Market Risk Benefits

9 Months Ended

Sep. 30, 2023

Insurance [Abstract]

Policyholders' Liabilities

LIABILITY FOR FUTURE POLICY BENEFITS

Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below.

•Benefit Reserves;

•Deferred Profit Liability; and

•Additional Insurance Reserves

In 2023, the Company recognized an immaterial impact to net income attributable to the actuarial assumption update for direct and assumed benefit reserves. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed additional insurance reserves, primarily due to unfavorable model refinements, partially offset by favorable updates to economic assumptions, including expected future rates of returns on investments on universal life policies with secondary guarantees.

In 2022, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed benefit reserves, primarily due to updates to mortality assumptions on individual term life insurance. Additionally, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update and other refinements for direct and assumed additional insurance reserves, primarily due to updates to policyholder behavior assumptions on universal life policies with secondary guarantees.

Benefit 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.

	Nine Months Ended September 30, 2023
	Present Value of Expected Net Premiums
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	10,911,794	$	0	$	10,911,794
Effect of cumulative changes in discount rate assumptions, beginning of period	554,896		0		554,896
Balance at original discount rate, beginning of period	11,466,690		0		11,466,690
Effect of assumption update	(790)		0		(790)
Effect of actual variances from expected experience and other activity	(144,504)		(1,257)		(145,761)
Adjusted balance, beginning of period	11,321,396		(1,257)		11,320,139
Issuances	512,379		28,889		541,268
Net premiums / considerations collected	(1,008,159)		(27,632)		(1,035,791)
Interest accrual	391,662		0		391,662
Balance at original discount rate, end of period	11,217,278		0		11,217,278
Effect of cumulative changes in discount rate assumptions, end of period	(939,494)		0		(939,494)
Balance, end of period	$	10,277,784	$	0	$	10,277,784

	Nine Months Ended September 30, 2023
	Present Value of Expected Future Policy Benefits
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	17,835,251	$	204,727	$	18,039,978
Effect of cumulative changes in discount rate assumptions, beginning of period	962,034		24,876		986,910
Balance at original discount rate, beginning of period	18,797,285		229,603		19,026,888
Effect of assumption update	(1,044)		0		(1,044)
Effect of actual variances from expected experience and other activity	(191,864)		6,793		(185,071)
Adjusted balance, beginning of period	18,604,377		236,396		18,840,773
Issuances	512,379		28,889		541,268
Interest accrual	670,905		6,300		677,205
Benefit payments	(1,019,151)		(25,504)		(1,044,655)
Other adjustments	2,845		(84)		2,761
Balance at original discount rate, end of period	18,771,355		245,997		19,017,352
Effect of cumulative changes in discount rate assumptions, end of period	(1,767,981)		(34,327)		(1,802,308)
Balance, end of period	$	17,003,374	$	211,670	$	17,215,044
Other, end of period					1,838
Total balance, end of period					$	17,216,882

	Nine Months Ended September 30, 2023
	Net Liability for Future Policy Benefits (Benefit Reserves)
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, end of period, pre-flooring	$	6,725,590	$	211,670	$	6,937,260
Flooring impact, end of period	1,773		0		1,773
Balance, end of period, post-flooring	6,727,363		211,670		6,939,033
Less: Reinsurance recoverable	6,241,505		17,097		6,258,602
Balance after reinsurance recoverable, end of period, post-flooring	$	485,858	$	194,573	$	680,431

	Nine Months Ended September 30, 2022
	Present Value of Expected Net Premiums
	Term Life		Fixed Annuities		Total
	(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 period	10,658,936		0		10,658,936
Effect of assumption update	1,295,294		0		1,295,294
Effect of actual variances from expected experience and other activity	(86,611)		(1,032)		(87,643)
Adjusted balance, beginning of period	11,867,619		(1,032)		11,866,587
Issuances	317,058		23,787		340,845
Net premiums / considerations collected	(1,000,325)		(22,755)		(1,023,080)
Interest accrual	392,917		0		392,917
Balance at original discount rate, end of period	11,577,269		0		11,577,269
Effect of cumulative changes in discount rate assumptions, end of period	(751,597)		0		(751,597)
Balance, end of period	$	10,825,672	$	0	$	10,825,672

