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POLICY LIABILITIES (Tables) | 12 Months Ended
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Dec. 31, 2022
Insurance [Abstract] |
Policy Liabilities by Product | Policy liabilities by product were as follows as of December 31, 2022 and 2021:
| December 31, 2022 |  | December 31, 2021
Fixed-rate annuity(1) | $ | 68,718,308 |  |  | $ | 61,827,855 |
Fixed-indexed annuity | 31,738,016 |  |  | 27,935,000 |
Indexed universal life | 13,623,263 |  |  | 12,133,840 |
Other life insurance | 10,373,376 |  |  | 11,840,323 |
Funding agreements | 7,535,489 |  |  | 6,014,553 |
Preneed | 2,858,628 |  |  | 2,897,018 |
Variable annuity | 5,311,294 |  |  | 2,469,759 |
Closed blocks | 1,017,632 |  |  | 1,351,601 |
Other | 47,281 |  |  | 50,095 |
Total | $ | 141,223,287 |  |  | $ | 126,520,044 |
(1)Policy liabilities as of December 31, 2022 and 2021 include $7.0 billion and $7.6 billion assumed disability income insurance of which 98% and 97% are comprised of policies in claim payout status, generally for the lifetime of the insured, and the remaining 2% and 3% comprised of an active life reserve where the Global Atlantic has retroceded the morbidity risk, respectively.
GMDB and GMWB Reserve Activity | The following table shows the balance of the GMDB reserves (as well as a rider for a long-term care benefit) reported in contractholder deposit funds and other policy liabilities in the consolidated statements of financial condition. The GMDB exposure includes reinsurance assumed.
| Years Ended December 31,
| 2022 |  | 2021
Balance, as of beginning of year | $ | 119,705 |  |  | $ | 110,243 |
Expense incurred | 71,687 |  |  | 28,352 |
Claims paid | (27,832) |  |  | (15,011) |
Reinsurance premium paid | (18,101) |  |  | (13,267) |
Claims ceded to reinsurers | 15,549 |  |  | 9,388 |
Balance, as of end of year | $ | 161,008 |  |  | $ | 119,705 |
The following table shows the balance of the GMWB reserves reported in contractholder deposit funds and other policyholder liabilities in the consolidated balance sheets:
| Years Ended
| December 31, 2022 |  | December 31, 2021
Balance, as of beginning of year | $ | 1,010,846 |  |  | $ | 872,914 |
Expense incurred | 171,603 |  |  | 137,932 |
Balance, as of end of year | $ | 1,182,449 |  |  | $ | 1,010,846 |
Net Amount of Risk by Product and Guarantee | The following table presents the account value, net amount at risk and average attained age of underlying variable annuity contractholders for guarantees in the event of death as of December 31, 2022 and 2021. The net amount at risk is the death benefit coverage in-force or the amount that Global Atlantic would have to pay if all variable annuity contractholders had died as of the specified date, and represents the excess of the guaranteed benefit over the account value.
| December 31, 2022 |  | December 31, 2021
($ in thousands, except for contractholders information) |  |  |
Net deposits paid |  |  |
Account value | $ | 3,516,540 |  |  | $ | 4,615,409 |
Net amount at risk | $ | 274,144 |  |  | $ | 95,467 |
Average attained age of contractholders | 69 |  | 69
Ratchet (highest historical account value at specified anniversary dates) |  |  |
Account value | $ | 575,999 |  |  | $ | 512,683 |
Net amount at risk | $ | 41,145 |  |  | $ | 15,827 |
Average attained age of contractholders | 71 |  | 72
Roll-up (net deposits accumulated at a specified rate) |  |  |
Account value | $ | — |  |  | $ | 11,053 |
Net amount at risk | $ | — |  |  | $ | 1,801 |
Average attained age of contractholders | 0 |  | 84
Higher of ratchet or roll-up |  |  |
Account value | $ | 1,259,431 |  |  | $ | 1,694,832 |
Net amount at risk | $ | 485,094 |  |  | $ | 278,424 |
Average attained age of contractholders | 77 |  | 77
Total of guaranteed benefits categorized above |  |  |
Account value | $ | 5,351,970 |  |  | $ | 6,833,977 |
Net amount at risk | $ | 800,383 |  |  | $ | 391,519 |
Average attained age of contractholders (weighted by account value) | 71 |  | 71
Number of contractholders | 71,944 |  |  | 77,059 |
The following table presents the account value, net amount at risk and number of contractholders for annuity contracts with guaranteed withdrawal benefits as of December 31, 2022 and 2021:
| December 31, 2022 |  | December 31, 2021
($ in thousands, except for contractholders information) |  |  |
Account value | $ | 10,444,227 |  |  | $ | 11,057,318 |
Net amount at risk | $ | 4,761,980 |  |  | $ | 3,655,914 |
Number of contractholders | 80,559 |  |  | 80,955 |
Closed Block Assets & Liabilities | Summarized financial information of Global Atlantic’s closed blocks is as follows:
| December 31, 2022 |  | December 31, 2021
Assets |  |  |
Total investments | $ | 1,365 |  |  | $ | 2,964 |
Cash and cash equivalents | 4,007 |  |  | 2,904 |
Accrued investment income | 44 |  |  | 35 |
Reinsurance recoverable | 981,775 |  |  | 1,293,791 |
Deferred income taxes | 43,766 |  |  | 59,902 |
Total assets | 1,030,957 |  |  | 1,359,596 |
Liabilities |  |  |
Future policy benefits | 894,117 |  |  | 1,226,231 |
Outstanding claims | 27,912 |  |  | 28,655 |
Contractholder deposit funds and other liabilities | 1,010 |  |  | 1,074 |
Policyholder dividend obligation at fair value(1) | 79,575 |  |  | 81,280 |
Policyholder dividends payable at fair value(1) | 10,013 |  |  | 11,096 |
Total policy liabilities | 1,012,627 |  |  | 1,348,336 |
Accrued expenses and other liabilities | 12,803 |  |  | 10,412 |
Total liabilities | 1,025,430 |  |  | 1,358,748 |
Excess of closed block liabilities over assets designated to the closed blocks and maximum future earnings to be recognized from closed block assets and liabilities | $ | (5,527) |  |  | $ | (848) |
(1)Included within contractholder deposit funds and other policyholder liabilities in the consolidated balance sheets.
| Years Ended
| December 31, 2022 |  | December 31, 2021
Revenues |  |  |
Premiums and other income | $ | (436) |  |  | $ | 660 |
Net investment expense | 164 |  |  | (28) |
Total revenues | (272) |  |  | 632 |
Benefits and expenses |  |  |
Policy benefits | (12,141) |  |  | (5,652) |
Other expenses | 251 |  |  | 8 |
Total benefits and expenses | (11,890) |  |  | (5,644) |
Net contribution from the closed blocks | 11,618 |  |  | 6,276 |
Income tax (benefit) expense | 16,185 |  |  | (3,026) |
Net (loss) income | $ | (4,567) |  |  | $ | 9,302 |
Contractholder Deposit Funds with Embedded Derivatives | The following table shows the balances of the account value and embedded derivatives reported in policy liabilities in the consolidated statements of financial condition:
| December 31, 2022 |  | December 31, 2021
Account value | $ | 35,615,978 |  |  | $ | 28,537,784 |
Embedded derivatives | $ | 2,193,226 |  |  | $ | 2,541,225 |

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