Market Risk Benefits (Tables)

6 Months Ended

Jun. 30, 2024

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.

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