XML 37 R26.htm IDEA: XBRL DOCUMENT
v3.23.2

Contractholder Funds | 6 Months Ended
--- | ---
Jun. 30, 2023
Insurance [Abstract] |
Contractholder Funds | Market Risk Benefits The following table presents the balances of and changes in MRBs associated with FIAs and fixed rate annuities for the six months ended June 30, 2023 and the years ended December 31, 2022 and December 31, 2021:
| June 30, 2023 |  | December 31, 2022 |  | December 31, 2021
| FIA |  | Fixed rate annuities |  | FIA |  | Fixed rate annuities |  | FIA |  | Fixed rate annuities
| (Dollars in millions)
Balance, beginning of period | $ | 164 |  |  | $ | 1 |  |  | $ | 426 |  |  | $ | 2 |  |  | $ | 478 |  |  | $ | 1 |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | $ | 102 |  |  | $ | 1 |  |  | $ | 280 |  |  | $ | 1 |  |  | $ | 320 |  |  | $ | 1 |
Issuances and benefit payments | (8) |  |  | — |  |  | (21) |  |  | — |  |  | (9) |  |  | — |
Attributed fees collected and interest accrual | 68 |  |  | — |  |  | 107 |  |  | 1 |  |  | 99 |  |  | 1 |
Actual policyholder behavior different from expected | 11 |  |  | — |  |  | 43 |  |  | — |  |  | (22) |  |  | — |
Changes in assumptions and other | 1 |  |  | — |  |  | (76) |  |  | — |  |  | — |  |  | — |
Effects of market related movements | (38) |  |  | — |  |  | (231) |  |  | (1) |  |  | (108) |  |  | (1) |
Balance, end of period, before effect of changes in the instrument-specific credit risk | $ | 136 |  |  | $ | 1 |  |  | $ | 102 |  |  | $ | 1 |  |  | $ | 280 |  |  | $ | 1 |
Effect of changes in the instrument-specific credit risk | 58 |  |  | — |  |  | 62 |  |  | — |  |  | 146 |  |  | 1 |
Balance, end of period | $ | 194 |  |  | $ | 1 |  |  | $ | 164 |  |  | $ | 1 |  |  | $ | 426 |  |  | $ | 2 |
Weighted-average attained age of policyholders weighted by total AV (years) | 68.41 |  | 72.67 |  | 68.59 |  | 72.88 |  | 68.95 |  | 73.10
Net amount at risk | $ | 1,006 |  |  | $ | 3 |  |  | $ | 952 |  |  | $ | 3 |  |  | $ | 1,304 |  |  | $ | 4 |
The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRB amounts in the accompanying unaudited Condensed Consolidated Balance Sheets:
| June 30, 2023 |  | December 31, 2022 |  | December 31, 2021
| Asset |  | Liability |  | Net |  | Asset |  | Liability |  | Net |  | Asset |  | Liability |  | Net
| (In millions)
FIA | $ | 118 |  |  | $ | 312 |  |  | $ | 194 |  |  | $ | 117 |  |  | $ | 281 |  |  | $ | 164 |  |  | $ | 41 |  |  | $ | 467 |  |  | $ | 426 |
Fixed rate annuities | — |  |  | 1 |  |  | 1 |  |  | — |  |  | 1 |  |  | 1 |  |  | — |  |  | 2 |  |  | 2 |
Total | $ | 118 |  |  | $ | 313 |  |  | $ | 195 |  |  | $ | 117 |  |  | $ | 282 |  |  | $ | 165 |  |  | $ | 41 |  |  | $ | 469 |  |  | $ | 428 |
For the six months ended June 30, 2023, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: •Risk-free rates increased slightly, leading to a decrease in the MRB associated with FIA and fixed rate annuities. •Increases in the equity market related projections resulted in a decrease in the net amount at risk associated with FIAs, leading to a decrease in the value of the associated MRBs. •F&G’s credit spread increased slightly, leading to a corresponding decrease in the MRBs associated with both FIA and fixed rate annuities. In 2022, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: •Risk-free rates increased significantly, leading to a decrease in the MRBs associated with both FIA and fixed rate annuities. •Decreases in the equity markets resulted in an increase in the net amount at risk associated with FIAs, leading to an increase in the value of the associated MRBs. •Volatility indices increased, leading to an