined as Indexed Universal Life.

(3)    “IE” defined as Investment Edge.

	Six Months Ended June 30, 2022
	VUL (1)		IUL (2)		GMxB Core		Total
	(in millions)
Balance, beginning of period	$	361	$	297	$	14	$	672
Capitalization	35		9		9		53
Amortization	(10)		(9)		(1)		(20)
Balance, end of period	$	386	$	297	$	22	$	705

______________

(1)    “VUL” defined as Variable Universal Life.

(2)    “IUL” defined as Indexed Universal Life.

Changes in the Unearned Revenue Liability for the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended June 30,
	2023				2022
	VUL		IUL		VUL		IUL
	(in millions)
Balance, beginning of period	$	159	$	157	$	118	$	94
Capitalization	27		33		23		36
Amortization	(5)		(5)		(4)		(4)
Balance, end of period	$	181	$	185	$	137	$	126

Schedule of Deferred Income

The following table summarizes the balance of and changes in sales inducement assets and unearned revenue liability on January 1, 2021 resulting from the adoption of ASU 2018-12:

	Variable Universal Life		Indexed Universal Life		Total
	(in millions)
Balance, December 31, 2020	$	55	$	14	$	69
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income	28		9		37
Balance, January 1, 2021	$	83	$	23	$	106

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INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-Sale Fixed Maturities by Classification

The following tables provide information relating to the Company’s fixed maturities classified as AFS:

AFS Fixed Maturities by Classification

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
June 30, 2023:
Fixed Maturities:
Corporate (1)	$	4,421	$	—	$	5	$	345	$	4,081
U.S. Treasury, government and agency	15		—		—		1		14
States and political subdivisions	51		—		—		8		43
Foreign governments	30		—		—		—		30
Residential mortgage-backed	416		—		—		5		411
Asset-backed (2)	1,082		—		—		6		1,076
Commercial mortgage-backed	165		—		—		16		149
Total at June 30, 2023	$	6,180	$	—	$	5	$	381	$	5,804
December 31, 2022:
Fixed Maturities:
Corporate (1)	$	2,417	$	—	$	—	$	359	$	2,058
U.S. Treasury, government and agency	14		—		—		—		14
States and political subdivisions	43		—		—		9		34
Residential mortgage-backed	8		—		—		2		6
Asset-backed (2)	43		—		—		2		41
Commercial mortgage-backed	81		—		—		16		65
Total at December 31, 2022	$	2,606	$	—	$	—	$	388	$	2,218

______________

(1)Corporate fixed maturities include both public and private issues.

(2)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities. and other asset types.

Schedule of Contractual Maturities of Available-for-Sale Fixed Maturities

The contractual maturities of AFS fixed maturities as of June 30, 2023 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Contractual Maturities of AFS Fixed Maturities

	Amortized Cost (Less Allowance for Credit Losses)		Fair Value
	(in millions)
June 30, 2023:
Contractual maturities:
Due in one year or less	$	127	$	126
Due in years two through five	888		860
Due in years six through ten	2,370		2,256
Due after ten years	1,132		926
Subtotal	4,517		4,168
Residential mortgage-backed	416		411
Asset-backed	1,082		1,076
Commercial mortgage-backed	165		149
Total at June 30, 2023	$	6,180	$	5,804

Schedule of Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities

The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities:

Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Proceeds from sales	$	—	$	39	$	50	$	62
Gross gains on sales	$	—	$	—	$	—	$	—
Gross losses on sales	$	—	$	3	$	(5)	$	4
Net (increase) decrease in Allowance for Credit and Intent to Sell losses	$	—	$	—	$	—	$	—

Schedule of AFS Fixed Maturities - Credit Loss Impairments

The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts:

AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Balance, beginning of period	$	—	$	2	$	—	$	2
Previously recognized impairments on securities that matured, paid, prepaid or sold	—		(2)		—		(2)
Recognized impairments on securities impaired to fair value this period (1)	—		—		—		—
Credit losses recognized this period on securities for which credit losses were not previously recognized	—		—		—
Additional credit losses this period on securities previously impaired	—		—		—		—
Increases due to passage of time on previously recorded credit losses	—		—		—		—

Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)	—		—		—		—
Balance, end of period	$	—	$	—	$	—	$	—

______________

(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

Schedule of Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities

The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI.

Net Unrealized Gains (Losses) on AFS Fixed Maturities

	Three Months Ended June 30, 2023
	Net Unrealized Gains (Losses) on Investments		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, beginning of period	$	(312)	$	6	$	145	$	(161)
Net investment gains (losses) arising during the period	(64)		—		—		(64)
Reclassification adjustment:							—
Included in Net income (loss)	—		—		—		—
Excluded from Net income (loss)	—		—		—		—
Impact of net unrealized investment gains (losses)	—		1		14		15
Net unrealized investment gains (losses) excluding credit losses	(376)		7		159		(210)
Net unrealized investment gains (losses) with credit losses	—		—		—		—
Balance, end of period	$	(376)	$	7	$	159	$	(210)
	Three Months Ended June 30, 2022
	Net Unrealized Gains (Losses) on Investments		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, beginning of period	$	(93)	$	2	$	19	$	(72)
Net investment gains (losses) arising during the period	(202)		—		—		(202)
Reclassification adjustment:							—
Included in Net income (loss)	2		—		—		2
Excluded from Net income (loss)	—		—		—		—
Impact of net unrealized investment gains (losses)	—		4		41		45
Net unrealized investment gains (losses) excluding credit losses	(293)		6		60		(227)
Net unrealized investment gains (losses) with credit losses (1)	—		—		—		—
Balance, end of period	$	(293)	$	6	$	60	$	(227)

Six Months Ended June 30, 2023
Net Unrealized Gains (Losses) on Investments	Policyholders’ Liabilities	Deferred Income Tax Asset (Liability)	AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)

	(in millions)
Balance, beginning of period	$	(388)	$	8	$	161	$	(219)
Net investment gains (losses) arising during the period	7		—		—		7
Reclassification adjustment:
Included in net income (loss)	5		—		—		5
Other (1)	—		—		—		—
Impact of net unrealized investment gains (losses)	—		(1)		(2)		(3)
Net unrealized investment gains (losses) excluding credit losses	(376)		7		159		(210)
Net unrealized investment gains (losses) with credit losses	—		—		—		—
Balance, end of period	$	(376)	$	7	$	159	$	(210)
	Six Months Ended June 30, 2022
	Net Unrealized Gains (Losses) on Investments		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, beginning of period	$	128	$	(3)	$	(26)	$	99
Net investment gains (losses) arising during the period	(424)		—		—		(424)
Reclassification adjustment:
Included in net income (loss)	3		—		—		3
Other	—		—		—		—
Impact of net unrealized investment gains (losses)	—		9		86		95
Net unrealized investment gains (losses) excluding credit losses	(293)		6		60		(227)
Net unrealized investment gains (losses) with credit losses	—		—		—		—
Balance, end of period	$	(293)	$	6	$	60	$	(227)

Schedule of Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities

The following tables disclose the fair values and gross unrealized losses of the 1,172 issues as of June 30, 2023 and the 845 issues as of December 31, 2022 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated:

AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
June 30, 2023:
Fixed Maturities:
Corporate	$	1,928	$	38	$	1,555	$	307	$	3,483	$	345
U.S. Treasury, government and agency	5		—		9		1		14		1
States and political subdivisions	6		1		27		7		33		8
Residential mortgage-backed	331		2		6		3		337		5
Asset-backed	680		5		31		1		711		6
Commercial mortgage-backed	85		1		60		15		145		16
Total at June 30, 2023	$	3,035	$	47	$	1,688	$	334	$	4,723	$	381

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
December 31, 2022:
Fixed Maturities:
Corporate	$	1,446	$	159	$	590	$	200	$	2,036	$	359
States and political subdivisions	19		4		13		5		32		9
Residential mortgage-backed	2		—		4		2		6		2
Asset-backed	35		1		6		1		41		2
Commercial mortgage-backed	5		1		60		15		65		16
Total at December 31, 2022	$	1,507	$	165	$	673	$	223	$	2,180	$	388

Schedule of Unrealized and Realized Gains (Losses) from Equity Securities

The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and six months ended June 30, 2023 and 2022.

Unrealized and Realized Gains (Losses) from Equity Securities

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	—	$	(1)	$	(1)	$	(3)
Net investment gains (losses) recognized on securities sold during the period	—		—		—		—
Unrealized and realized gains (losses) on equity securities	$	—	$	(1)	$	(1)	$	(3)

The table below shows a breakdown of net investment income (loss) from trading securities during the three and six months ended June 30, 2023 and 2022.

Net Investment Income (Loss) from Trading Securities

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	2	$	—	$	—	$	—
Net investment gains (losses) recognized on securities sold during the period	—		—		—		—
Unrealized and realized gains (losses) on trading securities	2		—		—		—
Interest and dividend income from trading securities	—		—		—		—
Net investment income (loss) from trading securities	$	2	$	—	$	—	$	—

Schedule of Net Investment Income (Loss)

The following tables provide the components of net investment income by investment type:

	Three Months Ended June 30,					Six Months Ended June 30,
	2023		2022			2023		2022
	(in millions)
Fixed maturities	$	48		$	22	$	77	$	43
Mortgage loans on real estate	—			—		—		—
Policy loans	1			1		2		2
Other equity investments	—			(2)		—		(3)
Trading securities	2			—		—		—
Other investment income	7			—		9		—
Gross investment income (loss)	58			21		88		42
Investment expenses	(2)			—		(3)		(1)
Net investment income (loss)	$	56		$	21	$	85	$	41

Investment Gains (Losses) Net Including Changes In Valuation Allowances and Credit Losses

Investment gains (losses), net, including changes in the valuation allowances and credit losses are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Fixed maturities	$	—	$	(2)	$	(5)	$	(3)
Mortgage loans on real estate	—		—		—		—
Other equity investments (1)	—		—		—		—
Investment gains (losses), net	$	—	$	(2)	$	(5)	$	(3)

_____________

(1)    Investment gains (losses), net of Other equity investments includes Real Estate Held for production.

XML

DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments by Category

The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments:

The following table presents the gross notional amount and estimated fair value of the Company’s derivatives:

Derivative Instruments by Category

	June 30, 2023						December 31, 2022
			Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in millions)
Derivatives: (1)
Equity contracts:
Futures	$	1,324	$	—	$	—	$	394	$	—	$	—
Options	1,948		546		167		209		34		16
Interest rate contracts:
Futures	370		—		—		282		—		—
Other contracts:
Margin	—		81		—		—		29		—
Collateral	—		—		346		—		—		3
Total:	3,642		627		513		885		63		19
Embedded derivatives:
SCS, SIO, MSO and IUL indexed features (2)	—		—		7,347		—		—		87
Funds withheld receivable (3)	—		(136)		—		—		—		—
Modco receivable (2)	—		—		166		—		—		—
Total embedded derivatives	—		(136)		7,513		—		—		87
Total derivative instruments	$	3,642	$	491	$	8,026	$	885	$	63	$	106

______________

(1)Reported in other invested assets in the balance sheets.

(2)Reported in policyholders’ account balances in the balance sheets.

(3)Reported in funds withheld receivable in the balance sheets.

The following table presents the effects of derivative instruments on the statements of income and comprehensive income (loss)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	Net Derivatives Gains (Losses)
	(in millions)
Derivatives:
Equity contracts:
Futures	$	70	$	(66)	$	98	$	(74)
Options	105		(3)		111		(3)
Interest rate contracts:
Futures	(12)		(12)		(4)		(24)
Total:	163		(81)		205		(101)
Embedded Derivatives:
SCS, SIO, MSO and IUL indexed features	(2,194)		78		(2,230)		90
Funds withheld receivable	(599)		—		(599)		—
Modco receivable	1,930		—		1,930		—
Total Embedded Derivatives	(863)		78		(899)		90
Total Derivatives instruments (1)	$	(700)	$	(3)	$	(694)	(11)

________(1)Reported in net derivative gains (losses) in the statements of income (loss).

Schedule of Offsetting Financial Assets and Liabilities and Derivative Instruments

The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of June 30, 2023 and December 31, 2022:

Offsetting of Financial Assets and Liabilities and Derivative Instruments

As of June 30, 2023

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (1)		Net Amount
	(in millions)
Assets:
Derivative assets	$	627	$	513	$	114	$	—	$	114
Other financial assets	3		—		3		—		3
Other invested assets	$	630	$	513	$	117	$	—	$	117
Liabilities:
Derivative liabilities	$	513	$	513	$	—	$	—	$	—
Other financial liabilities	2,124		—		2,124		—		2,124
Other liabilities	$	2,637	$	513	$	2,124	$	—	$	2,124

______________

(1)Financial instruments sent (held).

As of December 31, 2022

	Gross Amount Recognized		Gross Amount Offset in the Balance Sheets		Net Amount Presented in the Balance Sheets		Gross Amount not Offset in the Balance Sheets (1)		Net Amount
	(in millions)
Assets:
Derivative assets	$	63	$	18	$	45	$	—	$	45
Other financial assets	2		—		2		—		2
Other invested assets	$	65	$	18	$	47	$	—	$	47
Liabilities:
Derivative liabilities	$	19	$	18	$	1	$	—	$	1
Other financial liabilities	72		—		72		—		72
Other liabilities	$	91	$	18	$	73	$	—	$	73

______________

(1)Financial instruments sent (held).

XML

DAC AND OTHER DEFERRED ASSETS/LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2023

Contract holder Bonus Interest Credits [Abstract]

Schedule of Deferred Policy Acquisition Costs

The following table summarizes the balance of and changes in DAC on January 1, 2021 resulting from the adoption of ASU 2018-12:

	Variable Universal Life		Indexed Universal Life		Total
	(in millions)
Balance, December 31, 2020	$	230	$	247	$	477
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income	70		40		110
Balance, January 1, 2021	$	300	$	287	$	587

Changes in the DAC asset for the six months ended June 30, 2023 and 2022 are as follows:

	Six Months Ended June 30, 2023
	VUL (1)		IUL (2)		GMxB Core		IE (3)		SCS		Total
	(in millions)
Balance, beginning of period	$	410	$	296	$	40	$	1	$	13	$	760
Capitalization	34		7		34		11		119		205
Amortization	(11)		(9)		(2)		—		(5)		(27)
Balance, end of period	$	433	$	294	$	72	$	12	$	127	$	938

______________

(1)    “VUL” defined as Variable Universal Life.

(2)    “IUL” defined as Indexed Universal Life.

(3)    “IE” defined as Investment Edge.

	Six Months Ended June 30, 2022
	VUL (1)		IUL (2)		GMxB Core		Total
	(in millions)
Balance, beginning of period	$	361	$	297	$	14	$	672
Capitalization	35		9		9		53
Amortization	(10)		(9)		(1)		(20)
Balance, end of period	$	386	$	297	$	22	$	705

______________

(1)    “VUL” defined as Variable Universal Life.

(2)    “IUL” defined as Indexed Universal Life.

Changes in the Unearned Revenue Liability for the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended June 30,
	2023				2022
	VUL		IUL		VUL		IUL
	(in millions)
Balance, beginning of period	$	159	$	157	$	118	$	94
Capitalization	27		33		23		36
Amortization	(5)		(5)		(4)		(4)
Balance, end of period	$	181	$	185	$	137	$	126

Schedule of Reconciliation of Deferred Acquisition Cost

The following table presents a reconciliation of DAC to the balance sheet:

	June 30, 2023		December 31, 2022
	(in millions)
VUL	$	433	$	410
IUL	294		296
GMxB Core	72		40
Investment Edge	12		1
SCS	127		13
Other	9		—
Total	$	947	$	760

XML

FAIR VALUE DISCLOSURES (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

Fair Value Measurements as of June 30, 2023

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate (1)	$	—	$	4,020	$	61	$	4,081
U.S. Treasury, government and agency	—		14		—		14
States and political subdivisions	—		43		—		43
Foreign governments	—		30		—		30
Residential mortgage-backed	—		411		—		411
Asset-backed (2)	—		1,076		—		1,076
Commercial mortgage-backed	—		149		—		149
Total fixed maturities, AFS	—		5,743		61		5,804
Other equity investments	20		18		—		38
Other invested assets:
Options	—		379		—		379
Total other invested assets	—		379		—		379
Cash equivalents	1,028		—		—		1,028
Funds withheld receivable (3) (5)	—		—		(136)		(136)
Purchased market risk benefits	—		—		10		10
Assets for market risk benefits	—		—		26		26
Separate Accounts assets (4)	4,501		7		—		4,508
Total Assets	$	5,549	$	6,147	$	(39)	$	11,657
Liabilities:
Policyholders’ account balances:	—		—		—		—
SCS, MSO and IUL indexed features’ liability	—		7,347		—		7,347
Modco payable (5)	—		—		166		166
Liabilities for market risk benefits	—		—		7,363		7,363
Total Liabilities	$	—	$	7,347	$	7,529	$	14,876

______________

(1)Corporate fixed maturities includes both public and private issues.

