MRBs (Tables)

12 Months Ended

Dec. 31, 2023

Reconciles of MRBs Assets and Liabilities

The following table reconciles MRBs (in millions) to MRB assets and MRB liabilities on the Consolidated Balance Sheets:


	As of December 31, 2023						As of December 31, 2022
	Assets		Liabilities		Net (Assets) Liabilities		Assets		Liabilities		Net (Assets) Liabilities


Variable Annuities	$	3,763	$	1,583	$	(2,180)	$	2,666	$	2,004	$	(662)
Fixed Annuities	96		128		32		117		72		(45)
Retirement Plan Services	35		5		(30)		24		2		(22)
Total MRBs	$	3,894	$	1,716	$	(2,178)	$	2,807	$	2,078	$	(729)

Summary of Balances of Changes in Net MRB (Assets) Liabilities

The following table summarizes the balances of and changes in net MRB (assets) liabilities (in millions):


	As of or For the Year Ended December 31, 2023						As of or For the Year Ended December 31, 2022
	Variable Annuities		Fixed Annuities		Retirement Plan Services		Variable Annuities		Fixed Annuities		Retirement Plan Services


Balance as of beginning-of-year	$	(662)	$	(45)	$	(22)	$	2,398	$	114	$	(1)
Less: Effect of cumulative changes in
non-performance risk	(2,173)		(40)		(2)		(2,425)		(44)		(13)
Balance as of beginning-of-year, before the effect
of changes in non-performance risk	1,511		(5)		(20)		4,823		158		12
Issuances	8		–		–		12		–		(3)
Attributed fees collected	1,497		32		6		1,571		32		6
Benefit payments	(64)		–		–		(63)		–		–
Effect of changes in interest rates	(110)		(24)		5		(9,346)		(232)		(55)
Effect of changes in equity markets	(3,167)		(12)		(13)		4,293		12		18
Effect of changes in equity index volatility	(593)		9		(3)		(225)		14		(1)
In-force updates and other changes in MRBs (1)	136		5		1		661		10		3
Effect of assumption review:
Effect of changes in future expected
policyholder behavior	(33)		70		–		(158)		1		–
Effect of changes in other future expected
assumptions (2)	(66)		15		(2)		(57)		–		–
Balance as of end-of-year, before the effect of
changes in non-performance risk	(881)		90		(26)		1,511		(5)		(20)
Effect of cumulative changes in
non-performance risk	(1,299)		(58)		(4)		(2,173)		(40)		(2)
Balance as of end-of-year	(2,180)		32		(30)		(662)		(45)		(22)
Less: ceded MRB assets (liabilities)	(238)		–		–		(193)		–		–
Balance as of end-of-year, net of reinsurance	$	(1,942)	$	32	$	(30)	$	(469)	$	(45)	$	(22)

Weighted-average age of policyholders (years)	72		68		63		71		68		63
Net amount at risk (3)	$	3,031	$	203	$	4	$	7,974	$	171	$	15

(1) Consists primarily of changes in MRB assets and liabilities related to differences between separate account fund performance and modeled indices and other changes such as actual to expected policyholder behavior.

(2) Consists primarily of the update of fund mapping, volatility and other capital market assumptions.

(3) Net amount at risk (“NAR”) is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For GLBs, the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit feature exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation.