
	September 30, 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	78		—		(10)		—
Attributed fees collected and interest accrual	103		—		131		—
Actual policyholder behavior different from expected	8		—		27		—
Changes in assumptions and other	32		—		29		—


Effects of market related movements	(31)		—		(70)		—
Balance, end of period, before effect of changes in the instrument-specific credit risk	399		1		209		1
Effect of changes in the instrument-specific credit risk	112		—		105		—
Balance, end of period, net liability	511		1		314		1
Less: reinsured market risk benefits	43		—		—		—
Balance, end of period, net of reinsurance	$	468	$	1	$	314	$	1

Weighted-average attained age of policyholders weighted by total AV (years)	68.04		72.47		68.28		72.59
Net amount at risk	$	1,390	$	2	$	1,059	$	2


	September 30, 2024						December 31, 2023
	Direct		Reinsured		Net		Direct		Reinsured		Net
	(In millions)
MRB asset
Indexed annuities	$	91	$	43	$	134	$	88	$	—	$	88

Total MRB asset	$	91	$	43	$	134	$	88	$	—	$	88

MRB liability
Indexed annuities	$	602	$	—	$	602	$	402	$	—	$	402
Fixed rate annuities	1		—		1		1		—		1
Total MRB liability	$	603	$	—	$	603	$	403	$	—	$	403

The net MRB liability increased for the nine months ended September 30, 2024, primarily as a result of collection of attributed fees, interest accrual, MRB reserves for contracts issued within the period, and changes in actuarial assumptions. 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 nine months ended September 30, 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; and an increase in the rider benefit utilization assumption, leading to an unfavorable 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 attributed fees collected, increases as a result of actual policyholder behavior different than expected and changes in assumptions 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 2024 and 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. For the nine months ended September 30, 2024, we updated assumptions including surrender rates, rider benefit election utilization and option budgets. For the year ended December 31, 2023,we updated assumptions 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 updates. These updates, in total, led to increases in the net MRB liability for the nine months ended September 30, 2024 and for the year ended December 31, 2023.


	September 30, 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	4,829			4,476			157			599		1,803
Premiums received	85			1			361			—		—
Policy charges (a)	(140)			—			(231)			—		—
Surrenders and withdrawals	(2,807)			(1,184)			(75)			—		—
Benefit payments	(368)			(233)			(13)			(791)		(1,576)

Interest credited	488			476			108			51		89
Other	5			—			—			(1)		(2)
Balance, end of period	29,256			16,979			2,698			2,471		2,853
Embedded derivative adjustment (c)	790			—			119			—		—
Gross Liability, end of period	30,046			16,979			2,817			2,471		2,853
Less: Reinsurance	410			10,471			883			—		—
Net Liability, after Reinsurance	$	29,636		$	6,508		$	1,934		$	2,471	$	2,853

Weighted-average crediting rate	2.33		%	4.26		%	5.84		%	N/A		N/A
Net amount at risk (d)	N/A			N/A			$	70,859		N/A		N/A
Cash surrender value (e)	$	26,985		$	15,815		$	2,088		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.

(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 period	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


	September 30, 2024		December 31, 2023
	(In millions)
Indexed annuities	$	30,046	$	27,407
Fixed rate annuities	16,979		13,443
Immediate annuities	292		311
Universal life	2,817		2,475
Traditional life	5		5
Funding Agreement-FABN	2,471		2,613
FHLB	2,853		2,539
PRT	5		5
Total	$	55,468	$	48,798

Annually, typically in the third quarter, we review assumptions associated with reserves for policy benefits and product guarantees. For the nine months ended September 30, 2024, based on policyholder behavior, experience and interest rate movements, we reflected updates to surrender assumptions for recent and expected near term policyholder behavior, as well as updated certain FIA assumptions used to calculate the fair value of the embedded derivative component within contractholder funds. These changes resulted in a decrease in total benefits and other changes in policy reserves of approximately $79 million for the nine months ended September 30, 2024.

For the year ended December 31, 2023, based on increases in interest rates and pricing changes, we updated certain FIA 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 $73 million for the year ended December 31, 2023.

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:


	September 30, 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%	$	23,095	$	1,285	$	502	$	1,847	$	26,729
1.51%-2.50%	700		1		460		1,046		2,207
Greater than 2.50%	317		2		—		1		320
Total	$	24,112	$	1,288	$	962	$	2,894	$	29,256

Fixed Rate Annuities
0.00%-1.50%	$	46	$	21	$	925	$	13,855	$	14,847
1.51%-2.50%	4		7		20		460		491
Greater than 2.50%	826		2		3		810		1,641
Total	$	876	$	30	$	948	$	15,125	$	16,979

Universal Life
0.00%-1.50%	$	2,303	$	6	$	—	$	22	$	2,331

Greater than 2.50%	366		—		1		—		367
Total	$	2,669	$	6	$	1	$	22	$	2,698


	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

Greater than 2.50%	361		16		1		—		378
Total	$	2,348	$	21	$	1	$	21	$	2,391