(2)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(3)As discussed in Note 2 to these Financial Statements, the funds withheld receivable was created through a funds withheld and modified coinsurance agreement where the investments supporting the reinsurance agreement are withheld by and continue to reside on Equitable Financial’s consolidated balance sheet. This embedded derivative is valued as a total return swap with references to the fair value of the invested assets held by the Equitable Financial, which are primarily AFS securities.

(4)Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $1 million.

(5)The embedded derivative is partially reflected in funds withheld receivable and policyholders’ account balance. The portion within policyholders’ account balances relates to the non-insulated products assumed on a modified coinsurance basis and is reflected net of assumed liabilities on the balance sheet.

Fair Value Measurements as of December 31, 2022

	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate (1)	$	—	$	2,040	$	18	$	2,058
U.S. Treasury, government and agency	—		14		—		14
States and political subdivisions	—		34		—		34
Residential mortgage-backed	—		6		—		6
Asset-backed (2)	—		41		—		41
Commercial mortgage-backed	—		65		—		65
Total fixed maturities, AFS	—		2,200		18		2,218
Other equity investments	—		19		—		19
Other invested assets:
Options	—		18		—		18
Total other invested assets	—		18		—		18
Cash equivalents	272		—		—		272
Funds withheld receivable	—		—		—		—
Purchased market risk benefits	—		—		13		13
Assets for market risk benefits	—		—		12		12
Separate Accounts assets (3)	3,367		7		—		3,374
Total Assets	$	3,639	$	2,244	$	43	$	5,926
Liabilities:
Policyholders’ account balances	—		—		—		—
SCS, SIO, MSO and IUL indexed features’ liability	—		87		—		87
Modco receivable	—		—		—		—
Liabilities for market risk benefits	—		—		15		15
Total Liabilities	$	—	$	87	$	15	$	102

______________

(1)Corporate fixed maturities includes both public and private issues.

(2)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.

(3)Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $1 million.

Schedule of Reconciliation of Assets and Liabilities at Level 3

The tables below present reconciliations for Level 3 assets and liabilities and changes in unrealized gains (losses) for the three and six months ended June 30, 2023 and 2022, respectively. Not included below are the changes in balances related to market risk benefits and purchased market risk benefits level 3 assets and liabilities, which are included in Note 8 of the Notes to these Financial Statements.

Level 3 Instruments - Fair Value Measurements

	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
	Corporate		Funds Withheld Receivable		Modco Payable		Corporate		Funds Withheld Receivable		Modco Payable
	(in millions)
Balance, beginning of period	$	37	$	—	$	—	$	11	$	—	$	—
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income	—		—		—		—		—		—
Net derivative gains (losses) (1)	—		(136)		166		—		—		—
Total realized and unrealized gains (losses)	—		(136)		166		—		—		—
Other comprehensive income (loss)	—		—		—		—		—		—
Purchases	24		—		—		11		—		—
Sales	—		—		—		(1)		—		—
Transfers into Level 3 (1)	—		—		—		—		—		—
Transfers out of Level 3 (1)	—		—		—		(5)		—		—
Balance, end of period	$	61	$	(136)	$	166	$	16	$	—	$	—
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period	$	—	$	—	$	—	$	—	$	—	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period.	$	—	$	—	$	—	$	—	$	—	$	—

	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
	Corporate		Funds Withheld Receivable		Modco Payable		Corporate		Funds Withheld Receivable		Modco Payable
	(in millions)
Balance, beginning of period	$	18	$	—	$	—	$	11	$	—	$	—
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income	—		—		—		—		—		—
Net derivative gains (losses) (1)	—		(136)		166		—		—		—
Total realized and unrealized gains (losses)	—		(136)		166		—		—		—
Other comprehensive income (loss)	—		—		—		(1)		—		—
Purchases	53		—		—		12		—		—
Sales	—		—		—		(1)		—		—
Transfers into Level 3 (1)	—		—		—		—		—		—
Transfers out of Level 3 (1)	(10)		—		—		(5)		—		—
Balance, end of period	$	61	$	(136)	$	166	$	16	$	—	$	—
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period	$	—	$	—	$	—	$	—	$	—	$	—
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period.	$	—	$	—	$	—	$	(1)	$	—	$	—

____

(1)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.

Schedule of Quantitative Information About Level 3 Fair Value Measurement

The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of June 30, 2023 and December 31, 2022, respectively:

Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2023

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average
	(Dollars in millions)
Assets:(4)
Investments:
Fixed maturities, AFS:
Corporate	$	32	Matrix pricing  model	Spread over benchmark	20 bps - 320 bps	65 bps
Purchased MRB asset (1)	10		Discounted cash flow	Lapse rates Withdrawal rates Annuitization rates Non-performance risk (bps) Mortality: Ages 0-40 Ages 41-60 Ages 61-115	N/A	N/A

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average
	(Dollars in millions)
Liabilities:
Direct MRB (1) (2) (3)	$	7,337	Discounted cash flow	Non-performance risk (bps) Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115	55 bps - 192 bps 0.26% - 35.42% 0.00% - 10.93% 0.04% - 100.00% 0.01% - 0.17% 0.06% - 0.52% 0.32% - 40.00%	55 bps 3.81% 0.65% 3.13% 2.56% (same for all ages) (same for all ages)

(1)Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. GMIB utilization rates were developed as a function of the GMIB benefit base.

(2)MRB assets are shown net of MRB liabilities. Net amount is made up of $26 million of MRB assets and $7,363 million of MRB liabilities.

(3)Includes Core products.

(4)Funds withheld receivable that contain embedded derivatives held at fair value are excluded from the tables above. The funds withheld receivable embedded derivative utilizes a total return swap technique which incorporates the fair value of the invested assets supporting the reinsurance agreement as a component of the valuation.

    Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2022

	Fair Value		Valuation Technique	Significant Unobservable Input	Range	Weighted Average
	(Dollars in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate	$	4	Matrix pricing model	Spread over benchmark	245 bps - 245 bps	245 bps
Purchased MRB asset (1) (2) (4)	13		Discounted cash flow	Lapse rates Withdrawal rates Annuitization Non-performance risk (bps) Mortality: Ages 0-40 Ages 41-60 Ages 61-115	N/A	N/A
Liabilities:
Direct MRB (1) (2) (3) (4)	$	3	Discounted cash flow	Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115	157 bps 0.35% - 35.42% 0.20% - 1.24% 0.04% - 100.00% 0.01% - 0.17% 0.06% - 0.52% 0.32% - 40.00%	157 bps 4.35% 1.22% 3.27% 1.08% (same for all ages) (same for all ages)

(1)Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.

(2)Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. GMIB utilization rates were developed as a function of the GMIB benefit base.

(3)MRB liabilities are shown net of MRB assets. Net amount is made up of $15 million of MRB liabilities and $12 million of MRB assets.

(4)Includes Core products.

Schedule of Fair Value Disclosure Financial Instruments Not Carried At Fair Value

The carrying values and fair values as of June 30, 2023 and December 31, 2022 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Financial Statements are presented in the table below.

Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed

	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(in millions)
June 30, 2023:
Mortgage loans on real estate	$	17	$	—	$	—	$	15	$	15
Policy loans	$	260	$	—	$	—	$	265	$	265
Funds withheld receivable	$	10,751	$	—	$	—	$	10,751	$	10,751
Modco receivable	$	30,022	$	—	$	—	$	30,022	$	30,022
Policyholders’ liabilities: Investment contracts	$	110	$	—	$	—	$	101	$	101
Separate Accounts liabilities	$	267	$	—	$	—	$	267	$	267
December 31, 2022:
Mortgage loans on real estate	$	17	$	—	$	—	$	15	$	15
Policy loans	$	244	$	—	$	—	$	248	$	248
Funds withheld receivable	$	—	$	—	$	—	$	—	$	—
Modco receivable	$	—	$	—	$	—	$	—	$	—
Policyholders’ liabilities: Investment contracts	$	115	$	—	$	—	$	106	$	106
Separate Accounts liabilities	$	—	$	—	$	—	$	—	$	—

XML

LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS (Tables)

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

Schedule of Policyholder Account Balance

The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts for the six months ended June 30, 2023 and 2022.

The payout annuities result from annuitization of current contracts. Inflows are the liquidation of the account values not premiums:

	Six Months Ended June 30, 2022
	2023		2022
	Payout-Legacy
	(in millions)
Present Value of Expected Future Policy Benefits
Balance, beginning of period	$	—	$	—
Beginning balance of original discount rate	—		—
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	—		—
Adjusted beginning of period balance	—		—
Issuances	120		—
Interest accrual	—		—
Benefits payments	—		—
Ending balance at original discount rate	120		—
Effect of changes in discount rate assumptions	(1)		—
Balance, end of period	$	119	$	—
Net liability for future policy benefits	$	119	$	—
Less: Reinsurance recoverable	—		—
Net liability for future policy benefits, after reinsurance recoverable	$	119	$	—
Weighted-average duration of liability for future policyholder benefits (years)	7.6		0

The following table summarizes the balances and changes in policyholders’ account balances for the six months ended June 30, 2023:

	Six Months Ended June 30, 2023
	UL		IUL		EI		EG		SCS (1)
	(Dollars in millions)
Balance, beginning of period	$	—	$	1,962	$	—	$	—	242
Issuances (2)	1,208		349		2,213		6,817		31,189
Premiums received	122		119		3		93		—
Policy charges	(128)		(93)		—		(1)		(2)
Surrenders and withdrawals	(4)		(25)		(74)		(230)		(606)
Benefit payments	(5)		(5)		(9)		(7)		(55)
Net transfers from (to) separate account	—		—		(12)		45		2,823
Interest credited (3)	9		73		16		69		2,212
Balance, end of period	$	1,202	$	2,380	$	2,137	$	6,786	$	35,803
Weighted-average crediting rate	3.32%		2.34%		2.92%		2.31%		N/A
Net amount at risk (4)	$	16,580	$	19,438	$	107	$	17	$	11
Cash surrender value	$	1,044	$	1,790	$	2,130	$	6,713	$	32,495

______________

(1)SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Financial Statements.

(3)SCS includes amounts related to the change in embedded derivative.

(4)For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder.

The following table summarizes the balances and changes in policyholders’ account balances for the six months ended June 30, 2022:

	Six Months Ended June 30, 2022
	IUL		VUL		GMxB Core		Reinsured (2)
	(Dollars in millions)
Balance, beginning of period	$	1,973	$	614	$	13	$	866
Issuances	—		—		—		—
Premiums received	127		9		30		18
Policy charges	(89)		(14)		(1)		(12)
Surrenders and withdrawals	(12)		—		—		(39)
Benefit payments	(4)		(4)		—		(6)
Net transfers from (to) separate account	—		26		(27)		2
Interest credited (3)	(54)		7		—		18
Other	—		—		—		—
Balance, end of period	$	1,941	$	638	$	15	$	847
Weighted-average crediting rate	2.18%		3.52%		1.00%		4.27%
Net amount at risk (4)	$	18,260	$	28,861	$	11	$	4,272
Cash surrender value	$	1,477	$	518	$	16	$	846

___________

(1)SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account.

(2)Reinsured primarily reflects Protective Life reinsured business.

(3)SCS includes amounts related to the change in embedded derivative.

(4)For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder.

The following table reconciles the policyholders account balances to the policyholders’ account balance liability in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Policyholders’ account balance reconciliation
UL	$	1,202
IUL	2,380
EI	2,137
EG	6,786
SCS	35,803
Other (1)	(27,294)
Total	$	21,014

______________

(1) Includes $(30) billion of assumed fair value of the modco reinsurance with Equitable Financial.

	December 31, 2022
	(in millions)
Policyholders’ account balance reconciliation
IUL	$	1,962
VUL	655
GMxB Core	27
IE	7
SCS	242
Reinsured	819
Other	39
Total	$	3,751

The following table presents the balances of and changes in separate account liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30, 2023
	VUL		GMxB Core		IE		Reinsured (2)
Balance, beginning of period	1,653		$	756	$	26	$	913
Premiums and deposits	190		439		270		11
Policy charges	(64)		(4)		—		(17)
Surrenders and withdrawals	(23)		(11)		(2)		(37)
Benefit payments	(5)		(3)		—		(11)
Investment performance (1)	192		79		4		141
Net transfers from (to) general account	(25)		65		(163)		(1)
Other charges	—		—		—		—
Balance, end of period	$	1,918	$	1,321	$	135	$	999
Cash surrender value	$	1,590	$	1,221	$	129	N/A

_______________

(1)Investment performance is reflected net of mortality and expense fees.

(2)Reinsured primarily reflects Protective Life reinsured ceded business.

	Six Months Ended June 30, 2022
	VUL		GMxB Core		Reinsured (1)
	(in millions)
Balance, beginning of period	$	1,832	$	315	$	1,244
Premiums and deposits	177		166		10
Policy charges	(60)		(1)		(14)
Surrenders and withdrawals	(16)		(3)		(24)
Benefit payments	(3)		—		(5)
Investment performance (2)	(361)		(74)		(141)
Net transfers from (to) general account	(26)		27		(2)
Other charges	—		—		—
Balance, end of period	$	1,543	$	430	$	1,068
Cash surrender value	$	1,241	$	392	N/A

_______________

(1)Reinsured primarily reflects Protective Life reinsured ceded business.

(2)Investment performance is reflected net of mortality and expense fees.

The following table reconciles the separate account liabilities to the separate account liability balance in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Separate Account Reconciliation
VUL	$	1,918
GMxB Core	1,321
IE	135
Reinsured	999
Other	135
Total	$	4,508

	December 31, 2022
	(in millions)
Separate Account Reconciliation
VUL	$	1,653
GMxB Core	756
IE	26
Reinsured	913
Other	26
Total	$	3,374

Policyholder Account Balance And Liability For Unpaid Claims And Claims Adjustment Expense

The following table reconciles the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Reconciliation
Payout - Legacy	$	119
UL (1)	322
Other (2)	308
Subtotal	749
Other policy funds	460
Grand total	$	1,209

______________

(1)Represents the SOP NLG Rider on UL contracts assumed from Equitable Financial.

(2)Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits.

	December 31, 2022
	(in millions)
Reconciliation
Universal Life (1)	$	58
Other (2)	220
Future policyholder benefits, total	278
Other policyholder liabilities	391
Total	$	669

______________

(1)Represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Internal Reinsurance Transaction described further in Note 1, these are no longer material and are not disclosed separately.

(2)Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits.

Schedule of Liability for Future Policy Benefits, Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefits and Expenses

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
	(in millions)
Payout-Legacy
Expected future benefit payments and expenses (undiscounted)	$	174	$	—
Expected future gross premiums (undiscounted)	—		—
Expected future benefit payments and expenses (discounted)	117		—
Expected future gross premiums (discounted)	—		—

Schedule of Liability for Future Policy Benefits, Revenue and Interest Accretion

The following tables provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	Gross Premium				Interest Accretion
	(in millions)
Revenue and Interest Accretion
Payout - Legacy (1)	$	21	$	—	$	—	$	—
Total	$	21	$	—	$	—	$	—

Schedule of Liability for Future Policy Benefits, Weighted Average Interest Rates

The following table provides the weighted average interest rates for the liability for future policy benefits as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
Weighted Average Interest Rate
Payout-Legacy
Interest accretion rate	5.5	%	—	%
Current discount rate	5.6	%	—	%

Balances of and Changes in Additional Liabilities Related to Insurance Guarantees

The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30,
	2023		2022
	UL (1)		Universal Life (2)
	(Dollars in millions)
Balance, beginning of period	$	—	$	57
Beginning balance before AOCI adjustments	—		55
Effect of changes in interest rate and cash flow assumptions and model changes	—		—
Effect of actual variances from expected experience	—		(1)
Adjusted beginning of period balance	—		54
Issuances (3)	322		—
Interest accrual	—		1
Net assessments collected	—		5
Benefit payments	—		—
Ending balance before shadow reserve adjustments	322		60
Effect of shadow reserve adjustment	—		(7)
Balance, end of period	$	322	$	53
Net liability for additional liability	$	322	$	53
Effect of reserve adjustment recorded in AOCI	—		—
Net liability for additional liability, after reinsurance recoverable	$	322	$	53
Weighted-average duration of additional liability - death benefit (years)	18.6		33.5

______________

(1)The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial.

(2)The 2022 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 1, these are no longer material and are not disclosed separately.

(3)Issuances represent the UL SOP NLG business assumed from Equitable Financial on April 1, 2023.

The following tables provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities for the six months ended June 30, 2023 and 2022.

	Six Months Ended June 30, 2023
	Assessments		Interest Accretion
	(in millions)
Revenue and Interest Accretion
UL (1)	$	258	$	4
Total	$	258	$	4

_____________

(1)The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial.

	Six Months Ended June 30, 2022
	Assessments		Interest Accretion
Revenue and Interest Accretion
Universal Life	9		1
Total	$	9	$	1

___________

(1)The 2022 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 1, these are no longer material and are not disclosed separately.

	Six Months Ended June 30,
	2023		2022
Weighted Average Interest Rate
Universal Life	4.5	%	5.5	%
Interest accretion rate	4.5	%	5.5	%

XML

MARKET RISK BENEFITS (Tables)

6 Months Ended

Jun. 30, 2023

Market Risk Benefit [Abstract]

Schedule of Market Risk Benefit, Activity

The following table presents the balances and changes to the balances for the market risk benefits for the GMxB benefits on deferred variable annuities for the three and six months ended June 30, 2023 and 2022

	Three Months Ended June 30,
	2023				2022
	GMxB Core		GMxB Legacy		GMxB Core		GMxB Legacy
	(Dollars in millions)
Balance, beginning of period	$	(14)	$	—	$	(7)	$	—
Balance BOP before changes in the instrument specific credit risk	(8)		—		(2)		—
Model changes and effect of changes in cash flow assumptions	—		—		—		—
Actual market movement effect	(108)		(264)		10		—
Interest accrual	9		68		—		—
Attributed fees accrued (1)	101		95		1		—
Benefit payments	(12)		(153)		—		—
Actual policyholder behavior different from expected behavior	6		(4)		1		—
Changes in future economic assumptions	(224)		(364)		(12)		—
Issuances (2)	1,292		6,865		—		—
Balance EOP before changes in the instrument-specific credit risk	1,056		6,243		(2)		—
Changes in the instrument-specific credit risk (3)	(9)		(6)		(8)		—
Balance, end of period	$	1,047	$	6,237	$	(10)	$	—
Weighted-average age of policyholders (years)	64.3		73.5		59.7		—
Net amount at risk	$	3,079	$	10,464	$	11	$	—

_______________

(1)Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Financial Statements.

(3)Changes are recorded in OCI.

	Six Months Ended June 30,
	2023				2022
	GMxB Core		GMxB Legacy		GMxB Core		GMxB Legacy
	(Dollars in millions)
Balance, beginning of period	$	(9)	$	—	$	—	$	—
Balance BOP before changes in the instrument specific credit risk	(8)		—		1		—
Model changes and effect of changes in cash flow assumptions	—		—		—		—
Actual market movement effect	(113)		(264)		14		—
Interest accrual	9		68		—		—
Attributed fees accrued (1)	102		95		1		—
Benefit payments	(12)		(153)		—		—
Actual policyholder behavior different from expected behavior	8		(4)		2		—
Changes in future economic assumptions	(222)		(364)		(19)		—
Issuances (2)	1,292		6,865		(1)		—
Balance EOP before changes in the instrument-specific credit risk	1,056		6,243		(2)		—
Changes in the instrument-specific credit risk (3)	(9)		(6)		(8)		—
Balance, end of period	$	1,047	$	6,237	$	(10)	$	—
Weighted-average age of policyholders (years)	64.3		73.5		59.7		—
Net amount at risk	$	3,079	$	10,464	$	11	$	—

_______________

(1)Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Financial Statements.

(3)Changes are recorded in OCI.

The following table reconciles market risk benefits by the amounts in an asset position and amounts in a liability position to the market risk amounts in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023										December 31, 2022
	MRB Asset		MRB Liability		Net MRB		Purchased MRB		Total		MRB Asset		MRB Liability		Net MRB		Purchased MRB		Total
	(in millions)
GMxB Core	$	(25)	$	1,072	$	1,047	$	—	$	1,047	$	(12)	$	3	$	(9)	$	—	$	(9)
GMxB Legacy	—		6,237		6,237		—		6,237		—		—		—		—		—
Other (1)	(1)		54		53		(10)		43		—		12		12		(13)		(1)
Total	$	(26)	$	7,363	$	7,337	$	(10)	$	7,327	$	(12)	$	15	$	3	$	(13)	$	(10)

______________

(1)    Other, for June 30, 2023, primarily reflects Individual EquiVest. Other, for December 31, 2022, primarily reflects Protective Life Reinsured business.

XML

POLICYHOLDER ACCOUNT BALANCES (Tables)

6 Months Ended

Jun. 30, 2023

Policyholder Account Balance [Abstract]

Schedule of Policyholder Account Balance

The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts for the six months ended June 30, 2023 and 2022.

The payout annuities result from annuitization of current contracts. Inflows are the liquidation of the account values not premiums:

	Six Months Ended June 30, 2022
	2023		2022
	Payout-Legacy
	(in millions)
Present Value of Expected Future Policy Benefits
Balance, beginning of period	$	—	$	—
Beginning balance of original discount rate	—		—
Effect of changes in cash flow assumptions	—		—
Effect of actual variances from expected experience	—		—
Adjusted beginning of period balance	—		—
Issuances	120		—
Interest accrual	—		—
Benefits payments	—		—
Ending balance at original discount rate	120		—
Effect of changes in discount rate assumptions	(1)		—
Balance, end of period	$	119	$	—
Net liability for future policy benefits	$	119	$	—
Less: Reinsurance recoverable	—		—
Net liability for future policy benefits, after reinsurance recoverable	$	119	$	—
Weighted-average duration of liability for future policyholder benefits (years)	7.6		0

The following table summarizes the balances and changes in policyholders’ account balances for the six months ended June 30, 2023:

	Six Months Ended June 30, 2023
	UL		IUL		EI		EG		SCS (1)
	(Dollars in millions)
Balance, beginning of period	$	—	$	1,962	$	—	$	—	242
Issuances (2)	1,208		349		2,213		6,817		31,189
Premiums received	122		119		3		93		—
Policy charges	(128)		(93)		—		(1)		(2)
Surrenders and withdrawals	(4)		(25)		(74)		(230)		(606)
Benefit payments	(5)		(5)		(9)		(7)		(55)
Net transfers from (to) separate account	—		—		(12)		45		2,823
Interest credited (3)	9		73		16		69		2,212
Balance, end of period	$	1,202	$	2,380	$	2,137	$	6,786	$	35,803
Weighted-average crediting rate	3.32%		2.34%		2.92%		2.31%		N/A
Net amount at risk (4)	$	16,580	$	19,438	$	107	$	17	$	11
Cash surrender value	$	1,044	$	1,790	$	2,130	$	6,713	$	32,495

______________

(1)SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate.

(2)Issuances are related to the Reinsurance Treaty with Equitable Financial. See Note 1 of the Notes to these Financial Statements.

(3)SCS includes amounts related to the change in embedded derivative.

(4)For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder.

The following table summarizes the balances and changes in policyholders’ account balances for the six months ended June 30, 2022:

	Six Months Ended June 30, 2022
	IUL		VUL		GMxB Core		Reinsured (2)
	(Dollars in millions)
Balance, beginning of period	$	1,973	$	614	$	13	$	866
Issuances	—		—		—		—
Premiums received	127		9		30		18
Policy charges	(89)		(14)		(1)		(12)
Surrenders and withdrawals	(12)		—		—		(39)
Benefit payments	(4)		(4)		—		(6)
Net transfers from (to) separate account	—		26		(27)		2
Interest credited (3)	(54)		7		—		18
Other	—		—		—		—
Balance, end of period	$	1,941	$	638	$	15	$	847
Weighted-average crediting rate	2.18%		3.52%		1.00%		4.27%
Net amount at risk (4)	$	18,260	$	28,861	$	11	$	4,272
Cash surrender value	$	1,477	$	518	$	16	$	846

___________

(1)SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account.

(2)Reinsured primarily reflects Protective Life reinsured business.

(3)SCS includes amounts related to the change in embedded derivative.

(4)For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder.

The following table reconciles the policyholders account balances to the policyholders’ account balance liability in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Policyholders’ account balance reconciliation
UL	$	1,202
IUL	2,380
EI	2,137
EG	6,786
SCS	35,803
Other (1)	(27,294)
Total	$	21,014

______________

(1) Includes $(30) billion of assumed fair value of the modco reinsurance with Equitable Financial.

	December 31, 2022
	(in millions)
Policyholders’ account balance reconciliation
IUL	$	1,962
VUL	655
GMxB Core	27
IE	7
SCS	242
Reinsured	819
Other	39
Total	$	3,751

The following table presents the balances of and changes in separate account liabilities for the six months ended June 30, 2023 and 2022:

	Six Months Ended June 30, 2023
	VUL		GMxB Core		IE		Reinsured (2)
Balance, beginning of period	1,653		$	756	$	26	$	913
Premiums and deposits	190		439		270		11
Policy charges	(64)		(4)		—		(17)
Surrenders and withdrawals	(23)		(11)		(2)		(37)
Benefit payments	(5)		(3)		—		(11)
Investment performance (1)	192		79		4		141
Net transfers from (to) general account	(25)		65		(163)		(1)
Other charges	—		—		—		—
Balance, end of period	$	1,918	$	1,321	$	135	$	999
Cash surrender value	$	1,590	$	1,221	$	129	N/A

_______________

(1)Investment performance is reflected net of mortality and expense fees.

(2)Reinsured primarily reflects Protective Life reinsured ceded business.

	Six Months Ended June 30, 2022
	VUL		GMxB Core		Reinsured (1)
	(in millions)
Balance, beginning of period	$	1,832	$	315	$	1,244
Premiums and deposits	177		166		10
Policy charges	(60)		(1)		(14)
Surrenders and withdrawals	(16)		(3)		(24)
Benefit payments	(3)		—		(5)
Investment performance (2)	(361)		(74)		(141)
Net transfers from (to) general account	(26)		27		(2)
Other charges	—		—		—
Balance, end of period	$	1,543	$	430	$	1,068
Cash surrender value	$	1,241	$	392	N/A

_______________

(1)Reinsured primarily reflects Protective Life reinsured ceded business.

(2)Investment performance is reflected net of mortality and expense fees.

The following table reconciles the separate account liabilities to the separate account liability balance in the balance sheet as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	(in millions)
Separate Account Reconciliation
VUL	$	1,918
GMxB Core	1,321
IE	135
Reinsured	999
Other	135
Total	$	4,508

	December 31, 2022
	(in millions)
Separate Account Reconciliation
VUL	$	1,653
GMxB Core	756
IE	26
Reinsured	913
Other	26
Total	$	3,374

Schedule of Policyholder Account Balance, Guaranteed Minimum Crediting Rate

The following table presents the account values by range of guaranteed minimum crediting rates and the related range of the difference in basis points, between rates being credited policyholders and the respective guaranteed minimums as of June 30, 2023 and December 31, 2022:

June 30, 2023
Product (1)	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
		(in millions)
Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
	1.51% - 2.50%	76		13		476		130		695
	Greater than 2.50%	—		506		—		—		506
	Total	$	76	$	519	$	476	$	130	$	1,201

June 30, 2023
Product (1)	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		51 Basis Points - 150 Basis Points Above		Greater Than 150 Basis Points Above		Total
		(in millions)
Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
Indexed Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
	1.51% - 2.50%	1,125		596		559		—		2,280
	Greater than 2.50%	—		—		—		—		—
	Total	$	1,125	$	596	$	559	$	—	$	2,280
EQUI-VEST Individual	0.00% - 1.50%	$	51	$	218	$	—	$	—	$	269
	1.51% - 2.50%	44		—		—		—		44
	Greater than 2.50%	1,823		—		—		—		1,823
	Total	$	1,918	$	218	$	—	$	—	$	2,136
SCS	Products with either a fixed rate or no guaranteed minimum	N/A		N/A		N/A		N/A		N/A
EQUI-VEST Group	0.00% - 1.50%	$	497	$	1,982	$	23	$	315	$	2,817
	1.51% - 2.50%	258		—		—		—		258
	Greater than 2.50%	2,844		—		1		—		2,845
	Total	$	3,599	$	1,982	$	24	$	315	$	5,920

December 31, 2022
Product	Range of Guaranteed Minimum Crediting Rate	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above		51 Basis Points-150 Basis Points Above		Greater Than 150 Basis Points Above		Total
		(in millions)
Indexed Universal Life	0.00% - 1.50%	$	—	$	—	$	—	$	—	$	—
	1.51% - 2.50%	1,202		666		73		—		1,941
	Greater than 2.50%	—		—		—		—		—
	Total	$	1,202	$	666	$	73	$	—	$	1,941
Variable Universal Life	0.00% - 1.50%	$	18	$	30	$	2	$	—	$	50
	1.51% - 2.50%	73		12		—		—		85
	Greater than 2.50%	460		—		2		—		462
	Total	$	551	$	42	$	4	$	—	$	597
Investment Edge	0.00% - 1.50%	$	7	$	—	$	—	$	—	$	7
	1.51% - 2.50%	—		—		—		—		—
	Greater than 2.50%	—		—		—		—		—
	Total	$	7	$	—	$	—	$	—	$	7
GMxB Core	0.00% - 1.50%	$	32	$	—	$	—	$	—	$	32
	1.51% - 1.51%	—		—		—		—		—
	Greater than 2.50%	—		—		—		—		—
	Total	$	32	$	—	$	—	$	—	$	32

Schedule of Investment in Variable Insurance Trust Mutual Funds

The following table presents the aggregate fair value of separate account assets by major asset category as of June 30, 2023 and December 31, 2022:

	June 30, 2023
	Life Insurance & Employee Benefits Products		Individual Variable Annuity Products		Employer - Sponsored Products		Other		Legacy Segment		Total
	(in millions)
Asset Type
Mutual Funds	$	2,414	$	2,081	$	—	$	13	$	—	$	4,508
Total	$	2,414	$	2,081	$	—	$	13	$	—	$	4,508

	December 31, 2022
	Life Insurance & Employee Benefits Products			Individual Variable Annuity Products			Employer - Sponsored Products			Other			Legacy Segment		Total
	(in millions)
Asset Type
Mutual Funds	$	2,096	—	$	1,265	—	$	—	—	$	13	—	$	—	$	3,374
Total	$	2,096		$	1,265		$	—		$	13		$	—	$	3,374

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EQUITY (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of June 30, 2023 and December 31, 2022 is as follows:

	June 30, 2023		December 31, 2022
	(in millions)
Unrealized gains (losses) on investments	$	(362)	$	(383)
Market risk benefits - instrument-specific credit risk component	16		1
Liability or future policy benefits - current discount rate component	$	1	$	—
Accumulated other comprehensive income (loss)	$	(345)	$	(382)

Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes

The components of OCI, net of taxes for the three and six months ended June 30, 2023 and 2022, follow:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Change in net unrealized gains (losses) on investments:
Net unrealized gains (losses) arising during the period	$	(51)	$	(159)	$	21	$	(335)
(Gains) losses reclassified into net income (loss) during the period (1)	—		2		4		3
Net unrealized gains (losses) on investments	(51)		(157)		25		(332)
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other	—		4		(1)		8
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(28), $(41), $(12) and $(86)).	(51)		(153)		24		(324)
Change in LFPB discount rate and MRB credit risk
Market risk benefits - change in instrument-specific credit risk (net of deferred income tax expense (benefit) of $2, $1, $3 and $2).	7		3		12		8
Liability for future policy benefits - change in current discount rate (net of deferred income tax expense (benefit) of $—, $—, $—, and $—)	1		—		1		—
Other comprehensive income (loss)	$	(43)	$	(150)	$	37	$	(316)

____________

(1)See “Reclassification adjustment” in Note 3 of the Notes to these Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $(2) million, $(1) million, $(1) million and $(1) million for the three and six months ended June 30, 2023 and 2022, respectively.

