Market Risk Benefits

9 Months Ended

Sep. 30, 2024

Insurance [Abstract]

Market Risk Benefits

4. Market Risk Benefits

Information regarding MRB assets and liabilities associated with variable annuities was as follows:

	Nine Months Ended September 30,
	2024		2023
	(Dollars in millions)
Balance, beginning of period	$	9,722	$	9,997
Balance, beginning of period, before effect of changes in nonperformance risk	7,348		8,253
Decrements	(130)		(114)
Effect of changes in future expected assumptions	(53)		259
Effect of actual different from expected experience	67		178
Effect of changes in interest rates	(307)		(2,360)
Effect of changes in fund returns	(1,490)		(669)
Issuances	3		(9)
Effect of changes in risk margin	(41)		(52)
Aging of the block and other	1,139		1,022
Balance, end of period, before effect of changes in nonperformance risk	6,536		6,508
Effect of changes in nonperformance risk	2,298		1,690
Balance, end of period	8,834		8,198
Less: Reinsurance recoverable, end of period	32		35
Balance, end of period, net of reinsurance (1)	$	8,802	$	8,163
Weighted-average attained age of contract holder	73.7 years		72.7 years

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(1)Amounts represent the sum of MRB assets and MRB liabilities presented on the consolidated balance sheets at September 30, 2024 and 2023, with the exception of $47 million and ($7) million, respectively, of index-linked annuities not included in this table.

Market conditions, including, but not limited to, changes in interest rates, equity indices, market volatility and variations in actuarial assumptions, including policyholder behavior, mortality and risk margins related to non-capital markets inputs, as well as changes in nonperformance risk, may result in significant fluctuations in the estimated fair value of the guarantees. As part of the 2024 AAR, the Company updated assumptions regarding policyholder behavior, mortality and separate account fund allocations. As part of the 2023 AAR, the Company updated assumptions regarding policyholder behavior, mortality, separate account fund allocations and volatility. The impact from changes in assumptions is presented in effect of changes in future expected assumptions in the table above.