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Business and Basis of Presentation (Tables)
 6 Months Ended
Jun. 30, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Deferred Policy Acquisition Costs
The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance:
Six Months Ended June 30, 2023
Fixed AnnuitiesVariable AnnuitiesTerm LifeVariable / Universal LifeTotal
(in thousands)
Balance, beginning of period$102,251 $3,736,454 $648,837 $2,442,883 $6,930,425 
Capitalization48,552 117,342 72,216 275,783 513,893 
Amortization expense(9,490)(166,332)(31,084)(59,736)(266,642)
Other(1)0 (393,385)0 0 (393,385)
Balance, end of period$141,313 $3,294,079 $689,969 $2,658,930 $6,784,291 
(1) Other includes the impact of the reinsurance agreement with Ohio National. See Note 11 for additional information.
Six Months Ended June 30, 2022
Fixed AnnuitiesVariable AnnuitiesTerm LifeVariable / Universal LifeTotal
(in thousands)
Balance, beginning of period$84,479 $3,806,733 $577,084 $2,561,011 $7,029,307 
   Capitalization3,202 155,694 66,040 264,141 489,077 
   Amortization expense(6,773)(171,593)(26,020)(51,578)(255,964)
   Other(1)0 0 2 (541,408)(541,406)
Balance, end of period$80,908 $3,790,834 $617,106 $2,232,166 $6,721,014 
(1) Other includes the impact of the reinsurance agreement with Lotus Re.
Liability for Future Policy Benefit (DRL, DRG, Benefit Reserves, DPL, and Additional Insurance Reserves)
The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits.

Six Months Ended June 30, 2023
Present Value of Expected Net Premiums
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, beginning of period$10,911,794 $0 $10,911,794 
Effect of cumulative changes in discount rate assumptions, beginning of period554,896 0 554,896 
Balance at original discount rate, beginning of period11,466,690 0 11,466,690 
Effect of assumption update(790)0 (790)
Effect of actual variances from expected experience and other activity(65,230)(1,257)(66,487)
Adjusted balance, beginning of period11,400,670 (1,257)11,399,413 
Issuances318,867 23,211 342,078 
Net premiums / considerations collected(674,147)(21,954)(696,101)
Interest accrual261,862 0 261,862 
Balance at original discount rate, end of period11,307,252 0 11,307,252 
Effect of cumulative changes in discount rate assumptions, end of period(484,287)0 (484,287)
Balance, end of period$10,822,965 $0 $10,822,965 
Six Months Ended June 30, 2023
Present Value of Expected Future Policy Benefits
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, beginning of period$17,835,251 $204,727 $18,039,978 
Effect of cumulative changes in discount rate assumptions, beginning of period962,034 24,876 986,910 
Balance at original discount rate, beginning of period18,797,285 229,603 19,026,888 
Effect of assumption update(1,044)0 (1,044)
Effect of actual variances from expected experience and other activity(87,110)4,195 (82,915)
Adjusted balance, beginning of period18,709,131 233,798 18,942,929 
Issuances318,867 23,211 342,078 
Interest accrual447,387 4,201 451,588 
Benefit payments(716,919)(14,838)(731,757)
Other adjustments1,558 (33)1,525 
Balance at original discount rate, end of period18,760,024 246,339 19,006,363 
Effect of cumulative changes in discount rate assumptions, end of period(791,413)(26,245)(817,658)
Balance, end of period$17,968,611 $220,094 $18,188,705 
Other, end of period1,941 
Total balance, end of period$18,190,646 

Six Months Ended June 30, 2023
Net Liability for Future Policy Benefits (Benefit Reserves)
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, end of period, post-flooring$7,145,646 $220,094 $7,365,740 
Less: Reinsurance recoverable6,614,071 17,835 6,631,906 
Balance after reinsurance recoverable, end of period, post-flooring$531,575 $202,259 $733,834 

