As discussed in Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2021 Annual Report, the Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMABs”), the non-life contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”) and certain non-life contingent portions of GMIBs are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7.

The Company also issues other annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit.

Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at:


	June 30, 2022						December 31, 2021
	In the Event of Death			At Annuitization			In the Event of Death			At Annuitization
	(Dollars in millions)
Annuity Contracts:
Variable Annuity Guarantees:
Total account value (1), (2), (3)	$	49,087		$	17,946		$	62,281		$	23,121
Separate account value (1)	$	31,724		$	16,516		$	42,043		$	21,508
Net amount at risk (2)	$	4,878	(4)	$	616	(5)	$	1,490	(4)	$	500	(5)
Average attained age of contractholders	69 years			68 years			68 years			66 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A			$	4,150		N/A			$	5,002
Net amount at risk	N/A			$	188	(6)	N/A			$	196	(6)
Average attained age of contractholders	N/A			57 years			N/A			56 years


	June 30, 2022				December 31, 2021
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	11,889	$	2,633	$	13,678	$	2,694
Net amount at risk (7)	$	76,788	$	12,211	$	78,762	$	12,657
Average attained age of policyholders	55 years		66 years		55 years		66 years

(1)The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.

(2)Includes amounts, which are not reported on the interim condensed consolidated balance sheets, from assumed variable annuity guarantees from the Company’s former operating joint venture in Japan.

(4)Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(5)Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.

(6)Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.

(7)Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.


	Six Months Ended June 30,
	2022		2021
	(In millions)
Balance, beginning of period	$	20,013	$	18,591
Less: Reinsurance recoverables	3,121		2,417
Net balance, beginning of period	16,892		16,174
Incurred related to:
Current period	13,265		13,640
Prior periods (1)	683		802
Total incurred	13,948		14,442
Paid related to:
Current period	(8,347)		(8,806)
Prior periods	(5,241)		(5,408)
Total paid	(13,588)		(14,214)
Reclassified to liabilities held-for-sale (2)	—		(59)
Dispositions	—		(53)
Net balance, end of period	17,252		16,290
Add: Reinsurance recoverables	3,012		2,883
Balance, end of period (included in future policy benefits and other policy-related balances)	$	20,264	$	19,173

(1)The six months ended June 30, 2022 and 2021 include incurred claim activity and claim adjustment expenses associated with prior periods but reported in the respective current period, which contain impacts related to the COVID-19 pandemic, partially offset by additional premiums recorded for experience-rated contracts that are not reflected in the table above.