MRBs

12 Months Ended

Dec. 31, 2022

10. MRBs

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



	As of December 31, 2022							As of December 31, 2021
					Net							Net
					(Assets)							(Assets)
	Assets		Liabilities		Liabilities			Assets		Liabilities		Liabilities
Variable Annuities	$	2,666	$	2,004	$	(662	)	$	1,784	$	4,182	$	2,398
Fixed Annuities		117		72		(45	)		91		205		114
Retirement Plan Services		24		2		(22	)		13		12		(1	)
Total MRBs	$	2,807	$	2,078	$	(729	)	$	1,888	$	4,399	$	2,511

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



	As of or For the Year Ended									As of or For the Year Ended
	December 31, 2022									December 31, 2021
							Retirement									Retirement
	Variable			Fixed			Plan			Variable			Fixed			Plan
	Annuities			Annuities			Services			Annuities			Annuities			Services
Balance as of beginning-of-year	$	2,398		$	114		$	(1	)	$	5,207		$	118		$	9
Balance as of beginning-of-year, before the effect
of changes in non-performance risk		4,823			158			12			8,799			170			21
Issuances		12			-			(3	)		29			-			1
Attributed fees collected		1,571			32			6			1,667			32			5
Benefit payments		(63	)		-			-			(24	)		-			-
Effect of changes in interest rates		(9,346	)		(232	)		(55	)		(2,935	)		(57	)		(8	)
Effect of changes in equity markets		4,293			12			18			(2,837	)		(5	)		(12	)
Effect of changes in equity index volatility		(225	)		14			(1	)		(6	)		(2	)		(1	)
In-force updates and other changes in MRBs ⁽¹⁾		661			10			3			(134	)		8			5
Effect of changes in future expected
policyholder behavior		(158	)		1			-			293			12			1
Effect of changes in other future expected
assumptions ⁽²⁾		(57	)		-			-			(29	)		-			-
Balance as of end-of-year, before the effect of
changes in non-performance risk		1,511			(5	)		(20	)		4,823			158			12
Effect of cumulative changes in
non-performance risk		(2,173	)		(40	)		(2	)		(2,425	)		(44	)		(13	)
Balance as of end-of-year		(662	)		(45	)		(22	)		2,398			114			(1	)
Less: ceded MRB assets (liabilities)		(193	)		-			-			78			-			-
Balance as of end-of-year, net of reinsurance	$	(469	)	$	(45	)	$	(22	)	$	2,320		$	114		$	(1	)

Weighted-average age of policyholders (years)		71			68			63			71			67			62
Net amount at risk ⁽³⁾		7,974			171			15			906			122			3

⁽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.

For the year ended December 31, 2022, Variable Annuities had a favorable impact from updates to policyholder benefit utilization behavior and fund mapping and volatility assumptions.

For the year ended December 31, 2021, Variable Annuities had an unfavorable impact from updates to policyholder benefit utilization behavior assumptions, partially offset by favorable updates to fund mapping and volatility assumptions.

For the years ended December 31, 2022 and 2021, Fixed Annuities and Retirement Plan Services did not have any significant assumption updates.

See “MRBs” in Note 1 and Note 15 for details related to our fair value judgments, assumptions, inputs and valuation methodology.