Six Months Ended June 30, 2022
Present Value of Expected Net Premiums
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, beginning of period$12,485,056 $0 $12,485,056 
Effect of cumulative changes in discount rate assumptions, beginning of period(1,826,120)0 (1,826,120)
Balance at original discount rate, beginning of period10,658,936 0 10,658,936 
Effect of assumption update1,295,294 0 1,295,294 
Effect of actual variances from expected experience and other activity(84,412)(78)(84,490)
Adjusted balance, beginning of period11,869,818 (78)11,869,740 
Issuances187,092 17,356 204,448 
Net premiums / considerations collected(657,195)(17,278)(674,473)
Interest accrual257,706 0 257,706 
Balance at original discount rate, end of period11,657,421 0 11,657,421 
Effect of cumulative changes in discount rate assumptions, end of period22,765 0 22,765 
Balance, end of period$11,680,186 $0 $11,680,186 
Six Months Ended June 30, 2022
Present Value of Expected Future Policy Benefits
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, beginning of period$20,937,097 $237,065 $21,174,162 
Effect of cumulative changes in discount rate assumptions, beginning of period(3,607,275)(16,704)(3,623,979)
Balance at original discount rate, beginning of period17,329,822 220,361 17,550,183 
Effect of assumption update1,756,995 0 1,756,995 
Effect of actual variances from expected experience and other activity(167,637)351 (167,286)
Adjusted balance, beginning of period18,919,180 220,712 19,139,892 
Issuances187,092 17,357 204,449 
Interest accrual436,119 3,809 439,928 
Benefit payments(738,715)(13,658)(752,373)
Other adjustments1,781 (285)1,496 
Balance at original discount rate, end of period18,805,457 227,935 19,033,392 
Effect of cumulative changes in discount rate assumptions, end of period144,406 (16,737)127,669 
Balance, end of period$18,949,863 $211,198 $19,161,061 
Other, end of period2,235 
Total balance, end of period$19,163,296 

Six Months Ended June 30, 2022
Net Liability for Future Policy Benefits (Benefit Reserves)
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, end of period, post-flooring$7,269,677 $211,198 $7,480,875 
Less: Reinsurance recoverable6,847,216 16,488 6,863,704 
Balance after reinsurance recoverable, end of period, post-flooring$422,461 $194,710 $617,171 
The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated:
Six Months Ended June 30, 2023
Term LifeFixed Annuities
($ in thousands)
Undiscounted expected future gross premiums$21,948,491 $0 
Discounted expected future gross premiums (at original discount rate)$15,125,847 $0 
Discounted expected future gross premiums (at current discount rate)$14,493,623 $0 
Undiscounted expected future benefits and expenses$29,156,389 $328,414 
Interest accrual$185,524 $4,201 
Gross premiums$900,634 $24,200 
Weighted-average duration of the liability in years (at original discount rate)107
Weighted-average duration of the liability in years (at current discount rate)106
Weighted-average interest rate (at original discount rate)5.20 %3.57 %
Weighted-average interest rate (at current discount rate)5.28 %5.27 %
Six Months Ended June 30, 2022
Term LifeFixed Annuities
($ in thousands)
Undiscounted expected future gross premiums$22,348,506 $0 
Discounted expected future gross premiums (at original discount rate)$15,414,984 $0 
Discounted expected future gross premiums (at current discount rate)$15,442,782 $0 
Undiscounted expected future benefits and expenses$29,470,523 $302,195 
Interest accrual$178,413 $3,809 
Gross premiums$925,202 $19,545 
Weighted-average duration of the liability in years (at original discount rate)117
Weighted-average duration of the liability in years (at current discount rate)106
Weighted-average interest rate (at original discount rate)5.28 %3.44 %
Weighted-average interest rate (at current discount rate)4.63 %4.54 %
The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows:

Six Months Ended June 30,
20232022
Fixed Annuities
(in thousands)
Balance, beginning of period$18,193 $15,765 
Effect of actual variances from expected experience and other activity(5,092)(607)
Adjusted balance, beginning of period13,101 15,158 
Profits deferred2,088 2,173 
Interest accrual294 276 
Amortization(973)(950)
Other adjustments(8)(25)
Balance, end of period14,502 16,632 
Less: Reinsurance recoverable1,558 1,722 
Balance after reinsurance recoverable$12,944 $14,910 

The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated:

Six Months Ended June 30,
20232022
Fixed Annuities
(in thousands)
Revenue(1)$3,691 $(867)
Interest accrual294 276 
(1) Represents the gross premiums collected in changes in deferred profit liability.
The following table shows a rollforward of AIR balances for variable and universal life products for the periods indicated:

