REINSURANCE

12 Months Ended

Dec. 31, 2023

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:


	Year Ended December 31,
	2023	2022		2021
		(in millions)
Direct charges and fee income		$	383	$	266	$	261
Reinsurance assumed - Equitable Financial		1,015		—		—
Reinsurance ceded		(111)		(37)		(57)
Policy charges and fee income		$	1,287	$	229	$	204

Direct premiums		$	353	$	272	$	201
Reinsurance assumed - Equitable Financial		174		—		—
Reinsurance ceded		(59)		(49)		(44)
Premiums		$	468	$	223	$	157

Direct policyholders’ benefits		$	460	$	419	$	415
Reinsurance assumed - Equitable Financial		528		—		—
Reinsurance ceded		(108)		(119)		(160)
Policyholders’ benefits		$	880	$	300	$	255

Direct interest credited to policyholders’ account balances		$	250	$	106	$	139
Reinsurance assumed - Equitable Financial		471		—		—
Reinsurance ceded		(33)		(16)		(57)
Interest credited to policyholders’ account balances		$	688	$	90	$	82

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 had 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, the Company 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 of the Notes to these Consolidated 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:



	December 31, 2023
	Carrying Value		Fair Value
	(in millions)
Fixed maturities	$	24,725	$	24,725
Mortgage loans on real estate	8,405		7,409
Policy loans	248		250
Other equity investments	238		238
Other invested assets (1)	8,256		8,257
Total assets supporting funds withheld	$	41,872	$	40,879

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