Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38469 | ||
Entity Registrant Name | Equitable Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 90-0226248 | ||
Entity Address, Address Line One | 1290 Avenue of the Americas | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10104 | ||
City Area Code | 212 | ||
Local Phone Number | 554-1234 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9.8 | ||
Entity Common Stock, Shares Outstanding | 361,809,749 | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant’s proxy statement relating to the 2023 Annual Meeting of Shareholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2022 (the “2023 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001333986 | ||
Common Stock | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | EQH | ||
Security Exchange Name | NYSE | ||
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A | ||
Trading Symbol | EQH PR A | ||
Security Exchange Name | NYSE | ||
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C | ||
Trading Symbol | EQH PR C | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 238 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $72,991 and $73,429) (allowance for credit losses of $24 and $22) | $ 63,361 | $ 78,216 | |
Fixed maturities, at fair value using the fair value option | [1] | 1,508 | 1,641 |
Mortgage loans on real estate (net of allowance for credit losses of $53 and $62) | [1] | 16,481 | 14,033 |
Policy loans | 4,033 | 4,024 | |
Other equity investments | [1] | 3,152 | 2,975 |
Trading securities, at fair value | 677 | 631 | |
Other invested assets | [1] | 3,885 | 3,591 |
Total investments | 93,097 | 105,111 | |
Cash and cash equivalents | [1] | 4,281 | 5,188 |
Cash and securities segregated, at fair value | 1,522 | 1,504 | |
Broker-dealer related receivables | 2,338 | 2,599 | |
Deferred policy acquisition costs | 8,158 | 5,491 | |
Goodwill and other intangible assets, net | 5,482 | 4,728 | |
Amounts due from reinsurers (allowance for credit losses of $6 and $5) (includes amounts accounted for at fair value of $4,681 and $5,813) | [2] | 17,201 | 14,679 |
GMIB reinsurance contract asset, at fair value | 1,229 | 1,848 | |
Current and deferred income taxes | 714 | 195 | |
Other assets | [1] | 4,031 | 3,613 |
Assets held-for-sale | 562 | 0 | |
Separate Accounts assets | 114,853 | 147,306 | |
Total Assets | 253,468 | 292,262 | |
LIABILITIES | |||
Policyholders’ account balances | 83,855 | 79,357 | |
Future policy benefits and other policyholders' liabilities | 34,124 | 36,717 | |
Broker-dealer related payables | 715 | 1,283 | |
Customer related payables | 3,323 | 3,600 | |
Amounts due to reinsurers | 1,533 | 1,381 | |
Short-term debt | 759 | 92 | |
Long-term debt | 3,322 | 3,839 | |
Notes issued by consolidated variable interest entities, at fair value using the fair value option | [1] | 1,150 | 1,191 |
Other liabilities | [1] | 5,873 | 3,933 |
Liabilities held-for-sale | 108 | 0 | |
Separate Accounts liabilities | 114,853 | 147,306 | |
Total Liabilities | 249,615 | 278,699 | |
Redeemable noncontrolling interest | [1],[3] | 455 | 468 |
Commitments and contingent liabilities | [4] | ||
Equity attributable to Holdings: | |||
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference | 1,562 | 1,562 | |
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 508,418,442 and 520,918,331 shares issued, respectively; 365,081,940 and 391,290,224 shares outstanding, respectively | 4 | 4 | |
Additional paid-in capital | 2,299 | 1,919 | |
Treasury stock, at cost, 143,336,502 and 129,628,107 shares, respectively | (3,297) | (2,850) | |
Retained earnings | 9,924 | 8,880 | |
Accumulated other comprehensive income (loss) | (8,834) | 2,004 | |
Total equity attributable to Holdings | 1,658 | 11,519 | |
Noncontrolling interest | 1,740 | 1,576 | |
Total Equity | 3,398 | 13,095 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 253,468 | $ 292,262 | |
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.[2]Represents the fair value of the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction and Note 8 of the Notes to these Consolidated Financial Statements.[3]See Note 22 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest.(3) Represents the fair value of the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction and Note 8 of the Notes to these Consolidated Financial Statements.[4]See Note 17 of the Notes to these Consolidated Financial Statements for details of commitments and contingent liabilities. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed maturities available-for-sale, amortized cost | $ 72,991,000,000 | $ 73,429,000,000 |
Fixed maturities available-for-sale, allowance for credit losses | 24,000,000 | 22,000,000 |
Mortgage loans on real estate, allowance for credit losses | 129,000,000 | 62,000,000 |
Reinsurance recoverable, allowance for credit loss | 10,000,000 | 5,000,000 |
Reinsurance recoverable, fair value | $ 4,114,000,000 | $ 5,813,000,000 |
Preferred stock par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 508,418,442 | 520,918,331 |
Common stock outstanding (in shares) | 365,081,940 | 391,290,224 |
Treasury stock (in shares) | 143,336,502 | 129,628,107 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES | |||
Policy charges and fee income | $ 3,241 | $ 3,637 | $ 3,735 |
Premiums | 994 | 960 | 997 |
Net derivative gains (losses) | 1,696 | (4,465) | (1,722) |
Net investment income (loss) | 3,315 | 3,846 | 3,477 |
Investment gains (losses), net: | |||
Credit and intent to sell losses on available for sale debt securities and loans | (314) | 2 | (58) |
Other investment gains (losses), net | (631) | 866 | 802 |
Total investment gains (losses), net | (945) | 868 | 744 |
Investment management and service fees | 4,891 | 5,395 | 4,608 |
Other income | 825 | 795 | 576 |
Total revenues | 14,017 | 11,036 | 12,415 |
BENEFITS AND OTHER DEDUCTIONS | |||
Policyholders’ benefits | 3,385 | 3,218 | 5,326 |
Interest credited to policyholders’ account balances | 1,409 | 1,219 | 1,222 |
Compensation and benefits | 2,199 | 2,360 | 2,096 |
Commissions and distribution-related payments | 1,567 | 1,662 | 1,351 |
Interest expense | 201 | 244 | 200 |
Amortization of deferred policy acquisition costs | 542 | 393 | 1,613 |
Other operating costs and expenses | 2,189 | 2,109 | 1,700 |
Total benefits and other deductions | 11,492 | 11,205 | 13,508 |
Income (loss) from continuing operations, before income taxes | 2,525 | (169) | (1,093) |
Income tax (expense) benefit | (499) | 145 | 744 |
Net income (loss) | 2,026 | (24) | (349) |
Less: Net income (loss) attributable to the noncontrolling interest | 241 | 415 | 299 |
Net income (loss) attributable to Holdings | 1,785 | (439) | (648) |
Less: Preferred stock dividends | 80 | 79 | 53 |
Net income (loss) available to Holdings’ common shareholders | 1,705 | (518) | (701) |
Net income (loss) available to Holdings’ common shareholders | $ 1,705 | $ (518) | $ (701) |
Net income (loss) applicable to Holdings’ common shareholders per common share: | |||
Basic (in dollars per share) | $ 4.52 | $ (1.24) | $ (1.56) |
Diluted (in dollars per share) | $ 4.49 | $ (1.24) | $ (1.56) |
Weighted average common shares outstanding (in millions): | |||
Basic (in shares) | 377.6 | 417.4 | 450.4 |
Diluted (in shares) | 379.9 | 417.4 | 450.4 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 2,026 | $ (24) | $ (349) |
Other comprehensive income (loss) net of income taxes: | |||
Change in unrealized gains (losses), net of reclassification adjustment | (10,826) | (2,113) | 2,956 |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 18 | 266 | 48 |
Foreign currency translation adjustment | (46) | (11) | 22 |
Total other comprehensive income (loss), net of income taxes | (10,854) | (1,858) | 3,026 |
Comprehensive income (loss) | (8,828) | (1,882) | 2,677 |
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 225 | 416 | 306 |
Comprehensive income (loss) attributable to Holdings | $ (9,053) | $ (2,298) | $ 2,371 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Cumulative effect of period of adoption, adjusted balance | Total Holdings Equity | Total Holdings Equity Cumulative effect of period of adoption, adjusted balance | Preferred Stock and Additional Paid-In Capital | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Retained Earnings Cumulative effect of period of adoption, adjusted balance | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning of year at Dec. 31, 2019 | $ 15,047 | $ (30) | $ 13,456 | $ (30) | $ 775 | $ 5 | $ 1,920 | $ (1,832) | $ 11,744 | $ (30) | $ 844 | $ 1,591 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock compensation | 113 | 44 | 27 | 17 | 69 | |||||||
Purchase of treasury stock | (430) | (430) | (430) | |||||||||
Reissuance of treasury stock | (17) | (17) | (17) | |||||||||
Repurchase of AB Holding units | (101) | (48) | (48) | (53) | ||||||||
Dividends paid to noncontrolling interest | (305) | (305) | ||||||||||
Dividends on common stock | (297) | (297) | (297) | |||||||||
Dividends on preferred stock | (53) | (53) | (53) | |||||||||
Issuance of preferred stock | 494 | 494 | 494 | |||||||||
Net income (loss) | (346) | (648) | (648) | 302 | ||||||||
Other comprehensive income (loss) | 3,026 | 3,019 | 3,019 | 7 | ||||||||
Other | 76 | 86 | 86 | (10) | ||||||||
End of year at Dec. 31, 2020 | 17,177 | 15,576 | 1,269 | 5 | 1,985 | (2,245) | 10,699 | 3,863 | 1,601 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock compensation | 286 | 66 | 15 | 51 | 220 | |||||||
Purchase of treasury stock | (1,638) | (1,638) | (1) | (27) | (1,610) | |||||||
Reissuance of treasury stock | (51) | (51) | (51) | |||||||||
Retirement of common stock | 0 | 0 | 954 | (954) | ||||||||
Repurchase of AB Holding units | (262) | (262) | ||||||||||
Dividends paid to noncontrolling interest | (393) | (393) | ||||||||||
Dividends on common stock | (296) | (296) | (296) | |||||||||
Dividends on preferred stock | (79) | (79) | (79) | |||||||||
Issuance of preferred stock | 293 | 293 | 293 | |||||||||
Net income (loss) | (29) | (439) | (439) | 410 | ||||||||
Other comprehensive income (loss) | (1,858) | (1,859) | (1,859) | 1 | ||||||||
Other | (55) | (54) | (54) | 0 | (1) | |||||||
End of year at Dec. 31, 2021 | 13,095 | 11,519 | 1,562 | 4 | 1,919 | (2,850) | 8,880 | 2,004 | 1,576 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock compensation | 324 | 125 | 87 | 38 | 199 | |||||||
Purchase of treasury stock | (849) | (849) | (34) | (815) | ||||||||
Reissuance of treasury stock | (38) | (38) | (38) | |||||||||
Retirement of common stock | 0 | 0 | 330 | (330) | ||||||||
Repurchase of AB Holding units | (211) | (211) | ||||||||||
Dividends paid to noncontrolling interest | (401) | (401) | ||||||||||
Issuance of AB Units for CarVal acquisition | 589 | 314 | 314 | 275 | ||||||||
Dividends on common stock | (294) | (294) | (294) | |||||||||
Dividends on preferred stock | (80) | (80) | (80) | |||||||||
Net income (loss) | 2,085 | 1,785 | 1,785 | 300 | ||||||||
Other comprehensive income (loss) | (10,854) | (10,838) | (10,838) | (16) | ||||||||
Other | 32 | 14 | 13 | 1 | 18 | |||||||
End of year at Dec. 31, 2022 | $ 3,398 | $ 1,658 | $ 1,562 | $ 4 | $ 2,299 | $ (3,297) | $ 9,924 | $ (8,834) | $ 1,740 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per common share (in dollars per share) | $ 0.78 | $ 0.71 | $ 0.66 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of Cash Flows [Abstract] | ||||
Net income (loss) | $ 2,026 | $ (24) | $ (349) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Interest credited to policyholders’ account balances | 1,409 | 1,219 | 1,222 | |
Policy charges and fee income | (3,241) | (3,637) | (3,735) | |
Net derivative (gains) losses | (1,696) | 4,465 | 1,722 | |
Credit and intent to sell losses on available for sale debt securities and loans | 314 | (2) | 58 | |
Investment (gains) losses, net | 631 | (863) | (872) | |
(Gains) losses on businesses held-for-sale | 7 | (3) | 69 | |
Realized and unrealized (gains) losses on trading securities | 198 | 26 | (170) | |
Non-cash long-term incentive compensation expense | 286 | 226 | 210 | |
Amortization and depreciation | 814 | 497 | 1,757 | |
Equity (income) loss from limited partnerships | (146) | (553) | (83) | |
Changes in: | ||||
Net broker-dealer and customer related receivables/payables | 189 | (131) | 667 | |
Reinsurance recoverable | [1] | (1,106) | (1,077) | (401) |
Segregated cash and securities, net | (18) | 250 | (659) | |
Capitalization of deferred policy acquisition costs | (842) | (875) | (670) | |
Future policy benefits | 44 | (299) | 1,953 | |
Current and deferred income taxes | 372 | (451) | (571) | |
Other, net | (92) | 476 | (209) | |
Net cash provided by (used in) operating activities | (851) | (756) | (61) | |
Proceeds from the sale/maturity/prepayment of: | ||||
Fixed maturities, available-for-sale | 15,547 | 34,434 | 18,986 | |
Fixed maturities, at fair value using the fair value option | 525 | 763 | 7 | |
Mortgage loans on real estate | 1,154 | 1,696 | 630 | |
Trading account securities | 371 | 5,159 | 2,162 | |
Real estate joint ventures | 0 | 0 | 55 | |
Short term investments | 575 | 87 | 1,497 | |
Other | 573 | 1,716 | 1,005 | |
Payment for the purchase/origination of: | ||||
Fixed maturities, available-for-sale | (18,502) | (43,344) | (28,197) | |
Fixed maturities, at fair value using the fair value option | (488) | (1,792) | (311) | |
Mortgage loans on real estate | (3,683) | (2,546) | (1,747) | |
Trading account securities | (521) | (244) | (708) | |
Short term investments | (1,502) | (18) | (1,098) | |
Other | (1,173) | (2,553) | (1,167) | |
Purchase of business, net of cash acquired | 40 | 0 | 0 | |
Cash from the sale of business, net of cash sold | 0 | 215 | 164 | |
Cash settlements related to derivative instruments, net | (316) | (5,937) | 1,166 | |
Investment in capitalized software, leasehold improvements and EDP equipment | (167) | (120) | (107) | |
Other, net | 80 | (205) | (160) | |
Net cash provided by (used in) investing activities | (7,487) | (12,689) | (7,823) | |
Cash flows from financing activities: | ||||
Deposits | 16,367 | 17,521 | 11,446 | |
Withdrawals | (6,962) | (7,069) | (4,332) | |
Transfers (to) from Separate Accounts | 1,447 | 1,985 | 2,452 | |
Change in short-term financings | 147 | 92 | 0 | |
Change in collateralized pledged assets | 36 | 34 | (139) | |
Change in collateralized pledged liabilities | (1,575) | 1,413 | 848 | |
(Decrease) increase in overdrafts payable | (25) | 16 | (13) | |
Repayment of long-term debt | 0 | (280) | 0 | |
Repayment of acquisition-related debt obligation | (43) | 0 | 0 | |
Proceeds from notes issued by consolidated VIEs | 6 | 873 | 313 | |
Dividends paid on common stock | (294) | (296) | (297) | |
Dividends paid on preferred stock | (80) | (79) | (53) | |
Issuance of preferred stock | 0 | 293 | 494 | |
Purchases of AB Holding Units to fund long-term incentive compensation plan awards | (211) | (262) | (149) | |
Purchase of treasury shares | (849) | (1,637) | (430) | |
Purchases (redemptions) of noncontrolling interests of consolidated company-sponsored investment funds | 52 | 346 | (210) | |
Distribution to noncontrolling interest of consolidated subsidiaries | (401) | (392) | (304) | |
Other, net | 31 | (47) | 48 | |
Net cash provided by (used in) financing activities | 7,646 | 12,511 | 9,674 | |
Effect of exchange rate changes on cash and cash equivalents | (56) | (18) | 23 | |
Change in cash and cash equivalents | (748) | (952) | 1,813 | |
Cash and cash equivalents, beginning of year | 5,188 | 6,179 | 4,405 | |
Change in cash of businesses held-for-sale | (159) | (39) | (39) | |
Cash and cash equivalents, end of year | 4,281 | 5,188 | 6,179 | |
Supplemental cash flow information: | ||||
Interest paid | 263 | 215 | 215 | |
Income taxes (refunded) paid | 89 | 305 | (173) | |
Non-cash transactions from investing and financing activities: | ||||
Transfer of assets to reinsurer | $ (2,762) | $ (9,023) | $ 0 | |
[1]Amount includes cash paid for Global Atlantic Transaction in 2022 of $7 million and for Venerable Transaction in 2021 of $494 million. See Note 1 of the Notes to these Consolidated Financial Statements. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Massachusetts Domiciled Insurance Company | |
Statement of Cash Flows [Abstract] | |
Cash paid for reinsurance transaction | $ 7 |
Cash paid for reinsurance transaction | 7 |
Venerable Reinsurance Transaction | |
Statement of Cash Flows [Abstract] | |
Cash paid for reinsurance transaction | 494 |
Cash paid for reinsurance transaction | $ 494 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Equitable Holdings, Inc. is the holding company for a diversified financial services organization. The Company conducts operations in four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Company’s management evaluates the performance of each of these segments independently. • The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. • The Group Retirement segment offers tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities and not-for-profit entities, as well as small and medium-sized businesses. • The Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels - Institutional, Retail and Private Wealth - and distributes its institutional research products and solutions through Bernstein Research Services. The Investment Management and Research segment reflects the business of AB Holding and ABLP and their subsidiaries (collectively, AB). • The Protection Solutions segment includes the Company’s life insurance and group employee benefits businesses. The life insurance business offers a variety of VUL, IUL and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of life, short- and long-term disability, dental and vision insurance products to small and medium-size businesses across the United States. The Company reports certain activities and items that are not included in our segments in Corporate and Other. Corporate and Other includes certain of our financing and investment expenses. It also includes: Equitable Advisors broker-dealer business, closed block of life insurance (the “Closed Block”), run-off variable annuity reinsurance business, run-off group pension business, run-off health business, benefit plans for our employees, certain strategic investments and certain unallocated items, including capital and related investments, interest expense and corporate expense. AB’s results of operations are reflected in the Investment Management and Research segment. Accordingly, Corporate and Other does not include any items applicable to AB. Global Atlantic Reinsurance Transaction On October 3, 2022, Equitable Financial completed the transactions (the “Global Atlantic Transaction”) contemplated by the previously announced Master Transaction Agreement, dated August 16, 2022, by and between Equitable Financial and First Allmerica Financial Life Insurance Company, a Massachusetts-domiciled insurance company (the “Reinsurer”), a wholly owned subsidiary of Global Atlantic Financial Group. At the closing of the Global Atlantic Transaction, Equitable Financial and the Reinsurer entered into a Coinsurance and Modified Coinsurance Agreement (the “EQUI-VEST Reinsurance Agreement”), pursuant to which Equitable Financial ceded to the Reinsurer, on a combined coinsurance and modified coinsurance basis, a 50% quota share of approximately 360,000 legacy Group EQUI-VEST deferred variable annuity contracts issued by Equitable Financial between 1980 and 2008, which predominately include Equitable Financial’s highest guaranteed general account crediting rates of 3%, supported by general account assets of approximately $4 billion and $5 billion of Separate Account value (the “Reinsured Contracts”). The Reinsured Contracts predominately include certain of Equitable Financial’s contracts that offer the highest guaranteed general account crediting rates of 3%. At the closing of the Global Atlantic Transaction, the Reinsurer deposited assets supporting the general account liabilities relating to the Reinsured Contracts into a trust account for the benefit of Equitable Financial, which assets will secure its obligations to Equitable Financial under the EQUI-VEST Reinsurance Agreement. Commonwealth Annuity and Life Insurance Company, an insurance company domiciled in the Commonwealth of Massachusetts and affiliate of the Reinsurer (“Commonwealth”), provided a guarantee of the Reinsurer’s payment obligation to Equitable Financial under the EQUI-VEST Reinsurance Agreement. The Company transferred assets of $2.8 billion, including primarily available-for-sale securities, cash and policy loans as the consideration for the reinsurance transaction. In addition, the Company recorded $4.1 billion of direct insurance liabilities ceded under the reinsurance contract included in amounts due from reinsurers and $1.2 billion of deferred gain on cost of reinsurance included within other liabilities. Additionally, $5.3 billion of Separate Account liabilities were ceded under a modified coinsurance portion of the agreement. Carval Acquisition As of December 31, 2022 and 2021, the Company’s economic interest in AB was approximately 61% and 65%, respectively. The slight decrease was due to the issuance of AB Units relating to AB’s 100% acquisition of CarVal Investments L.P. (“CarVal”). On July 1, 2022, AB issued 3.2 million AB Units (with a fair value of $133 million) with the remaining 12.1 million AB units (with a fair value of $456 million) issued on November 1, 2022. AB also recorded a contingent consideration payable of $229 million (to be paid predominantly in AB Units) based on CarVal achieving certain performance objectives over a six-year period ending December 31, 2027. The General Partner of AB is a wholly-owned subsidiary of the Company. Because the General Partner has the authority to manage and control the business of AB, AB is consolidated in the Company’s financial statements for all periods presented. Venerable Reinsurance Transaction On June 1, 2021, Holdings completed the sale (the “Venerable Transaction”) of CS Life, to Venerable Insurance and Annuity Company, an insurance company domiciled in Iowa (“VIAC”), pursuant to the Master Transaction Agreement, dated October 27, 2020 (the “Master Transaction Agreement”), among the Company, VIAC and, solely with respect to Article XIV thereof, Venerable Holdings, Inc., a Delaware corporation (“Venerable”). Pursuant to the Master Transaction Agreement, immediately prior to the closing of the Venerable Transaction, CS Life effected the recapture of all of the business that was ceded to CS Life Re Company, a wholly owned subsidiary of CS Life (“Reinsurance Subsidiary”), and sold 100% of the equity of the Reinsurance Subsidiary to another wholly owned subsidiary of the Company. VIAC paid the Company a cash purchase price of $215 million for CS Life at closing. The post-closing true-up adjustment was immaterial. VIAC also issued a surplus note in aggregate principal amount of $60 million, to Equitable Financial Life Insurance Company, a New York-domiciled life insurance company and a wholly owned subsidiary of Holdings, for cash consideration. Immediately following the closing of the Venerable Transaction, CS Life and Equitable Financial entered into a coinsurance and modified coinsurance agreement (the “Reinsurance Agreement”), pursuant to which Equitable Financial ceded to CS Life, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate Guaranteed Minimum Income Benefit and/or Guaranteed Minimum Death Benefit guarantees. At the closing of the Transaction, CS Life deposited assets supporting the general account liabilities relating to the Block into a trust account for the benefit of Equitable Financial, which assets will secure its obligations to Equitable Financial under the Reinsurance Agreement. At the closing of the Transaction, ABLP, entered into an investment advisory agreement with CS Life pursuant to which ABLP will serve as the preferred investment manager of the general account assets transferred to the trust account. The Company transferred assets of $9.5 billion, including primarily available for sale securities and cash, to a collateral trust account as the consideration for the reinsurance transaction. In addition, the Company recorded $9.6 billion of direct insurance liabilities ceded under the reinsurance contract, of which $5.3 billion is accounted at fair value, as the reinsurance of GMxB with no lapse guarantee riders are embedded derivatives. Additionally, $16.9 billion of Separate Account liabilities were ceded under a modified coinsurance portion of the agreement. In addition, upon the completion of the Venerable Transaction, EIMG acquired an approximate 9.09% equity interest in Venerable’s parent holding company, VA Capital Company LLC. In connection with such investment, EIMG designated a member to the Board of Managers of VA Capital Company LLC. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those VIEs that meet the requirements for consolidation. Financial results in the historical consolidated financial statements may not be indicative of the results of operations, comprehensive income (loss), financial position, equity or cash flows that would have been achieved had we operated as a separate, standalone entity during the reporting periods presented. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. The years “2022”, “2021” and “2020” refer to the years ended December 31, 2022, 2021 and 2020, respectively. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of December 31, 2022, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company has finalized key accounting policy decisions and executed the intended implementation plan including modifying actuarial valuation systems, modernizing key finance processes including data sourcing, analytical procedures and reporting, and updating internal controls. The Company is ready for adoption of the guidance as of January 1, 2023 using the modified retrospective approach, except for Market Risk Benefits (MRBs) which will use the full retrospective approach. Based upon the modified retrospective transition method, the Company estimates that the January 1, 2021 transition date impact from LDTI adoption is a decrease in total U.S. GAAP equity of $3.3 billion. This is primarily due to accounting for our variable annuity guarantees that are not currently measured at fair value as MRBs in the extremely low interest rate environment as of January 1, 2021. For full year 2021, U.S. GAAP net income under LDTI basis is estimated to be $2.2 billion higher than the previously reported 2021 net income of ($440) million due to better alignment between MRB liabilities and our economic hedging program. As of December 31, 2021, the impact on total equity is a decrease of approximately $1.1 billion and in line with our prior estimates. The U.S. GAAP net income for full year 2022 is estimated to be positive and less volatile under LDTI. The estimated impact to total U.S. GAAP equity as of December 31, 2022 is expected to be significantly mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business that results in a positive impact from accounting for its variable annuity guarantees as MRBs under the guidance at December 31, 2022. Investments The carrying values of fixed maturities classified as AFS are reported at fair value. Changes in fair value are reported in OCI, net of allowance for credit losses, policy related amounts and deferred income taxes. Changes in credit losses are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include REIT, perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. Effective January 1, 2021, the Company began classifying certain preferred stock as equity securities to better reflect the economics and nature of these securities. These preferred stock securities are reported in other equity investments. The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit losses which are evaluated in accordance with the new financial instruments credit losses guidance. Integral to this review is an assessment made each quarter, on a security-by-security basis, by the IUS Committee, of various indicators of credit deterioration to determine whether the investment security has experienced a credit loss. This assessment includes, but is not limited to, consideration of the severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, and the financial strength, liquidity and continued viability of the issuer. The Company recognizes an allowance for credit losses on AFS debt securities with a corresponding adjustment to earnings rather than a direct write down that reduces the cost basis of the investment, and credit losses are limited to the amount by which the security’s amortized cost basis exceeds its fair value. Any improvements in estimated credit losses on AFS debt securities are recognized immediately in earnings. Management does not use the length of time a security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist. When the Company determines that there is more than 50% likelihood that it is not going to recover the principal and interest cash flows related to an AFS debt security, the security is placed on nonaccrual status and the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in a timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable. If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting allowance is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value. Write-offs of AFS debt securities are recorded when all or a portion of a financial asset is deemed uncollectible. Full or partial write-offs are recorded as reductions to the amortized cost basis of the AFS debt security and deducted from the allowance in the period in which the financial assets are deemed uncollectible. The Company elected to reverse accrued interest deemed uncollectible as a reversal of interest income. In instances where the Company collects cash that it has previously written off, the recovery will be recognized through earnings or as a reduction of the amortized cost basis for interest and principal, respectively. Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag. Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss). The carrying values of certain fixed maturities are reported at fair value where the fair value option has been elected. The fair value option allows the Company to elect fair value as an alternative measurement for selected financial assets and financial liabilities not otherwise reported at fair value. Such elections have been made to help mitigate volatility in earnings that result from different measurement attributes. Electing the fair value option also allows the consistent accounting in net investment income (loss) for certain assets and liabilities. Changes in fair value of fixed maturities that have elected the fair value option are reflected in realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss). Notes issued by consolidated variable interest entities represent notes issued by certain asset-backed investment vehicles, primarily CLOs, which we are required to consolidate. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs. The Company has elected the fair value option for the majority of these notes and has based the fair value on the corresponding debt security collateral. Changes in fair value are reported in net investment income (loss). COLI has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. As of December 31, 2022 and 2021, the carrying value of COLI was $886 million and $1.0 billion, respectively, and is reported in other invested assets in the consolidated balance sheets. Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. Cash and securities segregated primarily includes U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of its brokerage customers under Rule 15c3-3 of the Exchange Act. Securities Sold under Agreements to Repurchase Securities sold under agreements to repurchase involve the temporary exchange of securities for cash or other collateral of equivalent value, with agreement to redeliver a like quantity of the same or similar securities at a future date prior to maturity at a fixed and determinable price. Securities sold under agreements to repurchase transactions are conducted by the Company under a standardized securities industry master agreement, amended to suit the requirements of each respective counterparty. Transfers of securities under these agreements to repurchase are evaluated by the Company to determine whether they satisfy the criteria for accounting treatment as secured borrowing arrangements. Agreements not meeting the criteria would require recognition of the transferred securities as sales with related forward repurchase commitments. All of the Company’s securities repurchase transactions are accounted for as secured borrowings with the related obligations distinctly captioned in the consolidated balance sheets on a gross basis. As of December 31, 2022 and 2021 the Company had no Securities sold under agreements to repurchase outstanding. During the year ended December 31, 2021 there was no activity on Securities sold under agreements to repurchase. Derivatives Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the OTC market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “other invested assets” or as liabilities within “other liabilities.” The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities. The Company has designated certain derivatives it uses to economically manage asset/liability risk in relationships which qualify for hedge accounting. To qualify for hedge accounting, we formally document our designation at inception of the hedge relationship as a cash flow, fair value or net investment hedge. This documentation includes our risk management objective and strategy for undertaking the hedging transaction. The Company identifies how the hedging instrument is expected to offset the designated risks related to the hedged item and the method that will be used to retrospectively and prospectively assess the hedge effectiveness. To qualify for hedge accounting, a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed and documented at inception and periodically throughout the life of the hedge accounting relationship. The Company does not exclude any components of the hedging instrument from the effectiveness assessments and therefore does not separately measure or account for any excluded components of the hedging instrument. While in cash flow hedge relationships, any periodic net receipts and payments from the hedging instrument are included in the income or expense line that the hedged item’s periodic income or expense is recognized. Other changes in the fair value of the hedging instrument while in a cash flow hedging relationship are reported within OCI. These amounts are deferred in AOCI until they are reclassified to Net income (loss). The reclassified amount offsets the effect of the cash flows on Net income (loss) in the same period when the hedged item affects earnings and on the same line as the hedged item. We discontinue cash flow hedge accounting prospectively when the Company determines: (1) the hedging instrument is no longer highly effective in offsetting changes in the cash flow from the hedged risk, (2) the hedged item is no longer probable of occurring within two months of their forecast, or (3) the hedging instrument is otherwise redesignated from the hedging relationship. Changes in the fair value of the derivative after discontinuation of cash flow hedge accounting are accounted for as freestanding derivative positions not designated to hedge accounting relationships unless and until the derivative is redesignated to a hedge accounting relationship. When cash flow hedge accounting is discontinued the amounts deferred in AOCI during the hedge relationship continue to be deferred in AOCI, as long as the hedged items continue to be probable of occurring within two months of their forecast, until the hedged item affects Net income (loss). Any amount deferred in AOCI for hedged items which are no longer probable of occurring within two months of their forecast will be reclassified to “net derivative gains (losses)” at that time. The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. Once those criteria are met the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. Mortgage Loans on Real Estate Mortgage loans are stated at unpaid principal balances, net of unamortized discounts and the allowance for credit losses. The Company calculates the allowance for credit losses in accordance with the CECL model in order to provide for the risk of credit losses in the lending process. Expected credit losses for loans with similar risk characteristics are estimated on a collective (i.e., pool) basis in order to meet CECL’s risk of loss concept which requires the Company to consider possibilities of loss, even if remote. For collectively evaluated mortgages, the Company estimates the allowance for credit losses based on the amortized cost basis of its mortgages over their expected life using a PD / LGD model. The PD / LGD model incorporates the Company’s reasonable and supportable forecast of macroeconomic information over a specified period. The length of the reasonable and supportable forecast period is reassessed on a quarterly basis and may be adjusted as appropriate over time to be consistent with macroeconomic conditions and the environment as of the reporting date. For periods beyond the reasonable and supportable forecast period, the model reverts to historical loss information. The PD and LGD are estimated at the loan-level based on loans’ current and forecasted risk characteristics as well as macroeconomic forecasts. The PD is estimated using both macroeconomic conditions as well as individual loan risk characteristics including LTV ratios, DSC ratios, seasoning, collateral type, geography, and underlying credit. The LGD is driven primarily by the type and value of collateral, and secondarily by expected liquidation costs and time to recovery. For individually evaluated mortgages, the Company continues to recognize a valuation allowance on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value. The CECL model is configured to the Company’s specifications and takes into consideration the detailed risk attributes of each discrete loan in the mortgage portfolio which include, but are not limited to the following: • LTV ratio – Derived from current loan balance divided by the fair market value of the property. An LTV ratio in excess of 100% indicates an underwater mortgage. • DSC ratio – Derived from actual operating earnings divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt. • Occupancy – Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. • Lease expirations – The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor. • Other – Any other factors such as maturity, borrower/tenant related issues, payment status, property condition, or current economic conditions may call into question the performance of the loan. Mortgage loans that do not share similar risk characteristics with other loans in the portfolio are individually evaluated quarterly by the Company’s IUS Committee. The allowance for credit losses on these individually evaluated mortgages is a loan-specific reserve as a result of the loan review process that is recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral. The individually assessed allowance for mortgage loans can increase or decrease from period to period based on such factors. Individually assessed loans may include, but are not limited to, mortgages that have deteriorated in credit quality such as a TDR and reasonably expected TDRs, mortgages for which foreclosure is probable, and mortgages which have been classified as “potential problem” or “problem” loans within the Company’s IUS Committee processes as described below. Within the IUS process, commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgage loans. Based on its monthly monitoring of mortgages, a class of potential problem mortgage loans are also identified, consisting of mortgage loans not currently classified as problem mortgage loans but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being modified. The decision whether to classify a performing mortgage loan as a potential problem involves judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property. Individually assessed mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is not probable. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured to where the collection of interest is considered likely. The Company charges off loan balances and accrued interest that are deemed uncollectible. The components of amortized cost for mortgage loans on the consolidated balance sheets excludes accrued interest amounts because the Company presents accrued interest receivables within other assets. Once mortgage loans are placed on nonaccrual status, the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in the timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable. Held-for-Sale The Company classifies assets and liabilities (“disposal group”) as held-for-sale when the specified criteria in Accounting Standards Codification 360, Property, Plant and Equipment , are met. Assets and liabilities held-for-sale are presented separately within the Consolidated Balance Sheets. Depreciation of property, plant and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held-for-sale. If, in any period, the carrying value of the disposal group exceeds the estimated fair value, less costs to sell, an impairment loss will be recognized. See Note 23 of the Notes to these Consolidated Financial Statements for additional information regarding the disposal group. Troubled Debt Restructuring The Company invests in commercial and agricultural mortgage loans included in the balance sheet as mortgage loans on real estate and privately negotiated fixed maturities included in the balance sheet as fixed maturities AFS. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific credit allowance recorded in connection with the TDR. A credit allowance may have been recorded prior to the period when the loan is modified in a TDR. Accordingly, the carrying value (net of the allowance) before and after modification through a TDR may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. Net Investment Income (Loss), Investment Gains (Losses) Net and Unrealized Investment Gains (Losses) Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the allowance for credit losses are included in investment gains (losses), net. Realized and unrealized holding gains (losses) on trading and equity securities are reflected in net investment income (loss). Unrealized investment gains (losses) on fixed maturities designated as AFS held by the Company are accounted for as a separate component of AOCI, net of related deferred income taxes, as are amounts attributable to certain pension operations, Closed Block’s policyholders’ dividend obligation, insurance liability loss recognition, DAC related to UL policies, investment-type products and participating traditional life policies. Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any change in fair value of policyholders’ account balances and future policy benefits. Fair Value of Financial Instruments See Note 8 of the Notes to these Consolidated Financial Statements for additional information regarding determining the fair value of financial instruments. Recognition of Insurance Income and Related Expenses Deposits related to UL and investment-type contracts are reported as deposits to policyholders’ account balances. Revenues from these contracts consist of fees assessed during the period against policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders’ account balances. Premiums from participating and non-participating traditional life and annuity policies with life conti |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Fixed Maturities AFS The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of December 31, 2022 and 2021 was $591 million and $506 million, respectively. There was no accrued interest written off for AFS fixed maturities for the years ended December 31, 2022, 2021 and 2020. The following tables provide information relating to the Company’s fixed maturities classified as AFS. AFS Fixed Maturities by Classification Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) December 31, 2022 Fixed Maturities: Corporate (1) $ 50,712 $ 24 $ 89 $ 7,206 $ 43,571 U.S. Treasury, government and agency 7,054 — 1 1,218 5,837 States and political subdivisions 609 — 7 89 527 Foreign governments 985 — 2 151 836 Residential mortgage-backed (2) 908 — 1 87 822 Asset-backed (3) 8,859 — 4 373 8,490 Commercial mortgage-backed 3,823 — — 588 3,235 Redeemable preferred stock 41 — 2 — 43 Total at December 31, 2022 $ 72,991 $ 24 $ 106 $ 9,712 $ 63,361 December 31, 2021: Fixed Maturities: Corporate (1) $ 50,172 $ 22 $ 2,601 $ 240 $ 52,511 U.S. Treasury, government and agency 13,056 — 2,344 15 15,385 States and political subdivisions 586 — 78 2 662 Foreign governments 1,124 — 42 14 1,152 Residential mortgage-backed (2) 90 — 8 — 98 Asset-backed (3) 5,933 — 21 20 5,934 Commercial mortgage-backed 2,427 — 19 25 2,421 Redeemable preferred stock 41 — 12 — 53 Total at December 31, 2021 $ 73,429 $ 22 $ 5,125 $ 316 $ 78,216 ______________ (1) Corporate fixed maturities include both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. The contractual maturities of AFS fixed maturities as of December 31, 2022 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Contractual Maturities of AFS Fixed Maturities Amortized Cost (Less Allowance for Credit Losses) Fair Value (in millions) December 31, 2022 Contractual maturities: Due in one year or less $ 1,858 $ 1,834 Due in years two through five 15,031 14,222 Due in years six through ten 16,281 14,433 Due after ten years 26,166 20,282 Subtotal 59,336 50,771 Residential mortgage-backed 908 822 Asset-backed 8,859 8,490 Commercial mortgage-backed 3,823 3,235 Redeemable preferred stock 41 43 Total at December 31, 2022 $ 72,967 $ 63,361 The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities for the years ended December 31, 2022, 2021 and 2020: Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities Year Ended December 31, 2022 2021 2020 (in millions) Proceeds from sales $ 11,932 $ 27,363 $ 12,903 Gross gains on sales $ 45 $ 1,152 $ 862 Gross losses on sales $ (663) $ (195) $ (41) Net (increase) decrease in Allowance for Credit and Intent to Sell losses (1) $ (247) $ (16) $ (13) ______________ (1) Amounts as of year ended December 31, 2022 reflect an impairment on AFS Securities of $245 million related to the Global Atlantic Transaction. See Note 11 of the Notes to these Consolidated Financial Statements for additional details on the Global Atlantic Transaction. The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts. AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments Year Ended December 31, 2022 2021 2020 (in millions) Balance, beginning of period $ 44 $ 32 $ 21 Previously recognized impairments on securities that matured, paid, prepaid or sold (263) (4) (2) Recognized impairments on securities impaired to fair value this period (1) (2) 246 — — Credit losses recognized this period on securities for which credit losses were not previously recognized — 9 6 Additional credit losses this period on securities previously impaired 9 7 7 Increases due to passage of time on previously recorded credit losses — — — Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) — — — Balance at December 31, $ 36 $ 44 $ 32 ______________ (1) Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. (2) Amounts for year ended December 31, 2022 reflect an impairment on AFS Securities of $245 million related to the Global Atlantic Transaction. See Note 11 of the Notes to these Consolidated Financial Statements for additional details on the Global Atlantic Transaction. The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI. Net Unrealized Gains (Losses) on AFS Fixed Maturities Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2022 $ 4,809 $ (782) $ (418) $ (757) $ 2,852 Net investment gains (losses) arising during the period (15,275) — — — (15,275) Reclassification adjustment: Included in net income (loss) 867 — — — 867 Other (1) — — — (1,569) (1,569) Impact of net unrealized investment gains (losses) — 2,366 96 2,508 4,970 Net unrealized investment gains (losses) excluding credit losses (9,599) 1,584 (322) 182 (8,155) Net unrealized investment gains (losses) with credit losses (7) 1 — 1 (5) Balance, December 31, 2022 $ (9,606) $ 1,585 $ (322) $ 183 $ (8,160) Balance, January 1, 2021 $ 8,811 $ (1,548) $ (1,065) $ (1,302) $ 4,896 Net investment gains (losses) arising during the period (3,122) — — — (3,122) Reclassification adjustment: Included in net income (loss) (846) — — — (846) Other (2) (33) — — — (33) Impact of net unrealized investment gains (losses) — 767 648 544 1,959 Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Net unrealized investment gains (losses) excluding credit losses 4,810 (781) (417) (758) 2,854 Net unrealized investment gains (losses) with credit losses (1) (1) (1) 1 (2) Balance, December 31, 2021 $ 4,809 $ (782) $ (418) $ (757) $ 2,852 Balance, January 1, 2020 $ 3,453 $ (894) $ (189) $ (497) $ 1,873 Net investment gains (losses) arising during the period 6,192 — — — 6,192 Reclassification adjustment: — — — — — Included in net income (loss) (828) — — — (828) Impact of net unrealized investment gains (losses) — (655) (877) (806) (2,338) Net unrealized investment gains (losses) excluding credit losses 8,817 (1,549) (1,066) (1,303) 4,899 Net unrealized investment gains (losses) with credit losses (6) 1 1 1 (3) Balance, December 31, 2020 $ 8,811 $ (1,548) $ (1,065) $ (1,302) $ 4,896 _____________ (1) Reflects a Deferred Tax Asset valuation allowance of $1.6 billion recorded during the fourth quarter of 2022. See Note 16 o f the Notes to these Consolidated Financial Statements for additional details. (2) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments. The following tables disclose the fair values and gross unrealized losses of the 5,209 issues as of December 31, 2022 and the 2,060 issues as of December 31, 2021 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated. AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) December 31, 2022 Fixed Maturities: Corporate $ 24,580 $ 2,668 $ 16,534 $ 4,536 $ 41,114 $ 7,204 U.S. Treasury, government and agency 5,564 1,200 204 18 5,768 1,218 States and political subdivisions 130 25 173 64 303 89 Foreign governments 349 42 417 109 766 151 Residential mortgage-backed 671 49 83 38 754 87 Asset-backed 6,298 230 1,765 143 8,063 373 Commercial mortgage-backed 1,577 201 1,640 387 3,217 588 Total at December 31, 2022 $ 39,169 $ 4,415 $ 20,816 $ 5,295 $ 59,985 $ 9,710 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) December 31, 2021: Fixed Maturities: Corporate $ 10,571 $ 163 $ 1,633 $ 75 $ 12,204 $ 238 U.S. Treasury, government and agency 993 11 105 4 1,098 15 States and political subdivisions 120 2 11 — 131 2 Foreign governments 349 6 92 8 441 14 Residential mortgage-backed — — — — — — Asset-backed 3,865 20 38 — 3,903 20 Commercial mortgage-backed 1,527 21 96 4 1,623 25 Total at December 31, 2021 $ 17,425 $ 223 $ 1,975 $ 91 $ 19,400 $ 314 The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.8% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of December 31, 2022 and 2021 were $327 million and $322 million, respectively, representing 9.6% and 2.5% of the consolidated equity of the Company. Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of December 31, 2022 and 2021, respectively, approximately $2.9 billion and $2.9 billion, or 4.0% and 3.9%, of the $73.0 billion and $73.4 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $208 million and $18 million as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, respectively, the $5.3 billion and $91 million of gross unrealized losses of twelve months or more were primarily concentrated in corporate securities. In accordance with the policy described in Note 2 of the Notes to these Consolidated Financial Statements, the Company concluded that an adjustment to the allowance for credit losses for these securities was not warranted at either December 31, 2022 or December 31, 2021. As of December 31, 2022 and 2021, the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis. Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of December 31, 2022, the Company determined that the unrealized loss was primarily due to increases in interest rates and credit spreads. Mortgage Loans on Real Estate Accrued interest receivable on commercial and agricultural mortgage loans as of December 31, 2022 and 2021 was $71 million and $57 million, respectively. There was no accrued interest written off for commercial and agricultural mortgage loans for the years ended December 31, 2022 and 2021. As of December 31, 2022, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses. Allowance for Credit Losses on Mortgage Loans The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the years ended December 31, 2022 and 2021 were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 57 $ 77 $ 33 Current-period provision for expected credit losses 66 (20) 44 Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Net change in allowance 66 (20) 44 Balance, end of period $ 123 $ 57 $ 77 Agricultural mortgages: Balance, beginning of period $ 5 $ 4 $ 3 Current-period provision for expected credit losses 1 1 1 Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Net change in allowance 1 1 1 Balance, end of period $ 6 $ 5 $ 4 Total allowance for credit losses $ 129 $ 62 $ 81 The change in the allowance for credit losses is attributable to: • increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization; and • changes in credit quality and economic assumptions. Credit Quality Information The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of December 31, 2022 and 2021. Loan to Value (“LTV”) Ratios (1) December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: 0% - 50% $ 624 $ 130 $ — $ — $ 119 $ 1,259 $ — $ — $ 2,132 50% - 70% 2,285 1,569 906 313 623 2,254 328 — 8,278 70% - 90% 363 415 463 329 424 1,314 — 34 3,342 90% plus — — — — 35 233 — — 268 Total commercial $ 3,272 $ 2,114 $ 1,369 $ 642 $ 1,201 $ 5,060 $ 328 $ 34 $ 14,020 Agricultural: December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) 0% - 50% $ 163 $ 182 $ 228 $ 129 $ 132 $ 725 $ — $ — $ 1,559 50% - 70% 190 185 222 68 83 267 — — 1,015 70% - 90% — — — — — 16 — — 16 90% plus — — — — — — — — — Total agricultural $ 353 $ 367 $ 450 $ 197 $ 215 $ 1,008 $ — $ — $ 2,590 Total mortgage loans: 0% - 50% $ 787 $ 312 $ 228 $ 129 $ 251 $ 1,984 $ — $ — $ 3,691 50% - 70% 2,475 1,754 1,128 381 706 2,521 328 — 9,293 70% - 90% 363 415 463 329 424 1,330 — 34 3,358 90% plus — — — — 35 233 — — 268 Total mortgage loans $ 3,625 $ 2,481 $ 1,819 $ 839 $ 1,416 $ 6,068 $ 328 $ 34 $ 16,610 Debt Service Coverage Ratios (“DSC”) (2 ) December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 771 $ 1,159 $ 1,113 $ 102 $ 571 $ 1,923 $ — $ — $ 5,639 1.8x to 2.0x 158 215 164 197 186 482 279 — 1,681 1.5x to 1.8x 337 390 32 153 176 1,175 4 — 2,267 1.2x to 1.5x 1,041 259 — 92 73 917 — — 2,382 1.0x to 1.2x 507 43 60 98 160 492 45 34 1,439 Less than 1.0x 458 48 — — 35 71 — — 612 Total commercial $ 3,272 $ 2,114 $ 1,369 $ 642 $ 1,201 $ 5,060 $ 328 $ 34 $ 14,020 Agricultural: Greater than 2.0x $ 51 $ 40 $ 62 $ 21 $ 12 $ 193 $ — $ — $ 379 1.8x to 2.0x 16 58 35 24 14 51 — — 198 1.5x to 1.8x 69 42 111 18 19 196 — — 455 1.2x to 1.5x 107 147 177 98 99 298 — — 926 1.0x to 1.2x 91 80 61 30 60 257 — — 579 Less than 1.0x 19 — 4 6 11 13 — — 53 Total agricultural $ 353 $ 367 $ 450 $ 197 $ 215 $ 1,008 $ — $ — $ 2,590 December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Total mortgage loans: Greater than 2.0x $ 822 $ 1,199 $ 1,175 $ 123 $ 583 $ 2,116 $ — $ — $ 6,018 1.8x to 2.0x 174 273 199 221 200 533 279 — 1,879 1.5x to 1.8x 406 432 143 171 195 1,371 4 — 2,722 1.2x to 1.5x 1,148 406 177 190 172 1,215 — — 3,308 1.0x to 1.2x 598 123 121 128 220 749 45 34 2,018 Less than 1.0x 477 48 4 6 46 84 — — 665 Total mortgage loans $ 3,625 $ 2,481 $ 1,819 $ 839 $ 1,416 $ 6,068 $ 328 $ 34 $ 16,610 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. LTV Ratios (1) December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 184 $ 293 $ 1,009 $ — $ — $ 1,486 50% - 70% 1,944 1,286 339 619 491 2,533 139 — 7,351 70% - 90% 190 236 412 415 276 972 — — 2,501 90% plus — — — 35 5 73 — — 113 Total commercial $ 2,134 $ 1,522 $ 751 $ 1,253 $ 1,065 $ 4,587 $ 139 $ — $ 11,451 Agricultural: 0% - 50% $ 180 $ 212 $ 128 $ 129 $ 119 $ 738 $ — $ — $ 1,506 50% - 70% 200 268 102 126 87 338 — — 1,121 70% - 90% — — — — — 17 — — 17 90% plus — — — — — — — — — Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ — $ — $ 2,644 December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Total mortgage loans: 0% - 50% $ 180 $ 212 $ 128 $ 313 $ 412 $ 1,747 $ — $ — $ 2,992 50% - 70% 2,144 1,554 441 745 578 2,871 139 — 8,472 70% - 90% 190 236 412 415 276 989 — — 2,518 90% plus — — — 35 5 73 — — 113 Total mortgage loans $ 2,514 $ 2,002 $ 981 $ 1,508 $ 1,271 $ 5,680 $ 139 $ — $ 14,095 DSC Ratios (2) December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 1,143 $ 1,243 $ 210 $ 772 $ 485 $ 2,235 $ — $ — $ 6,088 1.8x to 2.0x 185 135 182 46 161 372 68 — 1,149 1.5x to 1.8x 275 49 284 211 166 919 48 — 1,952 1.2x to 1.5x 264 95 75 101 253 701 — — 1,489 1.0x to 1.2x 267 — — 88 — 287 23 — 665 Less than 1.0x — — — 35 — 73 — — 108 Total commercial $ 2,134 $ 1,522 $ 751 $ 1,253 $ 1,065 $ 4,587 $ 139 $ — $ 11,451 December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Agricultural: Greater than 2.0x $ 49 $ 64 $ 25 $ 22 $ 24 $ 210 $ — $ — $ 394 1.8x to 2.0x 52 37 25 14 14 70 — — 212 1.5x to 1.8x 43 113 28 22 41 193 — — 440 1.2x to 1.5x 161 179 112 116 72 355 — — 995 1.0x to 1.2x 75 83 31 77 54 226 — — 546 Less than 1.0x — 4 9 4 1 39 — — 57 Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ — $ — $ 2,644 Total mortgage loans: Greater than 2.0x $ 1,192 $ 1,307 $ 235 $ 794 $ 509 $ 2,445 $ — $ — $ 6,482 1.8x to 2.0x 237 172 207 60 175 442 68 — 1,361 1.5x to 1.8x 318 162 312 233 207 1,112 48 — 2,392 1.2x to 1.5x 425 274 187 217 325 1,056 — — 2,484 1.0x to 1.2x 342 83 31 165 54 513 23 — 1,211 Less than 1.0x — 4 9 39 1 112 — — 165 Total mortgage loans $ 2,514 $ 2,002 $ 981 $ 1,508 $ 1,271 $ 5,680 $ 139 $ — $ 14,095 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. Past-Due and Nonaccrual Mortgage Loan Status The following table provides information relating to the aging analysis of past-due mortgage loans as of December 31, 2022 and 2021, respectively. Age Analysis of Past Due Mortgage Loans (1) Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Days or More Total (in millions) December 31, 2022: Mortgage loans: Commercial $ 56 $ — $ — $ 56 $ 13,964 $ 14,020 $ — $ 14,020 $ — $ — Agricultural 3 5 13 21 2,553 2,574 16 2,590 — — Total $ 59 $ 5 $ 13 $ 77 $ 16,517 $ 16,594 $ 16 $ 16,610 $ — $ — Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Days or More Total (in millions) December 31, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 11,451 $ 11,451 $ — $ 11,451 $ — $ — Agricultural 1 1 25 27 2,601 2,628 16 2,644 — — Total $ 1 $ 1 $ 25 $ 27 $ 14,052 $ 14,079 $ 16 $ 14,095 $ — $ — _______________ (1) Amounts presented at amortized cost basis. As of December 31, 2022 and 2021, the carrying values of problem mortgage loans that had been classified as non-accrual loans were $14 million and $14 million, respectively. The carrying values of those mortgage loans are presented net of an allowance of $2 million and $2 million, respectively, as of December 31, 2022 and 2021. Troubled Debt Restructuring During the years ended December 31, 2022, 2021 and 2020, the Company identified an immaterial amount of TDRs. Equity Securities The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the years ended December 31, 2022 and 2021. Unrealized and Realized Gains (Losses) from Equity Securities Year Ended December 31, 2022 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (114) $ (19) Net investment gains (losses) recognized on securities sold during the period (36) 45 Unrealized and realized gains (losses) on equity securities $ (150) $ 26 Trading Securities As of December 31, 2022 and 2021, respectively, the fair value of the Company’s trading securities was $677 million and $631 million. As of December 31, 2022 and 2021, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $39 million and $45 million. The table below shows a breakdown of net investment income (loss) from trading securities during the years ended December 31, 2022, 2021 and 2020. Net Investment Income (Loss) from Trading Securities Year Ended December 31, 2022 2021 2020 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (198) $ (274) $ 128 Net investment gains (losses) recognized on securities sold during the period — 248 42 Unrealized and realized gains (losses) on trading securities (198) (26) 170 Interest and dividend income from trading securities 29 99 217 Net investment income (loss) from trading securities $ (169) $ 73 $ 387 Fixed maturities, at fair value using the fair value option The table below shows a breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option during the years ended December 31, 2022 and 2021. Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option Year Ended December 31, 2022 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (14) $ 12 Net investment gains (losses) recognized on securities sold during the period 2 4 Unrealized and realized gains (losses) from fixed maturities (12) 16 Interest and dividend income from fixed maturities 7 19 Net investment income (loss) from fixed maturities $ (5) $ 35 Net Investment Income (Loss) The following table breaks out net investment income (loss) by asset category: Year Ended December 31, 2022 2021 2020 (in millions) Fixed maturities $ 2,625 $ 2,440 $ 2,341 Mortgage loans on real estate 587 546 516 Other equity investments 134 609 67 Policy loans 215 203 204 Trading securities (169) 73 387 Other investment income 33 17 33 Fixed maturities, at fair value using the fair value option (5) 35 1 Gross investment income (loss) 3,420 3,923 3,549 Investment expenses (105) (77) (72) Net investment income (loss) $ 3,315 $ 3,846 $ 3,477 Investment Gains (Losses), Net Investment gains (losses), net, including changes in the valuation allowances and credit losses are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Fixed maturities $ (868) $ 847 $ 828 Mortgage loans on real estate (66) 19 (45) Other equity investments (1) — — 30 Other (11) 2 (69) Investment gains (losses), net $ (945) $ 868 $ 744 _____________ (1) Investment gains (losses), net of Other equity investments includes Real Estate Held for production during the years ended December 31, 2021 and December 31, 2020. For the years ended December 31, 2022, 2021 and 2020, respectively, investment results passed through to certain participating group annuity contracts as interest credited to policyholders’ account balances totaled $1 million, $2 million and $2 million. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by applicable states’ insurance law. Derivatives are generally not accounted for using hedge accounting, with the exception of TIPS and cash flow hedges, which are discussed further below. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, bond and bond-index total return swaps, swaptions, variance swaps and equity options, credit and foreign exchange derivatives, as well as bond and repo transactions to support the hedging. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. In addition, as part of its hedging strategy, the Company targets an asset level for all variable annuity products at or above a CTE98 level under most economic scenarios (CTE is a statistical measure of tail risk which quantifies the total asset requirement to sustain a loss if an event outside a given probability level has occurred. CTE98 denotes the financial resources a company would need to cover the average of the worst 2% of scenarios.) Derivatives Utilized to Hedge Exposure to Variable Annuities with Guarantee Features The Company has issued and continues to offer variable annuity products with GMxB features. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with products that have a GMxB derivative features liability is that under-performance of the financial markets could result in the GMxB derivative features’ benefits being higher than what accumulated policyholders’ account balances would support. For GMxB features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual experience versus expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB features that result from financial markets movements. A portion of exposure to realized equity volatility is hedged using equity options and variance swaps and a portion of exposure to credit risk is hedged using total return swaps on fixed income indices. Additionally, the Company is party to total return swaps for which the reference U.S. Treasury securities are contemporaneously purchased from the market and sold to the swap counterparty. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. The Company has also purchased reinsurance contracts to mitigate the risks associated with GMDB features and the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts issued by the Company. The reinsurance of the GMIB features is accounted for as a derivative. In addition, on June 1, 2021, we ceded legacy variable annuity policies sold by Equitable Financial between 2006-2008 (the “Block”), comprised of non-New York “Accumulator” policies containing fixed rate GMIB and/or GMDB guarantees to CS Life. As this contract provides full risk transfer and thus has the same risk attributes as the underlying direct contracts, the benefits of this treaty are accounted for in the same manner as the underlying gross reserves and therefore the Amounts Due from Reinsurers related to the GMIB with NLG are accounted for as an embedded derivative. The Company has in place an economic hedge program using U.S. Treasury futures to partially protect the overall profitability of future variable annuity sales against declining interest rates. Derivatives Utilized to Hedge Crediting Rate Exposure on SCS, SIO, MSO and IUL Products/Investment Options The Company hedges crediting rates in the SCS variable annuity, SIO in the EQUI-VEST variable annuity series, MSO in the variable life insurance products and IUL insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment. In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers, thereby substantially reducing any exposure to market-related earnings volatility. Derivatives Used to Hedge Equity Market Risks Associated with the General Account’s Seed Money Investments in Retail Mutual Funds The Company’s General Account seed money investments in retail mutual funds expose us to market risk, including equity market risk which is partially hedged through equity-index futures contracts to minimize such risk. Derivatives Used for General Account Investment Portfolio The Company maintains a strategy in its General Account investment portfolio to replicate the credit exposure of fixed maturity securities otherwise permissible for investment under its investment guidelines through the sale of CDS. Under the terms of these swaps, the Company receives quarterly fixed premiums that, together with any initial amount paid or received at trade inception, replicate the credit spread otherwise currently obtainable by purchasing the referenced entity’s bonds of similar maturity. These credit derivatives generally have remaining terms of five years or less and are recorded at fair value with changes in fair value, including the yield component that emerges from initial amounts paid or received, reported in net derivative gains (losses). The Company manages its credit exposure taking into consideration both cash and derivatives based positions and selects the reference entities in its replicated credit exposures in a manner consistent with its selection of fixed maturities. In addition, the Company generally transacts the sale of CDS in single name reference entities of investment grade credit quality and with counterparties subject to collateral posting requirements. If there is an event of default by the reference entity or other such credit event as defined under the terms of the swap contract, the Company is obligated to perform under the credit derivative and, at its option, either pay the referenced amount of the contract less an auction-determined recovery amount or pay the referenced amount of the contract and receive in return the defaulted or similar security of the reference entity for recovery by sale at the contract settlement auction. The Company purchased CDS to mitigate its exposure to a reference entity through cash positions. These positions do not replicate credit spreads. To date, there have been no events of default or circumstances indicative of a deterioration in the credit quality of the named referenced entities to require or suggest that the Company will have to perform under the CDS that it sold. The maximum potential amount of future payments the Company could be required to make under the credit derivatives sold is limited to the par value of the referenced securities which is the dollar or euro-equivalent of the derivative’s notional amount. The Standard North American CDS Contract or Standard European Corporate Contract under which the Company executes these CDS sales transactions does not contain recourse provisions for recovery of amounts paid under the credit derivative. The Company purchased 30-year TIPS and other sovereign bonds, both inflation linked and non-inflation linked, as General Account investments and enters into asset or cross-currency basis swaps, to result in payment of the given bond’s coupons and principal at maturity in the bond’s specified currency to the swap counterparty in return for fixed dollar amounts. These swaps, when considered in combination with the bonds, together result in a net position that is intended to replicate a dollar-denominated fixed-coupon cash bond with a yield higher than a term-equivalent U.S. Treasury bond. Derivatives Utilized to Hedge Exposure to Foreign Currency Denominated Cash Flows The Company purchases private placement debt securities and issues funding agreements in the FABN program in currencies other than its functional U.S. dollar currency. The Company enters into cross currency swaps with external counterparties to hedge the exposure of the foreign currency denominated cash flows of these instruments. The foreign currency received from or paid to the cross currency swap counterparty is exchanged for fixed U.S. dollar amounts with improved net investment yields or net product costs over equivalent U.S. dollar denominated instruments issued at that time. The transactions are accounted for as cash flow hedges when they are designated in hedging relationships and qualify for hedge accounting. The first cross currency swap hedges were designated and applied hedge accounting during the quarter ended June 30, 2021. These cross currency swaps are for the period the foreign currency denominated private placement debt securities and funding agreement are outstanding, with the longest cross currency swap expiring in 2033. Since these cross currency swaps are designated and qualify as cash flow hedges, the corresponding interest accruals are recognized in Net investment income and in Interest credited to policyholders’ account balances. The tables below present quantitative disclosures about the Company’s derivative instruments designated in hedging relationships and derivative instruments which have not been designated in hedging relationships, including those embedded in other contracts required to be accounted for as derivative instruments. The following table presents the gross notional amount and estimated fair value of the Company’s derivatives: Derivative Instruments by Category December 31, 2022 December 31, 2021 Fair Value Fair Value Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities (in millions) Derivatives: designated for hedge accounting (1) Cash flow hedges: Currency swaps $ 1,431 $ 99 $ 85 $ 921 $ 7 $ 42 Interest swaps 955 — 294 955 — 395 Total: designated for hedge accounting 2,386 99 379 1,876 7 437 Derivatives: not designated for hedge accounting (1) Equity contracts: Futures 5,151 2 — 2,640 — 1 Swaps 11,188 39 9 13,378 6 4 Options 40,122 7,583 3,412 48,489 12,024 5,065 Interest rate contracts: Futures 12,693 — — 12,575 — — Swaps 1,515 — 166 1,889 — 46 Credit contracts: Credit default swaps 327 18 9 774 9 10 Currency contracts Currency swaps 397 4 13 541 1 — Currency forwards 62 31 32 79 8 7 Other freestanding contracts: Margin — 226 — — 125 — Collateral — 142 4,472 — 178 6,160 Total: not designated for hedge accounting 71,455 8,045 8,113 80,365 12,351 11,293 Embedded derivatives: Amounts due from reinsurers (5) — 4,114 — — 5,813 — GMIB reinsurance contracts (2) — 1,229 — — 1,848 — GMxB derivative features liability (3) — — 5,764 — — 8,525 SCS, SIO, MSO and IUL indexed features (4) — — 4,164 — — 6,773 Total embedded derivatives — 5,343 9,928 — 7,661 15,298 Total derivative instruments $ 73,841 $ 13,487 $ 18,420 $ 82,241 $ 20,019 $ 27,028 ___________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in GMIB reinsurance contract asset in the consolidated balance sheets. (3) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in policyholders’ account balances in the consolidated balance sheets. (5) Represents GMIB NLG ceded related to the Venerable Transaction. The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss). Derivative Instruments by Category Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Net Derivatives Gain(Losses) (1) NII (2) Interest Credited To Policyholder Account Balances AOCI Net Derivatives Gain(Losses) (1) Interest Credited To Policyholder Account Balances AOCI Net Derivatives Gain(Losses) (1) Interest Credited To Policyholder Account Balances AOCI (in millions) Derivatives: Designated for Hedge accounting Cash Flow Hedges: Currency Swaps $ 19 $ 7 $ (4) $ 24 $ (2) $ (45) $ 5 $ — $ — $ — Interest Swaps (86) — — 206 (69) — (87) (9) — (87) Total: Designated for Hedge accounting (67) 7 (4) 230 (71) (45) (82) (9) — (87) Derivatives: Not Designated for Hedge accounting Equity contracts Futures 285 — — — (567) — — (1,011) — — Swaps 2,644 — — — (3,614) — — (3,368) — — Options (2,750) — — — 3,886 — — 1,663 — — Interest Rate contracts Futures (1,688) — — — (728) — — 1,740 — — Swaps (492) — — — (2,317) — — 2,832 — — Swaptions — — — — — — — 9 — — Credit contracts Credit Default Swaps 7 — — — (2) — — — — — Currency contracts Currency Swaps 10 — — — 3 — — (4) — — Currency forwards 3 — — — 2 — — — — — Total: Not Designated for Hedge accounting (1,981) — — — (3,337) — — 1,861 — — Embedded Derivatives Amounts due from reinsurers (1,706) — — — 517 — — — — — GMIB reinsurance contracts (581) — — — (625) — — 417 — — GMxB derivative features liability (3) 3,076 — — — 2,841 — — (2,253) — — Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Net Derivatives Gain(Losses) (1) NII (2) Interest Credited To Policyholder Account Balances AOCI Net Derivatives Gain(Losses) (1) Interest Credited To Policyholder Account Balances AOCI Net Derivatives Gain(Losses) (1) Interest Credited To Policyholder Account Balances AOCI (in millions) SCS, SIO,MSO and IUL indexed features 2,955 — — — (3,835) — — (1,738) — — Total Embedded Derivatives 3,744 — — — (1,102) — — (3,574) — — Total derivatives instruments $ 1,696 $ 7 $ (4) $ 230 $ (4,510) $ (45) $ (82) $ (1,722) $ — $ (87) _____________ (1) Reported in net derivative gains (losses) in the consolidated statements of income (loss). (2) Net Investment Income (“NII”). (3) Excludes settlement fees of $45 million on CS Life reinsurance contract for the year ended December 31, 2021. The following table presents a roll-forward of cash flow hedges recognized in AOCI. Roll-forward of Cash flow hedges in AOCI Year Ended December 31, 2022 2021 2020 (in millions) Balance, beginning of period $ (208) $ (126) $ (38) Amount recorded in AOCI Currency swaps 29 (35) — Interest swaps 102 (183) (108) Total amount recorded in AOCI 131 (218) (108) Amount reclassified from AOCI to income Currency swaps (1) (5) 40 — Interest swaps (1) 104 96 20 Total amount reclassified from AOCI to income 99 136 20 Balance, end of period (2) $ 22 $ (208) $ (126) _______________ (1) Currency swaps reclassified from AOCI to income are reported in net investment income in the consolidated statements of income (loss). Interest swaps reclassified from AOCI to income are reported in net derivative gains (losses) in the consolidated statements of income (loss). (2) The Company does not estimate the amount of the deferred losses in AOCI at years ended December 31, 2022, 2021 and 2020 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated. Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based and treasury futures contracts as of December 31, 2022 and 2021 are exchange-traded and net settled daily in cash. As of December 31, 2022 and 2021, respectively, the Company had open exchange-traded futures positions on: (i) the S&P 500, Nasdaq, Russell 2000 and Emerging Market indices, having initial margin requirements of $247 million and $109 million, (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $113 million and $200 million, and (iii) the Euro Stoxx, FTSE 100, Topix, ASX 200 and EAFE indices as well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S. dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial margin requirements of $16 million and $16 million. Collateral Arrangements The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its OTC derivative counterparties that requires both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities, U.S. government and government agency securities and investment grade corporate bonds. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. As of December 31, 2022 and 2021, respectively, the Company held $4.5 billion and $6.2 billion in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. The unrestricted cash collateral is reported in other invested assets. The Company posted collateral of $142 million and $178 million as of December 31, 2022 and 2021, respectively, in the normal operation of its collateral arrangements. The Company is exposed to losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreements, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. In addition, certain of the Company’s derivative agreements contain credit-risk related contingent features; if the credit rating of one of the parties to the derivative agreement is to fall below a certain level, the party with positive fair value could request termination at the then fair value or demand immediate full collateralization from the party whose credit rating fell and is in a net liability position. As of December 31, 2022 and 2021, there were no net liability derivative positions with counterparties with credit risk-related contingent features whose credit rating has fallen. All derivatives have been appropriately collateralized by the Company or the counterparty in accordance with the terms of the derivative agreements. The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of December 31, 2022 and 2021: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of December 31, 2022 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (3) Net Amount (in millions) Assets: Derivative assets (1) $ 8,143 $ 7,047 $ 1,096 $ (848) $ 248 Other financial assets 2,789 — 2,789 — 2,789 Other invested assets $ 10,932 $ 7,047 $ 3,885 $ (848) $ 3,037 Liabilities: Derivative liabilities (2) $ 7,645 $ 7,047 $ 598 $ — $ 598 Other financial liabilities 5,275 — 5,275 — 5,275 Other liabilities $ 12,920 $ 7,047 $ 5,873 $ — $ 5,873 ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Financial instruments/Collateral sent (held). As of December 31, 2021 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (3) Net Amount (in millions) Assets: Derivative assets (1) $ 12,358 $ 10,756 $ 1,602 $ (961) $ 641 Other financial assets 1,989 — 1,989 — 1,989 Other invested assets $ 14,347 $ 10,756 $ 3,591 $ (961) $ 2,630 Liabilities: Derivative liabilities (2) $ 10,770 $ 10,756 $ 14 $ — $ 14 Other financial liabilities 3,919 — 3,919 — 3,919 Other liabilities $ 14,689 $ 10,756 $ 3,933 $ — $ 3,933 ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Financial instruments sent (held). |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Goodwill Goodwill represents the excess of purchase price over the estimated fair value of identifiable net assets acquired in a business combination. The Company tests goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment. The carrying value of goodwill from the Company’s Investment Management reporting unit totaled $5.1 billion and $4.6 billion at December 31, 2022 and 2021, resulting from its investment in AB as well as direct strategic acquisitions of AB, including its purchases of Sanford C. Bernstein, Inc and CarVal. The increase of $496 million as of December 31, 2022 was a result of the CarVal acquisition, which generated $666 million of goodwill, offset by the reallocation of $170 million of goodwill to held-for-sale assets. See Note 1 of the Notes to these Consolidated Financial Statements for information on the CarVal acquisition. On November 22, 2022, AB and Société Générale, a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses, as such AB’s Bernstein Research Services business was classified as held-for-sale and $170 million of goodwill recorded was allocated to the held-for-sale disposal group. See Note 23 of the Notes to these Consolidated Financial Statements for additional information. As of December 31, 2022 and 2021, the Company’s annual testing resulted in no impairment of this goodwill, as the fair value of the reporting unit exceeded its carrying amount at each respective date. Other Intangible Assets The Company’s intangible assets primarily relate to the CarVal acquisition and reflect amounts assigned to acquired investment management contracts based on their estimated fair values at the time of acquisition, less accumulated amortization. The gross carrying amount of AB-related intangible assets was $1.2 billion as of December 31, 2022 and $932 million as of December 31, 2021, and the accumulated amortization of these intangible assets was $853 million and $809 million as of December 31, 2022 and 2021, respectively. The net increase of $257 million as of December 31, 2022 was primarily a result of the CarVal acquisition. Amortization expense for AB-related intangible assets totaled $43 million, $21 million, and $37 million for 2022, 2021 and 2020, respectively. Estimated annual amortization expense for each of the next five years is approximately $60 million, $60 million, $60 million, $59 million and $38 million, respectively. |
CLOSED BLOCK
CLOSED BLOCK | 12 Months Ended |
Dec. 31, 2022 | |
Closed Block Disclosure [Abstract] | |
CLOSED BLOCK | CLOSED BLOCK As a result of demutualization, the Company’s Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and earnings of the Closed Block are specifically identified to support its participating policyholders. Assets allocated to the Closed Block inure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of the Company’s General Account, any of its Separate Accounts or any affiliate of the Company without the approval of the NYDFS. Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in AOCI) represents the expected maximum future post-tax earnings from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. As of January 1, 2001, the Company has developed an actuarial calculation of the expected timing of the Closed Block’s earnings. If the actual cumulative earnings from the Closed Block are greater than the expected cumulative earnings, only the expected earnings will be recognized in net income. Actual cumulative earnings in excess of expected cumulative earnings at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block earnings in a subsequent period are less than the expected earnings for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative earnings of the Closed Block are less than the expected cumulative earnings, only actual earnings would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block. Many expenses related to Closed Block operations, including amortization of DAC, are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block. Summarized financial information for the Company’s Closed Block is as follows: December 31, 2022 2021 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 5,688 $ 5,928 Policyholder dividend obligation — — Other liabilities 68 39 Total Closed Block liabilities 5,756 5,967 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,171 and $3,185) (allowance for credit losses of $0 and $0) 2,948 3,390 Mortgage loans on real estate (net of allowance for credit losses of $4 and $4) 1,645 1,771 Policy loans 569 602 Cash and other invested assets — 63 Other assets 155 90 Total assets designated to the Closed Block 5,317 5,916 Excess of Closed Block liabilities over assets designated to the Closed Block 439 51 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $47 and ($43) (166) 172 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 273 $ 223 The Company’s Closed Block revenues and expenses were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Revenues: Premiums and other income $ 125 $ 144 $ 157 Net investment income (loss) 221 237 251 Investment gains (losses), net (3) 4 — Total revenues 343 385 408 Benefits and Other Deductions: Policyholders’ benefits and dividends 328 372 399 Other operating costs and expenses 2 3 1 Total benefits and other deductions 330 375 400 Net income (loss), before income taxes 13 10 8 Income tax (expense) benefit (1) (2) (2) Net income (loss) $ 12 $ 8 $ 6 A reconciliation of the Company’s policyholder dividend obligation follows: Year Ended December 31, 2022 2021 2020 (in millions) Beginning balance $ — $ 160 $ 2 Unrealized investment gains (losses) — (160) 158 Ending balance $ — $ — $ 160 |
DAC AND POLICYHOLDER BONUS INTE
DAC AND POLICYHOLDER BONUS INTEREST CREDITS | 12 Months Ended |
Dec. 31, 2022 | |
Contract holder Bonus Interest Credits [Abstract] | |
DAC AND POLICYHOLDER BONUS INTEREST CREDITS | DAC AND POLICYHOLDER BONUS INTEREST CREDITS Changes in the DAC asset for the years ended December 31, 2022, 2021 and 2020 were as follows: December 31, 2022 2021 2020 (in millions) Balance, beginning of year $ 5,491 $ 4,243 $ 5,840 Capitalization of commissions, sales and issue expenses 842 875 669 Amortization: Impact of assumptions updates and model changes 43 58 (1,109) All other (585) 451 (504) Total amortization (542) (393) (1,613) Change in unrealized investment gains and losses 2,367 766 (654) Reclassified to assets HFS — — 1 Balance, end of year $ 8,158 $ 5,491 $ 4,243 The deferred asset for policyholder bonus interest credits is reported in other assets in the consolidated balance sheets and changes in the deferred asset for policyholder bonus interest credits are reported in Interest credited to policyholders’ account balances. For the years ended December 31, 2022, 2021 and 2020 changes were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Balance, beginning of year $ 373 $ 404 $ 430 Amortization charged to income (39) (31) (26) Balance, end of year $ 334 $ 373 $ 404 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. For the periods ended December 31, 2022, the Company recognized impairment adjustments and impairment losses, respectively, to adjust the carrying value of held-for-sale asset and liabilities to their fair value less cost to sell. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. The fair value was determined using a market approach, estimated based on the negotiated value of the asset and liabilities. See Note 23 of the Notes to these Consolidated Financial Statements for additional details of the Held-for-Sale assets and liabilities. As of December 31, 2021, no assets or liabilities were required to be measured at fair value on a non-recurring basis. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below. Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (1) $ — $ 41,450 $ 2,121 $ 43,571 U.S. Treasury, government and agency — 5,837 — 5,837 States and political subdivisions — 499 28 527 Foreign governments — 836 — 836 Residential mortgage-backed (2) — 788 34 822 Asset-backed (3) — 8,490 — 8,490 Commercial mortgage-backed — 3,203 32 3,235 Redeemable preferred stock — 43 — 43 Total fixed maturities, AFS — 61,146 2,215 63,361 Fixed maturities, at fair value using the fair value option — 1,284 224 1,508 Other equity investments (7) 214 497 12 723 Trading securities 290 332 55 677 Other invested assets: Short-term investments — 943 — 943 Assets of consolidated VIEs/VOEs 131 393 5 529 Swaps — (425) — (425) Credit default swaps — 9 — 9 Futures 2 — — 2 Options — 4,171 — 4,171 Total other invested assets 133 5,091 5 5,229 Cash equivalents 2,386 501 — 2,887 Segregated securities — 1,522 — 1,522 Amounts due from reinsurer (6) — — 4,114 4,114 GMIB reinsurance contracts asset — — 1,229 1,229 Separate Accounts assets (4) 111,744 2,436 1 114,181 Total Assets $ 114,767 $ 72,809 $ 7,855 $ 195,431 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (5) $ — $ 1,374 $ — $ 1,374 GMxB derivative features’ liability — — 5,764 5,764 SCS, SIO, MSO and IUL indexed features’ liability — 4,164 — 4,164 Liabilities of consolidated VIEs and VOEs 15 7 — 22 Contingent payment arrangements — — 247 247 Total Liabilities $ 15 $ 5,545 $ 6,011 $ 11,571 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. (4) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate. As of December 31, 2022, the fair value of such investments was $456 million. (5) Includes CLO short-term debt of $239 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option. Accrued interest payable of $15 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. (6) This represents GMIB NLG ceded reserves related to the Venerable Transaction. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction. (7) Includes short position equity securities of $12 million that are reported in other liabilities. Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (1) $ — $ 51,007 $ 1,504 $ 52,511 U.S. Treasury, government and agency — 15,385 — 15,385 States and political subdivisions — 627 35 662 Foreign governments — 1,152 — 1,152 Residential mortgage-backed (2) — 98 — 98 Asset-backed (3) — 5,926 8 5,934 Commercial mortgage-backed (2) — 2,401 20 2,421 Redeemable preferred stock — 53 — 53 Total fixed maturities, AFS — 76,649 1,567 78,216 Fixed maturities, at fair value using the fair value option 1,440 201 1,641 Other equity investments 322 457 5 784 Trading securities 340 226 65 631 Other invested assets: Short-term investments — 30 — 30 Assets of consolidated VIEs/VOEs 166 450 11 627 Swaps — (473) — (473) Credit default swaps — (1) — (1) Futures (1) — — (1) Options — 6,959 — 6,959 Swaptions — — — — Total other invested assets 165 6,965 11 7,141 Cash equivalents 3,275 293 — 3,568 Segregated securities — 1,504 — 1,504 Amounts due from reinsurer — — 5,813 5,813 GMIB reinsurance contracts asset — — 1,848 1,848 Separate Accounts assets (4) 144,124 2,572 1 146,697 Total Assets $ 148,226 $ 90,106 $ 9,511 $ 247,843 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (5) $ — $ 1,277 $ — $ 1,277 GMxB derivative features’ liability — — 8,525 8,525 SCS, SIO, MSO and IUL indexed features’ liability — 6,773 — 6,773 Liabilities of consolidated VIEs and VOEs 16 2 — 18 Contingent payment arrangements — — 38 38 Total Liabilities $ 16 $ 8,052 $ 8,563 $ 16,631 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (4) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. As of December 31, 2021, the fair value of such investments was $404 million. (5) Includes CLO short-term debt of $92 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option Accrued interest payable of $6 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. Public Fixed Maturities The fair values of the Company’s public fixed maturities, including those accounted for using the fair value option are generally based on prices obtained from independent valuation service providers and for which the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, the Company ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Private Fixed Maturities The fair values of the Company’s private fixed maturities, including those accounted for using the fair value option are determined from prices obtained from independent valuation service providers. Prices not obtained from an independent valuation service provider are determined by using a discounted cash flow model or a market comparable company valuation technique. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model or a market comparable company valuation technique may also incorporate unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made. Notes issued by consolidated VIE’s, at fair value using the fair value option These notes are based on the fair values of corresponding fixed maturity collateral. The CLO liabilities are also reduced by the fair value of the beneficial interests the Company retains in the CLO and the carrying value of any beneficial interests that represent compensation for services. As the notes are valued based on the reference collateral, they are classified as Level 2 or 3. Freestanding Derivative Positions The net fair value of the Company’s freestanding derivative positions as disclosed in Note 4 of the Notes to these Consolidated Financial Statements are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including overnight index swap curves, and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable. Level Classifications of the Company’s Financial Instruments Financial Instruments Classified as Level 1 Investments classified as Level 1 primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less and are carried at cost as a proxy for fair value measurement due to their short-term nature. Financial Instruments Classified as Level 2 Investments classified as Level 2 are measured at fair value on a recurring basis and primarily include U.S. government and agency securities, certain corporate debt securities and financial assets and liabilities accounted for using the fair value option, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Segregated securities classified as Level 2 are U.S. Treasury bills segregated by AB in a special reserve bank custody account for the exclusive benefit of brokerage customers, as required by Rule 15c3-3 of the Exchange Act and for which fair values are based on quoted yields in secondary markets. Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. The Company’s AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors. Certain Company products, such as the SCS, EQUI-VEST variable annuity products, IUL and the MSO fund available in some life contracts, offer investment options which permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options, which depending on the product and on the index selected, can currently have one, three, five or six year terms, provide for participation in the performance of specified indices, ETF or commodity price movement up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g., holding these segments for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices, ETF or commodity prices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are classified as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers. Financial Instruments Classified as Level 3 The Company’s investments classified as Level 3 primarily include corporate debt securities and financial assets and liabilities accounted for using the fair value option, such as private fixed maturities and asset-backed securities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification are fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data. The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. The GMIB NLG feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates applied to the contract’s benefit base if and when the contract account value is depleted and the NLG feature is activated. The GMWB feature allows the policyholder to withdraw at minimum, over the life of the contract, an amount based on the contract’s benefit base. The GWBL feature allows the policyholder to withdraw, each year for the life of the contract, a specified annual percentage of an amount based on the contract’s benefit base. The GMAB feature increases the contract account value at the end of a specified period to a GMAB base. The GIB feature provides a lifetime annuity based on predetermined annuity purchase rates if and when the contract account value is depleted. This lifetime annuity is based on predetermined annuity purchase rates applied to a GIB base. Level 3 also includes the GMIB reinsurance contract assets, which are accounted for as derivative contracts. The GMIB reinsurance contract asset and liabilities’ fair value reflects the present value of reinsurance premiums, net of recoveries, and risk margins over a range of market consistent economic scenarios while GMxB derivative features liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to GMxB derivative features’ liability over a range of market-consistent economic scenarios. Also included are the Amounts due from Reinsurers related to the GMIB NLG product features (GMIB NLG Reinsurance). The fair value reflects the present value of reinsurance premiums, net of recoveries, adjusted for risk margins and nonperformance risk over a range of market consistent economic scenarios. The valuations of the GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMxB derivative features liability incorporate significant non-observable assumptions related to policyholder behavior, risk margins and equity projections of Separate Account funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMxB derivative features liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the U.S. Treasury curve for non-performance risk is made to the fair values of the GMIB reinsurance contract asset, GMIB NLG Reinsurance and GMIB NLG feature to reflect the claims-paying ratings of counterparties and the Company. Due to the unique, long duration of the GMIB NLG feature and GMIB NLG Reinsurance, risk margins were applied to the non-capital markets inputs to the GMIB NLG valuations. After giving consideration to collateral arrangements, the impact to the fair value of its GMIB reinsurance contract asset was a decrease of $74 million and $107 million as of December 31, 2022 and 2021, respectively, to recognize incremental counterparty non-performance risk. After giving consideration to collateral arrangements, the impact to the fair value of its Amounts due from Reinsurers was a decrease of $151 million and $210 million at December 31, 2022 and 2021 to recognize incremental counterparty non-performance risk. Lapse rates are adjusted at the contract level based on a comparison of the actuarial calculated guaranteed values and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. For valuing the embedded derivative, lapse rates vary throughout the period over which cash flows are projected. The Company’s Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2016 and 2019 by AB. At each reporting date, AB estimates the fair values of the contingent consideration expected to be paid based upon revenue and discount rate projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. The Company’s consolidated VIEs/VOEs hold investments that are classified as Level 3, primarily corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities. Transfers of Financial Instruments Between Levels 2 and 3 During the year ended December 31, 2022, fixed maturities with fair values of $200 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, fixed maturities with fair value of $213 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 12.2% of total equity as of December 31, 2022. During the year ended December 31, 2021, fixed maturities with fair values of $785 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, fixed maturities with fair value of $27 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 6.2% of total equity as of December 31, 2021. The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the years ended December 31, 2022, 2021 and 2020, respectively. Corporate State and Political Subdivisions Asset-backed CMBS RMBS Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, January 1, 2022 $ 1,504 $ 35 $ 8 $ 20 $ — $ 65 $ 201 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 5 — — — — — (11) Investment gains (losses), net (5) — — — — (10) — Subtotal — — — — — (10) (11) Other comprehensive income (loss) (159) (5) — (2) — — — Purchases 1,107 — — 14 34 — 98 Sales (378) (2) (2) — — — (36) Activity related to consolidated VIEs/VOEs — — — — — — — Transfers into Level 3 (1) 168 — — — — — 45 Transfers out of Level 3 (1) (121) — (6) — — — (73) Balance, December 31, 2022 $ 2,121 $ 28 $ — $ 32 $ 34 $ 55 $ 224 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — $ (10) $ (2) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (156) $ (5) $ — $ (2) $ — $ — $ — Balance, January 1, 2021 $ 1,702 $ 39 $ 20 $ — $ — $ 39 $ 80 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 5 — — — — — 5 Investment gains (losses), net (16) — — — — 26 — Subtotal (11) — — — — 26 5 Other comprehensive income (loss) 34 (2) — — — — — Purchases 938 — 6 20 — — 211 Sales (473) (2) (18) — — — (23) Activity related to consolidated VIEs/VOEs — — — — — — — Transfers into Level 3 (1) 27 — — — — — — Transfers out of Level 3 (1) (713) — — — — — (72) Balance, December 31, 2021 $ 1,504 $ 35 $ 8 $ 20 $ — $ 65 $ 201 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — $ 26 $ 5 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 28 $ (2) $ — $ — $ — $ — $ — Corporate State and Political Subdivisions Asset-backed CMBS RMBS Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, January 1, 2020 $ 1,257 $ 39 $ 100 $ — $ — $ 36 $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 4 — — — — — — Investment gains (losses), net (16) — — — — 3 — Subtotal (12) — — — — 3 — Other comprehensive income (loss) (17) 2 — — — — — Purchases 514 — 20 — — — 81 Sales (226) (2) — — — — (1) Activity related to consolidated VIEs/VOEs — — — — — — — Transfers into Level 3 (1) 189 — — — — — — Transfers out of Level 3 (1) (3) — (100) — — — — Balance, December 31, 2020 $ 1,702 $ 39 $ 20 $ — $ — $ 39 $ 80 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — $ 3 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (18) $ 2 $ — $ — $ — $ — $ — ________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of December 31, 2022 or December 31, 2021, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Other Equity Investments (7) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2022 $ 16 $ 1,848 $ 5,815 $ 1 $ (8,525) $ (38) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income (1) — — — — — Net derivative gains (losses) (1) — (581) (1,706) — 3,076 — Total realized and unrealized gains (losses) (1) (581) (1,706) — 3,076 — Other comprehensive income (loss) — — — — — — Purchases (2) 8 40 122 — (462) (231) Sales (3) — (78) (117) — 147 — Settlements — — — — — — Other (8) — — — — — 22 Activity related to consolidated VIEs/VOEs (3) — — — — — Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) (3) — — — — — Balance, December 31, 2022 $ 17 $ 1,229 $ 4,114 $ 1 $ (5,764) $ (247) Other Equity Investments (7) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ (1) $ (581) $ (1,706) $ — $ 3,076 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — Balance, January 1, 2021 $ 84 $ 2,488 $ — $ 1 $ (11,131) $ (28) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income 21 — — — — — Net derivative gains (losses) (1) (5) — (625) 517 — 2,841 — Total realized and unrealized gains (losses) 21 (625) 517 — 2,841 — Other comprehensive income (loss) — — — — — — Purchases (2) 8 43 74 1 (463) (7) Sales (3) (92) (58) (35) — 88 — Other — — 5,259 — — — Activity related to consolidated VIEs/VOEs (4) — — — — (3) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) (1) — — (1) 140 — Balance, December 31, 2021 $ 16 $ 1,848 $ 5,815 $ 1 $ (8,525) $ (38) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ 2 $ (625) $ 517 $ — $ 2,841 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — Balance, January 1, 2020 $ 113 $ 2,139 $ — $ — $ (8,502) $ (23) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income (8) — — — — — Net derivative gains (losses) (1) (5) — 417 — — (2,253) — Total realized and unrealized gains (losses) (8) 417 — — (2,253) — Other comprehensive income (loss) — — — — — — Purchases (2) 9 43 — 1 (451) (4) Sales (3) (26) (79) — — 75 — Settlements (4) — — — — — 1 Change in estimate — (32) — — — 1 Activity related to consolidated VIEs/VOEs (4) — — — — (3) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) — — — — — — Balance, December 31, 2020 $ 84 $ 2,488 $ — $ 1 $ (11,131) $ (28) Other Equity Investments (7) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ (8) $ 417 $ 74 $ 1 $ (2,253) $ (7) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — (2) For the GMIB reinsurance contract asset, Amounts Due from Reinsurers and GMxB derivative features liability, represents attributed fee. (3) For the GMIB reinsurance contract asset and Amounts Due from Reinsurers, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid. (4) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (5) For the year ended December 31, 2021, GMxB Derivative Features Liability excludes settlement fees on CS Life reinsurance contract of $45 million. (6) For instruments held as of December 31, 2022 or December 31, 2021, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated state |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
INSURANCE LIABILITIES | INSURANCE LIABILITIES Variable Annuity Contracts – GMDB, GMIB, GIB and GWBL and Other Features The Company has certain variable annuity contracts with GMDB, GMIB, GIB and GWBL and other features in-force that guarantee one of the following: • Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals); • Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals); • Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages; • Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include either a five year or an annual reset; or • Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life. Liabilities for Variable Annuity Contracts with GMDB and GMIB Features without NLG Rider Feature The change in the liabilities for variable annuity contracts with GMDB and GMIB features and without a NLG feature are summarized in the tables below. The amounts for the direct contracts (before reinsurance ceded) and assumed contracts are reflected in the consolidated balance sheets in future policy benefits and other policyholders’ liabilities. The amounts for the ceded contracts are reflected in the consolidated balance sheets in amounts due from reinsurers. The amounts for the ceded GMIB that are reflected in the consolidated balance sheets in GMIB reinsurance contract asset are at fair value. Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature Years Ended December 31, 2022, 2021 and 2020 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance, January 1, 2020 $ 4,780 $ 76 $ (104) $ 4,673 $ 187 $ (2,139) Paid guarantee benefits (495) (22) 15 (293) 15 79 Other changes in reserve 812 18 1 1,646 (6) (428) Balance, December 31, 2020 $ 5,097 $ 72 $ (88) $ 6,026 $ 196 $ (2,488) Paid guarantee benefits (461) (12) 113 (377) (49) 58 Other changes in reserve 315 14 (65) 243 (7) 603 Impact of the Venerable Transaction — (74) (2,176) — (140) (2,141) Balance, December 31, 2021 $ 4,951 $ — $ (2,216) $ 5,892 $ — $ (3,968) Paid guarantee benefits (595) — 249 (602) — 76 Other changes in reserve 886 — (359) 336 — 646 Balance, December 31, 2022 $ 5,242 $ — $ (2,326) $ 5,626 $ — $ (3,246) ______________ (1) Change in Assumed is driven by the sale of CSLRC to Venerable. (2) Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction. Liabilities for Embedded and Freestanding Insurance Related Derivatives The liability for the GMxB derivative features, the liability for SCS, SIO, MSO and IUL indexed features and the asset and liability for the GMIB reinsurance contracts and amounts due from reinsurers related to GMIB NLG product features (GMIB NLG Reinsurance) are considered embedded or freestanding insurance derivatives and are reported at fair value. For the fair value of the assets and liabilities associated with these embedded or freestanding insurance derivatives, see Note 8 of the Notes to these Consolidated Financial Statements. Account Values and Net Amount at Risk Account Values and NAR for direct variable annuity contracts in force with GMDB and GMIB features as of December 31, 2022 are presented in the following tables by guarantee type. For contracts with the GMDB feature, the NAR in the event of death is the amount by which the GMDB feature exceeds the related Account Values. For contracts with the GMIB feature, the NAR in the event of annuitization is the amount by which the present value of the GMIB benefits exceed the related Account Values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB features may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive. Direct Variable Annuity Contracts with GMDB and GMIB Features as of December 31, 2022 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMDB features Account Values invested in: General Account $ 16,891 $ 97 $ 46 $ 144 $ 17,178 Separate Accounts 47,608 7,445 2,452 25,211 82,716 Total Account Values $ 64,499 $ 7,542 $ 2,498 $ 25,355 $ 99,894 NAR, gross $ 739 $ 1,422 $ 1,843 $ 23,101 $ 27,105 NAR, net of amounts reinsured $ 726 $ 1,291 $ 1,341 $ 12,469 $ 15,827 Average attained age of policyholders (in years) 51.6 69.8 76.1 71.8 55.3 Percentage of policyholders over age 70 12.1 % 52.8 % 74.7 % 60.7 % 21.1 % Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ 14 $ 188 $ 202 Separate Accounts — — 21,001 26,529 47,530 Total Account Values $ — $ — $ 21,015 $ 26,717 $ 47,732 NAR, gross $ — $ — $ 489 $ 7,540 $ 8,029 NAR, net of amounts reinsured $ — $ — $ 157 $ 3,071 $ 3,228 Average attained age of policyholders (in years) N/A N/A 65.8 71.4 69.2 Weighted average years remaining until annuitization N/A N/A 5.4 0.5 2.4 Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% For more information about the reinsurance programs of the Company’s GMDB and GMIB exposure, see “Reinsurance” in Note 11 of the Notes to these Consolidated Financial Statements 2021 Form 10-K. Separate Accounts Investments by Investment Category Underlying Variable Annuity Contracts with GMDB and GMIB Features The total Account Values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option, which is part of the General Account and variable investment options that invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB features. The investment performance of the assets impacts the related Account Values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive. Investment in Variable Insurance Trust Mutual Funds December 31, 2022 December 31, 2021 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 39,779 $ 14,075 $ 52,771 $ 20,015 Fixed income 4,416 1,964 5,391 2,507 Balanced 37,398 31,240 48,390 40,491 Other 1,123 251 1,025 263 Total $ 82,716 $ 47,530 $ 107,577 $ 63,276 Hedging Programs for GMDB, GMIB, GIB and Other Features The Company has a program intended to hedge certain risks associated first with the GMDB feature and with the GMIB feature of the Accumulator series of variable annuity products. The program has also been extended to cover other guaranteed benefits as they have been made available. This program utilizes derivative contracts, such as exchange-traded equity, currency and interest rate futures contracts, total return and/or equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in the capital markets. At the present time, this program hedges certain economic risks on products sold from 2001 forward, to the extent such risks are not externally reinsured. These programs do not qualify for hedge accounting treatment. Therefore, gains (losses) on the derivatives contracts used in these programs, including current period changes in fair value, are recognized in net derivative gains (losses) in the period in which they occur, and may contribute to income (loss) volatility. Variable and Interest-Sensitive Life Insurance Policies – NLG The NLG feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The NLG remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. Direct Liability (1) Year Ended December 31, 2022 2021 2020 (in millions) Beginning balance $ 1,096 $ 1,022 $ 898 Paid guarantee benefits (79) (84) (39) Other changes in reserves 145 158 163 Ending balance $ 1,162 $ 1,096 $ 1,022 _____________ (1) There were no amounts of reinsurance ceded in any period presented. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASESThe Company's operating leases primarily consist of real estate leases for office space. The Company also has operating leases for various types of office furniture and equipment. For certain equipment leases, the Company applies a portfolio approach to effectively account for the RoU operating lease assets and liabilities. For lease agreements for which the lease term or classification was reassessed after the occurrence of a change in the lease terms or a modification of the lease that did not result in a separate contract, the Company elected to combine the lease and related non-lease components for its operating leases; however, the non-lease components associated with the Company’s operating leases are primarily variable in nature and as such are not included in the determination of the RoU operating lease asset and lease liability, but are recognized in the period in which the obligation for those payments is incurred. The Company’s operating leases may include options to extend or terminate the lease, which are not included in the determination of the RoU operating asset or lease liability unless they are reasonably certain to be exercised. The Company's operating leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases. The Company typically does not include its renewal options in its lease terms for calculating its RoU operating lease asset and lease liability as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain it will exercise these renewal options until close to the initial end date of the lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As the Company's operating leases do not provide an implicit rate, the Company’s incremental borrowing rate, based on the information available at the lease commencement date, is used in determining the present value of lease payments. The Company primarily subleases floor space within its New Jersey and New York lease properties to various third parties. The lease term for these subleases typically corresponds to the original lease term. Balance Sheet Classification of Operating Lease Assets and Liabilities December 31, Balance Sheet Line Item 2022 2021 (in millions) Assets: Operating lease assets Other assets $ 520 $ 637 Liabilities: Operating lease liabilities Other liabilities $ 618 $ 768 The table below summarizes the components of lease costs for the years ended December 31, 2022, 2021 and 2020. Lease Costs Year Ended December 31, 2022 2021 2020 (in millions) Operating lease cost $ 179 $ 173 $ 169 Variable operating lease cost 52 49 49 Sublease income (53) (55) (56) Short-term lease expense — — — Net lease cost $ 178 $ 167 $ 162 Maturities of lease liabilities as of December 31, 2022 are as follows: Maturities of Lease Liabilities December 31, 2022 (in millions) Operating Leases: 2023 $ 186 2024 144 2025 69 2026 61 2027 52 Thereafter 170 Total lease payments 682 Less: Interest (64) Present value of lease liabilities $ 618 During April 2019, AB signed a lease, which commences in 2024, relating to approximately 190,000 square feet of space in New York City. The estimated total base rent obligation (excluding taxes, operating expenses and utilities) over the 20 year lease term is approximately $448 million. During the fourth quarter of 2020, AB exercised an option to return a half floor of this space, which reduced the square footage from approximately 190,000 to 166,000 square feet and the base rent obligation from $448 million to $393 million. Equitable Financial signed a 15-year lease which is expected to commence in 2023 once certain conditions of the lease are met, relating to approximately 89,000 square feet of space in New York City. Additionally, during December 2021, Equitable Financial amended its Syracuse office lease. The amendment included extending for an additional 5-year period, commencing January 1, 2024, approximately 143,000 square feet of space in Syracuse, NY. The below table presents the Company’s weighted-average remaining operating lease term and weighted-average discount rate. Weighted Averages - Remaining Operating Lease Term and Discount Rate December 31, 2022 2021 Weighted-average remaining operating lease term 7 years 7 years Weighted-average discount rate for operating leases 2.77 % 2.80 % Supplemental cash flow information related to leases was as follows: Lease Liabilities Information Year Ended December 31, 2022 2021 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 202 $ 209 $ 210 Non-cash transactions: Leased assets obtained in exchange for new operating lease liabilities $ 46 $ 109 $ 156 |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE The Company assumes and cedes reinsurance with other insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability. The following table summarizes the effect of reinsurance. The impact of the transactions described above results in a decrease to reinsurance assumed and an increase in reinsurance ceded. Year Ended December 31, 2022 2021 2020 (in millions) Direct premiums $ 1,042 $ 970 $ 929 Reinsurance assumed 180 189 222 Reinsurance ceded (228) (199) (154) Premiums $ 994 $ 960 $ 997 Direct charges and fee income $ 3,932 $ 4,250 $ 4,149 Reinsurance ceded (691) (613) (414) Policy charges and fee income $ 3,241 $ 3,637 $ 3,735 Direct policyholders’ benefits $ 4,371 $ 3,843 $ 5,826 Reinsurance assumed 209 238 241 Reinsurance ceded (1,195) (863) (741) Policyholders’ benefits $ 3,385 $ 3,218 $ 5,326 Direct interest credited to policyholders’ account balances $ 1,433 $ 1,271 $ 1,252 Reinsurance ceded (24) (52) (30) Interest credited to policyholders’ account balances $ 1,409 $ 1,219 $ 1,222 Ceded Reinsurance The Company reinsures most of its new variable life, UL and term life policies on an excess of retention basis. The Company generally retains on a per life basis up to $25 million for single lives and $30 million for joint lives with the excess 100% reinsured. The Company also reinsures risk on certain substandard underwriting risks and in certain other cases. On June 1, 2021, Holdings completed the sale of CSLRC to VIAC. Immediately following the closing of the Transaction, CSLRC and Equitable Financial entered into the Reinsurance Agreement, pursuant to which Equitable Financial ceded to CSLRC, on a combined coinsurance and modified coinsurance basis, legacy variable annuity policies sold by Equitable Financial between 2006-2008. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction. On October 3, 2022, as part of the Global Atlantic Transaction, Equitable Financial ceded to First Allmerica Financial Life Insurance Company on a combined coinsurance and modified coinsurance basis, a 50% quota share of approximately 360,000 legacy Group EQUI-VEST deferred variable annuity contracts issued by Equitable Financial between 1980 and 2008. As of December 31, 2022 and 2021, the Company had reinsured with non-affiliates in the aggregate approximately 41.6% and 47.6%, respectively, of its current exposure to the GMDB obligation on annuity contracts in-force and, subject to certain maximum amounts or caps in any one period, approximately 59.8% and 59.8% of its current liability exposure, respectively, resulting from the GMIB feature. For additional information, see Note 9 of the Notes to these Consolidated Financial Statements. In addition to the above, the Company cedes a portion of its group health, extended term insurance, and paid-up life insurance and substantially all of its individual disability income business through various coinsurance agreements. Assumed Reinsurance In addition to the sale of insurance products, the Company currently assumes risk from professional reinsurers. The Company also had a run-off portfolio of assumed reinsurance liabilities at CSLRC which was sold to Venerable in June 2021. The Company assumes accident, life, health, annuity (including products covering GMDB and GMIB benefits), aviation, special risk and space risks by participating in or reinsuring various reinsurance pools and arrangements. The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves. December 31, 2022 2021 (in millions) Ceded Reinsurance: Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives (1) $ 1,229 $ 1,848 Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable (2) 4,114 5,813 Third-party reinsurance recoverables related to insurance contracts 17,201 14,679 Top reinsurers: Venerable Insurance and Annuity Company (A- KBRA (IFRS) rating) 8,966 10,291 First Allmerica-GAF 4,005 RGA Reinsurance Company (AA- S&P rating)) 1,272 1,138 Zurich Life Insurance Company, Ltd. (AA- S&P rating) 1,181 1,318 Ceded group health reserves 47 40 Amount due to reinsurers 1,533 1,381 Top reinsurers: RGA Reinsurance Company 1,171 1,212 First Allmerica-GAF 147 — Protective Life Insurance Company 104 111 Assumed Reinsurance: Reinsurance assumed reserves 662 798 ______________ (1) The estimated fair values increased/(decreased) ($619) million, ($640) million and $349 million for the years ended December 31, 2022, 2021 and 2020, respectively. (2) Reported in amounts due from reinsurers. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable transaction. |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM DEBT | SHORT-TERM AND LONG-TERM DEBT The following table sets forth the Company’s total consolidated borrowings. Short-term and long-term debt consists of the following: December 31, 2022 2021 (in millions) Short-term debt: CLO short-term debt (5.74%) (1) $ 239 $ 92 Current portion of Long-term debt (2) 520 — Total short-term debt 759 92 Long-term debt: Senior Notes (5.00%, due 2048) 1,481 1,481 Senior Notes (4.35%, due 2028) 1,491 1,490 Senior Notes (3.90%, due 2023) — 519 Senior Debentures, (7.00%, due 2028) 350 349 Total long-term debt 3,322 3,839 Total borrowings $ 4,081 $ 3,931 ______________ (1) CLO Warehousing Debt related to VIE consolidation of CLO investment. (2) Current portion of Long-term debt have been reclassified to short-term debt for the year ended December 31, 2022 as the maturity date is within one year of year ended December 31, 2022. As of December 31, 2022, the Company is in compliance with all debt covenants. Short-term Debt AB Commercial Paper As of December 31, 2022 and 2021, AB had no commercial paper outstanding. The commercial paper is short term in nature, and as such, recorded value is estimated to approximate fair value (and considered a Level 2 security in the fair value hierarchy). Average daily borrowings for the commercial paper outstanding in 2022 were $190 million with a weighted average interest rate of 1.5%. Average daily borrowings for the commercial paper in 2021 were $157 million with a weighted average interest rate of 0.2%. AB Revolver Credit Facility AB had a $200 million committed, unsecured senior revolving credit facility (the "AB Revolver") with a leading international bank, which matured on November 16, 2021. Average daily borrowings for 2021 were $13 million, with weighted average interest rates of 1.1%. Long-term Debt Holdings Senior Notes and Senior Debentures On April 20, 2018, Holdings issued $800 million aggregate principal amount of 3.9% Senior Notes due 2023, $1.5 billion aggregate principal amount of 4.35% Senior Notes due 2028 and $1.5 billion aggregate principal amount of 5.0% Senior Notes due 2048 (together the “Notes”). These amounts are recorded net of original issu e discount and issuance costs. During 2021 Holdings made a principal prepayment of $280 million on the 3.9% Senior Notes due. As of December 31, 2022, the 3.9% Senior Notes due 2023 are classified as short-term as their maturity date is within one year. As of December 31, 2022 and 2021, Holdings had outstanding $350 million and $349 million aggregate principal amount of 7.0% Senior Debentures due 2028 (the “Senior Debentures”). On October 1, 2018, AXA Financial merged with and into its direct parent, Holdings, with Holdings continuing as the surviving entity ( the “AXA Financial Merger”). As a result of the AXA Financial merger, Holdings assumed AXA Financial’s obligations under the Senior Debentures. The Notes and Senior Debentures contain customary affirmative and negative covenants, including a limitation on certain liens and a limit on the Company’s ability to consolidate, merge or sell or otherwise dispose of all or substantially all of its assets. The Notes and Senior Debentures also include customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding Notes and Senior Debentures may be accelerated. As of December 31, 2022, the Company was not in breach of any of the covenants. Contingent Funding Arrangements For information regarding activity pertaining to our contingent funding arrangements, see Note 17 of the Notes to these Consolidated Financial Statements. Credit Facilities Holdings Revolving Credit Facility In February 2018, Holdings entered into a $2.5 billion five-year senior unsecured revolving credit facility with a syndicate of banks. In June 2021, Holdings entered into an amended and restated revolving credit agreement, which lowered the facility amount to $1.5 billion and extended the maturity date to June 24, 2026, among other changes. The revolving credit facility has a sub-limit of $1.5 billion for the issuance of letters of credit to support the life insurance business reinsured by EQ AZ Life Re. As of December 31, 2022, the Company had $225 million of undrawn letters of credit issued out of the $1.5 billion sub-limit for Equitable Financial as beneficiary. Bilateral Letter of Credit Facilities In February 2018, the Company entered into bilateral letter of credit facilities, each guaranteed by Holdings, with an aggregate principal amount of approximately $1.9 billion, with multiple counterparties. In June 2021, Holdings entered into amendments with each of the issuers of its bilateral letter of credit facilities to effect changes similar to those effected in the amended and restated revolving credit agreement. The respective facility limits of the bilateral letter of credit facilities remained unchanged. These facilities support the life insurance business reinsured by EQ AZ Life Re. The HSBC facility matures on February 16, 2024 and the rest of the facilities mature on February 16, 2026 and February 2027. The bilateral letter of credit facilities were not drawn upon during December 31, 2022 and 2021. AB Credit Facility AB has a $800 million committed, unsecured senior revolving credit facility (the “AB Credit Facility”) with a group of commercial banks and other lenders which matures on October 13, 2026. The credit facility provides for possible increases in the principal amount by up to an aggregate incremental amount of $200 million. Any such increase is subject to the consent of the affected lenders. The AB Credit Facility is available for AB and SCB LLC for business purposes, including the support of AB’s commercial paper program. Both AB and SCB LLC can draw directly under the AB Credit Facility and AB management may draw on the AB Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the AB Credit Facility. The AB Credit Facility contains affirmative, negative and financial covenants, which are customary for facilities of this type, including, restrictions on dispositions of assets, restrictions on liens, a minimum interest coverage ratio and a maximum leverage ratio. As of December 31, 2022, AB was in compliance with these covenants. The AB Credit Facility also includes customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or lender’s commitments may be terminated. Also, under such provisions, upon the occurrence of certain insolvency- or bankruptcy-related events of default, all amounts payable under the AB Credit Facility would automatically become immediately due and payable, and the lender’s commitments would automatically terminate. Amounts under the Credit Facility may be borrowed, repaid and re-borrowed by us from time to time until the maturity of the facility. Voluntary prepayments and commitment reductions requested by AB are permitted at any time without a fee (other than customary breakage costs relating to the prepayment of any drawn loans) upon proper notice and subject to a minimum dollar requirement. Borrowings under the AB Credit Facility bear interest at a rate per annum, which will be, at AB’s option, a rate equal to an applicable margin, which is subject to adjustment based on the credit ratings of AB, plus one of the following indices: LIBOR; a floating base rate; or the Federal Funds rate. As of December 31, 2022 and 2021, AB had no amounts outstanding under the AB Credit Facility. During the years ended the December 31, 2022 and 2021, AB and SCB LLC did not draw upon the AB Credit Facility. In addition, SCB LLC currently has five uncommitted lines of credit with five financial institutions. Four of these lines of credit permit borrowing up to an aggregate of approximately $315 million, with AB named as an additional borrower, while the other line has no stated limit. As of December 31, 2022 and 2021, SCB LLC had no outstanding balance on these lines of credit. Average daily borrowings during the years ended 2022 and 2021 were $1 million and $47 thousand with weighted average interest rates of approximately 3.7% and 0.9%, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions. Investment Management and Related Services Provided by AB to Related Mutual Funds AB provides investment management and related services to mutual funds sponsored by AB. Revenues earned by AB from providing these services were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Investment management and services fees $ 1,453 $ 1,645 $ 1,368 Distribution revenues 591 637 516 Other revenues - shareholder servicing fees 79 86 79 Other revenues - other 8 8 8 Total $ 2,131 $ 2,376 $ 1,971 Investment Management and Administrative Services Provided by EIM and EIMG to Related Trusts EIMG and EIM provide investment management and administrative services to EQAT, EQ Premier VIP Trust, 1290 Funds and the Other AXA Trusts, all of which are considered related parties. Investment management and service fees earned are calculated as a percentage of assets under management and are recorded as revenue as the related services are performed. The table below summarizes the expenses reimbursed to/from the Company and the fees received/paid by the Company in connection with certain services described above for the years ended December 31, 2022, 2021 and 2020. Year Ended December 31, 2022 2021 2020 (in millions) Revenue received or accrued for: Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds (1) $ 708 $ 840 $ 724 Total $ 708 $ 840 $ 724 _______ |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension Plans Holdings and Equitable Financial Retirement Plans Equitable Financial sponsors the Equitable 401(k) Plan, a qualified defined contribution plan for eligible employees and financial professionals. The plan provides for a company contribution, a company matching contribution, and a discretionary profit-sharing contribution. Expenses associated with this 401(k) Plan were $38 million, $64 million and $49 million for the years ended December 31, 2022, 2021 and 2020, respectively. Holdings sponsors the MONY Life Retirement Income Security Plan for Employees and Equitable Financial sponsors the Equitable Retirement Plan (the “ Equitable Financial QP”), both of which are frozen qualified defined benefit plans covering eligible employees and financial professionals. These pension plans are non-contributory, and their benefits are generally based on a cash balance formula and/or, for certain participants, years of service and average earnings over a specified period. Holdings has assumed primary liability for both plans. Equitable Financial remains secondarily liable for its obligations under the Equitable Financial QP and would recognize such liability in the event Holdings does not perform. Holdings and Equitable Financial also sponsor certain nonqualified deferred compensation plans, including the Equitable Excess Retirement Plan, that provide retirement benefits in excess of the amount permitted under the tax law for the qualified plans. Holdings and Equitable Financial use a December 31 measurement date for their pension plans. AB Retirement Plans AB maintains the Profit Sharing Plan for Employees of AB, a tax-qualified retirement plan for U.S. employees. Employer contributions under this plan are discretionary and generally are limited to the amount deductible for federal income tax purposes. AB also maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AB in the United States prior to October 2, 2000 (the “AB Plan”). Benefits under the AB Plan are based on years of credited service, average final base salary, and primary Social Security benefits. AB uses a December 31 measurement date for the AB Plan. Net Periodic Pension Expense (Benefit) Components of net periodic pension expense for the Company’s qualified and non-qualified plans were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Service cost $ 6 $ 6 $ 6 Interest cost 57 46 77 Expected return on assets (159) (154) (147) Actuarial (gain) loss 1 1 1 Net amortization 65 99 103 Impact of settlement 6 6 7 Net periodic pension expense (benefit) $ (24) $ 4 $ 47 Changes in Projected Benefit Obligation (PBO) Changes in the PBO of the Company’s qualified and non-qualified plans were comprised of: 2022 2021 (in millions) Projected benefit obligation, beginning of year $ 2,900 $ 3,180 Interest cost 57 45 Actuarial (gains)/losses (1) (487) (95) Benefits paid (190) (198) Settlements (26) (32) Projected benefit obligation, end of year $ 2,254 2,900 ______________ (1) Actuarial gains and losses are a product of changes in the discount rate as shown below. The following table discloses the change in plan assets and the funded status of the Company’s qualified pension plans and non-qualified pension plans: 2022 2021 (in millions) Pension plan assets at fair value, beginning of year $ 2,808 $ 2,744 Actual return on plan assets (515) 259 Benefits paid (158) (165) Annuity purchases (25) (30) Pension plan assets at fair value, end of year 2,110 2,808 PBO 2,254 2,900 Excess of PBO over pension plan assets, end of year $ 144 $ 92 Accrued pension costs of $144 million and $93 million as of December 31, 2022 and 2021, respectively, were recognized in the accompanying consolidated balance sheets to reflect the unfunded status of these plans. December 31, 2022 2021 (in millions) Projected benefit obligation $ 2,254 $ 2,900 Accumulated benefit obligation $ 2,254 $ 2,900 Fair value of plan assets $ 2,110 $ 2,808 Unrecognized Net Actuarial (Gain) Loss The following table discloses the amounts included in AOCI as of December 31, 2022 and 2021 that have not yet been recognized as components of net periodic pension cost. December 31, 2022 2021 (in millions) Unrecognized net actuarial (gain) loss $ 744 $ 620 Unrecognized prior service cost (credit) (1) (1) Total $ 743 $ 619 Pension Plan Assets The fair values of qualified pension plan assets are measured and ascribed to levels within the fair value hierarchy in a manner consistent with the fair values of the Company’s invested assets that are measured at fair value on a recurring basis. See Note 8 of the Notes to these Consolidated Financial Statements for a description of the fair value hierarchy. The following table discloses the allocation of the fair value of total qualified pension plan assets as of December 31, 2022 and 2021: December 31, 2022 2021 Fixed maturities 46.4 % 47.2 % Equity securities 21.4 29.7 Equity real estate 22.6 16.5 Cash and short-term investments 4.0 2.5 Other 5.6 4.1 Total 100.0 % 100.0 % Qualified pension plan assets are invested with the primary objective of return, giving consideration to prudent risk. Guidelines regarding the allocation of plan assets are established by the respective Investment Committees for the plans and are designed with a long-term investment horizon. As of December 31, 2022, the qualified pension plans continued their investment allocation strategy to target a 50% - 50% mix of long-duration bonds and “return-seeking” assets, including public equities, real estate, hedge funds, and private equity. The following tables disclose the fair values of qualified pension plan assets and their level of observability within the fair value hierarchy as of December 31, 2022 and 2021, respectively. Level 1 Level 2 Total (in millions) December 31, 2022: Fixed Maturities: Corporate $ — $ 619 $ 619 U.S. Treasury, government and agency — 336 336 States and political subdivisions — 8 8 Foreign governments — 15 15 Common equity, REITs and preferred equity 308 59 367 Mutual funds 30 — 30 Collective Trust — 61 61 Cash and cash equivalents 47 — 47 Short-term investments — 34 34 Total Assets at Fair Value 385 1,132 1,517 Investments measured at NAV — — 600 Total Investments at Fair Value $ 385 $ 1,132 $ 2,117 December 31, 2021: Fixed Maturities: Corporate $ — $ 842 $ 842 U.S. Treasury, government and agency — 426 426 States and political subdivisions — 16 16 Foreign governments — 18 18 Common equity, REITs and preferred equity 576 108 684 Mutual funds 62 — 62 Collective Trust — 99 99 Cash and cash equivalents 19 — 19 Short-term investments — 46 46 Total Assets at Fair Value 657 1,555 2,212 Investments measured at NAV — — 593 Total Investments at Fair Value $ 657 $ 1,555 $ 2,805 The following table lists investments for which NAV is calculated; NAV is used as a practical expedient to determine the fair value of these investments as of December 31, 2022 and 2021. Practical Expedient Disclosure as of December 31, 2022 and 2021 Investment Fair Value Redemption Frequency (If currently eligible) Redemption Notice Period Unfunded Commitments (in millions) December 31, 2022: Private Equity Fund $ 79 N/A (1) (2) N/A $ 16 Private Real Estate Investment Trust 468 Quarterly One Quarter — Hedge Fund 53 Calendar Quarters (3) Previous Quarter End $ 10 Total (4) $ 600 December 31, 2021: Private Equity Fund $ 72 N/A (1)(2) N/A $ 19 Private Real Estate Investment Trust 457 Quarterly One Quarter — Hedge Fund 65 Calendar Quarters (3) Previous Quarter End $ 5 Total (4) $ 594 _______________ (1) Cannot sell or transfer ownership interest without prior written consent to transfer, and by meeting several criteria (e.g., does not adversely affect other investors). (2) Cannot sell interest in the vehicle without prior written consent of the managing member. (3) March, June, September and December. (4) Includes equity method investments of $111 million and $109 million as of December 31, 2022 and 2021, respectively. The table below presents a reconciliation for all Level 3 fair values of qualified pension plan assets as of December 31, 2022, 2021 and 2020, respectively: Level 3 Instruments Fair Value Measurements Private Real Estate Investment Trusts Other Equity Investments Fixed Maturities (in millions) Balance, January 1, 2022 $ — $ — $ (1) Actual return on plan assets — Sales/Settlements — — (1) Balance, December 31, 2022 $ — $ — $ (2) Balance, January 1, 2021 $ — $ — $ — Actual return on plan assets — Sales/Settlements — — (1) Balance, December 31, 2021 $ — $ — $ (1) Balance, January 1, 2020 $ — $ — $ 1 Actual return on plan assets — Sales/Settlements — — (1) Balance, December 31, 2020 $ — $ — $ — As of December 31, 2022, assets classified as Level 1, Level 2 and Level 3 comprise approximately 18.2%, 53.5% and 0.0%, respectively, of qualified pension plan assets. As of December 31, 2021, assets classified as Level 1, Level 2 and Level 3 comprised approximately 23.4%, 55.4% and 0.0%, respectively, of qualified pension plan assets. There are no significant concentrations of credit risk arising within or across categories of qualified pension plan assets. In addition to the plan assets above, the Company and certain subsidiaries purchased COLI policies on the lives of certain key employees. Under the terms of these polices the Company and these subsidiaries are named as beneficiaries. The purpose of the COLI policies is to provide the Company additional funds with which to satisfy various employee benefit obligations held by the Company, including those associated with its nonqualified defined benefit plans and post-retirement benefit plans. As of December 31, 2021 and 2020, the carrying value of COLI was $886 million and $$1.0 billion, respectively. Assumptions Discount Rate The benefits obligations and related net periodic costs of the Company’s qualified and non-qualified pension plans are measured using discount rate assumptions that reflect the rates at which the plans’ benefits could be effectively settled. Projected nominal cash outflows to fund expected annual benefits payments under each of the plans are discounted using a published high-quality bond yield curve as a practical expedient for a matching bond approach. Beginning in 2014, the Company uses the Citigroup Pension Above-Median-AA Curve (the “Citigroup Curve”) for this purpose. The Company has concluded that an adjustment to the Citigroup Curve is not required after comparing the projected benefit streams of the plans to the cash flows and duration of the reference bonds. Mortality In October 2016, the Society of Actuaries (“SOA”) released MP-2016, its second annual update to the “gold standard” mortality projection scale issued by the SOA in 2014, reflecting three additional years of historical U.S. population historical mortality data (2012 through 2014). Similar to its predecessor (MP-2015), MP-2016 indicated that, while mortality data continued to show longer lives, longevity was increasing at a slower rate and lagging behind that previously suggested both by MP-2015 and MP-2014. The Company considered this new data as well as observations made from current practice regarding how to best estimate improved trends in life expectancies and concluded to continue using the RP-2000 base mortality table projected on a full generational basis with Scale BB mortality improvements for purposes of measuring and reporting its consolidated defined benefit plan obligations as of December 31, 2022. The following table discloses assumptions used to measure the Company’s pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2022 and 2021. December 31, 2022 2021 Discount rates: Equitable Financial QP 5.13% 2.55% Equitable Excess Retirement Plan 5.09% 2.47% MONY Life Retirement Income Security Plan for Employees 5.22% 2.78% AB Qualified Retirement Plan 5.50% 2.55% Other defined benefit plans 4.93%-5.22% 2.05%-2.78% Periodic cost 4.84% - 5.20% 1.18%-2.78% Cash balance interest crediting rate for pre-April 1, 2012 accruals 4.00% 4.00% Cash balance interest crediting rate for post-April 1, 2012 accruals 0.25% 0.50% Rates of compensation increase: Benefit obligation 5.96% 5.97% Periodic cost 6.37% 6.33% Expected long-term rates of return on pension plan assets (periodic cost) 6.25% 6.25% The expected long-term rate of return assumption on plan assets is based upon the target asset allocation of the plan portfolio and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class. Prior to 1987, participants’ benefits under the Equitable Financial QP were funded through the purchase of non-participating annuity contracts from Equitable Financial. Benefit payments under these contracts were approximately $3 million and $4 million for 2022 and 2021, respectively. Post-Retirement Benefits The Company eliminated any subsidy for post-retirement medical and dental coverage for individuals retiring on or after May 1, 2012. The Company continues to contribute to the cost of post-retirement medical and dental coverage for certain individuals who retired prior to May 1, 2012 based on years of service and age, subject to rights reserved in the plans to change or eliminate these benefits. The Company funds these post-retirement benefits on a pay-as-you-go basis. The Company sponsors the Equitable Executive Survivor Benefits Plan (the “ESB Plan”) which provides post-retirement life insurance benefits to eligible executives. Eligible executives may choose up to four levels of coverage with each level providing a benefit equal to the executive’s compensation, subject to an overall $25 million cap. Aside from the ESB Plan, the Company does not currently offer post-retirement life insurance benefits but continues to provide post-retirement life insurance benefits to certain active and retired employees who were eligible for such benefits under discontinued plans. The ESB Plan was closed to new participants on January 1, 2019. For 2022 and 2021, post-retirement benefits payments were $20 million and $28 million, respectively, net of employee contributions. The Company uses a December 31 measurement date for its post-retirement plans. Components of Net Post-Retirement Benefits Costs Year Ended December 31, 2022 2021 2020 (in millions) Service cost $ 2 $ 2 $ 2 Interest cost 10 8 13 Net amortization 6 9 9 Net periodic post-retirement benefits costs $ 18 $ 19 $ 24 Changes in the accumulated benefits obligation of the Company’s post-retirement plans recognized in the accompanying consolidated financial statements are described in the following table: Accumulated Post-Retirement Benefits Obligation December 31, 2022 2021 (in millions) Accumulated post-retirement benefits obligation, beginning of year $ 466 $ 516 Service cost 2 2 Interest cost 10 8 Contributions and benefits paid (20) (28) Actuarial (gains) losses (109) (32) Accumulated post-retirement benefits obligation, end of year $ 349 $ 466 The post-retirement medical plan obligations of the Company are offset by an anticipated subsidy from Medicare Part D, which is assumed to increase with the healthcare cost trend. Assumed Healthcare Cost Trend Rates used to Measure the Expected Cost of Benefits December 31, 2022 2021 Following year 5.4% 5.1% Ultimate rate to which cost increase is assumed to decline 3.9% 4.0% Year in which the ultimate trend rate is reached 2096 2094 The following table discloses the amounts included in AOCI as of December 31, 2022 and 2021 that have not yet been recognized as components of net periodic post-retirement benefits cost: December 31, 2022 2021 (in millions) Unrecognized net actuarial (gains) losses $ 17 $ 135 Unrecognized prior service (credit) (24) (26) Total $ (7) $ 109 The assumed discount rates for measuring the post-retirement benefit obligations as of December 31, 2022 and 2021 were determined in substantially the same manner as described above for measuring the pension benefit obligations. The following table discloses the range of discrete single equivalent discount rates and related net periodic cost at and for the years ended December 31, 2022 and 2021. December 31, 2022 2021 Discount rates: Benefit obligation 5.07%-5.20% 2.43%-2.72% Periodic cost 2.71%-4.58% 2.34%-2.52% The Company provides post-employment medical and life insurance coverage for certain disabled former employees. The accrued liabilities for these post-employment benefits were $2 million and $3 million, respectively, as of December 31, 2022 and 2021. Components of net post-employment benefits costs follow: Year Ended December 31, 2022 2021 2020 (in millions) Service cost $ 1 $ 1 $ 1 Interest cost — — — Net amortization — — (5) Net (gain) loss — — — Net periodic post-employment benefits costs $ 1 $ 1 $ (4) The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2023, and in the aggregate for the five years thereafter. These estimates are based on the same assumptions used to measure the respective benefit obligations as of December 31, 2022 and include benefits attributable to estimated future employee service. Postretirement Benefits Health Calendar Year Pension Benefits Life Insurance Gross Estimate Payment Estimated Medicare Part D Subsidy Net Estimate Payment (in millions) 2023 $ 210,551 $ — $ — $ — $ — 2024 $ 245,066 $ — $ — $ — $ — 2025 $ 198,657 $ — $ — $ — $ — 2026 $ 188,175 $ — $ — $ — $ — 2027 $ 180,393 $ — $ — $ — $ — 2028 to 2032 $ 2,280,266 $ — $ — $ — $ — Effective December 31, 2020, the current health plan coverages through the Equitable Retiree Group Health Plan were terminated. Medicare-eligible retirees and their Medicare-eligible dependents were given the opportunity to elect a Medicare plan through the Aon Retiree Health Exchange effective January 1, 2021 and certain eligible retirees were offered a retiree health reimbursement account contribution to help pay for premiums and out-of-pocket expenses. |
