MARKET RISK BENEFITS

6 Months Ended

Jun. 30, 2023

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.