MARKET RISK BENEFITS

9 Months Ended

Sep. 30, 2023

MARKET RISK BENEFITSThe following table presents the balances and changes to the balances for market risk benefits for the GMxB benefits on deferred variable annuities


	Three Months Ended September 30, 2023
	GMxB Core		Purchased MRB Core (3)		Net GMxB Core		GMxB Legacy		Purchased MRB Legacy(3)		Net GMxB Legacy
	(Dollars in millions)
Balance, beginning of period	$	155	$	(1,071)	$	(916)	$	12,720	$	(16,223)	$	(3,503)
Beginning balance before changes in the instrument specific credit risk	370		(1,072)		(702)		14,142		(16,128)		(1,986)
Model changes and effect of changes in cash flow assumptions	12		(45)		(33)		(11)		8		(3)
Actual market movement effect	193		(197)		(4)		719		(592)		127
Interest accrual	22		(12)		10		212		(227)		(15)
Attributed fees accrued (1)	96		(87)		9		212		(153)		59
Benefit payments	(11)		10		(1)		(321)		316		(5)
Actual policyholder behavior different from expected behavior	5		(5)		—		(14)		3		(11)
Changes in future economic assumptions	(385)		332		(53)		(2,609)		2,397		(212)
Issuances	—		—		—		—		—		—
Ending balance before changes in the instrument-specific credit risk	302		(1,076)		(774)		12,330		(14,376)		(2,046)
Changes in the instrument-specific credit risk (2)	35		32		67		(349)		(38)		(387)
Balance, end of period	$	337	$	(1,044)	$	(707)	$	11,981	$	(14,414)	$	(2,433)

Weighted-average age of policyholders (years)	64.3		64.6		N/A		72.9		73.2		N/A
Net amount at risk	$	3,586	$	3,475	N/A		$	23,123	$	22,632	N/A

_______________

(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 and affiliated reinsurance with Equitable America. Effective April 1, 2023, the Company recorded $8.2 billion of Purchased MRB as result of the Reinsurance Treaty. See Note 1 and Note 17 for additional information.


	Three Months Ended September 30, 2022
	GMxB Core		Purchased MRB Core		Net GMxB Core		GMxB Legacy		Purchased MRB Legacy		Net GMxB Legacy
	(Dollars in millions)
Balance, beginning of period	$	424	$	—	$	424	$	15,708	$	(11,845)	$	3,863
Beginning balance before changes in the instrument specific credit risk	781		—		781		17,735		(11,744)		5,991
Model changes and effect of changes in cash flow assumptions	(7)		—		(7)		404		(168)		236
Actual market movement effect	276		—		276		755		(268)		487
Interest accrual	12		—		12		224		(170)		54
Attributed fees accrued (1)	97		—		97		221		(70)		151
Benefit payments	(11)		—		(11)		(316)		184		(132)
Actual policyholder behavior different from expected behavior	10		—		10		42		(32)		10
Changes in future economic assumptions	(440)		—		(440)		(2,628)		1,551		(1,077)
Issuances	—		—		—		—		—		—


	Three Months Ended September 30, 2022
	GMxB Core		Purchased MRB Core		Net GMxB Core		GMxB Legacy		Purchased MRB Legacy		Net GMxB Legacy
	(Dollars in millions)
Ending balance before changes in the instrument-specific credit risk	718		—		718		16,437		(10,717)		5,720
Changes in the instrument-specific credit risk (2)	(307)		—		(307)		(1,838)		(95)		(1,933)
Balance, end of period	$	411	$	—	$	411	$	14,599	$	(10,812)	$	3,787

Weighted-average age of policyholders (years)	63.3		N/A		N/A		72.3		67.5		N/A
Net amount at risk	$	3,771	N/A		N/A		$	23,933	$	11,589	N/A

_______________

(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 and affiliated reinsurance.


