INSURANCE LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2020

GMDB and GMIB Liabilities and Other Policyholder's Liabilities

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		Ceded		Direct		Ceded
	(in millions)
Balance at April 1, 2020	$	5,047	$	(105)	$	6,297	$	(3,305)
Paid guarantee benefits	(140)		4		(103)		17
Other changes in reserve	102		3		(43)		(145)
Balance at June 30, 2020	$	5,009	$	(98)	$	6,151	$	(3,433)

Balance at April 1, 2019	$	4,665	$	(103)	$	3,740	$	(2,009)
Paid guarantee benefits	(108)		5		(56)		14
Other changes in reserve	153		(2)		75		(201)
Balance at June 30, 2019	$	4,710	$	(100)	$	3,759	$	(2,196)


	GMDB						GMIB
	Direct		Ceded		Direct		Ceded
	(in millions)











Balance at January 1, 2020	$	4,779	$	(98)	$	4,688	$	(2,466)
Paid guarantee benefits	(251)		9		(177)		37
Other changes in reserve	481		(9)		1,640		(1,004)
Balance at June 30, 2020	$	5,009	$	(98)	$	6,151	$	(3,433)

Balance at January 1, 2019	$	4,654	$	(107)	$	3,741	$	(1,991)
Paid guarantee benefits	(226)		9		(112)		35
Other changes in reserve	282		(2)		130		(240)
Balance at June 30, 2019	$	4,710	$	(100)	$	3,759	$	(2,196)

Variable Annuity Contracts with GMDB and GMIB Features

Account Values and Net Amount at Risk (“NAR”) for direct variable annuity contracts in force with GMDB and GMIB features as of June 30, 2020 are presented in the following tables by guarantee type. For contracts with the GMDB feature, the NAR in the event of death is the amount by which the GMDB feature exceeds the related Account Values. For contracts with the GMIB feature, the NAR in the event of annuitization is the amount by which the present value of the GMIB benefits exceed the related Account Values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB features may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive.

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%

Investment in Variable Insurance Trust Mutual Funds

The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB features. The investment performance of the assets impacts the related Account Values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive.

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.


	2020										2019
	Direct Liability		Reinsurance Ceded		Net		Direct Liability		Reinsurance Ceded		Net
	(in millions)











Balance at April 1,	$	920	$	(827)	$	93	$	801	$	(744)	$	57
Paid guarantee benefits	(13)		—		(13)		(3)		—		(3)
Other changes in reserves	35		(14)		21		21		(11)		10
Balance at June 30,	$	942	$	(841)	$	101	$	819	$	(755)	$	64

Balance at January 1,	$	893	$	(807)	$	86	$	787	$	(733)	$	54
Paid guarantee benefits	(26)		—		(26)		(10)		—		(10)
Other changes in reserves	75		(34)		41		42		(22)		20
Balance at June 30,	$	942	$	(841)	$	101	$	819	$	(755)	$	64