Reinsurance

9 Months Ended

Sep. 30, 2022

ReinsuranceThe Company reinsures its business through a diversified group of reinsurers. However, the Company remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. The Company monitors trends in arbitration and any litigation outcomes with its reinsurers. Collectability of reinsurance balances are evaluated by monitoring ratings and evaluating the financial strength of its reinsurers. Large reinsurance recoverable balances with offshore or other non-accredited reinsurers are secured through various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit ("LOC").

Information regarding the effect of reinsurance on the Condensed Consolidated Balance Sheets is as follows as of the periods indicated:


	September 30, 2022
	Direct		Assumed		Ceded		Total, Net of Reinsurance
Assets
Premiums receivable	$	178	$	10	$	(209)	$	(21)
Reinsurance recoverable, net of allowance for credit losses	—		—		13,582		13,582
Total	$	178	$	10	$	13,373	$	13,561

Liabilities
Future policy benefits and contract owner account balances	$	52,445	$	1,056	$	—	$	53,501
Liability for funds withheld under reinsurance agreements	102		—		—		102
Total	$	52,547	$	1,056	$	—	$	53,603



	December 31, 2021
	Direct		Assumed		Ceded		Total, Net of Reinsurance
Assets
Premiums receivable	$	169	$	8	$	(213)	$	(36)
Reinsurance recoverable	—		—		13,671		13,671
Total	$	169	$	8	$	13,458	$	13,635

Liabilities
Future policy benefits and contract owner account balances	$	51,648	$	1,110	$	—	$	52,758
Liability for funds withheld under reinsurance agreements	203		—		—		203
Total	$	51,851	$	1,110	$	—	$	52,961

Information regarding the effect of reinsurance on the Condensed Consolidated Statements of Operations is as follows for the periods indicated:


	Three Months Ended September 30,
	2022		2021
Premiums:
Direct premiums	$	815	$	756
Reinsurance assumed	6		8
Reinsurance ceded	(214)		(191)
Net premiums	$	607	$	573

Fee income:
Gross fee income	$	533	$	587
Reinsurance assumed	5		4
Reinsurance ceded	(103)		(104)
Net fee income	$	435	$	487

Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders	$	1,474	$	1,227
Reinsurance assumed	13		16
Reinsurance ceded	(937)		(529)
Net interest credited and other benefits to contract owners / policyholders	$	550	$	714


	Nine Months Ended September 30,
	2022		2021
Premiums:
Direct premiums	$	2,443	$	2,288
Reinsurance assumed	19		22
Reinsurance ceded	(647)		(6,208)
Net premiums	$	1,815	$	(3,898)

Fee income:
Gross fee income	$	1,576	$	1,684
Reinsurance assumed	14		13
Reinsurance ceded	(311)		(316)
Net fee income	$	1,279	$	1,381

Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders	$	3,428	$	4,231
Reinsurance assumed	35		57
Reinsurance ceded	(1,605)		(7,078)
Net interest credited and other benefits to contract owners / policyholders	$	1,858	$	(2,790)

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. As of September 30, 2022 and December 31, 2021, the Company has a deposit asset of $1.6 billion which is reported in Other assets on the accompanying Condensed Consolidated Balance Sheets.