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UNPAID CLAIM AND CLAIM EXPENSES (Tables)

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

Schedules of Liability for Unpaid Claims and Claims Adjustment Expense

The following summarizes the change in liability for unpaid claims and claim expenses:

Liability for Unpaid Claims and Claim Expenses

	Six Months Ended June 30,
	2023		2022
	(in millions)
Gross Balance, beginning of period	$	110	$	78
Less Reinsurance	36		23
Net Balance, beginning of period	74		55
Incurred Claims (net) Related to:
Current Period	121		88
Prior Period	(14)		9
Total Incurred	107		97
Paid Claims (net) Related to:
Current Period	65		49
Prior Period	33		27
Total Paid	98		76
Net Balance, end of period	83		76
Add Reinsurance	40		29
Gross Balance, end of period	$	123	$	105

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REINSURANCE (Tables)

6 Months Ended

Jun. 30, 2023

Reinsurance Disclosures [Abstract]

Schedule of Effect of Reinsurance

The following table summarizes the effect of reinsurance:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
					(in millions)
Direct charges and fee income	$	92	$	78	$	178	$	151
Reinsurance assumed - Equitable Financial	345		—		345		—
Reinsurance ceded	(26)		(22)		(51)		(39)
Policy charges and fee income	$	411	$	56	$	472	$	112
Direct premiums	$	86	$	74	$	171	$	133
Reinsurance assumed - Equitable Financial	40		—		40		—
Reinsurance ceded	(14)		(14)		(30)		(24)
Premiums	$	112	$	60	$	181	$	109
Direct policyholders’ benefits	$	110	$	106	$	209	$	191
Reinsurance assumed - Equitable Financial	264		—		264		—
Reinsurance ceded	(39)		(24)		(59)		(35)
Policyholders’ benefits	$	335	$	82	$	414	$	156
Direct interest credited to policyholders’ account balances	$	42	$	32	$	74	$	77
Reinsurance assumed - Equitable Financial	151		—		151		—
Reinsurance ceded	(8)		(9)		(17)		(35)
Interest credited to policyholders’ account balances	$	185	$	23	$	208	$	42

Summary of Composition of Pool of Assets

There is a diverse pool of assets supporting the funds withheld and NI modco arrangement with Equitable Financial. The following table summarizes the composition of the pool of assets at June 30, 2023:

	June 30, 2023
	Carrying Value		Fair Value
	(in millions)
Fixed maturities	$	25,889	$	25,889
Mortgage loans on real estate	8,528		7,391
Policy loans	229		230
Other equity investments	245		245
Other invested assets (1)	7,249		7,249
Total assets supporting funds withheld	$	42,140	$	41,004

(1)    Other invested assets includes derivatives and cash and cash equivalents.

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REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Changes and Error Corrections [Abstract]

Financial Information Affected by Revisions and Change in Accounting Principle

	Three Months Ended June 30, 2022										Six Months Ended June 30, 2022
	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised		As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised
	(in millions)
Statements of Income (Loss)
Benefits and other deductions
Other operating costs and expenses	$	22	$	(2)	$	20	$	1	$	21	$	43	$	(1)	$	42	$	2	$	44
Total benefits and deductions	177		(6)		171		1		172		338		(21)		317		2		319
Income (loss) from continuing operations, before income taxes	(12)		(20)		(32)		(1)		(33)		(34)		(23)		(57)		(2)		(59)
Income tax (expense) benefit from continuing operations	(1)		10		9		(1)		8		2		13		15		(1)		14
Net income (loss) from continuing operations	(13)		(10)		(23)		(2)		(25)		(32)		(10)		(42)		(3)		(45)
Net income (loss)	$	(13)	$	(10)	$	(23)	$	(2)	$	(25)	$	(32)	$	(10)	$	(42)	$	(3)	$	(45)

	Three Months Ended June 30, 2022										Six Months Ended June 30, 2022
	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised		As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revisions		As Revised
	(in millions)
Statements of Comprehensive Income (Loss)
Net income (loss)	$	(13)	$	(10)	$	(23)	$	(2)	$	(25)	$	(32)	$	(10)	$	(42)	$	(3)	$	(45)
Comprehensive income (loss)	$	(150)	$	(23)	$	(173)	$	(2)	$	(175)	$	(319)	$	(40)	$	(359)	$	(3)	$	(361)

	Three Months Ended June 30, 2022
Statements of Equity:	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revision		As Revised
	(in millions)
Additional paid-in capital, beginning of year	$	680	$	—	$	680	$	1	$	681
Additional paid-in capital, end of period	681		—		681		1		682
Accumulated Deficit, beginning of year	(79)		(64)		(142)		(12)		(154)
Net income (loss)	(13)		(10)		(23)		(2)		(25)
Accumulated Deficit, end of period	(92)		(74)		(166)		(13)		(179)
Total equity, end of period	$	391	$	(92)	$	299	$	(11)	$	288

	Six Months Ended June 30, 2022
Statements of Equity:	As Previously Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revision		As Revised
	(in millions)
Additional paid-in capital, beginning of year	$	679	$	—	$	679	$	1	$	680
Additional paid-in capital, end of year	681		—		681		1		682
Accumulated Deficit, beginning of year	(60)		(64)		(124)		(10)		(134)
Net income (loss)	(32)		(10)		(42)		(3)		(45)
Accumulated Deficit, end of year	(92)		(74)		(166)		(13)		(179)
Accumulated other comprehensive income (loss), beginning of year	86		12		98		—		98
Other comprehensive income (loss)	(287)		(30)		(317)		1		(316)
Total equity, end of year	$	391	$	(92)	$	299	$	(11)	$	288

	Six Months June 30, 2022
	As Reported		ASU 2018-12 Impact		As Adjusted		Impact of Revision		As Revised
	(in millions)
Statement of Cash Flows:
Cash flow from operating activities:
Net income (loss)	$	(32)	$	(10)	$	(42)	$	(3)	$	(45)
Future policy benefits	4		—		4		13		17
Reinsurance recoverable	1		—		1		(13)		(12)
Current and deferred income taxes	(2)		(13)		(15)		1		(14)
Other, net	$	104	$	—	$	104	$	2	$	106

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ORGANIZATION (Details) - USD ($) $ in Millions	Jun. 30, 2023	Apr. 01, 2023	Dec. 31, 2022
Organization [Abstract]
Funds withheld receivable		$ 11,200
Deposit contracts, liabilities		12,900
Liability for market risk benefits	$ 7,363	8,200	$ 15	[1]
Reinsurance recoverable, allowance for credit loss	0	1,700	0
Net liability for additional liability, after reinsurance recoverable		357
Reinsurance Retention Policy [Line Items]
Separate Accounts liabilities	4,508		3,374	[1]
Policyholder account balance	$ 21,014	13,900	$ 3,751
Modco receivable		28,700
Non-Insulated
Reinsurance Retention Policy [Line Items]
Policyholder account balance		32,400
Insulated
Reinsurance Retention Policy [Line Items]
Separate Accounts liabilities		$ 64,100

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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SIGNIFICANT ACCOUNTING POLICIES - Effect of Transition Adjustment to Total Equity Resulting (Details) - USD ($) $ in Millions	Jan. 01, 2021	Jun. 30, 2023	Dec. 31, 2022		Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Liability for Future Policy Benefit, Activity [Line Items]
Liability for future policy benefits		$ (1,209)	$ (669)	[1]
Market risk benefits		16	1
DAC	$ 587	$ 947	$ 760	[1]	$ 705	$ 672
Effect of Modified Retrospective Application Accounting Standards Update 2018-12
Liability for Future Policy Benefit, Activity [Line Items]
Liability for future policy benefits	0
Market risk benefits	1
DAC	110						$ 110
Unearned revenue liability and sales inducement assets	(37)
Total transition adjustment before taxes	74
Income taxes	(16)
Total transition adjustment (net of taxes)	58
Retained Earnings | Effect of Modified Retrospective Application Accounting Standards Update 2018-12
Liability for Future Policy Benefit, Activity [Line Items]
Liability for future policy benefits	0
Market risk benefits	2
DAC	0
Unearned revenue liability and sales inducement assets	0
Total transition adjustment before taxes	2
Income taxes	(1)
Total transition adjustment (net of taxes)	1
Accumulated Other Comprehensive Income (Loss) | Effect of Modified Retrospective Application Accounting Standards Update 2018-12
Liability for Future Policy Benefit, Activity [Line Items]
Liability for future policy benefits	0
Market risk benefits	(1)
DAC	110
Unearned revenue liability and sales inducement assets	(37)
Total transition adjustment before taxes	72
Income taxes	(15)
Total transition adjustment (net of taxes)	$ 57

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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SIGNIFICANT ACCOUNTING POLICIES - Schedule of Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022		Jun. 30, 2022	Dec. 31, 2021	Jan. 01, 2021	Dec. 31, 2020
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs	$ 947	$ 760	[1]	$ 705	$ 672	$ 587
As Previously Reported
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs							$ 477
Effect of Modified Retrospective Application Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs						110	110
VUL
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs	433	410		386	361
VUL | Life Insurance & Employee Benefits Products
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs						300
VUL | Life Insurance & Employee Benefits Products | As Previously Reported
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs							230
VUL | Life Insurance & Employee Benefits Products | Effect of Modified Retrospective Application Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs							70
IUL
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs	$ 294	$ 296		$ 297	$ 297
IUL | Life Insurance & Employee Benefits Products
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs						$ 287
IUL | Life Insurance & Employee Benefits Products | As Previously Reported
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs							247
IUL | Life Insurance & Employee Benefits Products | Effect of Modified Retrospective Application Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs							$ 40

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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SIGNIFICANT ACCOUNTING POLICIES - Schedule of Deferred Income (Details) - USD ($) $ in Millions	Jan. 01, 2021	Dec. 31, 2020
Deferred Policy Acquisition Cost [Line Items]
Deferred sale inducement cost	$ 106
As Previously Reported
Deferred Policy Acquisition Cost [Line Items]
Deferred sale inducement cost		$ 69
Effect of Modified Retrospective Application Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost [Line Items]
Deferred sale inducement cost		37
VUL | Life Insurance & Employee Benefits Products
Deferred Policy Acquisition Cost [Line Items]
Deferred sale inducement cost	83
VUL | Life Insurance & Employee Benefits Products | As Previously Reported
Deferred Policy Acquisition Cost [Line Items]
Deferred sale inducement cost		55
VUL | Life Insurance & Employee Benefits Products | Effect of Modified Retrospective Application Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost [Line Items]
Deferred sale inducement cost		28
IUL | Life Insurance & Employee Benefits Products
Deferred Policy Acquisition Cost [Line Items]
Deferred sale inducement cost	$ 23
IUL | Life Insurance & Employee Benefits Products | As Previously Reported
Deferred Policy Acquisition Cost [Line Items]
Deferred sale inducement cost		14
IUL | Life Insurance & Employee Benefits Products | Effect of Modified Retrospective Application Accounting Standards Update 2018-12
Deferred Policy Acquisition Cost [Line Items]
Deferred sale inducement cost		$ 9

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SIGNIFICANT ACCOUNTING POLICIES - Policyholders’ Account Balances (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	[1]	Jun. 30, 2023	Jun. 30, 2022	[1]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in income (loss) from continuing operations before income taxes	$ (20)	$ 33		$ (11)	$ 59
Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in income (loss) from continuing operations before income taxes	$ 5

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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INVESTMENTS - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) security loan	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) security loan	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) security
Net Investment Income [Line Items]
Number of unrealized loss positions | security	1,172		1,172		845
Debt securities exposure in single issuer greater than stated percentage of total investments	1.30%		1.30%
Fixed maturities available-for-sale, amortized cost	$ 6,180,000,000		$ 6,180,000,000		$ 2,606,000,000
Unrealized loss on available for sale securities	0		0		0
Gross unrealized losses	$ 334,000,000		$ 334,000,000		$ 223,000,000
Financing receivable, debt service ratio multiplier	2.0		2.0		2.0
Financing receivable, allowance for credit loss, excluding accrued interest	$ 0		$ 0		$ 0
Separate account equity investment carrying value	1,000,000		1,000,000		1,000,000
Fair Value, Recurring
Net Investment Income [Line Items]
Trading securities	$ 0		$ 0		$ 1,000,000
Minimum
Net Investment Income [Line Items]
Financing receivable, loan to value ratio percentage	0.00%		0.00%		0.00%
Maximum
Net Investment Income [Line Items]
Financing receivable, loan to value ratio percentage	50.00%		50.00%		50.00%
Fixed maturities
Net Investment Income [Line Items]
Accrued investment income receivable	$ 50,000,000		$ 50,000,000		$ 23,000,000
Accrued interest, written off			0	$ 0
Fixed maturities available-for-sale, amortized cost	6,200,000,000		6,200,000,000		2,600,000,000
Corporate
Net Investment Income [Line Items]
Debt securities exposure in single issuer of total investments	$ 54,000,000		$ 54,000,000		$ 24,000,000
Debt securities exposure in single issuer of total investments, percent	3.90%		3.90%		10.30%
Fixed maturities available-for-sale, amortized cost	$ 4,421,000,000		$ 4,421,000,000		$ 2,417,000,000
Gross unrealized losses	307,000,000		307,000,000		200,000,000
Commercial Mortgage Loans
Net Investment Income [Line Items]
Accrued investment income receivable	$ 0		$ 0		0
Number of loans held | loan	2		2
Accrued interest, written off	$ 0	$ 0	$ 0	0
Financing receivable, allowance for credit loss, excluding accrued interest	0		0		0
Financing receivable, allowance for credit loss, excluding accrued interest, period increase (decrease)			0	$ 0
Commercial Mortgage Loans | Greater than 2.0x | 0% - 50%
Net Investment Income [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	17,000,000		17,000,000		17,000,000
Individually Assessed Mortgage Loans
Net Investment Income [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	0		0		0
Mortgage loans foreclosure probable	0		0		0
Other Than Investment Grade | External Credit Rating, Non Investment Grade | Fixed maturities
Net Investment Income [Line Items]
Available-for-sale securities, amortized cost	$ 48,000,000		$ 48,000,000		$ 4,000,000
Percentage of available for sale securities	0.80%		0.80%		0.20%

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INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 6,180		$ 6,180		$ 2,606
Allowance for Credit Losses	0		0		0
Gross Unrealized Gains	5		5		0
Gross Unrealized Losses	381		381		388
Fair Value	5,804		5,804		2,218	[1]
Debt Securities, Available-for-Sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Due in one year or less	127		127
Due in years two through five	888		888
Due in years six through ten	2,370		2,370
Due after ten years	1,132		1,132
Subtotal	4,517		4,517
Amortized Cost	6,180		6,180
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]
Due in one year or less	126		126
Due in years two through five	860		860
Due in years six through ten	2,256		2,256
Due after ten years	926		926
Subtotal	4,168		4,168
Fair Value	5,804		5,804		2,218	[1]
Available For Sale Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments [Abstract]
Proceeds from sales	0	$ 39	50	$ 62
Gross gains on sales	0	0	0	0
Gross losses on sales	0	3	(5)	4
Net (increase) decrease in Allowance for Credit and Intent to Sell losses	0	0	0	0
Fixed Maturities - Credit Loss Impairments
Balance, beginning of period	0	2	0	2
Previously recognized impairments on securities that matured, paid, prepaid or sold	0	(2)	0	(2)
Recognized impairments on securities impaired to fair value this period	0	0	0	0
Credit losses recognized this period on securities for which credit losses were not previously recognized	0	0	0
Additional credit losses this period on securities previously impaired	0	0	0	0
Increases due to passage of time on previously recorded credit losses	0	0	0	0
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)	0	0	0	0
Balance, end of period	0	$ 0	0	$ 0
Corporate
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4,421		4,421		2,417
Allowance for Credit Losses	0		0		0
Gross Unrealized Gains	5		5		0
Gross Unrealized Losses	345		345		359
Fair Value	4,081		4,081		2,058
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]
Fair Value	4,081		4,081		2,058
U.S. Treasury, government and agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	15		15		14
Allowance for Credit Losses	0		0		0
Gross Unrealized Gains	0		0		0
Gross Unrealized Losses	1		1		0
Fair Value	14		14		14
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]
Fair Value	14		14		14
States and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	51		51		43
Allowance for Credit Losses	0		0		0
Gross Unrealized Gains	0		0		0
Gross Unrealized Losses	8		8		9
Fair Value	43		43		34
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]
Fair Value	43		43		34
Foreign governments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	30		30
Allowance for Credit Losses	0		0
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		0
Fair Value	30		30
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]
Fair Value	30		30
Residential mortgage-backed
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	416		416		8
Allowance for Credit Losses	0		0		0
Gross Unrealized Gains	0		0		0
Gross Unrealized Losses	5		5		2
Fair Value	411		411		6
Debt Securities, Available-for-Sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Without single maturity date	416		416
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]
Without single maturity date	411		411
Fair Value	411		411		6
Asset-backed
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,082		1,082		43
Allowance for Credit Losses	0		0		0
Gross Unrealized Gains	0		0		0
Gross Unrealized Losses	6		6		2
Fair Value	1,076		1,076		41
Debt Securities, Available-for-Sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Without single maturity date	1,082		1,082
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]
Without single maturity date	1,076		1,076
Fair Value	1,076		1,076		41
Commercial mortgage-backed
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	165		165		81
Allowance for Credit Losses	0		0		0
Gross Unrealized Gains	0		0		0
Gross Unrealized Losses	16		16		16
Fair Value	149		149		65
Debt Securities, Available-for-Sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Without single maturity date	165		165
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]
Without single maturity date	149		149
Fair Value	$ 149		$ 149		$ 65

