Separate Accounts

9 Months Ended

Sep. 30, 2023

SEPARATE ACCOUNTS

The Company issues variable annuity and variable life insurance contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. Most variable annuity and variable life insurance contracts are offered with both separate and general account options. See Note 9 for additional information.

The assets supporting the variable portion of variable annuity and variable life insurance contracts are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities”. The liabilities related to the net amount at risk are reflected within future policy benefits or market risk benefits. Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net”.

Separate Account Assets

The aggregate fair value of assets, by major investment asset category, supporting separate accounts is as follows:


	September 30, 2023		December 31, 2022
	(in thousands)
Asset Type:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	2,439	$	2,510


U.S. corporate securities	4,289		8,702
Foreign corporate securities	1,614		1,420

Mortgage-backed securities	177		276
Mutual funds:
Equity	64,287,893		67,144,660
Fixed Income	38,483,909		38,109,374
Other	3,777,729		3,441,016
Equity securities	83,292		49,260

Other invested assets	4,958,037		5,262,178
Short-term investments	9,688		1,237
Cash and cash equivalents	2,319		30,613
Total	$	111,611,386	$	114,051,246

For the nine months ended September 30, 2023 and year ended December 31, 2022, there were no transfers of assets, other than cash, from the general account to a separate account; therefore, no gains or losses were recorded.

Separate Account Liabilities

The balances of and changes in separate account liabilities as of and for the periods indicated are as follows:


	Nine Months Ended September 30, 2023
	Variable Annuities		Variable Life		Total
	(in thousands)
Balance, beginning of period	$	91,785,448	$	22,265,798	$	114,051,246
Deposits	327,045		2,013,783		2,340,828
Investment performance	4,080,782		2,022,446		6,103,228

Policy charges	(1,740,555)		(615,562)		(2,356,117)
Surrenders and withdrawals	(6,989,586)		(249,911)		(7,239,497)
Benefit payments	(57,037)		(158,198)		(215,235)
Net transfers (to) from general account(1)	(4,467)		(1,115,178)		(1,119,645)

Other	8,355		38,223		46,578
Balance, end of period	$	87,409,985	$	24,201,401	$	111,611,386

Cash surrender value(2)	$	86,152,668	$	21,219,141	$	107,371,809


	Nine Months Ended September 30, 2022
	Variable Annuities		Variable Life		Total
	(in thousands)
Balance, beginning of period	$	123,977,624	$	25,820,204	$	149,797,828
Deposits	562,208		1,699,430		2,261,638
Investment performance	(26,283,957)		(5,354,052)		(31,638,009)

Policy charges	(1,929,880)		(570,639)		(2,500,519)
Surrenders and withdrawals	(6,480,743)		(274,650)		(6,755,393)
Benefit payments	(49,586)		(238,873)		(288,459)
Net transfers (to) from general account	(201,039)		(170,926)		(371,965)

Other	9,839		29,687		39,526
Balance, end of period	$	89,604,466	$	20,940,181	$	110,544,647

Cash surrender value(2)	$	87,929,884	$	18,336,152	$	106,266,036

(1) Variable life includes $900 million of funding for a policy loan to an affiliated irrevocable trust. See Note 14 for additional information.

(2) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges.