Market Risk Benefits

9 Months Ended

Sep. 30, 2025

4. Market Risk Benefits

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


	Nine Months Ended September 30,
	2025		2024
	(Dollars in millions)
Balance, beginning of period	$	7,250	$	9,722
Balance, beginning of period, before effect of changes in nonperformance risk	5,236		7,348
Decrements	(124)		(130)
Effect of changes in future expected assumptions	540		(53)
Effect of actual different from expected experience	73		67
Effect of changes in interest rates	532		(307)
Effect of changes in fund returns	(1,475)		(1,490)

Issuances	—		3
Effect of changes in risk margin	(61)		(41)
Aging of the block and other	913		1,139
Balance, end of period, before effect of changes in nonperformance risk	5,634		6,536
Effect of changes in nonperformance risk	1,918		2,298
Balance, end of period	7,552		8,834
Less: Reinsurance recoverable, end of period	14		32
Balance, end of period, net of reinsurance (1)	$	7,538	$	8,802
Weighted-average attained age of contract holder	74.4 years		73.7 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, 2025 and 2024, with the exception of $29 million and $47 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 2025 and 2024 AAR, the Company updated assumptions regarding policyholder behavior, mortality and separate account fund allocations. The impact from changes in assumptions is presented in effect of changes in future expected assumptions in the table above.