SHARE-BASED COMPENSATION PROGRA
SHARE-BASED COMPENSATION PROGRAMS | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PROGRAMS | SHARE-BASED COMPENSATION PROGRAMS Compensation costs for 2022, 2021 and 2020 for share-based payment arrangements as further described herein are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Performance Shares $ 31 $ 17 $ 11 Stock Options 1 — 7 Restricted Stock Units 296 257 234 Total compensation expenses $ 328 $ 274 $ 252 Income Tax Benefit $ 68 $ 58 $ 52 Since 2018, Holdings has granted equity awards under the Equitable Holdings, Inc. 2018 Omnibus Incentive Plan and the Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (together the “Omnibus Plans”) which were adopted by Holdings on April 25, 2018 and February 28, 2019 respectively. Awards under the Omnibus Plans are linked to Holdings’ common stock. As of December 31, 2022, the common stock reserved and available for issuance under the Omnibus Plans was 22 million shares. Holdings may issue new shares or use common stock held in treasury for awards linked to Holdings’ common stock. Retirement and Protection Equity awards for R&P employees, financial professionals and directors in 2022, 2021 and 2020 were granted under the Omnibus Plans. All grants discussed in this section will be settled in shares of Holdings’ common stock. For awards with graded vesting schedules and service-only vesting conditions, including Holdings RSUs and other forms of share-based payment awards, the Company applies a straight-line expense attribution policy for the recognition of compensation cost. Actual forfeitures with respect to the 2022, 2021, and 2020 grants were considered immaterial in the recognition of compensation cost. Annual Awards Each year, the Compensation Committee of the Holdings’ Board of Directors approves an equity-based award program with awards under the program granted at its regularly scheduled meeting in February. Annual awards under Holdings’ equity programs for 2022, 2021 and 2020 consisted of a mix of equity vehicles including Holdings RSUs, Holdings stock options and Holdings performance shares. If Holdings pays any ordinary dividend in cash, all outstanding Holdings RSUs and performance shares will accrue dividend equivalents in the form of additional Holdings RSUs or performance shares to be settled or forfeited consistent with the terms of the related award. Holdings RSUs Holdings RSUs granted to R&P employees under an annual program vest ratably in equal annual installments over a three-year period. The fair value of the awards was measured using the closing price of the Holdings share on the grant date, and the resulting compensation expense will be recognized over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible, but not less than one year. Holdings Stock Options Holdings stock options granted to R&P employees have a three-year graded vesting schedule, with one-third vesting on each of the three anniversaries. The total grant date fair value of Holdings stock options will be charged to expense over the shorter of the vesting period or the period up to the date at which the participant becomes retirement eligible, but not less than one year. Holdings Performance Shares Holdings performance shares granted to R&P employees are subject to performance conditions and a three-year cliff-vesting. The performance shares consist of two distinct tranches; one based on the Company’s return-on-equity targets (the “ROE Performance Shares”) and the other based on the Holdings’ relative total shareholder return targets (the “TSR Performance Shares”), each comprising approximately one-half of the award. Participants may receive from 0% to 200% of the unearned performance shares granted. The grant-date fair value of the ROE Performance Shares is established once all applicable Non-GAAP ROE targets are determined and approved. The fair value of the awards was measured using the closing price of the Holdings share on the grant date. The grant-date fair value of the TSR Performance Shares was measured using a Monte Carlo approach. Under the Monte Carlo approach, stock returns were simulated for Holdings and the selected peer companies to estimate the payout percentages established by the conditions of the award. The aggregate grant-date fair value of the unearned TSR Performance Shares will be recognized as compensation expense over the shorter of the cliff-vesting period or the period up to the date at which the participant becomes retirement eligible, but not less than one year. Director Awards Holdings makes annual grants of unrestricted Holdings shares to non-employee directors of Holdings, Equitable Financial and Equitable America. The fair value of these awards was measured using the closing price of Holdings shares on the grant date. These awards immediately vest and all compensation expense is recognized at the grant date. Prior Equity Award Grants In 2017 and prior years, equity awards for employees, financial professional and directors in our businesses were available under the umbrella of AXA’s global equity program. Accordingly, equity awards granted in 2017 and prior years were linked to AXA’s stock. The fair values of these prior awards are measured at the grant date by reference to the closing price of the AXA ordinary share, and the result, as adjusted for achievement of performance targets and pre-vesting forfeitures, generally is attributed over the shorter of the requisite service period, the performance period, if any, or to the date at which retirement eligibility is achieved and subsequent service no longer is required for continued vesting of the award. Investment Management and Research Employees and directors in our Investment Management and Research business participate in several unfunded long-term incentive compensation plans maintained by AB. Awards under these plans are linked to AB Holding Units. Under the AB 2017 Long Term Incentive Plan (“2017 Plan”), which was adopted at a special meeting of AB Holding Unit holders held on September 29, 2017, the following forms of awards may be granted to AB employees and Directors: (i) restricted AB Holding Units or phantom restricted AB Holding Units (a “phantom” award is a contractual right to receive AB Holding Units at a later date or upon a specified event); (ii) options to buy AB Holding Units; and (iii) other AB Holding Unit-based awards (including, without limitation, AB Holding Unit appreciation rights and performance awards). The 2017 Plan will expire on September 30, 2027, and no awards under the 2017 Plan will be made after that date. Under the 2017 Plan, the aggregate number of AB Holding Units with respect to which awards may be granted is 60 million, including no more than 30 million newly-issued AB Holding Units. AB engages in open-market purchases of AB Holding Units to help fund anticipated obligations under its long-term incentive compensation plans and for other corporate purposes. During 2022, 2021, and 2020 AB purchased 5.2 million, 5.6 million and 5.4 million AB Holding Units for $212 million, $262 million and $149 million, respectively. These amounts reflect open-market purchases of 2.3 million, 2.6 million and 3.1 million AB Holding Units for $92.7 million, $117.9 million and $74.0 million, respectively, with the remainder relating to purchases of AB Holding Units from AB employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards, offset by AB Holding Units purchased by AB employees as part of a distribution reinvestment election. During 2022, 2021, and 2020 AB granted 4.7 million, 7 million and 5.7 million restricted AB Holding units to AB employees and directors, respectively. During 2022, 2021, and 2020 AB Holding issued 6 thousand, 100 thousand and 5 thousand AB Holding Units, respectively, upon exercise of options to buy AB Holding Units. AB Holding used the proceeds of $100 thousand, $3 million and $147 thousand respectively, received from employees as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Holding Units. As of December 31, 2022, no options to buy AB Holding Units had been granted and 29.8 million AB Holding Units, net of withholding tax requirements, were subject to other AB Holding Unit awards made under the 2017 Plan or an equity compensation plan with similar terms that was canceled in 2017. AB Holding Unit-based awards (including options) in respect of 30.2 million AB Holding Units were available for grant as of December 31, 2022. Summary of Stock Option Activity A summary of activity in the Holdings, AB and AXA option plans during 2022 as follows: Options Outstanding EQH Shares AB Holding Units AXA Ordinary Shares Number Outstanding (in 000’s) Weighted Average Exercise Price Number Outstanding (In 000’s) Weighted Average Exercise Price Number Weighted Options outstanding at January 1, 2022 2,040 $ 21.69 5,774 $ 20.12 874 € 22.39 Options granted — — — — — — Options exercised (73) 18.05 (5,774) 20.12 (181) — Options forfeited, net (24) 22.58 — — (27) — Options expired — — — — — — Options outstanding at December 31, 2022 1,943 $ 21.75 — $ — 666 € 22.95 Aggregate intrinsic value (1) $ 5,895 $ — € — Weighted average remaining contractual term (in years) 6.55 0.00 4.00 Options exercisable at December 31, 2022 1,517 $ 21.45 — $ — 630 € 23.03 Aggregate intrinsic value (1) $ 5,058 $ — € — Weighted average remaining contractual term (in years) 6.41 0.00 3.91 _______________ (1) Aggregate intrinsic value, presented in thousands, is calculated as the excess of the closing market price on December 31, 2022 of the respective underlying shares over the strike prices of the option awards. For awards with strike prices higher than market prices, intrinsic value is shown as zero. A summary of stock option grant assumptions activity in the Company option plans during the years ended December 31, 2022 , 2021, and 2020 follows: EQH Shares (1) 2022 (2) 2021 (2) 2020 Dividend yield —% —% 2.59% Expected volatility —% —% 26.00% Risk-free interest rates —% —% 1.19% Expected life in years — — 6.0 Weighted average fair value per option at grant date $ — $ — $ 4.37 _______________ (1) The expected volatility is based on historical selected peer data, the weighted average expected term is determined by using the simplified method due to lack of sufficient historical data, the expected dividend yield based on Holdings’ expected annualized dividend, and the risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term. (2) No stock options granted during the years December 31, 2022 and 2021 . As of December 31, 2022, approximately $74 thousand of unrecognized compensation cost related to AXA unvested stock option awards is expected to be recognized by the Company over a weighted-average period of 0.2 years. Approximately $113 thousand of unrecognized compensation cost related to Holdings unvested stock option awards is expected to be recognized by the Company over a weighted average period of 0.1 years. Summary of Restricted Stock Unit Award Activity The market price of a Holdings share is used as the basis for the fair value measure of a Holdings RSU. For purposes of determining compensation cost for stock-settled Holdings RSUs, fair value is fixed at the grant date until settlement, absent modification to the terms of the award. For liability-classified cash-settled Holdings and AXA RSUs, fair value is remeasured at the end of each reporting period. As of December 31, 2022, approximately 3 million Holdings RSUs remain unvested. Unrecognized compensation cost related to these awards totaled approximately $33 million and is expected to be recognized over a weighted-average period of 1.64. As of December 31, 2022, approximately 15 million AB Holding Unit awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $114 million is expected to be recognized over a weighted-average period of 6.1 years. The following table summarizes Holdings restricted share units activity for 2022. Shares of Holdings Restricted Stock Units Weighted-Average Grant Date Fair Value Unvested as of January 1, 2022 3,228,733 $ 21.15 Granted 1,340,926 33.28 Forfeited (172,349) 28.39 Vested (1,608,145) 23.03 Unvested as of December 31, 2022 2,789,165 $ 29.46 Summary of Performance Award Activity As of December 31, 2022, approximately 1.3 million Holdings awards remain unvested. Unrecognized compensation cost related to these awards totaled approximately $10 million and is expected to be recognized over a weighted-average period of 1.53 years. The following table summarizes Holdings and AXA performance awards activity for 2022. Shares of Holdings Performance Awards Weighted-Average Grant Date Shares of AXA Performance Awards Weighted-Average Grant Date Unvested as of January 1, 2022 1,217,222 $ 28.93 62,747 $ 21.28 Granted 704,769 33.01 — — Forfeited (107,921) 28.43 — — Vested (486,475) 23.89 (62,747) 21.28 Unvested as of December 31, 2022 1,327,595 $ 32.98 — $ — |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income from operations before income taxes included income (loss) from domestic operations of $2.4 billion, ($392) million and ($1.3) billion for the years ended December 31, 2022, 2021 and 2020, and income from foreign operations of $135 million, $223 million and $169 million for the years ended December 31, 2022, 2021 and 2020. Approximately $35 million, $59 million and $45 million of the Company’s income tax expense is attributed to foreign jurisdictions for the years ended December 31, 2022, 2021 and 2020. A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows: Year Ended December 31, 2022 2021 2020 (in millions) Income tax (expense) benefit: Current (expense) benefit $ (5) $ (129) $ (5) Deferred (expense) benefit (494) 274 749 Total $ (499) $ 145 $ 744 The Federal income taxes attributable to consolidated operations are different from the amounts determined by multiplying the earnings before income taxes and noncontrolling interest by the expected Federal income tax rate of 21%. The sources of the difference and their tax effects are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Expected income tax (expense) benefit $ (531) $ 36 $ 229 Noncontrolling interest 40 69 50 Non-taxable investment income 53 80 92 Tax audit interest (13) (14) (8) State income taxes (63) (47) (38) Tax settlements/uncertain tax position release — — 398 Tax credits 22 28 21 Other (7) (7) — Income tax (expense) benefit $ (499) $ 145 $ 744 During the fourth quarter of 2020, the Company agreed to the Internal Revenue Service’s Revenue Agent’s Report for its consolidated 2010 through 2013 Federal corporate income tax returns. The impact on the Company’s financial statements and unrecognized tax benefits was a tax benefit of $398 million. The components of the net deferred income taxes are as follows: December 31, 2022 2021 Assets Liabilities Assets Liabilities (in millions) Compensation and related benefits $ 226 $ — $ 273 $ — Net operating loss and credits 240 — 699 — Reserves and reinsurance 1,607 — 2,281 — DAC — 1,405 — 874 Unrealized investment gains/losses 2,012 — — 965 Investments — 235 — 794 Other 92 — — 76 Valuation allowance (1,570) — — — Total $ 2,607 $ 1,640 $ 3,253 $ 2,709 During the fourth quarter of 2022, the Company established a valuation allowance of $1.6 billion against its deferred tax assets related to unrealized capital losses in the available-for-sale securities portfolio. When assessing recoverability, the Company considers its ability and intent to hold the underlying securities to recovery. The recent increase in interest rates caused the portfolio to swing to an unrealized loss position. Due to the potential need for liquidity in a macro stress environment, the Company does not currently have the intent to hold the underlying securities to recovery. Based on all available evidence, as of December 31, 2022, the Company concluded that a valuation allowance should be established on the deferred tax assets related to unrealized tax capital losses, net of realized capital gains, that are not more-likely-than-not to be realized. The Company has Federal net operating loss carryforwards of $810 million and $2.7 billion, for the years ending December 31, 2022 and 2021, respectively, which do not expire. The Company provides income taxes on the unremitted earnings of non-U.S. corporate subsidiaries except to the extent that such earnings are indefinitely reinvested outside the United States. As of December 31, 2022, $30 million of undistributed earnings of non-U.S. corporate subsidiaries were permanently invested outside the United States. At existing applicable income tax rates, additional taxes of approximately $8 million would need to be provided if such earnings are remitted. A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows: 2022 2021 2020 (in millions) Balance at January 1, $ 323 $ 316 $ 501 Additions for tax positions of prior years (9) 11 241 Reductions for tax positions of prior years — (4) (382) Additions for tax positions of current year — — — Settlements with tax authorities — — (44) Balance at December 31, $ 314 $ 323 $ 316 Unrecognized tax benefits that, if recognized, would impact the effective rate $ 58 $ 67 $ 77 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. Interest and penalties included in the amounts of unrecognized tax benefits as of December 31, 2022 and 2021 were $63 million and $50 million, respectively. For 2022, 2021 and 2020, respectively, there were $13 million, $14 million and ($60) million in interest expense (benefit) related to unrecognized tax benefits. It is reasonably possible that the total amount of unrecognized tax benefits will change within the next 12 months due to the conclusion of IRS proceedings and the addition of new issues for open tax years. The possible change in the amount of unrecognized tax benefits cannot be estimated at this time. As of December 31, 2022, tax years 2014 and subsequent remain subject to examination by the IRS. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Litigation and Regulatory Matters Litigation, regulatory and other loss contingencies arise in the ordinary course of the Company’s activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters arising from the conduct of its business. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek, or they may be required only to state an amount sufficient to meet a court’s jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including, among other things, insurers’ sales practices, alleged agent misconduct, alleged failure to properly supervise agents, contract administration, product design, features and accompanying disclosure, cost of insurance increases, payments of death benefits and the reporting and escheatment of unclaimed property, alleged breach of fiduciary duties, alleged mismanagement of client funds and other matters. The outcome of a litigation or regulatory matter is difficult to predict, and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period. For some matters, the Company is able to estimate a range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of December 31, 2022, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $250 million. For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company’s accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews. In February 2016, a lawsuit was filed in the Southern District of New York entitled Brach Family Foundation, Inc. v. AXA Equitable Life Insurance Company. This lawsuit is a putative class action brought on behalf of all owners of UL policies subject to Equitable Financial’s COI rate increase. In early 2016, Equitable Financial raised COI rates for certain UL policies issued between 2004 and 2008, which had both issue ages 70 and above and a current face value amount of $1 million and above. A second putative class action was filed in the District of Arizona in 2017 and consolidated with the Brach matter in federal court in New York. The consolidated amended class action complaint alleges the following claims: breach of contract; misrepresentations in violation of Section 4226 of the New York Insurance Law; violations of New York General Business Law Section 349; and violations of the California Unfair Competition Law, and the California Elder Abuse Statute. Plaintiffs seek: (a) compensatory damages, costs, and, pre- and post-judgment interest; (b) with respect to their claim concerning Section 4226, a penalty in the amount of premiums paid by the plaintiffs and the putative class; and (c) injunctive relief and attorneys’ fees in connection with their statutory claims. In August 2020, the federal district court issued a decision certifying nationwide breach of contract and Section 4226 classes, and a New York State Section 349 class. Owners of a substantial number of policies opted out of the Brach class action. Most opt-out policies are not yet the subject of litigation. Others filed suit previously including three federal actions that have been coordinated with the Brach action and contain similar allegations along with additional allegations for violations of state consumer protection statutes and common law fraud. In March 2022, the federal district court issued a summary judgment decision, denying in significant part but granting in part Equitable Financial’s motion and denying the motion filed by plaintiffs in the coordinated actions. In July 2022, the federal district court granted Equitable Financial’s motion to reconsider its summary judgment decision in part and granted summary judgment as to a portion of the Section 4226 class. The federal district court also agreed to consider whether it should decertify the Section 4226 class. In January 2023, the federal district court declined to decertify the class and instead modified it to replace certain class members. Beginning October 30, 2023, the federal district court will hold one consolidated trial for the Brach action and the three coordinated actions. Equitable Financial has commenced settlement discussions with the Brach class action plaintiffs and plaintiffs in the coordinated actions. No assurances can be given about the outcome of those settlement discussions. Equitable Financial has settled actual and threatened litigations challenging the COI increase by individual policyowners and one entity that invested in numerous policies purchased in the life settlement market. Two actions are also pending against Equitable Financial in New York state court. In July 2022, the trial court in one of the New York state court actions, Hobish v. AXA Equitable Life Insurance Company, granted in significant part Equitable Financial’s motion for summary judgment and denied plaintiff’s cross motion. That plaintiff filed a notice of appeal and Equitable filed a notice of cross-appeal. Equitable Financial is vigorously defending each of these matters. As with other financial services companies, Equitable Financial periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters. Obligations under Funding Agreements Pre-Capitalized Trust Securities (“P-Caps”) In April 2019, pursuant to separate Purchase Agreements among Holdings, Credit Suisse Securities (USA) LLC, as representative of the several initial purchasers, and the Trusts (as defined below), Pine Street Trust I, a Delaware statutory trust (the “2029 Trust”), completed the issuance and sale of 600,000 of its Pre-Capitalized Trust Securities redeemable February 15, 2029 (the “2029 P-Caps”) for an aggregate purchase price of $600 million and Pine Street Trust II, a Delaware statutory trust (the “2049 Trust” and, together with the 2029 Trust, the “Trusts”), completed the issuance and sale of 400,000 of its Pre-Capitalized Trust Securities redeemable February 15, 2049 (the “2049 P-Caps” and, together with the 2029 P-Caps, the “P-Caps”) for an aggregate purchase price of $400 million in each case to qualified institutional buyers in reliance on Rule 144A that are also “qualified purchasers” for purposes of Section 3(c)(7) of the Investment Company Act of 1940, as amended. The P-Caps are an off-balance sheet contingent funding arrangement that, upon Holdings’ election, gives Holdings the right over a ten-year period (in the case of the 2029 Trust) or over a thirty-year period (in the case of the 2049 Trust) to issue senior notes to these Trusts. The Trusts each invested the proceeds from the sale of their P-Caps in separate portfolios of principal and/or interest strips of U.S. Treasury securities. In return, Holdings will pay a semi-annual facility fee to the 2029 Trust and 2049 Trust calculated at a rate of 2.125% and 2.715% per annum, respectively, which will be applied to the unexercised portion of the contingent funding arrangement and Holdings will reimburse the Trusts for certain expenses. The facility fees are recorded in Other operating costs and expenses in the Consolidated Statements of Income (Loss). Federal Home Loan Bank (“FHLB”) As a member of the FHLB, Equitable Financial has access to collateralized borrowings. It also may issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require Equitable Financial to pledge qualified mortgage-backed assets and/or government securities as collateral. Equitable Financial issues short-term funding agreements to the FHLB and uses the funds for asset, liability, and cash management purposes. Equitable Financial issues long-term funding agreements to the FHLB and uses the funds for spread lending purposes. Entering into FHLB membership, borrowings and funding agreements requires the ownership of FHLB stock and the pledge of assets as collateral. Equitable Financial has purchased FHLB stock of $394 million and pledged collateral with a carrying value of $11.8 billion as of December 31, 2022. Funding agreements are reported in policyholders’ account balances in the consolidated balance sheets. For other instruments used for asset/liability and cash management purposes, see “Derivative and offsetting assets and liabilities” included in Note 4 of the Notes to these Consolidated Financial Statements. The table below summarizes the Company’s activity of funding agreements with the FHLB. Change in FHLB Funding Agreements during the Year Ended December 31, 2022 Outstanding Balance at December 31, 2021 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Outstanding Balance at December 31, 2022 (in millions) Short-term funding agreements: Due in one year or less $ 5,353 $ 54,316 $ (53,790) $ 251 $ — $ 6,130 Long-term funding agreements: Due in years two through five 1,290 640 — (251) — 1,679 Due in more than five years — 692 — — — 692 Total long-term funding agreements 1,290 1,332 — (251) — 2,371 Total funding agreements (1) $ 6,643 $ 55,648 $ (53,790) $ — $ — $ 8,501 _____________ (1) The $4 million and $4 million difference between the funding agreements carrying value shown in fair value table for December 31, 2022 and 2021, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. Funding Agreement-Backed Notes Program (“FABN”) Under the FABN program, Equitable Financial may issue funding agreements in U.S. dollar or other foreign currencies to a Delaware special purpose statutory trust (the “Trust”) in exchange for the proceeds from issuances of fixed and floating rate medium-term marketable notes issued by the Trust from time to time (the “Trust Notes”). The funding agreements have matching interest, maturity and currency payment terms to the applicable Trust Notes. The Company hedges the foreign currency exposure of foreign currency denominated funding agreements using cross currency swaps as discussed in Note 4 of the Notes to these Consolidated Financial Statements. As of December 31, 2022, the maximum aggregate principal amount of Trust Notes permitted to be outstanding at any one time is $10.0 billion. Funding agreements issued to the Trust, including any foreign currency transaction adjustments, are reported in policyholders’ account balances in the consolidated balance sheets. Foreign currency transaction adjustments to policyholder’s account balances are recognized in net income (loss) as an adjustment to interest credited to policyholders’ account balances and are offset in interest credited to policyholders’ account balances by a release of AOCI from deferred changes in fair value of designated and qualifying cross currency swap cash flow hedges. The table below summarizes Equitable Financial’s activity of funding agreements under the FABN program. Change in FABN Funding Agreements during the Year Ended December 31, 2022 Outstanding Balance at December 31, 2021 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Foreign Currency Transaction Adjustment Outstanding Balance at December 31, (in millions) Short-term funding agreements: Due in one year or less $ — $ — $ — $ 1,500 $ — $ — $ 1,500 Long-term funding agreements: Due in years two through five 4,600 400 — (1,500) 500 — 4,000 Due in more than five years 2,119 — — — (500) (34) 1,585 Total long-term funding agreements 6,719 400 — (1,500) — (34) 5,585 Total funding agreements (1) $ 6,719 $ 400 $ — $ — $ — $ (34) $ 7,085 _____________ (1) The $66 million and $70 million difference between the funding agreements notional value shown and carrying value table as of December 31, 2022 and 2021, respectively, reflects the remaining amortization of the issuance cost of the funding agreements and the foreign currency transaction adjustment. Credit Facilities For information regarding activity pertaining to our credit facilities arrangements, see Note 12 of the Notes to these Consolidated Financial Statements. Guarantees and Other Commitments The Company provides certain guarantees or commitments to affiliates and others. As of December 31, 2022, these arrangements include commitments by the Company to provide equity financing of $1.3 billion to certain limited partnerships and real estate joint ventures under certain conditions. Management believes the Company will not incur material losses as a result of these commitments. The Company had $17 million of undrawn letters of credit related to reinsurance as of December 31, 2022. The Company had $703 million of commitments under existing mortgage loan agreements as of December 31, 2022. The Company is the obligor under certain structured settlement agreements it had entered into with unaffiliated insurance companies and beneficiaries. To satisfy its obligations under these agreements, the Company owns single premium annuities issued by previously wholly-owned life insurance subsidiaries. The Company has directed payment under these annuities to be made directly to the beneficiaries under the structured settlement agreements. A contingent liability exists with respect to these agreements should the previously wholly-owned subsidiaries be unable to meet their obligations. Management believes the need for the Company to satisfy those obligations is remote. |
INSURANCE GROUP STATUTORY FINAN
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION | INSURANCE GROUP STATUTORY FINANCIAL INFORMATION In accordance with statutory accounting practices, the following table presents the combined statutory net income (loss), surplus, capital stock & AVR, and securities on deposits for Equitable Financial, Equitable America, USFL, Equitable L&A and CS Life. 2022 2021 2020 (in millions) Years Ended December 31, Combined statutory net income (loss) (1) (2) $ 148 $ (936) $ 396 As of December 31, Combined surplus, capital stock and AVR $ 7,125 $ 6,864 Combined securities on deposits in accordance with various government and state regulations $ 17 $ 65 _____________ (1) For 2021, excludes CS Life which was sold June 1, 2021. (2) For 2020, excludes USFL which was sold April 1, 2020. In 2022 and 2020, Equitable Financial paid to its direct parent, which subsequently distributed such amount to Holdings, an ordinary shareholder dividend of $930 million and $2.1 billion, respectively. Equitable Financial did not pay ordinary dividends during 2021 due to operating losses. Dividend Restrictions As domestic insurance subsidiaries regulated by insurance laws of their respective domiciliary states, Equitable Financial and Equitable America are subject to restrictions as to the amounts they may pay as dividends and amounts they may repay of surplus notes to Holdings. State insurance statutes also typically place restrictions and limitations on the amount of dividends or other distributions payable by insurance company subsidiaries to their parent companies, as well as on transactions between an insurer and its affiliates. Under New York’s insurance laws, which are applicable to Equitable Financial, a domestic stock life insurer may not, without prior approval of the NYDFS, pay an ordinary dividend to its stockholders exceeding an amount calculated based on a statutory formula (“Ordinary Dividend”). Dividends in excess of this amount require the insurer to file a notice of its intent to declare the dividends with the NYDFS and obtain prior approval or non-disapproval from the NYDFS with respect to such dividends (“Extraordinary Dividend”). Due to a permitted statutory accounting practice agreed to with the NYDFS, Equitable Financial will need the prior approval of the NYDFS to pay the portion, if any, of any Ordinary Dividend that exceeds the Ordinary Dividend that Equitable Financial would be permitted to pay under New York’s insurance laws absent the application of such permitted practice (such excess, the “Permitted Practice Ordinary Dividend”). Applying the formulas above, Equitable Financial could pay an Ordinary Dividend of up to approximately $1.7 billion in 2023. Intercompany Reinsurance Equitable Financial and Equitable America receive statutory reserve credits for reinsurance treaties with EQ AZ Life Re to the extent EQ AZ Life Re holds assets in an irrevocable trust (the “EQ AZ Life Re Trust”). As of December 31, 2022, EQ AZ Life Re holds $1.7 billion of assets in the EQ AZ Life Re Trust and letters of credit of $2.1 billion that are guaranteed by Holdings. Under the reinsurance transactions, EQ AZ Life Re is permitted to transfer assets from the EQ AZ Life Re Trust under certain circumstances. The level of statutory reserves held by EQ AZ Life Re fluctuate based on market movements, mortality experience and policyholder behavior. Increasing reserve requirements may necessitate that additional assets be placed in trust and/or additional letters of credit be secured, which could adversely impact EQ AZ Life Re’s liquidity. Prescribed and Permitted Accounting Practices As of December 31, 2022, the following three prescribed and permitted practices resulted in net income (loss) and capital and surplus that is different from the statutory surplus that would have been reported had NAIC statutory accounting practices been applied. Equitable Financial was granted a permitted practice by the NYDFS to apply SSAP 108, Derivatives Hedging Variable Annuity Guarantees on a retroactive basis from January 1, 2021 through June 30, 2021, after reflecting the impacts of our reinsurance transaction with Venerable. The permitted practice was amended to also permit Equitable Financial to adopt SSAP 108 prospectively as of July 1, 2021 and to consider the impact of both the interest rate derivatives and the general account assets used to fully hedge the interest rate risk inherent in its variable annuity guarantees when determining the amount of the deferred asset or liability under SSAP 108. Application of the permitted practice partially mitigates the New York Insurance Regulation 213 (“Reg 213”) impact of the Venerable Transaction on Equitable Financial’s statutory capital and surplus and enables Equitable Financial to more effectively neutralize the impact of interest rates on its statutory surplus and to better align with our economic hedging program. The impact of applying this permitted practice relative to SSAP 108 as written was an increase of approximately $86 million in statutory special surplus funds, a decrease of $1.3 billion in statutory net income for the year ended December 31, 2022 and an increase of $1.4 billion for the year ended December 31, 2021, which will be amortized over five years for each of the retrospective and prospective components. The permitted practice also reset Equitable Financial’s unassigned surplus to zero as of June 30, 2021 to reflect the transformative nature of the Venerable Transaction. The NAIC Accounting Practices and Procedures manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the State of New York. However, Reg 213 adopted in May of 2019 and as amended in February 2020 and March 2021, differs from the NAIC variable annuity reserve and capital framework. Reg 213 requires Equitable Financial to carry statutory basis reserves for its variable annuity contract obligations equal to the greater of those required under (i) the NAIC standard or (ii) a revised version of the NYDFS requirement in effect prior to the adoption of the first amendment for contracts issued prior to January 1, 2020, and for policies issued after that date a new standard that in current market conditions imposes more conservative reserving requirements for variable annuity contracts than the NAIC standard. The impact of the application of Reg 213 was a decrease of approximately $1.9 billion in statutory surplus as of December 31, 2022 compared to statutory surplus under the NAIC variable annuity framework. Our hedging program is designed to hedge the economics of our insurance liabilities and largely offsets Reg 213 and NAIC framework reserve movements due to interest rates and equities. The NYDFS allows domestic insurance companies a five year phase-in provision for Reg 213 reserves. As of September 30, 2022, Equitable Financial’s Reg 213 reserves were 100% phased-in. As of December 31, 2022, given the prevailing market conditions and business mix, there are no Reg 213 redundant reserves over the US RBC CTE 98 total asset requirement (“TAR”). Finally, the continued application of Reg 213 resulted in a corresponding decrease of $0.7 billion in statutory net income for the year ended December 31, 2022, which was largely offset by net income gains on our hedging program during the same period as noted. During the fourth quarter 2020, Equitable Financial received approval from NYDFS for its proposed amended Plan of Operation for Separate Account No. 68 (“SA 68”) for our Structured Capital Strategies product and Separate Account No. 69 (“SA 69”) for our Equi-Vest product Structured Investment Option, to change the accounting basis of these two non-insulated Separate Accounts from fair value to book value in accordance with Section 1414 of the Insurance Law to align with how we manage and measure our overall general account asset portfolio. In order to facilitate this change and comply with Section 4240(a)(10), the Company also sought approval to amend the Plans to remove the requirement to comply with Section 4240(a)(5)(iii) and substitute it with a commitment to comply with Section 4240(a)(5)(i). Similarly, the Company updated the reserves section of each Plan to reflect the fact that Regulation 128 would no longer be applicable upon the change in accounting basis. We applied this change effective January 1, 2021. The impact of the application is an increase of approximately $2.2 billion in statutory surplus and an increase in statutory net income for the year ended December 31, 2022 of $2.3 billion, respectively. Equitable Financial and Equitable America cede a portion of their statutory reserves to EQ AZ Life Re, a captive reinsurer, as part of the Company’s capital management strategy. EQ AZ Life Re prepares financial statements in a special purpose framework for statutory reporting. Differences between Statutory Accounting Principles and U.S. GAAP Accounting practices used to prepare statutory financial statements for regulatory filings of stock life insurance companies differ in certain instances from U.S. GAAP. The differences between statutory surplus and capital stock determined in accordance with SAP and total equity under U.S. GAAP are primarily: (a) the inclusion in SAP of an AVR intended to stabilize surplus from fluctuations in the value of the investment portfolio; (b) future policy benefits and policyholders’ account balances under SAP differ from U.S. GAAP due to differences between actuarial assumptions and reserving methodologies; (c) certain policy acquisition costs are expensed under SAP but deferred under U.S. GAAP and amortized over future periods to achieve a matching of revenues and expenses; (d) under SAP, |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company has four reportable segments: Individual Retirement, Group Retirement, Investment Management and Research and Protection Solutions. These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business. A brief description of these segments follows: • The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. • The Group Retirement segment offers tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities and not-for-profit entities, as well as small and medium-sized businesses. • The Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels - Institutional, Retail and Private Wealth - and distributes its institutional research products and solutions through Bernstein Research Services. • The Protection Solutions segment includes our life insurance and group employee benefits businesses. Our life insurance business offers a variety of VUL, UL and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of dental, vision, life, and short- and long-term disability and other insurance products to small and medium-size businesses across the United States. Measurement Operating earnings (loss) is the financial measure which primarily focuses on the Company’s segments’ results of operations as well as the underlying profitability of the Company’s core business. By excluding items that can be distortive and unpredictable such as investment gains (losses) and investment income (loss) from derivative instruments, the Company believes operating earnings (loss) by segment enhances the understanding of the Company’s underlying drivers of profitability and trends in the Company’s segments. Operating earnings is calculated by adjusting each segment’s net income (loss) attributable to Holdings for the following items: • Items related to variable annuity product features, which include: (i) certain changes in the fair value of the derivatives and other securities we use to hedge these features; (ii) the effect of benefit ratio unlock adjustments, including extraordinary economic conditions or events such as COVID-19; (iii) changes in the fair value of the embedded derivatives reflected within variable annuity products’ net derivative results and the impact of these items on DAC amortization on our SCS product; and (iv) DAC amortization for the SCS variable annuity product arising from near-term fluctuations in index segment returns; • Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension, other postretirement benefit obligations, and the one-time impact of the settlement of the defined benefit obligation; • Other adjustments, which primarily include restructuring costs related to severance and separation, lease write-offs related to non-recurring restructuring activities, COVID-19 related impacts, net derivative gains (losses) on certain Non-GMxB der ivatives, net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments, unrealized gain/losses and realized capital gains/losses from sales or disposals of select securities, certain legal accruals; and a bespoke deal to repurchase UL policies from one entity that had invested in numerous policies p urchased in the life settlement market, which disposed of the risk of additional COI litigation by that entity related to those UL policies; and • Income tax expense (benefit) related to the above items and non-recurring tax items, which includes the effect of uncertain tax positions for a given audit period. In the first quarter 2022, the Company updated its Operating earnings measure to exclude the DAC amortization impact of near-term fluctuations in indexed segment returns on the SCS variable annuity product to reflect the impact of market fluctuations consistently with the long term duration of the product. Operating earnings were favorably impacted by this change in the amount of $78 million for the year ended December 31, 2022. The presentation of Operating earnings in prior periods was not revised to reflect this modification, however, the Company estimated that had the treatment in the Company’s Operating earnings measure of the Amortization of DAC for SCS been modified in 2020, the pre-tax impact on Operating earnings of excluding the SCS-related DAC amortization from Operating earnings would have been a decrease of $16 million and $34 million for the years ended December 31, 2021 and 2020, respectively. The General Account investment portfolio is used to support the insurance and annuity liabilities of our Individual Retirement, Group Retirement and Protection Solutions businesses segments. In the first quarter 2022, the Company changed its methodology for allocating its General Account investment portfolio, which resulted in a change in the asset and net investment income allocation amongst the Company’s business segments. Following this change, the segmentation of the general account investments is now more closely aligned with the liability characteristics of the product groups. Management determined that the change in the allocation methodology allows for improved flexibility and infuses an active asset liability management practice into the segmentation process. Additionally, the Company also changed its basis for allocating the spread earned from our FHLB investment borrowing and FABN programs. The spread earned from our FHLB investment borrowing and FABN programs includes the investment income on the assets less interest credited on the funding agreements. The net spread as reflected in net investment income is allocated to the segments based on the percentage of the individual segment insurance liabilities over the combined segments insurance liabilities. This change in measurement only impacts our segment disclosures, and thus has no impact on our overall consolidated financial statements. Historical segment operating income (loss), revenues and assets have not been recast in the tables as the impact was immaterial. Revenues derived from any customer did not exceed 10% of revenues for the years ended December 31, 2022, 2021 and 2020. The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to net income (loss) attributable to Holdings for the years ended December 31, 2022, 2021 and 2020, respectively: Year Ended December 31, 2022 2021 2020 (in millions) Net income (loss) attributable to Holdings $ 1,785 $ (439) $ (648) Adjustments related to: Variable annuity product features (1) (1,315) 4,145 3,912 Investment (gains) losses 945 (867) (744) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 82 120 109 Other adjustments (2) (3) (4) (5) 552 717 952 Income tax expense (benefit) related to above adjustments (6) (56) (864) (888) Year Ended December 31, 2022 2021 2020 (in millions) Non-recurring tax items (7) 16 13 (391) Non-GAAP Operating Earnings $ 2,009 $ 2,825 $ 2,302 Operating earnings (loss) by segment: Individual Retirement $ 1,140 $ 1,444 $ 1,536 Group Retirement $ 525 $ 631 $ 491 Investment Management and Research $ 424 $ 564 $ 432 Protection Solutions $ 179 $ 317 $ 146 Corporate and Other (8) $ (259) $ (131) $ (303) ______________ (1) Includes COVID-19 impact on variable annuity product features due to a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the year ended December 31, 2020. (2) Includes COVID-19 impact on other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $86 million for the year ended December 31, 2020. (3) Includes separation costs of $82 million and $108 million for the for the years ended December 31, 2021 and 2020, respectively. Separation costs were completed during 2021. (4) Includes certain gross legal expenses related to the COI litigation and claims related to a commercial relationship of $218 million and $207 million for the years ended December 31, 2022 and 2021, respectively. Includes policyholder benefit costs of $75 million for the years ended December 31, 2022 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market. No adjustments were made for years ended December 31, 2020 operating earnings as the impact was immaterial. (5) Includes Non-GMxB related derivative hedge gains and losses of ($34) million, $65 million and ($404) million for the years ended December 31, 2022, 2021 and 2020, respectively. (6) Includes income taxes of $(554) million for the above COVID-19 items for the year ended December 31, 2020. (7) Prior year includes a reduction in the reserve for uncertain tax positions resulting from the completion of an IRS examination in the year ended December 31, 2020. (8) Includes interest expense and financing fees of $205 million, $241 million and $218 million for the years ended December 31, 2022, 2021 and 2020, respectively. Segment revenues is a measure of the Company’s revenue by segment as adjusted to exclude certain items. The following table reconciles segment revenues to total revenues by excluding the following items: • Items related to variable annuity product features, which include certain changes in the fair value of the derivatives and other securities we use to hedge these features and changes in the fair value of the embedded derivatives reflected within the net derivative results of variable annuity product features; • Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances; • Other adjustments, which primarily includes net derivative gains (losses) on certain Non-GMxB derivatives and net investment income from certain items including consolidated VIE investments, seed capital mark-to-market adjustments and unrealized gain/losses associated with equity securities. The table below presents segment revenues for the years ended December 31, 2022, 2021 and 2020. Year Ended December 31, 2022 2021 2020 (in millions) Segment revenues: Individual Retirement (1) $ 3,920 $ 3,785 $ 4,311 Group Retirement (1) 1,173 1,372 1,148 Investment Management and Research (2) 4,105 4,430 3,703 Protection Solutions (1) 3,302 3,358 3,144 Corporate and Other (1) 1,488 1,563 1,207 Adjustments related to: Variable annuity product features 1,123 (4,268) (2,284) Investment gains (losses), net (945) 867 744 Other adjustments to segment revenues (3) (149) (71) 442 Total revenues $ 14,017 $ 11,036 $ 12,415 ______________ (1) Includes investment expenses charged by AB of $95 million, $128 million and $71 million for the years ended December 31, 2022, 2021 and 2020, respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $134 million, $126 million and $113 million for the years ended December 31, 2022, 2021 and 2020, respectively, are included in segment revenues of the Investment Management and Research segment. (3) Includes COVID-19 impact on other adjustments due to an assumption update of $46 million and other COVID-19 related impacts of ($30) million for the year ended December 31, 2020. The table below presents total assets by segment as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 (in millions) Total assets by segment: Individual Retirement $ 125,588 $ 143,663 Group Retirement 42,656 55,368 Investment Management and Research 12,633 11,602 Protection Solutions 37,730 50,686 Corporate and Other 34,861 30,943 Total assets $ 253,468 $ 292,262 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
EQUITY | EQUITY Preferred Stock Preferred stock authorized, issued and outstanding was as follows: December 31, 2022 December 31, 2021 Series Shares Authorized Shares Shares Outstanding Shares Authorized Shares Shares Outstanding Series A 32,000 32,000 32,000 32,000 32,000 32,000 Series B 20,000 20,000 20,000 20,000 20,000 20,000 Series C 12,000 12,000 12,000 12,000 12,000 12,000 Total 64,000 64,000 64,000 64,000 64,000 64,000 Series A Fixed Rate Noncumulative Perpetual Preferred Stock In November and December 2019, Holdings’ issued a total of 32 million depositary shares, each representing a 1/1,000th interest in share of Series A Preferred Stock, $1.00 par value per share, with a liquidation preference of $25,000 per share, for aggregate net cash proceeds of $775 million ($800 million gross). The preferred stock ranks senior to Holdings’ common stock with respect to the payment of dividends and liquidation. Holdings’ will pay dividends on the Series A Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the Board) and will be payable quarterly in arrears, at an annual rate of 5.25% on the stated amount per share. In connection with the issuance of the depositary shares and the underlying Series A Preferred Stock, Holdings’ incurred $25 million of issuance costs, which has been recorded as a reduction of additional paid-in capital. The Series A Preferred Stock is redeemable at Holdings’ option in whole or in part, on or after December 15, 2024, at a redemption price of $25,000 per share of preferred stock, plus declared and unpaid dividends. Prior to December 25, 2024, the preferred stock is redeemable at Holdings’ option, in whole but not in part, within 90 days of the occurrence of certain rating agency events at a redemption price equal to $25,500 per share, plus declared and unpaid dividends or certain regulatory capital events at a redemption price equal to $25,000 per share, plus any declared and unpaid dividends. Series B Fixed Rate Reset Noncumulative Perpetual Preferred Stock On August 11, 2020, Holdings issued 500,000 depositary shares, each representing a 1/25th interest in a share of Series B Preferred Stock, $1.00 par value per share and liquidation preference of $25,000 per share, for aggregate net cash proceeds of $494 million ($500 million gross). The Series B Preferred Stock ranks senior to Holdings’ common stock and on parity with Holdings’ Series A Preferred Stock with respect to the payment of dividends and liquidation. Holdings will pay dividends on the Series B Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the Board) and will be payable semi-annually in arrears, at an annual rate equal to the fixed rate of 4.950%, which is reset every 5 years starting on December 15, 2025 (“Reset Date”), at a rate per annum equal to the five-year U.S. Treasury Rate plus 4.736%. In connection with the issuance of the depositary shares and the underlying Series B Preferred Stock, Holdings incurred $6 million of issuance costs, which have been recorded as a reduction of additional paid-in capital. The Series B Preferred Stock is redeemable at Holdings’ option in whole or in part, from time to time, during the three-month period prior to, and including, each Reset Date, at a redemption price equal to $25,000 per share of preferred stock, plus any declared and unpaid dividends. Furthermore, the preferred stock is redeemable at Holdings’ option, in whole but not in part at any time, within 90 days after the occurrence of certain rating agency events at a redemption price equal to $25,500 per share, plus any declared and unpaid dividends or after the occurrence of certain regulatory capital events at a redemption price equal to $25,000 per share, plus any declared and unpaid dividends. Series C Fixed Rate Reset Noncumulative Perpetual Preferred Stock On January 8, 2021, Holdings issued 12,000,000 depositary shares, each representing a 1/1,000th interest in a share of the Company’s Series C Fixed Rate Noncumulative Perpetual Preferred Stock (“Series C Preferred Stock”), $1.00 par value per share and liquidation preference of $25,000 per share, for aggregate net cash proceeds of $293 million ($300 million gross). The Series C Preferred Stock ranks senior to Holdings’ common stock and on parity with Holdings’ Series A Preferred Stock and Series B Preferred Stock with respect to the payment of dividends and liquidation. Holdings will pay dividends on the Series C Preferred Stock on a noncumulative basis only when, as and if declared by the Company’s Board of Directors (or a duly authorized committee of the Board) and will be payable quarterly in arrears, at an annual rate equal to the fixed rate of 4.3%. Dividends to Shareholders Dividends declared per share were as follows for the periods indicated: Year ended December 31, 2022 2021 2020 Series A dividends declared $ 1,313 $ 1,313 $ 1,378 Series B dividends declared $ 1,238 $ 1,238 $ 426 Series C dividends declared $ 1,075 $ 1,006 $ — Common Stock Dividends declared per share of common stock were as follows for the periods indicated: Year Ended December 31, 2022 2021 2020 Dividends declared $ 0.78 $ 0.71 $ 0.66 Share Repurchase On February 9, 2022, the Company’s Board of Directors authorized a new $1.2 billion share repurchase program. Under this program, the Company may, from time to time purchase shares of its common stock through various means. The Company may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate the Company to purchase any particular number of shares. As of December 31, 2022, Holdings had authorized capacity of approximately $372 million remaining in its share repurchase program. For the years ended December 31, 2022, 2021 and 2020, the Company repurchased approximately 28.2 million, 51.9 million and 23.7 million shares of its common stock at a total cost of approximately $0.8 billion, $1.6 billion and $0.4 billion, respectively through open market repurchases, ASRs and privately negotiated transactions. The repurchased common stock was recorded as treasury stock in the consolidated balance sheets. For the years ended December 31, 2022, 2021 and 2020, the Company reissued approximately 2.0 million, 2.3 million and 743 thousand shares of its treasury stock, respectively. For the year ended December 31, 2022, 2021 and 2020, the Company retired approximately 12.5 million, 32 million and 0 shares of its treasury stock, respectively. In April 2022, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $100 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $100 million and initially received 2.6 million shares. The ASR terminated during April 2022, at which time 684,700 additional shares of common stock were received. In May 2022, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $150 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $150 million and initially received 4.3 million shares. The ASR terminated during July 2022, at which time 1.2 million additional shares of common stock were received. In September 2022, Holdings entered into an ASR contract with a third-party financial institution to repurchase an aggregate of $37.5 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $37.5 million and received initial delivery of 1.1 million shares. The ASR terminated during November 2022, at which time 0.2 million additional shares of common stock were received. In December 2022, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $61 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $61 million and initially received 1.7 million shares. The ASR terminated during February 2023, at which time an additional 0.3 million shares of common stock were received. Accumulated Other Comprehensive Income (Loss) AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of December 31, 2022, and 2021 follow: December 31, 2022 2021 (in millions) Unrealized gains (losses) on investments $ (8,142) $ 2,684 Defined benefit pension plans (651) (669) Foreign currency translation adjustments (91) (45) Total accumulated other comprehensive income (loss) (8,884) 1,970 Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (50) (34) Accumulated other comprehensive income (loss) attributable to Holdings $ (8,834) $ 2,004 The components of OCI, net of taxes for the years ended December 31, 2022, 2021 and 2020 follow: Year Ended December 31, 2022 2021 2020 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period (1) $ (13,637) $ (2,467) $ 4,887 (Gains) losses reclassified into net income (loss) during the period (2) 685 (698) (653) Net unrealized gains (losses) on investments (12,952) (3,165) 4,234 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 2,126 1,052 (1,278) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of ($891), ($562), and $786) (10,826) (2,113) 2,956 Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (3) 18 266 48 Change in defined benefit plans (net of deferred income tax expense (benefit) of ($1), $68, and $14) 18 266 48 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (46) (11) 22 (Gains) losses reclassified into net income (loss) during the period — — — Foreign currency translation adjustment (46) (11) 22 Total other comprehensive income (loss), net of income taxes (10,854) (1,858) 3,026 Less: Other comprehensive income (loss) attributable to noncontrolling interest (16) 1 7 Other comprehensive income (loss) attributable to Holdings $ (10,838) $ (1,859) $ 3,019 ______________ (1) For 2022, unrealized gains (losses) arising during the period is presented net of a valuation allowance of $1.6 billion established during the fourth quarter of 2022. The Company established the valuation allowance against its deferred tax assets related to unrealized capital losses in the available for sale securities portfolio. See Note 16 of the Notes to these Consolidated Financial Statements for details on the valuation allowance. (2) See “reclassification adjustments” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of ($182) million, $186 million, and ($174) million for the years ended December 31, 2022, 2021 and 2020, respectively. (3) These AOCI components are included in the computation of net periodic costs. See Note 14 of the Notes to these Consolidated Financial Statement. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table presents a reconciliation of net income (loss) and weighted-average common shares used in calculating basic and diluted EPS for the periods indicated: Year Ended December 31, 2022 2021 2020 (in millions) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 377.6 417.4 450.4 Effect of dilutive securities: Employee share awards (1) 2.3 — — Weighted-average common shares outstanding — diluted (2) 379.9 417.4 450.4 Net income (loss): Net income (loss) $ 2,026 $ (24) $ (349) Less: Net income (loss) attributable to the noncontrolling interest 241 415 299 Net income (loss) attributable to Holdings 1,785 (439) (648) Less: Preferred stock dividends 80 79 53 Net income (loss) available to Holdings’ common shareholders $ 1,705 $ (518) $ (701) EPS: Basic $ 4.52 $ (1.24) $ (1.56) Diluted $ 4.49 $ (1.24) $ (1.56) _____________ (1) Calculated using the treasury stock method. (2) Due to net loss for the years ended December 31, 2021 and 2020, approximately 3.8 million and 1.7 million shares were excluded from the diluted EPS calculation. For the years ended December 31, 2022, 2021 and 2020, 3.9 million, 8.2 million, and 10.0 million of outstanding stock awards, respectively, were not included in the computation of diluted EPS because their effect was anti-dilutive. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST The changes in the components of redeemable noncontrolling interests are presented in the table that follows: Year Ended December 31, 2022 2021 2020 (in millions) Balance, beginning of period $ 468 $ 143 $ 365 Net earnings (loss) attributable to redeemable noncontrolling interests (59) 5 (3) Purchase/change of redeemable noncontrolling interests 46 320 (219) Balance, end of period $ 455 $ 468 $ 143 |
HELD-FOR-SALE
HELD-FOR-SALE | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
HELD-FOR-SALE | HELD-FOR-SALE: Assets and liabilities related to the business classified as HFS are separately reported in the Consolidated Balance Sheets beginning in the period in which the business is classified as HFS. AB Bernstein Research Services On November 22, 2022, AB and Société Générale, a leading European bank, announced plans to form a joint venture combining their respective cash equities and research businesses. The consummation of the joint venture is subject to customary closing conditions, including regulatory clearances. The closing is expected to occur before the end of 2023. Upon closing, AB will own a 49% interest in the joint venture and Société Générale will own a 51% interest in the joint venture, with an option to reach 100% ownership after five years. The assets and liabilities of AB's research services business recorded at fair value, less cost to sell have been classified as held-for-sale in our Consolidated Financial Statements. As a result of classifying these assets as held-for-sale, AB recognized a non-cash valuation adjustment of $7 million on the consolidated statement of income, to recognize the net carrying value at lower of cost or fair value, less estimated costs to sell. The following table summarizes the assets and liabilities classified as held-for-sale as of December 31, 2022 on the Company’s consolidated balance sheet: December 31, 2022 (1) (in millions) Cash and cash equivalents $ 159 Broker-dealer related receivables 74 Trading securities, at fair value 25 Goodwill and other intangible assets ,net 175 Other assets (2) 129 Total assets held-for-sale 562 Broker-dealer related payables 33 Customers related payables 10 Other liabilities 65 Total liabilities held-for-sale $ 108 ____________ (1) The assets and liabilities classified as held-for-sale are reported within our Investment Management & Research segment. (2) Other assets includes a valuation adjustment of ($7) million. These assets and liabilities are reported under the Investment Management & Research segment. The company has determined that AB’s exit from the research business did not represent a strategic shift that had a major effect on AB’s or the Company’s consolidated results of operations, and therefore, are not classified as discontinued operations. Corporate Solutions Life Reinsurance Company On October 27, 2020, Holdings entered into a Master Transaction Agreement with VIAC. See Note 1 of the Notes to these Consolidated Financial Statements for further information. As a resu lt of the agreement, an estimated impairment loss of $15 million, net of income tax, was recorded for the year ended December 31, 2020 and is included in investment gains (losses), net in the consolidated statements of income (los s). The transaction closed on June 1, 2021 with a gain on sale, net of income tax, of less than $1 million. Accordingly, the Company recovered the impairment previously recorded, thus reflecting a gain of $15 million for the year ended December 31, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Debt Offering On January 11, 2023, the Company issued $500 million aggregate principal amount of senior notes (the “Senior Notes”). These amounts will be recorded net of the underwriting discount and issuance costs of $5 million. The Company will pay semiannual interest on the Senior Notes on January 11 and July 11 of each year, commencing on July 11, 2023, and the Senior Notes will mature on January 11, 2033. The Senior Notes bear interest at 5.594% per annum. On any date prior to October 11, 2032, the Company may redeem some or all of the Senior Notes, subject to a make-whole provision. At any time on or after October 11, 2032, the Company may, at its option, redeem the Notes in whole or in part, at a price equal to 100% of the principal amount of the Senior Notes being redeemed plus accrued and unpaid interest thereon to the redemption date. The Senior Notes contain customary affirmative and negative covenants, including a limitation on certain liens and a limit on the Company’s ability to consolidate, merge, sell or otherwise dispose of all or substantially all of its assets. The Senior Notes also include customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding Senior Notes may be accelerated. Share Repurchase On February 9, 2023, the Company’s Board of Directors authorized a new $700 million share repurchase program. Under this program, the Company may, from time to time, purchase shares of its common stock through various means. The Company may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate the Company to purchase any particular number of shares. As of February 9, 2023, Holdings had authorized capacity of approximately $1.1 billion remaining in its share repurchase program. Accelerated Share Repurchase Agreement In January 2023, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $75 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a prepayment of $75 million and received initial delivery of 2.0 million Holdings’ shares. The ASR is scheduled to terminate during the first quarter of 2023, at which time additional shares may be delivered or returned depending on the daily volume-weighted average price of Holdings’ common stock. |
SCHEDULE I - SUMMARY OF INVESTM
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | SCHEDULE I SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES AS OF DECEMBER 31, 2022 Cost (1) Fair Value Carrying Value (in millions) Fixed maturities, AFS: U.S. government, agencies and authorities $ 7,054 $ 5,837 $ 5,837 State, municipalities and political subdivisions 609 527 527 Foreign governments 985 836 836 Public utilities 6,829 5,778 5,778 All other corporate bonds 43,883 37,793 37,793 Residential mortgage-backed 908 822 822 Asset-backed 8,859 8,490 8,490 Commercial mortgage-backed 3,823 3,235 3,235 Redeemable preferred stocks 41 43 43 Total fixed maturities, AFS 72,991 63,361 63,361 Fixed maturities, at fair value using the fair value option 1,599 1,508 1,508 Mortgage loans on real estate (2) 16,610 14,690 16,481 Policy loans 4,033 4,349 4,033 Other equity investments 2,938 3,152 3,152 Trading securities 639 677 677 Other invested assets 3,885 3,885 3,885 Total Investments $ 102,695 $ 91,622 $ 93,097 ______________ (1) Cost for fixed maturities represents original cost, reduced by repayments and write-downs and adjusted for amortization of premiums or accretion of discount; cost for equity securities represents original cost reduced by write-downs; cost for other limited partnership interests represents original cost adjusted for equity in earnings and reduced by distributions. (2) Carrying value for mortgage loans on real estate represents original cost adjusted for amortization of premiums or accretion of discount and reduced by credit loss allowance. |
SCHEDULE II - PARENT COMPANY
SCHEDULE II - PARENT COMPANY | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE II - PARENT COMPANY | Balance Sheets (Parent Company) December 31, 2022 and 2021 December 31, 2022 2021 (in millions, except share amounts) ASSETS Investment in consolidated subsidiaries $ 2,929 $ 13,128 Fixed maturities available-for-sale, at fair value (amortized cost of $737 and $884) 693 874 Other equity investments 139 92 Other invested assets 448 — Total investments 4,209 14,094 Cash and cash equivalents 711 867 Goodwill and other intangible assets, net 1,242 1,255 Loans to affiliates 990 755 Receivable from affiliates 714 585 Current and deferred income taxes assets 521 600 Other assets 265 44 Total Assets $ 8,652 $ 18,200 LIABILITIES Short-term debt $ 520 $ — Long-term debt 3,322 3,839 Employee benefits liabilities 777 853 Loans from affiliates 1,900 1,900 Payable to affiliates 394 48 Other liabilities 81 41 Total Liabilities $ 6,994 $ 6,681 EQUITY ATTRIBUTABLE TO HOLDINGS Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference $ 1,562 $ 1,562 Common stock, $0.01 par value, 2,000,000,000 shares authorized; 508,418,442 and 520,918,331 shares issued, respectively; 365,081,940 and 391,290,224 shares outstanding, respectively 4 4 Additional paid-in capital 2,299 1,919 Treasury stock, at cost, 143,336,502 and 129,628,107 shares, respectively (3,297) (2,850) Retained earnings 9,924 8,880 Accumulated other comprehensive income (loss) (8,834) 2,004 Total equity attributable to Holdings 1,658 11,519 Total Liabilities and Equity Attributable to Holdings $ 8,652 $ 18,200 The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto. STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (PARENT COMPANY) YEARS ENDED DECEMBER 31, 2022, 2021, AND 2020 2022 2021 2020 (in millions) REVENUES Equity in income (losses) from continuing operations of consolidated subsidiaries $ 1,935 $ (152) $ (668) Net investment income (loss) 66 26 26 Investment gains (losses), net — (12) — Total revenues 2,001 (138) (642) EXPENSES Interest expense 248 241 229 Other operating costs and expenses 33 58 40 Total expenses 281 299 269 Income (loss) from continuing operations, before income taxes 1,720 (437) (911) Income tax (expense) benefit 65 (2) 263 Net income (loss) attributable to Holdings 1,785 (439) (648) Less: Preferred stock dividends 80 79 53 Net income (loss) available to Holdings' common shareholders $ 1,705 $ (518) $ (701) COMPREHENSIVE INCOME (LOSS) Net income (loss) $ 1,785 $ (439) $ (648) Other comprehensive income (loss) net of income taxes: Change in net unrealized gains (losses) on investments (6) (85) 47 Change in defined benefit plans 10 251 53 Equity in net other comprehensive income (loss) from continuing operations of consolidated subsidiaries (10,842) (2,025) 2,919 Total other comprehensive income (loss), net of income taxes (10,838) (1,859) 3,019 Comprehensive income (loss) $ (9,053) $ (2,298) $ 2,371 The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto. STATEMENTS OF CASH FLOWS (PARENT COMPANY) YEARS ENDED DECEMBER 31, 2022, 2021, AND 2020 2022 2021 2020 (in millions) Net income (loss) attributable to Holdings $ 1,785 $ (439) $ (648) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in net (earnings) loss of subsidiaries (1,935) 152 668 Non-cash long term incentive compensation expense 64 15 27 Amortization and depreciation 57 60 40 Equity (income) loss limited partnerships (29) (19) (8) Dividends from subsidiaries 1,801 792 2,877 Changes in: Current and deferred taxes 104 (151) (250) Other, net (23) 14 (135) Net cash provided by (used in) operating activities $ 1,824 $ 424 $ 2,571 Cash flows from investing activities: Proceeds from the sale/maturity/prepayment of: Fixed maturities, available-for-sale $ 131 $ 210 $ 131 Short-term investments 550 — — Other 5 — — Payment for the purchase/origination of: Fixed maturities, available-for-sale — — (1,011) Short-term investments (1,000) — — Other (16) (7) (21) Net issuance on credit facilities to affiliates (235) (80) (115) Proceeds from the sale of subsidiary — 215 — Net cash provided by (used in) investing activities $ (565) $ 338 $ (1,016) Cash flows from financing activities: Issuance of preferred stock $ — $ 293 $ 494 Repayment of long-term debt — (280) — Proceeds from loans from affiliates — 1,000 — Repayments of loans from affiliates — — (300) Shareholder dividends paid (294) (296) (297) Preferred dividends paid (80) (79) (53) Purchase of treasury shares (849) (1,637) (430) Capital contribution to subsidiaries (225) (815) (350) Other, net 33 (53) — Net cash provided by (used in) financing activities $ (1,415) $ (1,867) $ (936) Change in cash and cash equivalents (156) (1,105) 619 Cash and cash equivalents, beginning of year 867 1,972 1,353 Cash and cash equivalents, end of year $ 711 $ 867 $ 1,972 Supplemental cash flow information: Interest paid $ 185 $ 209 $ 196 Income taxes (refunded) paid $ 153 $ 153 $ (265) Non-cash transactions from investing and financing activities: Change in investment in subsidiary from issuance of AB Units for CarVal acquisition $ 314 $ — $ — Non-cash dividends from subsidiaries $ 22 $ — $ — Dividend of AB Units from subsidiary $ — $ 23 $ — The financial information of Equitable Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements and Notes thereto. NOTES TO PARENT COMPANY FINANCIAL STATEMENTS 1) BASIS OF PRESENTATION The financial information of Holdings should be read in conjunction with the Consolidated Financial Statements and Notes thereto. The Company is the holding company for a diversified financial services organization. 2) LOANS TO AFFILIATES On November 4, 2019, Holdings made available to AB a $900 million committed, unsecured senior credit facility (the “EQH Facility”). The EQH Facility matures on November 4, 2024 and is available for AB's general business purposes. Borrowings by AB under the EQH Facility generally bear interest at a rate per annum based on prevailing overnight commercial paper rates. The EQH Facility contains affirmative, negative and financial covenants which are substantially similar to those in AB’s committed bank facilities. The EQH Facility also includes customary events of default substantially similar to those in AB’s committed bank facilities, including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or the lender’s commitment may be terminated. Amounts under the EQH Facility may be borrowed, repaid and re-borrowed by AB from time to time until the maturity of the facility. AB or Holdings may reduce or terminate the commitment at any time without penalty upon proper notice. Holdings also may terminate the facility immediately upon a change of control of the general partner. In As of December 31, 2022 and 2021, $900 million and $755 million were outstanding under the EQH Facility with interest rates of approximately 4.3% and 0.2%, respectively, respectively. 3) LOANS FROM AFFILIATES In June 2021, Holdings received a $1.0 billion 10-year term loan from Equitable Financial. The loan has an interest rate of 3.23% and matures in June 2031. As of December 31, 2022 and 2021, $1.0 billion was outstanding on the loan. In November 2019, Holdings received a $900 million loan from Equitable Financial. The loan has an interest rate of one- month LIBOR plus 1.33%. The loan matures on November 4, 2024. As of December 31, 2022 and 2021, $900 million was outstanding on the loan. Interest cost related to loans from affiliates totaled $60 million, $30 million and $32 million for the years ended December 31, 2022, 2021 and 2020, respectively. 4) INCOME TAXES Holdings and certain of its consolidated subsidiaries and affiliates file a consolidated federal income tax return. Holdings has tax sharing agreements with certain of its subsidiaries and generally will either receive or pay these subsidiaries for utilization of the subsidiaries’ tax benefits or expense. Holdings settles these amounts annually. 5) ISSUANCE OF SERIES A, SERIES B AND SERIES C FIXED RATE NONCUMULATIVE PERPETUAL PREFERRED STOCK See Note 20 of the Notes to the Consolidated Financial Statements. 6) SHARE REPURCHASE See Note 20 of the Notes to the Consolidated Financial Statements. |
SCHEDULE III - SUPPLEMENTARY IN
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | SUPPLEMENTARY INSURANCE INFORMATION AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2022 Individual Retirement Group Retirement Investment Management and Research Protection Solutions Corporate and Other Total (in millions) Deferred policy acquisition costs $ 4,661 $ 1,075 $ — $ 2,124 $ 298 $ 8,158 Policyholders’ account balances 40,790 13,141 — 14,939 14,985 83,855 Future policy benefits and other policyholders' liabilities 20,578 (16) — 5,129 8,433 34,124 Policy charges and premium revenue 1,513 318 — 2,087 317 4,235 Net derivative gains (losses) 1,626 (7) 41 (16) 52 1,696 Net investment income (loss) 1,239 605 (108) 961 618 3,315 Policyholders’ benefits and interest credited 1,237 281 — 2,477 799 4,794 Amortization of deferred policy acquisition costs 419 8 — 112 3 542 All other operating expenses (1) 726 249 3,255 753 1,173 6,156 AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2021 Individual Retirement Group Retirement Investment Management and Research Protection Solutions Corporate and Other Total (in millions) Deferred policy acquisition costs (2) $ 3,639 $ 776 $ — $ 1,066 $ 10 $ 5,491 Policyholders’ account balances (2) 38,456 13,049 — 15,027 12,825 79,357 Future policy benefits and other policyholders' liabilities (2) 22,904 3 — 4,843 8,967 36,717 Policy charges and premium revenue 1,867 371 — 2,016 343 4,597 Net derivative gains (losses) (4,386) (29) (13) (83) 46 (4,465) Net investment income (loss) 1,221 751 25 1,102 747 3,846 Policyholders’ benefits and interest credited 912 303 — 2,478 744 4,437 Amortization of deferred policy acquisition costs 294 2 — 95 2 393 All other operating expenses (1) 814 362 3,241 780 1,178 6,375 AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2020 Individual Retirement Group Retirement Investment Management and Research Protection Solutions Corporate and Other Total (in millions) Deferred policy acquisition costs (2) $ 3,178 $ 632 $ — $ 418 $ 15 $ 4,243 Policyholders’ account balances (2) 30,736 12,828 — 14,875 8,381 66,820 Future policy benefits and other policyholders' liabilities (2) 25,212 9 — 5,031 9,629 39,881 Policy charges and premium revenue 2,034 295 — 2,013 390 4,732 Net derivative gains (losses) (1,999) (2) (36) 413 (98) (1,722) Net investment income (loss) 1,337 644 36 941 519 3,477 Policyholders’ benefits and interest credited 3,086 305 — 2,372 785 6,548 Amortization of deferred policy acquisition costs 321 73 — 1,220 (1) 1,613 All other operating expenses (1) 724 284 2,815 546 978 5,347 _____________ (1) Operating expenses are allocated to segments. (2) Excludes amounts reclassified as HFS. |
SCHEDULE IV - REINSURANCE
SCHEDULE IV - REINSURANCE | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SCHEDULE IV - REINSURANCE | REINSURANCE (1) AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020 Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net (in millions) 2022 Life insurance in-force $ 483,069 $ 174,819 $ 31,337 $ 339,587 9.2 % Premiums: Life insurance and annuities $ 822 $ 182 $ 172 $ 812 21.2 % Accident and health 220 46 8 182 4.4 % Total premiums $ 1,042 $ 228 $ 180 $ 994 18.1 % 2021 Life insurance in-force $ 484,082 $ 185,203 $ 31,971 $ 330,850 9.7 % Premiums: Life insurance and annuities $ 802 $ 155 $ 181 $ 828 21.9 % Accident and health 168 44 8 132 6.1 % Total premiums $ 970 $ 199 $ 189 $ 960 19.7 % 2020 Life insurance in-force $ 473,514 $ 94,231 $ 33,098 $ 412,381 8.0 % Premiums: Life insurance and annuities $ 805 $ 113 $ 213 $ 905 23.5 % Accident and health 124 41 9 92 9.8 % Total premiums $ 929 $ 154 $ 222 $ 997 22.3 % ______________ (1) Includes amounts related to the discontinued group life and health business. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those VIEs that meet the requirements for consolidation. Financial results in the historical consolidated financial statements may not be indicative of the results of operations, comprehensive income (loss), financial position, equity or cash flows that would have been achieved had we operated as a separate, standalone entity during the reporting periods presented. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. The years “2022”, “2021” and “2020” refer to the years ended December 31, 2022, 2021 and 2020, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of December 31, 2022, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company has finalized key accounting policy decisions and executed the intended implementation plan including modifying actuarial valuation systems, modernizing key finance processes including data sourcing, analytical procedures and reporting, and updating internal controls. The Company is ready for adoption of the guidance as of January 1, 2023 using the modified retrospective approach, except for Market Risk Benefits (MRBs) which will use the full retrospective approach. Based upon the modified retrospective transition method, the Company estimates that the January 1, 2021 transition date impact from LDTI adoption is a decrease in total U.S. GAAP equity of $3.3 billion. This is primarily due to accounting for our variable annuity guarantees that are not currently measured at fair value as MRBs in the extremely low interest rate environment as of January 1, 2021. For full year 2021, U.S. GAAP net income under LDTI basis is estimated to be $2.2 billion higher than the previously reported 2021 net income of ($440) million due to better alignment between MRB liabilities and our economic hedging program. As of December 31, 2021, the impact on total equity is a decrease of approximately $1.1 billion and in line with our prior estimates. The U.S. GAAP net income for full year 2022 is estimated to be positive and less volatile under LDTI. The estimated impact to total U.S. GAAP equity as of December 31, 2022 is expected to be significantly mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business that results in a positive impact from accounting for its variable annuity guarantees as MRBs under the guidance at December 31, 2022. |
Investments | Investments The carrying values of fixed maturities classified as AFS are reported at fair value. Changes in fair value are reported in OCI, net of allowance for credit losses, policy related amounts and deferred income taxes. Changes in credit losses are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include REIT, perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. Effective January 1, 2021, the Company began classifying certain preferred stock as equity securities to better reflect the economics and nature of these securities. These preferred stock securities are reported in other equity investments. The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, evaluates AFS debt securities that experienced a decline in fair value below amortized cost for credit losses which are evaluated in accordance with the new financial instruments credit losses guidance. Integral to this review is an assessment made each quarter, on a security-by-security basis, by the IUS Committee, of various indicators of credit deterioration to determine whether the investment security has experienced a credit loss. This assessment includes, but is not limited to, consideration of the severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, and the financial strength, liquidity and continued viability of the issuer. The Company recognizes an allowance for credit losses on AFS debt securities with a corresponding adjustment to earnings rather than a direct write down that reduces the cost basis of the investment, and credit losses are limited to the amount by which the security’s amortized cost basis exceeds its fair value. Any improvements in estimated credit losses on AFS debt securities are recognized immediately in earnings. Management does not use the length of time a security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist. When the Company determines that there is more than 50% likelihood that it is not going to recover the principal and interest cash flows related to an AFS debt security, the security is placed on nonaccrual status and the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in a timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable. If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting allowance is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value. Write-offs of AFS debt securities are recorded when all or a portion of a financial asset is deemed uncollectible. Full or partial write-offs are recorded as reductions to the amortized cost basis of the AFS debt security and deducted from the allowance in the period in which the financial assets are deemed uncollectible. The Company elected to reverse accrued interest deemed uncollectible as a reversal of interest income. In instances where the Company collects cash that it has previously written off, the recovery will be recognized through earnings or as a reduction of the amortized cost basis for interest and principal, respectively. Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag. Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss). The carrying values of certain fixed maturities are reported at fair value where the fair value option has been elected. The fair value option allows the Company to elect fair value as an alternative measurement for selected financial assets and financial liabilities not otherwise reported at fair value. Such elections have been made to help mitigate volatility in earnings that result from different measurement attributes. Electing the fair value option also allows the consistent accounting in net investment income (loss) for certain assets and liabilities. Changes in fair value of fixed maturities that have elected the fair value option are reflected in realized and unrealized gains (losses) reported in net investment income (loss) in the consolidated statements of income (loss). Notes issued by consolidated variable interest entities represent notes issued by certain asset-backed investment vehicles, primarily CLOs, which we are required to consolidate. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs. The Company has elected the fair value option for the majority of these notes and has based the fair value on the corresponding debt security collateral. Changes in fair value are reported in net investment income (loss). COLI has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. As of December 31, 2022 and 2021, the carrying value of COLI was $886 million and $1.0 billion, respectively, and is reported in other invested assets in the consolidated balance sheets. Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. Cash and securities segregated primarily includes U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of its brokerage customers under Rule 15c3-3 of the Exchange Act. |
Securities Sold under Agreements to Repurchase | Securities Sold under Agreements to Repurchase Securities sold under agreements to repurchase involve the temporary exchange of securities for cash or other collateral of equivalent value, with agreement to redeliver a like quantity of the same or similar securities at a future date prior to maturity at a fixed and determinable price. Securities sold under agreements to repurchase transactions are conducted by the Company under a standardized securities industry master agreement, amended to suit the requirements of each respective counterparty. Transfers of securities under these agreements to repurchase are evaluated by the Company to determine whether they satisfy the criteria for accounting treatment as secured borrowing arrangements. Agreements not meeting the criteria would require recognition of the transferred securities as sales with related forward repurchase commitments. All of the Company’s securities repurchase transactions are accounted for as secured borrowings with the related obligations distinctly captioned in the consolidated balance sheets on a gross basis. As of December 31, 2022 and 2021 the Company had no Securities sold under agreements to repurchase outstanding. During the year ended December 31, 2021 there was no activity on Securities sold under agreements to repurchase. |
Derivatives | Derivatives Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include equity, currency, and interest rate futures, total return and/or other equity swaps, interest rate swaps and floors, swaptions, variance swaps and equity options, all of which may be exchange-traded or contracted in the OTC market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “other invested assets” or as liabilities within “other liabilities.” The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities. The Company has designated certain derivatives it uses to economically manage asset/liability risk in relationships which qualify for hedge accounting. To qualify for hedge accounting, we formally document our designation at inception of the hedge relationship as a cash flow, fair value or net investment hedge. This documentation includes our risk management objective and strategy for undertaking the hedging transaction. The Company identifies how the hedging instrument is expected to offset the designated risks related to the hedged item and the method that will be used to retrospectively and prospectively assess the hedge effectiveness. To qualify for hedge accounting, a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed and documented at inception and periodically throughout the life of the hedge accounting relationship. The Company does not exclude any components of the hedging instrument from the effectiveness assessments and therefore does not separately measure or account for any excluded components of the hedging instrument. While in cash flow hedge relationships, any periodic net receipts and payments from the hedging instrument are included in the income or expense line that the hedged item’s periodic income or expense is recognized. Other changes in the fair value of the hedging instrument while in a cash flow hedging relationship are reported within OCI. These amounts are deferred in AOCI until they are reclassified to Net income (loss). The reclassified amount offsets the effect of the cash flows on Net income (loss) in the same period when the hedged item affects earnings and on the same line as the hedged item. We discontinue cash flow hedge accounting prospectively when the Company determines: (1) the hedging instrument is no longer highly effective in offsetting changes in the cash flow from the hedged risk, (2) the hedged item is no longer probable of occurring within two months of their forecast, or (3) the hedging instrument is otherwise redesignated from the hedging relationship. Changes in the fair value of the derivative after discontinuation of cash flow hedge accounting are accounted for as freestanding derivative positions not designated to hedge accounting relationships unless and until the derivative is redesignated to a hedge accounting relationship. When cash flow hedge accounting is discontinued the amounts deferred in AOCI during the hedge relationship continue to be deferred in AOCI, as long as the hedged items continue to be probable of occurring within two months of their forecast, until the hedged item affects Net income (loss). Any amount deferred in AOCI for hedged items which are no longer probable of occurring within two months of their forecast will be reclassified to “net derivative gains (losses)” at that time. The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. Once those criteria are met the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate Mortgage loans are stated at unpaid principal balances, net of unamortized discounts and the allowance for credit losses. The Company calculates the allowance for credit losses in accordance with the CECL model in order to provide for the risk of credit losses in the lending process. Expected credit losses for loans with similar risk characteristics are estimated on a collective (i.e., pool) basis in order to meet CECL’s risk of loss concept which requires the Company to consider possibilities of loss, even if remote. For collectively evaluated mortgages, the Company estimates the allowance for credit losses based on the amortized cost basis of its mortgages over their expected life using a PD / LGD model. The PD / LGD model incorporates the Company’s reasonable and supportable forecast of macroeconomic information over a specified period. The length of the reasonable and supportable forecast period is reassessed on a quarterly basis and may be adjusted as appropriate over time to be consistent with macroeconomic conditions and the environment as of the reporting date. For periods beyond the reasonable and supportable forecast period, the model reverts to historical loss information. The PD and LGD are estimated at the loan-level based on loans’ current and forecasted risk characteristics as well as macroeconomic forecasts. The PD is estimated using both macroeconomic conditions as well as individual loan risk characteristics including LTV ratios, DSC ratios, seasoning, collateral type, geography, and underlying credit. The LGD is driven primarily by the type and value of collateral, and secondarily by expected liquidation costs and time to recovery. For individually evaluated mortgages, the Company continues to recognize a valuation allowance on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value. The CECL model is configured to the Company’s specifications and takes into consideration the detailed risk attributes of each discrete loan in the mortgage portfolio which include, but are not limited to the following: • LTV ratio – Derived from current loan balance divided by the fair market value of the property. An LTV ratio in excess of 100% indicates an underwater mortgage. • DSC ratio – Derived from actual operating earnings divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt. • Occupancy – Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. • Lease expirations – The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor. • Other – Any other factors such as maturity, borrower/tenant related issues, payment status, property condition, or current economic conditions may call into question the performance of the loan. Mortgage loans that do not share similar risk characteristics with other loans in the portfolio are individually evaluated quarterly by the Company’s IUS Committee. The allowance for credit losses on these individually evaluated mortgages is a loan-specific reserve as a result of the loan review process that is recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral. The individually assessed allowance for mortgage loans can increase or decrease from period to period based on such factors. Individually assessed loans may include, but are not limited to, mortgages that have deteriorated in credit quality such as a TDR and reasonably expected TDRs, mortgages for which foreclosure is probable, and mortgages which have been classified as “potential problem” or “problem” loans within the Company’s IUS Committee processes as described below. Within the IUS process, commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgage loans. Based on its monthly monitoring of mortgages, a class of potential problem mortgage loans are also identified, consisting of mortgage loans not currently classified as problem mortgage loans but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being modified. The decision whether to classify a performing mortgage loan as a potential problem involves judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property. Individually assessed mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is not probable. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured to where the collection of interest is considered likely. The Company charges off loan balances and accrued interest that are deemed uncollectible. The components of amortized cost for mortgage loans on the consolidated balance sheets excludes accrued interest amounts because the Company presents accrued interest receivables within other assets. Once mortgage loans are placed on nonaccrual status, the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in the timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable. |
Held-for-Sale | Held-for-Sale The Company classifies assets and liabilities (“disposal group”) as held-for-sale when the specified criteria in Accounting Standards Codification 360, Property, Plant and Equipment , are met. Assets and liabilities held-for-sale are presented separately within the Consolidated Balance Sheets. Depreciation of property, plant and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held-for-sale. If, in any period, the carrying value of the disposal group exceeds the estimated fair value, less costs to sell, an impairment loss will be recognized. See Note 23 of the Notes to these Consolidated Financial Statements for additional information regarding the disposal group. |
Troubled Debt Restructuring | Troubled Debt RestructuringThe Company invests in commercial and agricultural mortgage loans included in the balance sheet as mortgage loans on real estate and privately negotiated fixed maturities included in the balance sheet as fixed maturities AFS. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific credit allowance recorded in connection with the TDR. A credit allowance may have been recorded prior to the period when the loan is modified in a TDR. Accordingly, the carrying value (net of the allowance) before and after modification through a TDR may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. |
Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized Investment Gains (Losses) | Net Investment Income (Loss), Investment Gains (Losses) Net and Unrealized Investment Gains (Losses) Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the allowance for credit losses are included in investment gains (losses), net. Realized and unrealized holding gains (losses) on trading and equity securities are reflected in net investment income (loss). Unrealized investment gains (losses) on fixed maturities designated as AFS held by the Company are accounted for as a separate component of AOCI, net of related deferred income taxes, as are amounts attributable to certain pension operations, Closed Block’s policyholders’ dividend obligation, insurance liability loss recognition, DAC related to UL policies, investment-type products and participating traditional life policies. Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any change in fair value of policyholders’ account balances and future policy benefits. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments See Note 8 of the Notes to these Consolidated Financial Statements for additional information regarding determining the fair value of financial instruments. |
Recognition of Insurance Income and Related Expenses | Recognition of Insurance Income and Related Expenses Deposits related to UL and investment-type contracts are reported as deposits to policyholders’ account balances. Revenues from these contracts consist of fees assessed during the period against policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders’ account balances. Premiums from participating and non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of DAC. For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments. Premiums from individual health contracts are recognized as income over the period to which the premiums relate in proportion to the amount of insurance protection provided. |
DAC | DAC Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred. In each reporting period, DAC amortization, net of the accrual of imputed interest on DAC balances, is recorded to amortization of deferred policy acquisition costs. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. The determination of DAC, including amortization and recoverability estimates, is based on models that involve numerous assumptions and subjective judgments, including those regarding policyholder behavior, surrender and withdrawal rates, mortality experience, and other inputs including financial market volatility and market rates of return. After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings. Amortization Policy In accordance with the guidance for the accounting and reporting by insurance enterprises for certain long-duration contracts and participating contracts and for realized gains and losses from the sale of investments, current and expected future profit margins for products covered by this guidance are examined regularly in determining the amortization of DAC. DAC associated with certain variable annuity products is amortized based on estimated assessments, with DAC on the remainder of variable annuities, UL and investment-type products amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Accounts fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, embedded derivatives and changes in the reserve of products that have indexed features such as SCS IUL and MSO, updated at the end of each accounting period. When estimated gross profits are expected to be negative for multiple years of a contract life, DAC is amortized using the present value of estimated assessments. The effect on the amortization of DAC of revisions to estimated gross profits or assessments is reflected in earnings (loss) in the period such estimated gross profits or assessments are revised. A decrease in expected gross profits or assessments would accelerate DAC amortization. Conversely, an increase in expected gross profits or assessments would slow DAC amortization. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. A significant assumption in the amortization of DAC on variable annuities and, to a lesser extent, on variable and interest-sensitive life insurance relates to projected future separate account performance. Management sets estimated future gross profit or assessment assumptions related to separate account performance using a long-term view of expected average market returns by applying a RTM approach, a commonly used industry practice. This future return approach influences the projection of fees earned, as well as other sources of estimated gross profits. Returns that are higher than expectations for a given period produce higher than expected account balances, increase the fees earned resulting in higher expected future gross profits and lower DAC amortization for the period. The opposite occurs when returns are lower than expected. In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance. Management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. As of December 31, 2022, the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance and variable annuities was 7.0% (4.9% net of product weighted average Separate Accounts fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% (12.9% net of product weighted average Separate Accounts fees and Investment Advisory fees) and 0.0% ((2.1)% net of product weighted average Separate Accounts fees and Investment Advisory fees), respectively. The maximum duration over which these rate limitations may be applied is five years. These assumptions of long-term growth are subject to assessment of the reasonableness of resulting estimates of future return assumptions. In addition, projections of future mortality assumptions related to variable and interest-sensitive life products are based on a long-term average of actual experience. This assumption is updated periodically to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC amortization. Other significant assumptions underlying gross profit estimates for UL and investment type products relate to contract persistency and General Account investment spread. For participating traditional life policies (substantially all of which are in the Closed Block), DAC is amortized over the expected total life of the contract group as a constant percentage based on the present value of the estimated gross margin amounts expected to be realized over the life of the contracts using the expected investment yield. As of December 31, 2022, the average rate of assumed investment yields, excluding policy loans, for the Company was 4.4% grading to 4.3% in 2026. Estimated gross margins include anticipated premiums and investment results less claims and administrative expenses, changes in the net level premium reserve and expected annual policyholder dividends. The effect on the accumulated amortization of DAC of revisions to estimated gross margins is reflected in earnings in the period such estimated gross margins are revised. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. Many of the factors that affect gross margins are included in the determination of the Company’s dividends to these policyholders. DAC adjustments related to participating traditional life policies do not create significant volatility in results of operations as the Closed Block recognizes a cumulative policyholder dividend obligation expense in policyholders’ benefits for the excess of actual cumulative earnings over expected cumulative earnings as determined at the time of demutualization. DAC associated with non-participating traditional life policies are amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums are estimated at the date of policy issue and are consistently applied during the life of the contracts. Deviations from estimated experience are reflected in income (loss) in the period such deviations occur. For these contracts, the amortization periods generally are for the total life of the policy. DAC related to these policies are subject to recoverability testing as part of the Company’s premium deficiency testing. If a premium deficiency exists, DAC are reduced by the amount of the deficiency or to zero through a charge to current period earnings (loss). If the deficiency exceeds the DAC balance, the reserve for future policy benefits is increased by the excess, reflected in earnings (loss) in the period such deficiency occurs. |
Reinsurance | Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC and recognized as a component of other expenses on a basis consistent with the way the acquisition costs on the underlying reinsured contracts would be recognized. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as premiums ceded (assumed); and amounts due from reinsurers (amounts due to reinsurers) are established. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. Premiums, policy charges and fee income, and policyholders’ benefits include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives as they are net settled. These embedded derivatives are included in GMIB reinsurance contract asset, at fair value with changes in estimated fair value reported in net derivative gains (losses). Separate Account liabilities that have been ceded on a Modified coinsurance (Modco) basis, receivable and payable have been recognized on a net basis as right of offset exists. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within other assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other income or other operating costs and expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. For reinsurance contracts other than those accounted for as derivatives, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. |
Policyholder Bonus Interest Credits | Policyholder Bonus Interest Credits Policyholder bonus interest credits are offered on certain deferred annuity products in the form of either immediate bonus interest credited or enhanced interest crediting rates for a period of time. The interest crediting expense associated with these policyholder bonus interest credits is deferred and amortized over the lives of the underlying contracts in a manner consistent with the amortization of DAC. Unamortized balances are included in other assets in the consolidated balance sheets and amortization is included in interest credited to policyholders’ account balances in the consolidated statements of income (loss). |
Policyholders’ Account Balances and Future Policy Benefits and Other Policyholders’ Liabilities | Policyholders’ Account Balances and Future Policy Benefits and Other Policyholders’ Liabilities Policyholders’ account balances relate to contracts or contract features where the Company has no significant insurance risk. This liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. For participating traditional life insurance policies, future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial insurance assumptions equal to guaranteed mortality and dividend fund interest rates. The liability for annual dividends represents the accrual of annual dividends earned. Terminal dividends are accrued in proportion to gross margins over the life of the contract. For non-participating traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 3.5% to 7.3% (weighted average of 5.0%) for approximately 99.5% of life insurance liabilities and from 1.5% to 5.4% (weighted average of 3.6%) for annuity liabilities. Individual health benefit liabilities for active lives are estimated using the net level premium method and assumptions as to future morbidity, withdrawals and interest. Benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest. While management believes its DI reserves have been calculated on a reasonable basis and are adequate, there can be no assurance reserves will be sufficient to provide for future liabilities. Obligations arising from funding agreements are also reported in policyholders’ account balances in the consolidated balance sheets. As a member of the FHLB, the Company has access to collateralized borrowings. The Company may also issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements would require the Company to pledge qualified mortgage-backed assets and/or government securities as collateral. The Company has issued and continues to offer certain variable annuity products with GMDB and/or contain a GMLB (collectively, the “GMxB features”) which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a GMIB base. The Company previously issued certain variable annuity products with GIB, GWBL, GMWB, and GMAB features. The Company has also assumed reinsurance for products with GMxB features. Reserves for products that have GMIB features, but do not have no-lapse guarantee features, and products with GMDB features are determined by estimating the expected value of death or income benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. These reserves are recorded within future policy benefits and other policyholders’ liabilities. The determination of this estimated future policy benefits liability is based on models that involve numerous assumptions and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates. Assumptions regarding separate account performance used for purposes of this calculation are set using a long-term view of expected average market returns by applying a RTM approach, consistent with that used for DAC amortization. There can be no assurance that actual experience will be consistent with management’s estimates. Products that have a GMIB feature with a no-lapse guarantee rider (“GMIBNLG”), GIB, GWBL, GMWB and GMAB features and the assumed products with GMIB features (collectively “GMxB derivative features”) are considered either freestanding or embedded derivatives and discussed below under (“Embedded and Freestanding Insurance Derivatives”). |
Policyholders Dividends | Policyholders’ Dividends The amount of policyholders’ dividends to be paid (including dividends on policies included in the Closed Block) is determined annually by the board of directors of the issuing insurance company. The aggregate amount of |
Embedded and Freestanding Insurance Derivatives | Embedded and Freestanding Insurance Derivatives Reserves for products or features within products that are considered either embedded or freestanding derivatives are measured at estimated fair value separately from the host variable annuity product, with changes in estimated fair value reported in net derivative gains (losses). The estimated fair values of these derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees attributable to the guarantee. The projections of future benefits and future fees require capital markets and actuarial assumptions, including expectations concerning policyholder behavior. A risk-neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk-free rates. Additionally, the Company cedes and assumes reinsurance of products with GMxB features, which are considered either an embedded or freestanding derivative, and measured at fair value. The GMxB reinsurance contract asset and liabilities’ fair values reflect the present value of reinsurance premiums, net of recoveries, and risk margins over a range of market-consistent economic scenarios. Changes in the fair value of embedded and freestanding derivatives are reported in net derivative gains (losses). Embedded derivatives in direct and assumed reinsurance contracts are reported in future policyholders’ benefits and other policyholders’ liabilities. Amounts due from reinsurers contains the reinsurance of underlying GMIB contracts that are embedded derivatives, so the reinsurance has the same risk attributes as the underlying contracts and is an embedded derivatives carried at fair value. There are also embedded derivatives reported in the GMIB reinsurance contract asset related to ceded reinsurance contracts that are net settled, recorded at fair value in the consolidated balance sheets. Embedded derivatives fair values are determined based on the present value of projected future benefits minus the present value of projected future fees. At policy inception, a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits is attributed to the embedded derivative. The percentage of fees included in the fair value measurement is locked-in at inception. Fees above those amounts represent “excess” fees and are reported in policy charges and fee income. |
Separate Accounts | Separate Accounts Generally, Separate Accounts established under New York State and Arizona State Insurance Law are not chargeable with liabilities that arise from any other business of the Company. Separate Accounts assets are subject to General Account claims only to the extent Separate Accounts assets exceed separate accounts liabilities. Assets and liabilities of the Separate Account represent the net deposits and accumulated net investment earnings (loss) less fees, held primarily for the benefit of policyholders, and for which the Company does not bear the investment risk. Separate Accounts assets and liabilities are shown on separate lines in the consolidated balance sheets. Assets held in Separate Accounts are reported at quoted market values or, where quoted values are not readily available or accessible for these securities, their fair value measures most often are determined through the use of model pricing that effectively discounts prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such Separate Accounts are offset within the same line in the consolidated statements of income (loss). Deposits to Separate Accounts are reported as increases in Separate Accounts assets and liabilities and are not reported in the consolidated statements of income (loss). Mortality, policy administration and surrender charges on all policies including those funded by Separate Accounts are included in revenues. The Company reports the General Account’s interests in Separate Accounts as trading securities, at fair value, in the consolidated balance sheets. |
Leases | Leases The Company does not record leases with an initial term of 12 months or less in its consolidated balance sheets, but instead recognizes lease expense for these leases on a straight-line basis over the lease term. For leases with a term greater than one year, the Company records in its consolidated balance sheets at the time of lease commencement or modification a RoU operating lease asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the consolidated statements of income (loss) over the lease term on a straight-line basis. RoU operating lease assets represent the Company’s right to use an underlying asset for the lease term and RoU operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. |
Broker-Dealer Revenues, Receivables and Payables | Broker-Dealer Revenues, Receivables and Payables Equitable Advisors and certain of the Company’s other subsidiaries provide investment management, brokerage and distribution services for affiliates and third parties. Third-party revenues earned from these services are reported in other income in the Company’s consolidated statement of income (loss). Receivables from and payables to clients include amounts due on cash and margin transactions. Securities owned by customers are held as collateral for receivables; such collateral is not reflected in the consolidated financial statements. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill recorded by the Company represents the excess of purchase price over the estimated fair value of identifiable net assets of companies acquired in a business combination and relates principally to the acquisition of SCB Inc., an investment research and management company formerly known as Sanford C. Bernstein Inc. (“Bernstein Acquisition”), the purchase of AB Units, and AB’s acquisition of CarVal on July 1, 2022. The Company tests goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment. The Company uses a market valuation approach. Under the market valuation approach, the fair value of the reporting unit is based on its adjusted market valuation assuming a control premium. The Company determined that this valuation technique provided a more exact determination of fair value for the reporting unit and was applied during its annual testing for goodwill recoverability at December 31, 2022 and 2021. The Company’s intangible assets primarily relate to AB’s acquisition of CarVal and reflect amounts assigned to acquired investment management contracts based on their estimated fair values at the time of acquisition, less accumulated amortization. These intangible assets generally are amortized on a straight-line basis over their estimated useful life, ranging from six |
Deferred Sales Commissions, Net | Deferred Sales Commissions, Net Commissions paid to financial intermediaries in connection with the sale of shares of open-end AB sponsored mutual funds sold without a front-end sales charge (“back-end load shares”) are capitalized as deferred sales commissions and amortized over periods not exceeding five and one-half years for U.S. fund shares and four years for non-U.S. fund shares, the periods of time during which the deferred sales commissions are generally recovered. These commissions are recovered from distribution services fees received from those funds and from CDSC received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions of unamortized deferred sales commissions when received. Since January 31, 2009, AB sponsored U.S. mutual funds have not offered back-end load shares to new investors. |
Capitalized Computer Software and Hosting Arrangements | Capitalized Computer Software and Hosting ArrangementsCapitalized computer software and hosting arrangements include certain internal and external costs used to implement internal-use software and cloud computing hosting arrangements. These capitalized computer costs are included in other assets in the consolidated balance sheets and amortized on a straight-line basis over the estimated useful life of the software or term of the hosting arrangement that ranges between three |
Short-term and Long-term Debt | Short-term and Long-term Debt Liabilities for short-term and long-term debt are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within interest expense in the consolidated statements of income (loss). Short-term debt represents debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. See Note 12 of the Notes to these Consolidated Financial Statements for additional information regarding short-term and long-term debt. |
Income Taxes | Income Taxes The Company and certain of its consolidated subsidiaries and affiliates file a consolidated federal income tax return. The Company provides for federal and state income taxes currently payable, as well as those deferred due to temporary differences between the financial reporting and tax bases of assets and liabilities. Current federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred tax assets will not be realized. Under accounting for uncertainty in income taxes guidance, the Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the consolidated financial statements. Tax positions are then measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. ABLP is a private partnership for federal income tax purposes and, accordingly, is not subject to federal and state corporate income taxes. However, ABLP is subject to a 4.0% New York City unincorporated business tax. AB Holding is subject to a 3.5% federal tax on partnership gross income from the active conduct of a trade or business. Domestic corporate subsidiaries of AB are subject to federal, state and local income taxes. Foreign corporate subsidiaries are generally subject to taxes in the foreign jurisdictions where they are located. |
Recognition of Investment Management and Service Fees and Related Expenses | Recognition of Investment Management and Service Fees and Related Expenses Investment management, advisory and service fees Investment management and service fees principally include the Investment Management and Research segment’s investment advisory and service fees, distribution revenues and institutional research services revenue. Investment advisory and service base fees, generally calculated as a percentage, referred to as BPs, of assets under management, are recorded as revenue as the related services are performed. Certain investment advisory contracts, including those associated with hedge funds, provide for a performance-based fee, in addition to or in lieu of a base fee which is calculated as either a percentage of absolute investment results or a percentage of the investment results in excess of a stated benchmark over a specified period of time. Investment management and administrative service fees are also earned by EIM and EIMG and reported in the Individual Retirement, Group Retirement and Protection Solutions segments as well as certain asset-based fees associated with insurance contracts. AB provides asset management services by managing customer assets and seeking to deliver returns to investors. Similarly, EIM and EIMG provides investment management and administrative services, such as fund accounting and compliance services, to EQ Premier VIP Trust, EQAT and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trust and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). The contracts supporting these revenue streams create a distinct, separately identifiable performance obligation for each day the assets are managed for the performance of a series of services that are substantially the same and have the same pattern of transfer to the customer. Accordingly, these investment management, advisory, and administrative service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of AUM, are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. Certain investment advisory contracts of AB, including those associated with hedge funds or other alternative investments, provide for a performance-based fee (including carried interest), in addition to a base advisory fee, calculated either as a percentage of absolute investment results or a percentage of investment results in excess of a stated benchmark over a specified period of time. These performance-based fees are forms of variable consideration and, therefore, are excluded from the transaction price until it becomes probable there will not be significant reversal of the cumulative revenue recognized. At each reporting date, the Company evaluates constraining factors surrounding the variable consideration to determine the extent to which, if any, revenues associated with the performance-based fee can be recognized. Constraining factors impacting the amount of variable consideration included in the transaction price include contractual claw-back provisions, the length of time of the uncertainty, the number and range of possible amounts, the probability of significant fluctuations in the fund’s market value and the level in which the fund’s value exceeds the contractual threshold required to earn such a fee and the materiality of the amount being evaluated. Sub-advisory and sub-administrative expenses associated with these services are calculated and recorded as the related services are performed in other operating costs and expense in the consolidated statements of income (loss) as the Company is acting in a principal capacity in these transactions and, as such, reflects these revenues and expenses on a gross basis. Research services Research services revenue principally consists of brokerage transaction charges received by SCB LLC, SCBL and AB’s other sell side subsidiaries for providing equity research services to institutional clients. Brokerage commissions for trade execution services and related expenses may be used to pay for equity research services in accordance with Section 28(e) of the Exchange Act and are recorded on a trade-date basis when the performance obligations are satisfied. Generally, the transaction price is agreed upon at the point of each trade and based upon the number of shares traded or the value of the consideration traded. Research revenues are recognized when the transaction price is quantified, collectability is assured and significant reversal of such revenue is not probable. Distribution services Revenues from distribution services include fees received as partial reimbursement of expenses incurred in connection with the sale of certain AB sponsored mutual funds and the 1290 Funds and for the distribution primarily of EQAT and EQ Premier VIP Trust shares to separate accounts in connection with the sale of variable life and annuity contracts. The amount and timing of revenues recognized from performance of these distribution services often is dependent upon the contractual arrangements with the customer and the specific product sold as further described below. Most open-end management investment companies, such as U.S. funds and the EQAT and EQ Premier VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1 of the Investment Company Act that allows for certain share classes to pay out of assets, distribution and service fees for the distribution and sale of its shares (“12b-1 Fees”). These open-end management investment companies have such agreements with the Company, and the Company has selling and distribution agreements pursuant to which it pays sales commissions to the financial intermediaries that distribute the shares. These agreements may be terminated by either party upon notice (generally 30 days) and do not obligate the financial intermediary to sell any specific amount of shares. The Company records 12b-1 fees monthly based upon a percentage of the NAV of the funds. At month-end, the variable consideration of the transaction price is no longer constrained as the NAV can be calculated and the value of consideration is determined. These services are separate and distinct from other asset management services as the customer can benefit from these services independently of other services. The Company accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the expenses are incurred. The Company is acting in a principal capacity in these transactions; as such, these revenues and expenses are recorded on a gross basis in the consolidated statements of income (loss). AB sponsored mutual funds offer back-end load shares in limited instances and charge the investor a CDSC if the investment is redeemed within a certain period. The variable consideration for these contracts is contingent upon the timing of the redemption by the investor and the value of the sales proceeds. Due to these constraining factors, the Company excludes the CDSC fee from the transaction price until the investor redeems the investment. Upon redemption, the cash consideration received for these contractual arrangements is recorded as a reduction of unamortized deferred sales commissions. AB’s Luxembourg subsidiary, the management company for most of its non-U.S. funds, earns a management fee which is accrued daily and paid monthly, at an annual rate, based on the average daily net assets of the fund. With respect to certain share classes, the management fee also may contain a component paid to distributors and other financial intermediaries and service providers to cover shareholder servicing and other administrative expenses (also referred to as an “All-in-Fee”). Based on the conclusion that asset management is distinct from distribution, the Company allocates a portion of the investment and advisory fee to distribution revenues for the servicing component based on standalone selling prices. Other revenues Also reported as investment management and service fees in the Company’s consolidated statements of income (loss) are other revenues from contracts with customers, primarily consisting of shareholder servicing fees, mutual fund reimbursements and other brokerage income. Shareholder services, including transfer agency, administration and record-keeping are provided by AB to company-sponsored mutual funds. The consideration for these services is based on a percentage of the NAV of the fund or a fixed-fee based on the number of shareholder accounts being serviced. The revenues are recorded at month-end when the constraining factors involved with determining NAV or the numbers of shareholders’ accounts are resolved. Other income Revenues from contracts with customers reported as other income in the Company’s consolidated statements of income (loss) primarily consist of advisory account fees and brokerage commissions from the Company’s broker-dealer operations and sales commissions from the Company’s general agents for the distribution of non-affiliate insurers’ life insurance and annuity products. These revenues are recognized at month-end when constraining factors, such as AUM and product mix, are resolved and the transaction pricing no longer is variable such that the value of consideration can be determined. |