Six Months Ended June 30,
20232022
(in thousands)
Balance, including amounts in AOCI, beginning of period, post-flooring$12,664,445 $11,660,527 
Flooring impact and amounts in AOCI1,269,237 (896,930)
Balance, excluding amounts in AOCI, beginning of period, pre-flooring13,933,682 10,763,597 
Effect of assumption update22,910 2,197,592 
Effect of actual variances from expected experience and other activity26,204 (157,782)
Adjusted balance, beginning of period13,982,796 12,803,407 
Assessments collected(1)513,593 446,443 
Interest accrual237,869 203,986 
Benefits paid(151,097)(100,856)
Balance, excluding amounts in AOCI, end of period, pre-flooring14,583,161 13,352,980 
Flooring impact and amounts in AOCI(1,094,298)(859,387)
Balance, including amounts in AOCI, end of period, post-flooring13,488,863 12,493,593 
Less: Reinsurance recoverable13,268,534 12,282,253 
Balance after reinsurance recoverable, including amounts in AOCI, end of period$220,329 $211,340 
(1) Represents the portion of gross assessments required to fund the future policy benefits.
Six Months Ended June 30,
20232022
($ in thousands)
Interest accrual$237,869 $203,986 
Gross assessments$785,370 $627,513 
Weighted-average duration of the liability in years (at original discount rate)2223
Weighted-average interest rate (at original discount rate)3.39 %3.72 %
The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Consolidated Statements of Financial Position as of the periods indicated:

Six Months Ended June 30,
20232022
(in thousands)
Benefit reserves, end of period, post-flooring$7,365,740 $7,480,875 
Deferred profit liability, end of period, post-flooring14,502 16,632 
Additional insurance reserves, including amounts in AOCI, end of period, post-flooring13,488,863 12,493,593 
Subtotal of amounts disclosed above20,869,105 19,991,100 
Other Future policy benefits reserves(1)1,108,889 1,035,166 
Total Future policy benefits$21,977,994 $21,026,266 
(1)Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities.
The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Consolidated Statement of Operations for the periods indicated:

Six Months Ended June 30, 2023
Revenues(1)
Term LifeVariable/ Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$900,634 $0 $24,200 $924,834 
Deferred profit liability0 0 3,691 3,691 
Additional insurance reserves0 785,370 0 785,370 
Total$900,634 $785,370 $27,891 $1,713,895 

Six Months Ended June 30, 2022
Revenues(1)
Term LifeVariable/ Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$925,202 $0 $19,545 $944,747 
Deferred profit liability0 0 (867)(867)
Additional insurance reserves0 627,513 0 627,513 
Total$925,202 $627,513 $18,678 $1,571,393 
(1)Represents "Gross premiums" for benefit reserves; "Revenue" for deferred profit liability and "Gross assessments" for additional insurance reserves.
Six Months Ended June 30, 2023
Interest Expense
Term LifeVariable/ Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$185,524 $0 $4,201 $189,725 
Deferred profit liability0 0 294 294 
Additional insurance reserves0 237,869 0 237,869 
Total$185,524 $237,869 $4,495 $427,888 

