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REINSURANCE
 12 Months Ended
Dec. 31, 2022
Reinsurance Disclosures [Abstract]  
REINSURANCE REINSURANCE
The Company assumes and cedes reinsurance with other insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability.
The following table summarizes the effect of reinsurance. The impact of the transactions described above results in a decrease to reinsurance assumed and an increase in reinsurance ceded.
Year Ended December 31,
202220212020
(in millions)
Direct premiums$1,042 $970 $929 
Reinsurance assumed180 189 222 
Reinsurance ceded(228)(199)(154)
Premiums$994 $960 $997 
Direct charges and fee income$3,932 $4,250 $4,149 
Reinsurance ceded(691)(613)(414)
Policy charges and fee income$3,241 $3,637 $3,735 
Direct policyholders’ benefits$4,371 $3,843 $5,826 
Reinsurance assumed209 238 241 
Reinsurance ceded(1,195)(863)(741)
Policyholders’ benefits$3,385 $3,218 $5,326 
Direct interest credited to policyholders’ account balances$1,433 $1,271 $1,252 
Reinsurance ceded(24)(52)(30)
Interest credited to policyholders’ account balances$1,409 $1,219 $1,222 
Ceded Reinsurance
The Company reinsures most of its new variable life, UL and term life policies on an excess of retention basis. The Company generally retains on a per life basis up to $25 million for single lives and $30 million for joint lives with the excess 100% reinsured. The Company also reinsures risk on certain substandard underwriting risks and in certain other cases.
On June 1, 2021, Holdings completed the sale of CSLRC to VIAC. Immediately following the closing of the Transaction, CSLRC and Equitable Financial entered into the Reinsurance Agreement, pursuant to which Equitable Financial ceded to CSLRC, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction.
On October 3, 2022, as part of the Global Atlantic Transaction, Equitable Financial ceded to First Allmerica Financial Life Insurance Company on a combined coinsurance and modified coinsurance basis, a 50% quota share of approximately 360,000 legacy Group EQUI-VEST deferred variable annuity contracts issued by Equitable Financial between 1980 and 2008.
As of December 31, 2022 and 2021, the Company had reinsured with non-affiliates in the aggregate approximately 41.6% and 47.6%, respectively, of its current exposure to the GMDB obligation on annuity contracts in-force and, subject to certain maximum amounts or caps in any one period, approximately 59.8% and 59.8% of its current liability exposure, respectively, resulting from the GMIB feature. For additional information, see Note 9 of the Notes to these Consolidated Financial Statements.
In addition to the above, the Company cedes a portion of its group health, extended term insurance, and paid-up life insurance and substantially all of its individual disability income business through various coinsurance agreements.
Assumed Reinsurance
In addition to the sale of insurance products, the Company currently assumes risk from professional reinsurers. The Company also had a run-off portfolio of assumed reinsurance liabilities at CSLRC which was sold to Venerable in June 2021. The Company assumes accident, life, health, annuity (including products covering GMDB and GMIB benefits), aviation, special risk and space risks by participating in or reinsuring various reinsurance pools and arrangements.
The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves.
December 31,
 20222021
(in millions)
Ceded Reinsurance:
Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives (1)$1,229 $1,848 
Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable (2)4,114 5,813 
Third-party reinsurance recoverables related to insurance contracts17,201 14,679 
Top reinsurers:
Venerable Insurance and Annuity Company (A- KBRA (IFRS) rating)
8,966 10,291
First Allmerica-GAF4,005 
RGA Reinsurance Company (AA- S&P rating))1,272 1,138 
Zurich Life Insurance Company, Ltd. (AA- S&P rating)1,181 1,318 
Ceded group health reserves47 40 
Amount due to reinsurers1,533 1,381 
Top reinsurers:
RGA Reinsurance Company1,171 1,212
First Allmerica-GAF147 — 
Protective Life Insurance Company104 111 
Assumed Reinsurance:
Reinsurance assumed reserves662 798 
______________
(1)The estimated fair values increased/(decreased) ($619) million, ($640) million and $349 million for the years ended December 31, 2022, 2021 and 2020, respectively.
(2)Reported in amounts due from reinsurers. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable transaction.