	Nine Months Ended September 30, 2023
	GMxB Core		Purchased MRB Core		Net GMxB Core		GMxB Legacy		Purchased MRB Legacy (4)		Net GMxB Legacy
	(Dollars in millions)
Balance, beginning of period	$	539	$	—	$	539	$	14,699	$	(10,492)	$	4,207
Beginning balance before changes in the instrument specific credit risk	538		—		538		15,314		(10,438)		4,876
Model changes and effect of changes in cash flow assumptions	12		(45)		(33)		(11)		8		(3)
Actual market movement effect	(129)		(92)		(221)		(662)		386		(276)
Interest accrual	59		(21)		38		604		(585)		19
Attributed fees accrued (1)	300		(186)		114		630		(391)		239
Benefit payments	(35)		22		(13)		(1,008)		839		(169)
Actual policyholder behavior different from expected behavior	13		(9)		4		1		(17)		(16)
Changes in future economic assumptions	(455)		549		94		(2,538)		2,687		149
Issuances (2)	(1)		(1,294)		(1,295)		—		(6,865)		(6,865)
Ending balance before changes in the instrument-specific credit risk	302		(1,076)		(774)		12,330		(14,376)		(2,046)
Changes in the instrument-specific credit risk (3)	35		32		67		(349)		(38)		(387)
Balance, end of period	$	337	$	(1,044)	$	(707)	$	11,981	$	(14,414)	$	(2,433)

Weighted-average age of policyholders (years)	64.3		64.6		N/A		72.9		73.2		N/A
Net amount at risk	$	3,586	$	3,475	N/A		$	23,123	$	22,632	N/A

_______________

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

(2)Issuances are related to the Reinsurance Treaty with Equitable America. See Note 1 of the Notes to these Consolidated Financial Statements.

(3)Changes are recorded in OCI.

(4)Purchased MRB is the impact of non-affiliated reinsurance and affiliated reinsurance with Equitable America. Effective April 1, 2023, the Company recorded $8.2 billion of Purchased MRB as result of the Reinsurance Treaty. See Note 1 and Note 17 for additional information.


	Nine Months Ended September 30, 2022
	GMxB Core		Purchased MRB Core		Net GMxB Core		GMxB Legacy		Purchased MRB Legacy (3)		Net GMxB Legacy
	(Dollars in millions)
Balance, beginning of period	$	1,061	$	—	$	1,061	$	20,236	$	(14,293)	$	5,943
Beginning balance before changes in the instrument specific credit risk	666		—		666		19,719		(14,287)		5,432
Model changes and effect of changes in cash flow assumptions	(7)		—		(7)		317		(139)		178
Actual market movement effect	1,264		—		1,264		4,414		(1,732)		2,682
Interest accrual	29		—		29		507		(336)		171
Attributed fees accrued (1)	296		—		296		659		(218)		441
Benefit payments	(24)		—		(24)		(849)		472		(377)
Actual policyholder behavior different from expected behavior	14		—		14		101		(73)		28
Changes in future economic assumptions	(1,517)		—		(1,517)		(8,431)		5,596		(2,835)
Issuances	(3)		—		(3)		—		—		—
Ending balance before changes in the instrument-specific credit risk	718		—		718		16,437		(10,717)		5,720
Changes in the instrument-specific credit risk (2)	(307)		—		(307)		(1,838)		(95)		(1,933)
Balance, end of period	$	411	$	—	$	411	$	14,599	$	(10,812)	$	3,787

Weighted-average age of policyholders (years)	63.3		N/A		N/A		72.3		67.5		N/A
Net amount at risk	$	3,771	N/A		N/A		$	23,933	$	11,589	N/A

_______________

(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 benefit amounts in the consolidated balance sheets:


	September 30, 2023										December 31, 2022
	MRB Asset		MRB Liability		Net MRB		Purchased MRB		Total		MRB Asset		MRB Liability		Net MRB		Purchased MRB		Total
	(in millions)
GMxB Core	$	(492)	$	829	$	337	$	(1,044)	$	(707)	$	(375)	$	914	$	539	$	—	$	539
GMxB Legacy	(129)		12,110		11,981		(14,414)		(2,433)		(51)		14,749		14,698		(10,493)		4,205
Other (1)	(56)		56		—		(32)		(32)		(52)		88		36		3		39
Total	$	(677)	$	12,995	$	12,318	$	(15,490)	$	(3,172)	$	(478)	$	15,751	$	15,273	$	(10,490)	$	4,783

______________

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