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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INVESTMENTS - Net Unrealized Investment (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 375	$ 462	[1]	$ 232	$ 647	[1]
Impact of net unrealized investment gains (losses)				2
Ending balance	1,397	288	[1]	1,397	288	[1]
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Net Unrealized Gains (Losses) on Investments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(312)	(93)		(388)	128
Net investment gains (losses) arising during the period	(64)	(202)		7	(424)
Included in net income (loss)	0	(2)		5	3
Excluded from Net income (loss)	0	0
Other				0	0
Impact of net unrealized investment gains (losses)	0	0		0	0
Ending balance	(376)	(293)		(376)	(293)
Net unrealized investment gains (losses) excluding credit losses	(376)	(293)
Net unrealized investment gains (losses) with credit losses	0	0
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	6	2		8	(3)
Impact of net unrealized investment gains (losses)	1	4		(1)	9
Ending balance	7	6		7	6
Net unrealized investment gains (losses) excluding credit losses	7	6
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	145	19		161	(26)
Other				0
Impact of net unrealized investment gains (losses)	14	41		(2)	86
Ending balance	159	60		159	60
Net unrealized investment gains (losses) excluding credit losses	159	60
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(161)	(72)		(219)	99
Net investment gains (losses) arising during the period	(64)	(202)		7	(424)
Included in net income (loss)	0	(2)		5	3
Excluded from Net income (loss)	0	0
Other				0	0
Impact of net unrealized investment gains (losses)	15	45		(3)	95
Ending balance	(210)	(227)		(210)	(227)
Net unrealized investment gains (losses) excluding credit losses	(210)	(227)
Net unrealized investment gains (losses) with credit losses	0	0
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) with credit losses | Net Unrealized Gains (Losses) on Investments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending balance	0	0		0	0
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) with credit losses | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending balance	0	0		0	0
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) excluding credit losses | Net Unrealized Gains (Losses) on Investments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending balance	(376)	(293)		(376)	(293)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) excluding credit losses | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending balance	(210)	(227)		(210)	(227)
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Net unrealized investment gains (losses) with credit losses	0	0
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Net unrealized investment gains (losses) with credit losses	0	0
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) with credit losses | Policyholders’ Liabilities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending balance	0	0		0	0
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) with credit losses | Deferred Income Tax Asset (Liability)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending balance	0	0		0	0
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) excluding credit losses | Policyholders’ Liabilities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending balance	7	6		7	6
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net unrealized investment gains (losses) excluding credit losses | Deferred Income Tax Asset (Liability)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending balance	$ 159	$ 60		$ 159	$ 60

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, fair value	$ 3,035	$ 1,507
Less than 12 months, gross unrealized losses	47	165
12 months or longer, fair value	1,688	673
12 Months or Longer, gross unrealized Losses	334	223
Fair value	4,723	2,180
Gross unrealized losses	381	388
Corporate
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, fair value	1,928	1,446
Less than 12 months, gross unrealized losses	38	159
12 months or longer, fair value	1,555	590
12 Months or Longer, gross unrealized Losses	307	200
Fair value	3,483	2,036
Gross unrealized losses	345	359
U.S. Treasury, government and agency
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, fair value	5
Less than 12 months, gross unrealized losses	0
12 months or longer, fair value	9
12 Months or Longer, gross unrealized Losses	1
Fair value	14
Gross unrealized losses	1
States and political subdivisions
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, fair value	6	19
Less than 12 months, gross unrealized losses	1	4
12 months or longer, fair value	27	13
12 Months or Longer, gross unrealized Losses	7	5
Fair value	33	32
Gross unrealized losses	8	9
Residential mortgage-backed
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, fair value	331	2
Less than 12 months, gross unrealized losses	2	0
12 months or longer, fair value	6	4
12 Months or Longer, gross unrealized Losses	3	2
Fair value	337	6
Gross unrealized losses	5	2
Asset-backed
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, fair value	680	35
Less than 12 months, gross unrealized losses	5	1
12 months or longer, fair value	31	6
12 Months or Longer, gross unrealized Losses	1	1
Fair value	711	41
Gross unrealized losses	6	2
Commercial mortgage-backed
Available For Sale Securities Continuous Unrealized Loss Position [Line Items]
Less than 12 months, fair value	85	5
Less than 12 months, gross unrealized losses	1	1
12 months or longer, fair value	60	60
12 Months or Longer, gross unrealized Losses	15	15
Fair value	145	65
Gross unrealized losses	$ 16	$ 16

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INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Net investment gains (losses) recognized during the period on securities held at the end of the period	$ 0	$ (1)	$ (1)	$ (3)
Net investment gains (losses) recognized on securities sold during the period	0	0	0	0
Unrealized and realized gains (losses) on equity securities	$ 0	$ (1)	$ (1)	$ (3)

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INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Net investment gains (losses) recognized during the period on securities held at the end of the period	$ 2	$ 0	$ 0	$ 0
Net investment gains (losses) recognized on securities sold during the period	0	0	0	0
Unrealized and realized gains (losses) on trading securities	2	0	0	0
Interest and dividend income from trading securities	0	0	0	0
Net investment income (loss) from trading securities	$ 2	$ 0	$ 0	$ 0

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INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Net Investment Income [Line Items]
Gross Investment Income, Operating	$ 58	$ 21		$ 88	$ 42
Investment Income, Investment Expense	(2)	0		(3)	(1)
Net investment income (loss)	56	21	[1]	85	41	[1]
Fixed maturities
Net Investment Income [Line Items]
Investment income	48	22		77	43
Mortgage loans on real estate
Net Investment Income [Line Items]
Investment income	0	0		0	0
Policy loans
Net Investment Income [Line Items]
Investment income	1	1		2	2
Other equity investments
Net Investment Income [Line Items]
Other equity investments	0	(2)		0	(3)
Trading securities
Net Investment Income [Line Items]
Investment income	2	0		0	0
Other investment income
Net Investment Income [Line Items]
Investment income	$ 7	$ 0		$ 9	$ 0

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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INVESTMENTS - Investment Gains (Losses), Net (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Net Investment Income [Line Items]
Investment gains (losses), net	$ 0	$ (2)	[1]	$ (5)	$ (3)	[1]
Fixed maturities
Net Investment Income [Line Items]
Investment gains (losses), net	0	(2)		(5)	(3)
Mortgage loans on real estate
Net Investment Income [Line Items]
Investment gains (losses), net	0	0		0	0
Other equity investments
Net Investment Income [Line Items]
Investment gains (losses), net	$ 0	$ 0		$ 0	$ 0

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Notional Amount	$ 3,642	$ 885
Derivative Assets	491	63
Derivative Liabilities	8,026	106
Futures
Derivatives, Fair Value [Line Items]
Notional Amount	1,324	394
Derivative Assets	0	0
Derivative Liabilities	0	0
Options
Derivatives, Fair Value [Line Items]
Notional Amount	1,948	209
Derivative Assets	546	34
Derivative Liabilities	167	16
Futures
Derivatives, Fair Value [Line Items]
Notional Amount	370	282
Derivative Assets	0	0
Derivative Liabilities	0	0
Margin
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	81	29
Derivative Liabilities	0	0
Collateral
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	0	0
Derivative Liabilities	346	3
Derivatives
Derivatives, Fair Value [Line Items]
Notional Amount	3,642	885
Derivative Assets	627	63
Derivative Liabilities	513	19
MSO, SCS and IUL indexed features
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	0	0
Derivative Liabilities	7,347	87
Funds Withheld
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	(136)	0
Derivative Liabilities	0	0
Modco receivable
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	0	0
Derivative Liabilities	166	0
Embedded derivative
Derivatives, Fair Value [Line Items]
Notional Amount	0	0
Derivative Assets	(136)	0
Derivative Liabilities	$ 7,513	$ 87

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DERIVATIVES - Financial Statement Impact of Derivatives By Category (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	$ (700)	$ (3)	[1]	$ (694)	$ (11)	[2]
Futures
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	70	(66)		98	(74)
Options
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	105	(3)		111	(3)
Futures
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(12)	(12)		(4)	(24)
Derivatives
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	163	(81)		205	(101)
MSO, SCS and IUL indexed features
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(2,194)	78		(2,230)	90
Funds Withheld
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	(599)	0		(599)	0
Modco receivable
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	1,930	0		1,930	0
Embedded derivative
Derivatives, Fair Value [Line Items]
Net derivative gains (losses)	$ (863)	$ 78		$ (899)	$ 90

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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DERIVATIVES - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Cash and securities collateral for derivative contract	$ 346	$ 3
Collateral	0	0
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices
Derivative [Line Items]
Initial margin requirements	67	22
Us Treasury Notes Ultra Long Bonds And Euro Dollar
Derivative [Line Items]
Initial margin requirements	$ 14	$ 10

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DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Assets
Net Amount Presented in the Balance Sheets	$ 491	$ 63
Liabilities
Net Amount Presented in the Balance Sheets	8,026	106
Derivative
Assets
Gross Amount Recognized	627	63
Gross Amount Offset in the Balance Sheets	513	18
Net Amount Presented in the Balance Sheets	114	45
Gross Amount not Offset in the Balance Sheets	0	0
Net Amount	114	45
Liabilities
Gross Amount Recognized	513	19
Gross Amount Offset in the Balance Sheets	513	18
Net Amount Presented in the Balance Sheets	0	1
Gross Amount not Offset in the Balance Sheets	0	0
Net Amount	0	1
Other financial assets
Assets
Gross Amount Recognized	3	2
Gross Amount Offset in the Balance Sheets	0	0
Net Amount Presented in the Balance Sheets	3	2
Gross Amount not Offset in the Balance Sheets	0	0
Net Amount	3	2
Other invested assets
Assets
Gross Amount Recognized	630	65
Gross Amount Offset in the Balance Sheets	513	18
Net Amount Presented in the Balance Sheets	117	47
Gross Amount not Offset in the Balance Sheets	0	0
Net Amount	117	47
Other financial liabilities
Liabilities
Gross Amount Recognized	2,124	72
Gross Amount Offset in the Balance Sheets	0	0
Net Amount Presented in the Balance Sheets	2,124	72
Gross Amount not Offset in the Balance Sheets	0	0
Net Amount	2,124	72
Other liabilities
Liabilities
Gross Amount Recognized	2,637	91
Gross Amount Offset in the Balance Sheets	513	18
Net Amount Presented in the Balance Sheets	2,124	73
Gross Amount not Offset in the Balance Sheets	0	0
Net Amount	$ 2,124	$ 73

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DAC AND OTHER DEFERRED ASSETS/LIABILITIES - DAC Costs (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023		Jun. 30, 2022
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	$ 760	[1]	$ 672
Capitalization			53
Amortization			20
Balance, end of year	947		705
Operating Segments
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	760
Capitalization	205
Amortization	27
Balance, end of year	938
VUL
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	410		361
Capitalization			35
Amortization			10
Balance, end of year	433		386
VUL | Operating Segments
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	410
Capitalization	34
Amortization	11
Balance, end of year	433
IUL
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	296		297
Capitalization			9
Amortization			9
Balance, end of year	294		297
IUL | Operating Segments
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	296
Capitalization	7
Amortization	9
Balance, end of year	294
GMxB Core
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	40		14
Capitalization			9
Amortization			1
Balance, end of year	72		$ 22
GMxB Core | Operating Segments
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	40
Capitalization	34
Amortization	2
Balance, end of year	72
IE
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	1
Balance, end of year	12
IE | Operating Segments
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	1
Capitalization	11
Amortization	0
Balance, end of year	12
SCS
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	13
Balance, end of year	127
SCS | Operating Segments
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance, beginning of year	13
Capitalization	119
Amortization	5
Balance, end of year	$ 127

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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DAC AND OTHER DEFERRED ASSETS/LIABILITIES - DAC Credits (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
VUL
Changes in unearned revenue liability
Balance, beginning of the period	$ 159	$ 118
Capitalization	27	23
Amortization	(5)	(4)
Balance, end of the period	181	137
IUL
Changes in unearned revenue liability
Balance, beginning of the period	157	94
Capitalization	33	36
Amortization	(5)	(4)
Balance, end of the period	$ 185	$ 126

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DAC AND OTHER DEFERRED ASSETS/LIABILITIES - Reconciliation of DAC (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022		Jun. 30, 2022	Dec. 31, 2021	Jan. 01, 2021
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs	$ 947	$ 760	[1]	$ 705	$ 672	$ 587
VUL
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs	433	410		386	361
IUL
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs	294	296		297	297
GMxB Core
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs	72	40		$ 22	$ 14
Investment Edge
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs	12	1
SCS
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs	127	13
Others
Deferred Policy Acquisition Cost [Line Items]
Deferred policy acquisition costs	$ 9	$ 0

