Related Party Transactions

9 Months Ended

Sep. 30, 2023

Related Party Transactions [Abstract]

Related Party Transactions

13. Related Party TransactionsThe Company has related party debt and equity transactions (see Notes 9 and 10). Other material arrangements between the Company and its related parties not disclosed elsewhere are as follows:

Reinsurance Agreements

The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by related parties. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth.

Information regarding the significant effects of assumed reinsurance with New England Life Insurance Company (“NELICO”), an affiliate, included on the interim condensed consolidated statements of operations and comprehensive income (loss) was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(In millions)
Premiums	$	2	$	2	$	5	$	2
Universal life and investment-type product policy fees	$	(1)	$	—	$	(1)	$	(1)
Other revenues	$	—	$	—	$	1	$	1
Policyholder benefits and claims	$	3	$	2	$	35	$	16
Change in market risk benefits	$	(58)	$	(44)	$	(116)	$	(144)
Other expenses	$	1	$	(1)	$	—	$	(4)

Information regarding the significant effects of assumed reinsurance with NELICO included on the interim condensed consolidated balance sheets was as follows at:

	September 30, 2023		December 31, 2022
	(In millions)
Assets
Premiums, reinsurance and other receivables (net of allowance for credit losses)	$	29	$	29
Liabilities
Future policy benefits	$	45	$	31
Market risk benefit liabilities	$	308	$	428
Other policy-related balances	$	13	$	11
Other liabilities	$	(4)	$	11

Shared Services and Overhead Allocations

The Company has entered into various agreements with affiliates regarding the provision of certain services, which include, but are not limited to, treasury, financial planning and analysis, legal, human resources, tax planning, internal audit, financial reporting and information technology. Revenues received from an affiliate related to these agreements, recorded in universal life and investment-type product policy fees, were $45 million and $133 million for the three months and nine months ended September 30, 2023, respectively, and $47 million and $149 million for the three months and nine months ended September 30, 2022, respectively. Costs incurred under these arrangements were $227 million and $681 million for the three months and nine months ended September 30, 2023, respectively, and $246 million and $671 million for the three months and nine months ended September 30, 2022, respectively, and were recorded in other expenses.

The Company had net receivables from/(payables to) affiliates, related to the items discussed above, of ($167) million and ($188) million at September 30, 2023 and December 31, 2022, respectively.

Broker-Dealer Transactions

The related party expense for the Company was commissions paid on the sale of variable products and passed through to the broker-dealer affiliate. The related party revenue for the Company was fee income passed through the broker-dealer affiliate from trusts and mutual funds whose shares serve as investment options of policyholders of the Company. Fee income received related to these transactions and recorded in other revenues was $43 million and $128 million for the three months and nine months ended September 30, 2023, respectively, and $44 million and $143 million for the three months and nine months ended September 30, 2022, respectively. Commission expenses incurred related to these transactions and recorded in other expenses was $216 million and $660 million for the three months and nine months ended September 30, 2023, respectively, and $240 million and $696 million for the three months and nine months ended September 30, 2022, respectively. The Company also had related party fee income receivables of $14 million at both September 30, 2023 and December 31, 2022.