increase in the MRBs associated with FIAs. •Cash flow assumptions for mortality and full and partial surrenders were unchanged during the annual third quarter review. The GMWB utilization assumption was revised in the second quarter of 2022 to reflect additional internal and industry experience for the first several contract years. This assumption update led to a decrease in the MRBs. •F&G’s credit spread increased during the year, leading to a corresponding decrease in the MRBs value. Credit spreads on the block of business remain lower than the at-issue or at-purchase credit spreads, but the level has decreased since the beginning of 2022. In 2021, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased moderately, leading to a decrease in the MRBs associated with both FIA and fixed rate annuities. •Increases in the equity markets resulted in a decrease in the net amount at risk associated with FIA and fixed rate annuities, leading to a decrease in the value of the associated MRBs. Contractholder Funds The following tables summarize balances of and changes in contractholder funds’ account balances:
| June 30, 2023
| FIA |  | Fixed rate annuities |  | Universal Life |  | FABN (b) |  | FHLB (b)
| (Dollars in millions)
Balance, beginning of year | $ | 24,766 |  |  | $ | 9,358 |  |  | $ | 2,112 |  |  | $ | 2,613 |  |  | $ | 1,982 |
Issuances | 2,415 |  |  | 2,584 |  |  | 99 |  |  | — |  |  | 456 |
Premiums received | 52 |  |  | 1 |  |  | 180 |  |  | — |  |  | — |
Policy charges (a) | (87) |  |  | — |  |  | (124) |  |  | — |  |  | — |
Surrenders and withdrawals | (876) |  |  | (520) |  |  | (45) |  |  | — |  |  | — |
Benefit payments | (254) |  |  | (118) |  |  | (16) |  |  | (27) |  |  | (323) |
Interest credited | 69 |  |  | 179 |  |  | 20 |  |  | 27 |  |  | 25 |
Other | 23 |  |  | (1) |  |  | — |  |  | — |  |  | 3 |
Balance, end of year | $ | 26,108 |  |  | $ | 11,483 |  |  | $ | 2,226 |  |  | $ | 2,613 |  |  | $ | 2,143 |
Embedded derivative adjustment (c) | 98 |  |  | — |  |  | 73 |  |  | — |  |  | — |
Gross Liability, end of period | $ | 26,206 |  |  | $ | 11,483 |  |  | $ | 2,299 |  |  | $ | 2,613 |  |  | $ | 2,143 |
Less: Reinsurance | (17) |  |  | (5,431) |  |  | (924) |  |  | — |  |  | — |
Net Liability, after Reinsurance | $ | 26,189 |  |  | $ | 6,052 |  |  | $ | 1,375 |  |  | $ | 2,613 |  |  | $ | 2,143 |
Weighted-average crediting rate | 1.10 | % |  | 7.07 | % |  | 3.85 | % |  | N/A |  | N/A
Net amount at risk (d) | N/A |  | N/A |  | 53,401 |  |  | N/A |  | N/A
Cash surrender value | 24,337 |  |  | 10,707 |  |  | 1,760 |  |  | N/A |  | N/A
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
| December 31, 2022
| FIA |  | Fixed rate annuities |  | Universal Life |  | FABN (b) |  | FHLB (b)
| (Dollars in millions)
Balance, beginning of year | 21,997 |  |  | 6,367 |  |  | 1,907 |  |  | 1,904 |  |  | 1,543 |
Issuances | 4,462 |  |  | 3,758 |  |  | 167 |  |  | 700 |  |  | 1,192 |
Premiums received | 106 |  |  | 3 |  |  | 295 |  |  | — |  |  | — |
Policy charges (a) | (166) |  |  | (1) |  |  | (209) |  |  | — |  |  | — |
Surrenders and withdrawals | (1,322) |  |  | (797) |  |  | (74) |  |  | — |  |  | — |
Benefit payments | (485) |  |  | (192) |  |  | (22) |  |  | (35) |  |  | (789) |
Interest credited | 198 |  |  | 220 |  |  | 48 |  |  | 45 |  |  | 36 |
Other | (24) |  |  | — |  |  | — |  |  | (1) |  |  | — |
Balance, end of year | $ | 24,766 |  |  | $ | 9,358 |  |  | $ | 2,112 |  |  | $ | 2,613 |  |  | $ | 1,982 |
Embedded derivative adjustment (c) | (343) |  |  | — |  |  | 15 |  |  | — |  |  | — |