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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FAIR VALUE DISCLOSURES - Schedules Of Assets And Liabilities Measured On Recurring Basis (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Assets:
Fixed maturities available for sale, at fair value	$ 5,804	$ 2,218	[1]
Fair Value, Recurring
Assets:
Fixed maturities available for sale, at fair value	5,804	2,218
Other equity investments	38	19
Other invested assets:	379	18
Cash equivalents	1,028	272
Funds withheld Receivable	(136)	0
Purchased market risk benefits	10	13
Assets for market risk benefits	26	12
Separate Accounts assets	4,508	3,374
Total Assets	11,657	5,926
Liabilities:
Total Liabilities	14,876	102
Fair Value, Recurring | Variable Interest Entity, Primary Beneficiary
Liabilities:
Liabilities for market risk benefits	7,363	15
Fair Value, Recurring | Level 1
Assets:
Fixed maturities available for sale, at fair value	0	0
Other equity investments	20	0
Other invested assets:	0	0
Cash equivalents	1,028	272
Funds withheld Receivable	0	0
Purchased market risk benefits	0	0
Assets for market risk benefits	0	0
Separate Accounts assets	4,501	3,367
Total Assets	5,549	3,639
Liabilities:
Total Liabilities	0	0
Fair Value, Recurring | Level 1 | Variable Interest Entity, Primary Beneficiary
Liabilities:
Liabilities for market risk benefits	0	0
Fair Value, Recurring | Level 2
Assets:
Fixed maturities available for sale, at fair value	5,743	2,200
Other equity investments	18	19
Other invested assets:	379	18
Cash equivalents	0	0
Funds withheld Receivable	0	0
Purchased market risk benefits	0	0
Assets for market risk benefits	0	0
Separate Accounts assets	7	7
Total Assets	6,147	2,244
Liabilities:
Total Liabilities	7,347	87
Fair Value, Recurring | Level 2 | Variable Interest Entity, Primary Beneficiary
Liabilities:
Liabilities for market risk benefits	0	0
Fair Value, Recurring | Level 3
Assets:
Fixed maturities available for sale, at fair value	61	18
Other equity investments	0	0
Other invested assets:	0	0
Cash equivalents	0	0
Funds withheld Receivable	(136)	0
Purchased market risk benefits	10	13
Assets for market risk benefits	26	12
Separate Accounts assets	0	0
Total Assets	(39)	43
Liabilities:
Total Liabilities	7,529	15
Fair Value, Recurring | Level 3 | Variable Interest Entity, Primary Beneficiary
Liabilities:
Liabilities for market risk benefits	7,363	15
Fair Value, Recurring | NAV
Assets:
Separate Accounts assets		1
Corporate | Fair Value, Recurring
Assets:
Fixed maturities available for sale, at fair value	4,081	2,058
Corporate | Fair Value, Recurring | Level 1
Assets:
Fixed maturities available for sale, at fair value	0	0
Corporate | Fair Value, Recurring | Level 2
Assets:
Fixed maturities available for sale, at fair value	4,020	2,040
Corporate | Fair Value, Recurring | Level 3
Assets:
Fixed maturities available for sale, at fair value	61	18
U.S. Treasury, government and agency
Assets:
Fixed maturities available for sale, at fair value	14	14
U.S. Treasury, government and agency | Fair Value, Recurring
Assets:
Fixed maturities available for sale, at fair value	14	14
U.S. Treasury, government and agency | Fair Value, Recurring | Level 1
Assets:
Fixed maturities available for sale, at fair value	0	0
U.S. Treasury, government and agency | Fair Value, Recurring | Level 2
Assets:
Fixed maturities available for sale, at fair value	14	14
U.S. Treasury, government and agency | Fair Value, Recurring | Level 3
Assets:
Fixed maturities available for sale, at fair value	0	0
States and political subdivisions
Assets:
Fixed maturities available for sale, at fair value	43	34
States and political subdivisions | Fair Value, Recurring
Assets:
Fixed maturities available for sale, at fair value	43	34
States and political subdivisions | Fair Value, Recurring | Level 1
Assets:
Fixed maturities available for sale, at fair value	0	0
States and political subdivisions | Fair Value, Recurring | Level 2
Assets:
Fixed maturities available for sale, at fair value	43	34
States and political subdivisions | Fair Value, Recurring | Level 3
Assets:
Fixed maturities available for sale, at fair value	0	0
Foreign governments
Assets:
Fixed maturities available for sale, at fair value	30
Foreign governments | Fair Value, Recurring
Assets:
Fixed maturities available for sale, at fair value	30	6
Foreign governments | Fair Value, Recurring | Level 1
Assets:
Fixed maturities available for sale, at fair value	0	0
Foreign governments | Fair Value, Recurring | Level 2
Assets:
Fixed maturities available for sale, at fair value	30	6
Foreign governments | Fair Value, Recurring | Level 3
Assets:
Fixed maturities available for sale, at fair value	0	0
Residential mortgage-backed
Assets:
Fixed maturities available for sale, at fair value	411	6
Residential mortgage-backed | Fair Value, Recurring
Assets:
Fixed maturities available for sale, at fair value	411
Residential mortgage-backed | Fair Value, Recurring | Level 1
Assets:
Fixed maturities available for sale, at fair value	0
Residential mortgage-backed | Fair Value, Recurring | Level 2
Assets:
Fixed maturities available for sale, at fair value	411
Residential mortgage-backed | Fair Value, Recurring | Level 3
Assets:
Fixed maturities available for sale, at fair value	0
Asset-backed
Assets:
Fixed maturities available for sale, at fair value	1,076	41
Asset-backed | Fair Value, Recurring
Assets:
Fixed maturities available for sale, at fair value	1,076	41
Asset-backed | Fair Value, Recurring | Level 1
Assets:
Fixed maturities available for sale, at fair value	0	0
Asset-backed | Fair Value, Recurring | Level 2
Assets:
Fixed maturities available for sale, at fair value	1,076	41
Asset-backed | Fair Value, Recurring | Level 3
Assets:
Fixed maturities available for sale, at fair value	0	0
Commercial mortgage-backed
Assets:
Fixed maturities available for sale, at fair value	149	65
Commercial mortgage-backed | Fair Value, Recurring
Assets:
Fixed maturities available for sale, at fair value	149	65
Commercial mortgage-backed | Fair Value, Recurring | Level 1
Assets:
Fixed maturities available for sale, at fair value	0	0
Commercial mortgage-backed | Fair Value, Recurring | Level 2
Assets:
Fixed maturities available for sale, at fair value	149	65
Commercial mortgage-backed | Fair Value, Recurring | Level 3
Assets:
Fixed maturities available for sale, at fair value	0	0
Options | Fair Value, Recurring
Assets:
Other invested assets:	379	18
Options | Fair Value, Recurring | Level 1
Assets:
Other invested assets:	0	0
Options | Fair Value, Recurring | Level 2
Assets:
Other invested assets:	379	18
Options | Fair Value, Recurring | Level 3
Assets:
Other invested assets:	0	0
SCS, MSO and IUL indexed features’ liability | Fair Value, Recurring
Liabilities:
Liabilities	(7,347)	(87)
SCS, MSO and IUL indexed features’ liability | Fair Value, Recurring | Level 1
Liabilities:
Liabilities	0	0
SCS, MSO and IUL indexed features’ liability | Fair Value, Recurring | Level 2
Liabilities:
Liabilities	(7,347)	(87)
SCS, MSO and IUL indexed features’ liability | Fair Value, Recurring | Level 3
Liabilities:
Liabilities	0	0
Modco receivable | Fair Value, Recurring
Liabilities:
Liabilities	(166)	0
Modco receivable | Fair Value, Recurring | Level 1
Liabilities:
Liabilities	0	0
Modco receivable | Fair Value, Recurring | Level 2
Liabilities:
Liabilities	0	0
Modco receivable | Fair Value, Recurring | Level 3
Liabilities:
Liabilities	$ (166)	$ 0

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Fair Value Inputs Assets Quantitative Information 1 [Line Items]
AFS fixed maturities transferred between Level 2 and 3 (percentage)			0.70%	1.70%
Level 3 | Corporate
Fair Value Inputs Assets Quantitative Information 1 [Line Items]
Transfers out of Level 3	$ 0	$ (5)	$ (10)	$ (5)
Level 3 | Fair Value, Nonrecurring
Fair Value Inputs Assets Quantitative Information 1 [Line Items]
Fair value measurements not included in quantitative information about level 3 fair value measurements	$ 29		$ 29		$ 14

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FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation For All Levels (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total Gains Losses Realized Unrealized Included In [Abstract]
Net derivative gains (losses)			$ (5)	$ (3)	[1]
Level 3 | Corporate
Total Gains Losses Realized Unrealized Included In [Abstract]
Beginning Balance	$ 37	$ 11	18	11
Investment gains (losses), reported in net investment income	0	0	0	0
Net derivative gains (losses)	0	0	0	0
Total realized and unrealized gains (losses)	0	0	0	0
Other comprehensive income (loss)	0	0	0	(1)
Purchases	24	11	53	12
Sales	0	(1)	0	(1)
Transfers into level 3	0	0	0	0
Transfers out of Level 3	0	(5)	(10)	(5)
Closing Balance	61	16	61	16
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period	0	0	0	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period.	0	0	0	(1)
Level 3 | Funds Withheld Receivable
Total Gains Losses Realized Unrealized Included In [Abstract]
Beginning Balance	0	0	0	0
Investment gains (losses), reported in net investment income	0	0	0	0
Net derivative gains (losses)	(136)	0	(136)	0
Total realized and unrealized gains (losses)	(136)	0	(136)	0
Other comprehensive income (loss)	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Transfers into level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Closing Balance	(136)	0	(136)	0
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period	0	0	0	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period.	0	0	0	0
Level 3 | Modco Payable
Total Gains Losses Realized Unrealized Included In [Abstract]
Beginning Balance	0	0	0	0
Investment gains (losses), reported in net investment income	0	0	0	0
Net derivative gains (losses)	166	0	166	0
Total realized and unrealized gains (losses)	166	0	166	0
Other comprehensive income (loss)	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Transfers into level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Closing Balance	166	0	166	0
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period	0	0	0	0
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period.	$ 0	$ 0	$ 0	$ 0

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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FAIR VALUE DISCLOSURES - Quantitative Information About Level 3 (Details) $ in Millions	Jun. 30, 2023 USD ($)	Apr. 01, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets for market risk benefits	$ 26		$ 12	[1]
Liability for market risk benefits	7,363	$ 8,200	15	[1]
Corporate | Level 3 | Matrix pricing model
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value	$ 32		$ 4
Corporate | Level 3 | Spread over Benchmark | Matrix pricing model | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0020		0.0245
Corporate | Level 3 | Spread over Benchmark | Matrix pricing model | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0320		0.0245
Corporate | Level 3 | Spread over Benchmark | Matrix pricing model | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0065		0.0245
GMIBNLG | Level 3 | Discounted cash flow
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value	$ 10		$ 13
Fair Value	$ 7,337		$ 3
GMIBNLG | Level 3 | Non-performance Risk | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	55		0.0157
GMIBNLG | Level 3 | Non-performance Risk | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	192
GMIBNLG | Level 3 | Non-performance Risk | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.0157
Measurement input	55
GMIBNLG | Level 3 | Lapse rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0026		0.0035
GMIBNLG | Level 3 | Lapse rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.3542		0.3542
GMIBNLG | Level 3 | Lapse rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.0435
Measurement input	0.0381
GMIBNLG | Level 3 | Withdrawal rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0000		0.0020
GMIBNLG | Level 3 | Withdrawal rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.1093		0.0124
GMIBNLG | Level 3 | Withdrawal rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0065		0.0122
GMIBNLG | Level 3 | Annuitization rate | Discounted cash flow | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			0.0004
Measurement input	0.0004
GMIBNLG | Level 3 | Annuitization rate | Discounted cash flow | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input			1.0000
Measurement input	1.0000
GMIBNLG | Level 3 | Annuitization rate | Discounted cash flow | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0313		0.0327
GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Minimum | Age 0-40
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0001		0.0001
GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Minimum | Age 41-60
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0006		0.0006
GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Minimum | Age 61-115
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0032		0.0032
GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Maximum | Age 0-40
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0017		0.0017
GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Maximum | Age 41-60
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0052		0.0052
GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Maximum | Age 61-115
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.4000		0.4000
GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | Age 0-40
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0256		0.0108
GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | Age 41-60
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0256
GMIBNLG | Level 3 | Mortality rates | Discounted cash flow | Weighted Average | Age 61-115
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.0256

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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FAIR VALUE DISCLOSURES - Carrying Values And Fair Values Of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2023	Apr. 01, 2023	Dec. 31, 2022
Consolidated Amounts [Abstract]
Policy loans	$ 260		$ 244	[1]
Funds withheld receivable	10,615		0	[1]
Modco receivable		$ 28,700
Policyholders’ liabilities: Investment contracts	21,014		3,751	[1]
Separate Accounts liabilities	4,508		3,374	[1]
Carrying Value
Consolidated Amounts [Abstract]
Mortgage loans on real estate	17		17
Policy loans	260		244
Funds withheld receivable	10,751		0
Modco receivable	30,022		0
Policyholders’ liabilities: Investment contracts	110		115
Separate Accounts liabilities	267		0
Fair Value
Consolidated Amounts [Abstract]
Mortgage loans on real estate	15		15
Policy loans	265		248
Funds withheld receivable	10,751		0
Modco receivable	30,022		0
Policyholders’ liabilities: Investment contracts	101		106
Separate Accounts liabilities	267		0
Fair Value | Level 1
Consolidated Amounts [Abstract]
Mortgage loans on real estate	0		0
Policy loans	0		0
Funds withheld receivable	0		0
Modco receivable	0		0
Policyholders’ liabilities: Investment contracts	0		0
Separate Accounts liabilities	0		0
Fair Value | Level 2
Consolidated Amounts [Abstract]
Mortgage loans on real estate	0		0
Policy loans	0		0
Funds withheld receivable	0		0
Modco receivable	0		0
Policyholders’ liabilities: Investment contracts	0		0
Separate Accounts liabilities	0		0
Fair Value | Level 3
Consolidated Amounts [Abstract]
Mortgage loans on real estate	15		15
Policy loans	265		248
Funds withheld receivable	10,751		0
Modco receivable	30,022		0
Policyholders’ liabilities: Investment contracts	101		106
Separate Accounts liabilities	$ 267		$ 0

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Policyholder Account Balance (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Apr. 01, 2023	Dec. 31, 2022
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Effect of changes in discount rate assumptions	$ 1			$ 0
Future policy benefits and other policyholders' liabilities	1,209			669	[1]
Net liability for additional liability, after reinsurance recoverable			$ 357
Payout-Legacy | Legacy | Operating Segments
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Balance, beginning of period	0
Beginning balance at original discount rate	0
Effect of changes in cash flow assumptions				0
Effect of actual variances from expected experience				0
Adjusted beginning of period balance				$ 0
Issuances	120	$ 0
Interest accrual	0	0
Benefit payments	0	0
Ending balance at original discount rate	120	0
Effect of changes in discount rate assumptions	(1)	0
Balance, end of period	119	0
Future policy benefits and other policyholders' liabilities	119	0
Less: Reinsurance recoverable	0	0
Net liability for additional liability, after reinsurance recoverable	$ 119	$ 0
Weighted-average duration of additional liability - death benefit (years)	7 years 7 months 6 days

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Policyholder Account Balance And Liability For Unpaid Claims And Claims Adjustment Expense (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Liability for Future Policy Benefit, Activity [Line Items]
Subtotal	$ 749	$ 278
Other policyholder liabilities	460	391
Net liability for additional liability	1,209	669	[1]
Payout-Legacy
Liability for Future Policy Benefit, Activity [Line Items]
Subtotal	119	58
Universal Life
Liability for Future Policy Benefit, Activity [Line Items]
Subtotal	322
Other
Liability for Future Policy Benefit, Activity [Line Items]
Subtotal	$ 308	$ 220

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Schedule of Liability for Future Policy Benefits, Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefits and Expenses (Details) - Payout-Legacy - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Liability for Future Policy Benefit, Activity [Line Items]
Expected future benefit payments and expenses (undiscounted)	$ 174	$ 0
Expected future gross premiums (undiscounted)	0	0
Expected future benefit payments and expenses (discounted; AOCI basis)	117	0
Expected future gross premiums (discounted; AOCI basis)	$ 0	$ 0

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LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Schedule of Liability for Future Policy Benefits, Revenue and Interest Accretion (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Liability for Future Policy Benefit, Activity [Line Items]
Gross Premium	$ 21	$ 0
Interest Accretion	0	0
Payout-Legacy
Liability for Future Policy Benefit, Activity [Line Items]
Gross Premium	21	0
Interest Accretion	$ 0	$ 0

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LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Schedule of Liability for Future Policy Benefits, Weighted Average Interest Rates (Details)	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Liability for Future Policy Benefit, Activity [Line Items]
Interest accretion rate	4.50%		5.50%
Payout-Legacy
Liability for Future Policy Benefit, Activity [Line Items]
Interest accretion rate	5.50%	0.00%
Current discount rate	5.60%	0.00%

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LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Balances of and Changes in Additional Liabilities Related to Insurance Guarantees (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Apr. 01, 2023	Dec. 31, 2022		Dec. 31, 2021
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Net liability for additional liability	$ 1,209	$ 1,209			$ 669	[1]
Net liability for additional liability, after reinsurance recoverable				$ 357
Weighted Average Interest Rate	4.50%	4.50%	5.50%
Assessments
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Revenue and Interest Accretion	$ 258		$ 9
Interest Accretion
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Revenue and Interest Accretion		$ 4	$ 1
Universal Life
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Weighted Average Interest Rate	4.50%	4.50%	5.50%
Universal Life | Assessments
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Revenue and Interest Accretion			$ 9
Universal Life | Interest Accretion
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Revenue and Interest Accretion			1
Universal Life | Life Insurance & Employee Benefits Products
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Balance, beginning of period		$ 0	57
Beginning balance before AOCI adjustments		0	55
Effect of changes in interest rate and cash flow assumptions and model changes					0		$ 0
Effect of actual variances from expected experience					0		(1)
Adjusted beginning of period balance					$ 0		$ 54
Issuances		322	0
Interest accrual		0	1
Net assessments collected		0	5
Benefit payments		0	0
Ending balance before shadow reserve adjustments	$ 322	322	60
Effect of shadow reserve adjustment	0	0	(7)
Balance, end of period	322	322	53
Net liability for additional liability	322	322	53
Effect of reserve adjustment recorded in AOCI	0	0	0
Net liability for additional liability, after reinsurance recoverable	$ 322	$ 322	$ 53
Weighted-average duration of additional liability - death benefit (years)	18 years 7 months 6 days	18 years 7 months 6 days	33 years 6 months
UL | Assessments
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Revenue and Interest Accretion	$ 258
UL | Interest Accretion
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Revenue and Interest Accretion		$ 4