Accounting and Consolidation of VIEs | Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company, the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity. Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. Consolidated VIEs Consolidated CLOs The Company is the investment manager of certain asset-backed investment vehicles, commonly referred to as CLOs, and certain other vehicles for which the Company earns fee income for investment management services. The Company may sell or syndicate investments through these vehicles, principally as part of the strategic investing activity as part of its investment management businesses. Additionally, the Company may invest in securities issued by these vehicles which are eliminated in consolidation of the CLOs. As of December 31, 2022 and 2021, respectively, Equitable Financial holds $85 million and $109 million of equity interests in the CLOs. The Company consolidated the CLOs as of December 31, 2022 and 2021 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the CLOs loan manager. The assets of the CLOs are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLOs. As of December 31, 2022, Equitable Financial holds $76 million of equity interests in a SPE established to purchase loans from the market in anticipation of a new CLO transaction. The Company consolidated the SPE as of December 31, 2022 as it is the primary beneficiary due to the combination of both its equity interest held by Equitable Financial and the majority ownership of AB, which functions as the SPE loan manager. Resulting from this consolidation in the Company’s consolidated balance sheets are fixed maturities, at fair value using the fair value option with total assets of $1.5 billion and $1.6 billion notes issued by consolidated variable interest entities, at fair value using the fair value option with total liabilities of $1.2 billion and $1.2 billion at December 31, 2022 and 2021, respectively . The unpaid outstanding principal balance of the notes and short-term borrowing is $1.4 billion and $1.3 billion at December 31, 2022 and 2021. Consolidated Limited Partnerships and LLCs As of December 31, 2022 and 2021 the Company consolidated limited partnerships and LLCs for which it was identified as the primary beneficiary under the VIE model. Included in Other invested assets, Mortgage loans on real estate, Other equity investments, Trading securities, cash and other liabilities in the Company’s consolidated balance sheets at December 31, 2022 and 2021 are total net assets of $644 million and $219 million, respectively related to these VIEs. Consolidated AB-Sponsored Investment Funds Included in the Company’s consolidated balance sheet as of December 31, 2022 and 2021 are assets of $581 million and $734 million, liabilities of $56 million and $87 million, and redeemable noncontrolling interests of $369 million and $421 million , respectively, associated with the consolidation of AB-sponsored investment funds . Non-Consolidated VIEs As of December 31, 2022 and 2021 respectively, the Company held approximately $2.4 billion and $2.1 billion of investment assets in the form of equity interests issued by non-corporate legal entities determined under the guidance to be VIEs, such as limited partnerships and limited liability companies, including CLOs, hedge funds, private equity funds and real estate-related funds. The Company continues to reflect these equity interests in the consolidated balance sheets as other equity investments and applies the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $282.5 billion and $245.6 billion as of December 31, 2022 and 2021 respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $2.4 billion and $2.1 billion and approximately $1.3 billion and $1.2 billion of unfunded commitments as of December 31, 2022 and 2021, respectively. The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. Non-Consolidated AB-Sponsored Investment Products As of December 31, 2022 and 2021, the net assets of investment products sponsored by AB that are non-consolidated VIEs are approximately $46.4 billion and $68.9 billion, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $6 million and $9 million as of December 31, 2022 and 2021. The Company has no further commitments to or economic interest in these VIEs. |
Assumption Updates and Model Changes | Assumption Updates and Model Changes The Company conducts its annual review of its assumptions during the third quarter of each year. The annual review encompasses assumptions underlying the valuation of unearned revenue liabilities, embedded derivatives for our insurance business, liabilities for future policyholder benefits, DAC and DSI assets. However, the Company updates its assumptions as needed in the event it becomes aware of economic conditions or events that could require a change in assumptions that it believes may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact its earnings in the period of the change. Due to the extraordinary economic conditions driven by the COVID-19 pandemic in the first quarter of 2020, the Company updated its interest rate assumption to grade from the current interest rate environment to an ultimate five-year historical average over a 10-year period. As such, the 10-year U.S. Treasury yield grades from the current level to an ultimate 5-year average of 2.25%. The low interest rate environment and update to the interest rate assumption caused a loss recognition event for the Company’s life interest-sensitive products, as well as to certain run-off business. This loss recognition event caused an acceleration of DAC amortization on the life interest-sensitive products and an increase in the premium deficiency reserve on the run-off business in the first quarter of 2020. |
Fair Value Disclosures | U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. For the periods ended December 31, 2022, the Company recognized impairment adjustments and impairment losses, respectively, to adjust the carrying value of held-for-sale asset and liabilities to their fair value less cost to sell. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. The fair value was determined using a market approach, estimated based on the negotiated value of the asset and liabilities. See Note 23 of the Notes to these Consolidated Financial Statements for additional details of the Held-for-Sale assets and liabilities. As of December 31, 2021, no assets or liabilities were required to be measured at fair value on a non-recurring basis. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company has finalized key accounting policy decisions and executed the intended implementation plan including modifying actuarial valuation systems, modernizing key finance processes including data sourcing, analytical procedures and reporting, and updating internal controls. The Company is ready for adoption of the guidance as of January 1, 2023 using the modified retrospective approach, except for Market Risk Benefits (MRBs) which will use the full retrospective approach. Based upon the modified retrospective transition method, the Company estimates that the January 1, 2021 transition date impact from LDTI adoption is a decrease in total U.S. GAAP equity of $3.3 billion. This is primarily due to accounting for our variable annuity guarantees that are not currently measured at fair value as MRBs in the extremely low interest rate environment as of January 1, 2021. For full year 2021, U.S. GAAP net income under LDTI basis is estimated to be $2.2 billion higher than the previously reported 2021 net income of ($440) million due to better alignment between MRB liabilities and our economic hedging program. As of December 31, 2021, the impact on total equity is a decrease of approximately $1.1 billion and in line with our prior estimates. The U.S. GAAP net income for full year 2022 is estimated to be positive and less volatile under LDTI. The estimated impact to total U.S. GAAP equity as of December 31, 2022 is expected to be significantly mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business that results in a positive impact from accounting for its variable annuity guarantees as MRBs under the guidance at December 31, 2022. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Fixed Maturities by Classification | The following tables provide information relating to the Company’s fixed maturities classified as AFS. AFS Fixed Maturities by Classification Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) December 31, 2022 Fixed Maturities: Corporate (1) $ 50,712 $ 24 $ 89 $ 7,206 $ 43,571 U.S. Treasury, government and agency 7,054 — 1 1,218 5,837 States and political subdivisions 609 — 7 89 527 Foreign governments 985 — 2 151 836 Residential mortgage-backed (2) 908 — 1 87 822 Asset-backed (3) 8,859 — 4 373 8,490 Commercial mortgage-backed 3,823 — — 588 3,235 Redeemable preferred stock 41 — 2 — 43 Total at December 31, 2022 $ 72,991 $ 24 $ 106 $ 9,712 $ 63,361 December 31, 2021: Fixed Maturities: Corporate (1) $ 50,172 $ 22 $ 2,601 $ 240 $ 52,511 U.S. Treasury, government and agency 13,056 — 2,344 15 15,385 States and political subdivisions 586 — 78 2 662 Foreign governments 1,124 — 42 14 1,152 Residential mortgage-backed (2) 90 — 8 — 98 Asset-backed (3) 5,933 — 21 20 5,934 Commercial mortgage-backed 2,427 — 19 25 2,421 Redeemable preferred stock 41 — 12 — 53 Total at December 31, 2021 $ 73,429 $ 22 $ 5,125 $ 316 $ 78,216 ______________ (1) Corporate fixed maturities include both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. |
Schedule of Contractual Maturities of Available-for-Sale Fixed Maturities | The contractual maturities of AFS fixed maturities as of December 31, 2022 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Contractual Maturities of AFS Fixed Maturities Amortized Cost (Less Allowance for Credit Losses) Fair Value (in millions) December 31, 2022 Contractual maturities: Due in one year or less $ 1,858 $ 1,834 Due in years two through five 15,031 14,222 Due in years six through ten 16,281 14,433 Due after ten years 26,166 20,282 Subtotal 59,336 50,771 Residential mortgage-backed 908 822 Asset-backed 8,859 8,490 Commercial mortgage-backed 3,823 3,235 Redeemable preferred stock 41 43 Total at December 31, 2022 $ 72,967 $ 63,361 |
Schedule of Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities for the years ended December 31, 2022, 2021 and 2020: Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities Year Ended December 31, 2022 2021 2020 (in millions) Proceeds from sales $ 11,932 $ 27,363 $ 12,903 Gross gains on sales $ 45 $ 1,152 $ 862 Gross losses on sales $ (663) $ (195) $ (41) Net (increase) decrease in Allowance for Credit and Intent to Sell losses (1) $ (247) $ (16) $ (13) ______________ |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts. AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments Year Ended December 31, 2022 2021 2020 (in millions) Balance, beginning of period $ 44 $ 32 $ 21 Previously recognized impairments on securities that matured, paid, prepaid or sold (263) (4) (2) Recognized impairments on securities impaired to fair value this period (1) (2) 246 — — Credit losses recognized this period on securities for which credit losses were not previously recognized — 9 6 Additional credit losses this period on securities previously impaired 9 7 7 Increases due to passage of time on previously recorded credit losses — — — Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) — — — Balance at December 31, $ 36 $ 44 $ 32 ______________ (1) Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. |
Schedule of Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities | The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI. Net Unrealized Gains (Losses) on AFS Fixed Maturities Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2022 $ 4,809 $ (782) $ (418) $ (757) $ 2,852 Net investment gains (losses) arising during the period (15,275) — — — (15,275) Reclassification adjustment: Included in net income (loss) 867 — — — 867 Other (1) — — — (1,569) (1,569) Impact of net unrealized investment gains (losses) — 2,366 96 2,508 4,970 Net unrealized investment gains (losses) excluding credit losses (9,599) 1,584 (322) 182 (8,155) Net unrealized investment gains (losses) with credit losses (7) 1 — 1 (5) Balance, December 31, 2022 $ (9,606) $ 1,585 $ (322) $ 183 $ (8,160) Balance, January 1, 2021 $ 8,811 $ (1,548) $ (1,065) $ (1,302) $ 4,896 Net investment gains (losses) arising during the period (3,122) — — — (3,122) Reclassification adjustment: Included in net income (loss) (846) — — — (846) Other (2) (33) — — — (33) Impact of net unrealized investment gains (losses) — 767 648 544 1,959 Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Net unrealized investment gains (losses) excluding credit losses 4,810 (781) (417) (758) 2,854 Net unrealized investment gains (losses) with credit losses (1) (1) (1) 1 (2) Balance, December 31, 2021 $ 4,809 $ (782) $ (418) $ (757) $ 2,852 Balance, January 1, 2020 $ 3,453 $ (894) $ (189) $ (497) $ 1,873 Net investment gains (losses) arising during the period 6,192 — — — 6,192 Reclassification adjustment: — — — — — Included in net income (loss) (828) — — — (828) Impact of net unrealized investment gains (losses) — (655) (877) (806) (2,338) Net unrealized investment gains (losses) excluding credit losses 8,817 (1,549) (1,066) (1,303) 4,899 Net unrealized investment gains (losses) with credit losses (6) 1 1 1 (3) Balance, December 31, 2020 $ 8,811 $ (1,548) $ (1,065) $ (1,302) $ 4,896 _____________ (1) Reflects a Deferred Tax Asset valuation allowance of $1.6 billion recorded during the fourth quarter of 2022. See Note 16 o f the Notes to these Consolidated Financial Statements for additional details. (2) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments. |
Schedule of Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities | The following tables disclose the fair values and gross unrealized losses of the 5,209 issues as of December 31, 2022 and the 2,060 issues as of December 31, 2021 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated. AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) December 31, 2022 Fixed Maturities: Corporate $ 24,580 $ 2,668 $ 16,534 $ 4,536 $ 41,114 $ 7,204 U.S. Treasury, government and agency 5,564 1,200 204 18 5,768 1,218 States and political subdivisions 130 25 173 64 303 89 Foreign governments 349 42 417 109 766 151 Residential mortgage-backed 671 49 83 38 754 87 Asset-backed 6,298 230 1,765 143 8,063 373 Commercial mortgage-backed 1,577 201 1,640 387 3,217 588 Total at December 31, 2022 $ 39,169 $ 4,415 $ 20,816 $ 5,295 $ 59,985 $ 9,710 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) December 31, 2021: Fixed Maturities: Corporate $ 10,571 $ 163 $ 1,633 $ 75 $ 12,204 $ 238 U.S. Treasury, government and agency 993 11 105 4 1,098 15 States and political subdivisions 120 2 11 — 131 2 Foreign governments 349 6 92 8 441 14 Residential mortgage-backed — — — — — — Asset-backed 3,865 20 38 — 3,903 20 Commercial mortgage-backed 1,527 21 96 4 1,623 25 Total at December 31, 2021 $ 17,425 $ 223 $ 1,975 $ 91 $ 19,400 $ 314 |
Schedule of Financing Receivable, Allowance for Credit Loss | The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the years ended December 31, 2022 and 2021 were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 57 $ 77 $ 33 Current-period provision for expected credit losses 66 (20) 44 Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Net change in allowance 66 (20) 44 Balance, end of period $ 123 $ 57 $ 77 Agricultural mortgages: Balance, beginning of period $ 5 $ 4 $ 3 Current-period provision for expected credit losses 1 1 1 Write-offs charged against the allowance — — — Recoveries of amounts previously written off — — — Net change in allowance 1 1 1 Balance, end of period $ 6 $ 5 $ 4 Total allowance for credit losses $ 129 $ 62 $ 81 |
Schedule of Financing Receivable Credit Quality Indicators | The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of December 31, 2022 and 2021. Loan to Value (“LTV”) Ratios (1) December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: 0% - 50% $ 624 $ 130 $ — $ — $ 119 $ 1,259 $ — $ — $ 2,132 50% - 70% 2,285 1,569 906 313 623 2,254 328 — 8,278 70% - 90% 363 415 463 329 424 1,314 — 34 3,342 90% plus — — — — 35 233 — — 268 Total commercial $ 3,272 $ 2,114 $ 1,369 $ 642 $ 1,201 $ 5,060 $ 328 $ 34 $ 14,020 Agricultural: December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) 0% - 50% $ 163 $ 182 $ 228 $ 129 $ 132 $ 725 $ — $ — $ 1,559 50% - 70% 190 185 222 68 83 267 — — 1,015 70% - 90% — — — — — 16 — — 16 90% plus — — — — — — — — — Total agricultural $ 353 $ 367 $ 450 $ 197 $ 215 $ 1,008 $ — $ — $ 2,590 Total mortgage loans: 0% - 50% $ 787 $ 312 $ 228 $ 129 $ 251 $ 1,984 $ — $ — $ 3,691 50% - 70% 2,475 1,754 1,128 381 706 2,521 328 — 9,293 70% - 90% 363 415 463 329 424 1,330 — 34 3,358 90% plus — — — — 35 233 — — 268 Total mortgage loans $ 3,625 $ 2,481 $ 1,819 $ 839 $ 1,416 $ 6,068 $ 328 $ 34 $ 16,610 Debt Service Coverage Ratios (“DSC”) (2 ) December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 771 $ 1,159 $ 1,113 $ 102 $ 571 $ 1,923 $ — $ — $ 5,639 1.8x to 2.0x 158 215 164 197 186 482 279 — 1,681 1.5x to 1.8x 337 390 32 153 176 1,175 4 — 2,267 1.2x to 1.5x 1,041 259 — 92 73 917 — — 2,382 1.0x to 1.2x 507 43 60 98 160 492 45 34 1,439 Less than 1.0x 458 48 — — 35 71 — — 612 Total commercial $ 3,272 $ 2,114 $ 1,369 $ 642 $ 1,201 $ 5,060 $ 328 $ 34 $ 14,020 Agricultural: Greater than 2.0x $ 51 $ 40 $ 62 $ 21 $ 12 $ 193 $ — $ — $ 379 1.8x to 2.0x 16 58 35 24 14 51 — — 198 1.5x to 1.8x 69 42 111 18 19 196 — — 455 1.2x to 1.5x 107 147 177 98 99 298 — — 926 1.0x to 1.2x 91 80 61 30 60 257 — — 579 Less than 1.0x 19 — 4 6 11 13 — — 53 Total agricultural $ 353 $ 367 $ 450 $ 197 $ 215 $ 1,008 $ — $ — $ 2,590 December 31, 2022 Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Total mortgage loans: Greater than 2.0x $ 822 $ 1,199 $ 1,175 $ 123 $ 583 $ 2,116 $ — $ — $ 6,018 1.8x to 2.0x 174 273 199 221 200 533 279 — 1,879 1.5x to 1.8x 406 432 143 171 195 1,371 4 — 2,722 1.2x to 1.5x 1,148 406 177 190 172 1,215 — — 3,308 1.0x to 1.2x 598 123 121 128 220 749 45 34 2,018 Less than 1.0x 477 48 4 6 46 84 — — 665 Total mortgage loans $ 3,625 $ 2,481 $ 1,819 $ 839 $ 1,416 $ 6,068 $ 328 $ 34 $ 16,610 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. LTV Ratios (1) December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: 0% - 50% $ — $ — $ — $ 184 $ 293 $ 1,009 $ — $ — $ 1,486 50% - 70% 1,944 1,286 339 619 491 2,533 139 — 7,351 70% - 90% 190 236 412 415 276 972 — — 2,501 90% plus — — — 35 5 73 — — 113 Total commercial $ 2,134 $ 1,522 $ 751 $ 1,253 $ 1,065 $ 4,587 $ 139 $ — $ 11,451 Agricultural: 0% - 50% $ 180 $ 212 $ 128 $ 129 $ 119 $ 738 $ — $ — $ 1,506 50% - 70% 200 268 102 126 87 338 — — 1,121 70% - 90% — — — — — 17 — — 17 90% plus — — — — — — — — — Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ — $ — $ 2,644 December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Total mortgage loans: 0% - 50% $ 180 $ 212 $ 128 $ 313 $ 412 $ 1,747 $ — $ — $ 2,992 50% - 70% 2,144 1,554 441 745 578 2,871 139 — 8,472 70% - 90% 190 236 412 415 276 989 — — 2,518 90% plus — — — 35 5 73 — — 113 Total mortgage loans $ 2,514 $ 2,002 $ 981 $ 1,508 $ 1,271 $ 5,680 $ 139 $ — $ 14,095 DSC Ratios (2) December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Mortgage loans: Commercial: Greater than 2.0x $ 1,143 $ 1,243 $ 210 $ 772 $ 485 $ 2,235 $ — $ — $ 6,088 1.8x to 2.0x 185 135 182 46 161 372 68 — 1,149 1.5x to 1.8x 275 49 284 211 166 919 48 — 1,952 1.2x to 1.5x 264 95 75 101 253 701 — — 1,489 1.0x to 1.2x 267 — — 88 — 287 23 — 665 Less than 1.0x — — — 35 — 73 — — 108 Total commercial $ 2,134 $ 1,522 $ 751 $ 1,253 $ 1,065 $ 4,587 $ 139 $ — $ 11,451 December 31, 2021 Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Agricultural: Greater than 2.0x $ 49 $ 64 $ 25 $ 22 $ 24 $ 210 $ — $ — $ 394 1.8x to 2.0x 52 37 25 14 14 70 — — 212 1.5x to 1.8x 43 113 28 22 41 193 — — 440 1.2x to 1.5x 161 179 112 116 72 355 — — 995 1.0x to 1.2x 75 83 31 77 54 226 — — 546 Less than 1.0x — 4 9 4 1 39 — — 57 Total agricultural $ 380 $ 480 $ 230 $ 255 $ 206 $ 1,093 $ — $ — $ 2,644 Total mortgage loans: Greater than 2.0x $ 1,192 $ 1,307 $ 235 $ 794 $ 509 $ 2,445 $ — $ — $ 6,482 1.8x to 2.0x 237 172 207 60 175 442 68 — 1,361 1.5x to 1.8x 318 162 312 233 207 1,112 48 — 2,392 1.2x to 1.5x 425 274 187 217 325 1,056 — — 2,484 1.0x to 1.2x 342 83 31 165 54 513 23 — 1,211 Less than 1.0x — 4 9 39 1 112 — — 165 Total mortgage loans $ 2,514 $ 2,002 $ 981 $ 1,508 $ 1,271 $ 5,680 $ 139 $ — $ 14,095 ______________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. |
Schedule of Age Analysis Of Past Due Mortgage Loans | The following table provides information relating to the aging analysis of past-due mortgage loans as of December 31, 2022 and 2021, respectively. Age Analysis of Past Due Mortgage Loans (1) Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Days or More Total (in millions) December 31, 2022: Mortgage loans: Commercial $ 56 $ — $ — $ 56 $ 13,964 $ 14,020 $ — $ 14,020 $ — $ — Agricultural 3 5 13 21 2,553 2,574 16 2,590 — — Total $ 59 $ 5 $ 13 $ 77 $ 16,517 $ 16,594 $ 16 $ 16,610 $ — $ — Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Days or More Total (in millions) December 31, 2021: Mortgage loans: Commercial $ — $ — $ — $ — $ 11,451 $ 11,451 $ — $ 11,451 $ — $ — Agricultural 1 1 25 27 2,601 2,628 16 2,644 — — Total $ 1 $ 1 $ 25 $ 27 $ 14,052 $ 14,079 $ 16 $ 14,095 $ — $ — _______________ |
Schedule of Unrealized and Realized Gains (Losses) from Equity Securities and Net Investment Income (Loss) from Trading Securities and Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option | The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the years ended December 31, 2022 and 2021. Unrealized and Realized Gains (Losses) from Equity Securities Year Ended December 31, 2022 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (114) $ (19) Net investment gains (losses) recognized on securities sold during the period (36) 45 Unrealized and realized gains (losses) on equity securities $ (150) $ 26 Net Investment Income (Loss) from Trading Securities Year Ended December 31, 2022 2021 2020 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (198) $ (274) $ 128 Net investment gains (losses) recognized on securities sold during the period — 248 42 Unrealized and realized gains (losses) on trading securities (198) (26) 170 Interest and dividend income from trading securities 29 99 217 Net investment income (loss) from trading securities $ (169) $ 73 $ 387 The table below shows a breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option during the years ended December 31, 2022 and 2021. Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option Year Ended December 31, 2022 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (14) $ 12 Net investment gains (losses) recognized on securities sold during the period 2 4 Unrealized and realized gains (losses) from fixed maturities (12) 16 Interest and dividend income from fixed maturities 7 19 Net investment income (loss) from fixed maturities $ (5) $ 35 |
Schedule of Net Investment Income (Loss) | The following table breaks out net investment income (loss) by asset category: Year Ended December 31, 2022 2021 2020 (in millions) Fixed maturities $ 2,625 $ 2,440 $ 2,341 Mortgage loans on real estate 587 546 516 Other equity investments 134 609 67 Policy loans 215 203 204 Trading securities (169) 73 387 Other investment income 33 17 33 Fixed maturities, at fair value using the fair value option (5) 35 1 Gross investment income (loss) 3,420 3,923 3,549 Investment expenses (105) (77) (72) Net investment income (loss) $ 3,315 $ 3,846 $ 3,477 |
Schedule of Investment Gains (Losses), Net | Investment gains (losses), net, including changes in the valuation allowances and credit losses are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Fixed maturities $ (868) $ 847 $ 828 Mortgage loans on real estate (66) 19 (45) Other equity investments (1) — — 30 Other (11) 2 (69) Investment gains (losses), net $ (945) $ 868 $ 744 _____________ (1) Investment gains (losses), net of Other equity investments includes Real Estate Held for production during the years ended December 31, 2021 and December 31, 2020. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments by Category | The following table presents the gross notional amount and estimated fair value of the Company’s derivatives: Derivative Instruments by Category December 31, 2022 December 31, 2021 Fair Value Fair Value Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities (in millions) Derivatives: designated for hedge accounting (1) Cash flow hedges: Currency swaps $ 1,431 $ 99 $ 85 $ 921 $ 7 $ 42 Interest swaps 955 — 294 955 — 395 Total: designated for hedge accounting 2,386 99 379 1,876 7 437 Derivatives: not designated for hedge accounting (1) Equity contracts: Futures 5,151 2 — 2,640 — 1 Swaps 11,188 39 9 13,378 6 4 Options 40,122 7,583 3,412 48,489 12,024 5,065 Interest rate contracts: Futures 12,693 — — 12,575 — — Swaps 1,515 — 166 1,889 — 46 Credit contracts: Credit default swaps 327 18 9 774 9 10 Currency contracts Currency swaps 397 4 13 541 1 — Currency forwards 62 31 32 79 8 7 Other freestanding contracts: Margin — 226 — — 125 — Collateral — 142 4,472 — 178 6,160 Total: not designated for hedge accounting 71,455 8,045 8,113 80,365 12,351 11,293 Embedded derivatives: Amounts due from reinsurers (5) — 4,114 — — 5,813 — GMIB reinsurance contracts (2) — 1,229 — — 1,848 — GMxB derivative features liability (3) — — 5,764 — — 8,525 SCS, SIO, MSO and IUL indexed features (4) — — 4,164 — — 6,773 Total embedded derivatives — 5,343 9,928 — 7,661 15,298 Total derivative instruments $ 73,841 $ 13,487 $ 18,420 $ 82,241 $ 20,019 $ 27,028 ___________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in GMIB reinsurance contract asset in the consolidated balance sheets. (3) Reported in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in policyholders’ account balances in the consolidated balance sheets. (5) Represents GMIB NLG ceded related to the Venerable Transaction. The following table presents the effects of derivative instruments on the consolidated statements of income and comprehensive income (loss). Derivative Instruments by Category Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Net Derivatives Gain(Losses) (1) NII (2) Interest Credited To Policyholder Account Balances AOCI Net Derivatives Gain(Losses) (1) Interest Credited To Policyholder Account Balances AOCI Net Derivatives Gain(Losses) (1) Interest Credited To Policyholder Account Balances AOCI (in millions) Derivatives: Designated for Hedge accounting Cash Flow Hedges: Currency Swaps $ 19 $ 7 $ (4) $ 24 $ (2) $ (45) $ 5 $ — $ — $ — Interest Swaps (86) — — 206 (69) — (87) (9) — (87) Total: Designated for Hedge accounting (67) 7 (4) 230 (71) (45) (82) (9) — (87) Derivatives: Not Designated for Hedge accounting Equity contracts Futures 285 — — — (567) — — (1,011) — — Swaps 2,644 — — — (3,614) — — (3,368) — — Options (2,750) — — — 3,886 — — 1,663 — — Interest Rate contracts Futures (1,688) — — — (728) — — 1,740 — — Swaps (492) — — — (2,317) — — 2,832 — — Swaptions — — — — — — — 9 — — Credit contracts Credit Default Swaps 7 — — — (2) — — — — — Currency contracts Currency Swaps 10 — — — 3 — — (4) — — Currency forwards 3 — — — 2 — — — — — Total: Not Designated for Hedge accounting (1,981) — — — (3,337) — — 1,861 — — Embedded Derivatives Amounts due from reinsurers (1,706) — — — 517 — — — — — GMIB reinsurance contracts (581) — — — (625) — — 417 — — GMxB derivative features liability (3) 3,076 — — — 2,841 — — (2,253) — — Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Net Derivatives Gain(Losses) (1) NII (2) Interest Credited To Policyholder Account Balances AOCI Net Derivatives Gain(Losses) (1) Interest Credited To Policyholder Account Balances AOCI Net Derivatives Gain(Losses) (1) Interest Credited To Policyholder Account Balances AOCI (in millions) SCS, SIO,MSO and IUL indexed features 2,955 — — — (3,835) — — (1,738) — — Total Embedded Derivatives 3,744 — — — (1,102) — — (3,574) — — Total derivatives instruments $ 1,696 $ 7 $ (4) $ 230 $ (4,510) $ (45) $ (82) $ (1,722) $ — $ (87) _____________ (1) Reported in net derivative gains (losses) in the consolidated statements of income (loss). (2) Net Investment Income (“NII”). |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents a roll-forward of cash flow hedges recognized in AOCI. Roll-forward of Cash flow hedges in AOCI Year Ended December 31, 2022 2021 2020 (in millions) Balance, beginning of period $ (208) $ (126) $ (38) Amount recorded in AOCI Currency swaps 29 (35) — Interest swaps 102 (183) (108) Total amount recorded in AOCI 131 (218) (108) Amount reclassified from AOCI to income Currency swaps (1) (5) 40 — Interest swaps (1) 104 96 20 Total amount reclassified from AOCI to income 99 136 20 Balance, end of period (2) $ 22 $ (208) $ (126) _______________ (1) Currency swaps reclassified from AOCI to income are reported in net investment income in the consolidated statements of income (loss). Interest swaps reclassified from AOCI to income are reported in net derivative gains (losses) in the consolidated statements of income (loss). (2) The Company does not estimate the amount of the deferred losses in AOCI at years ended December 31, 2022, 2021 and 2020 which will be released and reclassified into Net income (loss) over the next 12 months as the amounts cannot be reasonably estimated. |
Schedule of Offsetting Financial Assets and Liabilities and Derivative Instruments | The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of December 31, 2022 and 2021: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of December 31, 2022 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (3) Net Amount (in millions) Assets: Derivative assets (1) $ 8,143 $ 7,047 $ 1,096 $ (848) $ 248 Other financial assets 2,789 — 2,789 — 2,789 Other invested assets $ 10,932 $ 7,047 $ 3,885 $ (848) $ 3,037 Liabilities: Derivative liabilities (2) $ 7,645 $ 7,047 $ 598 $ — $ 598 Other financial liabilities 5,275 — 5,275 — 5,275 Other liabilities $ 12,920 $ 7,047 $ 5,873 $ — $ 5,873 ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Financial instruments/Collateral sent (held). As of December 31, 2021 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (3) Net Amount (in millions) Assets: Derivative assets (1) $ 12,358 $ 10,756 $ 1,602 $ (961) $ 641 Other financial assets 1,989 — 1,989 — 1,989 Other invested assets $ 14,347 $ 10,756 $ 3,591 $ (961) $ 2,630 Liabilities: Derivative liabilities (2) $ 10,770 $ 10,756 $ 14 $ — $ 14 Other financial liabilities 3,919 — 3,919 — 3,919 Other liabilities $ 14,689 $ 10,756 $ 3,933 $ — $ 3,933 ______________ (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Financial instruments sent (held). |
CLOSED BLOCK (Tables)
CLOSED BLOCK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Assets and Liabilities | Summarized financial information for the Company’s Closed Block is as follows: December 31, 2022 2021 (in millions) Closed Block Liabilities: Future policy benefits, policyholders’ account balances and other $ 5,688 $ 5,928 Policyholder dividend obligation — — Other liabilities 68 39 Total Closed Block liabilities 5,756 5,967 Assets Designated to the Closed Block: Fixed maturities AFS, at fair value (amortized cost of $3,171 and $3,185) (allowance for credit losses of $0 and $0) 2,948 3,390 Mortgage loans on real estate (net of allowance for credit losses of $4 and $4) 1,645 1,771 Policy loans 569 602 Cash and other invested assets — 63 Other assets 155 90 Total assets designated to the Closed Block 5,317 5,916 Excess of Closed Block liabilities over assets designated to the Closed Block 439 51 Amounts included in AOCI: Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $47 and ($43) (166) 172 Maximum future earnings to be recognized from Closed Block assets and liabilities $ 273 $ 223 |
Schedule of Closed Block Operations, Net Results | The Company’s Closed Block revenues and expenses were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Revenues: Premiums and other income $ 125 $ 144 $ 157 Net investment income (loss) 221 237 251 Investment gains (losses), net (3) 4 — Total revenues 343 385 408 Benefits and Other Deductions: Policyholders’ benefits and dividends 328 372 399 Other operating costs and expenses 2 3 1 Total benefits and other deductions 330 375 400 Net income (loss), before income taxes 13 10 8 Income tax (expense) benefit (1) (2) (2) Net income (loss) $ 12 $ 8 $ 6 |
Schedule of Closed Block Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: Year Ended December 31, 2022 2021 2020 (in millions) Beginning balance $ — $ 160 $ 2 Unrealized investment gains (losses) — (160) 158 Ending balance $ — $ — $ 160 |
DAC AND POLICYHOLDER BONUS IN_2
DAC AND POLICYHOLDER BONUS INTEREST CREDITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Contract holder Bonus Interest Credits [Abstract] | |
Schedule of Contractholder Bonus Interest Credits | Changes in the DAC asset for the years ended December 31, 2022, 2021 and 2020 were as follows: December 31, 2022 2021 2020 (in millions) Balance, beginning of year $ 5,491 $ 4,243 $ 5,840 Capitalization of commissions, sales and issue expenses 842 875 669 Amortization: Impact of assumptions updates and model changes 43 58 (1,109) All other (585) 451 (504) Total amortization (542) (393) (1,613) Change in unrealized investment gains and losses 2,367 766 (654) Reclassified to assets HFS — — 1 Balance, end of year $ 8,158 $ 5,491 $ 4,243 The deferred asset for policyholder bonus interest credits is reported in other assets in the consolidated balance sheets and changes in the deferred asset for policyholder bonus interest credits are reported in Interest credited to policyholders’ account balances. For the years ended December 31, 2022, 2021 and 2020 changes were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Balance, beginning of year $ 373 $ 404 $ 430 Amortization charged to income (39) (31) (26) Balance, end of year $ 334 $ 373 $ 404 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below. Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (1) $ — $ 41,450 $ 2,121 $ 43,571 U.S. Treasury, government and agency — 5,837 — 5,837 States and political subdivisions — 499 28 527 Foreign governments — 836 — 836 Residential mortgage-backed (2) — 788 34 822 Asset-backed (3) — 8,490 — 8,490 Commercial mortgage-backed — 3,203 32 3,235 Redeemable preferred stock — 43 — 43 Total fixed maturities, AFS — 61,146 2,215 63,361 Fixed maturities, at fair value using the fair value option — 1,284 224 1,508 Other equity investments (7) 214 497 12 723 Trading securities 290 332 55 677 Other invested assets: Short-term investments — 943 — 943 Assets of consolidated VIEs/VOEs 131 393 5 529 Swaps — (425) — (425) Credit default swaps — 9 — 9 Futures 2 — — 2 Options — 4,171 — 4,171 Total other invested assets 133 5,091 5 5,229 Cash equivalents 2,386 501 — 2,887 Segregated securities — 1,522 — 1,522 Amounts due from reinsurer (6) — — 4,114 4,114 GMIB reinsurance contracts asset — — 1,229 1,229 Separate Accounts assets (4) 111,744 2,436 1 114,181 Total Assets $ 114,767 $ 72,809 $ 7,855 $ 195,431 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (5) $ — $ 1,374 $ — $ 1,374 GMxB derivative features’ liability — — 5,764 5,764 SCS, SIO, MSO and IUL indexed features’ liability — 4,164 — 4,164 Liabilities of consolidated VIEs and VOEs 15 7 — 22 Contingent payment arrangements — — 247 247 Total Liabilities $ 15 $ 5,545 $ 6,011 $ 11,571 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. (4) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate. As of December 31, 2022, the fair value of such investments was $456 million. (5) Includes CLO short-term debt of $239 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option. Accrued interest payable of $15 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. (6) This represents GMIB NLG ceded reserves related to the Venerable Transaction. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction. (7) Includes short position equity securities of $12 million that are reported in other liabilities. Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments Fixed maturities, AFS: Corporate (1) $ — $ 51,007 $ 1,504 $ 52,511 U.S. Treasury, government and agency — 15,385 — 15,385 States and political subdivisions — 627 35 662 Foreign governments — 1,152 — 1,152 Residential mortgage-backed (2) — 98 — 98 Asset-backed (3) — 5,926 8 5,934 Commercial mortgage-backed (2) — 2,401 20 2,421 Redeemable preferred stock — 53 — 53 Total fixed maturities, AFS — 76,649 1,567 78,216 Fixed maturities, at fair value using the fair value option 1,440 201 1,641 Other equity investments 322 457 5 784 Trading securities 340 226 65 631 Other invested assets: Short-term investments — 30 — 30 Assets of consolidated VIEs/VOEs 166 450 11 627 Swaps — (473) — (473) Credit default swaps — (1) — (1) Futures (1) — — (1) Options — 6,959 — 6,959 Swaptions — — — — Total other invested assets 165 6,965 11 7,141 Cash equivalents 3,275 293 — 3,568 Segregated securities — 1,504 — 1,504 Amounts due from reinsurer — — 5,813 5,813 GMIB reinsurance contracts asset — — 1,848 1,848 Separate Accounts assets (4) 144,124 2,572 1 146,697 Total Assets $ 148,226 $ 90,106 $ 9,511 $ 247,843 Liabilities Notes issued by consolidated VIE’s, at fair value using the fair value option (5) $ — $ 1,277 $ — $ 1,277 GMxB derivative features’ liability — — 8,525 8,525 SCS, SIO, MSO and IUL indexed features’ liability — 6,773 — 6,773 Liabilities of consolidated VIEs and VOEs 16 2 — 18 Contingent payment arrangements — — 38 38 Total Liabilities $ 16 $ 8,052 $ 8,563 $ 16,631 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes publicly traded agency pass-through securities and collateralized obligations. (3) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (4) Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. As of December 31, 2021, the fair value of such investments was $404 million. (5) Includes CLO short-term debt of $92 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option Accrued interest payable of $6 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis. |
Schedule of Reconciliation of Assets and Liabilities at Level 3 | The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the years ended December 31, 2022, 2021 and 2020, respectively. Corporate State and Political Subdivisions Asset-backed CMBS RMBS Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, January 1, 2022 $ 1,504 $ 35 $ 8 $ 20 $ — $ 65 $ 201 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 5 — — — — — (11) Investment gains (losses), net (5) — — — — (10) — Subtotal — — — — — (10) (11) Other comprehensive income (loss) (159) (5) — (2) — — — Purchases 1,107 — — 14 34 — 98 Sales (378) (2) (2) — — — (36) Activity related to consolidated VIEs/VOEs — — — — — — — Transfers into Level 3 (1) 168 — — — — — 45 Transfers out of Level 3 (1) (121) — (6) — — — (73) Balance, December 31, 2022 $ 2,121 $ 28 $ — $ 32 $ 34 $ 55 $ 224 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — $ (10) $ (2) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (156) $ (5) $ — $ (2) $ — $ — $ — Balance, January 1, 2021 $ 1,702 $ 39 $ 20 $ — $ — $ 39 $ 80 Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 5 — — — — — 5 Investment gains (losses), net (16) — — — — 26 — Subtotal (11) — — — — 26 5 Other comprehensive income (loss) 34 (2) — — — — — Purchases 938 — 6 20 — — 211 Sales (473) (2) (18) — — — (23) Activity related to consolidated VIEs/VOEs — — — — — — — Transfers into Level 3 (1) 27 — — — — — — Transfers out of Level 3 (1) (713) — — — — — (72) Balance, December 31, 2021 $ 1,504 $ 35 $ 8 $ 20 $ — $ 65 $ 201 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — $ 26 $ 5 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ 28 $ (2) $ — $ — $ — $ — $ — Corporate State and Political Subdivisions Asset-backed CMBS RMBS Trading Securities, at Fair Value Fixed maturities, at FVO (in millions) Balance, January 1, 2020 $ 1,257 $ 39 $ 100 $ — $ — $ 36 $ — Total gains and (losses), realized and unrealized, included in: Net income (loss) as: Net investment income (loss) 4 — — — — — — Investment gains (losses), net (16) — — — — 3 — Subtotal (12) — — — — 3 — Other comprehensive income (loss) (17) 2 — — — — — Purchases 514 — 20 — — — 81 Sales (226) (2) — — — — (1) Activity related to consolidated VIEs/VOEs — — — — — — — Transfers into Level 3 (1) 189 — — — — — — Transfers out of Level 3 (1) (3) — (100) — — — — Balance, December 31, 2020 $ 1,702 $ 39 $ 20 $ — $ — $ 39 $ 80 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) $ — $ — $ — $ — $ — $ 3 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) $ (18) $ 2 $ — $ — $ — $ — $ — ________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (2) For instruments held as of December 31, 2022 or December 31, 2021, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. Other Equity Investments (7) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Balance, January 1, 2022 $ 16 $ 1,848 $ 5,815 $ 1 $ (8,525) $ (38) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income (1) — — — — — Net derivative gains (losses) (1) — (581) (1,706) — 3,076 — Total realized and unrealized gains (losses) (1) (581) (1,706) — 3,076 — Other comprehensive income (loss) — — — — — — Purchases (2) 8 40 122 — (462) (231) Sales (3) — (78) (117) — 147 — Settlements — — — — — — Other (8) — — — — — 22 Activity related to consolidated VIEs/VOEs (3) — — — — — Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) (3) — — — — — Balance, December 31, 2022 $ 17 $ 1,229 $ 4,114 $ 1 $ (5,764) $ (247) Other Equity Investments (7) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ (1) $ (581) $ (1,706) $ — $ 3,076 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — Balance, January 1, 2021 $ 84 $ 2,488 $ — $ 1 $ (11,131) $ (28) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income 21 — — — — — Net derivative gains (losses) (1) (5) — (625) 517 — 2,841 — Total realized and unrealized gains (losses) 21 (625) 517 — 2,841 — Other comprehensive income (loss) — — — — — — Purchases (2) 8 43 74 1 (463) (7) Sales (3) (92) (58) (35) — 88 — Other — — 5,259 — — — Activity related to consolidated VIEs/VOEs (4) — — — — (3) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) (1) — — (1) 140 — Balance, December 31, 2021 $ 16 $ 1,848 $ 5,815 $ 1 $ (8,525) $ (38) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ 2 $ (625) $ 517 $ — $ 2,841 $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — Balance, January 1, 2020 $ 113 $ 2,139 $ — $ — $ (8,502) $ (23) Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income (8) — — — — — Net derivative gains (losses) (1) (5) — 417 — — (2,253) — Total realized and unrealized gains (losses) (8) 417 — — (2,253) — Other comprehensive income (loss) — — — — — — Purchases (2) 9 43 — 1 (451) (4) Sales (3) (26) (79) — — 75 — Settlements (4) — — — — — 1 Change in estimate — (32) — — — 1 Activity related to consolidated VIEs/VOEs (4) — — — — (3) Transfers into Level 3 (4) — — — — — — Transfers out of Level 3 (4) — — — — — — Balance, December 31, 2020 $ 84 $ 2,488 $ — $ 1 $ (11,131) $ (28) Other Equity Investments (7) GMIB Reinsurance Contract Asset Amounts Due from Reinsurers Separate Accounts Assets GMxB Derivative Features Liability Contingent Payment Arrangement (in millions) Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) $ (8) $ 417 $ 74 $ 1 $ (2,253) $ (7) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) $ — $ — $ — $ — $ — $ — (2) For the GMIB reinsurance contract asset, Amounts Due from Reinsurers and GMxB derivative features liability, represents attributed fee. (3) For the GMIB reinsurance contract asset and Amounts Due from Reinsurers, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid. (4) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. (5) For the year ended December 31, 2021, GMxB Derivative Features Liability excludes settlement fees on CS Life reinsurance contract of $45 million. (6) For instruments held as of December 31, 2022 or December 31, 2021, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income. (7) Other Equity Investments include other invested assets. |
Schedule of Quantitative Information About Level 3 Fair Value Measurement | The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of December 31, 2022 and 2021, respectively. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2022 Fair Valuation Technique Significant Unobservable Input Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 417 Matrix pricing model Spread over Benchmark 20 bps - 797 bps 205 bps 1,029 Market comparable EBITDA multiples Discount rate Cash flow multiples Loan to value 5.3x - 35.8x 9.0% - 45.7% 0.0x - 10.3x 0.0% - 40.4% 13.6x 11.9% 6.1x 12.0% Trading Securities, at Fair Value 55 Discounted Cash Flow Earnings multiple Discount factor Discount years 8.3x 10.0% 7 Other equity investments 4 Market comparable companies Revenue multiple 0.5x - 10.8x 2.4x Fair Valuation Technique Significant Unobservable Input Range Weighted Average (2) GMIB reinsurance contract asset 1,229 Discounted cash flow Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.26%-26.23% 0.06%-10.93% 0.04%-62.30% 69 bps - 133 bps 14%-32% 0.01%-0.17% 0.06%-0.52% 0.32%-40.00% 3.05% 0.99% 5.40% 70 bps 24% 3.09% (same for all ages) (same for all ages) Amount Due from Reinsurers 4,114 Discounted Cash Flow Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk (bps) Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.26%-26.23% 0.06%-10.93% 0.04%-62.30% 51 bps 14%-32% 0.01%-0.17% 0.06%-0.52% 0.32%-40.00% 2.01% 1.32% 7.95% 51 bps 24% 2.33% (same for all ages) (same for all ages) Liabilities: AB Contingent Consideration Payable $ 247 Discounted cash flow Expected revenue growth rates Discount rate 2.0% - 83.9% 1.9% - 10.4% 11.5% 4.5% GMIB NLG 5,761 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41-60 Ages 61-115 147 bps 0.26%-35.42% 0.06%-10.93% 0.04%-100.00% 0.01%-0.18% 0.07%-0.54% 0.42%-41.42% 147 bps 4.26% 1.25% 5.95% 1.73% (same for all ages) (same for all ages) GWBL/GMWB 70 Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps) 0.35%-26.23% 0.00%-8.00% 100% once starting 14%-32% 147 bps 3.05% 0.99% 24% GIB (65) Discounted cash flow Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps) 0.35%-26.23% 0.20%-1.24% 0.04%-100.00% 14% - 32% 147 bps 3.05% 0.99% 5.40% 24% GMAB (2) Discounted cash flow Lapse rates Volatility rates - Equity Non-performance risk(bps) 0.35%-26.23% 14%-32% 147 bps 3.05% 24% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. (2) For lapses, withdrawals, and utilizations the rates were weighted by counts; for mortality weighted average rates are shown for all ages combined; and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2021 Fair Valuation Significant Range Weighted Average (2) (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 258 Matrix pricing model Spread over benchmark 20 bps - 270 bps 144 bps Fair Valuation Significant Range Weighted Average (2) (in millions) 888 Market comparable companies EBITDA multiples Discount rate Cash flow multiples Loan to value 4.9x - 62.3x 6.2% - 21.5% 0.5x-10.0x 3.1%-63.4% 13.0x 9.1% 5.5x 30.8% Trading Securities, at Fair Value 65 Discounted cash flow Earnings multiple Discounts factor Discount years 7.3x 10.00% 11 Other equity investments 4 Market comparable companies Revenue multiple 7.8x - 10.3x 9.5x GMIB reinsurance contract asset 1,848 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 57 bps - 93 bps 0.45% - 20.86% 0.27% - 8.66% 0.04% - 60.44% 11% - 31% 0.01% - 0.17% 0.06% - 0.53% 0.31% - 40.00% 60 bps 2.65% 0.93% 5.27% 24% 2.79% (same for all ages) (same for all ages) Amount Due from Reinsurers 5,813 Discounted Cash Flow Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk (bps) Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 0.45%-20.86% 0.27%-8.66% 0.04%-60.44% 37 bps 11%-31% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00% 1.70% 1.18% 7.20% 37 bps 24% 2.17% (same for all ages) (same for all ages) Liabilities: AB Contingent Consideration Payable 38 Discounted cash flow Expected revenue growth rates Discount rate 2.0% - 83.9% 1.9% - 10.4% 11.9% 7.0% GMIB NLG 8,503 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 111 bps 1.04% - 23.57% 0.27% - 8.66% 0.03% -100.00% 0.01% - 0.19% 0.07% - 0.57% 0.44% - 43.60% 111 bps 3.55% 1.04% 5.24% 1.62% (same for all ages) (same for all ages) GWBL/GMWB 99 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity 111 bps 0.60%-20.86% 0.00%-8.00% 100% once starting 11%-31% 2.65% 0.93% 24% GIB (75) Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity 111 bps 0.60%-20.86% 0.13%-8.66% 0.04%-100.00% 11%-31% 2.65% 0.93% 5.27% 24% GMAB (3) Discounted cash flow Non-performance risk Lapse rates Volatility rates - Equity 111 bps 0.60%-20.86% 11%-31% 2.65% 24% ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. (2) For lapses, withdrawals, and utilizations the rates were weighted by counts; for mortality weighted average rates are shown for all ages combined; and for withdrawals the weighted averages were based on an estimated split of partial withdrawal and dollar-for-dollar withdrawals. |
Schedule of Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values as of December 31, 2022 and 2021 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements are presented in the table below. Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed Carrying Fair Value Level 1 Level 2 Level 3 Total (in millions) December 31, 2022: Mortgage loans on real estate $ 16,481 $ — $ — $ 14,690 $ 14,690 Policy loans $ 4,033 $ — $ — $ 4,349 $ 4,349 Policyholders’ liabilities: Investment contracts $ 1,916 $ — $ — $ 1,750 $ 1,750 FHLB funding agreements $ 8,505 $ — $ 8,390 $ — $ 8,390 FABN funding agreements $ 7,095 $ — $ 6,384 $ — $ 6,384 Short-term debt (1) $ 520 $ — $ 518 $ — $ 518 Long-term debt $ 3,322 $ — $ 3,130 $ — $ 3,130 Separate Accounts liabilities $ 10,236 $ — $ — $ 10,236 $ 10,236 December 31, 2021 (1): Mortgage loans on real estate $ 14,033 $ — $ — $ 14,308 $ 14,308 Policy loans $ 4,024 $ — $ — $ 5,050 $ 5,050 Policyholders’ liabilities: Investment contracts $ 2,035 $ — $ — $ 2,103 $ 2,103 FHLB funding agreements $ 6,647 $ — $ 6,679 $ — $ 6,679 FABN funding agreements $ 6,689 $ — $ 6,626 $ — $ 6,626 Long-term debt $ 3,839 $ — $ 4,544 $ — $ 4,544 Separate Accounts liabilities $ 11,620 $ — $ — $ 11,620 $ 11,620 _____________ (1) As of December 31, 2022 and 2021, excludes CLO short-term debt of $239 million and $92 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option. |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Schedule of Variable Annuity Contracts- GMDB GMIB | Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature Years Ended December 31, 2022, 2021 and 2020 GMDB GMIB Direct Assumed Ceded Direct Assumed Ceded (in millions) Balance, January 1, 2020 $ 4,780 $ 76 $ (104) $ 4,673 $ 187 $ (2,139) Paid guarantee benefits (495) (22) 15 (293) 15 79 Other changes in reserve 812 18 1 1,646 (6) (428) Balance, December 31, 2020 $ 5,097 $ 72 $ (88) $ 6,026 $ 196 $ (2,488) Paid guarantee benefits (461) (12) 113 (377) (49) 58 Other changes in reserve 315 14 (65) 243 (7) 603 Impact of the Venerable Transaction — (74) (2,176) — (140) (2,141) Balance, December 31, 2021 $ 4,951 $ — $ (2,216) $ 5,892 $ — $ (3,968) Paid guarantee benefits (595) — 249 (602) — 76 Other changes in reserve 886 — (359) 336 — 646 Balance, December 31, 2022 $ 5,242 $ — $ (2,326) $ 5,626 $ — $ (3,246) ______________ (1) Change in Assumed is driven by the sale of CSLRC to Venerable. (2) Includes the impact as of June 1, 2021 on the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction. |
Schedule of Net Amount of Risk by Product and Guarantee | Direct Variable Annuity Contracts with GMDB and GMIB Features as of December 31, 2022 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMDB features Account Values invested in: General Account $ 16,891 $ 97 $ 46 $ 144 $ 17,178 Separate Accounts 47,608 7,445 2,452 25,211 82,716 Total Account Values $ 64,499 $ 7,542 $ 2,498 $ 25,355 $ 99,894 NAR, gross $ 739 $ 1,422 $ 1,843 $ 23,101 $ 27,105 NAR, net of amounts reinsured $ 726 $ 1,291 $ 1,341 $ 12,469 $ 15,827 Average attained age of policyholders (in years) 51.6 69.8 76.1 71.8 55.3 Percentage of policyholders over age 70 12.1 % 52.8 % 74.7 % 60.7 % 21.1 % Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ 14 $ 188 $ 202 Separate Accounts — — 21,001 26,529 47,530 Total Account Values $ — $ — $ 21,015 $ 26,717 $ 47,732 NAR, gross $ — $ — $ 489 $ 7,540 $ 8,029 NAR, net of amounts reinsured $ — $ — $ 157 $ 3,071 $ 3,228 Average attained age of policyholders (in years) N/A N/A 65.8 71.4 69.2 Weighted average years remaining until annuitization N/A N/A 5.4 0.5 2.4 Range of contractually specified interest rates N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5% |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Investment in Variable Insurance Trust Mutual Funds December 31, 2022 December 31, 2021 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 39,779 $ 14,075 $ 52,771 $ 20,015 Fixed income 4,416 1,964 5,391 2,507 Balanced 37,398 31,240 48,390 40,491 Other 1,123 251 1,025 263 Total $ 82,716 $ 47,530 $ 107,577 $ 63,276 |
Schedule of No Lapse Guarantee Liabilities | The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the consolidated balance sheets, is summarized in the table below. Direct Liability (1) Year Ended December 31, 2022 2021 2020 (in millions) Beginning balance $ 1,096 $ 1,022 $ 898 Paid guarantee benefits (79) (84) (39) Other changes in reserves 145 158 163 Ending balance $ 1,162 $ 1,096 $ 1,022 _____________ (1) There were no amounts of reinsurance ceded in any period presented. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities, Leases | Balance Sheet Classification of Operating Lease Assets and Liabilities December 31, Balance Sheet Line Item 2022 2021 (in millions) Assets: Operating lease assets Other assets $ 520 $ 637 Liabilities: Operating lease liabilities Other liabilities $ 618 $ 768 |
Schedule of Lease, Cost | The table below summarizes the components of lease costs for the years ended December 31, 2022, 2021 and 2020. Lease Costs Year Ended December 31, 2022 2021 2020 (in millions) Operating lease cost $ 179 $ 173 $ 169 Variable operating lease cost 52 49 49 Sublease income (53) (55) (56) Short-term lease expense — — — Net lease cost $ 178 $ 167 $ 162 Weighted Averages - Remaining Operating Lease Term and Discount Rate December 31, 2022 2021 Weighted-average remaining operating lease term 7 years 7 years Weighted-average discount rate for operating leases 2.77 % 2.80 % Supplemental cash flow information related to leases was as follows: Lease Liabilities Information Year Ended December 31, 2022 2021 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 202 $ 209 $ 210 Non-cash transactions: Leased assets obtained in exchange for new operating lease liabilities $ 46 $ 109 $ 156 |
Schedule of Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2022 are as follows: Maturities of Lease Liabilities December 31, 2022 (in millions) Operating Leases: 2023 $ 186 2024 144 2025 69 2026 61 2027 52 Thereafter 170 Total lease payments 682 Less: Interest (64) Present value of lease liabilities $ 618 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Schedule Of Effect Of Reinsurance | The following table summarizes the effect of reinsurance. The impact of the transactions described above results in a decrease to reinsurance assumed and an increase in reinsurance ceded. Year Ended December 31, 2022 2021 2020 (in millions) Direct premiums $ 1,042 $ 970 $ 929 Reinsurance assumed 180 189 222 Reinsurance ceded (228) (199) (154) Premiums $ 994 $ 960 $ 997 Direct charges and fee income $ 3,932 $ 4,250 $ 4,149 Reinsurance ceded (691) (613) (414) Policy charges and fee income $ 3,241 $ 3,637 $ 3,735 Direct policyholders’ benefits $ 4,371 $ 3,843 $ 5,826 Reinsurance assumed 209 238 241 Reinsurance ceded (1,195) (863) (741) Policyholders’ benefits $ 3,385 $ 3,218 $ 5,326 Direct interest credited to policyholders’ account balances $ 1,433 $ 1,271 $ 1,252 Reinsurance ceded (24) (52) (30) Interest credited to policyholders’ account balances $ 1,409 $ 1,219 $ 1,222 |
Schedule of Ceded Credit Risk | The following table summarizes the ceded reinsurance GMIB reinsurance contracts, third-party recoverables, amount due to reinsurance and assumed reserves. December 31, 2022 2021 (in millions) Ceded Reinsurance: Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives (1) $ 1,229 $ 1,848 Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable (2) 4,114 5,813 Third-party reinsurance recoverables related to insurance contracts 17,201 14,679 Top reinsurers: Venerable Insurance and Annuity Company (A- KBRA (IFRS) rating) 8,966 10,291 First Allmerica-GAF 4,005 RGA Reinsurance Company (AA- S&P rating)) 1,272 1,138 Zurich Life Insurance Company, Ltd. (AA- S&P rating) 1,181 1,318 Ceded group health reserves 47 40 Amount due to reinsurers 1,533 1,381 Top reinsurers: RGA Reinsurance Company 1,171 1,212 First Allmerica-GAF 147 — Protective Life Insurance Company 104 111 Assumed Reinsurance: Reinsurance assumed reserves 662 798 ______________ (1) The estimated fair values increased/(decreased) ($619) million, ($640) million and $349 million for the years ended December 31, 2022, 2021 and 2020, respectively. (2) Reported in amounts due from reinsurers. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable transaction. |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term and Long-term Debt | The following table sets forth the Company’s total consolidated borrowings. Short-term and long-term debt consists of the following: December 31, 2022 2021 (in millions) Short-term debt: CLO short-term debt (5.74%) (1) $ 239 $ 92 Current portion of Long-term debt (2) 520 — Total short-term debt 759 92 Long-term debt: Senior Notes (5.00%, due 2048) 1,481 1,481 Senior Notes (4.35%, due 2028) 1,491 1,490 Senior Notes (3.90%, due 2023) — 519 Senior Debentures, (7.00%, due 2028) 350 349 Total long-term debt 3,322 3,839 Total borrowings $ 4,081 $ 3,931 ______________ (1) CLO Warehousing Debt related to VIE consolidation of CLO investment. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Revenues earned by AB from providing these services were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Investment management and services fees $ 1,453 $ 1,645 $ 1,368 Distribution revenues 591 637 516 Other revenues - shareholder servicing fees 79 86 79 Other revenues - other 8 8 8 Total $ 2,131 $ 2,376 $ 1,971 The table below summarizes the expenses reimbursed to/from the Company and the fees received/paid by the Company in connection with certain services described above for the years ended December 31, 2022, 2021 and 2020. Year Ended December 31, 2022 2021 2020 (in millions) Revenue received or accrued for: Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds (1) $ 708 $ 840 $ 724 Total $ 708 $ 840 $ 724 _______ |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Components of net periodic pension expense for the Company’s qualified and non-qualified plans were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Service cost $ 6 $ 6 $ 6 Interest cost 57 46 77 Expected return on assets (159) (154) (147) Actuarial (gain) loss 1 1 1 Net amortization 65 99 103 Impact of settlement 6 6 7 Net periodic pension expense (benefit) $ (24) $ 4 $ 47 Components of Net Post-Retirement Benefits Costs Year Ended December 31, 2022 2021 2020 (in millions) Service cost $ 2 $ 2 $ 2 Interest cost 10 8 13 Net amortization 6 9 9 Net periodic post-retirement benefits costs $ 18 $ 19 $ 24 Year Ended December 31, 2022 2021 2020 (in millions) Service cost $ 1 $ 1 $ 1 Interest cost — — — Net amortization — — (5) Net (gain) loss — — — Net periodic post-employment benefits costs $ 1 $ 1 $ (4) |
Schedule of Accumulated and Projected Benefit Obligations | Changes in the PBO of the Company’s qualified and non-qualified plans were comprised of: 2022 2021 (in millions) Projected benefit obligation, beginning of year $ 2,900 $ 3,180 Interest cost 57 45 Actuarial (gains)/losses (1) (487) (95) Benefits paid (190) (198) Settlements (26) (32) Projected benefit obligation, end of year $ 2,254 2,900 ______________ (1) Actuarial gains and losses are a product of changes in the discount rate as shown below. The following table discloses the change in plan assets and the funded status of the Company’s qualified pension plans and non-qualified pension plans: 2022 2021 (in millions) Pension plan assets at fair value, beginning of year $ 2,808 $ 2,744 Actual return on plan assets (515) 259 Benefits paid (158) (165) Annuity purchases (25) (30) Pension plan assets at fair value, end of year 2,110 2,808 PBO 2,254 2,900 Excess of PBO over pension plan assets, end of year $ 144 $ 92 Changes in the accumulated benefits obligation of the Company’s post-retirement plans recognized in the accompanying consolidated financial statements are described in the following table: Accumulated Post-Retirement Benefits Obligation December 31, 2022 2021 (in millions) Accumulated post-retirement benefits obligation, beginning of year $ 466 $ 516 Service cost 2 2 Interest cost 10 8 Contributions and benefits paid (20) (28) Actuarial (gains) losses (109) (32) Accumulated post-retirement benefits obligation, end of year $ 349 $ 466 |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | December 31, 2022 2021 (in millions) Projected benefit obligation $ 2,254 $ 2,900 Accumulated benefit obligation $ 2,254 $ 2,900 Fair value of plan assets $ 2,110 $ 2,808 |
Schedule of Net Periodic Benefit Cost Not Yet Recognized | The following table discloses the amounts included in AOCI as of December 31, 2022 and 2021 that have not yet been recognized as components of net periodic pension cost. December 31, 2022 2021 (in millions) Unrecognized net actuarial (gain) loss $ 744 $ 620 Unrecognized prior service cost (credit) (1) (1) Total $ 743 $ 619 December 31, 2022 2021 (in millions) Unrecognized net actuarial (gains) losses $ 17 $ 135 Unrecognized prior service (credit) (24) (26) Total $ (7) $ 109 |
Schedule of Allocation of Plan Assets | The following table discloses the allocation of the fair value of total qualified pension plan assets as of December 31, 2022 and 2021: December 31, 2022 2021 Fixed maturities 46.4 % 47.2 % Equity securities 21.4 29.7 Equity real estate 22.6 16.5 Cash and short-term investments 4.0 2.5 Other 5.6 4.1 Total 100.0 % 100.0 % |
Schedule of Fair Values of Plan Assets Within Fair Value Hierarchy | The following tables disclose the fair values of qualified pension plan assets and their level of observability within the fair value hierarchy as of December 31, 2022 and 2021, respectively. Level 1 Level 2 Total (in millions) December 31, 2022: Fixed Maturities: Corporate $ — $ 619 $ 619 U.S. Treasury, government and agency — 336 336 States and political subdivisions — 8 8 Foreign governments — 15 15 Common equity, REITs and preferred equity 308 59 367 Mutual funds 30 — 30 Collective Trust — 61 61 Cash and cash equivalents 47 — 47 Short-term investments — 34 34 Total Assets at Fair Value 385 1,132 1,517 Investments measured at NAV — — 600 Total Investments at Fair Value $ 385 $ 1,132 $ 2,117 December 31, 2021: Fixed Maturities: Corporate $ — $ 842 $ 842 U.S. Treasury, government and agency — 426 426 States and political subdivisions — 16 16 Foreign governments — 18 18 Common equity, REITs and preferred equity 576 108 684 Mutual funds 62 — 62 Collective Trust — 99 99 Cash and cash equivalents 19 — 19 Short-term investments — 46 46 Total Assets at Fair Value 657 1,555 2,212 Investments measured at NAV — — 593 Total Investments at Fair Value $ 657 $ 1,555 $ 2,805 |
Schedule of Employee Benefit Plan, Practical Expedient | The following table lists investments for which NAV is calculated; NAV is used as a practical expedient to determine the fair value of these investments as of December 31, 2022 and 2021. Practical Expedient Disclosure as of December 31, 2022 and 2021 Investment Fair Value Redemption Frequency (If currently eligible) Redemption Notice Period Unfunded Commitments (in millions) December 31, 2022: Private Equity Fund $ 79 N/A (1) (2) N/A $ 16 Private Real Estate Investment Trust 468 Quarterly One Quarter — Hedge Fund 53 Calendar Quarters (3) Previous Quarter End $ 10 Total (4) $ 600 December 31, 2021: Private Equity Fund $ 72 N/A (1)(2) N/A $ 19 Private Real Estate Investment Trust 457 Quarterly One Quarter — Hedge Fund 65 Calendar Quarters (3) Previous Quarter End $ 5 Total (4) $ 594 _______________ (1) Cannot sell or transfer ownership interest without prior written consent to transfer, and by meeting several criteria (e.g., does not adversely affect other investors). (2) Cannot sell interest in the vehicle without prior written consent of the managing member. (3) March, June, September and December. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The table below presents a reconciliation for all Level 3 fair values of qualified pension plan assets as of December 31, 2022, 2021 and 2020, respectively: Level 3 Instruments Fair Value Measurements Private Real Estate Investment Trusts Other Equity Investments Fixed Maturities (in millions) Balance, January 1, 2022 $ — $ — $ (1) Actual return on plan assets — Sales/Settlements — — (1) Balance, December 31, 2022 $ — $ — $ (2) Balance, January 1, 2021 $ — $ — $ — Actual return on plan assets — Sales/Settlements — — (1) Balance, December 31, 2021 $ — $ — $ (1) Balance, January 1, 2020 $ — $ — $ 1 Actual return on plan assets — Sales/Settlements — — (1) Balance, December 31, 2020 $ — $ — $ — |
Schedule of Assumptions Used | The following table discloses assumptions used to measure the Company’s pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2022 and 2021. December 31, 2022 2021 Discount rates: Equitable Financial QP 5.13% 2.55% Equitable Excess Retirement Plan 5.09% 2.47% MONY Life Retirement Income Security Plan for Employees 5.22% 2.78% AB Qualified Retirement Plan 5.50% 2.55% Other defined benefit plans 4.93%-5.22% 2.05%-2.78% Periodic cost 4.84% - 5.20% 1.18%-2.78% Cash balance interest crediting rate for pre-April 1, 2012 accruals 4.00% 4.00% Cash balance interest crediting rate for post-April 1, 2012 accruals 0.25% 0.50% Rates of compensation increase: Benefit obligation 5.96% 5.97% Periodic cost 6.37% 6.33% Expected long-term rates of return on pension plan assets (periodic cost) 6.25% 6.25% The assumed discount rates for measuring the post-retirement benefit obligations as of December 31, 2022 and 2021 were determined in substantially the same manner as described above for measuring the pension benefit obligations. The following table discloses the range of discrete single equivalent discount rates and related net periodic cost at and for the years ended December 31, 2022 and 2021. December 31, 2022 2021 Discount rates: Benefit obligation 5.07%-5.20% 2.43%-2.72% Periodic cost 2.71%-4.58% 2.34%-2.52% |
Schedule of Health Care Cost Trend Rates | Assumed Healthcare Cost Trend Rates used to Measure the Expected Cost of Benefits December 31, 2022 2021 Following year 5.4% 5.1% Ultimate rate to which cost increase is assumed to decline 3.9% 4.0% Year in which the ultimate trend rate is reached 2096 2094 |