	Nine Months Ended September 30, 2022
	Present Value of Expected Future Policy Benefits
	Term Life		Fixed Annuities		Total
	(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 period	17,329,822		220,361		17,550,183
Effect of assumption update	1,756,995		0		1,756,995
Effect of actual variances from expected experience and other activity	(171,967)		(1,489)		(173,456)
Adjusted balance, beginning of period	18,914,850		218,872		19,133,722
Issuances	317,058		23,787		340,845
Interest accrual	664,008		5,798		669,806
Benefit payments	(1,046,082)		(20,263)		(1,066,345)
Other adjustments	3,692		(285)		3,407
Balance at original discount rate, end of period	18,853,526		227,909		19,081,435
Effect of cumulative changes in discount rate assumptions, end of period	(1,370,645)		(28,806)		(1,399,451)
Balance, end of period	$	17,482,881	$	199,103	$	17,681,984
Other, end of period					2,186
Total balance, end of period					$	17,684,170

	Nine Months Ended September 30, 2022
	Net Liability for Future Policy Benefits (Benefit Reserves)
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, end of period, post-flooring	$	6,657,281	$	199,103	$	6,856,384
Less: Reinsurance recoverable	6,293,473		16,408		6,309,881
Balance after reinsurance recoverable, end of period, post-flooring	$	363,808	$	182,695	$	546,503

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:

	Nine Months Ended September 30, 2023
	Term Life			Fixed Annuities
	($ in thousands)
Undiscounted expected future gross premiums	$	21,914,391		$	0
Discounted expected future gross premiums (at original discount rate)	$	15,083,578		$	0
Discounted expected future gross premiums (at current discount rate)	$	13,840,343		$	0
Undiscounted expected future benefits and expenses	$	29,147,479		$	328,212
Interest accrual	$	279,242		$	6,300
Gross premiums	$	1,351,460		$	32,677
Weighted-average duration of the liability in years (at original discount rate)	10			7
Weighted-average duration of the liability in years (at current discount rate)	9			6
Weighted-average interest rate (at original discount rate)	5.18		%	3.62		%
Weighted-average interest rate (at current discount rate)	6.02		%	5.95		%

	Nine Months Ended September 30, 2022
	Term Life			Fixed Annuities
	($ in thousands)
Undiscounted expected future gross premiums	$	22,344,548		$	0
Discounted expected future gross premiums (at original discount rate)	$	15,403,622		$	0
Discounted expected future gross premiums (at current discount rate)	$	14,404,899		$	0
Undiscounted expected future benefits and expenses	$	29,477,887		$	303,385
Interest accrual	$	271,091		$	5,798
Gross premiums	$	1,379,044		$	25,058
Weighted-average duration of the liability in years (at original discount rate)	11			7
Weighted-average duration of the liability in years (at current discount rate)	10			6
Weighted-average interest rate (at original discount rate)	5.26		%	3.55		%
Weighted-average interest rate (at current discount rate)	5.67		%	5.58		%

For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2.

For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss.

In the first nine months of 2023, there was a $35 million gain in net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, which was offset by a $34 million charge, reflecting the impact of ceded reinsurance on the affected cohorts.

In the first nine months of 2022, there was a $99 million charge to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $97 million gain, reflecting the impact of ceded reinsurance on the affected cohorts. The unfavorable impact in the first nine months of 2022 is primarily due to unfavorable assumption updates related to individual term life products.

