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REINSURANCE | 3 Months Ended
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Mar. 31, 2023
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.
|  |  | Three Months Ended March 31,
|  |  |  |  | 2023 |  | 2022 |  |
|  |  |  |  | (in millions)
Direct premiums |  |  |  |  | $ | 290 |  |  | $ | 250 |  |  |
Reinsurance assumed |  |  |  |  | 52 |  |  | 50 |  |  |
Reinsurance ceded |  |  |  |  | (66) |  |  | (53) |  |  |
Premiums |  |  |  |  | $ | 276 |  |  | $ | 247 |  |  |
Direct charges and fee income |  |  |  |  | $ | 777 |  |  | $ | 834 |  |  |
Reinsurance ceded |  |  |  |  | (189) |  |  | (184) |  |  |
Policy charges and fee income |  |  |  |  | $ | 588 |  |  | $ | 650 |  |  |
Direct policyholders’ benefits |  |  |  |  | $ | 859 |  |  | $ | 917 |  |  |
Reinsurance assumed |  |  |  |  | 36 |  |  | 55 |  |  |
Reinsurance ceded |  |  |  |  | (165) |  |  | (170) |  |  |
Policyholders’ benefits |  |  |  |  | $ | 730 |  |  | $ | 802 |  |  |
Direct interest credited to policyholders’ account balances |  |  |  |  | $ | 464 |  |  | $ | 338 |  |  |
Reinsurance ceded |  |  |  |  | (1) |  |  | (25) |  |  |
Interest credited to policyholders’ account balances |  |  |  |  | $ | 463 |  |  | $ | 313 |  |  |
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 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. 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.
| March 31, 2023 |  | December 31, 2022
| (in millions)
Ceded Reinsurance: |  |  |
Estimated net fair values of purchased market risk benefits | $ | 10,676 |  |  | $ | 10,423 |
Third-party reinsurance recoverables related to insurance contracts | 8,453 |  |  | 8,471 |
Top reinsurers: |  |  |
First Allmerica-GAF | 3,933 |  |  | 4,005 |
Zurich Life Insurance Company, Ltd. | 1,401 |  |  | 1,416 |
RGA Reinsurance Company | 1,301 |  |  | 1,272 |
Ceded group health reserves | 48 |  |  | 47 |
Amount due to reinsurers | 1,428 |  |  | 1,533 |
Top reinsurers: |  |  |
RGA Reinsurance Company | 1,175 |  |  | 1,171 |
First Allmerica-GAF | 71 |  |  | 147 |
Protective Life Insurance Company | 103 |  |  | 104 |
Assumed Reinsurance: |  |  |
Reinsurance assumed reserves | $ | 694 |  |  | $ | 701 |

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- Definition The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 605 -Section 55 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=99379264&loc=d3e27830-158548 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=99397103&loc=d3e6811-158387 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -URI https://asc.fasb.org/topic&trid=2303980 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 50 -Paragraph 4 -URI https://asc.fasb.org/extlink&oid=99397103&loc=d3e6816-158387 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 605 -Section 55 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=99379264&loc=d3e27758-158548 + Details
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