Schedule of Expected Benefit Payments | The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2023, and in the aggregate for the five years thereafter. These estimates are based on the same assumptions used to measure the respective benefit obligations as of December 31, 2022 and include benefits attributable to estimated future employee service. Postretirement Benefits Health Calendar Year Pension Benefits Life Insurance Gross Estimate Payment Estimated Medicare Part D Subsidy Net Estimate Payment (in millions) 2023 $ 210,551 $ — $ — $ — $ — 2024 $ 245,066 $ — $ — $ — $ — 2025 $ 198,657 $ — $ — $ — $ — 2026 $ 188,175 $ — $ — $ — $ — 2027 $ 180,393 $ — $ — $ — $ — 2028 to 2032 $ 2,280,266 $ — $ — $ — $ — |
SHARE-BASED COMPENSATION PROG_2
SHARE-BASED COMPENSATION PROGRAMS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule Of Compensation Costs | Compensation costs for 2022, 2021 and 2020 for share-based payment arrangements as further described herein are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Performance Shares $ 31 $ 17 $ 11 Stock Options 1 — 7 Restricted Stock Units 296 257 234 Total compensation expenses $ 328 $ 274 $ 252 Income Tax Benefit $ 68 $ 58 $ 52 |
Schedule of Stock Option Activity | A summary of activity in the Holdings, AB and AXA option plans during 2022 as follows: Options Outstanding EQH Shares AB Holding Units AXA Ordinary Shares Number Outstanding (in 000’s) Weighted Average Exercise Price Number Outstanding (In 000’s) Weighted Average Exercise Price Number Weighted Options outstanding at January 1, 2022 2,040 $ 21.69 5,774 $ 20.12 874 € 22.39 Options granted — — — — — — Options exercised (73) 18.05 (5,774) 20.12 (181) — Options forfeited, net (24) 22.58 — — (27) — Options expired — — — — — — Options outstanding at December 31, 2022 1,943 $ 21.75 — $ — 666 € 22.95 Aggregate intrinsic value (1) $ 5,895 $ — € — Weighted average remaining contractual term (in years) 6.55 0.00 4.00 Options exercisable at December 31, 2022 1,517 $ 21.45 — $ — 630 € 23.03 Aggregate intrinsic value (1) $ 5,058 $ — € — Weighted average remaining contractual term (in years) 6.41 0.00 3.91 _______________ (1) Aggregate intrinsic value, presented in thousands, is calculated as the excess of the closing market price on December 31, 2022 of the respective underlying shares over the strike prices of the option awards. For awards with strike prices higher than market prices, intrinsic value is shown as zero. A summary of stock option grant assumptions activity in the Company option plans during the years ended December 31, 2022 , 2021, and 2020 follows: EQH Shares (1) 2022 (2) 2021 (2) 2020 Dividend yield —% —% 2.59% Expected volatility —% —% 26.00% Risk-free interest rates —% —% 1.19% Expected life in years — — 6.0 Weighted average fair value per option at grant date $ — $ — $ 4.37 _______________ (1) The expected volatility is based on historical selected peer data, the weighted average expected term is determined by using the simplified method due to lack of sufficient historical data, the expected dividend yield based on Holdings’ expected annualized dividend, and the risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term. |
Schedule Of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes Holdings restricted share units activity for 2022. Shares of Holdings Restricted Stock Units Weighted-Average Grant Date Fair Value Unvested as of January 1, 2022 3,228,733 $ 21.15 Granted 1,340,926 33.28 Forfeited (172,349) 28.39 Vested (1,608,145) 23.03 Unvested as of December 31, 2022 2,789,165 $ 29.46 |
Schedule Of Share-based Compensation, Performance Stock Units Award Activity | The following table summarizes Holdings and AXA performance awards activity for 2022. Shares of Holdings Performance Awards Weighted-Average Grant Date Shares of AXA Performance Awards Weighted-Average Grant Date Unvested as of January 1, 2022 1,217,222 $ 28.93 62,747 $ 21.28 Granted 704,769 33.01 — — Forfeited (107,921) 28.43 — — Vested (486,475) 23.89 (62,747) 21.28 Unvested as of December 31, 2022 1,327,595 $ 32.98 — $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (benefit) | A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows: Year Ended December 31, 2022 2021 2020 (in millions) Income tax (expense) benefit: Current (expense) benefit $ (5) $ (129) $ (5) Deferred (expense) benefit (494) 274 749 Total $ (499) $ 145 $ 744 |
Schedule Of Effective Income Tax Rate Reconciliation | The sources of the difference and their tax effects are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Expected income tax (expense) benefit $ (531) $ 36 $ 229 Noncontrolling interest 40 69 50 Non-taxable investment income 53 80 92 Tax audit interest (13) (14) (8) State income taxes (63) (47) (38) Tax settlements/uncertain tax position release — — 398 Tax credits 22 28 21 Other (7) (7) — Income tax (expense) benefit $ (499) $ 145 $ 744 |
Schedule Of Net Deferred Income Taxes | The components of the net deferred income taxes are as follows: December 31, 2022 2021 Assets Liabilities Assets Liabilities (in millions) Compensation and related benefits $ 226 $ — $ 273 $ — Net operating loss and credits 240 — 699 — Reserves and reinsurance 1,607 — 2,281 — DAC — 1,405 — 874 Unrealized investment gains/losses 2,012 — — 965 Investments — 235 — 794 Other 92 — — 76 Valuation allowance (1,570) — — — Total $ 2,607 $ 1,640 $ 3,253 $ 2,709 |
Schedule of Unrecognized Tax Benefits Reconciliation | A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows: 2022 2021 2020 (in millions) Balance at January 1, $ 323 $ 316 $ 501 Additions for tax positions of prior years (9) 11 241 Reductions for tax positions of prior years — (4) (382) Additions for tax positions of current year — — — Settlements with tax authorities — — (44) Balance at December 31, $ 314 $ 323 $ 316 Unrecognized tax benefits that, if recognized, would impact the effective rate $ 58 $ 67 $ 77 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Activity of Funding Agreements | The table below summarizes the Company’s activity of funding agreements with the FHLB. Change in FHLB Funding Agreements during the Year Ended December 31, 2022 Outstanding Balance at December 31, 2021 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Outstanding Balance at December 31, 2022 (in millions) Short-term funding agreements: Due in one year or less $ 5,353 $ 54,316 $ (53,790) $ 251 $ — $ 6,130 Long-term funding agreements: Due in years two through five 1,290 640 — (251) — 1,679 Due in more than five years — 692 — — — 692 Total long-term funding agreements 1,290 1,332 — (251) — 2,371 Total funding agreements (1) $ 6,643 $ 55,648 $ (53,790) $ — $ — $ 8,501 _____________ (1) The $4 million and $4 million difference between the funding agreements carrying value shown in fair value table for December 31, 2022 and 2021, respectively, reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. Change in FABN Funding Agreements during the Year Ended December 31, 2022 Outstanding Balance at December 31, 2021 Issued During the Period Repaid During the Period Long-term Agreements Maturing Within One Year Long-term Agreements Maturing Within Five Years Foreign Currency Transaction Adjustment Outstanding Balance at December 31, (in millions) Short-term funding agreements: Due in one year or less $ — $ — $ — $ 1,500 $ — $ — $ 1,500 Long-term funding agreements: Due in years two through five 4,600 400 — (1,500) 500 — 4,000 Due in more than five years 2,119 — — — (500) (34) 1,585 Total long-term funding agreements 6,719 400 — (1,500) — (34) 5,585 Total funding agreements (1) $ 6,719 $ 400 $ — $ — $ — $ (34) $ 7,085 _____________ (1) The $66 million and $70 million difference between the funding agreements notional value shown and carrying value table as of December 31, 2022 and 2021, respectively, reflects the remaining amortization of the issuance cost of the funding agreements and the foreign currency transaction adjustment. |
INSURANCE GROUP STATUTORY FIN_2
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Schedule of Combined Statutory Financial Information | 2022 2021 2020 (in millions) Years Ended December 31, Combined statutory net income (loss) (1) (2) $ 148 $ (936) $ 396 As of December 31, Combined surplus, capital stock and AVR $ 7,125 $ 6,864 Combined securities on deposits in accordance with various government and state regulations $ 17 $ 65 _____________ (1) For 2021, excludes CS Life which was sold June 1, 2021. (2) For 2020, excludes USFL which was sold April 1, 2020. |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to net income (loss) attributable to Holdings for the years ended December 31, 2022, 2021 and 2020, respectively: Year Ended December 31, 2022 2021 2020 (in millions) Net income (loss) attributable to Holdings $ 1,785 $ (439) $ (648) Adjustments related to: Variable annuity product features (1) (1,315) 4,145 3,912 Investment (gains) losses 945 (867) (744) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 82 120 109 Other adjustments (2) (3) (4) (5) 552 717 952 Income tax expense (benefit) related to above adjustments (6) (56) (864) (888) Year Ended December 31, 2022 2021 2020 (in millions) Non-recurring tax items (7) 16 13 (391) Non-GAAP Operating Earnings $ 2,009 $ 2,825 $ 2,302 Operating earnings (loss) by segment: Individual Retirement $ 1,140 $ 1,444 $ 1,536 Group Retirement $ 525 $ 631 $ 491 Investment Management and Research $ 424 $ 564 $ 432 Protection Solutions $ 179 $ 317 $ 146 Corporate and Other (8) $ (259) $ (131) $ (303) ______________ (1) Includes COVID-19 impact on variable annuity product features due to a first quarter 2020 assumption update of $1.5 billion and other COVID-19 related impacts of $35 million for the year ended December 31, 2020. (2) Includes COVID-19 impact on other adjustments due to a first quarter 2020 assumption update of $1.0 billion and other COVID-19 related impacts of $86 million for the year ended December 31, 2020. (3) Includes separation costs of $82 million and $108 million for the for the years ended December 31, 2021 and 2020, respectively. Separation costs were completed during 2021. (4) Includes certain gross legal expenses related to the COI litigation and claims related to a commercial relationship of $218 million and $207 million for the years ended December 31, 2022 and 2021, respectively. Includes policyholder benefit costs of $75 million for the years ended December 31, 2022 stemming from a deal to repurchase UL policies from one entity that had invested in numerous policies purchased in the life settlement market. No adjustments were made for years ended December 31, 2020 operating earnings as the impact was immaterial. (5) Includes Non-GMxB related derivative hedge gains and losses of ($34) million, $65 million and ($404) million for the years ended December 31, 2022, 2021 and 2020, respectively. (6) Includes income taxes of $(554) million for the above COVID-19 items for the year ended December 31, 2020. (7) Prior year includes a reduction in the reserve for uncertain tax positions resulting from the completion of an IRS examination in the year ended December 31, 2020. (8) Includes interest expense and financing fees of $205 million, $241 million and $218 million for the years ended December 31, 2022, 2021 and 2020, respectively. The table below presents segment revenues for the years ended December 31, 2022, 2021 and 2020. Year Ended December 31, 2022 2021 2020 (in millions) Segment revenues: Individual Retirement (1) $ 3,920 $ 3,785 $ 4,311 Group Retirement (1) 1,173 1,372 1,148 Investment Management and Research (2) 4,105 4,430 3,703 Protection Solutions (1) 3,302 3,358 3,144 Corporate and Other (1) 1,488 1,563 1,207 Adjustments related to: Variable annuity product features 1,123 (4,268) (2,284) Investment gains (losses), net (945) 867 744 Other adjustments to segment revenues (3) (149) (71) 442 Total revenues $ 14,017 $ 11,036 $ 12,415 ______________ (1) Includes investment expenses charged by AB of $95 million, $128 million and $71 million for the years ended December 31, 2022, 2021 and 2020, respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of $134 million, $126 million and $113 million for the years ended December 31, 2022, 2021 and 2020, respectively, are included in segment revenues of the Investment Management and Research segment. (3) Includes COVID-19 impact on other adjustments due to an assumption update of $46 million and other COVID-19 related impacts of ($30) million for the year ended December 31, 2020. The table below presents total assets by segment as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 (in millions) Total assets by segment: Individual Retirement $ 125,588 $ 143,663 Group Retirement 42,656 55,368 Investment Management and Research 12,633 11,602 Protection Solutions 37,730 50,686 Corporate and Other 34,861 30,943 Total assets $ 253,468 $ 292,262 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred stock authorized, issued and outstanding was as follows: December 31, 2022 December 31, 2021 Series Shares Authorized Shares Shares Outstanding Shares Authorized Shares Shares Outstanding Series A 32,000 32,000 32,000 32,000 32,000 32,000 Series B 20,000 20,000 20,000 20,000 20,000 20,000 Series C 12,000 12,000 12,000 12,000 12,000 12,000 Total 64,000 64,000 64,000 64,000 64,000 64,000 |
Schedule of Dividends Declared | Dividends declared per share were as follows for the periods indicated: Year ended December 31, 2022 2021 2020 Series A dividends declared $ 1,313 $ 1,313 $ 1,378 Series B dividends declared $ 1,238 $ 1,238 $ 426 Series C dividends declared $ 1,075 $ 1,006 $ — Year Ended December 31, 2022 2021 2020 Dividends declared $ 0.78 $ 0.71 $ 0.66 |
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of December 31, 2022, and 2021 follow: December 31, 2022 2021 (in millions) Unrealized gains (losses) on investments $ (8,142) $ 2,684 Defined benefit pension plans (651) (669) Foreign currency translation adjustments (91) (45) Total accumulated other comprehensive income (loss) (8,884) 1,970 Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest (50) (34) Accumulated other comprehensive income (loss) attributable to Holdings $ (8,834) $ 2,004 |
Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the years ended December 31, 2022, 2021 and 2020 follow: Year Ended December 31, 2022 2021 2020 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period (1) $ (13,637) $ (2,467) $ 4,887 (Gains) losses reclassified into net income (loss) during the period (2) 685 (698) (653) Net unrealized gains (losses) on investments (12,952) (3,165) 4,234 Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 2,126 1,052 (1,278) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of ($891), ($562), and $786) (10,826) (2,113) 2,956 Change in defined benefit plans: Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (3) 18 266 48 Change in defined benefit plans (net of deferred income tax expense (benefit) of ($1), $68, and $14) 18 266 48 Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period (46) (11) 22 (Gains) losses reclassified into net income (loss) during the period — — — Foreign currency translation adjustment (46) (11) 22 Total other comprehensive income (loss), net of income taxes (10,854) (1,858) 3,026 Less: Other comprehensive income (loss) attributable to noncontrolling interest (16) 1 7 Other comprehensive income (loss) attributable to Holdings $ (10,838) $ (1,859) $ 3,019 ______________ (1) For 2022, unrealized gains (losses) arising during the period is presented net of a valuation allowance of $1.6 billion established during the fourth quarter of 2022. The Company established the valuation allowance against its deferred tax assets related to unrealized capital losses in the available for sale securities portfolio. See Note 16 of the Notes to these Consolidated Financial Statements for details on the valuation allowance. (2) See “reclassification adjustments” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of ($182) million, $186 million, and ($174) million for the years ended December 31, 2022, 2021 and 2020, respectively. (3) These AOCI components are included in the computation of net periodic costs. See Note 14 of the Notes to these Consolidated Financial Statement. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of net income (loss) and weighted-average common shares used in calculating basic and diluted EPS for the periods indicated: Year Ended December 31, 2022 2021 2020 (in millions) Weighted-average common shares outstanding: Weighted-average common shares outstanding — basic 377.6 417.4 450.4 Effect of dilutive securities: Employee share awards (1) 2.3 — — Weighted-average common shares outstanding — diluted (2) 379.9 417.4 450.4 Net income (loss): Net income (loss) $ 2,026 $ (24) $ (349) Less: Net income (loss) attributable to the noncontrolling interest 241 415 299 Net income (loss) attributable to Holdings 1,785 (439) (648) Less: Preferred stock dividends 80 79 53 Net income (loss) available to Holdings’ common shareholders $ 1,705 $ (518) $ (701) EPS: Basic $ 4.52 $ (1.24) $ (1.56) Diluted $ 4.49 $ (1.24) $ (1.56) _____________ (1) Calculated using the treasury stock method. (2) Due to net loss for the years ended December 31, 2021 and 2020, approximately 3.8 million and 1.7 million shares were excluded from the diluted EPS calculation. |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The changes in the components of redeemable noncontrolling interests are presented in the table that follows: Year Ended December 31, 2022 2021 2020 (in millions) Balance, beginning of period $ 468 $ 143 $ 365 Net earnings (loss) attributable to redeemable noncontrolling interests (59) 5 (3) Purchase/change of redeemable noncontrolling interests 46 320 (219) Balance, end of period $ 455 $ 468 $ 143 |
HELD-FOR-SALE (Tables)
HELD-FOR-SALE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets And Liabilities Held-for-sale | The following table summarizes the assets and liabilities classified as held-for-sale as of December 31, 2022 on the Company’s consolidated balance sheet: December 31, 2022 (1) (in millions) Cash and cash equivalents $ 159 Broker-dealer related receivables 74 Trading securities, at fair value 25 Goodwill and other intangible assets ,net 175 Other assets (2) 129 Total assets held-for-sale 562 Broker-dealer related payables 33 Customers related payables 10 Other liabilities 65 Total liabilities held-for-sale $ 108 ____________ (1) The assets and liabilities classified as held-for-sale are reported within our Investment Management & Research segment. (2) Other assets includes a valuation adjustment of ($7) million. |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) shares in Millions | 12 Months Ended | ||||||
Nov. 01, 2022 USD ($) shares | Oct. 03, 2022 USD ($) | Jul. 01, 2022 USD ($) shares | Jun. 01, 2021 USD ($) | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Organization Basis Of Presentation [Line Items] | |||||||
Assets | $ 253,468,000,000 | $ 292,262,000,000 | |||||
Number of reportable segments | segment | 4 | ||||||
AB units fair value | $ 293,000,000 | $ 494,000,000 | |||||
Massachusetts Domiciled Insurance Company | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Guaranteed credit rate (as a percent) | 3% | ||||||
Guaranteed credit amount of general account assets | $ 4,000,000,000 | ||||||
Reinsurance, guaranteed credit amount of separate account assets | 5,000,000,000 | ||||||
Number of Employees, Total | Reinsurance Transaction | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Deferred variable annuity | $ 360,000 | ||||||
Number of Employees, Total | Reinsurance Transaction | Massachusetts Domiciled Insurance Company | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Concentration risk, percentage | 50% | ||||||
Corporate Solutions Life Reinsurance Company (CS Life) | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Ownership percentage acquired | 100% | ||||||
Alliance Bernstein (AB) | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Economic interest | 61% | 65% | |||||
AB units issued (in shares) | shares | 12.1 | 3.2 | |||||
AB units fair value | $ 456,000,000 | $ 133,000,000 | |||||
Contingent payment arrangements | $ 229,000,000 | ||||||
Performance obligation period | 6 years | ||||||
Alliance Bernstein (AB) | Corporate Solutions Life Reinsurance Company (CS Life) | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Assets | $ 2,800,000,000 | $ 9,500,000,000 | |||||
Direct insurance liabilities ceded | $ 4,100,000,000 | 9,600,000,000 | |||||
Fair value | 5,300,000,000 | ||||||
Separate account, liability, ceded | 16,900,000,000 | ||||||
Alliance Bernstein (AB) | Corporate Solutions Life Reinsurance Company (CS Life) | GMxB derivative features’ liability | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Fair value | 1,200,000,000 | ||||||
Separate account, liability, ceded | 5,300,000,000 | ||||||
Alliance Bernstein (AB) | CarVal | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Ownership percentage acquired | 100% | ||||||
Venerable Insurance and Annuity Company (VAIC) | Equitable Financial Life Insurance Company (EFLIC) | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Surplus notes | 60,000,000 | ||||||
Venerable Insurance and Annuity Company (VAIC) | Corporate Solutions Life Reinsurance Company (CS Life) | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Business combination, consideration transferred | $ 215,000,000 | ||||||
Equitable Investment Management Group, LLC (EIMG) | VA Capital Company LLC | |||||||
Organization Basis Of Presentation [Line Items] | |||||||
Ownership percentage acquired | 9.09% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - New Accounting Pronouncements and Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net income (loss) | $ 1,785 | $ (439) | $ (648) | |
Retained earnings (accumulated deficit) | (9,924) | (8,880) | ||
Accumulated other comprehensive income (loss) | $ 8,834 | (2,004) | ||
Interest rate assumption percentage | 2.25% | |||
Revision of Prior Period, Change in Accounting Principle, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity decrease | $ 3,300 | 1,100 | ||
Net income (loss) | 2,200 | |||
As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net income (loss) | $ (440) |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Amortization Policy (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Average annual rate of return, gross | 7% |
Average annual rate of return, net | 4.90% |
Future annual rate of return, gross, maximum | 15% |
Future annual rate of return, net, maximum | 12.90% |
Future annual rate of return, gross, minimum | 0% |
Future annual rate of return, net, minimum | (2.10%) |
Future annual rate of return assumption duration maximum | 5 years |
Assumed average investment yield excluding policy loans, high end | 4.40% |
Assumed average investment yield excluding policy loans, low end | 4.30% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Policyholders' Account Balances and Future Policy Benefits and Various Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Percentage of life insurance liabilities calculate within traditional life interest rate range | 99.50% | ||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Computer software and hosting arrangements | $ 224 | $ 193 | |
Amortization of computer software and hosting arrangements | $ 45 | 57 | $ 60 |
US Fund Shares Deferred Sales Commissions, Net | |||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Capitalized contract cost, amortization period | 5 years 6 months | ||
Non-US Fund Shares Deferred Sales Commissions, Net | |||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Capitalized contract cost, amortization period | 4 years | ||
Alliance Bernstein | Deferred Sales Commissions | |||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Gross carrying amount of AllianceBernstein related intangible assets | $ 52 | $ 75 | |
Amortization expense, year two | 29 | ||
Amortization expense, year three | 18 | ||
Amortization expense, year four | $ 5 | ||
Minimum | Life Insurance Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for future policy benefits, interest rate | 3.50% | ||
Minimum | Annuity Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 1.50% | ||
Minimum | Computer Software, Intangible Asset | |||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Intangible asset useful life | 3 years | ||
Minimum | Alliance Bernstein | |||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Intangible asset useful life | 6 years | ||
Maximum | Life Insurance Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for future policy benefits, interest rate | 7.30% | ||
Maximum | Annuity Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 5.40% | ||
Maximum | Computer Software, Intangible Asset | |||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Intangible asset useful life | 5 years | ||
Maximum | Alliance Bernstein | |||
Capitalized Computer Software and Hosting Arrangements [Abstract] | |||
Intangible asset useful life | 20 years | ||
Weighted Average | Life Insurance Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for future policy benefits, interest rate | 5% | ||
Weighted Average | Annuity Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 3.60% |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | |
Unincorporated business tax (UBT) rate, percent | 4% |
AB Holding | |
Income Tax Contingency [Line Items] | |
Tax rate | 3.50% |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Variable Interest Entity [Line Items] | |||||||
Investments | $ 93,097 | $ 105,111 | |||||
Fixed maturities, at fair value using the fair value option | [1] | 1,508 | 1,641 | ||||
Notes issued by consolidated variable interest entity, fair value option | [1] | 1,150 | 1,191 | ||||
Unpaid outstanding balance and short-term borrowing | 1,400 | 1,300 | |||||
Assets | 253,468 | 292,262 | |||||
Liabilities | 249,615 | 278,699 | |||||
Redeemable non-controlling interest | 455 | [1],[2] | 468 | [1],[2] | $ 143 | $ 365 | |
Consolidated Variable Interest Entities | CLO Warehouse Debt | |||||||
Variable Interest Entity [Line Items] | |||||||
Investments | 85 | 109 | |||||
Investment assets, special purpose entity | 76 | ||||||
Consolidated Limited Partnerships | |||||||
Variable Interest Entity [Line Items] | |||||||
Assets | 644 | 219 | |||||
Non-consolidated Vairable Interest Entities | |||||||
Variable Interest Entity [Line Items] | |||||||
Investments | 2,400 | 2,100 | |||||
Assets | 282,500 | 245,600 | |||||
Variable interest entity, maximum loss exposure | 2,400 | 2,100 | |||||
Variable interest entity, unfunded commitments | 1,300 | 1,200 | |||||
Non-consolidated Vairable Interest Entities | AB-Sponsored Investment Funds | |||||||
Variable Interest Entity [Line Items] | |||||||
Assets | 46,400 | 68,900 | |||||
Non-consolidated Vairable Interest Entities | AB-Sponsored Investment Funds | |||||||
Variable Interest Entity [Line Items] | |||||||
Variable interest entity, maximum loss exposure | 6 | 9 | |||||
Consolidated Entity | AB-Sponsored Investment Funds | |||||||
Variable Interest Entity [Line Items] | |||||||
Assets | 581 | 734 | |||||
Liabilities | 56 | 87 | |||||
Redeemable non-controlling interest | $ 369 | $ 421 | |||||
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.[2]See Note 22 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest.(3) Represents the fair value of the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction and Note 8 of the Notes to these Consolidated Financial Statements. |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Assumption Updates (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Change in Accounting Estimate [Line Items] | ||||
Policy charges and fee income | $ 3,241 | $ 3,637 | $ 3,735 | |
Policyholders’ benefits | 3,385 | 3,218 | 5,326 | |
Net derivative gains (losses) | 1,696 | (4,465) | (1,722) | |
Amortization of deferred policy acquisition costs, net | 542 | 393 | 1,613 | |
Income (loss) from continuing operation, before income taxes | 2,525 | (169) | (1,093) | |
Net income (loss) | 2,026 | (24) | (349) | |
5-year Historical Average Over A 10-year Period | ||||
Change in Accounting Estimate [Line Items] | ||||
Interest rate assumptions | 2.25% | |||
Long-term Lapses, Partial Withdrawal Rates and Election Assumptions Updates | ||||
Change in Accounting Estimate [Line Items] | ||||
Policy charges and fee income | (23) | (28) | 23 | |
Policyholders’ benefits | (243) | (62) | (1,600) | |
Net derivative gains (losses) | 80 | (200) | 112 | |
Increased interest credited | (1) | 1 | ||
Amortization of deferred policy acquisition costs, net | (43) | (58) | 1,100 | |
Income (loss) from continuing operation, before income taxes | 182 | (108) | (2,600) | |
Net income (loss) | $ 144 | $ (85) | (2,000) | |
Economic Scenario Generator | ||||
Change in Accounting Estimate [Line Items] | ||||
Income (loss) from continuing operation, before income taxes | 201 | |||
Net income (loss) | $ 159 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) issue | Dec. 31, 2021 USD ($) issue | Dec. 31, 2022 USD ($) issue | Dec. 31, 2021 USD ($) issue | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Net Investment Income [Line Items] | ||||||
Number of positions in unrealized loss position | issue | 5,209 | 2,060 | 5,209 | 2,060 | ||
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.80% | 0.80% | ||||
Fixed maturities available-for-sale, amortized cost | $ 72,991,000,000 | $ 73,429,000,000 | $ 72,991,000,000 | $ 73,429,000,000 | ||
Gross unrealized losses | 5,295,000,000 | 91,000,000 | 5,295,000,000 | 91,000,000 | ||
Allowance for credit losses | 129,000,000 | 62,000,000 | 129,000,000 | 62,000,000 | $ 81,000,000 | |
Non-accruing loans, carrying value | 14,000,000 | 14,000,000 | ||||
Net of allowances | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | ||
Separate account equity investment carrying value | 39,000,000 | 45,000,000 | 39,000,000 | 45,000,000 | ||
Interest credited to policyholders account balances participating group annuity contracts | 1,000,000 | 2,000,000 | 2,000,000 | |||
Fixed maturities | ||||||
Net Investment Income [Line Items] | ||||||
Accrued investment income receivable | 591,000,000 | 506,000,000 | 591,000,000 | 506,000,000 | ||
Accrued interest, written off | 0 | 0 | 0 | 0 | ||
Fixed maturities available-for-sale, amortized cost | 73,000,000,000 | 73,400,000,000 | 73,000,000,000 | 73,400,000,000 | ||
Corporate | ||||||
Net Investment Income [Line Items] | ||||||
Exposure in single issuer of total investments | $ 327,000,000 | $ 322,000,000 | $ 327,000,000 | $ 322,000,000 | ||
Debt securities exposure in single issuer of total investments, percentage | 9.60% | 2.50% | 9.60% | 2.50% | ||
Fixed maturities available-for-sale, amortized cost | $ 50,712,000,000 | $ 50,172,000,000 | $ 50,712,000,000 | $ 50,172,000,000 | ||
Gross unrealized losses | 4,536,000,000 | 75,000,000 | 4,536,000,000 | 75,000,000 | ||
Commercial Mortgage Loans | ||||||
Net Investment Income [Line Items] | ||||||
Accrued investment income receivable | 71,000,000 | 57,000,000 | 71,000,000 | 57,000,000 | ||
Accrued interest, written off | 0 | 0 | ||||
Allowance for credit losses | 123,000,000 | 57,000,000 | 123,000,000 | 57,000,000 | 77,000,000 | $ 33,000,000 |
Non-accruing loans, carrying value | 14,000,000 | 14,000,000 | ||||
Agricultural Mortgage Loans | ||||||
Net Investment Income [Line Items] | ||||||
Accrued investment income receivable | 71,000,000 | 57,000,000 | 71,000,000 | 57,000,000 | ||
Accrued interest, written off | 0 | 0 | ||||
Allowance for credit losses | 6,000,000 | 5,000,000 | 6,000,000 | 5,000,000 | $ 4,000,000 | $ 3,000,000 |
Individually Assessed Mortgage Loans | ||||||
Net Investment Income [Line Items] | ||||||
Mortgage loans foreclosure probable | 0 | 0 | ||||
Allowance for credit losses | 0 | 0 | ||||
Recurring | ||||||
Net Investment Income [Line Items] | ||||||
Investment gains (losses), net | 677,000,000 | 631,000,000 | 677,000,000 | 631,000,000 | ||
Other Than Investment Grade | Non-Investment Grade | Fixed maturities | ||||||
Net Investment Income [Line Items] | ||||||
Available-for-sale securities, amortized cost basis other than investment grade | $ 2,900,000,000 | $ 2,900,000,000 | $ 2,900,000,000 | $ 2,900,000,000 | ||
Percentage of available for sale securities | 4% | 3.90% | 4% | 3.90% | ||
Unrealized loss on available for sale securities | $ 208,000,000 | $ 18,000,000 | $ 208,000,000 | $ 18,000,000 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 72,991 | $ 73,429 | |
Allowance for Credit Losses | 24 | 22 | |
Gross Unrealized Gains | 106 | 5,125 | |
Gross Unrealized Losses | 9,712 | 316 | |
Fair Value | 63,361 | 78,216 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Due in one year or less | 1,858 | ||
Due in years two through five | 15,031 | ||
Due in years six through ten | 16,281 | ||
Due after ten years | 26,166 | ||
Subtotal | 59,336 | ||
Amortized cost | 72,967 | ||
Fair Value | |||
Due in one year or less | 1,834 | ||
Due in years two through five | 14,222 | ||
Due in years six through ten | 14,433 | ||
Due after ten years | 20,282 | ||
Subtotal | 50,771 | ||
Fair Value | 63,361 | 78,216 | |
Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments | |||
Proceeds from sales | 11,932 | 27,363 | $ 12,903 |
Gross gains on sales | 45 | 1,152 | 862 |
Gross losses on sales | (663) | (195) | (41) |
Net (increase) decrease in Allowance for Credit and Intent to Sell losses | 247 | 16 | 13 |
Fixed Maturities - Credit Loss Impairments | |||
Balance, beginning of period | 44 | 32 | 21 |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 263 | 4 | 2 |
Recognized impairments on securities impaired to fair value this period | 246 | 0 | 0 |
Credit losses recognized this period on securities for which credit losses were not previously recognized | 0 | 9 | 6 |
Additional credit losses this period on securities previously impaired | 9 | 7 | 7 |
Increases due to passage of time on previously recorded credit losses | 0 | 0 | 0 |
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) | 0 | 0 | 0 |
Balance, end of period | 36 | 44 | $ 32 |
Global Atlantic Transaction | |||
Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments | |||
Net (increase) decrease in Allowance for Credit and Intent to Sell losses | (245) | ||
Corporate | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 50,712 | 50,172 | |
Allowance for Credit Losses | 24 | 22 | |
Gross Unrealized Gains | 89 | 2,601 | |
Gross Unrealized Losses | 7,206 | 240 | |
Fair Value | 43,571 | 52,511 | |
Fair Value | |||
Fair Value | 43,571 | 52,511 | |
U.S. government, agencies and authorities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 7,054 | 13,056 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 1 | 2,344 | |
Gross Unrealized Losses | 1,218 | 15 | |
Fair Value | 5,837 | 15,385 | |
Fair Value | |||
Fair Value | 5,837 | 15,385 | |
States and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 609 | 586 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 7 | 78 | |
Gross Unrealized Losses | 89 | 2 | |
Fair Value | 527 | 662 | |
Fair Value | |||
Fair Value | 527 | 662 | |
Foreign governments | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 985 | 1,124 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 2 | 42 | |
Gross Unrealized Losses | 151 | 14 | |
Fair Value | 836 | 1,152 | |
Fair Value | |||
Fair Value | 836 | 1,152 | |
Residential Mortgage-Backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 908 | 90 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 1 | 8 | |
Gross Unrealized Losses | 87 | 0 | |
Fair Value | 822 | 98 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 908 | ||
Fair Value | |||
Without single maturity date | 822 | ||
Fair Value | 822 | 98 | |
Asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 8,859 | 5,933 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 4 | 21 | |
Gross Unrealized Losses | 373 | 20 | |
Fair Value | 8,490 | 5,934 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 8,859 | ||
Fair Value | |||
Without single maturity date | 8,490 | ||
Fair Value | 8,490 | 5,934 | |
Commercial mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3,823 | 2,427 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 0 | 19 | |
Gross Unrealized Losses | 588 | 25 | |
Fair Value | 3,235 | 2,421 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 3,823 | ||
Fair Value | |||
Without single maturity date | 3,235 | ||
Fair Value | 3,235 | 2,421 | |
Redeemable preferred stock | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 41 | 41 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 2 | 12 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 43 | 53 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 41 | ||
Fair Value | |||
Without single maturity date | 43 | ||
Fair Value | $ 43 | $ 53 |
INVESTMENTS - Net Unrealized Ga
INVESTMENTS - Net Unrealized Gain (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | $ 13,095 | $ 17,177 | $ 15,047 |
End of year | 3,398 | 13,095 | 17,177 |
Valuation allowance | 1,570 | ||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Net Unrealized Gains (Losses) on Investments | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | 4,809 | 8,811 | 3,453 |
Net investment gains (losses) arising during the period | (15,275) | (3,122) | 6,192 |
Included in net income (loss) | 867 | (846) | (828) |
Other | 0 | (33) | |
Impact of net unrealized investment gains (losses) | 0 | 0 | 0 |
End of year | (9,606) | 4,809 | 8,811 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | DAC | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (782) | (1,548) | (894) |
Impact of net unrealized investment gains (losses) | 2,366 | 767 | (655) |
End of year | 1,585 | (782) | (1,548) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (418) | (1,065) | (189) |
Impact of net unrealized investment gains (losses) | 96 | 648 | (877) |
End of year | (322) | (418) | (1,065) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability) | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (757) | (1,302) | (497) |
Other | (1,569) | ||
Impact of net unrealized investment gains (losses) | 2,508 | 544 | (806) |
End of year | 183 | (757) | (1,302) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | 2,852 | 4,896 | 1,873 |
Net investment gains (losses) arising during the period | (15,275) | (3,122) | 6,192 |
Included in net income (loss) | 867 | (846) | (828) |
Other | (1,569) | (33) | |
Impact of net unrealized investment gains (losses) | 4,970 | 1,959 | (2,338) |
End of year | (8,160) | 2,852 | 4,896 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net Unrealized Gains (Losses) On Investments Excluding Credit Losses | Net Unrealized Gains (Losses) on Investments | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | 4,810 | 8,817 | |
End of year | (9,599) | 4,810 | 8,817 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net Unrealized Gains (Losses) On Investments Excluding Credit Losses | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | 2,854 | 4,899 | |
End of year | (8,155) | 2,854 | 4,899 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net Unrealized Gains (Losses) On Investments Including Credit Losses | Net Unrealized Gains (Losses) on Investments | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (1) | (6) | |
End of year | (7) | (1) | (6) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net Unrealized Gains (Losses) On Investments Including Credit Losses | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (2) | (3) | |
End of year | (5) | (2) | (3) |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net Unrealized Gains (Losses) On Investments Excluding Credit Losses | DAC | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (781) | (1,549) | |
End of year | 1,584 | (781) | (1,549) |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net Unrealized Gains (Losses) On Investments Excluding Credit Losses | Policyholders’ Liabilities | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (417) | (1,066) | |
End of year | (322) | (417) | (1,066) |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net Unrealized Gains (Losses) On Investments Excluding Credit Losses | Deferred Income Tax Asset (Liability) | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (758) | (1,303) | |
End of year | 182 | (758) | (1,303) |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net Unrealized Gains (Losses) On Investments Including Credit Losses | DAC | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (1) | 1 | |
End of year | 1 | (1) | 1 |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net Unrealized Gains (Losses) On Investments Including Credit Losses | Policyholders’ Liabilities | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | (1) | 1 | |
End of year | 0 | (1) | 1 |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Net Unrealized Gains (Losses) On Investments Including Credit Losses | Deferred Income Tax Asset (Liability) | |||
Debt Securities, Available-for-sale, Net Unrealized Investments [Roll Forward] | |||
Beginning of year | 1 | 1 | |
End of year | $ 1 | $ 1 | $ 1 |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | $ 39,169 | $ 17,425 |
Less than 12 Months, Gross Unrealized Losses | 4,415 | 223 |
12 Months or Longer, Fair Value | 20,816 | 1,975 |
12 Months or Longer, Gross Unrealized Losses | 5,295 | 91 |
Total Fair Value | 59,985 | 19,400 |
Total Gross Unrealized Losses | 9,710 | 314 |
Corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 24,580 | 10,571 |
Less than 12 Months, Gross Unrealized Losses | 2,668 | 163 |
12 Months or Longer, Fair Value | 16,534 | 1,633 |
12 Months or Longer, Gross Unrealized Losses | 4,536 | 75 |
Total Fair Value | 41,114 | 12,204 |
Total Gross Unrealized Losses | 7,204 | 238 |
U.S. government, agencies and authorities | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 5,564 | 993 |
Less than 12 Months, Gross Unrealized Losses | 1,200 | 11 |
12 Months or Longer, Fair Value | 204 | 105 |
12 Months or Longer, Gross Unrealized Losses | 18 | 4 |
Total Fair Value | 5,768 | 1,098 |
Total Gross Unrealized Losses | 1,218 | 15 |
States and political subdivisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 130 | 120 |
Less than 12 Months, Gross Unrealized Losses | 25 | 2 |
12 Months or Longer, Fair Value | 173 | 11 |
12 Months or Longer, Gross Unrealized Losses | 64 | 0 |
Total Fair Value | 303 | 131 |
Total Gross Unrealized Losses | 89 | 2 |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 349 | 349 |
Less than 12 Months, Gross Unrealized Losses | 42 | 6 |
12 Months or Longer, Fair Value | 417 | 92 |
12 Months or Longer, Gross Unrealized Losses | 109 | 8 |
Total Fair Value | 766 | 441 |
Total Gross Unrealized Losses | 151 | 14 |
RMBS | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 671 | 0 |
Less than 12 Months, Gross Unrealized Losses | 49 | 0 |
12 Months or Longer, Fair Value | 83 | 0 |
12 Months or Longer, Gross Unrealized Losses | 38 | 0 |
Total Fair Value | 754 | 0 |
Total Gross Unrealized Losses | 87 | 0 |
Asset-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 6,298 | 3,865 |
Less than 12 Months, Gross Unrealized Losses | 230 | 20 |
12 Months or Longer, Fair Value | 1,765 | 38 |
12 Months or Longer, Gross Unrealized Losses | 143 | 0 |
Total Fair Value | 8,063 | 3,903 |
Total Gross Unrealized Losses | 373 | 20 |
Commercial mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 1,577 | 1,527 |
Less than 12 Months, Gross Unrealized Losses | 201 | 21 |
12 Months or Longer, Fair Value | 1,640 | 96 |
12 Months or Longer, Gross Unrealized Losses | 387 | 4 |
Total Fair Value | 3,217 | 1,623 |
Total Gross Unrealized Losses | $ 588 | $ 25 |
INVESTMENTS - Mortgage Loans (D
INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | $ 62 | $ 81 | |
Balance, end of period | 129 | 62 | $ 81 |
Commercial Mortgage Loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 57 | 77 | 33 |
Current-period provision for expected credit losses | 66 | (20) | 44 |
Write-offs charged against the allowance | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 |
Net change in allowance | 66 | (20) | 44 |
Balance, end of period | 123 | 57 | 77 |
Agricultural Mortgage Loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 5 | 4 | 3 |
Current-period provision for expected credit losses | 1 | 1 | 1 |
Write-offs charged against the allowance | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 |
Net change in allowance | 1 | 1 | 1 |
Balance, end of period | $ 6 | $ 5 | $ 4 |
INVESTMENTS - Credit Quality (D
INVESTMENTS - Credit Quality (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | $ 16,610 | $ 14,095 | |
Total | 16,594 | 14,079 | |
Non-accruing Loans | 16 | 16 | |
Non-accruing Loans with No Allowance | 0 | 0 | |
Interest Income on Non-accruing Loans | $ 0 | 0 | |
Past Due | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 77 | 27 | |
30-59 Days | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 59 | 1 | |
60-89 Days | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 5 | 1 | |
90 Days Or Greater | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 13 | 25 | |
Current | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 16,517 | 14,052 | |
Commercial Mortgage Loans | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 3,272 | 2,134 | |
Fiscal year before current fiscal year | 2,114 | 1,522 | |
Two years before current fiscal year | 1,369 | 751 | |
Three years before current fiscal year | 642 | 1,253 | |
Four years before current fiscal year | 1,201 | 1,065 | |
Prior | 5,060 | 4,587 | |
Revolving Loans Amortized Cost Basis | 328 | 139 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 34 | 0 | |
Total | 14,020 | 11,451 | |
Total | 14,020 | 11,451 | |
Non-accruing Loans | 0 | 0 | |
Non-accruing Loans with No Allowance | 0 | 0 | |
Interest Income on Non-accruing Loans | 0 | 0 | |
Commercial Mortgage Loans | Past Due | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 56 | 0 | |
Commercial Mortgage Loans | 30-59 Days | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 56 | 0 | |
Commercial Mortgage Loans | 60-89 Days | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 0 | 0 | |
Commercial Mortgage Loans | 90 Days Or Greater | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 0 | 0 | |
Commercial Mortgage Loans | Current | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 13,964 | 11,451 | |
Commercial Mortgage Loans | Greater than 2.0x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 771 | 1,143 | |
Fiscal year before current fiscal year | 1,159 | 1,243 | |
Two years before current fiscal year | 1,113 | 210 | |
Three years before current fiscal year | 102 | 772 | |
Four years before current fiscal year | 571 | 485 | |
Prior | 1,923 | 2,235 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 5,639 | 6,088 | |
Commercial Mortgage Loans | 1.8x to 2.0x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 158 | 185 | |
Fiscal year before current fiscal year | 215 | 135 | |
Two years before current fiscal year | 164 | 182 | |
Three years before current fiscal year | 197 | 46 | |
Four years before current fiscal year | 186 | 161 | |
Prior | 482 | 372 | |
Revolving Loans Amortized Cost Basis | 279 | 68 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 1,681 | 1,149 | |
Commercial Mortgage Loans | 1.5x to 1.8x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 337 | 275 | |
Fiscal year before current fiscal year | 390 | 49 | |
Two years before current fiscal year | 32 | 284 | |
Three years before current fiscal year | 153 | 211 | |
Four years before current fiscal year | 176 | 166 | |
Prior | 1,175 | 919 | |
Revolving Loans Amortized Cost Basis | 4 | 48 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 2,267 | 1,952 | |
Commercial Mortgage Loans | 1.2x to 1.5x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 1,041 | 264 | |
Fiscal year before current fiscal year | 259 | 95 | |
Two years before current fiscal year | 0 | 75 | |
Three years before current fiscal year | 92 | 101 | |
Four years before current fiscal year | 73 | 253 | |
Prior | 917 | 701 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 2,382 | 1,489 | |
Commercial Mortgage Loans | 1.0x to 1.2x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 507 | 267 | |
Fiscal year before current fiscal year | 43 | 0 | |
Two years before current fiscal year | 60 | 0 | |
Three years before current fiscal year | 98 | 88 | |
Four years before current fiscal year | 160 | 0 | |
Prior | 492 | 287 | |
Revolving Loans Amortized Cost Basis | 45 | 23 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 34 | 0 | |
Total | 1,439 | 665 | |
Commercial Mortgage Loans | Less than 1.0x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 458 | 0 | |
Fiscal year before current fiscal year | 48 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 35 | |
Four years before current fiscal year | 35 | 0 | |
Prior | 71 | 73 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 612 | 108 | |
Commercial Mortgage Loans | 0% - 50% | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 624 | 0 | |
Fiscal year before current fiscal year | 130 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 184 | |
Four years before current fiscal year | 119 | 293 | |
Prior | 1,259 | 1,009 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 2,132 | 1,486 | |
Commercial Mortgage Loans | 50% - 70% | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 2,285 | 1,944 | |
Fiscal year before current fiscal year | 1,569 | 1,286 | |
Two years before current fiscal year | 906 | 339 | |
Three years before current fiscal year | 313 | 619 | |
Four years before current fiscal year | 623 | 491 | |
Prior | 2,254 | 2,533 | |
Revolving Loans Amortized Cost Basis | 328 | 139 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 8,278 | 7,351 | |
Commercial Mortgage Loans | 70% - 90% | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 363 | 190 | |
Fiscal year before current fiscal year | 415 | 236 | |
Two years before current fiscal year | 463 | 412 | |
Three years before current fiscal year | 329 | 415 | |
Four years before current fiscal year | 424 | 276 | |
Prior | 1,314 | 972 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 34 | 0 | |
Total | 3,342 | 2,501 | |
Commercial Mortgage Loans | 90% plus | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 35 | |
Four years before current fiscal year | 35 | 5 | |
Prior | 233 | 73 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 268 | 113 | |
Agricultural Mortgage Loans | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 353 | 380 | |
Fiscal year before current fiscal year | 367 | 480 | |
Two years before current fiscal year | 450 | 230 | |
Three years before current fiscal year | 197 | 255 | |
Four years before current fiscal year | 215 | 206 | |
Prior | 1,008 | 1,093 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 2,590 | 2,644 | |
Total | 2,574 | 2,628 | |
Non-accruing Loans | 16 | 16 | |
Non-accruing Loans with No Allowance | 0 | 0 | |
Interest Income on Non-accruing Loans | $ 0 | 0 | |
Agricultural Mortgage Loans | Past Due | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 21 | 27 | |
Agricultural Mortgage Loans | 30-59 Days | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 3 | 1 | |
Agricultural Mortgage Loans | 60-89 Days | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 5 | 1 | |
Agricultural Mortgage Loans | 90 Days Or Greater | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 13 | 25 | |
Agricultural Mortgage Loans | Current | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Total | 2,553 | 2,601 | |
Agricultural Mortgage Loans | Greater than 2.0x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 51 | 49 | |
Fiscal year before current fiscal year | 40 | 64 | |
Two years before current fiscal year | 62 | 25 | |
Three years before current fiscal year | 21 | 22 | |
Four years before current fiscal year | 12 | 24 | |
Prior | 193 | 210 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 379 | 394 | |
Agricultural Mortgage Loans | 1.8x to 2.0x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 16 | 52 | |
Fiscal year before current fiscal year | 58 | 37 | |
Two years before current fiscal year | 35 | 25 | |
Three years before current fiscal year | 24 | 14 | |
Four years before current fiscal year | 14 | 14 | |
Prior | 51 | 70 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 198 | 212 | |
Agricultural Mortgage Loans | 1.5x to 1.8x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 69 | 43 | |
Fiscal year before current fiscal year | 42 | 113 | |
Two years before current fiscal year | 111 | 28 | |
Three years before current fiscal year | 18 | 22 | |
Four years before current fiscal year | 19 | 41 | |
Prior | 196 | 193 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 455 | 440 | |
Agricultural Mortgage Loans | 1.2x to 1.5x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 107 | 161 | |
Fiscal year before current fiscal year | 147 | 179 | |
Two years before current fiscal year | 177 | 112 | |
Three years before current fiscal year | 98 | 116 | |
Four years before current fiscal year | 99 | 72 | |
Prior | 298 | 355 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 926 | 995 | |
Agricultural Mortgage Loans | 1.0x to 1.2x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 91 | 75 | |
Fiscal year before current fiscal year | 80 | 83 | |
Two years before current fiscal year | 61 | 31 | |
Three years before current fiscal year | 30 | 77 | |
Four years before current fiscal year | 60 | 54 | |
Prior | 257 | 226 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 579 | 546 | |
Agricultural Mortgage Loans | Less than 1.0x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 19 | 0 | |
Fiscal year before current fiscal year | 0 | 4 | |
Two years before current fiscal year | 4 | 9 | |
Three years before current fiscal year | 6 | 4 | |
Four years before current fiscal year | 11 | 1 | |
Prior | 13 | 39 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 53 | 57 | |
Agricultural Mortgage Loans | 0% - 50% | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 163 | 180 | |
Fiscal year before current fiscal year | 182 | 212 | |
Two years before current fiscal year | 228 | 128 | |
Three years before current fiscal year | 129 | 129 | |
Four years before current fiscal year | 132 | 119 | |
Prior | 725 | 738 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 1,559 | 1,506 | |
Agricultural Mortgage Loans | 50% - 70% | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 190 | 200 | |
Fiscal year before current fiscal year | 185 | 268 | |
Two years before current fiscal year | 222 | 102 | |
Three years before current fiscal year | 68 | 126 | |
Four years before current fiscal year | 83 | 87 | |
Prior | 267 | 338 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 1,015 | 1,121 | |
Agricultural Mortgage Loans | 70% - 90% | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 16 | 17 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 16 | 17 | |
Agricultural Mortgage Loans | 90% plus | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 0 | 0 | |
Mortgages Loan | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 3,625 | 2,514 | |
Fiscal year before current fiscal year | 2,481 | 2,002 | |
Two years before current fiscal year | 1,819 | 981 | |
Three years before current fiscal year | 839 | 1,508 | |
Four years before current fiscal year | 1,416 | 1,271 | |
Prior | 6,068 | 5,680 | |
Revolving Loans Amortized Cost Basis | 328 | 139 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 34 | 0 | |
Total | 16,610 | 14,095 | |
Mortgages Loan | Greater than 2.0x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 822 | 1,192 | |
Fiscal year before current fiscal year | 1,199 | 1,307 | |
Two years before current fiscal year | 1,175 | 235 | |
Three years before current fiscal year | 123 | 794 | |
Four years before current fiscal year | 583 | 509 | |
Prior | 2,116 | 2,445 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 6,018 | 6,482 | |
Mortgages Loan | 1.8x to 2.0x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 174 | 237 | |
Fiscal year before current fiscal year | 273 | 172 | |
Two years before current fiscal year | 199 | 207 | |
Three years before current fiscal year | 221 | 60 | |
Four years before current fiscal year | 200 | 175 | |
Prior | 533 | 442 | |
Revolving Loans Amortized Cost Basis | 279 | 68 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 1,879 | 1,361 | |
Mortgages Loan | 1.5x to 1.8x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 406 | 318 | |
Fiscal year before current fiscal year | 432 | 162 | |
Two years before current fiscal year | 143 | 312 | |
Three years before current fiscal year | 171 | 233 | |
Four years before current fiscal year | 195 | 207 | |
Prior | 1,371 | 1,112 | |
Revolving Loans Amortized Cost Basis | 4 | 48 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 2,722 | 2,392 | |
Mortgages Loan | 1.2x to 1.5x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 1,148 | 425 | |
Fiscal year before current fiscal year | 406 | 274 | |
Two years before current fiscal year | 177 | 187 | |
Three years before current fiscal year | 190 | 217 | |
Four years before current fiscal year | 172 | 325 | |
Prior | 1,215 | 1,056 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 3,308 | 2,484 | |
Mortgages Loan | 1.0x to 1.2x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 598 | 342 | |
Fiscal year before current fiscal year | 123 | 83 | |
Two years before current fiscal year | 121 | 31 | |
Three years before current fiscal year | 128 | 165 | |
Four years before current fiscal year | 220 | 54 | |
Prior | 749 | 513 | |
Revolving Loans Amortized Cost Basis | 45 | 23 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 34 | 0 | |
Total | 2,018 | 1,211 | |
Mortgages Loan | Less than 1.0x | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 477 | 0 | |
Fiscal year before current fiscal year | 48 | 4 | |
Two years before current fiscal year | 4 | 9 | |
Three years before current fiscal year | 6 | 39 | |
Four years before current fiscal year | 46 | 1 | |
Prior | 84 | 112 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 665 | 165 | |
Mortgages Loan | 0% - 50% | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 787 | 180 | |
Fiscal year before current fiscal year | 312 | 212 | |
Two years before current fiscal year | 228 | 128 | |
Three years before current fiscal year | 129 | 313 | |
Four years before current fiscal year | 251 | 412 | |
Prior | 1,984 | 1,747 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 3,691 | 2,992 | |
Mortgages Loan | 50% - 70% | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 2,475 | 2,144 | |
Fiscal year before current fiscal year | 1,754 | 1,554 | |
Two years before current fiscal year | 1,128 | 441 | |
Three years before current fiscal year | 381 | 745 | |
Four years before current fiscal year | 706 | 578 | |
Prior | 2,521 | 2,871 | |
Revolving Loans Amortized Cost Basis | 328 | 139 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 9,293 | 8,472 | |
Mortgages Loan | 70% - 90% | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 363 | 190 | |
Fiscal year before current fiscal year | 415 | 236 | |
Two years before current fiscal year | 463 | 412 | |
Three years before current fiscal year | 329 | 415 | |
Four years before current fiscal year | 424 | 276 | |
Prior | 1,330 | 989 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 34 | 0 | |
Total | 3,358 | 2,518 | |
Mortgages Loan | 90% plus | |||
Financing Receivable, before Allowance for Credit Loss [Abstract] | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 0 | |
Two years before current fiscal year | 0 | 0 | |
Three years before current fiscal year | 0 | 35 | |
Four years before current fiscal year | 35 | 5 | |
Prior | 233 | 73 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | $ 268 | $ 113 |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (114) | $ (19) |
Net investment gains (losses) recognized on securities sold during the period | (36) | 45 |
Unrealized and realized gains (losses) on equity securities | $ (150) | $ 26 |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (198) | $ (274) | $ 128 |
Net investment gains (losses) recognized on securities sold during the period | 0 | 248 | 42 |
Unrealized and realized gains (losses) on trading securities | (198) | (26) | 170 |
Interest and dividend income from trading securities | 29 | 99 | 217 |
Net investment income (loss) from trading securities | $ (169) | $ 73 | $ 387 |
INVESTMENTS - Fixed Maturitie_2
INVESTMENTS - Fixed Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (14) | $ 12 |
Net investment gains (losses) recognized on securities sold during the period | 2 | 4 |
Unrealized and realized gains (losses) from fixed maturities | (12) | 16 |
Interest and dividend income from fixed maturities | 7 | 19 |
Net investment income (loss) from fixed maturities | $ (5) | $ 35 |
INVESTMENTS - Net Investment In
INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Income [Line Items] | |||
Gross investment income (loss) | $ 3,420 | $ 3,923 | $ 3,549 |
Investment expenses | (105) | (77) | (72) |
Net investment income (loss) | 3,315 | 3,846 | 3,477 |
Fixed maturities | |||
Net Investment Income [Line Items] | |||
Gross investment income (loss) | 2,625 | 2,440 | 2,341 |
Mortgage loans on real estate | |||
Net Investment Income [Line Items] | |||
Gross investment income (loss) | 587 | 546 | 516 |
Other equity investments | |||
Net Investment Income [Line Items] | |||
Gross investment income (loss) | 134 | 609 | 67 |
Policy loans | |||
Net Investment Income [Line Items] | |||
Gross investment income (loss) | 215 | 203 | 204 |
Trading securities | |||
Net Investment Income [Line Items] | |||
Gross investment income (loss) | (169) | 73 | 387 |
Other investment income | |||
Net Investment Income [Line Items] | |||
Gross investment income (loss) | 33 | 17 | 33 |
Fixed maturities, at fair value using the fair value option | |||
Net Investment Income [Line Items] | |||
Gross investment income (loss) | $ (5) | $ 35 | $ 1 |
INVESTMENTS - Investment Gains
INVESTMENTS - Investment Gains (Losses), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Income [Line Items] | |||
Investment gains (losses), net | $ (945) | $ 868 | $ 744 |
Fixed maturities | |||
Net Investment Income [Line Items] | |||
Investment gains (losses), net | (868) | 847 | 828 |
Mortgage loans on real estate | |||
Net Investment Income [Line Items] | |||
Investment gains (losses), net | (66) | 19 | (45) |
Other equity investments | |||
Net Investment Income [Line Items] | |||
Investment gains (losses), net | 0 | 0 | 30 |
Other investment income | |||
Net Investment Income [Line Items] | |||
Investment gains (losses), net | $ (11) | $ 2 | $ (69) |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | $ 1,696 | $ (4,465) | $ (1,722) |
Net investment income (loss) | 3,315 | 3,846 | 3,477 |
Interest credited to policyholders’ account balances | (1,409) | (1,219) | (1,222) |
Designated for Hedge Accounting | Cash Flow Hedge | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 2,386 | 1,876 | |
Derivative Assets | 99 | 7 | |
Derivative Liabilities | 379 | 437 | |
Net derivative gains (losses) | (67) | (71) | (9) |
Net investment income (loss) | 7 | ||
Interest credited to policyholders’ account balances | (4) | (45) | 0 |
Amount reclassified from AOCI to income | 230 | (82) | (87) |
Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 71,455 | 80,365 | |
Derivative Assets | 8,045 | 12,351 | |
Derivative Liabilities | 8,113 | 11,293 | |
Net derivative gains (losses) | (1,981) | (3,337) | 1,861 |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Currency swaps | Designated for Hedge Accounting | Cash Flow Hedge | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,431 | 921 | |
Derivative Assets | 99 | 7 | |
Derivative Liabilities | 85 | 42 | |
Net derivative gains (losses) | 19 | (2) | 0 |
Net investment income (loss) | 7 | ||
Interest credited to policyholders’ account balances | (4) | (45) | 0 |
Amount reclassified from AOCI to income | 24 | 5 | 0 |
Currency swaps | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 397 | 541 | |
Derivative Assets | 4 | 1 | |
Derivative Liabilities | 13 | 0 | |
Net derivative gains (losses) | 10 | 3 | (4) |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Swaps | Designated for Hedge Accounting | Cash Flow Hedge | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 955 | 955 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 294 | 395 | |
Net derivative gains (losses) | (86) | (69) | (9) |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 206 | (87) | (87) |
Swaps | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,515 | 1,889 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 166 | 46 | |
Net derivative gains (losses) | (492) | (2,317) | 2,832 |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Futures | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 5,151 | 2,640 | |
Derivative Assets | 2 | 0 | |
Derivative Liabilities | 0 | 1 | |
Net derivative gains (losses) | 285 | (567) | (1,011) |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Swaps | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 11,188 | 13,378 | |
Derivative Assets | 39 | 6 | |
Derivative Liabilities | 9 | 4 | |
Net derivative gains (losses) | 2,644 | (3,614) | (3,368) |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Options | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 40,122 | 48,489 | |
Derivative Assets | 7,583 | 12,024 | |
Derivative Liabilities | 3,412 | 5,065 | |
Net derivative gains (losses) | (2,750) | 3,886 | 1,663 |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Futures | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 12,693 | 12,575 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 0 | 0 | |
Net derivative gains (losses) | (1,688) | (728) | 1,740 |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Swaptions | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 0 | 0 | 9 |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Credit default swaps | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 327 | 774 | |
Derivative Assets | 18 | 9 | |
Derivative Liabilities | 9 | 10 | |
Net derivative gains (losses) | 7 | (2) | 0 |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Currency forwards | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 62 | 79 | |
Derivative Assets | 31 | 8 | |
Derivative Liabilities | 32 | 7 | |
Net derivative gains (losses) | 3 | 2 | 0 |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Margin | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 226 | 125 | |
Derivative Liabilities | 0 | 0 | |
Collateral | Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 142 | 178 | |
Derivative Liabilities | 4,472 | 6,160 | |
Amounts Due from Reinsurers | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 4,114 | 5,813 | |
Derivative Liabilities | 0 | 0 | |
Net derivative gains (losses) | (1,706) | 517 | 0 |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
GMIB Reinsurance Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 1,229 | 1,848 | |
Derivative Liabilities | 0 | 0 | |
Net derivative gains (losses) | (581) | (625) | 417 |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
GMxB Derivative Features’ Liability | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 5,764 | 8,525 | |
Net derivative gains (losses) | 3,076 | 2,841 | (2,253) |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
SCS, SIO, MSO and IUL Indexed Features | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 4,164 | 6,773 | |
Net derivative gains (losses) | 2,955 | (3,835) | (1,738) |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Embedded derivatives | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Derivative Assets | 5,343 | 7,661 | |
Derivative Liabilities | 9,928 | 15,298 | |
Net derivative gains (losses) | 3,744 | (1,102) | (3,574) |
Net investment income (loss) | 0 | ||
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Amount reclassified from AOCI to income | 0 | 0 | 0 |
Derivative instruments including embedded derivative | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 73,841 | 82,241 | |
Derivative Assets | 13,487 | 20,019 | |
Derivative Liabilities | 18,420 | 27,028 | |
Net derivative gains (losses) | 1,696 | (4,510) | (1,722) |
Net investment income (loss) | 7 | ||
Interest credited to policyholders’ account balances | (4) | (45) | 0 |
Amount reclassified from AOCI to income | $ 230 | $ (82) | $ (87) |
DERIVATIVES - Financial Stateme
DERIVATIVES - Financial Statement Impact of Derivatives By Category (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | $ 1,696 | $ (4,465) | $ (1,722) |
Interest credited to policyholders’ account balances | (1,409) | (1,219) | (1,222) |
Net investment income (loss) | 3,315 | 3,846 | 3,477 |
Amounts Due from Reinsurers | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (1,706) | 517 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
GMIB Reinsurance Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (581) | (625) | 417 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
GMxB Derivative Features’ Liability | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 3,076 | 2,841 | (2,253) |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Settlement fee | 45 | ||
Net investment income (loss) | 0 | ||
SCS, SIO, MSO and IUL Indexed Features | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 2,955 | (3,835) | (1,738) |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Embedded derivatives | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 3,744 | (1,102) | (3,574) |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Derivative instruments including embedded derivative | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 1,696 | (4,510) | (1,722) |
Interest credited to policyholders’ account balances | (4) | (45) | 0 |
AOCI | 230 | (82) | (87) |
Net investment income (loss) | 7 | ||
Not Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (1,981) | (3,337) | 1,861 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Not Designated for Hedge Accounting | Currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 10 | 3 | (4) |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Not Designated for Hedge Accounting | Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (492) | (2,317) | 2,832 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Not Designated for Hedge Accounting | Futures | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 285 | (567) | (1,011) |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Not Designated for Hedge Accounting | Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 2,644 | (3,614) | (3,368) |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Not Designated for Hedge Accounting | Options | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (2,750) | 3,886 | 1,663 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Not Designated for Hedge Accounting | Futures | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (1,688) | (728) | 1,740 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Not Designated for Hedge Accounting | Swaptions | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 0 | 0 | 9 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Not Designated for Hedge Accounting | Credit default swaps | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 7 | (2) | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Not Designated for Hedge Accounting | Currency forwards | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 3 | 2 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 0 | 0 | 0 |
Net investment income (loss) | 0 | ||
Cash Flow Hedge | Designated for Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (67) | (71) | (9) |
Interest credited to policyholders’ account balances | (4) | (45) | 0 |
AOCI | 230 | (82) | (87) |
Net investment income (loss) | 7 | ||
Cash Flow Hedge | Designated for Hedge Accounting | Currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | 19 | (2) | 0 |
Interest credited to policyholders’ account balances | (4) | (45) | 0 |
AOCI | 24 | 5 | 0 |
Net investment income (loss) | 7 | ||
Cash Flow Hedge | Designated for Hedge Accounting | Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Net derivative gains (losses) | (86) | (69) | (9) |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
AOCI | 206 | $ (87) | $ (87) |
Net investment income (loss) | $ 0 |
DERIVATIVES - Rollforward for C
DERIVATIVES - Rollforward for Cash Flows Hedges in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 11,519 | ||
Ending Balance, March 31 | 1,658 | $ 11,519 | |
Cash Flow Hedges Recognized in AOCI | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (208) | (126) | $ (38) |
Amount recorded in AOCI | 131 | (218) | (108) |
Amount reclassified from AOCI to income | 99 | 136 | 20 |
Ending Balance, March 31 | 22 | (208) | (126) |
Cash Flow Hedges Recognized in AOCI | Currency swaps | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Amount recorded in AOCI | 29 | (35) | 0 |
Amount reclassified from AOCI to income | (5) | 40 | 0 |
Cash Flow Hedges Recognized in AOCI | Interest swaps | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Amount recorded in AOCI | 102 | (183) | (108) |
Amount reclassified from AOCI to income | $ 104 | $ 96 | $ 20 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Cash and securities collateral for derivative contract | $ 4,500 | $ 6,200 |
Cash and securities collateral | 142 | 178 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Derivative [Line Items] | ||
Initial margin requirement | 247 | 109 |
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||
Derivative [Line Items] | ||
Initial margin requirement | 113 | 200 |
Euro Stoxx, FTSE100, Topix, ASX200 and EAFE Indices | ||
Derivative [Line Items] | ||
Initial margin requirement | $ 16 | $ 16 |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Assets | ||
Gross Amount Recognized | $ 8,143 | $ 12,358 |
Gross Amount Offset in the Balance Sheets | 7,047 | 10,756 |
Net Amount Presented in the Balance Sheets | 1,096 | 1,602 |
Gross Amount not Offset in the Balance Sheets | (848) | (961) |
Derivative Asset, Including Not Subject to Master Netting Arrangement, after Offset and Deduction, Total | 248 | 641 |
Liabilities | ||
Gross Amount Recognized | 7,645 | 10,770 |
Gross Amount Offset in the Balance Sheets | 7,047 | 10,756 |
Net Amount Presented in the Balance Sheets | 598 | 14 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 598 | 14 |
Other financial assets | ||
Assets | ||
Gross Amount Recognized | 2,789 | 1,989 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 2,789 | 1,989 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Derivative Asset, Including Not Subject to Master Netting Arrangement, after Offset and Deduction, Total | 2,789 | 1,989 |
Other invested assets | ||
Assets | ||
Gross Amount Recognized | 10,932 | 14,347 |
Gross Amount Offset in the Balance Sheets | 7,047 | 10,756 |
Net Amount Presented in the Balance Sheets | 3,885 | 3,591 |
Gross Amount not Offset in the Balance Sheets | (848) | (961) |
Derivative Asset, Including Not Subject to Master Netting Arrangement, after Offset and Deduction, Total | 3,037 | 2,630 |
Other financial liabilities | ||
Liabilities | ||
Gross Amount Recognized | 5,275 | 3,919 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 5,275 | 3,919 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 5,275 | 3,919 |
Other liabilities | ||
Liabilities | ||
Gross Amount Recognized | 12,920 | 14,689 |
Gross Amount Offset in the Balance Sheets | 7,047 | 10,756 |
Net Amount Presented in the Balance Sheets | 5,873 | 3,933 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | $ 5,873 | $ 3,933 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 22, 2022 | |
Goodwill [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Intangible Assets | $ 170,000,000 | $ 170,000,000 | ||
Impairment loss | 0 | $ 0 | ||
Goodwill, Other Increase (Decrease) | 257,000,000 | |||
CarVal Acquisition | ||||
Goodwill [Line Items] | ||||
Goodwill acquired during year | 666,000,000 | |||
Alliance Bernstein | ||||
Goodwill [Line Items] | ||||
Amortization of intangible assets | 43,000,000 | 21,000,000 | $ 37,000,000 | |
Increase (decrease) in derivative assets | 496,000,000 | |||
Gross carrying amount of AllianceBernstein related intangible assets | 1,200,000,000 | 932,000,000 | ||
Accumulated amortization of these intangible assets | (853,000,000) | 809,000,000 | ||
Amortization expense, year one | 60,000,000 | |||
Amortization expense, year two | 60,000,000 | |||
Amortization expense, year three | 60,000,000 | |||
Amortization expense, year four | 59,000,000 | |||
Amortization expense, year five | 38,000,000 | |||
Investment Management | Alliance Bernstein | ||||
Goodwill [Line Items] | ||||
Amortization of intangible assets | $ 5,100,000,000 | $ 4,600,000,000 |
CLOSED BLOCK - Closed Block Sum
CLOSED BLOCK - Closed Block Summarized Financial Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Closed Block Liabilities: | ||||
Future policy benefits, policyholders’ account balances and other | $ 5,688 | $ 5,928 | ||
Policyholder dividend obligation | 0 | 0 | $ 160 | $ 2 |
Other liabilities | 68 | 39 | ||
Total Closed Block liabilities | 5,756 | 5,967 | ||
Assets Designated to the Closed Block: | ||||
Fixed maturities AFS, at fair value (amortized cost of $3,171 and $3,185) (allowance for credit losses of $0 and $0) | 2,948 | 3,390 | ||
Mortgage loans on real estate (net of allowance for credit losses of $4 and $4) | 1,645 | 1,771 | ||
Policy loans | 569 | 602 | ||
Cash and other invested assets | 0 | 63 | ||
Other assets | 155 | 90 | ||
Total assets designated to the Closed Block | 5,317 | 5,916 | ||
Excess of Closed Block liabilities over assets designated to the Closed Block | 439 | 51 | ||
Amounts included in AOCI: | ||||
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $47 and ($43) | (166) | 172 | ||
Maximum future earnings to be recognized from Closed Block assets and liabilities | 273 | 223 | ||
Fixed maturity available for sale, amortized cost | 3,171 | 3,185 | ||
Fixed maturities available-for-sale, allowance for credit losses | 0 | 0 | ||
Mortgage loans, credit losses | (4) | (4) | ||
Policyholder dividend obligation | 0 | 0 | $ 160 | $ 2 |
Closed block operations, income taxes | $ 47 | $ (43) |
CLOSED BLOCK - Closed Block Rev
CLOSED BLOCK - Closed Block Revenues and Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Premiums and other income | $ 125 | $ 144 | $ 157 |
Net investment income (loss) | 221 | 237 | 251 |
Investment gains (losses), net | (3) | 4 | 0 |
Total revenues | 343 | 385 | 408 |
Benefits and Other Deductions: | |||
Policyholders’ benefits and dividends | 328 | 372 | 399 |
Other operating costs and expenses | 2 | 3 | 1 |
Total benefits and other deductions | 330 | 375 | 400 |
Net income (loss), before income taxes | 13 | 10 | 8 |
Income tax (expense) benefit | (1) | (2) | (2) |
Net income (loss) | $ 12 | $ 8 | $ 6 |
CLOSED BLOCK - Reconciliation o
CLOSED BLOCK - Reconciliation of Policyholder Dividend Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | |||
Beginning balance | $ 0 | $ 160 | $ 2 |
Unrealized investment gains (losses) | 0 | (160) | 158 |
Ending balance | $ 0 | $ 0 | $ 160 |
DAC AND POLICYHOLDER BONUS IN_3
DAC AND POLICYHOLDER BONUS INTEREST CREDITS - Changes in Deferred Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 5,491 | $ 4,243 | $ 5,840 |
Balance, beginning of year | 5,491 | 4,243 | |
Capitalization of commissions, sales and issue expenses | 842 | 875 | 669 |
Amortization: | |||
Impact of assumptions updates and model changes | 43 | 58 | (1,109) |
All other | (585) | 451 | (504) |
Total amortization | (542) | (393) | (1,613) |
Change in unrealized investment gains and losses | 2,367 | 766 | (654) |
Reclassified to assets HFS | 0 | 0 | 1 |
Balance, end of year | $ 8,158 | 5,491 | 4,243 |
Balance, end of year | $ 5,491 | $ 4,243 |
DAC AND POLICYHOLDER BONUS IN_4
DAC AND POLICYHOLDER BONUS INTEREST CREDITS - Changes in Deferred Asset for Policyholder Bonus Interest Credits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in the deferred asset for contractholder bonus interest credits | |||
Balance, beginning of year | $ 373 | $ 404 | $ 430 |
Amortization charged to income | (39) | (31) | (26) |
Balance, end of year | $ 334 | $ 373 | $ 404 |
FAIR VALUE DISCLOSURES - Assets
FAIR VALUE DISCLOSURES - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments: | |||
Fixed maturities, AFS at fair value | $ 63,361 | $ 78,216 | |
Fixed maturities, at fair value using the fair value option | [1] | 1,508 | 1,641 |
Amounts due from reinsurer | 4,114 | 5,813 | |
Liabilities: | |||
Notes issued by consolidated variable interest entity, fair value option | [1] | 1,150 | 1,191 |
Short-term debt | 759 | 92 | |
Accrued interest payable for notes issued by consolidated variable interest entity | 15 | 6 | |
Carrying Value | Other liabilities | |||
Investments: | |||
Other equity investments | 12 | ||
Carrying Value | CLO Warehouse Debt | |||
Liabilities: | |||
Short-term debt | 239 | 92 | |
U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 5,837 | 15,385 | |
States and political subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 527 | 662 | |
Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 836 | 1,152 | |
RMBS | |||
Investments: | |||
Fixed maturities, AFS at fair value | 822 | 98 | |
Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 8,490 | 5,934 | |
Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 3,235 | 2,421 | |
Redeemable preferred stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 43 | 53 | |
Recurring | |||
Investments: | |||
Fixed maturities, AFS at fair value | 63,361 | 78,216 | |
Fixed maturities, at fair value using the fair value option | 1,508 | 1,641 | |
Other equity investments | 723 | 784 | |
Trading securities, at fair value | 677 | 631 | |
Other invested assets: | 5,229 | 7,141 | |
Cash equivalents | 2,887 | 3,568 | |
Segregated securities | 1,522 | 1,504 | |
Amounts due from reinsurer | 4,114 | 5,813 | |
GMIB reinsurance contracts asset | 1,229 | 1,848 | |
Separate Accounts assets | 114,181 | 146,697 | |
Total Assets | 195,431 | 247,843 | |
Liabilities: | |||
Notes issued by consolidated variable interest entity, fair value option | 1,374 | 1,277 | |
Contingent payment arrangements | 247 | 38 | |
Total Liabilities | 11,571 | 16,631 | |
Recurring | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 43,571 | 52,511 | |
Recurring | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 5,837 | 15,385 | |
Recurring | States and political subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 527 | 662 | |
Recurring | Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 836 | 1,152 | |
Recurring | RMBS | |||
Investments: | |||
Fixed maturities, AFS at fair value | 822 | 98 | |
Recurring | Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 8,490 | 5,934 | |
Recurring | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 3,235 | 2,421 | |
Recurring | Redeemable preferred stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 43 | 53 | |
Recurring | Short-term investments | |||
Investments: | |||
Other invested assets: | 943 | 30 | |
Recurring | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 529 | 627 | |
Recurring | Swaps | |||
Investments: | |||
Other invested assets: | (425) | (473) | |
Recurring | Credit default swaps | |||
Investments: | |||
Other invested assets: | 9 | (1) | |
Recurring | Futures | |||
Investments: | |||
Other invested assets: | 2 | (1) | |
Recurring | Options | |||
Investments: | |||
Other invested assets: | 4,171 | 6,959 | |
Recurring | Swaptions | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | GMxB derivative features’ liability | |||
Liabilities: | |||
Guarantees | 5,764 | 8,525 | |
Recurring | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 4,164 | 6,773 | |
Recurring | Level 1 | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Fixed maturities, at fair value using the fair value option | 0 | ||
Other equity investments | 214 | 322 | |
Trading securities, at fair value | 290 | 340 | |
Other invested assets: | 133 | 165 | |
Cash equivalents | 2,386 | 3,275 | |
Segregated securities | 0 | 0 | |
Amounts due from reinsurer | 0 | 0 | |
GMIB reinsurance contracts asset | 0 | 0 | |
Separate Accounts assets | 111,744 | 144,124 | |
Total Assets | 114,767 | 148,226 | |
Liabilities: | |||
Notes issued by consolidated variable interest entity, fair value option | 0 | 0 | |
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 15 | 16 | |
Recurring | Level 1 | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | States and political subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | RMBS | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | Redeemable preferred stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 1 | Short-term investments | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 131 | 166 | |
Recurring | Level 1 | Swaps | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Credit default swaps | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Futures | |||
Investments: | |||
Other invested assets: | 2 | (1) | |
Recurring | Level 1 | Options | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 1 | Swaptions | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | Level 1 | GMxB derivative features’ liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | Level 1 | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | Level 2 | |||
Investments: | |||
Fixed maturities, AFS at fair value | 61,146 | 76,649 | |
Fixed maturities, at fair value using the fair value option | 1,284 | 1,440 | |
Other equity investments | 497 | 457 | |
Trading securities, at fair value | 332 | 226 | |
Other invested assets: | 5,091 | 6,965 | |
Cash equivalents | 501 | 293 | |
Segregated securities | 1,522 | 1,504 | |
Amounts due from reinsurer | 0 | 0 | |
GMIB reinsurance contracts asset | 0 | 0 | |
Separate Accounts assets | 2,436 | 2,572 | |
Total Assets | 72,809 | 90,106 | |
Liabilities: | |||
Notes issued by consolidated variable interest entity, fair value option | 1,374 | 1,277 | |
Contingent payment arrangements | 0 | 0 | |
Total Liabilities | 5,545 | 8,052 | |
Recurring | Level 2 | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 41,450 | 51,007 | |
Recurring | Level 2 | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 5,837 | 15,385 | |
Recurring | Level 2 | States and political subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 499 | 627 | |
Recurring | Level 2 | Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 836 | 1,152 | |
Recurring | Level 2 | RMBS | |||
Investments: | |||
Fixed maturities, AFS at fair value | 788 | 98 | |
Recurring | Level 2 | Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 8,490 | 5,926 | |
Recurring | Level 2 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 3,203 | 2,401 | |
Recurring | Level 2 | Redeemable preferred stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 43 | 53 | |
Recurring | Level 2 | Short-term investments | |||
Investments: | |||
Other invested assets: | 943 | 30 | |
Recurring | Level 2 | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 393 | 450 | |
Recurring | Level 2 | Swaps | |||
Investments: | |||
Other invested assets: | (425) | (473) | |
Recurring | Level 2 | Credit default swaps | |||
Investments: | |||
Other invested assets: | 9 | (1) | |
Recurring | Level 2 | Futures | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 2 | Options | |||
Investments: | |||
Other invested assets: | 4,171 | 6,959 | |
Recurring | Level 2 | Swaptions | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | Level 2 | GMxB derivative features’ liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 4,164 | 6,773 | |
Recurring | Level 3 | |||
Investments: | |||
Fixed maturities, AFS at fair value | 2,215 | 1,567 | |
Fixed maturities, at fair value using the fair value option | 224 | 201 | |
Other equity investments | 12 | 5 | |
Trading securities, at fair value | 55 | 65 | |
Other invested assets: | 5 | 11 | |
Cash equivalents | 0 | 0 | |
Segregated securities | 0 | 0 | |
Amounts due from reinsurer | 4,114 | 5,813 | |
GMIB reinsurance contracts asset | 1,229 | 1,848 | |
Separate Accounts assets | 1 | 1 | |
Total Assets | 7,855 | 9,511 | |
Liabilities: | |||
Notes issued by consolidated variable interest entity, fair value option | 0 | 0 | |
Contingent payment arrangements | 247 | 38 | |
Total Liabilities | 6,011 | 8,563 | |
Recurring | Level 3 | Corporate | |||
Investments: | |||
Fixed maturities, AFS at fair value | 2,121 | 1,504 | |
Recurring | Level 3 | U.S. Treasury, government and agency | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 3 | States and political subdivisions | |||
Investments: | |||
Fixed maturities, AFS at fair value | 28 | 35 | |
Recurring | Level 3 | Foreign governments | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 3 | RMBS | |||
Investments: | |||
Fixed maturities, AFS at fair value | 34 | 0 | |
Recurring | Level 3 | Asset-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 8 | |
Recurring | Level 3 | Commercial mortgage-backed | |||
Investments: | |||
Fixed maturities, AFS at fair value | 32 | 20 | |
Recurring | Level 3 | Redeemable preferred stock | |||
Investments: | |||
Fixed maturities, AFS at fair value | 0 | 0 | |
Recurring | Level 3 | Short-term investments | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Assets of consolidated VIEs/VOEs | |||
Investments: | |||
Other invested assets: | 5 | 11 | |
Recurring | Level 3 | Swaps | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Credit default swaps | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Futures | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Options | |||
Investments: | |||
Other invested assets: | 0 | 0 | |
Recurring | Level 3 | Swaptions | |||
Investments: | |||
Other invested assets: | 0 | ||
Recurring | Level 3 | GMxB derivative features’ liability | |||
Liabilities: | |||
Guarantees | 5,764 | 8,525 | |
Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features’ liability | |||
Liabilities: | |||
Guarantees | 0 | 0 | |
Recurring | NAV | |||
Investments: | |||
Separate Accounts assets | 456 | 404 | |
Variable Interest Entity, Primary Beneficiary | Recurring | |||
Liabilities: | |||
Guarantees | 22 | 18 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 1 | |||
Liabilities: | |||
Guarantees | 15 | 16 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 2 | |||
Liabilities: | |||
Guarantees | 7 | 2 | |
Variable Interest Entity, Primary Beneficiary | Recurring | Level 3 | |||
Liabilities: | |||
Guarantees | $ 0 | $ 0 | |
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs. |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Fair value adjustments on GMIB asset | $ 74 | $ 107 |
Fair value adjustments on amounts due from reinsurers | 151 | 210 |
AFS fixed maturities transferred from Level 3 to Level 2 | 200 | 785 |
AFS fixed maturities transferred from Level 2 to Level 3 | $ 213 | $ 27 |
Fair value measurement with unobservable inputs reconciliation recurring basis asset transfers percentage | 12.20% | 6.20% |
Nonrecurring | Level 3 | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Investments, fair value disclosure | $ 1,000 | $ 635 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation for All Levels (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total gains (losses), realized and unrealized, included in: | ||||
Transfers into level 3 | $ 213 | $ 27 | ||
Transfers out of level 3 | (200) | (785) | ||
Contingent payment arrangements other accretion amount | 7 | |||
Held-for-sale reclassifications | (29) | |||
GMxB derivative features’ liability | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Settlement fee | 45 | |||
Corporate | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 1,504 | 1,702 | $ 1,257 | |
Investment gains (losses), reported in net investment income | 5 | 5 | 4 | |
Net derivative gains (losses) (1) | (5) | (16) | (16) | |
Total realized and unrealized gains (losses) | 0 | (11) | (12) | |
Other comprehensive income (loss) | (159) | 34 | (17) | |
Purchases | 1,107 | 938 | 514 | |
Sales | (378) | (473) | 226 | |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 168 | 27 | 189 | |
Transfers out of level 3 | (121) | (713) | 3 | |
Ending Balance | $ 1,504 | 2,121 | 1,504 | 1,702 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | (156) | 28 | (18) | |
States and political subdivisions | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 35 | 39 | 39 | |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) (1) | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | |
Other comprehensive income (loss) | (5) | (2) | 2 | |
Purchases | 0 | 0 | 0 | |
Sales | (2) | (2) | 2 | |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | 0 | 0 | 0 | |
Ending Balance | 35 | 28 | 35 | 39 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | (5) | (2) | 2 | |
Asset-backed | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 8 | 20 | 100 | |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) (1) | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | 0 | 6 | 20 | |
Sales | (2) | (18) | 0 | |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | (6) | 0 | 100 | |
Ending Balance | 8 | 0 | 8 | 20 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | |
CMBS | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 20 | 0 | 0 | |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) (1) | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | |
Other comprehensive income (loss) | (2) | 0 | 0 | |
Purchases | 14 | 20 | 0 | |
Sales | 0 | 0 | 0 | |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | 0 | 0 | 0 | |
Ending Balance | 20 | 32 | 20 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | (2) | 0 | 0 | |
RMBS | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 0 | 0 | 0 | |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) (1) | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | 34 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | 0 | 0 | 0 | |
Ending Balance | 0 | 34 | 0 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Trading Securities, at Fair Value | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 65 | 39 | 36 | |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) (1) | (10) | 26 | 3 | |
Total realized and unrealized gains (losses) | (10) | 26 | 3 | |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | 0 | 0 | 0 | |
Ending Balance | 65 | 55 | 65 | 39 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | (10) | 26 | 3 | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Fixed maturities, at FVO | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 201 | 80 | 0 | |
Investment gains (losses), reported in net investment income | (11) | 5 | 0 | |
Net derivative gains (losses) (1) | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) | (11) | 5 | 0 | |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | 98 | 211 | 81 | |
Sales | (36) | (23) | 1 | |
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 45 | 0 | 0 | |
Transfers out of level 3 | (73) | (72) | 0 | |
Ending Balance | 201 | 224 | 201 | 80 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | (2) | 5 | 0 | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Other equity investments | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 16 | 84 | 113 | |
Investment gains (losses), reported in net investment income | (1) | 21 | (8) | |
Net derivative gains (losses) (1) | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) | (1) | 21 | (8) | |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | 8 | 8 | 9 | |
Sales | 0 | (92) | (26) | |
Settlements | 0 | 0 | ||
Change in estimate | 0 | |||
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | (3) | (4) | (4) | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | (3) | (1) | 0 | |
Ending Balance | 16 | 17 | 16 | 84 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | (1) | 2 | (8) | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | |
GMIB Reinsurance Contract Asset | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Non-performance risk | (35) | (23) | 7 | |
GMIB Reinsurance Contract Asset | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 1,848 | 2,488 | 2,139 | |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) (1) | (581) | (625) | 417 | |
Total realized and unrealized gains (losses) | (581) | (625) | 417 | |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | 40 | 43 | 43 | |
Sales | (78) | (58) | (79) | |
Settlements | 0 | 0 | ||
Change in estimate | (32) | |||
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | 0 | 0 | 0 | |
Ending Balance | 1,848 | 1,229 | 1,848 | 2,488 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | (581) | (625) | 417 | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Amounts Due from Reinsurers | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Non-performance risk | (60) | (19) | 0 | |
Amounts Due from Reinsurers | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 5,815 | 0 | 0 | |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) (1) | (1,706) | 517 | 0 | |
Total realized and unrealized gains (losses) | (1,706) | 517 | 0 | |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | 122 | 74 | 0 | |
Sales | (117) | (35) | 0 | |
Settlements | 0 | 0 | ||
Change in estimate | 0 | |||
Other | 0 | 5,259 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | 0 | 0 | 0 | |
Ending Balance | 5,815 | 4,114 | 5,815 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | (1,706) | 517 | 74 | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Separate Accounts Assets | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | 1 | 1 | 0 | |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) (1) | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | 0 | 1 | 1 | |
Sales | 0 | 0 | 0 | |
Settlements | 0 | 0 | ||
Change in estimate | 0 | |||
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | 0 | (1) | 0 | |
Ending Balance | 1 | 1 | 1 | 1 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 1 | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | |
GMxB Derivative Features Liability | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Non-performance risk | 522 | 213 | (764) | |
GMxB Derivative Features Liability | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | (8,525) | (11,131) | (8,502) | |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) (1) | 3,076 | 2,841 | (2,253) | |
Total realized and unrealized gains (losses) | 3,076 | 2,841 | (2,253) | |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | (462) | (463) | (451) | |
Sales | 147 | 88 | 75 | |
Settlements | 0 | 0 | ||
Change in estimate | 0 | |||
Other | 0 | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | 0 | 140 | 0 | |
Ending Balance | (8,525) | (5,764) | (8,525) | (11,131) |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 3,076 | 2,841 | (2,253) | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | 0 | 0 | 0 | |
Contingent Payment Arrangement | Level 3 | ||||
Total gains (losses), realized and unrealized, included in: | ||||
Beginning Balance | (38) | (28) | (23) | |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) (1) | 0 | 0 | 0 | |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases | (231) | (7) | (4) | |
Sales | 0 | 0 | 0 | |
Settlements | 0 | 1 | ||
Change in estimate | 1 | |||
Other | 22 | 0 | ||
Activity related to consolidated VIEs/VOEs | 0 | (3) | (3) | |
Transfers into level 3 | 0 | 0 | 0 | |
Transfers out of level 3 | 0 | 0 | 0 | |
Ending Balance | $ (38) | (247) | (38) | (28) |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | (7) | |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period | $ 0 | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information about Level 3 (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Alliance Bernstein | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 229 | ||
Discounted cash flow | Alliance Bernstein | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 247 | $ 38 | |
Discount Rate | Discounted cash flow | Minimum | Alliance Bernstein | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.019 | 0.019 | |
Discount Rate | Discounted cash flow | Maximum | Alliance Bernstein | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.104 | 0.104 | |
Discount Rate | Discounted cash flow | Weighted Average | Alliance Bernstein | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.045 | 0.070 | |
Expected Revenue Growth Rate | Discounted cash flow | Minimum | Alliance Bernstein | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.020 | 0.020 | |
Expected Revenue Growth Rate | Discounted cash flow | Maximum | Alliance Bernstein | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.839 | 0.839 | |
Expected Revenue Growth Rate | Discounted cash flow | Weighted Average | Alliance Bernstein | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.115 | 0.119 | |
Corporate | Matrix Pricing Model | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 417 | $ 258 | |
Corporate | Market Comparable Companies | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 1,029 | $ 888 | |
Corporate | Spread Over Benchmark | Matrix Pricing Model | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0020 | 0.0020 | |
Corporate | Spread Over Benchmark | Matrix Pricing Model | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0797 | 0.0270 | |
Corporate | Spread Over Benchmark | Matrix Pricing Model | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0205 | 0.0144 | |
Corporate | EBITDA Multiple | Market Comparable Companies | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 5.3 | 4.9 | |
Corporate | EBITDA Multiple | Market Comparable Companies | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 35.8 | 62.3 | |
Corporate | EBITDA Multiple | Market Comparable Companies | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 13.6 | 13 | |
Corporate | Discount Rate | Market Comparable Companies | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.090 | 0.062 | |
Corporate | Discount Rate | Market Comparable Companies | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.457 | 0.215 | |
Corporate | Discount Rate | Market Comparable Companies | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.119 | 0.091 | |
Corporate | Cash Flow Multiples | Market Comparable Companies | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0 | 0.5 | |
Corporate | Cash Flow Multiples | Market Comparable Companies | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 10.3 | 10 | |
Corporate | Cash Flow Multiples | Market Comparable Companies | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 6.1 | 5.5 | |
Corporate | Loan to Value | Market Comparable Companies | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0 | 0.031 | |
Corporate | Loan to Value | Market Comparable Companies | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.00404 | 0.634 | |
Corporate | Loan to Value | Market Comparable Companies | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.00120 | 0.308 | |
Trading Securities, at Fair Value | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 55 | $ 65 | |
Measurement input | 11 years | 7 years | |
Trading Securities, at Fair Value | Revenue/Earnings Multiple | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 8.3 | 7.3 | |
Trading Securities, at Fair Value | Discount Factor | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.100 | 0.1000 | |
Other equity investments | Market Comparable Companies | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 4 | $ 4 | |
Other equity investments | Revenue/Earnings Multiple | Market Comparable Companies | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.5 | 7.8 | |
Other equity investments | Revenue/Earnings Multiple | Market Comparable Companies | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 10.8 | 10.3 | |
Other equity investments | Revenue/Earnings Multiple | Market Comparable Companies | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 2.4 | 9.5 | |
GMIB Reinsurance Contract Asset | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 1,229 | $ 1,848 | |
GMIB Reinsurance Contract Asset | Lapse Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0026 | 0.0045 | |
GMIB Reinsurance Contract Asset | Lapse Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.2623 | 0.2086 | |
GMIB Reinsurance Contract Asset | Lapse Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0305 | 0.0265 | |
GMIB Reinsurance Contract Asset | Withdrawal Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0006 | 0.0027 | |
GMIB Reinsurance Contract Asset | Withdrawal Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.1093 | 0.0866 | |
GMIB Reinsurance Contract Asset | Withdrawal Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0099 | 0.0093 | |
GMIB Reinsurance Contract Asset | Utilization Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0004 | 0.0004 | |
GMIB Reinsurance Contract Asset | Utilization Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.6230 | 0.6044 | |
GMIB Reinsurance Contract Asset | Utilization Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0540 | 0.0527 | |
GMIB Reinsurance Contract Asset | Non-Performance Risk | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0069 | 0.0057 | |
GMIB Reinsurance Contract Asset | Non-Performance Risk | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0133 | 0.0093 | |
GMIB Reinsurance Contract Asset | Non-Performance Risk | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0070 | 0.0060 | |
GMIB Reinsurance Contract Asset | Volatility Rate - Equity | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.14 | 0.11 | |
GMIB Reinsurance Contract Asset | Volatility Rate - Equity | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.32 | 0.31 | |
GMIB Reinsurance Contract Asset | Volatility Rate - Equity | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.24 | 0.24 | |
GMIB Reinsurance Contract Asset | Mortality Rate | Discounted cash flow | Ages 0 - 40 | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0001 | 0.0001 | |
GMIB Reinsurance Contract Asset | Mortality Rate | Discounted cash flow | Ages 0 - 40 | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0017 | 0.0017 | |
GMIB Reinsurance Contract Asset | Mortality Rate | Discounted cash flow | Ages 0 - 40 | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0309 | 0.0279 | |
GMIB Reinsurance Contract Asset | Mortality Rate | Discounted cash flow | Ages 41 - 60 | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0006 | 0.0006 | |
GMIB Reinsurance Contract Asset | Mortality Rate | Discounted cash flow | Ages 41 - 60 | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0052 | 0.0053 | |
GMIB Reinsurance Contract Asset | Mortality Rate | Discounted cash flow | Ages 41 - 60 | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0309 | 0.0279 | |
GMIB Reinsurance Contract Asset | Mortality Rate | Discounted cash flow | Ages 61 - 115 | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0032 | 0.000031 | |
GMIB Reinsurance Contract Asset | Mortality Rate | Discounted cash flow | Ages 61 - 115 | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.4000 | 0.004000 | |
GMIB Reinsurance Contract Asset | Mortality Rate | Discounted cash flow | Ages 61 - 115 | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0309 | 0.0279 | |
Amounts Due from Reinsurers | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 4,114 | $ 5,813 | |
Amounts Due from Reinsurers | Lapse Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0026 | 0.0045 | |
Amounts Due from Reinsurers | Lapse Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.2623 | 0.2086 | |
Amounts Due from Reinsurers | Lapse Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0201 | 0.0170 | |
Amounts Due from Reinsurers | Withdrawal Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0006 | 0.0027 | |
Amounts Due from Reinsurers | Withdrawal Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.1093 | 0.0866 | |
Amounts Due from Reinsurers | Withdrawal Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0132 | 0.0118 | |
Amounts Due from Reinsurers | Utilization Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0004 | 0.0004 | |
Amounts Due from Reinsurers | Utilization Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.6230 | 0.6044 | |
Amounts Due from Reinsurers | Utilization Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0795 | 0.0720 | |
Amounts Due from Reinsurers | Non-Performance Risk | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0051 | 0.0037 | |
Amounts Due from Reinsurers | Non-Performance Risk | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0051 | 37 | |
Amounts Due from Reinsurers | Volatility Rate - Equity | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.14 | 0.11 | |
Amounts Due from Reinsurers | Volatility Rate - Equity | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.32 | 0.31 | |
Amounts Due from Reinsurers | Volatility Rate - Equity | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.24 | 0.24 | |
Amounts Due from Reinsurers | Mortality Rate | Discounted cash flow | Ages 0 - 40 | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0001 | 0.0001 | |
Amounts Due from Reinsurers | Mortality Rate | Discounted cash flow | Ages 0 - 40 | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0017 | 0.0017 | |
Amounts Due from Reinsurers | Mortality Rate | Discounted cash flow | Ages 0 - 40 | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0233 | 0.0217 | |
Amounts Due from Reinsurers | Mortality Rate | Discounted cash flow | Ages 41 - 60 | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0006 | 0.0006 | |
Amounts Due from Reinsurers | Mortality Rate | Discounted cash flow | Ages 41 - 60 | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0052 | 0.0053 | |
Amounts Due from Reinsurers | Mortality Rate | Discounted cash flow | Ages 41 - 60 | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0233 | 0.0217 | |
Amounts Due from Reinsurers | Mortality Rate | Discounted cash flow | Ages 61 - 115 | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0032 | 0.0031 | |
Amounts Due from Reinsurers | Mortality Rate | Discounted cash flow | Ages 61 - 115 | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.4000 | 0.4000 | |
Amounts Due from Reinsurers | Mortality Rate | Discounted cash flow | Ages 61 - 115 | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0233 | 0.0217 | |
GMIB NLG | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 5,761 | $ 8,503 | |
GMIB NLG | Lapse Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0026 | 0.000104 | |
GMIB NLG | Lapse Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.3542 | 0.2357 | |
GMIB NLG | Lapse Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0426 | 0.0355 | |
GMIB NLG | Withdrawal Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0006 | 0.000027 | |
GMIB NLG | Withdrawal Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.1093 | 0.0866 | |
GMIB NLG | Withdrawal Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0125 | 0.0104 | |
GMIB NLG | Non-Performance Risk | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0147 | 0.0111 | |
GMIB NLG | Non-Performance Risk | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0147 | 1.11 | |
GMIB NLG | Mortality Rate | Discounted cash flow | Ages 0 - 40 | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0001 | 0.00 | |
GMIB NLG | Mortality Rate | Discounted cash flow | Ages 0 - 40 | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0018 | 0.0019 | |
GMIB NLG | Mortality Rate | Discounted cash flow | Ages 0 - 40 | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0173 | 0.0162 | |
GMIB NLG | Mortality Rate | Discounted cash flow | Ages 41 - 60 | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0007 | 0.0007 | |
GMIB NLG | Mortality Rate | Discounted cash flow | Ages 41 - 60 | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0054 | 0.0057 | |
GMIB NLG | Mortality Rate | Discounted cash flow | Ages 41 - 60 | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0173 | 0.0162 | |
GMIB NLG | Mortality Rate | Discounted cash flow | Ages 61 - 115 | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0042 | 0.000044 | |
GMIB NLG | Mortality Rate | Discounted cash flow | Ages 61 - 115 | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.4142 | 0.4360 | |
GMIB NLG | Mortality Rate | Discounted cash flow | Ages 61 - 115 | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0173 | 0.0162 | |
GMIB NLG | Annuitization Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0004 | 0.00 | |
GMIB NLG | Annuitization Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 1 | 1 | |
GMIB NLG | Annuitization Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0595 | 0.0524 | |
GWBL/GMWB | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 70 | $ 99 | |
GWBL/GMWB | Lapse Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0035 | 0.000060 | |
GWBL/GMWB | Lapse Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.2623 | 0.2086 | |
GWBL/GMWB | Lapse Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0305 | 0.00000265 | |
GWBL/GMWB | Withdrawal Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0 | 0 | |
GWBL/GMWB | Withdrawal Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0800 | 0.00000800 | |
GWBL/GMWB | Withdrawal Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0099 | 0.0000 | |
GWBL/GMWB | Utilization Rate | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 1 | 1 | |
GWBL/GMWB | Non-Performance Risk | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0147 | 0.0111 | |
GWBL/GMWB | Volatility Rate - Equity | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.14 | 0.11 | |
GWBL/GMWB | Volatility Rate - Equity | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.32 | 0.31 | |
GWBL/GMWB | Volatility Rate - Equity | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.24 | 0.24 | |
GIB | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ (65) | $ (75) | |
GIB | Lapse Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0035 | 0.0060 | |
GIB | Lapse Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.2623 | 0.2086 | |
GIB | Lapse Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0305 | 0.0265 | |
GIB | Withdrawal Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0020 | 0.0013 | |
GIB | Withdrawal Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0124 | 0.0866 | |
GIB | Withdrawal Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0099 | 0.0093 | |
GIB | Utilization Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0004 | 0.0004 | |
GIB | Utilization Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 1 | 0.010000 | |
GIB | Utilization Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0540 | 0.0527 | |
GIB | Non-Performance Risk | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0147 | 0.0111 | |
GIB | Volatility Rate - Equity | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.14 | 0.11 | |
GIB | Volatility Rate - Equity | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.32 | 0.31 | |
GIB | Volatility Rate - Equity | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.24 | 0.24 | |
GMAB | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ (2) | $ (3) | |
GMAB | Lapse Rate | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0035 | 0.000060 | |
GMAB | Lapse Rate | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.2623 | 0.2086 | |
GMAB | Lapse Rate | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0305 | 0.0265 | |
GMAB | Non-Performance Risk | Discounted cash flow | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0147 | 0.0111 | |
GMAB | Volatility Rate - Equity | Discounted cash flow | Minimum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.14 | 0.11 | |
GMAB | Volatility Rate - Equity | Discounted cash flow | Maximum | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.32 | 0.31 | |
GMAB | Volatility Rate - Equity | Discounted cash flow | Weighted Average | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.24 | 0.24 |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | [1] | $ 16,481 | $ 14,033 | |
Policy loans | 4,033 | 4,024 | ||
Policyholders liabilities: Investment contracts | 83,855 | 79,357 | $ 66,820 | |
Separate Accounts liabilities | 114,853 | 147,306 | ||
Short-term debt | 759 | 92 | ||
Carrying Value | ||||
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | 16,481 | 14,033 | ||
Policy loans | 4,033 | 4,024 | ||
Policyholders liabilities: Investment contracts | 1,916 | 2,035 | ||
FHLB funding agreements | 8,505 | 6,647 | ||
FABN funding agreements | 7,095 | 6,689 | ||
Short-term Debt, Fair Value | 520 | |||
Long-term debt | 3,322 | 3,839 | ||
Separate Accounts liabilities | 10,236 | 11,620 | ||
Carrying Value | CLO Warehouse Debt | ||||
Consolidated Amounts [Abstract] | ||||
Short-term debt | 239 | 92 | ||
Measured at Fair Value | ||||
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | 14,690 | 14,308 | ||
Policy loans | 4,349 | 5,050 | ||
Policyholders liabilities: Investment contracts | 1,750 | 2,103 | ||
FHLB funding agreements | 8,390 | 6,679 | ||
FABN funding agreements | 6,384 | 6,626 | ||
Short-term Debt, Fair Value | 518 | |||
Long-term debt | 3,130 | 4,544 | ||
Separate Accounts liabilities | 10,236 | 11,620 | ||
Measured at Fair Value | Level 1 | ||||
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Policyholders liabilities: Investment contracts | 0 | 0 | ||
FHLB funding agreements | 0 | 0 | ||
FABN funding agreements | 0 | 0 | ||
Short-term Debt, Fair Value | 0 | |||
Long-term debt | 0 | 0 | ||
Separate Accounts liabilities | 0 | 0 | ||
Measured at Fair Value | Level 2 | ||||
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Policyholders liabilities: Investment contracts | 0 | 0 | ||
FHLB funding agreements | 8,390 | 6,679 | ||
FABN funding agreements | 6,384 | 6,626 | ||
Short-term Debt, Fair Value | 518 | |||
Long-term debt | 3,130 | 4,544 | ||
Separate Accounts liabilities | 0 | 0 | ||
Measured at Fair Value | Level 3 | ||||
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | 14,690 | 14,308 | ||
Policy loans | 4,349 | 5,050 | ||
Policyholders liabilities: Investment contracts | 1,750 | 2,103 | ||
FHLB funding agreements | 0 | 0 | ||
FABN funding agreements | 0 | 0 | ||
Short-term Debt, Fair Value | 0 | |||
Long-term debt | 0 | 0 | ||
Separate Accounts liabilities | $ 10,236 | $ 11,620 | ||
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs. |
INSURANCE LIABILITIES - Rollfor
INSURANCE LIABILITIES - Rollforward of Liability and Reinsurance Ceded (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
GMDB Direct | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Opening Balance | $ 5,242 | $ 4,951 | $ 5,097 | $ 4,780 |
Paid guarantee benefits | (595) | (461) | (495) | |
Other changes in reserve | 886 | 315 | 812 | |
Impact of the Venerable transaction | 0 | |||
Closing Balance | 5,242 | 4,951 | 5,097 | 4,780 |
GMDB Assumed | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Opening Balance | 0 | 0 | 72 | 76 |
Paid guarantee benefits | 0 | (12) | (22) | |
Other changes in reserve | 0 | 14 | 18 | |
Impact of the Venerable transaction | (74) | |||
Closing Balance | 0 | 0 | 72 | 76 |
GMDB Ceded | ||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||
Opening Balance | (2,216) | (88) | (104) | |
Paid guarantee benefits | 249 | 113 | 15 | |
Other changes in reserve | (359) | (65) | 1 | |
Impact of the Venerable transaction | (2,176) | |||
Ending Balance | (2,326) | (2,216) | (88) | |
GMIB Direct | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Opening Balance | 5,626 | 5,892 | 6,026 | 4,673 |
Paid guarantee benefits | (602) | (377) | (293) | |
Other changes in reserve | 336 | 243 | 1,646 | |
Impact of the Venerable transaction | 0 | |||
Closing Balance | 5,626 | 5,892 | 6,026 | 4,673 |
GMIB Assumed | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Opening Balance | 0 | 0 | 196 | 187 |
Paid guarantee benefits | 0 | (49) | 15 | |
Other changes in reserve | 0 | (7) | (6) | |
Impact of the Venerable transaction | (140) | |||
Closing Balance | 0 | 0 | 196 | $ 187 |
GMIB Ceded | ||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||
Opening Balance | (3,968) | (2,488) | (2,139) | |
Paid guarantee benefits | 76 | 58 | 79 | |
Other changes in reserve | 646 | 603 | (428) | |
Impact of the Venerable transaction | (2,141) | |||
Ending Balance | $ (3,246) | $ (3,968) | $ (2,488) |
INSURANCE LIABILITIES - Variabl
INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features and Buybacks (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | $ 82,716 | $ 107,577 |
GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | 47,530 | $ 63,276 |
Direct Variable Annuity | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 17,178 | |
Separate Accounts | 82,716 | |
Total Account Values | 99,894 | |
NAR, gross | 27,105 | |
NAR, net of amounts reinsured | $ 15,827 | |
Average attained age of contract holders (in years) | 55 years 3 months 18 days | |
Percentage of policyholders over age 70 | 21.10% | |
Direct Variable Annuity | GMDB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3% | |
Direct Variable Annuity | GMDB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Direct Variable Annuity | GMDB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 16,891 | |
Separate Accounts | 47,608 | |
Total Account Values | 64,499 | |
NAR, gross | 739 | |
NAR, net of amounts reinsured | $ 726 | |
Average attained age of contract holders (in years) | 51 years 7 months 6 days | |
Percentage of policyholders over age 70 | 12.10% | |
Direct Variable Annuity | GMDB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 97 | |
Separate Accounts | 7,445 | |
Total Account Values | 7,542 | |
NAR, gross | 1,422 | |
NAR, net of amounts reinsured | $ 1,291 | |
Average attained age of contract holders (in years) | 69 years 9 months 18 days | |
Percentage of policyholders over age 70 | 52.80% | |
Direct Variable Annuity | GMDB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 46 | |
Separate Accounts | 2,452 | |
Total Account Values | 2,498 | |
NAR, gross | 1,843 | |
NAR, net of amounts reinsured | $ 1,341 | |
Average attained age of contract holders (in years) | 76 years 1 month 6 days | |
Percentage of policyholders over age 70 | 74.70% | |
Direct Variable Annuity | GMDB | Roll-Up | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3% | |
Direct Variable Annuity | GMDB | Roll-Up | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6% | |
Direct Variable Annuity | GMDB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 144 | |
Separate Accounts | 25,211 | |
Total Account Values | 25,355 | |
NAR, gross | 23,101 | |
NAR, net of amounts reinsured | $ 12,469 | |
Average attained age of contract holders (in years) | 71 years 9 months 18 days | |
Percentage of policyholders over age 70 | 60.70% | |
Direct Variable Annuity | GMDB | Combo | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3% | |
Direct Variable Annuity | GMDB | Combo | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Direct Variable Annuity | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 202 | |
Separate Accounts | 47,530 | |
Total Account Values | 47,732 | |
NAR, gross | 8,029 | |
NAR, net of amounts reinsured | $ 3,228 | |
Average attained age of contract holders (in years) | 69 years 2 months 12 days | |
Weighted average years remaining until annuitization (in years) | 2 years 4 months 24 days | |
Direct Variable Annuity | GMIB | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3% | |
Direct Variable Annuity | GMIB | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% | |
Direct Variable Annuity | GMIB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 0 | |
Total Account Values | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | 0 | |
Direct Variable Annuity | GMIB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 0 | |
Separate Accounts | 0 | |
Total Account Values | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | 0 | |
Direct Variable Annuity | GMIB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 14 | |
Separate Accounts | 21,001 | |
Total Account Values | 21,015 | |
NAR, gross | 489 | |
NAR, net of amounts reinsured | $ 157 | |
Average attained age of contract holders (in years) | 65 years 9 months 18 days | |
Weighted average years remaining until annuitization (in years) | 5 years 4 months 24 days | |
Direct Variable Annuity | GMIB | Roll-Up | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3% | |
Direct Variable Annuity | GMIB | Roll-Up | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6% | |
Direct Variable Annuity | GMIB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 188 | |
Separate Accounts | 26,529 | |
Total Account Values | 26,717 | |
NAR, gross | 7,540 | |
NAR, net of amounts reinsured | $ 3,071 | |
Average attained age of contract holders (in years) | 71 years 4 months 24 days | |
Weighted average years remaining until annuitization (in years) | 6 months | |
Direct Variable Annuity | GMIB | Combo | Minimum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 3% | |
Direct Variable Annuity | GMIB | Combo | Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 6.50% |
INSURANCE LIABILITIES - Separat
INSURANCE LIABILITIES - Separate Account Investments, Hedging Programs and Variable and Interest-Sensitive Live Insurance Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | $ 82,716 | $ 107,577 | |
GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 47,530 | 63,276 | |
Direct Liabilities For Guarantees | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Opening Balance | 1,096 | 1,022 | $ 898 |
Paid guarantee benefits | (79) | (84) | (39) |
Other changes in reserves | 145 | 158 | 163 |
Closing Balance | 1,162 | 1,096 | $ 1,022 |
Equity | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 39,779 | 52,771 | |
Equity | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 14,075 | 20,015 | |
Fixed income | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 4,416 | 5,391 | |
Fixed income | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 1,964 | 2,507 | |
Balanced | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 37,398 | 48,390 | |
Balanced | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 31,240 | 40,491 | |
Other | GMDB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | 1,123 | 1,025 | |
Other | GMIB | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Separate Accounts | $ 251 | $ 263 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 USD ($) ft² | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2020 USD ($) ft² | Apr. 30, 2019 USD ($) ft² | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease liabilities | $ | $ 768 | $ 618 | ||
New York City | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 15 years | |||
Area of property, option to decrease (in sq. ft.) | 89,000 | |||
Syracuse, NY | ||||
Lessee, Lease, Description [Line Items] | ||||
Area of property (in sq. ft.) | 143,000 | |||
Lease term, additional | 5 years | |||
Alliance Bernstein (AB) | New York City | ||||
Lessee, Lease, Description [Line Items] | ||||
Area of property (in sq. ft.) | 190,000 | |||
Lease term | 20 years | |||
Operating lease liabilities | $ | $ 448 | |||
Area of property, option to decrease, exercised (in sq. ft.) | 166,000 | |||
Operating lease, liability, option exercised | $ | $ 393 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 15 years |
LEASES - Balance Sheet Classifi
LEASES - Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease assets [Extensible Enumeration] | Other assets | Other assets |
Operating lease assets | $ 520 | $ 637 |
Operating lease liabilities [Extensible Enumeration] | Other liabilities | Other liabilities |
Operating lease liabilities | $ 618 | $ 768 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 179 | $ 173 | $ 169 |
Variable operating lease cost | 52 | 49 | 49 |
Sublease income | (53) | (55) | (56) |
Short-term lease expense | 0 | 0 | 0 |
Net lease cost | $ 178 | $ 167 | $ 162 |
LEASES - Lease Maturities (Deta
LEASES - Lease Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases: | ||
2023 | $ 186 | |
2024 | 144 | |
2025 | 69 | |
2026 | 61 | |
2027 | 52 | |
Thereafter | 170 | |
Total lease payments | 682 | |
Less: Interest | (64) | |
Present value of lease liabilities | $ 618 | $ 768 |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Weighted-average remaining operating lease term | 7 years | 7 years | |
Weighted-average discount rate for operating leases | 2.77% | 2.80% | |
Operating cash flows from operating leases | $ 202 | $ 209 | $ 210 |
Right-of-use assets obtained in exchange for lease obligations | $ 46 | $ 109 | $ 156 |
REINSURANCE - Effects of Reinsu
REINSURANCE - Effects of Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Premiums | |||
Direct premiums | $ 1,042 | $ 970 | $ 929 |
Reinsurance assumed | 180 | 189 | 222 |
Reinsurance ceded | (228) | (199) | (154) |
Premiums | 994 | 960 | 997 |
Direct charges and fee income | 3,932 | 4,250 | 4,149 |
Reinsurance ceded | (691) | (613) | (414) |
Policy charges and fee income | 3,241 | 3,637 | 3,735 |
Direct policyholders’ benefits | 4,371 | 3,843 | 5,826 |
Reinsurance assumed | 209 | 238 | 241 |
Reinsurance ceded | (1,195) | (863) | (741) |
Policyholders’ benefits | 3,385 | 3,218 | 5,326 |
Direct interest credited to policyholders’ account balances | 1,433 | 1,271 | 1,252 |
Reinsurance ceded | (24) | (52) | (30) |
Interest credited to policyholders’ account balances | $ 1,409 | $ 1,219 | $ 1,222 |
REINSURANCE - Additional Inform
REINSURANCE - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 03, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Reinsurance, per life, single lives, amount retained | $ 25,000 | ||
Reinsurance, per life, joint lives, amount retained | $ 30,000 | ||
Reinsurance retention policy, percentage of excess reinsured | 100% | ||
Number of Employees, Total | Reinsurance Transaction | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Deferred variable annuity | $ 360 | ||
Number of Employees, Total | Reinsurance Transaction | Global Atlantic Transaction | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Concentration risk, percentage | 50% | ||
GMDB | Third-party | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Exposure reinsured percentage | 41.60% | 47.60% | |
GMIB | Third-party | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Exposure reinsured percentage | 59.80% | 59.80% |
REINSURANCE - Ceded Reinsurance
REINSURANCE - Ceded Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Estimated net fair values of ceded GMIB reinsurance contracts, considered derivatives | $ 1,229 | $ 1,848 | ||
Estimated net fair values of ceded GMIB NLG ceded reserves to Venerable | 4,114 | 5,813 | ||
Third-party reinsurance recoverables related to insurance contracts | [1] | 17,201 | 14,679 | |
Amount due to reinsurers | 1,533 | 1,381 | ||
Increase (decrease) in the fair value of the reinsurance contracts | (619) | (640) | $ 349 | |
Group Life And Health Insurance | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance recoverables related to insurance contracts | 47 | 40 | ||
Reinsurance assumed reserves | 662 | 798 | ||
Venerable Insurance and Annuity Company (A- KBRA (IFRS) rating) | A - | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance recoverables related to insurance contracts | 8,966 | 10,291 | ||
First Allmerica-GAF | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Amount due to reinsurers | 147 | 0 | ||
First Allmerica-GAF | Global Assessment Of Functioning Scale | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance recoverables related to insurance contracts | 4,005 | |||
RGA Reinsurance Company | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Amount due to reinsurers | 1,171 | 1,212 | ||
RGA Reinsurance Company | AA- | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance recoverables related to insurance contracts | 1,272 | 1,138 | ||
Zurich Life Insurance Company, Ltd. | AA- | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance recoverables related to insurance contracts | 1,181 | 1,318 | ||
Protective Life Insurance Company | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Amount due to reinsurers | $ 104 | $ 111 | ||
[1]Represents the fair value of the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction and Note 8 of the Notes to these Consolidated Financial Statements. |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Summary of Short and Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total short-term debt | $ 759 | $ 92 |
Total long-term debt | 3,322 | 3,839 |
Total borrowings | 4,081 | 3,931 |
Senior Notes (3.9%, due 2023) | ||
Debt Instrument [Line Items] | ||
Total short-term debt | 520 | 0 |
Senior Notes | Senior Notes (5.00%, due 2048) | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,481 | 1,481 |
Debt instrument, stated percentage | 5% | |
Senior Notes | Senior Notes (4.35%, due 2028) | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,491 | 1,490 |
Debt instrument, stated percentage | 4.35% | |
Senior Notes | Senior Notes (3.9%, due 2023) | ||
Debt Instrument [Line Items] | ||
Total short-term debt | $ 0 | 519 |
Debt instrument, stated percentage | 3.90% | |
Senior Notes | Senior Debentures, (7.0%, due 2028) | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 350 | 349 |
Debt instrument, stated percentage | 7% | |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 349 | $ 349 |
Debt instrument, stated percentage | 7% | 7% |
CLO Warehouse Debt | ||
Debt Instrument [Line Items] | ||
Total short-term debt | $ 239 | $ 92 |
Debt instrument, stated percentage | 5.74% |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT - Short-term Debt Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Apr. 20, 2018 | |
Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 17,000,000 | ||
Commercial Paper | AB Commercial Paper | |||
Short-term Debt [Line Items] | |||
Short-term debt including accrued interest | 0 | $ 0 | |
Average outstanding balance | $ 190,000,000 | $ 157,000,000 | |
Weighted average interest rate over period | 1.50% | 0.20% | |
Line of Credit | AB Revolving Credit Facility | Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | ||
Average outstanding amount | $ 13,000,000 | ||
Interest rate | 1.10% | ||
Senior Notes | Senior Notes (3.9%, due 2023) | |||
Short-term Debt [Line Items] | |||
Short-term debt including accrued interest | $ 800,000,000 | ||
Debt instrument, stated percentage | 3.90% | ||
Repayments of short-term debt | $ 280,000,000 | ||
Senior Notes | Senior Notes (4.35%, due 2028) | |||
Short-term Debt [Line Items] | |||
Debt instrument, stated percentage | 4.35% | ||
Debt instrument, face amount | $ 1,500,000,000 | ||
Senior Notes | Senior Notes (5.00%, due 2048) | |||
Short-term Debt [Line Items] | |||
Debt instrument, stated percentage | 5% | ||
Debt instrument, face amount | $ 1,500,000,000 |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBT - Long-term Debt Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,322 | $ 3,839 |
Senior Notes | Senior Debentures, (7.0%, due 2028) | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 350 | 349 |
Debt instrument, stated percentage | 7% | |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 349 | $ 349 |
Debt instrument, stated percentage | 7% | 7% |
SHORT-TERM AND LONG-TERM DEBT_4
SHORT-TERM AND LONG-TERM DEBT - Credit Facility Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 USD ($) | Dec. 31, 2022 USD ($) uncommittedLineOfCredit financialInstitution | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | |
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 17,000,000 | |||
Holdings Revolving Credit Facility | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | $ 1,500,000,000 | ||
Debt instrument, term | 5 years | |||
Holdings Revolving Credit Facility | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | 1,500,000,000 | ||
Remaining capacity | 225,000,000 | |||
Bilateral Letter Of Credit Facilities | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,900,000,000 | |||
AB Committed Unsecured Senior Revolving Credit Facility | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 800,000,000 | |||
Incremental borrowing base | 200,000,000 | |||
AB Uncommitted Line of Credit | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Letters of credit outstanding | $ 0 | $ 0 | ||
SCB Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Number of uncommitted line of credit | uncommittedLineOfCredit | 5 | |||
Number of financial institutions | financialInstitution | 5 | |||
SCB Line of Credit | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 315,000,000 | |||
Letters of credit outstanding | $ 0 | 0 | ||
Number of uncommitted line of credit | uncommittedLineOfCredit | 4 | |||
Average outstanding amount | $ 1,000,000 | $ 47,000 | ||
Interest rate | 3.70% | 0.90% |
RELATED PARTY TRANSACTIONS - In
RELATED PARTY TRANSACTIONS - Investment Management and Service Fees Related to AB (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Investment management and service fees | $ 4,891 | $ 5,395 | $ 4,608 |
Alliance Bernstein | |||
Related Party Transaction [Line Items] | |||
Investment management and service fees | 1,453 | 1,645 | 1,368 |
Distribution revenues | 591 | 637 | 516 |
Other revenues - shareholder servicing fees | 79 | 86 | 79 |
Other revenues - other | 8 | 8 | 8 |
Total | $ 2,131 | $ 2,376 | $ 1,971 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Payments for other fees | $ 4 | ||
Equitable Affiliates | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 708 | 840 | $ 724 |
Equitable Affiliates | Investment management and administrative services provided to EQAT, EQ Premier VIP Trust, 1290 Funds (1) | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 708 | $ 840 | $ 724 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Life insurance, corporate or bank owned, amount | $ 886 | $ 1,000 | |
Unfunded Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
PBO in excess of plan assets | $ 144 | $ 93 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, actual plan asset allocations (as a percent) | 100% | 100% | |
Pension Benefits | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Life insurance, corporate or bank owned, amount | $ 886 | $ 1,000 | |
Benefits paid | $ 190 | $ 198 | |
Pension Benefits | Qualified Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, actual plan asset allocations (as a percent) | 18.20% | 23.40% | |
Pension Benefits | Qualified Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, actual plan asset allocations (as a percent) | 53.50% | 55.40% | |
Pension Benefits | Qualified Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, actual plan asset allocations (as a percent) | 0% | 0% | |
Post-retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits paid | $ 20 | $ 28 | |
Post-retirement Plans | Executive Survivor Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit cap | 25 | ||
Post-employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, liability | 2 | 3 | |
AXA Equitable 401(k) Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses recognized | 38 | 64 | $ 49 |
AXA Equitable Life QP - Pre-1987 | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits paid | $ 3 | $ 4 |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 6 | $ 6 | $ 6 |
Interest cost | 57 | 46 | 77 |
Expected return on assets | (159) | (154) | (147) |
Actuarial (gain) loss | 1 | 1 | 1 |
Net amortization | 65 | 99 | 103 |
Impact of settlement | 6 | 6 | 7 |
Net Periodic Pension Expense | (24) | 4 | 47 |
Post-retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 2 |
Interest cost | 10 | 8 | 13 |
Net amortization | 6 | 9 | 9 |
Net Periodic Pension Expense | 18 | 19 | 24 |
Post-employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1 | 1 |
Interest cost | 0 | 0 | 0 |
Net amortization | 0 | 0 | (5) |
Net (gain) loss | 0 | 0 | 0 |
Net Periodic Pension Expense | $ 1 | $ 1 | $ (4) |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Change in Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | $ 2,900 | ||
Projected benefit obligation, end of year | 2,254 | $ 2,900 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Pension plan assets at fair value, beginning of year | 2,808 | ||