Deferred Profit Liability

The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows:

	Nine Months Ended September 30,
	2023		2022
	Fixed Annuities
	(in thousands)
Balance, beginning of period	$	18,193	$	15,765
Effect of actual variances from expected experience and other activity	(6,924)		834
Adjusted balance, beginning of period	11,269		16,599
Profits deferred	4,834		2,173
Interest accrual	423		444
Amortization	(1,647)		(1,424)
Other adjustments	(11)		(25)
Balance, end of period	14,868		17,767
Less: Reinsurance recoverable	1,435		1,710
Balance after reinsurance recoverable	$	13,433	$	16,057

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:

	Nine Months Ended September 30,
	2023		2022
	Fixed Annuities
	(in thousands)
Revenue(1)	$	3,325	$	(2,002)
Interest accrual	423		444

(1) Represents the gross premiums collected in changes in deferred profit liability.

Additional Insurance Reserves

AIR represents the additional liability for annuitization, death, or other insurance benefits, including GMDB and GMIB contract features, that are above and beyond the contractholder's account balance.

The following table shows a rollforward of AIR balances for variable and universal life products for the periods indicated:

	Nine Months Ended September 30,
	2023		2022
	(in thousands)
Balance, including amounts in AOCI, beginning of period, post-flooring	$	12,664,445	$	11,660,527
Flooring impact and amounts in AOCI	1,269,237		(896,930)
Balance, excluding amounts in AOCI, beginning of period, pre-flooring	13,933,682		10,763,597
Effect of assumption update	22,910		2,197,592
Effect of actual variances from expected experience and other activity	(12,611)		(215,658)
Adjusted balance, beginning of period	13,943,981		12,745,531
Assessments collected(1)	828,657		738,061
Interest accrual	360,309		318,069
Benefits paid	(219,784)		(131,667)
Balance, excluding amounts in AOCI, end of period, pre-flooring	14,913,163		13,669,994
Flooring impact and amounts in AOCI	(1,714,686)		(1,576,731)
Balance, including amounts in AOCI, end of period, post-flooring	13,198,477		12,093,263
Less: Reinsurance recoverable	12,979,687		11,902,756
Balance after reinsurance recoverable, including amounts in AOCI, end of period	$	218,790	$	190,507

(1) Represents the portion of gross assessments required to fund the future policy benefits.

	Nine Months Ended September 30,
	2023			2022
	($ in thousands)
Interest accrual	$	360,309		$	318,069
Gross assessments	$	1,168,206		$	1,020,763
Weighted-average duration of the liability in years (at original discount rate)	22			23
Weighted-average interest rate (at original discount rate)	3.36		%	3.38		%

Future Policy Benefits Reconciliation

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:

	Nine Months Ended September 30,
	2023		2022
	(in thousands)
Benefit reserves, end of period, post-flooring	$	6,939,033	$	6,856,384
Deferred profit liability, end of period, post-flooring	14,868		17,767
Additional insurance reserves, including amounts in AOCI, end of period, post-flooring	13,198,477		12,093,263
Subtotal of amounts disclosed above	20,152,378		18,967,414
Other Future policy benefits reserves(1)	1,104,756		1,036,278
Total Future policy benefits	$	21,257,134	$	20,003,692

(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.

Revenue and Interest Expense

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:

	Nine Months Ended September 30, 2023
	Revenues(1)
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	1,351,460	$	0	$	32,677	$	1,384,137
Deferred profit liability	0		0		3,325		3,325
Additional insurance reserves	0		1,168,206		0		1,168,206
Total	$	1,351,460	$	1,168,206	$	36,002	$	2,555,668

	Nine Months Ended September 30, 2022
	Revenues(1)
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	1,379,044	$	0	$	25,058	$	1,404,102
Deferred profit liability	0		0		(2,002)		(2,002)
Additional insurance reserves	0		1,020,763		0		1,020,763
Total	$	1,379,044	$	1,020,763	$	23,056	$	2,422,863

(1)Represents "Gross premiums" for benefit reserves; "Revenue" for deferred profit liability and "Gross assessments" for additional insurance reserves.

	Nine Months Ended September 30, 2023
	Interest Expense
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	279,242	$	0	$	6,300	$	285,542
Deferred profit liability	0		0		423		423
Additional insurance reserves	0		360,309		0		360,309
Total	$	279,242	$	360,309	$	6,723	$	646,274

	Nine Months Ended September 30, 2022
	Interest Expense
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	271,091	$	0	$	5,798	$	276,889
Deferred profit liability	0		0		444		444
Additional insurance reserves	0		318,069		0		318,069
Total	$	271,091	$	318,069	$	6,242	$	595,402

POLICYHOLDERS' ACCOUNT BALANCES

Policyholders' Account Balances

The balance of and changes in policyholders' account balances as of and for the periods ended are as follows:

	Nine Months Ended September 30, 2023
	Fixed Annuities			Variable Annuities			Variable Life / Universal Life			Total
	($ in thousands)
Balance, beginning of period	$	3,575,824		$	16,432,032		$	18,736,365		$	38,744,221
Deposits	1,801,985			3,439,562			1,543,230			6,784,777
Interest credited	73,763			194,853			415,843			684,459
Policy charges	(5,683)			(16,564)			(1,357,363)			(1,379,610)
Surrenders and withdrawals	(161,929)			(351,475)			(579,913)			(1,093,317)
Benefit payments	(37,459)			(22,285)			(62,055)			(121,799)
Net transfers (to) from separate account(1)	0			4,467			1,115,178			1,119,645
Change in market value and other adjustments(2)	81,544			1,095,144			76,107			1,252,795
Balance, end of period	5,328,045			20,775,734			19,887,392			45,991,171
Less: Reinsurance and other recoverables(3)	22,276			495,506			12,859,492			13,377,274
Policyholders' account balance net of reinsurance and other recoverables	$	5,305,769		$	20,280,228		$	7,027,900		$	32,613,897
Unearned revenue reserve										3,568,084
Other										102,815
Total Policyholders' account balance										$	49,662,070
Weighted-average crediting rate	2.21		%	1.40		%	2.87		%	2.15		%
Net amount at risk(4)	$	12		$	0		$	318,075,705		$	318,075,717
Cash surrender value(5)	$	4,491,679		$	17,981,713		$	18,517,769		$	40,991,161

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

(2) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products.

(3) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders' account balances gross liability.

(4) The net amount at risk calculation includes both general and separate account balances.

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

	Nine Months Ended September 30, 2022
	Fixed Annuities			Variable Annuities			Variable Life / Universal Life			Total
	($ in thousands)
Balance, beginning of period	$	3,005,867		$	11,465,411		$	18,762,548		$	33,233,826
Deposits	352,985			3,742,495			1,624,685			5,720,165
Interest credited	38,232			120,516			435,694			594,442
Policy charges	(3,393)			(2,343)			(1,343,735)			(1,349,471)
Surrenders and withdrawals	(44,124)			(182,878)			(597,867)			(824,869)
Benefit payments	(68,319)			(28,907)			(76,017)			(173,243)
Net transfers (to) from separate account	0			201,039			170,926			371,965
Change in market value and other adjustments(1)	(97,166)			559,351			(278,141)			184,044
Balance, end of period	3,184,082			15,874,684			18,698,093			37,756,859
Less: Reinsurance and other recoverables(2)	4,664			328,079			12,970,107			13,302,850
Policyholders' account balance net of reinsurance and other recoverables	$	3,179,418		$	15,546,605		$	5,727,986		$	24,454,009
Unearned revenue reserve										2,896,790
Other										98,896
Total Policyholders' account balance										$	40,752,545
Weighted-average crediting rate	1.65		%	1.18		%	3.10		%	2.23		%
Net amount at risk(3)	$	235		$	0		$	300,033,962		$	300,034,197
Cash surrender value(4)	$	2,617,105		$	12,395,474		$	17,084,598		$	32,097,177

(1) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products.

(2) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability.

(3) The net amount at risk calculation includes both general and separate account balances.

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

The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid.

The net amount at risk is generally defined as the current death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns.

The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 10 for additional information, including the net amount at risk associated with these guarantees.

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows:

	September 30, 2023
Range of Guaranteed Minimum Crediting Rate (1)	At guaranteed minimum		1 -50 bps above guaranteed minimum		51 -150 bps above guaranteed minimum		Greater than 150 bps above guaranteed minimum		Total
	(in thousands)
Fixed Annuities
Less than 1.00%	$	85	$	188	$	430	$	20,481	$	21,184
1.00% - 1.99%	497,237		74,579		237,130		82,040		890,986
2.00% - 2.99%	280,760		469,123		319,721		12,466		1,082,070
3.00% - 4.00%	31,048		0		0		0		31,048
Greater than 4.00%	0		0		0		0		0
Total	$	809,130	$	543,890	$	557,281	$	114,987	$	2,025,288
Variable Annuities
Less than 1.00%	$	944,205	$	821,295	$	18,262	$	2	$	1,783,764
1.00% - 1.99%	221,831		2,113		1,086		0		225,030
2.00% - 2.99%	26,319		4,332		2,979		0		33,630
3.00% - 4.00%	956,761		3,416		0		0		960,177
Greater than 4.00%	2,027		0		0		0		2,027
Total	$	2,151,143	$	831,156	$	22,327	$	2	$	3,004,628
Variable Life / Universal Life
Less than 1.00%	$	0	$	0	$	0	$	217,003	$	217,003
1.00% - 1.99%	185,341		0		2,528,250		572,113		3,285,704
2.00% - 2.99%	27,536		1,418,150		2,778,586		268,998		4,493,270
3.00% - 4.00%	4,008,791		2,241,159		1,114,429		0		7,364,379
Greater than 4.00%	2,147,756		0		0		0		2,147,756
Total	$	6,369,424	$	3,659,309	$	6,421,265	$	1,058,114	$	17,508,112

(1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options.

	September 30, 2022
Range of Guaranteed Minimum Crediting Rate (1)	At guaranteed minimum		1 - 50 bps above guaranteed minimum		51 -150 bps above guaranteed minimum		Greater than 150 bps above guaranteed minimum		Total
	(in thousands)
Fixed Annuities
Less than 1.00%	$	0	$	0	$	0	$	0	$	0
1.00% - 1.99%	520,312		66,011		127,370		48,257		761,950
2.00% - 2.99%	212,983		0		0		0		212,983
3.00% - 4.00%	40,381		0		0		0		40,381
Greater than 4.00%	0		0		0		0		0
Total	$	773,676	$	66,011	$	127,370	$	48,257	$	1,015,314
Variable Annuities
Less than 1.00%	$	1,034,346	$	869,636	$	18,847	$	2	$	1,922,831
1.00% - 1.99%	247,033		2,223		339		0		249,595
2.00% - 2.99%	29,299		63		0		0		29,362
3.00% - 4.00%	1,110,933		0		0		0		1,110,933
Greater than 4.00%	2,167		0		0		0		2,167
Total	$	2,423,778	$	871,922	$	19,186	$	2	$	3,314,888
Variable Life / Universal Life
Less than 1.00%	$	14,603	$	0	$	0	$	0	$	14,603
1.00% - 1.99%	323,385		0		733,182		2,014,152		3,070,719
2.00% - 2.99%	8,479		3,540		2,405,601		2,003,691		4,421,311
3.00% - 4.00%	4,559,965		11,551		2,316,936		139,908		7,028,360
Greater than 4.00%	2,085,177		0		0		0		2,085,177
Total	$	6,991,609	$	15,091	$	5,455,719	$	4,157,751	$	16,620,170

(1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options.

