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Business and Basis of Presentation (Tables)
 9 Months Ended
Sep. 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:
Nine Months Ended September 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 
Capitalization77,409 180,239 114,860 412,902 785,410 
Amortization expense(15,270)(245,590)(47,256)(90,768)(398,884)
Other(1)0 (393,385)0 (12)(393,397)
Balance, end of period$164,390 $3,277,718 $716,441 $2,765,005 $6,923,554 
(1) Other includes the impact of the reinsurance agreement with Ohio National. See Note 11 for additional information.
Nine Months Ended September 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 
   Capitalization14,235 213,698 97,395 395,907 721,235 
   Amortization expense(10,059)(255,420)(40,383)(78,522)(384,384)
   Other(1)0 0 (322)(541,429)(541,751)
Balance, end of period$88,655 $3,765,011 $633,774 $2,336,967 $6,824,407 
(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.

Nine Months Ended September 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(144,504)(1,257)(145,761)
Adjusted balance, beginning of period11,321,396 (1,257)11,320,139 
Issuances512,379 28,889 541,268 
Net premiums / considerations collected(1,008,159)(27,632)(1,035,791)
Interest accrual391,662 0 391,662 
Balance at original discount rate, end of period11,217,278 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 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(191,864)6,793 (185,071)
Adjusted balance, beginning of period18,604,377 236,396 18,840,773 
Issuances512,379 28,889 541,268 
Interest accrual670,905 6,300 677,205 
Benefit payments(1,019,151)(25,504)(1,044,655)
Other adjustments2,845 (84)2,761 
Balance at original discount rate, end of period18,771,355 245,997 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 period1,838 
Total balance, end of period$17,216,882 
Nine Months Ended September 30, 2023
Net Liability for Future Policy Benefits (Benefit Reserves)
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, end of period, pre-flooring$6,725,590 $211,670 $6,937,260 
Flooring impact, end of period1,773 0 1,773 
Balance, end of period, post-flooring6,727,363 211,670 6,939,033 
Less: Reinsurance recoverable6,241,505 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 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(86,611)(1,032)(87,643)
Adjusted balance, beginning of period11,867,619 (1,032)11,866,587 
Issuances317,058 23,787 340,845 
Net premiums / considerations collected(1,000,325)(22,755)(1,023,080)
Interest accrual392,917 0 392,917 
Balance at original discount rate, end of period11,577,269 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 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(171,967)(1,489)(173,456)
Adjusted balance, beginning of period18,914,850 218,872 19,133,722 
Issuances317,058 23,787 340,845 
Interest accrual664,008 5,798 669,806 
Benefit payments(1,046,082)(20,263)(1,066,345)
Other adjustments3,692 (285)3,407 
Balance at original discount rate, end of period18,853,526 227,909 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 period2,186 
Total balance, end of period$17,684,170 

Nine Months Ended September 30, 2022
Net Liability for Future Policy Benefits (Benefit Reserves)
Term LifeFixed AnnuitiesTotal
(in thousands)
Balance, end of period, post-flooring$6,657,281 $199,103 $6,856,384 
Less: Reinsurance recoverable6,293,473 16,408 6,309,881 
Balance after reinsurance recoverable, end of period, post-flooring$363,808 $182,695 $546,503 
The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated:
Nine Months Ended September 30, 2023
Term LifeFixed Annuities
($ 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 $32,677 
Weighted-average duration of the liability in years (at original discount rate)107
Weighted-average duration of the liability in years (at current discount rate)96
Weighted-average interest rate (at original discount rate)5.18 %3.62 %
Weighted-average interest rate (at current discount rate)6.02 %5.95 %
Nine Months Ended September 30, 2022
Term LifeFixed Annuities
($ 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)117
Weighted-average duration of the liability in years (at current discount rate)106
Weighted-average interest rate (at original discount rate)5.26 %3.55 %
Weighted-average interest rate (at current discount rate)5.67 %5.58 %
The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows:

Nine Months Ended September 30,
20232022
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 period11,269 16,599 
Profits deferred4,834 2,173 
Interest accrual423 444 
Amortization(1,647)(1,424)
Other adjustments(11)(25)
Balance, end of period14,868 17,767 
Less: Reinsurance recoverable1,435 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,
20232022
Fixed Annuities
(in thousands)
Revenue(1)$3,325 $(2,002)
Interest accrual423 444 
(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:

