Liability For Future Policy Benefits

6 Months Ended

Jun. 30, 2024

Insurance [Abstract]

Liability For Future Policy Benefits

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 ("DPL"); and

•Additional Insurance Reserves ("AIR")

In 2024, the Company recognized an impact to net income attributable to our annual reviews and update of assumptions and other refinements. Overall impact is immaterial for direct and assumed Benefit Reserves and DPL, net of the impact of flooring these liabilities at zero for each issue year cohort. Additionally, for direct and assumed AIR, the Company recognized an unfavorable impact primarily due to updates to policyholder behavior assumptions on universal life policies with secondary guarantees.

In 2023, the Company recognized an impact to net income attributable to the annual reviews and update of assumptions and other refinements. Overall impact is immaterial for direct and assumed Benefit Reserves and DPL, net of the impact of flooring these liabilities at zero for each issue year cohort. Additionally, for direct and assumed AIR, the Company recognized an unfavorable impact primarily due to unfavorable model refinements, partially offset by updates to economic assumptions, including expected future rates of returns 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.

	Six Months Ended June 30, 2024
	Present Value of Expected Net Premiums
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	10,927,833	$	0	$	10,927,833
Effect of cumulative changes in discount rate assumptions, beginning of period	225,711		0		225,711
Balance at original discount rate, beginning of period	11,153,544		0		11,153,544
Effect of assumption update	21,466		0		21,466
Effect of actual variances from expected experience and other activity	(127,507)		(380)		(127,887)
Adjusted balance, beginning of period	11,047,503		(380)		11,047,123
Issuances	403,742		18,328		422,070
Net premiums / considerations collected	(661,611)		(17,948)		(679,559)
Interest accrual	254,945		0		254,945
Other adjustments	(78)		0		(78)
Balance at original discount rate, end of period	11,044,501		0		11,044,501
Effect of cumulative changes in discount rate assumptions, end of period	(577,768)		0		(577,768)
Balance, end of period	$	10,466,733	$	0	$	10,466,733

	Six Months Ended June 30, 2024
	Present Value of Expected Future Policy Benefits
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, beginning of period	$	18,426,207	$	228,788	$	18,654,995
Effect of cumulative changes in discount rate assumptions, beginning of period	331,571		19,521		351,092
Balance at original discount rate, beginning of period	18,757,778		248,309		19,006,087
Effect of assumption update	21,480		(3,643)		17,837
Effect of actual variances from expected experience and other activity	(153,025)		(130)		(153,155)
Adjusted balance, beginning of period	18,626,233		244,536		18,870,769
Issuances	403,742		18,328		422,070
Interest accrual	444,536		4,453		448,989
Benefit payments	(721,798)		(15,519)		(737,317)
Other adjustments	1,103		(150)		953
Balance at original discount rate, end of period	18,753,816		251,648		19,005,464
Effect of cumulative changes in discount rate assumptions, end of period	(1,064,363)		(24,870)		(1,089,233)
Balance, end of period	$	17,689,453	$	226,778	$	17,916,231
Other, end of period					1,633
Total balance, end of period					$	17,917,864

	Six Months Ended June 30, 2024
	Net Liability for Future Policy Benefits (Benefit Reserves)
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, end of period, pre-flooring	$	7,222,720	$	226,778	$	7,449,498
Flooring impact, end of period	44		0		44
Balance, end of period, post-flooring	7,222,764		226,778		7,449,542
Less: Reinsurance recoverables	6,518,048		18,453		6,536,501
Balance after reinsurance recoverables, end of period, post-flooring	$	704,716	$	208,325	$	913,041

	Six Months Ended June 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	(65,230)		(1,257)		(66,487)
Adjusted balance, beginning of period	11,400,670		(1,257)		11,399,413
Issuances	318,867		23,211		342,078
Net premiums / considerations collected	(674,147)		(21,954)		(696,101)
Interest accrual	261,862		0		261,862
Balance at original discount rate, end of period	11,307,252		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 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	(87,110)		4,195		(82,915)
Adjusted balance, beginning of period	18,709,131		233,798		18,942,929
Issuances	318,867		23,211		342,078
Interest accrual	447,387		4,201		451,588
Benefit payments	(716,919)		(14,838)		(731,757)
Other adjustments	1,558		(33)		1,525
Balance at original discount rate, end of period	18,760,024		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 period					1,941
Total balance, end of period					$	18,190,646

	Six Months Ended June 30, 2023
	Net Liability for Future Policy Benefits (Benefit Reserves)
	Term Life		Fixed Annuities		Total
	(in thousands)
Balance, end of period, pre-flooring	$	7,145,646	$	220,094	$	7,365,740
Flooring impact, end of period	0		0		0
Balance, end of period, post-flooring	$	7,145,646	$	220,094	$	7,365,740
Less: Reinsurance recoverables	6,614,071		17,835		6,631,906
Balance after reinsurance recoverables, end of period, post-flooring	$	531,575	$	202,259	$	733,834

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, 2024
	Term Life			Fixed Annuities
	($ in thousands)
Undiscounted expected future gross premiums	$	21,795,982		$	0
Discounted expected future gross premiums (at original discount rate)	$	14,920,888		$	0
Discounted expected future gross premiums (at current discount rate)	$	14,173,894		$	0
Undiscounted expected future benefits and expenses	$	29,155,998		$	337,236
Interest accrual	$	189,591		$	4,453
Gross premiums	$	901,158		$	21,461
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)	5.15		%	3.83		%
Weighted-average interest rate (at current discount rate)	5.53		%	5.47		%

	Six Months Ended June 30, 2023
	Term Life			Fixed 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)	10			7
Weighted-average duration of the liability in years (at current discount rate)	10			6
Weighted-average interest rate (at original discount rate)	5.20		%	3.57		%
Weighted-average interest rate (at current discount rate)	5.28		%	5.27		%

For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2 to the Company's Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

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, respectively.

In the first six months of 2024, there was a $22 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 $21 million charge, reflecting the impact of ceded reinsurance on the affected cohorts.

In the first six months of 2023, there was a $30 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 $30 million charge, reflecting the impact of ceded reinsurance on the affected cohorts.

Deferred Profit Liability

The balances of and changes in DPL as of and for the periods indicated are as follows:

	Six Months Ended June 30,
	2024		2023
	Fixed Annuities
	(in thousands)
Balance, beginning of period, post-flooring	$	14,818	$	18,193
Effect of assumption update	2,110		0
Effect of actual variances from expected experience and other activity	412		(5,092)
Adjusted balance, beginning of period	17,340		13,101
Profits deferred	3,389		2,088
Interest accrual	319		294
Amortization	(1,025)		(973)
Other adjustments	(16)		(8)
Balance, end of period, post-flooring	20,007		14,502
Less: Reinsurance recoverables	1,439		1,558
Balance after reinsurance recoverables, end of period	$	18,568	$	12,944

Additional Insurance Reserves

AIR represents the additional liability for annuitization, death, or other insurance benefits, including guaranteed minimum death benefits ("GMDB") and guaranteed minimum income benefits ("GMIB") contract features, that are above and beyond the contractholder's account balance for certain long-duration life contracts.

