Reinsurance (Tables)

3 Months Ended

Mar. 31, 2022

Reinsurance Recoverables by Range of External Credit Rating and Collateral Level

The Company's reinsurance recoverables as of March 31, 2022 are presented in the following table by range of external credit rating and collateral level:


(In millions)	Fair value of collateral contractually required to meet or exceed carrying value of recoverable		Collateral provisions exist that may mitigate risk of credit loss (3)		No collateral		Total
Ongoing Operations
A- equivalent and higher current ratings (1)	$	—	$	—	$	176	$	176
BBB- to BBB+ equivalent current credit ratings (1)	—		—		61		61
Not rated	116		—		43		159
Total recoverables related to ongoing operations (2)	116		—		280		396
Acquisition, disposition or run-off activities
A- equivalent and higher current ratings (1)
Lincoln National Life and Lincoln Life & Annuity of New York	—		2,908		—		2,908
Berkshire Hathaway Life Insurance Company of Nebraska	268		376		—		644
Prudential Retirement Insurance and Annuity	149		—		—		149
Prudential Insurance Company of America	404		—		—		404
Life Insurance Company of North America	—		437		—		437
Other	219		16		16		251

Not rated	—		13		3		16
Total recoverables related to acquisition, disposition or run-off activities	1,040		3,750		19		4,809
Total	$	1,156	$	3,750	$	299	$	5,205
Allowance for uncollectible reinsurance							(30)
Total reinsurance recoverables (2)							$	5,175

(1) Certified by a Nationally Recognized Statistical Rating Organization ("NRSRO").

(2) Includes $143 million of current reinsurance recoverables that are reported in Other current assets and $95 million of recoverables classified as Assets of businesses held for sale as of March 31, 2022.

(3) Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level.

Account Value, Net Amount at Risk and the Number of Contractholders for Guarantees Assumed in the Event of Death

The following table presents the account value, net amount at risk and the number of contractholders for guarantees assumed by the Company in the event of death. The net amount at risk is the amount that the Company would have to pay if all contractholders died as of the specified date. The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded.


(Dollars in millions, excludes impact of reinsurance ceded)	March 31, 2022		December 31, 2021
Account value	$	9,057	$	9,795
Net amount at risk	$	1,508	$	1,392

Number of contractholders (estimated)	165,000		170,000

Schedule of Derivative Assets at Fair Value

GMIB liabilities totaling $514 million as of March 31, 2022 and $572 million as of December 31, 2021 are classified as Level 3 because fair value inputs are largely unobservable. The GMIB liabilities reflect the Company's credit risk, while the reinsurance recoverable reflects the credit risk of the reinsurers. There were three reinsurers covering 100% of the GMIB exposures as of March 31, 2022 and December 31, 2021 as follows:


(In millions)
Line of Business	Reinsurer	March 31, 2022		December 31, 2021		Collateral and Other Terms at March 31, 2022
GMIB	Berkshire	$	257	$	283	100% were secured by assets in a trust.
	Sun Life Assurance Company of Canada	151		167
	Liberty Re (Bermuda) Ltd.	138		151		100% were secured by assets in a trust.
Total GMIB recoverables reported in Other current assets and Other assets		$	546	$	601

All reinsurers are rated A- equivalent and higher by an NRSRO.