Pension plan assets at fair value, end of year | 2,110 | 2,808 | |
Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | 6 | 6 | $ 6 |
Interest cost | 57 | 46 | 77 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Pension plan assets at fair value, beginning of year | 2,808 | 2,744 | |
Actual return on plan assets | (515) | 259 | |
Benefits paid | (158) | (165) | |
Annuity purchases | (25) | (30) | |
Pension plan assets at fair value, end of year | 2,110 | 2,808 | 2,744 |
PBO | 2,254 | 2,900 | |
Excess of PBO over pension plan assets, end of year | 144 | 92 | |
Post-retirement Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | 466 | 516 | |
Service cost | 2 | 2 | 2 |
Interest cost | 10 | 8 | 13 |
Contributions and benefits paid | (20) | (28) | |
Actuarial (gains)/losses | (109) | (32) | |
Benefits paid | (20) | (28) | |
Projected benefit obligation, end of year | 349 | 466 | 516 |
Qualified Plan | Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | 2,900 | 3,180 | |
Interest cost | 57 | 45 | |
Actuarial (gains)/losses | (487) | (95) | |
Benefits paid | (190) | (198) | |
Settlements | (26) | (32) | |
Projected benefit obligation, end of year | 2,254 | 2,900 | $ 3,180 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Pension plan assets at fair value, beginning of year | 2,805 | ||
Pension plan assets at fair value, end of year | $ 2,117 | $ 2,805 |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Postemployment Benefits [Abstract] | ||
Projected benefit obligation | $ 2,254 | $ 2,900 |
Accumulated benefit obligation | 2,254 | 2,900 |
Fair value of plan assets | $ 2,110 | $ 2,808 |
EMPLOYEE BENEFIT PLANS - Unreco
EMPLOYEE BENEFIT PLANS - Unrecognized Net Actuarial (Gain) Loss (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net actuarial (gain) loss | $ 744 | $ 620 |
Unrecognized prior service cost (credit) | (1) | (1) |
Total | 743 | 619 |
Post-retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net actuarial (gain) loss | 17 | 135 |
Unrecognized prior service cost (credit) | (24) | (26) |
Total | $ (7) | $ 109 |
EMPLOYEE BENEFIT PLANS - Asset
EMPLOYEE BENEFIT PLANS - Asset Allocations (Details) - Pension Benefits | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 100% | 100% |
Fixed maturities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 46.40% | 47.20% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 21.40% | 29.70% |
Equity real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 22.60% | 16.50% |
Cash and short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 4% | 2.50% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 5.60% | 4.10% |
EMPLOYEE BENEFIT PLANS - Fair_2
EMPLOYEE BENEFIT PLANS - Fair Value and Level 3 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 2,110 | $ 2,808 | |
NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 600 | 594 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2,110 | 2,808 | $ 2,744 |
Qualified Plan | Public corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 619 | 842 | |
Qualified Plan | Public corporate | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Public corporate | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 619 | 842 | |
Qualified Plan | U.S. government, agencies and authorities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 336 | 426 | |
Qualified Plan | U.S. government, agencies and authorities | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | U.S. government, agencies and authorities | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 336 | 426 | |
Qualified Plan | States and political subdivisions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 8 | 16 | |
Qualified Plan | States and political subdivisions | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | States and political subdivisions | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 8 | 16 | |
Qualified Plan | Foreign governments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 15 | 18 | |
Qualified Plan | Foreign governments | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Foreign governments | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 15 | 18 | |
Qualified Plan | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2,117 | 2,805 | |
Qualified Plan | Pension Benefits | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 385 | 657 | |
Qualified Plan | Pension Benefits | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1,132 | 1,555 | |
Qualified Plan | Pension Benefits | Level 3 | Private Real Estate Investment Trusts | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |||
Beginning Balance | 0 | 0 | 0 |
Actual return on plan assets — Sales/Settlements | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Qualified Plan | Pension Benefits | Level 3 | Other Equity Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |||
Beginning Balance | 0 | 0 | 0 |
Actual return on plan assets — Sales/Settlements | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Qualified Plan | Pension Benefits | Level 3 | Fixed maturities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |||
Beginning Balance | (1) | 0 | 1 |
Actual return on plan assets — Sales/Settlements | (1) | (1) | (1) |
Ending Balance | (2) | (1) | $ 0 |
Qualified Plan | Pension Benefits | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1,517 | 2,212 | |
Qualified Plan | Pension Benefits | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 600 | 593 | |
Qualified Plan | Pension Benefits | Common equity, REITs and preferred equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 367 | 684 | |
Qualified Plan | Pension Benefits | Common equity, REITs and preferred equity | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 308 | 576 | |
Qualified Plan | Pension Benefits | Common equity, REITs and preferred equity | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 59 | 108 | |
Qualified Plan | Pension Benefits | Mutual funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 30 | 62 | |
Qualified Plan | Pension Benefits | Mutual funds | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 30 | 62 | |
Qualified Plan | Pension Benefits | Mutual funds | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Pension Benefits | Collective Trust | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 61 | 99 | |
Qualified Plan | Pension Benefits | Collective Trust | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Pension Benefits | Collective Trust | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 61 | 99 | |
Qualified Plan | Pension Benefits | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 47 | 19 | |
Qualified Plan | Pension Benefits | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 47 | 19 | |
Qualified Plan | Pension Benefits | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Pension Benefits | Short-term investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 34 | 46 | |
Qualified Plan | Pension Benefits | Short-term investments | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Pension Benefits | Short-term investments | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 34 | $ 46 |
EMPLOYEE BENEFIT PLANS - Practi
EMPLOYEE BENEFIT PLANS - Practical Expedient Disclosures (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 2,110 | $ 2,808 |
NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 600 | 594 |
Equity method investments | 111 | 109 |
Private Equity Funds | NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 79 | 72 |
Unfunded Commitments | 16 | 19 |
Private Real Estate Investment Fund | NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 468 | 457 |
Unfunded Commitments | 0 | 0 |
Hedge Funds | NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 53 | 65 |
Unfunded Commitments | $ 10 | $ 5 |
EMPLOYEE BENEFIT PLANS - Assump
EMPLOYEE BENEFIT PLANS - Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Rates of compensation increase: Benefit obligation (as a percent) | 5.96% | 5.97% |
Rates of compensation increase: Periodic cost (as a percent) | 6.37% | 6.33% |
Expected long-term rates of return on pension plan assets (periodic cost) (as a percent) | 6.25% | 6.25% |
Following year | 5.40% | 5.10% |
Ultimate rate to which cost increase is assumed to decline | 3.90% | 4% |
Equitable Financial QP | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Benefits obligations (aggregate methodology) (as a percent) | 5.13% | 2.55% |
Equitable Excess Retirement Plan | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Benefits obligations (aggregate methodology) (as a percent) | 5.09% | 2.47% |
MONY Life Retirement Income Security Plan for Employees | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Benefits obligations (aggregate methodology) (as a percent) | 5.22% | 2.78% |
AB Qualified Retirement Plan | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 2.55% | |
Cash balance interest crediting rate for pre-April 1, 2012 accruals | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 4% | 4% |
Cash balance interest crediting rate for post-April 1, 2012 accruals | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 0.25% | 0.50% |
Minimum | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 4.84% | 1.18% |
Minimum | Post-retirement Plans | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Benefits obligations (aggregate methodology) (as a percent) | 5.07% | 2.43% |
Periodic cost (as a percent) | 2.71% | 2.34% |
Minimum | Other defined benefit plans | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 4.93% | 2.05% |
Maximum | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 5.20% | 2.78% |
Maximum | Post-retirement Plans | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Benefits obligations (aggregate methodology) (as a percent) | 5.20% | 2.72% |
Periodic cost (as a percent) | 4.58% | 2.52% |
Maximum | Other defined benefit plans | ||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||
Periodic cost (as a percent) | 5.22% | 2.78% |
EMPLOYEE BENEFIT PLANS - Future
EMPLOYEE BENEFIT PLANS - Future Obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Net Estimate Payment | |
2023 | $ 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 to 2032 | 0 |
Pension Benefits | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | 210,551 |
2024 | 245,066 |
2025 | 198,657 |
2026 | 188,175 |
2027 | 180,393 |
2028 to 2032 | 2,280,266 |
Life Insurance | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 to 2032 | 0 |
Health | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 to 2032 | 0 |
Estimated Medicare Part D Subsidy | |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 to 2032 | $ 0 |
SHARE-BASED COMPENSATION PROG_3
SHARE-BASED COMPENSATION PROGRAMS - Compensation Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expenses | $ 328 | $ 274 | $ 252 |
Income Tax Benefit | 68 | 58 | 52 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expenses | 31 | 17 | 11 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expenses | 1 | 0 | 7 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expenses | $ 296 | $ 257 | $ 234 |
SHARE-BASED COMPENSATION PROG_4
SHARE-BASED COMPENSATION PROGRAMS - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) tranche shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 1,340,926 | ||
Stock Options | Vesting trach one | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 33.33% | ||
Stock Options | Vesting tranche two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 33.33% | ||
Stock Options | Vesting tranche three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 33.33% | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 704,769 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ | $ 74 | ||
Compensation cost, recognition period | 2 months 12 days | ||
ROE Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of award type | 50% | ||
TSR Performance Share Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of award type | 50% | ||
Omnibus Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Holding unit-based awards authorized for grant (in shares) | 22,000,000 | ||
Annual Awards | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Annual Awards | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Annual Awards | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Share-based compensation arrangement by share-based payment award, number of distant tranches from performance shares | tranche | 2 | ||
Composition of performance shares, percentage representing a portion of the award | 50% | ||
Annual Awards | Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential shares earned, percentage | 0% | ||
Annual Awards | Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential shares earned, percentage | 200% | ||
2017 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Holding unit-based awards authorized for grant (in shares) | 60,000,000 | ||
2017 Plan | Newly Issued AB Holding Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Holding unit-based awards authorized for grant (in shares) | 30,000,000 | ||
Shares available for grant (in shares) | 30,200,000 | ||
Plan 2017 Subject to Other Holding Unit Awards | Newly Issued AB Holding Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 29,800,000 | ||
Parent | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost, recognition period | 1 year 7 months 20 days | ||
Unvested restricted shares and holding units (in shares) | 3,000,000 | ||
Compensation cost not yet recognized | $ | $ 33,000 | ||
Parent | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0 | ||
Compensation cost, recognition period | 1 year 6 months 10 days | ||
Unvested restricted shares and holding units (in shares) | 1,300,000 | ||
Compensation cost not yet recognized | $ | $ 10,000 | ||
Parent | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ | $ 113 | ||
Compensation cost, recognition period | 1 month 6 days | ||
Parent | AB Holding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost, recognition period | 6 years 1 month 6 days | ||
Unvested restricted shares and holding units (in shares) | 15,000,000 | ||
Compensation cost not yet recognized | $ | $ 114,000 | ||
Alliance Bernstein | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares repurchased (in shares) | 5,200,000 | 5,600,000 | 5,400,000 |
Payments for repurchase of other equity | $ | $ 212,000 | $ 262,000 | $ 149,000 |
Open market purchases (in shares) | 2,300,000 | 2,600,000 | 3,100,000 |
Open-market purchases, value | $ | $ 92,700 | $ 117,900 | $ 74,000 |
Shares issued in period (in shares) | 6,000 | 100,000 | 5,000 |
Proceeds from options exercised | $ | $ 100 | $ 3,000 | $ 147 |
Alliance Bernstein | Employees and Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued in period (in shares) | 4,700,000 | 7,000,000 | 5,700,000 |
SHARE-BASED COMPENSATION PROG_5
SHARE-BASED COMPENSATION PROGRAMS - Stock Option Activity (Details) - Parent € / shares in Units, $ / shares in Units, € in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) € / shares $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2021 € / shares shares | Dec. 31, 2022 EUR (€) € / shares shares | |
EQH Shares | |||||
Number Outstanding | |||||
Options, number outstanding, beginning balance (in shares) | 2,040,000 | 2,040,000 | |||
Options granted (in shares) | 0 | 0 | 0 | 0 | |
Options exercised (in shares) | (73,000) | (73,000) | |||
Options forfeited, net (in shares) | (24,000) | (24,000) | |||
Options expired (in shares) | 0 | 0 | |||
Options, number outstanding, ending balance (in shares) | 1,943,000 | 1,943,000 | 2,040,000 | 2,040,000 | |
Weighted Average Exercise Price | |||||
Options, weighted average exercise price, beginning balance (in dollars/euros per share) | $ / shares | $ 21.69 | ||||
Options granted, weighted average exercise price (in dollars/euros per share) | $ / shares | 0 | ||||
Options exercised, weighted average exercise price (in dollars/euros per share) | $ / shares | 18.05 | ||||
Options forfeited, net, weighted average exercise price (in dollars/euros per share) | $ / shares | 22.58 | ||||
Options expired, weighted average exercise price (in dollars/euros per share) | $ / shares | 0 | ||||
Options, weighted average exercise price, ending balance (in dollars/euros per share) | $ / shares | $ 21.75 | $ 21.69 | |||
Options outstanding, aggregate intrinsic value | $ | $ 5,895 | $ 5,895 | |||
Options exercisable (in shares) | 1,517,000 | 1,517,000 | 1,517,000 | ||
Options exercisable, weighted average exercise price (in dollars/euros per share) | $ / shares | $ 21.45 | $ 21.45 | |||
Options excercisable, aggregate intrinsic value | $ | $ 5,058 | $ 5,058 | |||
Weighted average remaining contractual term (in years) | 6 years 6 months 18 days | 6 years 6 months 18 days | |||
Weighted average remaining contractual term (in years) | 6 years 4 months 28 days | 6 years 4 months 28 days | |||
AB Holding Units | |||||
Number Outstanding | |||||
Options, number outstanding, beginning balance (in shares) | 5,774,000 | 5,774,000 | |||
Options granted (in shares) | 0 | 0 | |||
Options exercised (in shares) | (5,774,000) | (5,774,000) | |||
Options forfeited, net (in shares) | 0 | 0 | |||
Options expired (in shares) | 0 | 0 | |||
Options, number outstanding, ending balance (in shares) | 0 | 0 | 5,774,000 | 5,774,000 | |
Weighted Average Exercise Price | |||||
Options, weighted average exercise price, beginning balance (in dollars/euros per share) | $ / shares | $ 20,120 | ||||
Options granted, weighted average exercise price (in dollars/euros per share) | $ / shares | 0 | ||||
Options exercised, weighted average exercise price (in dollars/euros per share) | $ / shares | 20,120 | ||||
Options forfeited, net, weighted average exercise price (in dollars/euros per share) | $ / shares | 0 | ||||
Options expired, weighted average exercise price (in dollars/euros per share) | $ / shares | 0 | ||||
Options, weighted average exercise price, ending balance (in dollars/euros per share) | $ / shares | $ 0 | $ 20,120 | |||
Options outstanding, aggregate intrinsic value | $ | $ 0 | $ 0 | |||
Options exercisable (in shares) | 0 | 0 | 0 | ||
Options exercisable, weighted average exercise price (in dollars/euros per share) | $ / shares | $ 0 | $ 0 | |||
Options excercisable, aggregate intrinsic value | $ | $ 0 | $ 0 | |||
Weighted average remaining contractual term (in years) | 0 years | 0 years | |||
Weighted average remaining contractual term (in years) | 0 years | 0 years | |||
AXA Ordinary Shares | |||||
Number Outstanding | |||||
Options, number outstanding, beginning balance (in shares) | 874,000 | 874,000 | |||
Options granted (in shares) | 0 | 0 | |||
Options exercised (in shares) | (181,000) | (181,000) | |||
Options forfeited, net (in shares) | (27,000) | (27,000) | |||
Options expired (in shares) | 0 | 0 | |||
Options, number outstanding, ending balance (in shares) | 666,000 | 666,000 | 874,000 | 874,000 | |
Weighted Average Exercise Price | |||||
Options, weighted average exercise price, beginning balance (in dollars/euros per share) | € / shares | $ 22.39 | ||||
Options granted, weighted average exercise price (in dollars/euros per share) | € / shares | 0 | ||||
Options exercised, weighted average exercise price (in dollars/euros per share) | $ / shares | $ 0 | ||||
Options forfeited, net, weighted average exercise price (in dollars/euros per share) | $ / shares | $ 0 | ||||
Options expired, weighted average exercise price (in dollars/euros per share) | € / shares | 0 | ||||
Options, weighted average exercise price, ending balance (in dollars/euros per share) | € / shares | $ 22.95 | € 22.39 | |||
Options outstanding, aggregate intrinsic value | € | € 0 | ||||
Options exercisable (in shares) | 630,000 | 630,000 | 630,000 | ||
Options exercisable, weighted average exercise price (in dollars/euros per share) | € / shares | € 23.03 | ||||
Options excercisable, aggregate intrinsic value | € | € 0 | ||||
Weighted average remaining contractual term (in years) | 4 years | 4 years | |||
Weighted average remaining contractual term (in years) | 3 years 10 months 28 days | 3 years 10 months 28 days |
SHARE-BASED COMPENSATION PROG_6
SHARE-BASED COMPENSATION PROGRAMS - Fair Value Stock Option Assumptions (Details) - Parent - EQH Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0% | 0% | 2.59% |
Expected volatility | 0% | 0% | 26% |
Risk-free interest rates | 0% | 0% | 1.19% |
Expected life in years | 0 years | 6 years | |
Weighted average fair value per option at grant date (in dollars per share) | $ 0 | $ 0 | $ 4.37 |
Stock options granted (in shares) | 0 | 0 |
SHARE-BASED COMPENSATION PROG_7
SHARE-BASED COMPENSATION PROGRAMS - Restricted and Performance Stock Activity (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Restricted Stock Units | |
Awards | |
Unvested, Beginning Balance (in shares) | shares | 3,228,733 |
Granted (in shares) | shares | 1,340,926 |
Forfeited (in shares) | shares | (172,349) |
Vested (in shares) | shares | (1,608,145) |
Unvested, Ending Balance (in shares) | shares | 2,789,165 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 21.15 |
Granted (in dollars per share) | $ / shares | 33.28 |
Forfeited (in dollars per share) | $ / shares | 28.39 |
Vested (in dollars per share) | $ / shares | 23.03 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 29.46 |
Performance Shares | |
Awards | |
Unvested, Beginning Balance (in shares) | shares | 1,217,222 |
Granted (in shares) | shares | 704,769 |
Forfeited (in shares) | shares | (107,921) |
Vested (in shares) | shares | (486,475) |
Unvested, Ending Balance (in shares) | shares | 1,327,595 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 28.93 |
Granted (in dollars per share) | $ / shares | 33.01 |
Forfeited (in dollars per share) | $ / shares | 28.43 |
Vested (in dollars per share) | $ / shares | 23.89 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 32.98 |
Performance Shares | Parent | |
Awards | |
Unvested, Beginning Balance (in shares) | shares | 62,747 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Vested (in shares) | shares | (62,747) |
Unvested, Ending Balance (in shares) | shares | 0 |
Weighted-Average Grant Date Fair Value | |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 21.28 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 21.28 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 0 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | ||||
Domestic operating income (loss) | $ 2,400 | $ (392) | $ (1,300) | |
Foreign operating income (loss) | 135 | 223 | 169 | |
Income tax expense (benefit) | 499 | (145) | (744) | |
Tax settlement benefit | $ 398 | |||
Valuation allowance | 1,570 | |||
Federal operating loss credit carryforward | 810 | 2,700 | ||
Undistributed earnings of foreign subsidiaries | 30 | |||
Additional taxes if undistributed earnings were remitted | 8 | |||
Income tax penalties and interest accrued | 63 | 50 | ||
Unrecognized tax benefits, tax penalties and interest expense | 13 | 14 | (60) | |
Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ 35 | $ 59 | $ 45 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current (expense) benefit | $ (5) | $ (129) | $ (5) |
Deferred (expense) benefit | (494) | 274 | 749 |
Income tax (expense) benefit | $ (499) | $ 145 | $ 744 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Tax Rate Amounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax (expense) benefit | $ (531) | $ 36 | $ 229 |
Noncontrolling interest | 40 | 69 | 50 |
Non-taxable investment income | 53 | 80 | 92 |
Tax audit interest | (13) | (14) | (8) |
State income taxes | (63) | (47) | (38) |
Tax settlements/uncertain tax position release | 0 | 0 | 398 |
Tax credits | 22 | 28 | 21 |
Other | (7) | (7) | 0 |
Income tax (expense) benefit | $ (499) | $ 145 | $ 744 |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Compensation and related benefits | $ 226 | $ 273 |
Net operating loss and credits | 240 | 699 |
Reserves and reinsurance | 1,607 | 2,281 |
Investments | 2,012 | |
Other | 92 | |
Valuation allowance | (1,570) | |
Total | 2,607 | 3,253 |
Liabilities | ||
DAC | 1,405 | 874 |
Unrealized investment gains/losses | 965 | |
Investments | 235 | 794 |
Other | 76 | |
Total | $ 1,640 | $ 2,709 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 323 | $ 316 | $ 501 |
Additions for tax positions of prior years | 11 | 241 | |
Reductions for tax positions of prior years | (9) | (4) | (382) |
Additions for tax positions of current year | 0 | 0 | 0 |
Settlements with tax authorities | 0 | 0 | (44) |
Ending balance | 314 | 323 | 316 |
Unrecognized tax benefits that, if recognized, would impact the effective rate | $ 58 | $ 67 | $ 77 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) shares in Millions | 1 Months Ended | ||||
Apr. 30, 2019 USD ($) shares | Feb. 28, 2018 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Feb. 29, 2016 USD ($) federalAction legalAction | |
Loss Contingencies [Line Items] | |||||
Unaccrued amounts of reasonably possible range of losses | $ 250,000,000 | ||||
Federal home loan bank stock | 394,000,000 | ||||
Carrying value of collateral pledged for federal home loan bank | 11,800,000,000 | ||||
Commitments by the Company to provide equity financing | 1,300,000,000 | ||||
Face amount of mortgage loans | 703,000,000 | ||||
Revolving Credit Facility | |||||
Loss Contingencies [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 17,000,000 | ||||
Trust Notes | |||||
Loss Contingencies [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 10,000,000,000 | ||||
Holdings Revolving Credit Facility | Revolving Credit Facility | |||||
Loss Contingencies [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | $ 1,500,000,000 | |||
Debt instrument, term | 5 years | ||||
Holdings Revolving Credit Facility | Letter of Credit | |||||
Loss Contingencies [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | $ 1,500,000,000 | |||
Bilateral Letter Of Credit Facilities | Letter of Credit | |||||
Loss Contingencies [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,900,000,000 | ||||
Equitable Financial | |||||
Loss Contingencies [Line Items] | |||||
Number of federal actions | federalAction | 3 | ||||
Pre-Capitalized Trust Securities, Redeemable February 15, 2029 | |||||
Loss Contingencies [Line Items] | |||||
Shares issued (in shares) | shares | 0.6 | ||||
Proceeds from offering | $ 600,000,000 | ||||
Sale of stock, funding arrangement, period to issue senior notes to trust | 10 years | ||||
Sale of stock, semi-annual facility fee, rate | 2.125% | ||||
Pre-Capitalized Trust Securities, Redeemable February 15, 2049 | |||||
Loss Contingencies [Line Items] | |||||
Shares issued (in shares) | shares | 0.4 | ||||
Proceeds from offering | $ 400,000,000 | ||||
Sale of stock, funding arrangement, period to issue senior notes to trust | 30 years | ||||
Sale of stock, semi-annual facility fee, rate | 2.715% | ||||
New York | Equitable Financial | |||||
Loss Contingencies [Line Items] | |||||
Number of actions | legalAction | 2 | ||||
Brach Family Foundation Litigation | |||||
Loss Contingencies [Line Items] | |||||
Liability for future policy benefits, face value of policy | $ 1,000,000 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Funding Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | $ 6,643 | |
Issued During the Period | 55,648 | |
Repaid During the Period | (53,790) | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 8,501 | |
Difference related to remaining amortization | 4 | $ 4 |
Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 6,719 | |
Issued During the Period | 400 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | (34) | |
Outstanding Balance, period end | 7,085 | |
Difference related to remaining amortization | 66 | $ 70 |
Due in one year or less | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 5,353 | |
Issued During the Period | 54,316 | |
Repaid During the Period | (53,790) | |
Long-term Agreements Maturing Within One Year | 251 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 6,130 | |
Due in one year or less | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 0 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 1,500 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | 0 | |
Outstanding Balance, period end | 1,500 | |
Due in years two through five | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,290 | |
Issued During the Period | 640 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (251) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 1,679 | |
Due in years two through five | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 4,600 | |
Issued During the Period | 400 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (1,500) | |
Long-term Agreements Maturing Within Five Years | 500 | |
Foreign Currency Transaction Adjustment | 0 | |
Outstanding Balance, period end | 4,000 | |
Due in more than five years | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 0 | |
Issued During the Period | 692 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 692 | |
Due in more than five years | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 2,119 | |
Issued During the Period | 0 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | 0 | |
Long-term Agreements Maturing Within Five Years | (500) | |
Foreign Currency Transaction Adjustment | (34) | |
Outstanding Balance, period end | 1,585 | |
Total long-term funding agreements | Federal Home Loan Bank (FHLB) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 1,290 | |
Issued During the Period | 1,332 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (251) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Outstanding Balance, period end | 2,371 | |
Total long-term funding agreements | Funding Agreement-Backed Notes Program (FABN) | ||
Restructuring Reserve [Roll Forward] | ||
Outstanding Balance, period start | 6,719 | |
Issued During the Period | 400 | |
Repaid During the Period | 0 | |
Long-term Agreements Maturing Within One Year | (1,500) | |
Long-term Agreements Maturing Within Five Years | 0 | |
Foreign Currency Transaction Adjustment | (34) | |
Outstanding Balance, period end | $ 5,585 |
INSURANCE GROUP STATUTORY FIN_3
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION - Statutory Financials (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance Group Statutory Financial Information [Abstract] | |||
Combined statutory net income (loss) | $ 148 | $ (936) | $ 396 |
Combined surplus, capital stock and AVR | 7,125 | 6,864 | |
Combined securities on deposits in accordance with various government and state regulations | $ 17 | $ 65 |
INSURANCE GROUP STATUTORY FIN_4
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION - Narrative (Details)old - USD ($) | 2 Months Ended | 12 Months Ended | |||
Feb. 17, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | Jun. 30, 2021 | Feb. 28, 2018 | |
Statutory Accounting Practices [Abstract] | |||||
Shareholder dividends | $ 930,000,000 | $ 2,100,000,000 | |||
Subsequent Event | |||||
Statutory Accounting Practices [Abstract] | |||||
Shareholder dividends | $ 1,700,000,000 | ||||
EQ AZ Life Re | |||||
Statutory Accounting Practices [Abstract] | |||||
Other restricted assets | 1,700,000,000 | ||||
Revolving Credit Facility | |||||
Statutory Accounting Practices [Abstract] | |||||
Line of credit facility, maximum borrowing capacity | 17,000,000 | ||||
Holdings Revolving Credit Facility | Revolving Credit Facility | |||||
Statutory Accounting Practices [Abstract] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | $ 2,500,000,000 | |||
Holdings Revolving Credit Facility | Revolving Credit Facility | EQ AZ Life Re | |||||
Statutory Accounting Practices [Abstract] | |||||
Line of credit facility, maximum borrowing capacity | $ 2,100,000,000 |
INSURANCE GROUP STATUTORY FIN_5
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) prescribedAndPermittedPractice | Dec. 31, 2022 USD ($) prescribedAndPermittedPractice | Sep. 30, 2022 | Sep. 30, 2021 USD ($) | |
Related Party Transaction [Line Items] | ||||
Number of prescribed and permitted practices | prescribedAndPermittedPractice | 3 | 3 | ||
Statement of Statutory Accounting Principles 108 | ||||
Related Party Transaction [Line Items] | ||||
Statutory accounting practices, statutory surplus, increase | $ 86,000,000 | $ 86,000,000 | ||
Statutory accounting practices, statutory net income, decrease | $ 1,300,000,000 | $ 1,400,000,000 | ||
Statutory accounting practices, hedging losses amortization period | 5 years | |||
Statutory accounting practices, statutory unassigned surplus, balance | $ 0 | |||
Regulation Number 213 | ||||
Related Party Transaction [Line Items] | ||||
Statutory accounting practices, statutory surplus, increase (decrease) to new standard application | $ (1,900,000,000) | |||
Statutory accounting practices, total asset required, percentage | 100% | |||
Statutory accounting practices, statutory net income, increase (decrease) to new standard application | (700,000,000) | |||
Regulation Number 213 with Seperate Accounts | ||||
Related Party Transaction [Line Items] | ||||
Statutory accounting practices, statutory surplus, increase (decrease) to new standard application | 2,200,000,000 | |||
Statutory accounting practices, statutory net income, increase (decrease) to new standard application | $ 2,300,000,000 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 4 | ||
Operating earnings (expense) excluding SCS-related DAC amortization | $ | $ 78 | $ (16) | $ (34) |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net income (loss) attributable to Holdings | $ 1,785 | $ (439) | $ (648) | |
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 2,009 | 2,825 | 2,302 | |
Legal expense | 218 | 207 | ||
Policyholders’ benefits | 3,385 | 3,218 | 5,326 | |
Interest expense | 201 | 244 | 200 | |
Adjustments | ||||
Adjustments related to: | ||||
Variable annuity product features | (1,315) | 4,145 | 3,912 | |
Investment (gains) losses | 945 | (867) | (744) | |
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 82 | 120 | 109 | |
Other adjustments | 552 | 717 | 952 | |
Income tax expense (benefit) related to above adjustments | (56) | (864) | (888) | |
Non-recurring tax items | 16 | 13 | (391) | |
COVID impact on variable annuity product features due to assumption updates | $ 1,500 | |||
Other COVID-19 impact | 35 | |||
Other assumption updates due to COVID-19 | $ 1,000 | |||
Other COVID-19 impact | 86 | |||
Separation costs | 82 | 108 | ||
Policyholders’ benefits | 75 | |||
COVID-19 impact on income tax (benefit) | (554) | |||
Adjustments | Non-GMxB Related Derivative | ||||
Adjustments related to: | ||||
Gain (loss) on fair value hedges recognized in earnings | (34) | 65 | (404) | |
Operating Segments | Individual Retirement | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 1,140 | 1,444 | 1,536 | |
Operating Segments | Group Retirement | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 525 | 631 | 491 | |
Operating Segments | Investment Management and Research | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 424 | 564 | 432 | |
Operating Segments | Protection Solutions | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | 179 | 317 | 146 | |
Corporate and Other | ||||
Adjustments related to: | ||||
Non-GAAP Operating Earnings | (259) | (131) | (303) | |
Interest expense | $ 205 | $ 241 | $ 218 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 14,017 | $ 11,036 | $ 12,415 |
Adjustments related to: | |||
Investment expenses | 105 | 77 | 72 |
Operating Segments | Individual Retirement | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,920 | 3,785 | 4,311 |
Operating Segments | Group Retirement | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,173 | 1,372 | 1,148 |
Operating Segments | Investment Management and Research | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 4,105 | 4,430 | 3,703 |
Operating Segments | Protection Solutions | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,302 | 3,358 | 3,144 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,488 | 1,563 | 1,207 |
Adjustments | |||
Adjustments related to: | |||
Variable annuity product features | 1,123 | (4,268) | (2,284) |
Investment gains (losses), net | (945) | 867 | 744 |
Other adjustments to segment revenues (3) | (149) | (71) | 442 |
Assumption updates due to COVID-19 | 46 | ||
Other COVID-19 related impact | (30) | ||
Intersegment Eliminations | |||
Adjustments related to: | |||
Investment expenses | 95 | 128 | 71 |
Intersegment Eliminations | Investment Management and Other Fees | |||
Adjustments related to: | |||
Revenues | $ 134 | $ 126 | $ 113 |
BUSINESS SEGMENT INFORMATION _4
BUSINESS SEGMENT INFORMATION - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 253,468 | $ 292,262 |
Operating Segments | Individual Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 125,588 | 143,663 |
Operating Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total assets | 42,656 | 55,368 |
Operating Segments | Investment Management and Research | ||
Segment Reporting Information [Line Items] | ||
Total assets | 12,633 | 11,602 |
Operating Segments | Protection Solutions | ||
Segment Reporting Information [Line Items] | ||
Total assets | 37,730 | 50,686 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 34,861 | $ 30,943 |
EQUITY - Preferred Stock Activi
EQUITY - Preferred Stock Activity (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 64,000 | 64,000 |
Preferred stock, shares issued (in shares) | 64,000 | 64,000 |
Preferred stock, shares outstanding (in shares) | 64,000 | 64,000 |
Series A | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 32,000 | 32,000 |
Preferred stock, shares issued (in shares) | 32,000 | 32,000 |
Preferred stock, shares outstanding (in shares) | 32,000 | 32,000 |
Series B | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 20,000 | 20,000 |
Preferred stock, shares issued (in shares) | 20,000 | 20,000 |
Preferred stock, shares outstanding (in shares) | 20,000 | 20,000 |
Series C | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 12,000 | 12,000 |
Preferred stock, shares issued (in shares) | 12,000 | 12,000 |
Preferred stock, shares outstanding (in shares) | 12,000 | 12,000 |
EQUITY - Preferred Stock (Detai
EQUITY - Preferred Stock (Details) | 2 Months Ended | |||||||
Dec. 15, 2025 | Dec. 24, 2024 $ / shares | Jan. 08, 2021 USD ($) $ / shares shares | Aug. 11, 2020 USD ($) $ / shares shares | Dec. 31, 2019 USD ($) $ / shares shares | Dec. 15, 2024 $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | |
Class of Stock [Line Items] | ||||||||
Preferred stock par value (in dollars per share) | $ / shares | $ 1 | $ 1 | ||||||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | ||||||
Series A | ||||||||
Class of Stock [Line Items] | ||||||||
Depositary stock, shares issued (in shares) | shares | 32,000,000 | |||||||
Preferred stock par value (in dollars per share) | $ / shares | $ 1 | |||||||
Preferred stock, liquidation preference | $ 25,000 | |||||||
Proceeds from offering | 775,000,000 | |||||||
Sale of stock, consideration received per transaction | $ 800,000,000 | |||||||
Preferred stock, dividend rate, percentage | 5.25% | |||||||
Payments of stock issuance costs | $ 25,000,000 | |||||||
Conversion to preferred stock from depositary stock | 0.001 | |||||||
Series A | Forecast | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, redemption price per share (in dollars per share) | $ / shares | $ 25,500 | $ 25,000 | ||||||
Preferred stock, redemption price, rating agency period | 90 days | |||||||
Preferred stock, additional events, redemption price per share (in dollars per share) | $ / shares | $ 25,000 | |||||||
Series B | ||||||||
Class of Stock [Line Items] | ||||||||
Depositary stock, shares issued (in shares) | shares | 500,000 | |||||||
Preferred stock par value (in dollars per share) | $ / shares | $ 1 | |||||||
Preferred stock, liquidation preference | $ 25,000 | |||||||
Proceeds from offering | 494,000,000 | |||||||
Sale of stock, consideration received per transaction | $ 500,000,000 | |||||||
Preferred stock, dividend rate, percentage | 4.95% | |||||||
Payments of stock issuance costs | $ 6,000,000 | |||||||
Preferred stock, redemption price per share (in dollars per share) | $ / shares | $ 25,000 | |||||||
Preferred stock, redemption price, rating agency period | 90 days | |||||||
Preferred stock, dividend rate, reassessment period | 5 years | |||||||
Preferred stock, redemption price, rating agency per share (in dollars per share) | $ / shares | $ 25,500 | |||||||
Preferred stock, redemption price, regulatory capital per share (in dollars per share) | $ / shares | $ 25,000 | |||||||
Conversion to preferred stock from depositary stock | 0.04 | |||||||
Series B | Forecast | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, basis spread, percentage | 4.736% | |||||||
Series C | ||||||||
Class of Stock [Line Items] | ||||||||
Depositary stock, shares issued (in shares) | shares | 12,000,000 | |||||||
Preferred stock par value (in dollars per share) | $ / shares | $ 1 | |||||||
Preferred stock, liquidation preference | $ 25,000 | |||||||
Proceeds from offering | 293,000,000 | |||||||
Sale of stock, consideration received per transaction | $ 300,000,000 | |||||||
Preferred stock, dividend rate, percentage | 4.30% | |||||||
Conversion to preferred stock from depositary stock | 0.001 |
EQUITY - Dividends Declared (De
EQUITY - Dividends Declared (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Cash dividends declared per common share (in dollars per share) | $ 0.78 | $ 0.71 | $ 0.66 |
Series A | |||
Class of Stock [Line Items] | |||
Cash dividends declared per preferred stock (in dollars per share) | 1,313 | 1,313 | 1,378 |
Series B | |||
Class of Stock [Line Items] | |||
Cash dividends declared per preferred stock (in dollars per share) | 1,238 | 1,238 | 426 |
Series C | |||
Class of Stock [Line Items] | |||
Cash dividends declared per preferred stock (in dollars per share) | $ 1,075 | $ 1,006 | $ 0 |
EQUITY - Share Repurchase - Nar
EQUITY - Share Repurchase - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2022 | Sep. 30, 2022 | May 31, 2022 | Apr. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2022 | Feb. 09, 2022 | |
Class of Stock [Line Items] | |||||||||
Share repurchase plan, authorized amount | $ 1,200,000,000 | ||||||||
Share repurchase program, remaining authorized repurchase amount | $ 372,000,000 | $ 372,000,000 | |||||||
Payments for repurchase of common shares | $ 849,000,000 | $ 1,637,000,000 | $ 430,000,000 | ||||||
Retirement of common stock | 12,500,000 | 32,000,000 | 0 | ||||||
Treasury stock reissued (in shares) | 2,000,000 | 2,300,000 | 743,000 | ||||||
Accelerated Share Repurchase Agreement | |||||||||
Class of Stock [Line Items] | |||||||||
Shares repurchased (in shares) | 28,200,000 | 51,900,000 | 23,700,000 | ||||||
Payments for repurchase of common shares | $ 800,000,000 | $ 1,600,000,000 | $ 400,000,000 | ||||||
Accelerated Share Repurchase Agreement, April 2022 | |||||||||
Class of Stock [Line Items] | |||||||||
Share repurchase plan, authorized amount | $ 37,500,000 | $ 100,000,000 | |||||||
Shares repurchased (in shares) | 1,700,000 | 1,100,000 | 2,600,000 | ||||||
Accelerated share repurchases, settlement payment | $ 37,500,000 | $ 100,000,000 | |||||||
Additional shares received (in shares) | 300,000 | 1,200,000 | 684,700 | 300,000 | 200,000 | ||||
Accelerated Share Repurchase Agreement, May 2022 | |||||||||
Class of Stock [Line Items] | |||||||||
Share repurchase plan, authorized amount | $ 61,000,000 | $ 150,000,000 | $ 61,000,000 | ||||||
Shares repurchased (in shares) | 4,300,000 | ||||||||
Accelerated share repurchases, settlement payment | $ 61,000,000 | $ 150,000,000 | $ 61,000,000 |
EQUITY - Cumulative Gains (Loss
EQUITY - Cumulative Gains (Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Unrealized gains (losses) on investments | $ (8,142) | $ 2,684 |
Defined benefit pension plans | (651) | (669) |
Foreign currency translation adjustments | (91) | (45) |
Total accumulated other comprehensive income (loss) | (8,884) | 1,970 |
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest | (50) | (34) |
Accumulated other comprehensive income (loss) attributable to Holdings | $ (8,834) | $ 2,004 |
EQUITY - Components of OCI, Net
EQUITY - Components of OCI, Net of Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Net unrealized gains (losses) arising during the period | $ (13,637) | $ (2,467) | $ 4,887 |
(Gains) losses reclassified into net income (loss) during the period | 685 | (698) | (653) |
Net unrealized gains (losses) on investments | (12,952) | (3,165) | 4,234 |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 2,126 | 1,052 | (1,278) |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(1,018) and $838) | (10,826) | (2,113) | 2,956 |
Change in defined benefit plans: | |||
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost | 18 | 266 | 48 |
Change in defined benefit plans (net of deferred income tax expense (benefit) of $(9) and $9) | 18 | 266 | 48 |
Foreign currency translation adjustments: | |||
Foreign currency translation gains (losses) arising during the period | (46) | (11) | 22 |
(Gains) losses reclassified into net income (loss) during the period | 0 | 0 | 0 |
Foreign currency translation adjustment | (46) | (11) | 22 |
Total other comprehensive income (loss), net of income taxes | (10,854) | (1,858) | 3,026 |
Less: Other comprehensive income (loss) attributable to noncontrolling interest | (16) | 1 | 7 |
Other comprehensive income (loss) attributable to Holdings | (10,838) | (1,859) | 3,019 |
Valuation allowance | 1,570 | ||
Reclassification adjustment | (182) | 186 | (174) |
Change in net unrealized gains (losses) on investments | (891) | (562) | 786 |
Defined benefit plan, OCI, tax | $ (1) | $ 68 | $ 14 |
EQUITY - Permitted Statutory Ac
EQUITY - Permitted Statutory Accounting Practices (Details) | Feb. 09, 2022 USD ($) |
Equity [Abstract] | |
Share repurchase plan, authorized amount | $ 1,200,000,000 |
EARNINGS PER COMMON SHARE - Bas
EARNINGS PER COMMON SHARE - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Weighted average number of shares outstanding - basic (in shares) | 377.6 | 417.4 | 450.4 |
Effect of dilutive securities common shares, employee stock awards (in shares) | 2.3 | 0 | 0 |
Diluted (in shares) | 379.9 | 417.4 | 450.4 |
Net income (loss) | $ 2,026 | $ (24) | $ (349) |
Less: Net income (loss) attributable to the noncontrolling interest | 241 | 415 | 299 |
Net income (loss) attributable to Holdings | 1,785 | (439) | (648) |
Less: Preferred stock dividends | 80 | 79 | 53 |
Net income (loss) available to Holdings’ common shareholders | 1,705 | (518) | (701) |
Net income (loss) available to Holdings’ common shareholders | $ 1,705 | $ (518) | $ (701) |
Net income (loss) attributable to Holdings per common share: | |||
Basic (in dollars per share) | $ 4.52 | $ (1.24) | $ (1.56) |
Diluted (in dollars per share) | $ 4.49 | $ (1.24) | $ (1.56) |
Effect of dilutive securities (in shares) | 3.8 | 1.7 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities (in shares) | 3.9 | 8.2 | 10 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST - Summary of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||
Balance, beginning of period | $ 468 | [1],[2] | $ 143 | $ 365 | |
Net earnings (loss) attributable to redeemable noncontrolling interests | (59) | 5 | (3) | ||
Purchase/change of redeemable noncontrolling interests | 46 | 320 | (219) | ||
Balance, end of period | $ 455 | [1],[2] | $ 468 | [1],[2] | $ 143 |
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs.[2]See Note 22 of the Notes to these Consolidated Financial Statements for details of redeemable noncontrolling interest.(3) Represents the fair value of the ceded reserves to Venerable. See Note 1 of the Notes to these Consolidated Financial Statements for details of the Venerable Transaction and Note 8 of the Notes to these Consolidated Financial Statements. |
HELD-FOR-SALE - Narrative (Deta
HELD-FOR-SALE - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Nov. 22, 2022 | Jun. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest in joint venture expected | 100% | |||
Interest in joint venture maximum limit expected period | 5 years | |||
Non cash valuation adjustment | $ 7 | |||
AB Holding | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest in joint venture | 49% | |||
Societe Generale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest in joint venture | 51% | |||
Corporate Solutions Life Reinsurance Company (CS Life) | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Investment impairment | $ 15 | |||
Gain on disposal | $ 1 | |||
Investment impairment, recovered | $ 15 |
HELD-FOR-SALE - Assets and Liab
HELD-FOR-SALE - Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Goodwill and other intangible assets, net | $ 5,482 | $ 4,728 |
Total assets held-for-sale | 562 | 0 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Total liabilities held-for-sale | 108 | $ 0 |
Corporate Solutions Life Reinsurance Company (CS Life) | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Cash and cash equivalents | 159 | |
Broker-dealer related receivables | 74 | |
Trading securities, at fair value | 25 | |
Goodwill and other intangible assets, net | 175 | |
Other assets | 129 | |
Total assets held-for-sale | 562 | |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Broker-dealer related payables | 33 | |
Customers related payables | 10 | |
Other liabilities | 65 | |
Total liabilities held-for-sale | 108 | |
Other real estate, valuation adjustments | $ (7) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) shares in Millions | 1 Months Ended | 12 Months Ended | |||||
Jan. 11, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 09, 2023 | Feb. 09, 2022 | |
Subsequent Event [Line Items] | |||||||
Share repurchase plan, authorized amount | $ 1,200,000,000 | ||||||
Share repurchase program, remaining authorized repurchase amount | $ 372,000,000 | ||||||
Accelerated Share Repurchase Agreement | |||||||
Subsequent Event [Line Items] | |||||||
Shares repurchased (in shares) | 28.2 | 51.9 | 23.7 | ||||
Senior Notes (3.9%, due 2023) | Senior Notes | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument, stated percentage | 3.90% | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Share repurchase plan, authorized amount | $ 700,000,000 | ||||||
Share repurchase program, remaining authorized repurchase amount | $ 1,100,000,000 | ||||||
Subsequent Event | Accelerated Share Repurchase Agreement | |||||||
Subsequent Event [Line Items] | |||||||
Share repurchase plan, authorized amount | $ 75,000,000 | ||||||
Shares repurchased (in shares) | 2 | ||||||
Accelerated share repurchases, settlement payment | $ 75,000,000 | ||||||
Subsequent Event | Senior Notes (3.9%, due 2023) | Senior Notes | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument, face amount | $ 500,000,000 | ||||||
Underwriting discount and issuance costs | $ 5,000,000 | ||||||
Debt instrument, stated percentage | 5.594% | ||||||
Redemption price, percentage | 100% |
SCHEDULE I - SUMMARY OF INVES_2
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions | Dec. 31, 2022 USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 102,695 |
Fair Value | 91,622 |
Carrying Value | 93,097 |
U.S. government, agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 7,054 |
Fair Value | 5,837 |
Carrying Value | 5,837 |
States and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 609 |
Fair Value | 527 |
Carrying Value | 527 |
Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 985 |
Fair Value | 836 |
Carrying Value | 836 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 6,829 |
Fair Value | 5,778 |
Carrying Value | 5,778 |
All other corporate bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 43,883 |
Fair Value | 37,793 |
Carrying Value | 37,793 |
RMBS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 908 |
Fair Value | 822 |
Carrying Value | 822 |
Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 8,859 |
Fair Value | 8,490 |
Carrying Value | 8,490 |
Commercial mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,823 |
Fair Value | 3,235 |
Carrying Value | 3,235 |
Redeemable preferred stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 41 |
Fair Value | 43 |
Carrying Value | 43 |
Fixed maturities, AFS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 72,991 |
Fair Value | 63,361 |
Carrying Value | 63,361 |
Fixed maturities, at fair value using the fair value option | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,599 |
Fair Value | 1,508 |
Carrying Value | 1,508 |
Mortgage loans on real estate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 16,610 |
Fair Value | 14,690 |
Carrying Value | 16,481 |
Policy loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 4,033 |
Fair Value | 4,349 |
Carrying Value | 4,033 |
Other equity investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,938 |
Fair Value | 3,152 |
Carrying Value | 3,152 |
Trading securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 639 |
Fair Value | 677 |
Carrying Value | 677 |
Other invested assets | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,885 |
Fair Value | 3,885 |
Carrying Value | $ 3,885 |
SCHEDULE II - PARENT COMPANY -
SCHEDULE II - PARENT COMPANY - Balance Sheet (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Fixed maturities, AFS at fair value | $ 63,361,000,000 | $ 78,216,000,000 | |
Other equity investments | [1] | 3,152,000,000 | 2,975,000,000 |
Other invested assets | [1] | 3,885,000,000 | 3,591,000,000 |
Total investments | 93,097,000,000 | 105,111,000,000 | |
Cash and cash equivalents | [1] | 4,281,000,000 | 5,188,000,000 |
Goodwill and other intangible assets, net | 5,482,000,000 | 4,728,000,000 | |
Other assets | [1] | 4,031,000,000 | 3,613,000,000 |
Total Assets | 253,468,000,000 | 292,262,000,000 | |
LIABILITIES | |||
Short-term debt | 759,000,000 | 92,000,000 | |
Long-term debt | 3,322,000,000 | 3,839,000,000 | |
Other liabilities | [1] | 5,873,000,000 | 3,933,000,000 |
Total Liabilities | 249,615,000,000 | 278,699,000,000 | |
Equity attributable to Holdings: | |||
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 508,418,442 and 520,918,331 shares issued, respectively; 365,081,940 and 391,290,224 shares outstanding, respectively | 4,000,000 | 4,000,000 | |
Additional paid-in capital | 2,299,000,000 | 1,919,000,000 | |
Treasury stock, at cost, 143,336,502 and 129,628,107 shares, respectively | (3,297,000,000) | (2,850,000,000) | |
Retained earnings | 9,924,000,000 | 8,880,000,000 | |
Accumulated other comprehensive income (loss) | (8,834,000,000) | 2,004,000,000 | |
Total equity attributable to Holdings | 1,658,000,000 | 11,519,000,000 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 253,468,000,000 | 292,262,000,000 | |
Fixed maturities available-for-sale, amortized cost | $ 72,991,000,000 | $ 73,429,000,000 | |
Preferred stock par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Common stock issued (in shares) | 508,418,442 | 520,918,331 | |
Common stock outstanding (in shares) | 365,081,940 | 391,290,224 | |
Treasury stock (in shares) | 143,336,502 | 129,628,107 | |
Parent | |||
ASSETS | |||
Investment in consolidated subsidiaries | $ 2,929,000,000 | $ 13,128,000,000 | |
Fixed maturities, AFS at fair value | 693,000,000 | 874,000,000 | |
Other equity investments | 139,000,000 | 92,000,000 | |
Other invested assets | 448,000,000 | 0 | |
Total investments | 4,209,000,000 | 14,094,000,000 | |
Cash and cash equivalents | 711,000,000 | 867,000,000 | |
Goodwill and other intangible assets, net | 1,242,000,000 | 1,255,000,000 | |
Advances to Affiliate | 990,000,000 | 755,000,000 | |
Loans to affiliates | 714,000,000 | 585,000,000 | |
Current and deferred income taxes assets | 521,000,000 | 600,000,000 | |
Other assets | 265,000,000 | 44,000,000 | |
Total Assets | 8,652,000,000 | 18,200,000,000 | |
LIABILITIES | |||
Short-term debt | 520,000,000 | 0 | |
Long-term debt | 3,322,000,000 | 3,839,000,000 | |
Employee benefits liabilities | 777,000,000 | 853,000,000 | |
Loans from affiliates | 1,900,000,000 | 1,900,000,000 | |
Payable to affiliates | 394,000,000 | 48,000,000 | |
Other liabilities | 81,000,000 | 41,000,000 | |
Total Liabilities | 6,994,000,000 | 6,681,000,000 | |
Equity attributable to Holdings: | |||
Preferred stock and additional paid-in capital, par value $1.00 per share; $25,000 liquidation preference | 1,562,000,000 | 1,562,000,000 | |
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 508,418,442 and 520,918,331 shares issued, respectively; 365,081,940 and 391,290,224 shares outstanding, respectively | 4,000,000 | 4,000,000 | |
Additional paid-in capital | 2,299,000,000 | 1,919,000,000 | |
Treasury stock, at cost, 143,336,502 and 129,628,107 shares, respectively | (3,297,000,000) | (2,850,000,000) | |
Retained earnings | 9,924,000,000 | 8,880,000,000 | |
Accumulated other comprehensive income (loss) | (8,834,000,000) | 2,004,000,000 | |
Total equity attributable to Holdings | 1,658,000,000 | 11,519,000,000 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 8,652,000,000 | 18,200,000,000 | |
Fixed maturities available-for-sale, amortized cost | $ 737,000,000 | $ 884,000,000 | |
Preferred stock par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Common stock issued (in shares) | 508,418,442 | 520,918,331 | |
Common stock outstanding (in shares) | 365,081,940 | 391,290,224 | |
Treasury stock (in shares) | 143,336,502 | 129,628,107 | |
[1]See Note 2 of the Notes to these Consolidated Financial Statements for details of balances with VIEs. |
SCHEDULE II - PARENT COMPANY _2
SCHEDULE II - PARENT COMPANY - Statement of Income (Loss) and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES | |||
Investment gains (losses), net | $ (631) | $ 863 | $ 872 |
Other income | 825 | 795 | 576 |
Total revenues | 14,017 | 11,036 | 12,415 |
EXPENSES | |||
Interest expense | 201 | 244 | 200 |
Other operating costs and expenses | 2,189 | 2,109 | 1,700 |
Income (loss) from continuing operations, before income taxes | 2,525 | (169) | (1,093) |
Income tax (expense) benefit | (499) | 145 | 744 |
Net income (loss) | 2,026 | (24) | (349) |
Less: Preferred stock dividends | 80 | 79 | 53 |
Net income (loss) available to Holdings’ common shareholders | 1,705 | (518) | (701) |
Net income (loss) available to Holdings’ common shareholders | 1,705 | (518) | (701) |
Change in net unrealized gains (losses) on investments | 891 | 562 | (786) |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 18 | 266 | 48 |
Total other comprehensive income (loss), net of income taxes | (10,854) | (1,858) | 3,026 |
Comprehensive income (loss) attributable to Holdings | (9,053) | (2,298) | 2,371 |
Parent | |||
REVENUES | |||
Equity in income (losses) from continuing operations of consolidated subsidiaries | 1,935 | (152) | (668) |
Net investment income (loss) | 66 | 26 | 26 |
Investment gains (losses), net | 0 | (12) | 0 |
Total revenues | 2,001 | (138) | (642) |
EXPENSES | |||
Interest expense | 248 | 241 | 229 |
Other operating costs and expenses | 33 | 58 | 40 |
Total expenses | 281 | 299 | 269 |
Income (loss) from continuing operations, before income taxes | 1,720 | (437) | (911) |
Income tax (expense) benefit | 65 | (2) | 263 |
Net income (loss) | 1,785 | (439) | (648) |
Less: Preferred stock dividends | 80 | 79 | 53 |
Net income (loss) available to Holdings’ common shareholders | 1,705 | (518) | (701) |
Net income (loss) available to Holdings’ common shareholders | 1,705 | (518) | (701) |
Change in net unrealized gains (losses) on investments | (6) | (85) | 47 |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 10 | 251 | 53 |
Equity in net other comprehensive income (loss) from continuing operations of consolidated subsidiaries | (10,842) | (2,025) | 2,919 |
Total other comprehensive income (loss), net of income taxes | (10,838) | (1,859) | 3,019 |
Comprehensive income (loss) attributable to Holdings | $ (9,053) | $ (2,298) | $ 2,371 |
SCHEDULE II - PARENT COMPANY _3
SCHEDULE II - PARENT COMPANY - Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | $ 2,026 | $ (24) | $ (349) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Non-cash long-term incentive compensation expense | 286 | 226 | 210 |
Equity (income) loss from limited partnerships | (146) | (553) | (83) |
Other, net | (92) | 476 | (209) |
Net cash provided by (used in) operating activities | (851) | (756) | (61) |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 15,547 | 34,434 | 18,986 |
Short term investments | 575 | 87 | 1,497 |
Other | 573 | 1,716 | 1,005 |
Payment for the purchase/origination of: | |||
Fixed maturities, available for sale | (18,502) | (43,344) | (28,197) |
Short term investments | (1,502) | (18) | (1,098) |
Other | (1,173) | (2,553) | (1,167) |
Net cash provided by (used in) investing activities | (7,487) | (12,689) | (7,823) |
Cash flows from financing activities: | |||
Issuance of preferred stock | 0 | 293 | 494 |
Shareholder dividends paid | (294) | (296) | (297) |
Preferred dividends paid | (80) | (79) | (53) |
Purchase of treasury shares | (849) | (1,637) | (430) |
Other, net | 31 | (47) | 48 |
Net cash provided by (used in) financing activities | 7,646 | 12,511 | 9,674 |
Change in cash and cash equivalents | (748) | (952) | 1,813 |
Cash and cash equivalents, beginning of year | 5,188 | 6,179 | 4,405 |
Cash and cash equivalents, end of year | 4,281 | 5,188 | 6,179 |
Supplemental cash flow information: | |||
Interest paid | 263 | 215 | 215 |
Income taxes (refunded) paid | 89 | 305 | (173) |
Parent | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | 1,785 | (439) | (648) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Equity in net (earnings) loss of subsidiaries | (1,935) | 152 | 668 |
Non-cash long-term incentive compensation expense | 64 | 15 | 27 |
Amortization and depreciation | 57 | 60 | 40 |
Equity (income) loss from limited partnerships | (29) | (19) | (8) |
Dividends from subsidiaries | 1,801 | 792 | 2,877 |
Current and deferred taxes | 104 | (151) | (250) |
Other, net | (23) | 14 | (135) |
Net cash provided by (used in) operating activities | 1,824 | 424 | 2,571 |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 131 | 210 | 131 |
Short term investments | 550 | 0 | 0 |
Other | 5 | 0 | 0 |
Payment for the purchase/origination of: | |||
Fixed maturities, available for sale | 0 | 0 | (1,011) |
Short term investments | (1,000) | 0 | 0 |
Other | (16) | (7) | (21) |
Net issuance on credit facilities to affiliates | (235) | (80) | (115) |
Proceeds from the sale of subsidiary | 0 | 215 | 0 |
Net cash provided by (used in) investing activities | (565) | 338 | (1,016) |
Cash flows from financing activities: | |||
Issuance of preferred stock | 0 | 293 | 494 |
Repayment of long-term debt | 0 | (280) | 0 |
Proceeds from loans from affiliates | 0 | 1,000 | 0 |
Repayment of loans from affiliates | 0 | 0 | (300) |
Shareholder dividends paid | (294) | (296) | (297) |
Preferred dividends paid | (80) | (79) | (53) |
Purchase of treasury shares | (849) | (1,637) | (430) |
Capital contribution to subsidiaries | (225) | (815) | (350) |
Other, net | 33 | (53) | 0 |
Net cash provided by (used in) financing activities | (1,415) | (1,867) | (936) |
Change in cash and cash equivalents | (156) | (1,105) | 619 |
Cash and cash equivalents, beginning of year | 867 | 1,972 | 1,353 |
Cash and cash equivalents, end of year | 711 | 867 | 1,972 |
Supplemental cash flow information: | |||
Interest paid | 185 | 209 | 196 |
Income taxes (refunded) paid | 153 | 153 | (265) |
Non-cash transactions from investing and financing activities: | |||
Change in investment in subsidiary from issuance of AB Units for CarVal acquisition | 314 | 0 | 0 |
Non-cash dividends from subsidiaries | 22 | 0 | 0 |
Dividend of AB Units from subsidiary | $ 0 | $ 23 | $ 0 |
SCHEDULE II - PARENT COMPANY _4
SCHEDULE II - PARENT COMPANY - Narrative (Details) - Parent - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Nov. 30, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 04, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||||||
Repayment of loans from affiliates | $ 0 | $ 0 | $ 300,000,000 | |||
Loans from affiliates | 1,900,000,000 | 1,900,000,000 | ||||
Proceeds from loans from affiliates | 0 | 1,000,000,000 | 0 | |||
Interest expense, related party | 60,000,000 | 30,000,000 | $ 32,000,000 | |||
EQH Facility | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 900,000,000 | |||||
Letters of credit | $ 900,000,000 | $ 755,000,000 | ||||
Interest rate | 4.30% | 0.20% | ||||
Term loan, 10 year, 3.23 percent | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Repayment of loans from affiliates | $ 1,000,000,000 | $ 1,000,000,000 | ||||
Related party transaction, rate (as a percent) | 3.23% | |||||
Proceeds from loans from affiliates | $ 1,000,000,000 | |||||
Debt, term | 10 years | |||||
EQH-AEL internal debt (one-month LIBOR 1.33%, due 2024) | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Proceeds from loans from affiliates | $ 900,000,000 | |||||
EQH-AEL internal debt (one-month LIBOR 1.33%, due 2024) | LIBOR | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Repayment of loans from affiliates | $ 900,000,000 | $ 900,000,000 | ||||
Related party transaction, rate (as a percent) | 1.33% |
SCHEDULE III - SUPPLEMENTARY _2
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | $ 8,158 | $ 5,491 | $ 4,243 |
Policyholders’ account balances | 83,855 | 79,357 | 66,820 |
Future policy benefits and other policyholders' liabilities | 34,124 | (36,717) | (39,881) |
Policy charges and premium revenue | 4,235 | 4,597 | 4,732 |
Net derivative gains (losses) | 1,696 | (4,465) | (1,722) |
Net investment income (loss) | 3,315 | 3,846 | 3,477 |
Policyholders’ benefits and interest credited | 4,794 | 4,437 | 6,548 |
Amortization of deferred policy acquisition costs | 542 | 393 | 1,613 |
All other operating expense | 6,156 | 6,375 | 5,347 |
Corporate and Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 298 | 10 | 15 |
Policyholders’ account balances | 14,985 | 12,825 | 8,381 |
Future policy benefits and other policyholders' liabilities | 8,433 | (8,967) | (9,629) |
Policy charges and premium revenue | 317 | 343 | 390 |
Net derivative gains (losses) | 52 | 46 | (98) |
Net investment income (loss) | 618 | 747 | 519 |
Policyholders’ benefits and interest credited | 799 | 744 | 785 |
Amortization of deferred policy acquisition costs | 3 | 2 | (1) |
All other operating expense | 1,173 | 1,178 | 978 |
Individual Retirement | Operating Segments | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 4,661 | 3,639 | 3,178 |
Policyholders’ account balances | 40,790 | 38,456 | 30,736 |
Future policy benefits and other policyholders' liabilities | 20,578 | (22,904) | (25,212) |
Policy charges and premium revenue | 1,513 | 1,867 | 2,034 |
Net derivative gains (losses) | 1,626 | (4,386) | (1,999) |
Net investment income (loss) | 1,239 | 1,221 | 1,337 |
Policyholders’ benefits and interest credited | 1,237 | 912 | 3,086 |
Amortization of deferred policy acquisition costs | 419 | 294 | 321 |
All other operating expense | 726 | 814 | 724 |
Group Retirement | Operating Segments | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 1,075 | 776 | 632 |
Policyholders’ account balances | 13,141 | 13,049 | 12,828 |
Future policy benefits and other policyholders' liabilities | (16) | (3) | (9) |
Policy charges and premium revenue | 318 | 371 | 295 |
Net derivative gains (losses) | (7) | (29) | (2) |
Net investment income (loss) | 605 | 751 | 644 |
Policyholders’ benefits and interest credited | 281 | 303 | 305 |
Amortization of deferred policy acquisition costs | 8 | 2 | 73 |
All other operating expense | 249 | 362 | 284 |
Investment Management and Research | Operating Segments | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 0 | 0 | 0 |
Policyholders’ account balances | 0 | 0 | 0 |
Future policy benefits and other policyholders' liabilities | 0 | 0 | 0 |
Policy charges and premium revenue | 0 | 0 | 0 |
Net derivative gains (losses) | 41 | (13) | (36) |
Net investment income (loss) | (108) | 25 | 36 |
Policyholders’ benefits and interest credited | 0 | 0 | 0 |
Amortization of deferred policy acquisition costs | 0 | 0 | 0 |
All other operating expense | 3,255 | 3,241 | 2,815 |
Protection Solutions | Operating Segments | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 2,124 | 1,066 | 418 |
Policyholders’ account balances | 14,939 | 15,027 | 14,875 |
Future policy benefits and other policyholders' liabilities | 5,129 | (4,843) | (5,031) |
Policy charges and premium revenue | 2,087 | 2,016 | 2,013 |
Net derivative gains (losses) | (16) | (83) | 413 |
Net investment income (loss) | 961 | 1,102 | 941 |
Policyholders’ benefits and interest credited | 2,477 | 2,478 | 2,372 |
Amortization of deferred policy acquisition costs | 112 | 95 | 1,220 |
All other operating expense | $ 753 | $ 780 | $ 546 |
SCHEDULE IV - REINSURANCE (Deta
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Life insurance in-force | |||
Gross Amount | $ 483,069 | $ 484,082 | $ 473,514 |
Ceded to Other Companies | 174,819 | 185,203 | 94,231 |
Assumed from Other Companies | 31,337 | 31,971 | 33,098 |
Net Amount | 339,587 | 330,850 | 412,381 |
Premiums | |||
Gross Amount | 1,042 | 970 | 929 |
Ceded to Other Companies | 228 | 199 | 154 |
Assumed from Other Companies | 180 | 189 | 222 |
Premiums | $ 994 | $ 960 | $ 997 |
Percentage of Amount Assumed to Net | 9.20% | 9.70% | 8% |
Percentage of Amount Assumed to Net | 18.10% | 19.70% | 22.30% |
Life insurance and annuities | |||
Premiums | |||
Gross Amount | $ 822 | $ 802 | $ 805 |
Ceded to Other Companies | 182 | 155 | 113 |
Assumed from Other Companies | 172 | 181 | 213 |
Premiums | $ 812 | $ 828 | $ 905 |
Percentage of Amount Assumed to Net | 21.20% | 21.90% | 23.50% |
Accident and health | |||
Premiums | |||
Gross Amount | $ 220 | $ 168 | $ 124 |
Ceded to Other Companies | 46 | 44 | 41 |
Assumed from Other Companies | 8 | 8 | 9 |
Premiums | $ 182 | $ 132 | $ 92 |
Percentage of Amount Assumed to Net | 4.40% | 6.10% | 9.80% |
Uncategorized Items - eqh-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |