Market Risk Benefits (Tables)

9 Months Ended

Sep. 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:


	Nine Months Ended September 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	830,031		(195,952)		634,079
Claims paid	(45,249)		4,781		(40,468)
Interest accrual	171,713		(42,483)		129,230
Actual in force different from expected	18,607		(14,423)		4,184
Effect of changes in interest rates	44,706		51,322		96,028
Effect of changes in equity markets	(1,633,684)		171,342		(1,462,342)
Effect of assumption update	85,619		3,984		89,603
Issuances	51,540		(3,158)		48,382
Other adjustments	14,958		27		14,985
Effect of changes in current period counterparty non-performance risk	0		(8,520)		(8,520)
Balance, end of period, before effect of changes in non-performance risk	4,301,226		(950,872)		3,350,354
Effect of cumulative changes in non-performance risk	(934,425)		0		(934,425)
Balance, end of period	$	3,366,801	$	(950,872)	$	2,415,929


	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

(1) Other adjustments for September 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.


	September 30, 2024		September 30, 2023
	Variable Annuities
	($ in thousands)
Net amount at risk(1)	$	7,321,371	$	12,504,440
Weighted-average attained age of contractholders	71		70

(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, 2024		September 30, 2023
	Variable Annuities
	(in thousands)
Direct and assumed	$	1,286,720	$	1,410,637
Ceded	1,212,514		1,108,597
Total market risk benefit assets	$	2,499,234	$	2,519,234

Direct and assumed	$	4,653,521	$	4,087,498
Ceded	261,642		283,680
Total market risk benefit liabilities	$	4,915,163	$	4,371,178

Net liability	$	2,415,929	$	1,851,944