Nine Months Ended September 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 activity(12,611)(215,658)
Adjusted balance, beginning of period13,943,981 12,745,531 
Assessments collected(1)828,657 738,061 
Interest accrual360,309 318,069 
Benefits paid(219,784)(131,667)
Balance, excluding amounts in AOCI, end of period, pre-flooring14,913,163 13,669,994 
Flooring impact and amounts in AOCI(1,714,686)(1,576,731)
Balance, including amounts in AOCI, end of period, post-flooring13,198,477 12,093,263 
Less: Reinsurance recoverable12,979,687 11,902,756 
Balance after reinsurance recoverable, including amounts in AOCI, end of period$218,790 $190,507 
(1) Represents the portion of gross assessments required to fund the future policy benefits.
Nine Months Ended September 30,
20232022
($ 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)2223
Weighted-average interest rate (at original discount rate)3.36 %3.38 %
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,
20232022
(in thousands)
Benefit reserves, end of period, post-flooring$6,939,033 $6,856,384 
Deferred profit liability, end of period, post-flooring14,868 17,767 
Additional insurance reserves, including amounts in AOCI, end of period, post-flooring13,198,477 12,093,263 
Subtotal of amounts disclosed above20,152,378 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.
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 LifeVariable/ Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$1,351,460 $0 $32,677 $1,384,137 
Deferred profit liability0 0 3,325 3,325 
Additional insurance reserves0 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 LifeVariable/ Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$1,379,044 $0 $25,058 $1,404,102 
Deferred profit liability0 0 (2,002)(2,002)
Additional insurance reserves0 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 LifeVariable/ Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$279,242 $0 $6,300 $285,542 
Deferred profit liability0 0 423 423 
Additional insurance reserves0 360,309 0 360,309 
Total$279,242 $360,309 $6,723 $646,274 