Gross Liability, end of period | $ | 24,423 |  |  | $ | 9,358 |  |  | $ | 2,127 |  |  | $ | 2,613 |  |  | $ | 1,982 |
Less: Reinsurance | (17) |  |  | (3,723) |  |  | (947) |  |  | — |  |  | — |
Net Liability, after Reinsurance | $ | 24,406 |  |  | $ | 5,635 |  |  | $ | 1,180 |  |  | $ | 2,613 |  |  | $ | 1,982 |
Weighted-average crediting rate | 0.85 | % |  | 2.84 | % |  | 2.39 | % |  | N/A |  | N/A
Net amount at risk (d) | N/A |  | N/A |  | 53,348 |  |  | N/A |  | N/A
Cash surrender value | 188 |  |  | 5,992 |  |  | 1,698 |  |  | N/A |  | N/A
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
| December 31, 2021
| FIA |  | Fixed rate annuities |  | Universal Life |  | FABN (b) |  | FHLB (b)
| (Dollars in millions)
Balance, beginning of year | $ | 18,703 |  |  | $ | 5,142 |  |  | $ | 1,696 |  |  | $ | — |  |  | $ | 1,203 |
Issuances | 4,400 |  |  | 1,743 |  |  | 114 |  |  | 1,899 |  |  | 759 |
Premiums received | 103 |  |  | 3 |  |  | 233 |  |  | — |  |  | — |
Policy charges (a) | (148) |  |  | (1) |  |  | (167) |  |  | — |  |  | — |
Surrenders and withdrawals | (1,303) |  |  | (543) |  |  | (68) |  |  | — |  |  | — |
Benefit payments | (440) |  |  | (145) |  |  | (19) |  |  | (7) |  |  | (447) |
Interest credited | 686 |  |  | 167 |  |  | 118 |  |  | 12 |  |  | 30 |
Other | (4) |  |  | 1 |  |  | — |  |  | — |  |  | (2) |
Balance, end of year | $ | 21,997 |  |  | $ | 6,367 |  |  | $ | 1,907 |  |  | $ | 1,904 |  |  | $ | 1,543 |
Embedded derivative adjustment (c) | 603 |  |  | — |  |  | 74 |  |  | — |  |  | — |
Gross Liability, end of period | $ | 22,600 |  |  | $ | 6,367 |  |  | $ | 1,981 |  |  | $ | 1,904 |  |  | $ | 1,543 |
Less: Reinsurance | (17) |  |  | (1,692) |  |  | (984) |  |  | — |  |  | — |
Net Liability, after Reinsurance | $ | 22,583 |  |  | $ | 4,675 |  |  | $ | 997 |  |  | $ | 1,904 |  |  | $ | 1,543 |
Weighted-average crediting rate | 3.43 | % |  | 2.94 | % |  | 6.77 | % |  | N/A |  | N/A
Net amount at risk (d) | N/A |  | N/A |  | 41,326 |  |  | N/A |  | N/A
Cash surrender value | 20,455 |  |  | 5,992 |  |  | 1,572 |  |  | N/A |  | N/A
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the accompanying unaudited Condensed Consolidated Balance Sheets:
| June 30, 2023 |  | December 31, 2022 |  | December 31, 2021
| (In millions)
FIA | $ | 26,206 |  |  | $ | 24,423 |  |  | $ | 22,600 |
Fixed rate annuities | 11,483 |  |  | 9,358 |  |  | 6,367 |
Immediate annuities | 317 |  |  | 332 |  |  | 352 |
Universal life | 2,299 |  |  | 2,127 |  |  | 1,981 |
Traditional life | 5 |  |  | 5 |  |  | 5 |
Funding Agreement-FABN | 2,613 |  |  | 2,613 |  |  | 1,904 |
FHLB | 2,143 |  |  | 1,982 |  |  | 1,543 |
PRT | 4 |  |  | 3 |  |  | 1 |
Total | $ | 45,070 |  |  | $ | 40,843 |  |  | $ | 34,753 |
The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums:
| June 30, 2023
| At Guaranteed Minimum |  | 1 Basis Point-50 Basis Points Above |  | 51 Basis Points-150 Basis Points Above |  | Greater Than 150 Basis Points Above |  | Total
FIA | (In millions)
0.00%-1.50% | $ | 23,749 |  |  | $ | 796 |  |  | $ | 403 |  |  | $ | 663 |  |  | $ | 25,611 |
1.51%-2.50% | 141 |  |  | — |  |  | 1 |  |  | — |  |  | 142 |
Greater than 2.50% | 353 |  |  | — |  |  | 2 |  |  | — |  |  | 355 |
Total | $ | 24,243 |  |  | $ | 796 |  |  | $ | 406 |  |  | $ | 663 |  |  | $ | 26,108 |
Fixed Rate Annuities |  |  |  |  |  |  |  |  |
0.00%-1.50% | $ | 17 |  |  | $ | 30 |  |  | $ | 1,838 |  |  | $ | 8,287 |  |  | $ | 10,172 |
1.51%-2.50% | 8 |  |  | 13 |  |  | 28 |  |  | 313 |  |  | 362 |
Greater than 2.50% | 934 |  |  | 3 |  |  | 4 |  |  | 8 |  |  | 949 |
Total | $ | 959 |  |  | $ | 46 |  |  | $ | 1,870 |  |  | $ | 8,608 |  |  | $ | 11,483 |
