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MARKET RISK BENEFITS (Tables)

6 Months Ended

Jun. 30, 2023

Market Risk Benefit [Abstract]

Schedule of Market Risk Benefit, Activity

The following table summarizes the balance of and changes in the net liability position of market risk benefits on January 1, 2021 resulting from the adoption of ASU 2018-12:

			Individual Retirement						Legacy												Total
			GMxB Core						GMxB Legacy						Purchased MRB
			(in millions)
Balance, December 31, 2020			$	2,206					$	19,891					$	(2,572)					$	19,525
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income			(4)						(70)						—						(74)
Adjustments for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date (1)			505						461						2						968
Adjustments for the remaining difference (exclusive of the instrument specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurement for the MRB (1)			(563)						4,122						(194)						3,365
Balance, January 1, 2021			$	2,144					$	24,404					$	(2,764)					$	23,784

_____________

(1)MRB transition table not inclusive of the following transition adjustments to retained earnings and AOCI including Individual Retirement EQUI-VEST of $43 million, SCS of $21 million, Protection Solutions of $(2) million and Group Retirement EQUI-VEST of $(20) million.

The following table presents the balances and changes to the balances for the market risk benefits for the GMxB benefits on deferred variable annuities for the three and six months ended June 30, 2023 and 2022.

			Three Months Ended June 30,
			2023																								2022
			Individual Retirement						Legacy																		Individual Retirement						Legacy
			GMxB Core						GMxB Legacy						Purchased MRB (3)						Net Legacy						GMxB Core						GMxB Legacy						Purchased MRB (3)						Net Legacy
			(in millions)
Balance, beginning of period			$	317					$	14,082					$	(10,669)					$	3,413					$	498					$	16,931					$	(12,507)					$	4,424
Balance BOP before changes in the instrument specific credit risk			550						15,599						(10,570)						5,029						540						17,901						(12,441)						5,460
Model changes and effect of changes in cash flow assumptions			—						—						—						—						—						—						—						—
Actual market movement effect			(119)						(636)						315						(321)						674						2,562						(1,015)						1,547
Interest accrual			20						194						(134)						60						12						179						(103)						76
Attributed fees accrued (1)			111						209						(58)						151						109						219						(61)						158
Benefit payments			(12)						(344)						185						(159)						(8)						(282)						152						(130)
Actual policyholder behavior different from expected behavior			5						(7)						(8)						(15)						4						26						(25)						1
Changes in future economic assumptions			(202)						(873)						443						(430)						(553)						(2,870)						1,870						(1,000)
Issuances			(2)						—						—						—						1						—						—						—
Balance EOP before changes in the instrument-specific credit risk			351						14,142						(9,827)						4,315						779						17,735						(11,623)						6,112
Changes in the instrument-specific credit risk (2)			(220)						(1,422)						(96)						(1,518)						(365)						(2,027)						(102)						(2,129)
Balance, end of period			$	131					$	12,720					$	(9,923)					$	2,797					$	414					$	15,708					$	(11,725)					$	3,983
Weighted-average age of policyholders (years)			64.0						72.8						72.3						N/A						63.0						72.2						71.8						N/A
Net amount at risk			$	3,165					$	22,195					$	11,821					N/A						$	3,181					$	22,421					$	11,946					N/A

			Six Months Ended June 30,
			2023																								2022
			Individual Retirement						Legacy																		Individual Retirement						Legacy
			GMxB Core						GMxB Legacy						Purchased MRB (3)						Net Legacy						GMxB Core						GMxB Legacy						Purchased MRB (3)						Net Legacy
			(in millions)
Balance, beginning of period			$	530					$	14,699					$	(10,415)					$	4,284					$	1,061					$	20,236					$	(14,059)					$	6,177
Balance BOP before changes in the instrument specific credit risk			529						15,314						(10,358)						4,956						666						19,719						(14,051)						5,668
Model changes and effect of changes in cash flow assumptions			—						—						—						—						—						(87)						29						(58)
Actual market movement effect			(330)						(1,380)						702						(678)						1,002						3,660						(1,414)						2,246
Interest accrual			38						391						(287)						104						17						283						(164)						119
Attributed fees accrued (1)			206						418						(141)						277						201						438						(147)						291
Benefit payments			(24)						(686)						370						(316)						(13)						(533)						288						(245)
Actual policyholder behavior different from expected behavior			12						14						(26)						(12)						5						59						(40)						19
Changes in future economic assumptions			(77)						71						(87)						(16)						(1,095)						(5,804)						3,876						(1,928)
Issuances			(3)						—						—						—						(4)						—						—						—
Balance EOP before changes in the instrument-specific credit risk			351						14,142						(9,827)						4,315						779						17,735						(11,623)						6,112
Changes in the instrument-specific credit risk (2)			(220)						(1,422)						(96)						(1,518)						(365)						(2,027)						(102)						(2,129)
Balance, end of period			$	131					$	12,720					$	(9,923)					$	2,797					$	414					$	15,708					$	(11,725)					$	3,983
Weighted-average age of policyholders (years)			64.0						72.8						72.3						N/A						63.0						72.2						71.8						N/A
Net amount at risk			$	3,165					$	22,195					$	11,821					N/A						$	3,181					$	22,421					$	11,946					N/A

_____________

(1)Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims.

(2)Changes are recorded in OCI except for reinsurer credit which is reflected in the income statement.

(3)Purchased MRB is the impact of non-affiliated reinsurance.

The following table reconciles market risk benefits by the amounts in an asset position and amounts in a liability position to the market risk amounts in the consolidated balance sheet as of June 30, 2023 and December 31, 2022.

			June 30, 2023																														December 31, 2022
			Direct Asset						Direct Liability						Net Direct MRB						Purchased MRB						Total						Direct Asset						Direct Liability						Net Direct MRB						Purchased MRB						Total
			(in millions)
Individual Retirement
GMxB Core			$	(599)					$	729					$	131					$	—					$	131					$	(387)					$	917					$	530					$	—					$	530
Legacy Segment
GMxB Legacy			(120)						12,840						12,720						(9,923)						2,797						(51)						14,749						14,699						(10,412)						4,287
Other (1)			(58)						73						14						(8)						6						(52)						100						47						(11)						36
Total			$	(777)					$	13,642					$	12,865					$	(9,931)					$	2,934					$	(490)					$	15,766					$	15,276					$	(10,423)					$	4,853

______________

(1)Other primarily includes Individual EQUI-VEST MRB.

X

- References

No definition available.

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X

- Definition

Tabular disclosure of beginning balance to ending balance for contract or contract feature in long-duration contract issued by insurance entity that both protects contract holder from other-than-nominal capital market risk and exposes insurance entity to other-than-nominal capital market risk.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 55
-Paragraph 29G
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480046/944-40-55-29G

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 7B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480081/944-40-50-7B

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