Nine Months Ended September 30, 2022
Interest Expense
Term LifeVariable/ Universal LifeFixed AnnuitiesTotal
(in thousands)
Benefit reserves$271,091 $0 $5,798 $276,889 
Deferred profit liability0 0 444 444 
Additional insurance reserves0 318,069 0 318,069 
Total$271,091 $318,069 $6,242 $595,402 
Additional Liability, Long-Duration Insurance (URR and Cost of Reinsurance) :
Nine Months Ended September 30,
20232022
Variable Life / Universal Life
(in thousands)
Balance, beginning of period$3,067,336 $2,398,788 
Unearned revenue612,196594,026
Amortization expense(111,353)(96,077)
Other adjustments(95)53 
Balance, end of period3,568,084 2,896,790 
Less: Reinsurance recoverables1,656,2991,498,140
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 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 collected878,381 (179,211)699,170 
Claims paid(62,128)5,903 (56,225)
Interest accrual235,979 (38,016)197,963 
Actual in force different from expected52,753 (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 update330,769 (54,067)276,702 
Issuances21,271 8,206 29,477 
Other adjustments(1)(17,436)(638,198)(655,634)
Effect of changes in current period counterparty non-performance risk0 (75,594)(75,594)
Balance, end of period, before effect of changes in non-performance risk3,907,481 (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 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 collected958,638 (113,016)845,622 
Claims paid(36,684)1,567 (35,117)
Interest accrual71,646 (6,801)64,845 
Actual in force different from expected77,474 (6,817)70,657 
Effect of changes in interest rates(6,853,674)715,370 (6,138,304)
Effect of changes in equity markets3,966,792 (416,593)3,550,199 
Effect of assumption update(160,596)23,170 (137,426)
Effect of changes in current period counterparty non-performance risk0 226,717 226,717 
Balance, end of period, before effect of changes in non-performance risk7,195,563 (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 $638 million related to the reinsurance transaction with Ohio National. See Note 11 for additional information.
The following table presents accompanying information to the rollforward table above.
September 30, 2023September 30, 2022
Variable Annuities
($ in thousands)
Net amount at risk(1)$12,504,440 $14,124,120 
Weighted-average attained age of contractholders7069
(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, 2023September 30, 2022
Variable Annuities
(in thousands)
Market risk benefit assets$2,519,234 $1,306,404 
Market risk benefit liabilities4,371,178 5,945,122 
Net liability$1,851,944 $4,638,718 
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 September 30, 2022
IMPACTED LINES ONLYAs Previously ReportedEffect of ChangeAs Currently Reported
(in thousands)
REVENUES
Premiums$63,354 $(1,638)$61,716 
Policy charges and fee income438,781 (68,835)369,946 
Other income (loss)(163,701)2,294 (161,407)
Realized investment gains (losses), net23,958 73,313 97,271 
Change in value of market risk benefits, net of related hedging gain (loss)0 (80,078)(80,078)
TOTAL REVENUES641,708 (74,944)566,764 
BENEFITS AND EXPENSES
Policyholders’ benefits122,139 (34,454)87,685 
Change in estimates of liability for future policy benefits0 (2,935)(2,935)
Interest credited to policyholders’ account balances105,170 (7,521)97,649 
Amortization of deferred policy acquisition costs96,048 32,372 128,420 
General, administrative and other expenses241,370 1,835 243,205 
TOTAL BENEFITS AND EXPENSES564,727 (10,703)554,024 
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE76,981 (64,241)12,740 
Income tax expense (benefit)(1,983)(5,677)(7,660)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE78,964 (58,564)20,400 
NET INCOME (LOSS)$78,711 $(58,564)$20,147 
Other comprehensive income (loss), before tax:
Net unrealized investment gains (losses)(862,220)72,112 (790,108)
Interest rate remeasurement of future policy benefits0 97,171 97,171 
Gain (loss) from changes in non-performance risk on market risk benefits0 (3,233)(3,233)
Total(865,869)166,050 (699,819)
Less: Income tax expense (benefit) related to other comprehensive income (loss)(181,602)34,891 (146,711)
Other comprehensive income (loss), net of taxes(684,267)131,159 (553,108)
Comprehensive income (loss)$(605,556)$72,595 $(532,961)
Nine Months Ended September 30, 2022
IMPACTED LINES ONLYAs Previously ReportedEffect of ChangeAs Currently Reported
(in thousands)
REVENUES
Premiums$195,020 $(9,475)$185,545 
Policy charges and fee income1,256,155 (398,274)857,881 
Other income (loss)(803,321)8,192 (795,129)
Realized investment gains (losses), net1,522,774 (712,003)810,771 
Change in value of market risk benefits, net of related hedging gain (loss)0 (1,235,415)(1,235,415)
TOTAL REVENUES2,972,394 (2,346,975)625,419 
BENEFITS AND EXPENSES
Policyholders’ benefits500,009 (132,466)367,543 
Change in estimates of liability for future policy benefits0 42,865 42,865 
Interest credited to policyholders’ account balances391,640 (73,054)318,586 
Amortization of deferred policy acquisition costs731,768 (347,384)384,384 
General, administrative and other expenses795,514 408 795,922 
TOTAL BENEFITS AND EXPENSES2,418,931 (509,631)1,909,300 
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE553,463 (1,837,344)(1,283,881)
Income tax expense (benefit)69,090 (419,304)(350,214)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE484,373 (1,418,040)(933,667)
NET INCOME (LOSS)$408,962 $(1,418,040)$(1,009,078)
Other comprehensive income (loss), before tax:
Net unrealized investment gains (losses)(2,775,879)167,830 (2,608,049)
Interest rate remeasurement of future policy benefits0 346,865 346,865 
Gain (loss) from changes in non-performance risk on market risk benefits0 1,786,353 1,786,353 
Total(2,787,398)2,301,048 (486,350)
Less: Income tax expense (benefit) related to other comprehensive income (loss)(584,114)483,221 (100,893)
Other comprehensive income (loss), net of taxes(2,203,284)1,817,827 (385,457)
Comprehensive income (loss)$(1,794,322)$399,787 $(1,394,535)
Unaudited Interim Consolidated Statements of Cash Flows:
Nine Months Ended September 30, 2022
IMPACTED LINES ONLYAs Previously ReportedEffect of
Change		As Currently Reported
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$408,962 $(1,418,040)$(1,009,078)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Policy charges and fee income(70,540)160,284 89,744 
Interest credited to policyholders’ account balances391,640 (73,054)318,586 
Realized investment (gains) losses, net(1,522,774)712,003 (810,771)
Change in value of market risk benefits, net of related hedging (gains) losses0 1,235,415 1,235,415 
Change in:
Future policy benefits and other insurance liabilities2,021,063 1,262,586 3,283,649 
Reinsurance recoverables(875,612)(1,060,937)(1,936,549)
Deferred policy acquisition costs11,130 (347,415)(336,285)
Income taxes(26,802)(419,316)(446,118)
Other, net(1)1,768,968 (51,526)1,717,442 
Cash flows from (used in) operating activities$1,023,461 $0 $1,023,461 
(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.