INSURANCE LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2020

The amounts for the ceded contracts are reflected in the consolidated balance sheets in Amounts due from reinsurers.

Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature

For the Three and Six Months Ended June 30, 2020 and 2019


	GMDB										GMIB
	Direct		Assumed		Ceded		Direct		Assumed		Ceded
	(in millions)
Balance at April 1, 2020	$	5,052	$	72	$	(111)	$	6,299	$	219	$	(2,823)
Paid guarantee benefits	(140)		(4)		4		(103)		49		17
Other changes in reserve	103		2		2		(43)		(36)		(125)
Balance at June 30, 2020	$	5,015	$	70	$	(105)	$	6,153	$	232	$	(2,931)

Balance at April 1, 2019	$	4,670	$	77	$	(109)	$	3,742	$	182	$	(1,740)
Paid guarantee benefits	(108)		(5)		4		(56)		11		14
Other changes in reserve	152		4		(1)		75		(1)		(170)
Balance at June 30, 2019	$	4,714	$	76	$	(106)	$	3,761	$	192	$	(1,896)


	GMDB										GMIB
	Direct		Assumed		Ceded		Direct		Assumed		Ceded
	(in millions)
Balance at January 1, 2020	$	4,784	$	76	$	(105)	$	4,691	$	187	$	(2,139)
Paid guarantee benefits	(251)		(10)		9		(177)		48		37
Other changes in reserve	482		4		(9)		1,639		(3)		(829)
Balance at June 30, 2020	$	5,015	$	70	$	(105)	$	6,153	$	232	$	(2,931)

Balance at January 1, 2019	$	4,659	$	82	$	(113)	$	3,743	$	184	$	(1,732)
Paid guarantee benefits	(226)		(11)		8		(112)		10		35
Other changes in reserve	281		5		(1)		130		(2)		(199)
Balance at June 30, 2019	$	4,714	$	76	$	(106)	$	3,761	$	192	$	(1,896)

Schedule of Net Amount of Risk by Product and Guarantee

Direct Variable Annuity Contracts with GMDB and GMIB Features

at June 30, 2020


	Guarantee Type
	Return of Premium			Ratchet			Roll-Up			Combo			Total
	(in millions, except age and interest rate)
Variable annuity contracts with GMDB features
Account Values invested in:
General Account	$	14,904		$	90		$	57		$	174		$	15,225
Separate Accounts	46,313			8,576			2,914			30,252			88,055
Total Account Values	$	61,217		$	8,666		$	2,971		$	30,426		$	103,280

Net Amount at Risk, gross	$	167		$	207		$	1,990		$	20,398		$	22,762
Net Amount at Risk, net of amounts reinsured	$	167		$	201		$	1,414		$	20,398		$	22,180

Average attained age of policyholders (in years)	51.2			68.0			74.6			69.8			55.1
Percentage of policyholders over age 70	10.9		%	47.1		%	69.3		%	52.4		%	19.8		%
Range of contractually specified interest rates	N/A			N/A			3% - 6%			3% - 6.5%			3% - 6.5%

Variable annuity contracts with GMIB features
Account Values invested in:
General Account	$	—		$	—		$	18		$	223		$	241
Separate Accounts	—			—			22,463			32,329			54,792
Total Account Values	$	—		$	—		$	22,481		$	32,552		$	55,033

Net Amount at Risk, gross	$	—		$	—		$	1,189		$	15,384		$	16,573
Net Amount at Risk, net of amounts reinsured	$	—		$	—		$	376		$	13,872		$	14,248

Average attained age of policyholders (in years)	N/A			N/A			63.8			69.8			67.6
Weighted average years remaining until annuitization	N/A			N/A			5.9			0.7			2.6
Range of contractually specified interest rates	N/A			N/A			3% - 6%			3% - 6.5%			3% - 6.5%

Assumed Variable Annuity Contracts with GMDB and GMIB Features

at June 30, 2020


	Guarantee Type
	Return of Premium			Ratchet			Roll-Up			Combo			Total
	(in millions, except age and interest rates)
Variable annuity contracts with GMDB features
Reinsured Account Values	$	856		$	4,761		$	244		$	1,041		$	6,902
Net Amount at Risk assumed	$	6		$	281		$	16		$	169		$	472

Average attained age of policyholders (in years)	68			73			78			76			73
Percentage of policyholders over age 70	46.0		%	65.0		%	80.0		%	76.0		%	65.0		%
Range of contractually specified interest rates (1)	N/A			N/A			3%-10%			5%-10%			3%-10%


	Guarantee Type
	Return of Premium			Ratchet			Roll-Up			Combo			Total
	(in millions, except age and interest rates)

Variable annuity contracts with GMIB features
Reinsured Account Values	$	830		$	40		$	211		$	1,054		$	2,135
Net Amount at Risk assumed	$	1		$	—		$	32		$	336		$	369

Average attained age of policyholders (in years)	72			74			72			70			71
Percentage of policyholders over age 70	65.0		%	62.0		%	63.0		%	54.0		%	59.0		%
Range of contractually specified interest rates	N/A			N/A			3.3%-6.5%			6%-6%			3.3%-6.5%

______________

(1)In general, for policies with the highest contractual interest rate shown (10%), the rate applied only for the first 10 years after issue, which has now elapsed.

Schedule of Fair Value of Separate Accounts by Major Category of Investment

Investment in Variable Insurance Trust Mutual Funds


	June 30, 2020						December 31, 2019
Mutual Fund Type	GMDB		GMIB		GMDB		GMIB
	(in millions)
Equity	$	39,126	$	16,011	$	42,489	$	17,941
Fixed income	5,297		2,682		5,263		2,699
Balanced	42,696		35,835		45,871		38,445
Other	936		264		865		263
Total	$	88,055	$	54,792	$	94,488	$	59,348

No Lapse Guarantee Liabilities

The change in the NLG liabilities, reflected in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below.


	Direct Liability (1)
	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
	(in millions)
Beginning balance (2)	$	925	$	825	$	897	$	812
Paid guarantee benefits	(13)		(3)		(26)		(10)
Other changes in reserves	35		21		76		41
Ending balance	$	947	$	843	$	947	$	843

______________

(1)There were no amounts of reinsurance ceded in any period presented.

(2)The beginning balance for six months ended June 30, 2020 was reduced by $22 million to reflect the balance transferred to Assets held-for-sale at December 31, 2019.