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REINSURANCE
 12 Months Ended
Dec. 31, 2024
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,
202420232022
(in millions)
Direct charges and fee income$3,230 $3,093 $3,145 
Reinsurance assumed— 3 — 
Reinsurance ceded(735)(716)(691)
Policy charges and fee income$2,495 $2,380 $2,454 
Direct premiums$1,245 $1,175 $1,042 
Reinsurance assumed164 174 180 
Reinsurance ceded(247)(245)(228)
Premiums$1,162 $1,104 $994 
Direct policyholders’ benefits$3,285 $3,315 $3,262 
Reinsurance assumed147 157 179 
Reinsurance ceded(736)(718)(725)
Policyholders’ benefits$2,696 $2,754 $2,716 
Direct interest credited to policyholders’ account balances$2,583 $2,174 $1,440 
Reinsurance ceded(84)(91)(30)
Interest credited to policyholders’ account balances$2,499 $2,083 $1,410 
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, Equitable Financial ceded to First Allmerica Financial Life Insurance Company, a wholly owned subsidiary of Global Atlantic Financial Group, 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:
December 31,
20242023
(in millions)
Ceded Reinsurance:
Estimated net fair values of purchased market risk benefits (1)
$7,376 $9,427 
Third-party reinsurance recoverables related to insurance contracts8,044 8,352 
Top reinsurers:
First Allmerica-GAF3,245 3,606 
Zurich Life Insurance Company, Ltd.2,444 1,326 
RGA Reinsurance Company1,205 1,228 
Ceded group health reserves53 56 
Amount due to reinsurers1,407 1,450 
Top reinsurers:
RGA Reinsurance Company2,187 1,151 
First Allmerica-GAF77 73 
Protective Life Insurance Company106 99 
Assumed Reinsurance:
Reinsurance assumed reserves$647 $731 
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(1)The estimated fair values of purchased MRB risks decreased $(2.1) billion and $(996) million for the years ended December 31, 2024 and 2023, respectively.