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REINSURANCE (Tables)
 12 Months Ended
Dec. 31, 2022
Insurance [Abstract]  
Effects of Reinsurance Agreements
The effects of all reinsurance agreements on the consolidated statements of financial condition were as follows:
December 31, 2022December 31, 2021
Policy liabilities:
Direct$71,758,288 $67,131,818 
Assumed69,464,999 59,388,226 
Total policy liabilities141,223,287 126,520,044 
Ceded(1)
(27,662,874)(25,035,228)
Net policy liabilities$113,560,413 $101,484,816 
(1)Reported within reinsurance recoverable within the consolidated statements of financial condition.
The effects of reinsurance on the consolidated statements of operations were as follows:
Years Ended December 31,
20222021
Net premiums:
Direct$111,602 $107,733 
Assumed(1)
2,413,234 4,573,925 
Ceded(1,342,375)(2,455,580)
Net premiums$1,182,461 $2,226,078 
(1)Includes related party activity of $8.7 million for the year ended December 31, 2021.
Years Ended December 31,
20222021
Policy fees:
Direct$967,716 $860,170 
Assumed(1)
328,528 288,870 
Ceded(17,508)(1,127)
Net policy fees$1,278,736 $1,147,913 
(1)Includes related party activity of $6.2 million for the year ended December 31, 2021.
Years Ended December 31,
20222021
Net policy benefits and claims:
Direct$1,266,262 $2,610,210 
Assumed(1)
3,421,780 5,175,944 
Ceded(1,503,615)(2,730,445)
Net policy benefits and claims$3,184,427 $5,055,709 
(1)Includes related party activity of $76.2 million for the year ended December 31, 2021.
Reinsurance Recoverable and Funds Withheld Receivable at Interest by Credit Quality Indicator The following shows the amortized cost basis of Global Atlantic’s reinsurance recoverable and funds withheld receivable at interest by credit quality indicator and any associated credit enhancements Global Atlantic has obtained to mitigate counterparty credit risk:
As of December 31, 2022 As of December 31, 2021
A.M. Best Rating(1)
Reinsurance recoverable and funds withheld receivable at interest(2)
Credit enhancements(3)
Net reinsurance credit exposure(4)
Reinsurance recoverable and funds withheld receivable at interest(2)
Credit enhancements(3)
Net reinsurance credit exposure(4)
A++$62,674 $— $62,674 $7,911 $— $7,911 
A+1,849,918 — 1,849,918 1,989,426 — 1,989,426 
A2,491,461 — 2,491,461 2,652,286 — 2,652,286 
A-5,397,767 4,197,739 1,200,028 5,645,633 5,166,559 479,074 
B++37,939 — 37,939 33,410 — 33,410 
B+— — — 1,122 — 1,122 
B— — — 9,227 — 9,227 
B-(221)— — 1,274 — 1,274 
Not rated or private rating(5)
20,994,058 18,541,678 2,452,380 17,698,613 18,323,795 — 
Total$30,833,596 $22,739,417 $8,094,400 $28,038,902 $23,490,354 $5,173,730 
(1)Ratings are periodically updated (at least annually) as A.M. Best issues new ratings.
(2)At amortized cost, excluding any associated embedded derivative assets and liabilities.
(3)Includes funds withheld payable at interest and deferred intangible reinsurance assets and liabilities.
(4)Includes credit loss allowance of $41.2 million and $8.4 million as of December 31, 2022 and 2021, respectively, held against reinsurance recoverable.
(5)Includes $21.0 billion and $17.7 billion as of December 31, 2022 and 2021, respectively, associated with cessions to Ivy Re Limited and Ivy Re II Limited (the “Ivy Vehicles”), which are co-investment vehicles that participate in qualifying reinsurance transactions sourced by Global Atlantic.