The following table presents the balances of and changes in MRBs associated with indexed annuities and fixed rate annuities for the three months ended March 31, 2024 and the year ended December 31, 2023:


	March 31, 2024				December 31, 2023
	Indexed annuities		Fixed rate annuities		Indexed annuities		Fixed rate annuities
	(In millions)
Balance, beginning of period, net liability	$	314	$	1	$	164	$	1

Balance, beginning of period, before effect of changes in the instrument-specific credit risk	$	209	$	1	$	102	$	1
Issuances and benefit payments	12		—		(10)		—
Attributed fees collected and interest accrual	36		—		131		—
Actual policyholder behavior different from expected	8		—		27		—
Changes in assumptions and other	(2)		—		29		—


Effects of market related movements	(37)		—		(70)		—
Balance, end of period, before effect of changes in the instrument-specific credit risk	$	226	$	1	$	209	$	1
Effect of changes in the instrument-specific credit risk	103		—		105		—
Balance, end of period, net liability	$	329	$	1	$	314	$	1



Weighted-average attained age of policyholders weighted by total AV (years)	68.20		72.55		68.28		72.59
Net amount at risk	$	1,091	$	2	$	1,059	$	2

The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRBs amounts in the accompanying unaudited Condensed Consolidated Balance Sheets:


	March 31, 2024						December 31, 2023
	Asset		Liability		Net		Asset		Liability		Net
	(In millions)
Fixed rate annuities	$	—	$	1	$	1	$	—	$	1	$	1
Indexed annuities	95		424		329		88		402		314
Total	$	95	$	425	$	330	$	88	$	403	$	315

The net MRB liability increased for the three months ended March 31, 2024, primarily as a result of collection of attributed fees and interest accrual as well as new MRB reserves for contracts issued within the period. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections.

For the three months ended March 31, 2024, notable changes made to the inputs to the fair value estimates of MRBs calculations included an increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs.

The net MRB liability increased for the year ended December 31, 2023, primarily as a result of collection of attributed fees and interest accrual as well actual policyholder behavior different than expected and changes in assumptions and other as discussed below. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections.

For the year ended December 31, 2023, notable changes made to the inputs to the fair value estimates of MRBs calculations included a significant increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs; and F&G’s credit spread decreased, lead to a corresponding unfavorable change in the MRBs associated with both indexed annuities and fixed rate annuities.

In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuities (indexed annuities and fixed rate annuities) with MRBs including surrender rates, partial withdrawal rates, mortality improvement, and option budgets. All updates to these assumptions brought us more in line with our Company and overall industry experience since the prior assumption update. These updates, in total, led to an increase in the net MRB liability during the year ended December 31, 2023.


	March 31, 2024
	Indexed annuities			Fixed rate annuities			Universal Life			FABN (b)		FHLB (b)
	(Dollars in millions)
Balance, beginning of year	$	27,164		$	13,443		$	2,391		$	2,613	$	2,539
Issuances	1,381			1,341			51			—		305
Premiums received	28			—			114			—		—
Policy charges (a)	(46)			—			(74)			—		—
Surrenders and withdrawals	(690)			(364)			(22)			—		—
Benefit payments	(119)			(76)			(5)			(16)		(329)

Interest credited	139			142			33			14		24
Other	5			—			—			—		—
Balance, end of year	$	27,862		$	14,486		$	2,488		$	2,611	$	2,539
Embedded derivative adjustment (c)	468			—			107			—		—
Gross Liability, end of period	$	28,330		$	14,486		$	2,595		$	2,611	$	2,539
Less: Reinsurance	(13)			(8,612)			(894)			—		—
Net Liability, after Reinsurance	$	28,317		$	5,874		$	1,701		$	2,611	$	2,539

Weighted-average crediting rate	2.04		%	4.15		%	5.54		%	N/A		N/A
Net amount at risk (d)	N/A			N/A			$	63,968		N/A		N/A
Cash surrender value (e)	$	25,724		$	13,502		$	1,938		N/A		N/A

(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, 2023
	Indexed annuities			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	4,722			5,061			199			—		1,256
Premiums received	103			1			382			—		—
Policy charges (a)	(182)			—			(261)			—		—
Surrenders and withdrawals	(2,005)			(1,142)			(90)			—		—
Benefit payments	(526)			(240)			(27)			(53)		(763)

Interest credited	270			405			76			54		64
Other	16			—			—			(1)		—
Balance, end of year	27,164			13,443			2,391			2,613		2,539
Embedded derivative adjustment (c)	243			—			84			—		—
Gross Liability, end of period	27,407			13,443			2,475			2,613		2,539
Less: Reinsurance	(17)			(7,520)			(894)			—		—
Net Liability, after Reinsurance	$	27,390		$	5,923		$	1,581		$	2,613	$	2,539

Weighted-average crediting rate	1.40		%	4.85		%	3.44		%	N/A		N/A
Net amount at risk (d)	N/A			N/A			$	60,389		N/A		N/A
Cash surrender value (e)	$	25,099		$	12,505		$	1,872		N/A		N/A

(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.


	March 31, 2024		December 31, 2023
	(In millions)
Indexed annuities	$	28,330	$	27,407
Fixed rate annuities	14,486		13,443
Immediate annuities	304		311
Universal life	2,595		2,475
Traditional life	5		5
Funding Agreement-FABN	2,611		2,613
FHLB	2,539		2,539
PRT	5		5
Total	$	50,875	$	48,798

Annually, typically in the third quarter, we review assumptions associated with reserves for policy benefits and product guarantees. For the three months ended March 31, 2024, based on increases in interest rates and pricing changes, we updated certain indexed annuity assumptions used to calculate the fair value of the embedded derivative component within contractholder funds and also aligned reserves to actual policyholder behavior. These changes resulted in an increase in total benefits and other changes in policy reserves of approximately $57 million for the three months ended March 31, 2024.

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:


	March 31, 2024
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
Indexed Annuities	(In millions)
0.00%-1.50%	$	22,671	$	1,391	$	522	$	1,931	$	26,515
1.51%-2.50%	331		1		93		568		993
Greater than 2.50%	353		1		—		—		354
Total	$	23,355	$	1,393	$	615	$	2,499	$	27,862

Fixed Rate Annuities
0.00%-1.50%	$	36	$	24	$	1,340	$	11,259	$	12,659
1.51%-2.50%	4		7		21		456		488
Greater than 2.50%	870		2		4		463		1,339
Total	$	910	$	33	$	1,365	$	12,178	$	14,486

Universal Life
0.00%-1.50%	$	2,085	$	6	$	—	$	22	$	2,113
1.51%-2.50%	—		—		—		—		—
Greater than 2.50%	369		5		1		—		375
Total	$	2,454	$	11	$	1	$	22	$	2,488


	December 31, 2023
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
Indexed Annuities	(In millions)
0.00%-1.50%	$	22,392	$	1,444	$	526	$	1,953	$	26,315
1.51%-2.50%	196		1		24		250		471
Greater than 2.50%	377		1		—		—		378
Total	$	22,965	$	1,446	$	550	$	2,203	$	27,164

Fixed Rate Annuities
0.00%-1.50%	$	23	$	25	$	1,532	$	10,271	$	11,851
1.51%-2.50%	5		8		23		453		489
Greater than 2.50%	893		2		4		204		1,103
Total	$	921	$	35	$	1,559	$	10,928	$	13,443

Universal Life
0.00%-1.50%	$	1,987	$	5	$	—	$	21	$	2,013
1.51%-2.50%	—		—		—		—		—
Greater than 2.50%	361		16		1		—		378
Total	$	2,348	$	21	$	1	$	21	$	2,391