Six Months Ended June 30, 2022
Interest Expense
Term LifeVariable/ Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$178,413 $0 $3,809 $182,222 
Deferred profit liability0 0 276 276 
Additional insurance reserves0 203,986 0 203,986 
Total$178,413 $203,986 $4,085 $386,484 
Additional Liability, Long-Duration Insurance (URR and Cost of Reinsurance) :
Six Months Ended June 30,
20232022
Variable Life / Universal Life
(in thousands)
Balance, beginning of period$3,067,336 $2,398,788 
Unearned revenue405,732393,675
Amortization expense(70,981)(63,472)
Other adjustments(93)66 
Balance, end of period3,401,994 2,729,057 
Less: Reinsurance recoverables1,621,2291,450,592
Unearned revenue reserve net of reinsurance recoverables$1,780,765 $1,278,465 
Market Risk Benefits
The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates:
Six Months Ended June 30, 2023
Variable AnnuitiesLess: Reinsured Market Risk BenefitsTotal, Net of Reinsurance
(in thousands)
Balance, beginning of period$4,550,625 $(422,261)$4,128,364 
Effect of cumulative changes in non-performance risk1,727,910 0 1,727,910 
Balance, beginning of period, before effect of changes in non-performance risk6,278,535 (422,261)5,856,274 
Attributed fees collected587,663 (107,425)480,238 
Claims paid(43,782)3,681 (40,101)
Interest accrual160,106 (20,505)139,601 
Actual in force different from expected36,193 (6,069)30,124 
Effect of changes in interest rates(671,989)169,229 (502,760)
Effect of changes in equity markets(1,314,461)127,157 (1,187,304)
Effect of assumption update330,769 (54,067)276,702 
Issuances11,403 9,025 20,428 
Other adjustments(1)(17,436)(638,198)(655,634)
Effect of changes in current period counterparty non-performance risk0 (7,445)(7,445)
Balance, end of period, before effect of changes in non-performance risk5,357,001 (946,878)4,410,123 
Effect of cumulative changes in non-performance risk(1,660,587)0 (1,660,587)
Balance, end of period$3,696,414 $(946,878)$2,749,536 
Six Months Ended June 30, 2022
Variable AnnuitiesLess: Reinsured Market Risk BenefitsTotal, Net of Reinsurance
(in thousands)
Balance, beginning of period$8,884,362 $(906,484)$7,977,878 
Effect of cumulative changes in non-performance risk287,605 0 287,605 
Balance, beginning of period, before effect of changes in non-performance risk9,171,967 (906,484)8,265,483 
Attributed fees collected659,743 (77,427)582,316 
Claims paid(16,431)318 (16,113)
Interest accrual26,589 (2,564)24,025 
Actual in force different from expected44,344 (4,746)39,598 
Effect of changes in interest rates(5,067,986)527,662 (4,540,324)
Effect of changes in equity markets3,238,166 (339,149)2,899,017 
Effect of assumption update(160,596)23,170 (137,426)
Effect of changes in current period counterparty non-performance risk0 223,753 223,753 
Balance, end of period, before effect of changes in non-performance risk7,895,796 (555,467)7,340,329 
Effect of cumulative changes in non-performance risk(2,077,191)0 (2,077,191)
Balance, end of period$5,818,605 $(555,467)$5,263,138 
(1)    Other adjustments for June 30, 2023 primarily includes $638 million related to the reinsurance transaction with Ohio National. See Note 11 for additional information.
The following table presents accompanying information to the rollforward table above.
June 30, 2023June 30, 2022
Variable Annuities
($ in thousands)
Net amount at risk(1)$10,067,522 $10,510,747 
Weighted-average attained age of contractholders6968
(1)For contracts with multiple benefit features, the highest net amount at risk for each contract is included.

The table below reconciles MRB asset and liability positions as of the following dates:
June 30, 2023June 30, 2022
Variable Annuities
(in thousands)
Market risk benefit assets$2,340,230 $1,422,757 
Market risk benefit liabilities5,089,766 6,685,895 
Net liability$2,749,536 $5,263,138 
Transition adjustment from the adoption of ASU 2018-12  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Accounting Standards of New Guidance on Financial Statements
Unaudited Interim Consolidated Statements of Financial Position:
December 31, 2022
IMPACTED LINES ONLYAs Previously ReportedEffect of
Change		As Currently Reported
(in thousands)
Deferred policy acquisition costs$6,616,097 $314,328 $6,930,425 
Reinsurance recoverables34,561,825 2,534,737 37,096,562 
Deferred sales inducements275,574 105,930 381,504 
Income tax assets1,873,740 (178,989)1,694,751 
Market risk benefit assets0 1,393,237 1,393,237 
Other assets1,327,393 4,034 1,331,427 
TOTAL ASSETS$189,299,841 $4,173,277 $193,473,118 
Policyholders’ account balances$41,748,241 $164,295 $41,912,536 
Future policy benefits23,204,533 (2,375,500)20,829,033 
Market risk benefit liabilities0 5,521,601 5,521,601 
Other liabilities3,407,156 190,217 3,597,373 
Total liabilities184,936,310 3,500,613 188,436,923 
Retained earnings / (accumulated deficit)(95,583)(898,571)(994,154)
Accumulated other comprehensive income (loss)(1,581,300)1,571,235 (10,065)
Total equity4,363,531 672,664 5,036,195 
TOTAL LIABILITIES AND EQUITY$189,299,841 $4,173,277 $193,473,118 
Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss):
Three Months Ended June 30, 2022
IMPACTED LINES ONLYAs Previously ReportedEffect of ChangeAs Currently Reported
(in thousands)
REVENUES
Premiums$57,421 $(3,097)$54,324 
Policy charges and fee income625,812 (227,057)398,755 
Other income (loss)(312,016)5,377 (306,639)
Realized investment gains (losses), net714,709 (354,490)360,219 
Change in value of market risk benefits, net of related hedging gain (loss)0 (717,469)(717,469)
TOTAL REVENUES1,349,844 (1,296,736)53,108 
BENEFITS AND EXPENSES
Policyholders’ benefits158,106 (63,657)94,449 
Change in estimates of liability for future policy benefits0 48,647 48,647 
Interest credited to policyholders’ account balances122,944 (14,026)108,918 
Amortization of deferred policy acquisition costs276,173 (145,284)130,889 
General, administrative and other expenses286,447 (680)285,767 
TOTAL BENEFITS AND EXPENSES843,670 (175,000)668,670 
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE506,174 (1,121,736)(615,562)
Income tax expense (benefit)75,774 (219,480)(143,706)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE430,400 (902,256)(471,856)
NET INCOME (LOSS)$355,238 $(902,256)$(547,018)
Other comprehensive income (loss), before tax:
Net unrealized investment gains (losses)(897,661)14,243 (883,418)
Interest rate remeasurement of future policy benefits0 130,981 130,981 
Gain (loss) from changes in non-performance risk on market risk benefits0 887,534 887,534 
Total(903,861)1,032,758 128,897 
Less: Income tax expense (benefit) related to other comprehensive income (loss)(189,054)216,859 27,805 
Other comprehensive income (loss), net of taxes(714,807)815,899 101,092 
Comprehensive income (loss)$(359,569)$(86,357)$(445,926)
Six Months Ended June 30, 2022
IMPACTED LINES ONLYAs Previously ReportedEffect of ChangeAs Currently Reported
(in thousands)
REVENUES
Premiums$131,666 $(7,837)$123,829 
Policy charges and fee income817,374 (329,439)487,935 
Other income (loss)(639,620)5,898 (633,722)
Realized investment gains (losses), net1,498,816 (785,316)713,500 
Change in value of market risk benefits, net of related hedging gain (loss)0 (1,155,337)(1,155,337)
TOTAL REVENUES2,330,686 (2,272,031)58,655 
BENEFITS AND EXPENSES
Policyholders’ benefits377,870 (98,012)279,858 
Change in estimates of liability for future policy benefits0 45,800 45,800 
Interest credited to policyholders’ account balances286,470 (65,533)220,937 
Amortization of deferred policy acquisition costs635,720 (379,756)255,964 
General, administrative and other expenses554,144 (1,427)552,717 
TOTAL BENEFITS AND EXPENSES1,854,204 (498,928)1,355,276 
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE476,482 (1,773,103)(1,296,621)
Income tax expense (benefit)71,073 (413,627)(342,554)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE405,409 (1,359,476)(954,067)
NET INCOME (LOSS)$330,251 $(1,359,476)$(1,029,225)
Other comprehensive income (loss), before tax:
Net unrealized investment gains (losses)(1,913,659)95,718 (1,817,941)
Interest rate remeasurement of future policy benefits0 249,694 249,694 
Gain (loss) from changes in non-performance risk on market risk benefits0 1,789,586 1,789,586 
Total(1,921,529)2,134,998 213,469 
Less: Income tax expense (benefit) related to other comprehensive income (loss)(402,512)448,330 45,818 
Other comprehensive income (loss), net of taxes(1,519,017)1,686,668 167,651 
Comprehensive income (loss)$(1,188,766)$327,192 $(861,574)
Unaudited Interim Consolidated Statements of Cash Flows:
Six Months Ended June 30, 2022
IMPACTED LINES ONLYAs Previously ReportedEffect of
Change		As Currently Reported
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$330,251 $(1,359,476)$(1,029,225)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Policy charges and fee income(104,864)155,405 50,541 
Interest credited to policyholders’ account balances286,470 (65,533)220,937 
Realized investment (gains) losses, net(1,498,816)785,316 (713,500)
Change in value of market risk benefits, net of related hedging (gains) losses0 1,155,337 1,155,337 
Change in:
Future policy benefits and other insurance liabilities1,476,307 1,179,949 2,656,256 
Reinsurance recoverables(651,569)(1,025,881)(1,677,450)
Deferred policy acquisition costs147,096 (379,988)(232,892)
Income taxes(90,806)(413,617)(504,423)
Other, net(1)2,025,636 (31,512)1,994,124 
Cash flows from (used in) operating activities$783,018 $0 $783,018 
(1)    Prior period has been reclassified to conform to the current period presentation.

The following tables detail the January 1, 2021 transition adjustments by providing a rollforward of the ending reported balances as of December 31, 2020 to the opening balances as of January 1, 2021 for retained earnings, accumulated other comprehensive income (“AOCI”) and the impacted insurance-related balances.

January 1, 2021
Retained Earnings
(in thousands)
Balance after-tax, prior to transition $1,772,398 
Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1)
(722,837)
Updates to certain universal life contract liabilities(2)(116,120)
Other(3)72,950 
Total pre-tax adjustments(766,007)
Tax impacts160,861 
Balance after-tax, after transition
$1,167,252 
(1)    Reflects the cumulative impact of changes in the fair value of market risk benefits (“MRB”) non-performance risk (“NPR”) from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance.
(2)    Reflects the impact on additional insurance reserves ("AIR") and other related balances primarily related to the no-lapse guarantee features on certain universal life contracts. For additional information, see Note 2.
(3)    Primarily reflects the reassessment of deferred reinsurance gains ("DRG") and losses ("DRL").
January 1, 2021
Accumulated Other Comprehensive Income
(in thousands)
Balance after-tax, prior to transition$546,128 
Interest rate remeasurement of future policy benefits
(196,526)
Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1)722,837 
Unwinding amounts related to unrealized investment gains and losses(2)(102,042)
Change in operating joint ventures(753)
Total pre-tax adjustments423,516 
Tax impacts(89,096)
Balance after-tax, after transition$880,548 
(1)    Reflects the cumulative impact of changes in NPR on the fair value of market risk benefits from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance.
(2)    Primarily reflects amounts related to DAC and other balances as unrealized investment gains or losses no longer impact the amortization pattern of such balances under the new guidance. Also includes the impacts from updates to reserves and other related balances for certain universal life contracts. For additional information, see Note 2.
Deferred Policy Acquisition Costs
January 1, 2021
Deferred Policy Acquisition Costs
Term LifeVariable/Universal LifeTotal
(in thousands)
Balance prior to transition$462,098 $1,971,838 $2,433,936 
Unwinding amounts related to unrealized investment gains and losses0 74,702 74,702 
Other(1)1 (15,557)(15,556)
Balance after transition$462,099 $2,030,983 $2,493,082 
(1)    Represents miscellaneous model refinements.
Liability for Future Policy Benefit (DRL, DRG, Benefit Reserves, DPL, and Additional Insurance Reserves)
January 1, 2021
Deferred Reinsurance Losses(1)
Variable AnnuitiesTerm LifeVariable/Universal LifeTotal
(in thousands)
Balance prior to transition$118,579 $87,932 $27,167 $233,678 
Unwinding amounts related to unrealized investment gains and losses14,804 0 0 14,804 
Effect of change in reserve basis to market risk benefits141,032 0 0 141,032 
Effect of change in SOP 03-1 reserve basis0 0 (27,167)(27,167)
Balance after transition$274,415 $87,932 $0 $362,347 
(1)    Deferred reinsurance losses are included in “Other assets”.

January 1, 2021
Deferred Reinsurance Gains(1)
Variable/Universal Life
(in thousands)
Balance prior to transition$134,213 
Effect of change in SOP 03-1 reserve basis40,046 
Balance after transition$174,259 
(1)    Deferred reinsurance gains are included in “Other liabilities”.
January 1, 2021
Benefit Reserves(1)
Term LifeLife Insurance - TaiwanOther(2)Total
(in thousands)
Balance prior to transition$6,674,490 $1,592,329 $219,744 $8,486,563 
Changes in cash flow assumptions and other activity(259)43,233 (7,283)35,691 
Balance after transition, at original discount rate6,674,231 1,635,562 212,461 8,522,254 
Cumulative changes in discount rate assumptions2,432,010 3,316,991 27,818 5,776,819 
Balance after transition, at current discount rate9,106,241 4,952,553 240,279 14,299,073 
   Less: Reinsurance recoverable8,536,200 4,952,553 239,874 13,728,627 
Balance after transition, net of reinsurance recoverable$570,041 $0 $405 $570,446 
(1)    Benefit reserves, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information on the liability for future policy benefits, see Note 8.
(2)    Other includes fixed annuities and retirement products.

January 1, 2021
Deferred Profit Liability(1)
Life Insurance - TaiwanOther(2)Total
(in thousands)
Balance prior to transition$49,127 $1,689 $50,816 
Changes in benefit reserves(6,671)8,521 1,850 
Balance after transition42,456 10,210 52,666 
Less: Reinsurance recoverable42,456 10,210 52,666 
Balance after transition, net of reinsurance recoverable$0 $0 $0 
(1)    Deferred profit liability ("DPL"), excluding amounts for reinsurance recoverable, is included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8.
(2)    Other includes fixed annuities and retirement products.

January 1, 2021
Additional Insurance Reserves(1)
Variable/Universal LifeVariable AnnuitiesTotal
(in thousands)
Balance prior to transition$9,363,585 $588,311 $9,951,896 
Unwinding amounts related to unrealized investment gains and losses(1,426,811)(53,889)(1,480,700)
Balance prior to transition, excluding amounts related to unrealized investment gains and losses7,936,774 534,422 8,471,196 
Reclassification of future policy benefits additional insurance reserves to market risk benefits0 (534,422)(534,422)
Updates to certain universal life contract liabilities(2)1,771,341 0 1,771,341 
Balance after transition, excluding amounts related to unrealized investment gains and losses9,708,115 0 9,708,115 
Amounts related to unrealized investment gains and losses after transition1,169,972 0 1,169,972 
Balance after transition10,878,087 0 10,878,087 
Less: Reinsurance recoverable10,685,150 0 10,685,150 
Balance after transition, net of reinsurance recoverable$192,937 $0 $192,937 
(1)    AIR, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8.
(2)    For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2.
Additional Liability, Long-Duration Insurance (URR and Cost of Reinsurance)
January 1, 2021
Unearned Revenue Reserves(1)
Variable/Universal Life
(in thousands)
Balance prior to transition$1,377,669 
Unwinding amounts related to unrealized investment gains and losses and other activity367,599 
Balance after transition1,745,268 
Less: Reinsurance recoverable751,517 
Balance after transition, net of reinsurance recoverable$993,751 
(1)    Unearned revenue reserves ("URR") are included in "Policyholders' account balances". For additional information regarding the liability for policyholders' account balances, see Note 9.
January 1, 2021
Cost of Reinsurance(1)
Variable/Universal Life
(in thousands)
Balance prior to transition$602,294 
Unwinding amounts related to unrealized investment gains and losses(246,899)
Balance prior to transition, excluding amounts related to unrealized investment gains and losses355,395 
Impact from updates to certain universal life contract liabilities(2)81,920 
Balance after transition, excluding amounts related to unrealized investment gains and losses437,315 
Amounts related to unrealized investment gains and losses after transition191,098 
Balance after transition$628,413 
(1)    Cost of reinsurance is included in "Other liabilities".
(2)    For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2.
Market Risk Benefits
January 1, 2021
Market Risk Benefits(1)
Variable Annuities
(in thousands)
Liability for guaranteed benefits recorded at fair value, prior to transition$13,227,814 
Additional insurance reserves to be reclassed to market risk benefits, prior to transition, excluding amounts related to unrealized investment gains and losses534,422 
Total liability prior to transition13,762,236 
Change in reserve basis to market risk benefits framework(184,693)
Market risk benefits after transition, at current non-performance risk value13,577,543 
Less: Reinsured market risk benefits13,589,575 
Market risk benefits after transition, net of reinsurance$(12,032)
Market risk benefits after transition, at contract inception non-performance risk value14,300,380 
Cumulative change in non-performance risk722,837 
Market risk benefits after transition, at current non-performance risk value$13,577,543 
(1)    For additional information regarding market risk benefits, see Note 10.