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

	Six Months Ended June 30,
	2024		2023
	(in thousands)
Balance, including amounts in AOCI, beginning of period, post-flooring	$	14,280,793	$	12,664,445
Flooring impact and amounts in AOCI	831,583		1,269,237
Balance, excluding amounts in AOCI, beginning of period, pre-flooring	15,112,376		13,933,682
Effect of assumption update	154,058		22,910
Effect of actual variances from expected experience and other activity	161,320		26,204
Adjusted balance, beginning of period	15,427,754		13,982,796
Assessments collected(1)	586,734		513,593
Interest accrual	261,019		237,869
Benefits paid	(158,757)		(151,097)
Balance, excluding amounts in AOCI, end of period, pre-flooring	16,116,750		14,583,161
Flooring impact and amounts in AOCI	(1,642,621)		(1,094,298)
Balance, including amounts in AOCI, end of period, post-flooring	14,474,129		13,488,863
Less: Reinsurance recoverables	14,286,902		13,268,534
Balance after reinsurance recoverables, including amounts in AOCI, end of period	$	187,227	$	220,329

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

	Six Months Ended June 30,
	2024			2023
	($ in thousands)
Interest accrual	$	261,019		$	237,869
Gross assessments	$	903,426		$	785,370
Weighted-average duration of the liability in years (at original discount rate)	22			22
Weighted-average interest rate (at original discount rate)	3.40		%	3.39		%

Future Policy Benefits Reconciliation

The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, DPL, and AIR, 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,
	2024		2023
	(in thousands)
Benefit reserves, end of period, post-flooring	$	7,449,542	$	7,365,740
Deferred profit liability, end of period, post-flooring	20,007		14,502
Additional insurance reserves, including amounts in AOCI, end of period, post-flooring	14,474,129		13,488,863
Subtotal of amounts disclosed above	21,943,678		20,869,105
Other Future policy benefits reserves(1)	1,086,901		1,108,889
Total Future policy benefits	$	23,030,579	$	21,977,994

(1)Primarily 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, DPL, and AIR, 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, 2024
	Revenues(1)
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	901,158	$	0	$	21,461	$	922,619
Deferred profit liability	0		0		(5,187)		(5,187)
Additional insurance reserves	0		903,426		0		903,426
Total	$	901,158	$	903,426	$	16,274	$	1,820,858

	Six Months Ended June 30, 2023
	Revenues(1)
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	900,634	$	0	$	24,200	$	924,834
Deferred profit liability	0		0		3,691		3,691
Additional insurance reserves	0		785,370		0		785,370
Total	$	900,634	$	785,370	$	27,891	$	1,713,895

(1)Represents "Gross premiums" for benefit reserves; "Revenue" for DPL and "Gross assessments" for AIR.

	Six Months Ended June 30, 2024
	Interest Expense
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	189,591	$	0	$	4,453	$	194,044
Deferred profit liability	0		0		319		319
Additional insurance reserves	0		261,019		0		261,019
Total	$	189,591	$	261,019	$	4,772	$	455,382

	Six Months Ended June 30, 2023
	Interest Expense
	Term Life		Variable/ Universal Life		Fixed Annuities		Total
	(in thousands)
Benefit reserves	$	185,524	$	0	$	4,201	$	189,725
Deferred profit liability	0		0		294		294
Additional insurance reserves	0		237,869		0		237,869
Total	$	185,524	$	237,869	$	4,495	$	427,888

POLICYHOLDERS' ACCOUNT BALANCES

Policyholders' Account Balances

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

	Six Months Ended June 30, 2024
	Fixed Annuities			Variable Annuities			Variable Life / Universal Life			Total
	($ in thousands)
Balance, beginning of period	$	6,164,313		$	22,836,765		$	20,167,713		$	49,168,791
Deposits	2,787,898			3,752,999			1,062,220			7,603,117
Interest credited	90,612			207,176			279,382			577,170
Policy charges	(87)			(12,007)			(910,191)			(922,285)
Surrenders and withdrawals	(251,521)			(370,351)			(376,600)			(998,472)
Benefit payments	(24,948)			(12,688)			(33,912)			(71,548)
Net transfers (to) from separate account	0			41,403			169,366			210,769
Change in market value and other adjustments(1)	124,805			1,092,901			65,431			1,283,137
Balance, end of period	8,891,072			27,536,198			20,423,409			56,850,679
Unearned revenue reserve										4,082,015
Other										104,172
Total Policyholders' account balance										$	61,036,866
Weighted-average crediting rate	2.41		%	1.65		%	2.75		%	2.18		%
Net amount at risk(2)	$	20		$	0		$	332,247,799		$	332,247,819
Cash surrender value(3)	$	7,711,710		$	25,912,600		$	19,133,660		$	52,757,970

	Six Months Ended June 30, 2023
	Fixed Annuities(4)			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	1,180,342			2,225,558			1,030,843			4,436,743
Interest credited	44,970			131,119			278,886			454,975
Policy charges	(3,078)			(10,684)			(903,228)			(916,990)
Surrenders and withdrawals	(101,470)			(233,470)			(400,194)			(735,134)
Benefit payments	(25,668)			(15,067)			(42,131)			(82,866)
Net transfers (to) from separate account	0			4,995			1,035,554			1,040,549
Change in market value and other adjustments(1)	69,817			954,563			139,608			1,163,988
Balance, end of period	4,740,737			19,489,046			19,875,703			44,105,486
Unearned revenue reserve										3,401,994
Other(4)										100,675
Total Policyholders' account balance										$	47,608,155
Weighted-average crediting rate	2.15		%	1.46		%	2.89		%	2.20		%
Net amount at risk(2)	$	38		$	0		$	313,218,977		$	313,219,015
Cash surrender value(3)	$	3,975,581		$	17,391,104		$	18,341,323		$	39,708,008

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

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

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

(4)     Prior period amounts have been updated to conform to current period presentation.

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:

	June 30, 2024
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%	$	412	$	3,827	$	9,924	$	707,366	$	721,529
1.00% - 1.99%	448,198		69,557		200,379		78,195		796,329
2.00% - 2.99%	303,024		461,269		562,666		16,064		1,343,023
3.00% - 4.00%	825,027		5,007		7,862		2,261		840,157
Greater than 4.00%	0		0		0		0		0
Total	$	1,576,661	$	539,660	$	780,831	$	803,886	$	3,701,038
Variable Annuities
Less than 1.00%	$	618,306	$	651,182	$	253,768	$	178	$	1,523,434
1.00% - 1.99%	184,745		118,146		2,380		0		305,271
2.00% - 2.99%	19,218		4,138		4,185		0		27,541
3.00% - 4.00%	856,020		5,501		2		0		861,523
Greater than 4.00%	2,059		0		0		0		2,059
Total	$	1,680,348	$	778,967	$	260,335	$	178	$	2,719,828
Variable Life / Universal Life
Less than 1.00%	$	0	$	0	$	0	$	171,754	$	171,754
1.00% - 1.99%	246,886		0		1,678,254		1,580,722		3,505,862
2.00% - 2.99%	28,501		1,479,940		2,693,293		371,908		4,573,642
3.00% - 4.00%	3,841,175		2,170,158		1,107,301		0		7,118,634
Greater than 4.00%	2,114,438		0		0		0		2,114,438
Total	$	6,231,000	$	3,650,098	$	5,478,848	$	2,124,384	$	17,484,330

	June 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(2)
Less than 1.00%	$	0	$	94	$	27	$	180	$	301
1.00% - 1.99%	504,431		75,476		242,780		83,650		906,337
2.00% - 2.99%	261,482		466,971		47,851		10,920		787,224
3.00% - 4.00%	32,738		0		0		0		32,738
Greater than 4.00%	0		0		0		0		0
Total	$	798,651	$	542,541	$	290,658	$	94,750	$	1,726,600
Variable Annuities
Less than 1.00%	$	972,976	$	833,696	$	18,454	$	2	$	1,825,128
1.00% - 1.99%	229,049		2,126		1,094		0		232,269
2.00% - 2.99%	24,531		4,090		0		0		28,621
3.00% - 4.00%	990,408		2,859		0		0		993,267
Greater than 4.00%	2,091		0		0		0		2,091
Total	$	2,219,055	$	842,771	$	19,548	$	2	$	3,081,376
Variable Life / Universal Life
Less than 1.00%	$	0	$	0	$	0	$	9,078	$	9,078
1.00% - 1.99%	163,616		0		2,706,552		363,119		3,233,287
2.00% - 2.99%	21,001		1,399,691		2,765,577		267,001		4,453,270
3.00% - 4.00%	4,555,992		1,985,262		1,110,457		0		7,651,711
Greater than 4.00%	2,159,217		0		0		0		2,159,217
Total	$	6,899,826	$	3,384,953	$	6,582,586	$	639,198	$	17,506,563

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

(2)     Prior period amounts have been updated to conform to current period presentation.

Unearned Revenue Reserve ("URR")

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

	Six Months Ended June 30,
	2024		2023
	Variable Life / Universal Life
	(in thousands)
Balance, beginning of period	$	3,741,426	$	3,067,336
Unearned revenue	430,230		405,732
Amortization expense	(89,640)		(70,981)
Other adjustments	(1)		(93)
Balance, end of period	$	4,082,015	$	3,401,994
Less: Reinsurance recoverables	1,794,071		1,621,229
Balance after reinsurance recoverables, end of period	$	2,287,944	$	1,780,765

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, 2024
	Variable Annuities		Less: Reinsured Market Risk Benefits		Total, Net of Reinsurance
	(in thousands)
Balance, beginning of period	$	3,694,950	$	(917,792)	$	2,777,158
Effect of cumulative changes in non-performance risk	1,068,035		0		1,068,035
Balance, beginning of period, before effect of changes in non-performance risk	4,762,985		(917,792)		3,845,193
Attributed fees collected	556,055		(131,047)		425,008
Claims paid	(31,466)		3,110		(28,356)
Interest accrual	119,334		(28,372)		90,962
Actual in force different from expected	(2,637)		(10,203)		(12,840)
Effect of changes in interest rates	(870,637)		126,966		(743,671)
Effect of changes in equity markets	(1,112,214)		115,601		(996,613)
Effect of assumption update	85,619		3,984		89,603
Issuances	28,190		(1,654)		26,536
Other adjustments	14,784		398		15,182
Effect of changes in current period counterparty non-performance risk	0		(6,098)		(6,098)
Balance, end of period, before effect of changes in non-performance risk	3,550,013		(845,107)		2,704,906
Effect of cumulative changes in non-performance risk	(884,110)		0		(884,110)
Balance, end of period	$	2,665,903	$	(845,107)	$	1,820,796

	Six Months Ended June 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	587,663		(107,425)		480,238
Claims paid	(43,782)		3,681		(40,101)
Interest accrual	160,106		(20,505)		139,601
Actual in force different from expected	36,193		(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 update	330,769		(54,067)		276,702
Issuances	11,403		9,025		20,428
Other adjustments(1)	(17,436)		(638,198)		(655,634)
Effect of changes in current period counterparty non-performance risk	0		(7,445)		(7,445)
Balance, end of period, before effect of changes in non-performance risk	5,357,001		(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

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

In both 2024 and 2023, the Company recognized an unfavorable impact to net income attributable to the actuarial assumption update for direct and assumed MRBs, primarily due to updates to 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.

	June 30, 2024		June 30, 2023
	Variable Annuities
	($ in thousands)
Net amount at risk(1)	$	8,732,024	$	10,067,522
Weighted-average attained age of contractholders	71		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:

	June 30, 2024		June 30, 2023
	Variable Annuities
	(in thousands)
Direct and assumed	$	1,419,114	$	1,165,762
Ceded	1,131,050		1,174,468
Total market risk benefit assets	$	2,550,164	$	2,340,230
Direct and assumed	$	4,085,018	$	4,862,177
Ceded	285,942		227,589
Total market risk benefit liabilities	$	4,370,960	$	5,089,766
Net liability	$	1,820,796	$	2,749,536