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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MARKET RISK BENEFITS - Changes in the Market Risk Benefits for Deferred Variable Annuities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Market Risk Benefit [Roll Forward]
Benefit payments			$ 181	$ 0
Changes in the instrument-specific credit risk	$ 16		16		$ 1
Net amount at risk	7,327		7,327		10
GMxB Core
Market Risk Benefit [Roll Forward]
Net amount at risk	1,047		1,047		9
GMxB Core | Individual Variable Annuity Products
Market Risk Benefit [Roll Forward]
Balance, beginning of period	(14)	$ (7)	(9)	0
Balance BOP before changes in the instrument specific credit risk	(8)	(2)	(8)	1
Model changes and effect of changes in cash flow assumptions	0	0	0	0
Actual market movement effect	(108)	10	(113)	14
Interest accrual	9	0	9	0
Attributed fees accrued	101	1	102	1
Benefit payments	(12)	0	(12)	0
Actual policyholder behavior different from expected behavior	6	1	8	2
Changes in future economic assumptions	(224)	(12)	(222)	(19)
Issuances	1,292	0	1,292	(1)
Balance EOP before changes in the instrument-specific credit risk	1,056	(2)	1,056	(2)
Changes in the instrument-specific credit risk	(9)	(8)	(9)	(8)
Balance, end of period	$ 1,047	$ (10)	$ 1,047	$ (10)
Weighted-average age of policyholders (years)	64 years 3 months 18 days	59 years 8 months 12 days	64 years 3 months 18 days	59 years 8 months 12 days
Net amount at risk	$ 3,079	$ 11	$ 3,079	$ 11
GMxB Legacy
Market Risk Benefit [Roll Forward]
Net amount at risk	6,237		6,237		$ 0
GMxB Legacy | Individual Variable Annuity Products
Market Risk Benefit [Roll Forward]
Balance, beginning of period	0	0	0	0
Balance BOP before changes in the instrument specific credit risk	0	0	0	0
Model changes and effect of changes in cash flow assumptions	0	0	0	0
Actual market movement effect	(264)	0	(264)	0
Interest accrual	68	0	68	0
Attributed fees accrued	95	0	95	0
Benefit payments	(153)	0	(153)	0
Actual policyholder behavior different from expected behavior	(4)	0	(4)	0
Changes in future economic assumptions	(364)	0	(364)	0
Issuances	6,865	0	6,865	0
Balance EOP before changes in the instrument-specific credit risk	6,243	0	6,243	0
Changes in the instrument-specific credit risk	(6)	0	(6)	0
Balance, end of period	$ 6,237	0	$ 6,237	0
Weighted-average age of policyholders (years)	73 years 6 months		73 years 6 months
Net amount at risk	$ 10,464	$ 0	$ 10,464	$ 0

XML

MARKET RISK BENEFITS - Reconciles Market Risk Benefits (Details) - USD ($) $ in Millions	Jun. 30, 2023	Apr. 01, 2023	Dec. 31, 2022		Jun. 30, 2022
Market Risk Benefit [Line Items]
MRB Asset	$ (26)		$ (12)	[1]
MRB Liability	7,363	$ 8,200	15	[1]
Net MRB	7,337		3
Purchased MRB	(10)		(13)
Net amount at risk	7,327		10
GMxB Core
Market Risk Benefit [Line Items]
Net amount at risk	1,047		9
GMxB Core | Individual Variable Annuity Products
Market Risk Benefit [Line Items]
MRB Asset	(25)		(12)
MRB Liability	1,072		3
Net MRB	1,047		(9)
Purchased MRB	0		0
Net amount at risk	3,079				$ 11
GMxB Legacy
Market Risk Benefit [Line Items]
Net amount at risk	6,237		0
GMxB Legacy | Individual Variable Annuity Products
Market Risk Benefit [Line Items]
MRB Asset	0		0
MRB Liability	6,237		0
Net MRB	6,237		0
Purchased MRB	0		0
Net amount at risk	10,464				$ 0
Other
Market Risk Benefit [Line Items]
Net amount at risk	43		1
Other | Individual Variable Annuity Products
Market Risk Benefit [Line Items]
MRB Asset	(1)		0
MRB Liability	54		12
Net MRB	53		12
Purchased MRB	$ (10)		$ (13)

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

XML

POLICYHOLDER ACCOUNT BALANCES - Balances and Changes in Policyholders’ Account Balances (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022		Dec. 31, 2022	[3]
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				$ 3,751
Interest credited	$ 185	$ 23	[1]	208	$ 42	[2]
Balance, end of the period	21,014			21,014
Amounts due to reinsurers	106			106			$ 112
UL
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				1,962
Balance, end of the period	1,202			1,202
UL | Life Insurance & Employee Benefits Products
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				0
Issuances				1,208
Premiums received				122
Policy charges				(128)
Surrenders and withdrawals				(4)
Benefit payments				(5)
Net transfers from (to) separate account				0
Interest credited				9
Balance, end of the period	$ 1,202			$ 1,202
Weighted-average crediting rate (years)	3.32%			3.32%
Net amount at risk	$ 16,580			$ 16,580
Cash surrender value	1,044			1,044
IUL
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				1,962	1,973
Issuances				349	0
Premiums received				119	127
Policy charges				(93)	(89)
Surrenders and withdrawals				(25)	(12)
Benefit payments				(5)	(4)
Net transfers from (to) separate account				0	0
Interest credited				73	(54)
Policyholder Account Balance, Other					0
Balance, end of the period	$ 2,380	$ 1,941		$ 2,380	$ 1,941
Weighted-average crediting rate (years)	2.34%	2.18%		2.34%	2.18%
Net amount at risk	$ 19,438	$ 18,260		$ 19,438	$ 18,260
Cash surrender value	1,790	1,477		1,790	1,477
GMxB Core
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				27
Net transfers from (to) separate account				65	27
GMxB Core | Individual Variable Annuity Products
Policyholder Account Balance [Roll Forward]
Balance, beginning of period					13
Issuances					0
Premiums received					30
Policy charges					(1)
Surrenders and withdrawals					0
Benefit payments					0
Net transfers from (to) separate account					(27)
Interest credited					0
Policyholder Account Balance, Other					0
Balance, end of the period		$ 15			$ 15
Weighted-average crediting rate (years)		1.00%			1.00%
Net amount at risk		$ 11			$ 11
Cash surrender value		16			16
Investment Edge
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				7
Net transfers from (to) separate account				(163)
EQUI-VEST Individual
Policyholder Account Balance [Roll Forward]
Balance, end of the period	2,137			2,137
EQUI-VEST Individual | Individual Variable Annuity Products
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				0
Issuances				2,213
Premiums received				3
Policy charges				0
Surrenders and withdrawals				(74)
Benefit payments				(9)
Net transfers from (to) separate account				(12)
Interest credited				16
Balance, end of the period	$ 2,137			$ 2,137
Weighted-average crediting rate (years)	2.92%			2.92%
Net amount at risk	$ 107			$ 107
Cash surrender value	2,130			2,130
EG
Policyholder Account Balance [Roll Forward]
Balance, end of the period	6,786			6,786
EG | Employer - Sponsored Products
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				0
Issuances				6,817
Premiums received				93
Policy charges				(1)
Surrenders and withdrawals				(230)
Benefit payments				(7)
Net transfers from (to) separate account				45
Interest credited				69
Balance, end of the period	$ 6,786			$ 6,786
Weighted-average crediting rate (years)	2.31%			2.31%
Net amount at risk	$ 17			$ 17
Cash surrender value	6,713			6,713
SCS
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				242
Balance, end of the period	35,803			35,803
SCS | Employer - Sponsored Products
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				242
Issuances				31,189
Premiums received				0
Policy charges				(2)
Surrenders and withdrawals				(606)
Benefit payments				(55)
Net transfers from (to) separate account				2,823
Interest credited				2,212
Balance, end of the period	35,803			35,803
Net amount at risk	11			11
Cash surrender value	32,495			32,495
VUL
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				655
Net transfers from (to) separate account				(25)	(26)
VUL | Life Insurance & Employee Benefits Products
Policyholder Account Balance [Roll Forward]
Balance, beginning of period					614
Issuances					0
Premiums received					9
Policy charges					(14)
Surrenders and withdrawals					0
Benefit payments					(4)
Net transfers from (to) separate account					26
Interest credited					7
Policyholder Account Balance, Other					0
Balance, end of the period		$ 638			$ 638
Weighted-average crediting rate (years)		3.52%			3.52%
Net amount at risk		$ 28,861			$ 28,861
Cash surrender value		518			518
Reinsured
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				819
Net transfers from (to) separate account				(1)	(2)
Reinsured | Employer - Sponsored Products
Policyholder Account Balance [Roll Forward]
Balance, beginning of period					866
Issuances					0
Premiums received					18
Policy charges					(12)
Surrenders and withdrawals					(39)
Benefit payments					(6)
Net transfers from (to) separate account					2
Interest credited					18
Policyholder Account Balance, Other					0
Balance, end of the period		$ 847			$ 847
Weighted-average crediting rate (years)		4.27%			4.27%
Net amount at risk		$ 4,272			$ 4,272
Cash surrender value		$ 846			$ 846
Others
Policyholder Account Balance [Roll Forward]
Balance, beginning of period				39
Balance, end of the period	(27,294)			(27,294)
Modco Reinsurance
Policyholder Account Balance [Roll Forward]
Balance, end of the period	$ (30,000)			$ (30,000)

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[3] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

XML

POLICYHOLDER ACCOUNT BALANCES - Guaranteed Minimum Interest Rates (Details) $ in Millions	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
1 Basis Point - 50 Basis Points Above | Minimum
Policyholder Account Balance [Line Items]
Policyholder account balance, above guaranteed minimum crediting rate	0.0001	0.0001
1 Basis Point - 50 Basis Points Above | Maximum
Policyholder Account Balance [Line Items]
Policyholder account balance, above guaranteed minimum crediting rate	0.0050	0.0050
51 Basis Points-150 Basis Points Above | Minimum
Policyholder Account Balance [Line Items]
Policyholder account balance, above guaranteed minimum crediting rate	0.0051	0.0051
51 Basis Points-150 Basis Points Above | Maximum
Policyholder Account Balance [Line Items]
Policyholder account balance, above guaranteed minimum crediting rate	0.0150	0.0150
Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account balance, above guaranteed minimum crediting rate	0.0150	0.0150
UL
Policyholder Account Balance [Line Items]
Policyholder account value	$ 1,201
UL | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	76
UL | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	519
UL | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	476
UL | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	130
UL | 0.00%-1.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 0
UL | 0.00%-1.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	0.00%
UL | 0.00%-1.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	1.50%
UL | 0.00%-1.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 0
UL | 0.00%-1.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
UL | 0.00%-1.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
UL | 0.00%-1.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
UL | 1.51%-2.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 695
UL | 1.51%-2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	1.51%
UL | 1.51%-2.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	2.50%
UL | 1.51%-2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 76
UL | 1.51%-2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	13
UL | 1.51%-2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	476
UL | 1.51%-2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	130
UL | Greater than 2.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 506
UL | Greater than 2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	2.50%
UL | Greater than 2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 0
UL | Greater than 2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	506
UL | Greater than 2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
UL | Greater than 2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
IUL
Policyholder Account Balance [Line Items]
Policyholder account value	2,280	$ 1,941
IUL | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	1,125	1,202
IUL | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	596	666
IUL | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	559	73
IUL | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0	0
IUL | 0.00%-1.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 0	$ 0
IUL | 0.00%-1.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	0.00%	0.00%
IUL | 0.00%-1.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	1.50%	1.50%
IUL | 0.00%-1.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 0	$ 0
IUL | 0.00%-1.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0	0
IUL | 0.00%-1.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0	0
IUL | 0.00%-1.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0	0
IUL | 1.51%-2.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 2,280	$ 1,941
IUL | 1.51%-2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	1.51%	1.51%
IUL | 1.51%-2.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	2.50%	2.50%
IUL | 1.51%-2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 1,125	$ 1,202
IUL | 1.51%-2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	596	666
IUL | 1.51%-2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	559	73
IUL | 1.51%-2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0	0
IUL | Greater than 2.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 0	$ 0
IUL | Greater than 2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	2.50%	2.50%
IUL | Greater than 2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 0	$ 0
IUL | Greater than 2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0	0
IUL | Greater than 2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0	0
IUL | Greater than 2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0	0
EQUI-VEST Individual
Policyholder Account Balance [Line Items]
Policyholder account value	2,136
EQUI-VEST Individual | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	1,918
EQUI-VEST Individual | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	218
EQUI-VEST Individual | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EQUI-VEST Individual | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EQUI-VEST Individual | 0.00%-1.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 269
EQUI-VEST Individual | 0.00%-1.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	0.00%
EQUI-VEST Individual | 0.00%-1.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	1.50%
EQUI-VEST Individual | 0.00%-1.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 51
EQUI-VEST Individual | 0.00%-1.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	218
EQUI-VEST Individual | 0.00%-1.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EQUI-VEST Individual | 0.00%-1.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EQUI-VEST Individual | 1.51%-2.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 44
EQUI-VEST Individual | 1.51%-2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	1.51%
EQUI-VEST Individual | 1.51%-2.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	2.50%
EQUI-VEST Individual | 1.51%-2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 44
EQUI-VEST Individual | 1.51%-2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EQUI-VEST Individual | 1.51%-2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EQUI-VEST Individual | 1.51%-2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EQUI-VEST Individual | Greater than 2.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 1,823
EQUI-VEST Individual | Greater than 2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	2.50%
EQUI-VEST Individual | Greater than 2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 1,823
EQUI-VEST Individual | Greater than 2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EQUI-VEST Individual | Greater than 2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EQUI-VEST Individual | Greater than 2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EG
Policyholder Account Balance [Line Items]
Policyholder account value	5,920
EG | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	3,599
EG | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	1,982
EG | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	24
EG | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	315
EG | 0.00%-1.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 2,817
EG | 0.00%-1.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	0.00%
EG | 0.00%-1.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	1.50%
EG | 0.00%-1.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 497
EG | 0.00%-1.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	1,982
EG | 0.00%-1.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	23
EG | 0.00%-1.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	315
EG | 1.51%-2.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 258
EG | 1.51%-2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	1.51%
EG | 1.51%-2.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	2.50%
EG | 1.51%-2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 258
EG | 1.51%-2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EG | 1.51%-2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EG | 1.51%-2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EG | Greater than 2.50%
Policyholder Account Balance [Line Items]
Policyholder account value	$ 2,845
EG | Greater than 2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating	2.50%
EG | Greater than 2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value	$ 2,844
EG | Greater than 2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	0
EG | Greater than 2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	1
EG | Greater than 2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value	$ 0
VUL
Policyholder Account Balance [Line Items]
Policyholder account value		597
VUL | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		551
VUL | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		42
VUL | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		4
VUL | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
VUL | 0.00%-1.50%
Policyholder Account Balance [Line Items]
Policyholder account value		$ 50
VUL | 0.00%-1.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		0.00%
VUL | 0.00%-1.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		1.50%
VUL | 0.00%-1.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		$ 18
VUL | 0.00%-1.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		30
VUL | 0.00%-1.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		2
VUL | 0.00%-1.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
VUL | 1.51%-2.50%
Policyholder Account Balance [Line Items]
Policyholder account value		$ 85
VUL | 1.51%-2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		1.51%
VUL | 1.51%-2.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		2.50%
VUL | 1.51%-2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		$ 73
VUL | 1.51%-2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		12
VUL | 1.51%-2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
VUL | 1.51%-2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
VUL | Greater than 2.50%
Policyholder Account Balance [Line Items]
Policyholder account value		$ 462
VUL | Greater than 2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		2.50%
VUL | Greater than 2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		$ 460
VUL | Greater than 2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
VUL | Greater than 2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		2
VUL | Greater than 2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge
Policyholder Account Balance [Line Items]
Policyholder account value		7
Investment Edge | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		7
Investment Edge | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | 0.00%-1.50%
Policyholder Account Balance [Line Items]
Policyholder account value		$ 7
Investment Edge | 0.00%-1.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		0.00%
Investment Edge | 0.00%-1.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		1.50%
Investment Edge | 0.00%-1.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		$ 7
Investment Edge | 0.00%-1.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | 0.00%-1.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | 0.00%-1.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | 1.51%-2.50%
Policyholder Account Balance [Line Items]
Policyholder account value		$ 0
Investment Edge | 1.51%-2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		1.51%
Investment Edge | 1.51%-2.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		2.50%
Investment Edge | 1.51%-2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		$ 0
Investment Edge | 1.51%-2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | 1.51%-2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | 1.51%-2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | Greater than 2.50%
Policyholder Account Balance [Line Items]
Policyholder account value		$ 0
Investment Edge | Greater than 2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		2.50%
Investment Edge | Greater than 2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		$ 0
Investment Edge | Greater than 2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | Greater than 2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
Investment Edge | Greater than 2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core
Policyholder Account Balance [Line Items]
Policyholder account value		32
GMxB Core | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		32
GMxB Core | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | 0.00%-1.50%
Policyholder Account Balance [Line Items]
Policyholder account value		$ 32
GMxB Core | 0.00%-1.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		0.00%
GMxB Core | 0.00%-1.50% | Maximum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		1.50%
GMxB Core | 0.00%-1.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		$ 32
GMxB Core | 0.00%-1.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | 0.00%-1.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | 0.00%-1.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | 1.51%-2.50%
Policyholder Account Balance [Line Items]
Policyholder account value		$ 0
GMxB Core | 1.51%-2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		1.51%
GMxB Core | 1.51%-2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		$ 0
GMxB Core | 1.51%-2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | 1.51%-2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | 1.51%-2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | Greater than 2.50%
Policyholder Account Balance [Line Items]
Policyholder account value		$ 0
GMxB Core | Greater than 2.50% | Minimum
Policyholder Account Balance [Line Items]
Guaranteed minimum credit rating		2.50%
GMxB Core | Greater than 2.50% | At Guaranteed Minimum
Policyholder Account Balance [Line Items]
Policyholder account value		$ 0
GMxB Core | Greater than 2.50% | 1 Basis Point - 50 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | Greater than 2.50% | 51 Basis Points-150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		0
GMxB Core | Greater than 2.50% | Greater Than 150 Basis Points Above
Policyholder Account Balance [Line Items]
Policyholder account value		$ 0

