MARKET RISK BENEFITS (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Market Risk Benefit, Activity

The following table summarizes the balance of and changes in the net liability position of market risk benefits on January 1, 2021 resulting from the adoption of ASU 2018-12:


	GMxB Legacy		GMxB Core		Purchased MRB		Total
	(in millions)
Balance, December 31, 2020	$	19,891	$	2,206	$	(2,943)	$	19,154
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income	(70)		(4)		—		(74)
Adjustments for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date	461		505		5		971
Adjustments for the remaining difference (exclusive of the instrument specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurement for the MRB	4,122		(563)		(194)		3,365
Balance, January 1, 2021 (1)	$	24,404	$	2,144	$	(3,132)	$	23,416

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(1)MRB transition table not inclusive of the following transition adjustments to retained earnings and AOCI including EQUI-VEST of $43 million, SCS of $21 million and Group Retirement EQUI-VEST of $(20) million.

The following table presents the balances and changes to the balances for the market risk benefits for the GMxB benefits on deferred variable annuities for the three months ended and as of March 31, 2023 and 2022.


	March 31, 2023								March 31, 2022
	GMxB Core		GMxB Legacy		Purchased MRB (3)		Net Legacy		GMxB Core		GMxB Legacy		Purchased MRB (3)		Net Legacy
			( in millions)
Balance, beginning of the period (“BOP”)	$	539	$	14,699	$	(10,493)	$	4,206	$	1,061	$	20,235	$	(14,293)	$	5,942
Balance BOP before changes in the instrument specific credit risk	538		15,314		(10,439)		4,875		666		19,718		(14,287)		5,431
Model changes and effect of changes in cash flow assumptions	—		—		—		—		—		(88)		29		(59)
Actual market movement effect	(206)		(744)		393		(351)		324		1,098		(414)		684
Interest accrual	18		197		(155)		42		5		104		(62)		42
Attributed fees accrued (1)	94		210		(83)		126		92		219		(86)		133
Benefit payments	(12)		(342)		185		(157)		(5)		(251)		136		(116)
Actual policyholder behavior different from expected behavior	5		21		(17)		4		—		33		(14)		18
Changes in future economic assumptions	123		943		(532)		412		(535)		(2,934)		2,083		(851)
Issuances	—		—		—		—		(3)		—		—		—
Balance EOP before changes in the instrument-specific credit risk	560		15,599		(10,648)		4,952		544		17,899		(12,616)		5,283
Changes in the instrument-specific credit risk (2)	(227)		(1,517)		(98)		(1,616)		(37)		(970)		(64)		(1,035)
Balance, end of the period (“EOP”)	$	333	$	14,082	$	(10,746)	$	3,336	$	507	$	16,929	$	(12,680)	$	4,248

Weighted-average age of policyholders (years)	63.8		72.8		67.7		N/A		62.8		72.2		67.1		N/A
Net amount at risk	$	3,278	$	21,472	$	10,036	N/A		$	1,785	$	17,987	$	7,655	N/A

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(1) Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims.

(2) Changes are recorded in OCI.

(3) Purchased MRB is the impact of non-affiliated reinsurance.

The following table reconciles market risk benefits by the amounts in an asset position and amounts in a liability position to the market risk amounts in the consolidated balance sheet as of March 31, 2023 and December 31, 2022.


	March 31, 2023										December 31, 2022
	Direct Asset		Direct Liability		Net Direct MRB		Purchased MRB		Total		Direct Asset		Direct Liability		Net Direct MRB		Purchased MRB		Total
	(in millions)

GMxB Legacy	$	(74)	$	14,156	$	14,082	$	(10,746)	$	3,336	$	(51)	$	14,749	$	14,698	$	(10,493)	$	4,205
GMxB Core	(480)		813		333		—		333		(375)		914		539		—		539
Other (1)	(58)		78		20		3		23		(52)		88		36		3		39
Total	$	(612)	$	15,047	$	14,435	$	(10,743)	$	3,692	$	(478)	$	15,751	$	15,273	$	(10,490)	$	4,783

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(1) Other primarily includes Individual EQUI-VEST MRB.