Unearned Revenue Reserve

The balances of and changes in URR as of and for the periods ended are as follows:

	Nine Months Ended September 30,
	2023		2022
	Variable Life / Universal Life
	(in thousands)
Balance, beginning of period	$	3,067,336	$	2,398,788
Unearned revenue	612,196		594,026
Amortization expense	(111,353)		(96,077)
Other adjustments	(95)		53
Balance, end of period	3,568,084		2,896,790
Less: Reinsurance recoverables	1,656,299		1,498,140
Unearned revenue reserve net of reinsurance recoverables	$	1,911,785	$	1,398,650

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:

	Nine Months Ended September 30, 2023
	Variable Annuities		Less: Reinsured Market Risk Benefits		Total, Net of Reinsurance
	(in thousands)
Balance, beginning of period	$	4,550,625	$	(422,261)	$	4,128,364
Effect of cumulative changes in non-performance risk	1,727,910		0		1,727,910
Balance, beginning of period, before effect of changes in non-performance risk	6,278,535		(422,261)		5,856,274
Attributed fees collected	878,381		(179,211)		699,170
Claims paid	(62,128)		5,903		(56,225)
Interest accrual	235,979		(38,016)		197,963
Actual in force different from expected	52,753		(6,588)		46,165
Effect of changes in interest rates	(2,869,989)		484,168		(2,385,821)
Effect of changes in equity markets	(940,654)		90,742		(849,912)
Effect of assumption update	330,769		(54,067)		276,702
Issuances	21,271		8,206		29,477
Other adjustments(1)	(17,436)		(638,198)		(655,634)
Effect of changes in current period counterparty non-performance risk	0		(75,594)		(75,594)
Balance, end of period, before effect of changes in non-performance risk	3,907,481		(824,916)		3,082,565
Effect of cumulative changes in non-performance risk	(1,230,621)		0		(1,230,621)
Balance, end of period	$	2,676,860	$	(824,916)	$	1,851,944

	Nine Months Ended September 30, 2022
	Variable Annuities		Less: Reinsured Market Risk Benefits		Total, Net of Reinsurance
	(in thousands)
Balance, beginning of period	$	8,884,362	$	(906,484)	$	7,977,878
Effect of cumulative changes in non-performance risk	287,605		0		287,605
Balance, beginning of period, before effect of changes in non-performance risk	9,171,967		(906,484)		8,265,483
Attributed fees collected	958,638		(113,016)		845,622
Claims paid	(36,684)		1,567		(35,117)
Interest accrual	71,646		(6,801)		64,845
Actual in force different from expected	77,474		(6,817)		70,657
Effect of changes in interest rates	(6,853,674)		715,370		(6,138,304)
Effect of changes in equity markets	3,966,792		(416,593)		3,550,199
Effect of assumption update	(160,596)		23,170		(137,426)
Effect of changes in current period counterparty non-performance risk	0		226,717		226,717
Balance, end of period, before effect of changes in non-performance risk	7,195,563		(482,887)		6,712,676
Effect of cumulative changes in non-performance risk	(2,073,958)		0		(2,073,958)
Balance, end of period	$	5,121,605	$	(482,887)	$	4,638,718

(1)    Other adjustments for September 30, 2023 primarily includes $638 million related to the reinsurance transaction with Ohio National. See Note 11 for additional information.

In 2023, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed market risk benefits, primarily due to updates to policyholder behavior assumptions on certain variable annuities.

In 2022, the Company recognized a favorable impact to net income attributable to the actuarial assumption update for direct and assumed market risk benefits, primarily due to updates to mortality and policyholder behavior assumptions on certain variable annuities.

The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods.

The Company also issues indexed variable annuity contracts for which the return is tied to the return of specific indices where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals upon death. In certain of these indexed variable annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods.

For guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality.

For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance.

For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior.

The following table presents accompanying information to the rollforward table above.

	September 30, 2023		September 30, 2022
	Variable Annuities
	($ in thousands)
Net amount at risk(1)	$	12,504,440	$	14,124,120
Weighted-average attained age of contractholders	70		69

(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:

	September 30, 2023		September 30, 2022
	Variable Annuities
	(in thousands)
Market risk benefit assets	$	2,519,234	$	1,306,404
Market risk benefit liabilities	4,371,178		5,945,122
Net liability	$	1,851,944	$	4,638,718