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POLICYHOLDER ACCOUNT BALANCES Separate Accounts Liability (Details) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022
Liability for Future Policy Benefit, Activity [Line Items]
Balance, beginning of period	[1]	$ 3,374
Balance, end of period		4,508
VUL
Liability for Future Policy Benefit, Activity [Line Items]
Balance, beginning of period		1,653	$ 1,832
Premiums and deposits		190	177
Policy charges		(64)	(60)
Surrenders and withdrawals		(23)	(16)
Benefit payments		(5)	(3)
Investment performance		192	(361)
Net transfers from (to) separate account		25	26
Other charges		0	0
Balance, end of period		1,918	1,543
Cash surrender value		1,590	1,241
GMxB Core
Liability for Future Policy Benefit, Activity [Line Items]
Balance, beginning of period		756	315
Premiums and deposits		439	166
Policy charges		(4)	(1)
Surrenders and withdrawals		(11)	(3)
Benefit payments		(3)	0
Investment performance		79	(74)
Net transfers from (to) separate account		(65)	(27)
Other charges		0	0
Balance, end of period		1,321	430
Cash surrender value		1,221	392
Investment Edge
Liability for Future Policy Benefit, Activity [Line Items]
Balance, beginning of period		26
Premiums and deposits		270
Policy charges		0
Surrenders and withdrawals		(2)
Benefit payments		0
Investment performance		4
Net transfers from (to) separate account		163
Other charges		0
Balance, end of period		135
Cash surrender value		129
Reinsured
Liability for Future Policy Benefit, Activity [Line Items]
Balance, beginning of period		913	1,244
Premiums and deposits		11	10
Policy charges		(17)	(14)
Surrenders and withdrawals		(37)	(24)
Benefit payments		(11)	(5)
Investment performance		141	(141)
Net transfers from (to) separate account		1	2
Other charges		0	0
Balance, end of period		999	$ 1,068
Others
Liability for Future Policy Benefit, Activity [Line Items]
Balance, beginning of period		26
Balance, end of period		$ 135

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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POLICYHOLDER ACCOUNT BALANCES - Aggregate Fair Value of Separate Account Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Policyholder Account Balance [Line Items]
Separate Accounts assets	$ 4,508	$ 3,374	[1]
Life Insurance & Employee Benefits Products
Policyholder Account Balance [Line Items]
Separate Accounts assets	2,414	2,096
Individual Variable Annuity Products
Policyholder Account Balance [Line Items]
Separate Accounts assets	2,081	1,265
Employer - Sponsored Products
Policyholder Account Balance [Line Items]
Separate Accounts assets	0	0
Other
Policyholder Account Balance [Line Items]
Separate Accounts assets	13	13
Legacy Segment
Policyholder Account Balance [Line Items]
Separate Accounts assets	0	0
Mutual Funds
Policyholder Account Balance [Line Items]
Separate Accounts assets	4,508	3,374
Mutual Funds | Life Insurance & Employee Benefits Products
Policyholder Account Balance [Line Items]
Separate Accounts assets	2,414	2,096
Mutual Funds | Individual Variable Annuity Products
Policyholder Account Balance [Line Items]
Separate Accounts assets	2,081	1,265
Mutual Funds | Employer - Sponsored Products
Policyholder Account Balance [Line Items]
Separate Accounts assets	0	0
Mutual Funds | Other
Policyholder Account Balance [Line Items]
Separate Accounts assets	13	13
Mutual Funds | Legacy Segment
Policyholder Account Balance [Line Items]
Separate Accounts assets	$ 0	$ 0

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Valuation allowance			$ 85
Decrease in valuation allowances	$ 16
Valuation allowance partial release		$ 69

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EQUITY - Components of AOCI (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Unrealized gains (losses) on investments	$ (362)	$ (383)
Market risk benefits - instrument-specific credit risk component	16	1
Liability or future policy benefits - current discount rate component	1	0
Accumulated other comprehensive income (loss)	$ (345)	$ (382)	[1]

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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EQUITY - Components of OCI, Net of Taxes (Details) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Equity [Abstract]
Net unrealized gains (losses) arising during the period		$ (51)	$ (159)		$ 21	$ (335)
(Gains) losses reclassified into net income (loss) during the period		0	2		4	3
Net unrealized gains (losses) on investments		(51)	(157)		25	(332)
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other		0	4		(1)	8
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(28), $(41), $(12) and $(86)).	[1]	(51)	(153)	[2]	24	(324)	[2]
Market risk benefits - change in instrument-specific credit risk (net of deferred income tax expense (benefit) of $2, $1, $3 and $2).		7	3		12	8
Liability for future policy benefits - change in current discount rate (net of deferred income tax expense (benefit) of $—, $—, $—, and $—)		1	0		1	0
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total		(43)	(150)		37	(316)
Deferred income taxes		(28)	(41)		(12)	(86)
Market risk benefits - change in instrument-specific credit risk deferred income tax expense (benefit)		2	1		3	2
Liability for future policy benefits - change in current discount rate deferred income tax expense (benefit)		0	0		0	0
Reclassification adjustment		$ (2)	$ (1)		$ (1)	$ (1)

[1] See Note 12 of the Notes to these Financial Statements for details of change in unrealized gains (losses), net of adjustments.

[2] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	May 31, 2023
Restructuring Cost and Reserve [Line Items]
Unaccrued amounts of reasonably possible range of losses	$ 5
Long-term line of credit	$ 0
Commercial Paper | Funding Agreement-Backed Commercial Paper Program
Restructuring Cost and Reserve [Line Items]
Line of credit facility, maximum borrowing capacity		$ 1,000

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UNPAID CLAIM AND CLAIM EXPENSES - Rollforward of the Unpaid Claims and Claim Expenses (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Liability for Unpaid Claims and Claims Adjustment Expense, [Roll Forward]
Gross balance	$ 110	$ 78
Less Reinsurance	36	23
Net balance	74	55
Incurred Claims (net) Related to:
Current Period	121	88
Prior Period	(14)	9
Total Incurred	107	97
Paid Claims (net) Related to:
Current Period	65	49
Prior Period	33	27
Total Paid	98	76
Net balance	83	76
Add Reinsurance	40	29
Gross balance	$ 123	$ 105

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REINSURANCE - Effect of Reinsurance (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Reinsurance Disclosures [Abstract]
Direct charges and fee income	$ 92	$ 78		$ 178	$ 151
Reinsurance assumed - Equitable Financial	345	0		345	0
Reinsurance ceded	(26)	(22)		(51)	(39)
Policy charges and fee income	411	56		472	112
Direct premiums	86	74		171	133
Reinsurance assumed - Equitable Financial	40	0		40	0
Reinsurance ceded	(14)	(14)		(30)	(24)
Premiums	112	60	[1]	181	109	[1]
Direct policyholders’ benefits	110	106		209	191
Reinsurance assumed - Equitable Financial	264	0		264	0
Reinsurance ceded	(39)	(24)		(59)	(35)
Policyholders’ benefits	335	82	[1]	414	156	[1]
Direct interest credited to policyholders’ account balances	42	32		74	77
Reinsurance assumed - Equitable Financial	151	0		151	0
Reinsurance ceded	(8)	(9)		(17)	(35)
Interest credited to policyholders’ account balances	$ 185	$ 23	[1]	$ 208	$ 42	[2]

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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REINSURANCE - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Variable Universal Term Life Insurance Single Life
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance retention policy, amount retained	$ 4
Variable Universal Term Life Insurance Single Life | Equitable Financial Life Insurance Company
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Policyholder contract deposits ceded	20
Variable Universal Term Life Insurance Joint Life
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Reinsurance retention policy, amount retained	6
Variable Universal Term Life Insurance Joint Life | Equitable Financial Life Insurance Company
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Policyholder contract deposits ceded	$ 25

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REINSURANCE - Composition of Pool of Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Effects of Reinsurance [Line Items]
Other equity investments	$ 38	$ 19	[1]
Total assets supporting funds withheld	10,615	0	[1]
Carrying Value
Effects of Reinsurance [Line Items]
Total assets supporting funds withheld	10,751	0
Carrying Value | Equitable Financial Life Insurance Company
Effects of Reinsurance [Line Items]
Fixed maturities	25,889
Mortgage loans on real estate	8,528
Policy loans	229
Other equity investments	245
Other invested assets	7,249
Total assets supporting funds withheld	42,140
Fair Value
Effects of Reinsurance [Line Items]
Total assets supporting funds withheld	10,751	$ 0
Fair Value | Equitable Financial Life Insurance Company
Effects of Reinsurance [Line Items]
Fixed maturities	25,889
Mortgage loans on real estate	7,391
Policy loans	230
Other equity investments	245
Other invested assets	7,249
Total assets supporting funds withheld	$ 41,004

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Dec. 31, 2019	Jun. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Deferred cost amortization	$ 14
Reinsured risk, percent		100.00%
Total investments		$ 25
Impact of net unrealized investment gains (losses)		$ 2

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REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Income Statement (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
BENEFITS AND OTHER DEDUCTIONS
Other operating costs and expenses	$ 222	$ 21	[1]	$ 245	$ 44	[1]
Total benefits and other deductions	2	172	[1]	182	319	[1]
Income (loss) from continuing operations, before income taxes	20	(33)	[1]	11	(59)	[1]
Income tax (expense) benefit from continuing operations	(6)	8	[1]	66	14	[1]
Net income (loss) from continuing operations		(25)			(45)
Net income (loss)	$ 14	(25)	[2]	$ 77	(45)	[3]
As Previously Reported
BENEFITS AND OTHER DEDUCTIONS
Other operating costs and expenses		22			43
Total benefits and other deductions		177			338
Income (loss) from continuing operations, before income taxes		(12)			(34)
Income tax (expense) benefit from continuing operations		(1)			2
Net income (loss) from continuing operations		(13)			(32)
Net income (loss)		(13)			(32)
ASU 2018-12 Impact
BENEFITS AND OTHER DEDUCTIONS
Other operating costs and expenses		(2)			(1)
Total benefits and other deductions		(6)			(21)
Income (loss) from continuing operations, before income taxes		(20)			(23)
Income tax (expense) benefit from continuing operations		10			13
Net income (loss) from continuing operations		(10)			(10)
Net income (loss)		(10)			(10)
As Adjusted
BENEFITS AND OTHER DEDUCTIONS
Other operating costs and expenses		20			42
Total benefits and other deductions		171			317
Income (loss) from continuing operations, before income taxes		(32)			(57)
Income tax (expense) benefit from continuing operations		9			15
Net income (loss) from continuing operations		(23)			(42)
Net income (loss)		(23)			(42)
Impact of Revisions
BENEFITS AND OTHER DEDUCTIONS
Other operating costs and expenses		1			2
Total benefits and other deductions		1			2
Income (loss) from continuing operations, before income taxes		(1)			(2)
Income tax (expense) benefit from continuing operations		(1)			(1)
Net income (loss) from continuing operations		(2)			(3)
Net income (loss)		$ (2)			$ (3)

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[3] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Statements of Comprehensive Income (Loss):
Net income (loss)	$ (25)	$ (45)
Comprehensive income (loss)	(175)	(361)
As Previously Reported
Statements of Comprehensive Income (Loss):
Net income (loss)	(13)	(32)
Comprehensive income (loss)	(150)	(319)
ASU 2018-12 Impact
Statements of Comprehensive Income (Loss):
Net income (loss)	(10)	(10)
Comprehensive income (loss)	(23)	(40)
As Adjusted
Statements of Comprehensive Income (Loss):
Net income (loss)	(23)	(42)
Comprehensive income (loss)	(173)	(359)
Impact of Revisions
Statements of Comprehensive Income (Loss):
Net income (loss)	(2)	(3)
Comprehensive income (loss)	$ (2)	$ (3)

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REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Equity (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022		Jun. 30, 2023	Jun. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 375	$ 462	[1]	$ 232	$ 647	[1]
Net income (loss)	14	(25)	[2]	77	(45)	[3]
Other comprehensive income (loss)	(43)	(150)	[1]	37	(316)	[1]
Ending balance	1,397	288	[1]	1,397	288	[1]
As Previously Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(13)			(32)
ASU 2018-12 Impact
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(10)			(10)
As Adjusted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(23)			(42)
Impact of Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(2)			(3)
Total
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Ending balance		288			288
Total | As Previously Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Ending balance		391			391
Total | ASU 2018-12 Impact
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Ending balance		(92)			(92)
Total | As Adjusted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Ending balance		299			299
Total | Impact of Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Ending balance		(11)			(11)
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	831	681	[1]	831	680	[1]
Ending balance	1,882	682	[1]	1,882	682	[1]
Additional Paid-in Capital | As Previously Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		680			679
Ending balance		681			681
Additional Paid-in Capital | ASU 2018-12 Impact
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		0			0
Ending balance		0			0
Additional Paid-in Capital | As Adjusted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		680			679
Ending balance		681			681
Additional Paid-in Capital | Impact of Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		1			1
Ending balance		1			1
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(157)	(154)	[1]	(220)	(134)	[1]
Net income (loss)	14	(25)	[1]	77	(45)	[1]
Ending balance	(143)	(179)	[1]	(143)	(179)	[1]
Accumulated Deficit | As Previously Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		(79)			(60)
Net income (loss)		(13)			(32)
Ending balance		(92)			(92)
Accumulated Deficit | ASU 2018-12 Impact
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		(64)			(64)
Net income (loss)		(10)			(10)
Ending balance		(74)			(74)
Accumulated Deficit | As Adjusted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		(142)			(124)
Net income (loss)		(23)			(42)
Ending balance		(166)			(166)
Accumulated Deficit | Impact of Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance		(12)			(10)
Net income (loss)		(2)			(3)
Ending balance		(13)			(13)
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(302)	(68)	[1]	(382)	98	[1]
Other comprehensive income (loss)	(43)	(150)	[1]	37	(316)	[1]
Ending balance	$ (345)	$ (218)	[1]	$ (345)	(218)	[1]
Accumulated Other Comprehensive Income (Loss) | As Previously Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance					86
Other comprehensive income (loss)					(287)
Accumulated Other Comprehensive Income (Loss) | ASU 2018-12 Impact
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance					12
Other comprehensive income (loss)					(30)
Accumulated Other Comprehensive Income (Loss) | As Adjusted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance					98
Other comprehensive income (loss)					(317)
Accumulated Other Comprehensive Income (Loss) | Impact of Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance					0
Other comprehensive income (loss)					$ 1

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[3] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

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REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
		Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income (loss)		$ (25)		$ (45)
Changes in:
Future policy benefits			$ 133	17	[1]
Reinsurance recoverable			817	(12)	[1]
Current and deferred income taxes	[2]		$ (66)	(14)	[1]
Other, net				106
As Previously Reported
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income (loss)		(13)		(32)
Changes in:
Future policy benefits				4
Reinsurance recoverable				1
Current and deferred income taxes				(2)
Other, net				104
ASU 2018-12 Impact
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income (loss)		(10)		(10)
Changes in:
Future policy benefits				0
Reinsurance recoverable				0
Current and deferred income taxes				(13)
Other, net				0
As Adjusted
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income (loss)		(23)		(42)
Changes in:
Future policy benefits				4
Reinsurance recoverable				1
Current and deferred income taxes				(15)
Other, net				104
Impact of Revisions
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income (loss)		$ (2)		(3)
Changes in:
Future policy benefits				13
Reinsurance recoverable				(13)
Current and deferred income taxes				1
Other, net				$ 2

[1] Prior period amounts have been adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.

[2] The six months ended June 30, 2023 includes a release of $69 million deferred tax valuation allowance. See Note 10 of the Notes to these Financial Statements.