Universal Life |  |  |  |  |  |  |  |  |
0.00%-1.50% | $ | 1,822 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 18 |  |  | $ | 1,844 |
1.51%-2.50% | — |  |  | — |  |  | — |  |  | — |  |  | — |
Greater than 2.50% | 346 |  |  | 35 |  |  | 1 |  |  | — |  |  | 382 |
Total | $ | 2,168 |  |  | $ | 39 |  |  | $ | 1 |  |  | $ | 18 |  |  | $ | 2,226 |
| December 31, 2022
| At Guaranteed Minimum |  | 1 Basis Point-50 Basis Points Above |  | 51 Basis Points-150 Basis Points Above |  | Greater Than 150 Basis Points Above |  | Total
FIA | (In millions)
0.00%-1.50% | $ | 22,848 |  |  | $ | 801 |  |  | $ | 410 |  |  | $ | 151 |  |  | $ | 24,210 |
1.51%-2.50% | 162 |  |  | — |  |  | 1 |  |  | — |  |  | 163 |
Greater than 2.50% | 390 |  |  | — |  |  | 3 |  |  | — |  |  | 393 |
Total | $ | 23,400 |  |  | $ | 801 |  |  | $ | 414 |  |  | $ | 151 |  |  | $ | 24,766 |
Fixed Rate Annuities |  |  |  |  |  |  |  |  |
0.00%-1.50% | $ | 10 |  |  | $ | 32 |  |  | $ | 1,871 |  |  | $ | 6,379 |  |  | $ | 8,292 |
1.51%-2.50% | 9 |  |  | 14 |  |  | 30 |  |  | 1 |  |  | 54 |
Greater than 2.50% | 997 |  |  | 4 |  |  | 4 |  |  | 7 |  |  | 1,012 |
Total | $ | 1,016 |  |  | $ | 50 |  |  | $ | 1,905 |  |  | $ | 6,387 |  |  | $ | 9,358 |
Universal Life |  |  |  |  |  |  |  |  |
0.00%-1.50% | $ | 1,701 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 17 |  |  | $ | 1,721 |
1.51%-2.50% | — |  |  | — |  |  | — |  |  | — |  |  | — |
Greater than 2.50% | 346 |  |  | 44 |  |  | 1 |  |  | — |  |  | 391 |
Total | $ | 2,047 |  |  | $ | 47 |  |  | $ | 1 |  |  | $ | 17 |  |  | $ | 2,112 |
| December 31, 2021
| At Guaranteed Minimum |  | 1 Basis Point-50 Basis Points Above |  | 51 Basis Points-150 Basis Points Above |  | Greater Than 150 Basis Points Above |  | Total
FIA | (In millions)
0.00%-1.50% | $ | 20,162 |  |  | $ | 803 |  |  | $ | 388 |  |  | $ | — |  |  | $ | 21,353 |
1.51%-2.50% | 171 |  |  | 11 |  |  | 25 |  |  | — |  |  | 207 |
Greater than 2.50% | 431 |  |  | 3 |  |  | 3 |  |  | — |  |  | 437 |
Total | $ | 20,764 |  |  | $ | 817 |  |  | $ | 416 |  |  | $ | — |  |  | $ | 21,997 |
Fixed Rate Annuities |  |  |  |  |  |  |  |  |
0.00%-1.50% | $ | 2 |  |  | $ | 28 |  |  | $ | 1,928 |  |  | $ | 3,219 |  |  | $ | 5,177 |
1.51%-2.50% | 9 |  |  | 15 |  |  | 37 |  |  | 1 |  |  | 62 |
Greater than 2.50% | 954 |  |  | 142 |  |  | 25 |  |  | 7 |  |  | 1,128 |
Total | $ | 965 |  |  | $ | 185 |  |  | $ | 1,990 |  |  | $ | 3,227 |  |  | $ | 6,367 |
Universal Life |  |  |  |  |  |  |  |  |
0.00%-1.50% | $ | 1,486 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 13 |  |  | $ | 1,501 |
1.51%-2.50% | — |  |  | — |  |  | — |  |  | — |  |  | — |
Greater than 2.50% | 359 |  |  | 46 |  |  | 1 |  |  | — |  |  | 406 |
Total | $ | 1,845 |  |  | $ | 48 |  |  | $ | 1 |  |  | $ | 13 |  |  | $ | 1,907 |

X
- References No definition available. + Details
Name: | us-gaap_InsuranceAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long duration contracts. This may include the information pertinent to an understanding of the types of traditional and nontraditional insurance and investment contracts sold and serviced, including the nature and amount of estimated guaranteed obligations pertaining to such contracts and the assumptions underlying such estimated amounts, hedging strategies, and sales inducements offered. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (u) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480016/944-40-65-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//944/tableOfContent + Details
Name: | us-gaap_LongDurationInsuranceContractsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration