Cover
Cover - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Jan. 31, 2023 | |
Cover [Abstract] | ||
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 | 001-41490 | |
Entity Registrant Name | F&G Annuities & Life, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-2487422 | |
Entity Address, Address Line One | 801 Grand Avenue, | |
Entity Address, Address Line Two | Suite 2600 | |
Entity Address, City or Town | Des Moines, | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 50309 | |
City Area Code | 515 | |
Local Phone Number | 330-3340 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | FG | |
Security Exchange Name | NYSE | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 126,409,904 | |
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCENone. | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001934850 | |
Entity Public Float | $ 0 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Des Moines, Iowa |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturity securities available-for-sale | $ 31,218 | $ 29,962 |
Derivative investments | 244 | 816 |
Mortgage loans, net of allowance for credit losses of $42 and $31 at December 31, 2022 and December 31, 2021, respectively | 4,554 | 3,749 |
Investments in unconsolidated affiliates | 2,427 | 2,350 |
Other long-term investments | 565 | 489 |
Short-term investments | 1,556 | 373 |
Total investments | 41,387 | 38,910 |
Cash and cash equivalents | 960 | 1,533 |
Trade and notes receivables | 3 | 3 |
Reinsurance recoverable, net of allowance for credit losses of $10 and $20 at December 31, 2022 and December 31, 2021, respectively | 5,587 | 3,610 |
Goodwill | 1,756 | 1,756 |
Prepaid expenses and other assets | 917 | 613 |
Lease assets | 8 | 8 |
Other intangible assets, net | 3,652 | 2,234 |
Property and equipment, net | 13 | 13 |
Income taxes receivable | 28 | 50 |
Deferred tax asset, net | 764 | 0 |
Total assets | 55,075 | 48,730 |
Liabilities: | ||
Contractholder funds | 41,233 | 35,525 |
Future policy benefits | 5,923 | 4,732 |
Accounts payable and accrued liabilities | 1,273 | 1,297 |
Notes payable | 1,114 | 977 |
Funds withheld for reinsurance liabilities | 3,703 | 1,676 |
Lease liabilities | 13 | 14 |
Deferred tax liability, net | 0 | 24 |
Total liabilities | 53,259 | 44,245 |
Equity: | ||
Common stock | 0 | 0 |
Additional paid-in-capital | 3,162 | 2,750 |
Retained earnings | 1,457 | 1,001 |
Accumulated other comprehensive (loss) earnings | (2,803) | 734 |
Total equity | 1,816 | 4,485 |
Liabilities and Equity | 55,075 | 48,730 |
Preferred securities | ||
Investments: | ||
Preferred and equity securities, at fair value | 722 | 1,028 |
Equity securities | ||
Investments: | ||
Preferred and equity securities, at fair value | $ 101 | $ 143 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2022 | Jun. 24, 2022 | Jun. 23, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 01, 2020 | May 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||||||||
Amortized cost | $ 35,723,000,000 | $ 28,724,000,000 | ||||||
Fixed maturity securities, available-for-sale securities, allowance for credit losses | 31,000,000 | 8,000,000 | $ 10,000,000 | $ 0 | $ 15,000,000 | $ 0 | ||
Allowance for credit losses | 42,000,000 | 31,000,000 | 39,000,000 | 0 | 15,000,000 | $ 8,000,000 | ||
Allowance for doubtful accounts, premiums and other receivables | $ 10,000,000 | $ 20,000,000 | $ 21,000,000 | $ 0 | $ 22,000,000 | |||
Common stock, par or stated value per share (in dollars per share) | $ 0.001 | $ 0.001 | ||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 1,000 | 500,000,000 | ||||
Common stock, shares, outstanding (in shares) | 126,409,904 | 105,000,000 | ||||||
Common stock, shares, issued (in shares) | 126,409,904 | 105,000,000 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||||
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Revenues: | |||||||
Life insurance premiums and other fees | $ 90 | $ 138 | $ 1,695 | [1] | $ 1,395 | ||
Interest and investment income | 403 | 743 | 1,655 | 1,852 | |||
Recognized gains and (losses), net | (338) | 352 | (1,010) | 715 | |||
Total revenues | 155 | 1,233 | 2,340 | 3,962 | |||
Expenses: | |||||||
Personnel costs | 34 | 65 | 157 | 129 | |||
Other operating expenses | 75 | 75 | 102 | 105 | |||
Benefits and other changes in policy reserves | 298 | 866 | 1,125 | 2,138 | |||
Depreciation and amortization | (51) | 123 | 329 | 484 | |||
Interest expense | 13 | 18 | 29 | 29 | |||
Total expenses | 369 | 1,147 | 1,742 | 2,885 | |||
Earnings (loss) from continuing operations before income taxes | (214) | 86 | 598 | 1,077 | |||
Income tax expense (benefit) | (14) | (75) | 117 | 220 | |||
Net earnings (loss) from continuing operations | (200) | 161 | 481 | 857 | |||
Net earnings (loss) from discontinued operations, net of tax | (114) | (25) | 0 | 8 | |||
Net earnings (loss) | (314) | 136 | 481 | 865 | |||
Less: Preferred stock dividend | 8 | 0 | 0 | 0 | |||
Net earnings (loss) attributable to common shareholders | (322) | 136 | 481 | 865 | |||
Net earnings (loss) attributable to common shareholders | $ (322) | $ 136 | $ 481 | $ 865 | |||
Basic (millions) | |||||||
Net earnings (loss) from continuing operations (in usd per share) | $ (0.97) | $ 1.54 | $ 4.18 | $ 8.16 | |||
Net earnings (loss) from discontinuing operations (in usd per share) | (0.54) | (0.24) | 0 | 0.08 | |||
Net earnings (loss) per common share, basic (in usd per share) | (1.51) | 1.30 | 4.18 | 8.24 | |||
Diluted (millions) | |||||||
Net earnings (loss) from continuing operations (in usd per share) | (0.97) | 1.54 | 4.18 | 8.16 | |||
Net earnings (loss) from discontinuing operations (in usd per share) | (0.54) | (0.24) | 0 | 0.08 | |||
Net earnings (loss) per share, diluted (in usd per share) | $ (1.51) | $ 1.30 | $ 4.18 | $ 8.24 | |||
Weighted average common shares used in computing net earnings (loss) per common share (in shares) | 213,000 | 105,000 | [1] | 115,000 | 105,000 | [1] | |
Weighted average shares outstanding F&G common stock, diluted basis (in shares) | 213,000 | 105,000 | [1] | 115,000 | 105,000 | [1] | |
[1]Weighted average shares outstanding for the year ended December 31, 2021 and for the period June 1, 2020 to December 31, 2020, retrospectively include the effects of the 105,000 for 1 stock split that became effective on June 24, 2022 |
CONSOLIDATED STATEMENTS OF EA_2
CONSOLIDATED STATEMENTS OF EARNINGS (Parenthetical) | Jun. 24, 2022 |
Income Statement [Abstract] | |
Stock split, conversion ratio | 105,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ (314) | $ 136 | $ 481 | $ 865 |
Other comprehensive (loss) earnings: | ||||
Other comprehensive earnings - unrealized gain on investments and other financial instruments | (751) | 1,255 | (3,744) | (378) |
Other comprehensive earnings - unrealized loss on foreign currency translation | (1) | 6 | (5) | (5) |
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 57 | (61) | 212 | (83) |
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | 6 | (3) | 0 | 3 |
Other comprehensive (loss) earnings: | (689) | 1,197 | (3,537) | (463) |
Comprehensive (loss) earnings | $ (1,003) | $ 1,333 | $ (3,056) | $ 402 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized (loss) gain on investments and other financial instruments, net of adjustments to intangible assets and unearned revenue, tax | $ (200,000,000) | $ 332,000,000 | $ (991,000,000) | $ (100,000,000) |
Unrealized (loss) gain on foreign currency translation, tax (less than for May 1-December 31 2020) | 0 | 2,000,000 | (1,000,000) | (1,000,000) |
Reclassification adjustments for change in unrealized gains and losses included in net earnings, tax | $ 15,000,000 | $ (16,000,000) | $ 56,000,000 | $ (22,000,000) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Revision of Prior Period, Adjustment | Previously Reported | Cumulative effect for change in accounting principle | Additional Paid-in Capital | Additional Paid-in Capital Revision of Prior Period, Adjustment | Additional Paid-in Capital Previously Reported | Retained Earnings | Retained Earnings Revision of Prior Period, Adjustment | Retained Earnings Previously Reported | Retained Earnings Cumulative effect for change in accounting principle | Accumulated Other Comprehensive Earnings (Loss) | Accumulated Other Comprehensive Earnings (Loss) Revision of Prior Period, Adjustment | Accumulated Other Comprehensive Earnings (Loss) Previously Reported | Treasury Stock | Treasury Stock Revision of Prior Period, Adjustment | Treasury Stock Previously Reported |
Beginning Balance at Dec. 31, 2019 | $ 2,585 | $ (27) | $ 2,099 | $ 134 | $ (27) | $ 421 | $ (69) | ||||||||||
Other comprehensive earnings - unrealized gain on investments and other financial instruments | (751) | (751) | |||||||||||||||
Other comprehensive earnings - unrealized loss on foreign currency translation | (1) | (1) | |||||||||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 57 | 57 | |||||||||||||||
Common stock dividends | (4) | (4) | |||||||||||||||
Preferred stock dividends (paid in kind) | 7 | 15 | (8) | ||||||||||||||
Option exercises | 10 | 10 | |||||||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | 6 | 6 | |||||||||||||||
Stock-based compensation | 3 | 3 | |||||||||||||||
Net earnings (loss) | (314) | (314) | |||||||||||||||
Ending Balance at May. 31, 2020 | 2,737 | $ 1,166 | $ 1,571 | 2,737 | $ 610 | $ 2,127 | 0 | $ 219 | $ (219) | 0 | $ 268 | $ (268) | 0 | $ 69 | $ (69) | ||
Other comprehensive earnings - unrealized gain on investments and other financial instruments | 1,255 | 1,255 | |||||||||||||||
Other comprehensive earnings - unrealized loss on foreign currency translation | 6 | 6 | |||||||||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | (61) | (61) | |||||||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | (3) | (3) | |||||||||||||||
Stock-based compensation | 4 | 4 | |||||||||||||||
Net earnings (loss) | 136 | 136 | |||||||||||||||
Ending Balance at Dec. 31, 2020 | 4,074 | 2,741 | 136 | 1,197 | 0 | ||||||||||||
Other comprehensive earnings - unrealized gain on investments and other financial instruments | (378) | (378) | |||||||||||||||
Other comprehensive earnings - unrealized loss on foreign currency translation | (5) | (5) | |||||||||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | (83) | (83) | |||||||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | 3 | 3 | |||||||||||||||
Stock-based compensation | 9 | 9 | |||||||||||||||
Net earnings (loss) | 865 | 865 | |||||||||||||||
Ending Balance at Dec. 31, 2021 | 4,485 | 2,750 | 1,001 | 734 | 0 | ||||||||||||
Other comprehensive earnings - unrealized gain on investments and other financial instruments | (3,744) | (3,744) | |||||||||||||||
Other comprehensive earnings - unrealized loss on foreign currency translation | (5) | (5) | |||||||||||||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 212 | 212 | |||||||||||||||
Common stock dividends | (25) | (25) | |||||||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | 0 | ||||||||||||||||
Stock-based compensation | 12 | 12 | |||||||||||||||
Debt to Equity conversion | 400 | 400 | |||||||||||||||
Net earnings (loss) | 481 | 481 | |||||||||||||||
Ending Balance at Dec. 31, 2022 | $ 1,816 | $ 3,162 | $ 1,457 | $ (2,803) | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | ||||
Net earnings (loss) | $ (314) | $ 136 | $ 481 | $ 865 |
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||||
Depreciation and amortization | (51) | 123 | 329 | 484 |
(Gain) loss on sales of investments and other assets and asset impairments, net | 58 | (155) | 436 | (576) |
Loss on the sale of businesses | 0 | 0 | 0 | 14 |
Interest credited/index credits to contractholder account balances | 234 | 749 | (542) | 804 |
Deferred policy acquisition costs and deferred sales inducements | (227) | (296) | (814) | (675) |
Charges assessed to contractholders for mortality and administration | (65) | (100) | (212) | (180) |
Distributions from unconsolidated affiliates, return on investment | 0 | 0 | 119 | 70 |
Stock-based compensation cost | 3 | 4 | 12 | 9 |
Change in NAV of limited partnerships, net | 0 | 0 | (109) | (589) |
Change in valuation of derivatives, equity and preferred securities, net | 280 | (204) | 561 | (140) |
Changes in assets and liabilities, net of effects from acquisitions: | ||||
Change in reinsurance recoverable | (35) | 77 | 21 | 94 |
Change in future policy benefits | (41) | (89) | 1,191 | 634 |
Change in funds withheld from reinsurers | (12) | (14) | 2,056 | 850 |
Net change in income taxes | (11) | (89) | 170 | 138 |
Net change in other assets and other liabilities | (43) | 145 | (528) | 69 |
Net cash provided by (used in) operating activities | (224) | 287 | 3,171 | 1,871 |
Cash Flows from Investing Activities: | ||||
Proceeds from sales, calls and maturities of investment securities | 1,319 | 2,886 | 5,429 | 9,280 |
Additions to property and equipment and capitalized software | (5) | (23) | (32) | (33) |
Purchases of investment securities | (1,942) | (4,197) | (12,444) | (14,577) |
Net proceeds from (purchases of) sales and maturities of short-term investment securities | 0 | (419) | (1,654) | 71 |
Other acquisitions/disposals, net of cash acquired | 0 | 0 | 0 | (43) |
Additional investments in unconsolidated affiliates | (107) | (231) | (982) | (1,710) |
Distributions from unconsolidated affiliates, return of investment | 11 | 119 | 313 | 150 |
Net cash used in investing activities | (724) | (1,865) | (9,370) | (6,862) |
Cash Flows from Financing Activities: | ||||
Borrowings | 0 | 0 | 550 | 400 |
Debt issuance costs | 0 | 0 | (4) | 0 |
Exercise of stock options | 10 | 0 | 0 | 0 |
Contractholder account deposits | 1,803 | 2,967 | 8,530 | 8,166 |
Contractholder account withdrawals | (936) | (1,327) | (3,450) | (2,931) |
Net cash provided by (used in) financing activities | 877 | 1,640 | 5,626 | 5,635 |
Net increase (decrease) in cash and cash equivalents | (71) | 62 | (573) | 644 |
Cash and cash equivalents at beginning of period | 935 | 864 | 1,533 | 889 |
Cash and cash equivalents at end of period | $ 864 | $ 889 | $ 960 | $ 1,533 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Business and Summary of Significant Accounting Policies The following describes the business and significant accounting policies of F&G Annuities & Life, Inc. (“FGAL”) and its subsidiaries (collectively, “we”, “us”, “our”, the "Company" or “F&G”), which have been followed in preparing the accompanying Consolidated Financial Statements. Description of the Business We provide insurance solutions and issue a broad portfolio of annuity and life insurance products, including deferred annuities (fixed indexed and fixed rate annuities), immediate annuities, and indexed universal life ("IUL") insurance, through our retail distribution channels. We also provide funding agreements and pension risk transfer ("PRT") solutions through our institutional channels. F&G has one reporting segment, which is consistent with and reflects the manner by which our chief operating decision maker views and manages the business. FGAL, a Delaware corporation, was formed on August 7, 2020, and following a series of reorganizations, became the parent company for the consolidated financial statements via a contribution agreement between Fidelity National Financial, Inc. (NYSE: FNF)("FNF") and FGAL on November 26, 2020. The prior parent company, FGL Holdings, a Cayman Islands exempted company, was incorporated in the Cayman Islands on January 2, 2020, and became the parent company effective June 1, 2020, in conjunction with the acquisition by FNF, as discussed below. The parent company prior to June 1, 2020, also named FGL Holdings, a Cayman Islands exempted company, was originally incorporated in the Cayman Islands on February 26, 2016, as a Special Purpose Acquisition Company ("SPAC") and was publicly traded on the New York Stock Exchange. On June 1, 2020, FNF acquired 100% of the outstanding equity of FGL Holdings for approximately $2.7 billion pursuant to the Agreement and Plan of Merger, dated February 7, 2020, as amended (the "Merger Agreement"). In connection with the Merger, FNF issued approximately 24 million shares of FNF common stock and paid approximately $1.8 billion in cash to former holders of FGL Holdings ordinary and preferred shares. On August 26, 2020, FNF issued an additional 1 million shares of FNF common stock and paid approximately $100 million in cash to certain former owners of FGL Holdings common stock. At closing, all outstanding shares of FGL Holdings common stock, excluding shares associated with the liability to former owners, were converted into the right to receive the Merger Consideration (as defined in the Merger Agreement). Additionally, each outstanding FGL Holdings Option and FGL Holdings Phantom unit was canceled and converted into options to purchase FNF common stock and phantom units denominated in FNF common stock, and each outstanding warrant to purchase FGL Holdings common stock was converted into the right to purchase and receive upon exercise $8.18 in cash and .0833 shares of FNF common stock. At closing, FNF's subsidiaries' ownership of FGL Holdings common and preferred shares was converted into approximately 7 million shares of FNF common stock. As a result of the Merger Agreement, our financial statement presentation includes the consolidated financial statements of FGL Holdings and its subsidiaries as "Predecessor" for the period prior to the completion of the merger, as well as the consolidated financial statements of FGAL and its subsidiaries after the merger under a new basis established under purchase accounting in accordance with generally accepted accounting principles in the United States ("GAAP"). On March 16, 2022, FNF announced its intention to partially spin off F&G through a dividend to FNF shareholders. On December 1, 2022, FNF distributed, on a pro rata basis, approximately 15% of the common stock of F&G. FNF retained control of F&G through ownership of approximately 85% of F&G common stock. Effective December 1, 2022, F&G commenced “regular-way” trading of its common stock on the New York Stock Exchange (“NYSE”) under the symbol “FG”. Discontinued Operations In connection with the FNF acquisition, certain third party offshore reinsurance businesses were deemed discontinued operations and are presented as such within our consolidated financial statements for all periods presented through the date of their disposition, in accordance with GAAP. On December 18, 2020, we sold F&G Reinsurance Ltd (“F&G Re”) to Aspida Holdings Ltd (“Aspida”). On May 31, 2021, we sold third party reinsurance business held within Front Street Re Cayman Ltd (“FSRC”) to Archipelago Lexa (C) Limited. The transactions did not have a material impact to our GAAP financial results. Refer to Note R Discontinued Operations for more information. Recent Developments 7.40% F&G Senior Notes On January 13, 2023, F&G completed its issuance and sale of $500 million aggregate principal amount of its 7.40% Senior Notes due 2028 (the "7.40% F&G Notes"). F&G intends to use the net proceeds from the offering for general corporate purposes, including to support the growth of assets under management and for F&G's future liquidity requirements. Dividends On December 8, 2022, F&G announced that its Board of Directors declared an inaugural quarterly cash dividend of $0.20 per share of common stock pursuant to the previously announced dividend program in which the Company intends to pay quarterly cash dividends on its common stock at an initial aggregate amount of approximately $100 million per year. The dividend was paid January 31, 2023, to stockholders of record as of January 17, 2023. Going forward, starting next quarter, F&G expects to announce the record date and payment date for each dividend, subject to quarterly review and approval by its Board of Directors and any required regulatory approvals, following completion of the relevant fiscal quarter and with payment in the third month of each subsequent quarter, based on the Company’s view of the prevailing and prospective macroeconomic conditions, regulatory landscape and business performance. F&G Distribution As noted above, on December 1, 2022, FNF distributed, on a pro rata basis, approximately 15% of the common stock of F&G. Revolving Credit Facility On November 22, 2022, we entered into a Credit Agreement (the “Credit Agreement”) with certain lenders (the “Lenders”) and Bank of America, N.A. as administrative agent (in such capacity, the “Administrative Agent”), swing line lender and an issuing bank, pursuant to which the Lenders have made available an unsecured revolving credit facility in an aggregate principal amount of $550 million to be used for working capital and general corporate purposes. As of December 31, 2022, the revolving credit facility was fully drawn with $550 million outstanding. A net partial revolver paydown of $35 million was made on January 6, 2023 and, on February 21, 2023, we entered into an amendment with the Lenders to increase the available aggregate principal amount of the Credit Agreement by $115 million to $665 million. For further information related to the revolving credit facility, refer to Note E Notes Payable . Stock Split, Increase to Authorized shares and Exchange Agreement with FNF On June 24, 2022, the following actions previously approved by the F&G board of directors became effective: (i) a stock split in a ratio of 105,000 for 1. FNF, as the sole shareholder, received, in the form of a dividend, 104,999 additional shares of common stock for each share of common stock held. Earnings per share has been retrospectively adjusted to reflect as if the split occurred as of June 1, 2020 in accordance with GAAP; (ii) an increase in the number of authorized shares of common stock from one thousand (1,000) to five hundred million (500,000,000); (iii) an exchange agreement with FNF pursuant to which F&G transferred shares of its common stock to FNF in exchange for the $400 million FNF Promissory Note, after which the note was retired. There was no gain or loss recorded with respect to the exchange agreement. For the twelve months ended December 31, 2022, interest expense on the FNF Promissory Note was approximately $6 million. Also refer to Note S Subsequent Events . Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements are prepared in accordance with GAAP and include our accounts as well as our wholly owned subsidiaries. All intercompany profits, transactions and balances have been eliminated. We are involved in certain entities that are considered variable interest entities ("VIEs") as defined under GAAP. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. We assess our relationships with VIEs to evaluate if we are the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our Consolidated Financial Statements. See Note C Investments for additional information on our investments in VIEs. Investments Fixed Maturity Securities Available-for-Sale Fixed maturity securities are purchased to support our investment strategies, which are developed based on factors including rate of return, maturity, credit risk, duration, tax considerations and regulatory requirements. Our investments in fixed maturity securities have been designated as available-for-sale ("AFS") and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within accumulated other comprehensive income (loss) ("AOCI"), net of associated adjustments for deferred acquisition costs ("DAC"), value of business acquired ("VOBA"), deferred sales inducements ("DSI"), unearned revenue ("UREV"), Statement of Position 03-1 , Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts, (“SOP 03-1”) reserves, and deferred income taxes. Fair values for fixed maturity securities are principally a function of current market conditions and are primarily valued based on quoted prices in markets that are not active or model inputs that are observable or unobservable. We recognize investment income on fixed maturities based on the effective interest method, which results in the recognition of a constant rate of return on the investment equal to the prevailing rate at the time of purchase or at the time of subsequent adjustments of book value. Realized gains and losses on sales of our fixed maturity securitie s are determined on the first-in first-out cost basis. We generally record security transactions on a trade date basis except for private placements, which are recorded on a settlement date basis. Realized gains and losses on sales of fixed maturity securities are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. Fixed maturity securities AFS are subject to an allowance for credit loss and changes in the allowance are reported in net earnings as a component of Recognized gains and losses, net. For details on our policy around allowance for expected credit losses on available-for-sale securities, refer to Note C Investments. Preferred and Equity Securities Equity and prefer red securities held are carried at fair value as of the balance sheet dates. The fair values of our equity and preferred securities are based on quoted prices in active markets, or are valued based on quoted prices in markets that are not active, model inputs that are observable or unobservable or based on net asset value (“NAV”). Changes in fair value and realized gains and losses on sales of our preferred and equity securities are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. Recognized gains and losses on sales of our preferred and equity securities are credited or charged to earnings on a trade date basis, unless the security is a private placement in which case settlement date basis is used. Interest and dividend income from these investments is reported in Interest and investment income in the accompanying Consolidated Statements of Earnings. Derivative Financial Instruments We hedge certain portions of our exposure to product related equity market risk by entering into derivative transactions (primarily call options). All such derivative instruments are recognized as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. The changes in fair value are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. We purchase financial instruments and issue products that may contain embedded derivative instruments. If it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract for measurement purposes. The embedded derivative is carried at fair value, which is determined through a combination of market observable inputs such as market value of option and interest swap rates and unobservable inputs such as the mortality multiplier, surrender and withdrawal rates and non-performance spread. The changes in fair value are reported within Benefits and other changes in policy reserves in the accompanying Consolidated Statements of Earnings. See a description of the fair value methodology used in Note B Fair Value of Financial Instruments. Reinsurance Related Embedded Derivatives As discussed in Note J Reinsurance , F&G entered into reinsurance agreements with Kubera Insurance (SAC) Ltd. ("Kubera"), effective December 31, 2018, and Aspida Life Re Ltd. ("Aspida Re"), effective January 1, 2021, and amended in August 2021 and September 2022, to cede a quota share of certain deferred annuity and multi-year guaranteed annuities ("MYGA"), respectively, and GAAP and statutory reserves on a coinsurance funds withheld basis, net of applicable existing reinsurance. Effective October 31, 2021, the Kubera agreement was novated from Kubera to Somerset Reinsurance Ltd. ("Somerset"), a certified third-party reinsurer. Funds withheld arrangements allow the Company to retain legal ownership of assets backing reinsurance arrangements until they are earned by the reinsurer while passing credit risk associated with the assets in the funds withheld account to the reinsurer. These arrangements create embedded derivatives considered to be total return swaps with contractual returns that are attributable to the assets and liabilities associated with the reinsurance arrangement. The fair value of the total return swap is based on the change in fair value of the underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangement, including gains and losses from sales, are passed directly to the reinsurer pursuant to contractual terms of the reinsurance arrangement. These total return swaps are not clearly and closely related to the underlying reinsurance contract and thus require bifurcation. The reinsurance related embedded derivative is reported in Prepaid expenses and other assets if in a net gain position, or Accounts payable and accrued liabilities, if in a net loss position on the Consolidated Balance Sheets and the related gains or losses are reported in Recognized gains and losses, net, on the Consolidated Statements of Earnings. Mortgage Loans Our investment in mortgage loans consists of commercial and residential mortgage loans on real estate, which are reported at amortized cost, less allowance for expected credit losses. For details on our policy around allowance for expected credit losses on mortgage loans, refer to Note C Investments . Commercial mortgage loans are continuously monitored by reviewing appraisals, operating statements, rent revenues, annual inspection reports, loan specific credit quality, property characteristics, market trends and other factors. Commercial mortgage loans are rated for the purpose of quantifying the level of risk. Loans are placed on a watch list when the debt service coverage ("DSC") ratio falls below certain thresholds and the loan-to-value ("LTV") ratios exceeds certain thresholds. Loans on the watchlist are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. We define delinquent mortgage loans as 30 days past due, consistent with industry practice. Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. We define nonperforming residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status, which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. We consider residential mortgage loans that are 90 or more days past due and have an LTV greater than 90% to be foreclosure probable. Interest on loans is recognized on an accrual basis at the applicable interest rate on the principal amount outstanding. Loan origination fees and direct costs, as well as premiums and discounts, are amortized as level yield adjustments over the respective loan terms. Unamortized net fees or costs are recognized upon early repayment of the loans. Loan commitment fees are deferred and amortized on an effective yield basis over the term of the loan. Interest income, amortization of premiums and discounts, prepayment fees, and loan commitment fees are reported in Interest and investment income in the accompanying Consolidated Statements of Earnings. Short-term investments Short-term investments consist of financial instruments with an original maturity of one year or less when purchased and include short-term fixed maturity securities and money market instruments, which are carried at fair value, and short-term loans, which are carried at amortized cost, which approximates fair value. Investments in Unconsolidated Affiliates We primarily account for our investments in unconsolidated affiliates (primarily limited partnerships) using the equity method, where the cost is initially recorded as an investment in the entity. Adjustments to the carrying amount reflect our pro rata ownership percentage of the operating results as indicated by NAV in the limited partnership financial statements. Income from investments in unconsolidated affiliates is included within Interest and investment income in the accompanying Consolidated Statements of Earnings. Recognition of income and adjustments to the carrying amount are delayed due to the availability of the related financial statements, which are obtained from the general partner generally on a one to three-month delay. Management meets quarterly with the general partner to determine whether any credit or other market events have occurred since prior quarter financial statements to ensure any material events are properly included in current quarter valuation and investment income. Interest and investment income Dividends and interest income are recorded in Interest and investment income and recognized when earned. Income or losses upon call or prepayment of fixed maturity securities are recognized in Interest and investment income. Amortization of premiums and accretion of discounts on investments in fixed maturity securities are reflected in Interest and investment income over the contractual terms of the investments, and for callable investments at a premium, based on the earliest call date of the investments, in a manner that produces a constant effective yield. For mortgage-backed and asset-backed securities, included in the fixed maturity securities portfolios, one of two models may be used to recognize interest income. For higher rated securities, interest income will be estimated based on an effective yield that considers cash flows received to date plus current expectations of future cash flows. For all other securities, interest income will be estimated based upon an effective yield that considers current expectations of future cash flows. For both interest income models, the estimated future cash flows include assumptions regarding the performance of the underlying collateral pool. Interest and investment income is presented net of investment expenses and the effects of certain reinsurance contracts. Cash and Cash Equivalents Highly liquid instruments purchased as part of cash management with original maturities of three months or less are considered cash equivalents. The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate fair value. Fair Value of Financial Instruments The fair values of financial instruments presented in the Consolidated Financial Statements are estimates of the fair values at a specific point in time using available market information and appropriate valuation methodologies. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. See a description of the fair value methodology used in Note B Fair Value of Financial Instruments . Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations, requires an acquirer to recognize, separately from goodwill, the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree, and to measure these items generally at their acquisition date fair values. Goodwill is recorded as the residual amount by which the purchase price exceeds the fair value of the net assets acquired. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we are required to report provisional amounts in the financial statements for the items for which the accounting is incomplete. Adjustments to provisional amounts initially recorded that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. During the measurement period, we are also required to recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends the sooner of one year from the acquisition date or when we receive the information we were seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not obtainable. Contingent consideration liabilities or receivables recorded in connection with business acquisitions must also be adjusted for changes in fair value until settled. Goodwill Goodwill represents the excess of cost over fair value of identifiable net assets acquired and assumed in a business combination. Goodwill and other intangible assets with indefinite useful lives are reviewed for impairment at the reporting unit level on an annual basis or more frequently if circumstances indicate potential impairment, through a comparison of fair value to the carrying amount. In evaluating the recoverability of goodwill, we first determined that based on the level at which the operating results are shared with and regularly reviewed by the Company’s Chief Operating Decision Maker, the Company is a single reporting unit. Next, we perform a qualitative analysis at the reporting unit level to determine whether there are any events or circumstances that would indicate it is more likely than not that the fair value of our recorded goodwill exceeds its carrying value, prior to performing a full fair-value assessment. We complete annual goodwill impairment analyses in the fourth quarter of each period presented using a September 30 measurement date. For the years ended December 31, 2022, December 31, 2021, the period from June 1, 2020 to December 31, 2020 and for the Predecessor periods from January 1, 2020 to May 31, 2020 we determined there were no events or circumstances which indicated that the carrying value of a reporting unit exceeded the fair value. VOBA, DAC and DSI Our intangible assets include the value of insurance and reinsurance contracts acquired (hereafter referred to as VOBA), DAC and DSI. VOBA is an intangible asset that reflects the amount recorded as insurance contract liabilities less the estimated fair value of in-force contracts (“VIF”) in a life insurance company acquisition. It represents the portion of the purchase price that is allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. VOBA is a function of the VIF, current GAAP reserves, GAAP assets, and deferred tax liability. The VIF is determined by the present value of statutory distributable earnings less opening required capital, and is sensitive to assumptions including the discount rate, surrender rates, partial withdrawals, utilization rates, projected investment spreads, mortality, and expenses. DAC consists principally of commissions that are related directly to the successful sale of new or renewal insurance contracts, which may be deferred to the extent recoverable. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. DSI represents up front bonus credits and vesting and persistency bonuses to policyholder account values, which may be deferred to the extent recoverable. The methodology for determining the amortization of VOBA, DAC and DSI varies by product type. For all insurance contracts accounted for under long-duration contract deposit accounting, amortization is based on assumptions consistent with those used in the development of the underlying contract liabilities, adjusted for emerging experience and expected trends. For all of the insurance intangibles (VOBA, DAC and DSI), the balances are generally amortized over the lives of the policies in relation to the expected emergence of estimated gross profits (“EGPs”) from investment income, surrender charges and other product fees, less policy benefits, maintenance expenses, mortality, and expense margins. Recognized gains (losses) on investments, changes in fair value of derivatives, and changes in fair value of the embedded derivative on our FIA and IUL products are included in actual gross profits in the period realized as described further below. Amortization is reported within Depreciation and amortization in the accompanying Consolidated Statements of Earnings. Changes in assumptions, including our earned rate (i.e., long term assumptions of the Company’s expected earnings on related investments), budgeted option costs (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature) and surrender rates can have a significant impact on VOBA, DAC and DSI balances and amortization rates. Due to the relative size and sensitivity to minor changes in underlying assumptions of those intangible balances, we perform quarterly and annual analyses of the VOBA, DAC and DSI balances for recoverability to ensure that the unamortized portion does not exceed the expected recoverable amounts. At each evaluation date, actual historical gross profits are reflected with the impact on the intangibles reported as “unlocking” as a component of amortization expense, and estimated future gross profits and related assumptions are evaluated for continued reasonableness. Any adjustment in estimated future gross profits requires that the amortization rate be revised (“unlocking”) retroactively to the date of the contract issuance or acquisition date with respect to VOBA. The cumulative unlocking adjustment is recognized as a component of current period amortization and reflected within Depreciation and amortization in the accompanying Consolidated Statements of Earnings. For investment-type products, the VOBA, DAC and DSI assets are adjusted for the impact of unrealized gains (losses) on AFS investments as if these gains (losses) had been realized, with corresponding credits or charges included in AOCI ("shadow adjustments"). Refer to Note Q Recent Accounting Pronouncements for further discussion of accounting pronouncements not yet adopted that may have a significant impact on future estimated amortization expense upon adoption. Other Intangible Assets We have other intangible assets, not including goodwill, VOBA, DAC or DSI, which consist primarily of customer relationships and contracts, the value of distribution network acquired ("VODA"), trademarks and tradenames, state licenses and computer software, which are generally recorded in connection with business combinations at their fair value . Intangible assets with estimable lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In general, customer relationships are amortized over their estimated useful lives, generally ten years, using an accelerated method, which takes into consideration expected customer attrition rates. VODA is an intangible asset that represents the value of an acquired distribution network and is amortized using the sum of years digits method. Contractual relationships are generally amortized over their contractual life. Trademarks and tradenames are generally amortized over ten years. Capitalized computer software includes the fair value of software acquired in business combinations, purchased software and capitalized software development costs. Purchased software is recorded at cost and amortized using the straight-line method over its estimated useful life. Software acquired in business combinations is recorded at its fair value and amortized using straight-line or accelerated methods over its estimated useful life. For internal-use computer software products, internal and external costs incurred during the preliminary project stage are expensed as they are incurred. Internal and external costs incurred during the application development stage are capitalized and amortized on a product by product basis commencing on the date the software is ready for its intended use. We do not capitalize any costs once the software is ready for its intended use. We recorded $14 million of impairment expense to other intangible assets for the year ended December 31, 2022. We recorded no impairment expense to other intangible assets during the year ended December 31, 2021, the period from June 1 to December 31, 2020, and the Predecessor period from January 1 to May 31, 2020. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is computed primarily using the straight-line method based on the estimated useful lives of the related assets: twenty to thirty years for buildings and zero to twenty-five years for furniture, fixtures and equipment. Leasehold improvements are amortized on a straight-line basis over the lesser of the term of the applicable lease or the estimated useful lives of such assets. Property and equipment are reviewed for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. Contractholder Funds Contractholder funds include FIAs, fixed rate annuities, IULs, funding agreements and PRT and immediate annuities contracts without life contingencies. The liabilities for contractholder funds for fixed rate annuities, funding agreements and PRT and immediate annuities contracts without life contingencies consist of contract account balances that accrue to the benefit of the contractholders. The liabilities for FIA and IUL policies consist of the value of the host contract plus the |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or non-performance risk, which may include our own credit risk. We estimate an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market for that asset or liability in the absence of a principal market as opposed to the price that would be paid to acquire the asset or assume a liability (“entry price”). We categorize financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 – Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Level 2 – Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads, and yield curves. Level 3 – Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. NAV - Certain equity investments are measured using NAV as a practical expedient in determining fair value. In addition, our unconsolidated affiliates (primarily limited partnerships) are primarily accounted for using the equity method of accounting with fair value determined using NAV as a practical expedient. Our carrying value reflects our pro rata ownership percentage as indicated by NAV in the limited partnership financial statements, which we may adjust if we determine NAV is not calculated consistent with investment company fair value principles. The underlying investments of the limited partnerships may have significant unobservable inputs, which may include, but are not limited to, comparable multiples and weighted average cost of capital rates applied in valuation models or a discounted cash flow model. Additionally, management meets quarterly with the general partner to determine whether any credit or other market events have occurred since prior quarter financial statements to ensure any material events are properly included in current quarter valuation and investment income. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. In addition to the unobservable inputs, Level 3 fair value investments may include observable components, which are components that are actively quoted or can be validated to market-based sources. The carrying amounts and estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt, which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows (in millions): December 31, 2022 Level 1 Level 2 Level 3 NAV Fair Value Carrying Amount Assets Cash and cash equivalents $ 960 $ — $ — $ — $ 960 $ 960 Fixed maturity securities, available-for-sale: Asset-backed securities — 5,204 6,263 — 11,467 11,467 Commercial mortgage-backed securities — 2,999 37 — 3,036 3,036 Corporates — 11,472 1,427 — 12,899 12,899 Hybrids 93 612 — — 705 705 Municipals — 1,381 29 — 1,410 1,410 Residential mortgage-backed securities — 1,219 302 — 1,521 1,521 U.S. Government 32 — — — 32 32 Foreign Governments — 132 16 — 148 148 Preferred securities 248 474 — — 722 722 Equity securities 54 — — 47 101 101 Derivative investments — 244 — — 244 244 Short term investments 1,556 — — — 1,556 1,556 Reinsurance related embedded derivative, included in other assets — 279 — — 279 279 Other long-term investments — — 71 — 71 71 Total financial assets at fair value $ 2,943 $ 24,016 $ 8,145 $ 47 $ 35,151 $ 35,151 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,115 — 3,115 3,115 Total financial liabilities at fair value $ — $ — $ 3,115 $ — $ 3,115 $ 3,115 December 31, 2021 Level 1 Level 2 Level 3 NAV Fair Value Carrying Amount Assets Cash and cash equivalents $ 1,533 $ — $ — $ — $ 1,533 $ 1,533 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,736 3,959 — 8,695 8,695 Commercial mortgage-backed securities — 2,929 35 — 2,964 2,964 Corporates — 13,883 1,121 — 15,004 15,004 Hybrids 132 749 — — 881 881 Municipals — 1,398 43 — 1,441 1,441 Residential mortgage-backed securities — 722 — — 722 722 U.S. Government 50 — — — 50 50 Foreign Governments — 187 18 — 205 205 Preferred securities 407 620 1 — 1,028 1,028 Equity securities 95 — — 48 143 143 Derivative investments — 816 — 816 816 Short-term investments 50 2 321 — 373 373 Other long-term investments — — 78 — 78 78 Total financial assets at fair value $ 2,267 $ 26,042 $ 5,576 $ 48 $ 33,933 $ 33,933 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,883 — 3,883 3,883 Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities — 73 — — 73 73 Total financial liabilities at fair value $ — $ 73 $ 3,883 $ — $ 3,956 $ 3,956 Valuation Methodologies Cash and Cash Equivalents The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate fair value. Fixed Maturity Preferred and Equity Securities We measure the fair value of our securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity, preferred or equity security, and we will then consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach include third-party pricing services, independent broker quotations, or pricing matrices. We use observable and unobservable inputs in our valuation methodologies. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. In addition, market indicators and industry and economic events are monitored and further market data will be acquired when certain thresholds are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. The significant input used in the fair value measurement of equity securities for which the market approach valuation technique is employed is yield for comparable securities. Increases or decreases in the yields would result in lower or higher, respectively, fair value measurements. For broker-quoted only securities, quotes from market makers or broker-dealers are obtained from sources recognized to be market participants. We believe the broker quotes are prices at which trades could be executed based on historical trades executed at broker-quoted or slightly higher prices. We analyze the third-party valuation methodologies and related inputs to perform assessments to determine the appropriate level within the fair value hierarchy. However, we did not adjust prices received from third parties as of December 31, 2022 or December 31, 2021. Certain equity investments are measured using NAV as a practical expedient in determining fair value. Derivative Financial Instruments The fair value of call options is based upon valuation pricing models, which represents what we would expect to receive or pay at the balance sheet date if we canceled the options, entered into offsetting positions, or exercised the options. Fair values for these instruments are determined internally, based on industry accepted valuation pricing models, which use market-observable inputs, including interest rates, yield curve volatilities, and other factors. The fair value of futures contracts (specifically for FIA contracts) represents the cumulative unsettled variation margin (open trade equity, net of cash settlements), which represents what we would expect to receive or pay at the balance sheet date if we canceled the contracts or entered into offsetting positions. These contracts are classified as Level 1. The fair value measurement of the FIA/IUL embedded derivatives included in contractholder funds is determined through a combination of market observable information and significant unobservable inputs using the option budget method. The market observable inputs are the market value of option and treasury rates. The significant unobservable inputs are the budgeted option cost (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature), surrender rates, mortality multiplier and non-performance spread. The mortality multiplier at December 31, 2022 and December 31, 2021 was applied to the 2012 Individual Annuity mortality tables. Increases or decreases in the market value of an option in isolation would result in a higher or lower, respectively, fair value measurement. Increases or decreases in treasury rates, mortality multiplier, surrender rates, or non-performance spread in isolation would result in a lower or higher fair value measurement, respectively. Generally, a change in any one unobservable input would not directly result in a change in any other unobservable input. Also refer to Management's Estimates in Note A Business and Summary of Significant Accounting Policies regarding updated assumptions during the fourth quarter of 2022 and the implementation of a new actuarial valuation system and assumption updates during the third quarter of 2021. The system implementation and assumption review process included refinements in the calculation of the fair value of the embedded derivative component of our fixed indexed annuities. The fair value of the reinsurance-related embedded derivatives in the funds withheld reinsurance agreements with Kubera (effective October 31, 2021, this agreement was novated from Kubera to Somerset, a certified third party reinsurer) and Aspida Re are estimated based upon the fair value of the assets supporting the funds withheld from reinsurance liabilities. The fair value of the assets is based on a quoted market price of similar assets (Level 2), and therefore the fair value of the embedded derivative is based on market-observable inputs and classified as Level 2. See Note J Reinsurance for further discussion on F&G reinsurance agreements. Short-term Investments The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate fair value. Other Long-term Investments We hold a fund-linked note, which provides for an additional payment at maturity based on the value of an embedded derivative based on the actual return of a dedicated return fund. Fair value of the embedded derivative is based on an unobservable input, the net asset value of the fund at the balance sheet date. The embedded derivative is similar to a call option on the net asset value of the fund with a strike price of zero since we will not be required to make any additional payments at maturity of the fund-linked note in order to receive the net asset value of the fund on the maturity date. A Black-Scholes model determines the net asset value of the fund as the fair value of the call option regardless of the values used for the other inputs to the option pricing model. The net asset value of the fund is provided by the fund manager at the end of each calendar month and represents the value an investor would receive if it withdrew its investment on the balance sheet date. Therefore, the key unobservable input used in the Black-Scholes model is the value of the fund. As the value of the fund increases or decreases, the fair value of the embedded derivative will increase or decrease. See further discussion on the available-for-sale embedded derivative in Note D Derivative Financial Instruments . The fair value of the credit-linked note is based on a weighted average of a broker quote and a discounted cash flow analysis. The discounted cash flow approach is based on the expected portfolio cash flows and amortization schedule reflecting investment expectations, adjusted for assumptions on the portfolio's default and recovery rates, and the note's discount rate. The fair value of the note is provided by the fund manager at the end of each quarter. Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of December 31, 2022 and December 31, 2021 are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2022 (in millions) December 31, 2022 Assets Asset-backed securities $ 5,916 Broker-quoted Offered quotes 52.85% - 117.17% (94.18%) Asset-backed securities 347 Third-Party Valuation Offered quotes 41.43% - 210.50% (67.99%) Commercial mortgage-backed securities 20 Broker-quoted Offered quotes 109.02% - 109.02% (109.02%) Commercial mortgage-backed securities 17 Third-Party Valuation Offered quotes 74.66% - 88.48% (82.74%) Corporates 602 Broker-quoted Offered quotes 79.16% - 102.53% (94.16%) Corporates 825 Third-Party Valuation Offered quotes —% - 104.96% (89.69%) Municipals 29 Third-Party Valuation Offered quotes 93.95% - 93.95% (93.95%) Residential mortgage-backed securities 302 Broker-quoted Offered quotes 0.00% - 91.04% (86.38%) Foreign governments 16 Third-Party Valuation Offered quotes 99.78% - 102.29% (100.56%) Other long-term investments: Available-for-sale embedded derivative 23 Black Scholes model Market value of fund 100.00% Secured borrowing receivable 10 Broker-quoted Offered quotes 100.00% - 100.00% (100.00%) Credit linked note 15 Broker-quoted Offered quotes 96.23% Investment in affiliate 23 Market Comparable Company Analysis EBITDA multiple 5x-5.5x Total financial assets at fair value $ 8,145 Liabilities Derivative investments: FIA/IUL embedded derivatives, included in contractholder funds 3,115 Discounted cash flow Market value of option 0.00% - 23.90% (0.87%) Swap rates 3.88% - 4.73% (4.31%) Mortality multiplier 100.00% - 100.00% (100.00%) Surrender rates 0.25% - 70.00% (6.57%) Partial withdrawals 2.00% - 29.41% (2.73%) Non-performance spread 0.48% - 1.44% (1.30%) Option cost 0.07% - 4.97% (1.89%) Total financial liabilities at fair value $ 3,115 Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2021 (in millions) December 31, 2021 Assets Asset-backed securities $ 3,844 Broker-quoted Offered quotes 52.56% - 260.70% (97.06)% Asset-backed securities 115 Third-Party Valuation Offered quotes 93.02% - 108.45% (104.95)% Commercial mortgage-backed securities 24 Broker-quoted Offered quotes 126.70% - 126.70% (126.70)% Commercial mortgage-backed securities 11 Third Party Valuation Offered quotes 97.91% - 97.91% (97.91)% Corporates 380 Broker-quoted Offered quotes —% - 109.69% (100.91)% Corporates 741 Third-Party Valuation Offered quotes 85.71% - 119.57% (107.72)% Municipals 43 Third-Party Valuation Offered quotes 135.09% - 135.09% (135.09)% Foreign governments 18 Third-Party Valuation Offered quotes 107.23% - 116.44%% (110.11)% Short-term 321 Broker-quoted Offered quotes 100.00% - 100.00% (100.00)% Preferred securities 1 Income-Approach Yield 2.43% Other long-term investments: Available-for-sale embedded derivative 34 Black Scholes model Market value of fund 100.00% Credit linked note 23 Broker-quoted Offered quotes 100.00% Investment in affiliate 21 Market Comparable Company Analysis EBITDA multiple 8x-8x Total financial assets at fair value $ 5,576 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds 3,883 Discounted cash flow Market value of option —% - 38.72% (3.16)% Swap rates 0.05% - 1.94% (1.00)% Mortality multiplier 100.00% - 100.00% (100.00)% Surrender rates 0.25% - 70.00% (6.26)% Partial withdrawals 2.00% - 23.26% (2.72)% Non-performance spread 0.43% - 1.01% (0.68)% Option cost 0.07% - 4.97% (1.83)% Total financial liabilities at fair value $ 3,883 The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2022 and 2021, respectively. This summary excludes any impact of amortization of VOBA, DAC and DSI. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Year ended December 31, 2022 (in millions) Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Level 3 (a) Balance at End of Change in Unrealized Included in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 3,959 $ (6) $ (393) $ 3,269 $ (39) $ (541) $ 14 $ 6,263 $ (426) Commercial mortgage-backed securities 35 — (5) — — — 7 37 (4) Corporates 1,121 1 (187) 710 (20) (215) 17 1,427 (188) Hybrids — — — — — — — — — Municipals 43 — (14) — — — — 29 (13) Residential mortgage-backed securities — — — 316 — — (14) 302 — Foreign Governments 18 — (2) — — — — 16 (1) Short-term 321 — (1) 20 — — (340) — (1) Preferred securities 1 — (1) — — — — — (1) Equity securities — — — — — — — — — Other long-term investments: — — Available-for-sale embedded derivative 34 (11) — — — — — 23 — Investment in affiliate 21 — 2 — — — — 23 2 Credit linked note 23 (1) (1) — (2) (4) — 15 — Secured borrowing receivable — — — — — — 10 10 — Total assets at Level 3 fair value $ 5,576 $ (17) $ (602) $ 4,315 $ (61) $ (760) $ (306) $ 8,145 $ (632) Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,883 (1,382) — 768 — (154) — 3,115 — Total liabilities at Level 3 fair value $ 3,883 $ (1,382) $ — $ 768 $ — $ (154) $ — $ 3,115 $ — (a) The net transfers out of Level 3 during the year ended December 31, 2022 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. Year ended December 31, 2021 (in millions) Balance at Beginning of Period Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Level 3 (a) Balance at End of Period Change in Unrealized Included in OCI Included in Earnings Included in AOCI Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 1,350 $ (1) $ (8) $ 3,417 $ (97) $ (595) $ (107) $ 3,959 $ 4 Commercial mortgage-backed securities 26 — (3) 12 — — — 35 1 Corporates 1,274 8 (40) 154 (9) (247) (19) 1,121 23 Hybrids 4 — — — — (4) — — — Municipals 43 — — — — — — 43 7 Residential mortgage-backed securities 483 — (1) 14 — (102) (394) — 22 Foreign Governments 17 — 1 — — — — 18 2 Short-term — — 2 820 — (501) — 321 — Preferred securities 1 (1) 1 — — — — 1 — Other long-term investments: Available-for-sale embedded derivative 27 7 — — — — — 34 — Credit linked note 23 — — — — — — 23 — Investment in affiliate — — — 21 — — — 21 — Total assets at Level 3 fair value $ 3,248 $ 13 $ (48) $ 4,438 $ (106) $ (1,449) $ (520) $ 5,576 $ 59 Liabilities Future policy benefits 5 — — — (4) (1) — — — FIA/IUL embedded derivatives, included in contractholder funds 3,404 121 — 513 — (155) — 3,883 — Total liabilities at Level 3 fair value $ 3,409 $ 121 $ — $ 513 $ (4) $ (156) $ — $ 3,883 $ — ( a) The net transfers out of Level 3 during the year ended December 31, 2021 were to Level 2. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans The fair value of mortgage loans is established using a discounted cash flow method based on internal credit rating, maturity and future income. This yield-based approach is sourced from our third-party vendor. The internal ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt service coverage, loan-to-value, quality of tenancy, borrower, and payment record. The inputs used to measure the fair value of our mortgage loans are classified as Level 3 within the fair value hierarchy. Investments in Unconsolidated affiliates The fair value of investments in unconsolidated affiliates is determined using NAV as a practical expedient. As discussed in Note A Business and Summary of Significant Accounting Policies, r ecognition of income and adjustments to the carrying amount are delayed due to the availability of the related financial statements, which are obtained from the general partner generally on a one to three-month delay. Policy Loans (included within Other long-term investments) Fair values for policy loans are estimated from a discounted cash flow analysis, using interest rates currently being offered for loans with similar credit risk. Loans with similar characteristics are aggregated for purposes of the calculations. Company Owned Life Insurance Company owned life insurance (“COLI”) is a life insurance program used to finance certain employee benefit expenses. The fair value of COLI is based on net realizable value, which is generally cash surrender value. COLI is classified as Level 3 within the fair value hierarchy. Other Invested Assets (included within Other long-term investments) The fair value of bank loans is estimated using a discounted cash flow method with the discount rate based on weighted average cost of capital ("WACC"). This yield-based approach is sourced from a third-party vendor and the WACC establishes a market participant discount rate by determining the hypothetical capital structure for the asset should it be underwritten as of each period end. Other invested assets are classified as Level 3 within the fair value hierarchy. Investment Contracts Investment contracts include deferred annuities (FIAs and fixed rate annuities), indexed universal life policies (“IULs”), funding agreements and PRT and immediate annuity contracts without life contingencies. The FIA/ IUL embedded derivatives, included in contractholder funds, are excluded as they are carried at fair value. The fair value of the FIA, fixed rate annuity and IUL contracts is based on their cash surrender value (i.e. the cost the Company would incur to extinguish the liability) as these contracts are generally issued without an annuitization date. The fair value of funding agreements and PRT and immediate annuity contracts without life contingencies is derived by calculating a new fair value interest rate using the updated yield curve and treasury spreads as of the respective reporting date. The Company is not required to, and has not, estimated the fair value of the liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value. Other Federal Home Loan Bank of Atlanta (“FHLB”) common stock, Accounts receivable and Notes receivable are carried at cost, which approximates fair value. FHLB common stock is classified as Level 2 within the fair value hierarchy. Accounts receivable and Notes receivable are classified as Level 3 within the fair value hierarchy. Debt The fair value of the $550 million aggregate principal amount of 5.50% senior notes due 2025 is based on quoted market prices of debt with similar credit risk and tenor. The inputs used to measure the fair value of this debt results in a Level 2 classification within the fair value hierarchy. The fair value of the $400 million promissory note with FNF is estimated using a discounted cash flow analysis wherein contractual cash flows are discounted using then current interest rates being offered for debt with similar credit risk and tenor. This debt is classified as Level 3 within the fair value hierarchy. The carrying value of the revolving credit facility at December 31, 2022 approximates fair value as the rates are comparable to those at which we could currently borrow under similar terms. As such, the fair value of the revolving credit facility was classified as a Level 2 measurement. The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. December 31, 2022 (in millions) Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 99 $ — $ — $ 99 $ 99 Commercial mortgage loans — — 2,083 — 2,083 2,406 Residential mortgage loans — — 1,892 — 1,892 2,148 Investments in unconsolidated affiliates — — — 2,427 2,427 2,427 Policy loans — — 52 — 52 52 Other invested assets — — 15 — 15 15 Company-owned life insurance — — 328 — 328 328 Total $ — $ 99 $ 4,370 $ 2,427 $ 6,896 $ 7,475 Liabilities Investment contracts, included in contractholder funds — — 34,464 — 34,464 38,412 Debt — 1,092 — — 1,092 1,114 Total $ — $ 1,092 $ 34,464 $ — $ 35,556 $ 39,526 December 31, 2021 (in millions) Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 72 $ — $ — $ 72 $ 72 Commercial mortgage loans — — 2,265 — 2,265 2,168 Residential mortgage loans — — 1,549 — 1,549 1,581 Investments in unconsolidated affiliates — — — 2,350 2,350 2,350 Policy loans — — 39 — 39 39 Company-owned life insurance — — 299 — 299 299 Total $ — $ 72 $ 4,152 $ 2,350 $ 6,574 $ 6,509 Liabilities Investment contracts, included in contractholder funds — — 27,448 — 27,448 31,529 Debt — 615 412 — 1,027 977 Total $ — $ 615 $ 27,860 $ — $ 28,475 $ 32,506 For investments for which NAV is used, we do not have any significant restrictions in our ability to liquidate our positions in these investments, other than obtaining general partner approval, nor do we believe it is probable a price less than NAV would be received in the event of a liquidation. We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3, or between other levels, at the beginning fair value for the reporting |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Our fixed maturity securities investments have been designated as available-for-sale, and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included in AOCI, net of associated adjustments for VOBA, DAC, DSI, UREV, SOP 03-1 reserves, and deferred income taxes. Our preferred and equity securities investments are carried at fair value with unrealized gains and losses included in net earnings. The Company’s consolidated investments are summarized as follows (in millions): December 31, 2022 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 12,209 $ (8) $ 36 $ (770) $ 11,467 $ 11,467 Commercial mortgage-backed securities 3,309 (1) 12 (284) 3,036 3,036 Corporates 15,879 (15) 30 (2,995) 12,899 12,899 Hybrids 781 — 8 (84) 705 705 Municipals 1,695 — 4 (289) 1,410 1,410 Residential mortgage-backed securities 1,631 (7) 6 (109) 1,521 1,521 U.S. Government 34 — — (2) 32 32 Foreign Governments 185 — — (37) 148 148 Total available-for-sale securities $ 35,723 $ (31) $ 96 $ (4,570) $ 31,218 $ 31,218 December 31, 2021 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 8,516 $ (3) $ 220 $ (38) $ 8,695 $ 8,695 Commercial mortgage-backed securities 2,669 (2) 308 (11) 2,964 2,964 Corporates 14,372 — 784 (152) 15,004 15,004 Hybrids 812 — 69 — 881 881 Municipals 1,386 — 66 (11) 1,441 1,441 Residential mortgage-backed securities 722 (3) 7 (4) 722 722 U.S. Government 50 — — — 50 50 Foreign Governments 197 — 8 — 205 205 Total available-for-sale securities $ 28,724 $ (8) $ 1,462 $ (216) $ 29,962 $ 29,962 Securities held on deposit with various state regulatory authorities had a fair value of $17,751 million and $22,219 million at December 31, 2022 and December 31, 2021, respectively. As of December 31, 2022 and December 31, 2021, the Company held $27 million and no material investments that were non-income producing for a period greater than twelve months, respectively. As of December 31, 2022 and December 31, 2021, the Company's accrued interest receivable balance was $ 358 246 In accordance with our FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to us for general purposes. The collateral investments had a fair value of $3,387 million and $2,469 million as of December 31, 2022 and December 31, 2021, respectively. The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. December 31, 2022 December 31, 2021 (in millions) (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and U.S. Government Securities: Due in one year or less $ 124 $ 123 $ 105 $ 106 Due after one year through five years 2,193 2,059 1,724 1,754 Due after five years through ten years 1,840 1,633 2,141 2,201 Due after ten years 14,417 11,379 12,842 13,515 Subtotal 18,574 15,194 16,812 17,576 Other securities, which provide for periodic payments: Asset-backed securities 12,209 11,467 8,516 8,695 Commercial mortgage-backed securities 3,309 3,036 2,669 2,964 Structured hybrids — — 5 5 Residential mortgage-backed securities 1,631 1,521 722 722 Subtotal 17,149 16,024 11,912 12,386 Total fixed maturity available-for-sale securities $ 35,723 $ 31,218 $ 28,724 $ 29,962 Allowance for Current Expected Credit Loss We regularly review AFS securities for declines in fair value that we determine to be credit related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit related, and if so, the magnitude of the credit loss: • The extent to which the fair value is less than the amortized cost basis; • The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); • The financial condition of and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal based upon the issuer's financial strength); • Current delinquencies and nonperforming assets of underlying collateral; • Expected future default rates; • Collateral value by vintage, geographic region, industry concentration or property type; • Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and • Contractual and regulatory cash obligations and the issuer's plans to meet such obligations. We recognize an allowance for current expected credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We measure the credit loss using a discounted cash flow model that utilizes the single best estimate cash flow and the recognized credit loss is limited to the total unrealized loss on the security (i.e. the fair value floor). Cash flows are discounted using the implicit yield of bonds at their time of purchase and the current book yield for asset and mortgage backed securities as well as variable rate securities. We recognize the expected credit losses in Recognized gains and losses, net in the Consolidated Statements of Earnings, with an offset for the amount of non-credit impairments recognized in AOCI. We do not measure a credit loss allowance on accrued investment income because we write-off accrued interest through Interest and investment income when collectability concerns arise. We consider the following in determining whether write-offs of a security’s amortized cost is necessary: • We believe amounts related to securities have become uncollectible; • We intend to sell a security; or • It is more likely than not that we will be required to sell a security prior to recovery. If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible (generally based on proximity to expected credit loss), an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. The remainder of unrealized loss is held in AOCI. The activity in the allowance for expected credit losses of available-for-sale securities aggregated by investment category was as follows (in millions): Year ended December 31, 2022 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (a) (Additions) reductions in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Write offs charged against the allowance Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Asset-backed securities $ (3) $ (7) $ — $ (1) $ 2 $ — $ 1 — $ (8) Commercial mortgage-backed securities (2) — — — 1 — — — (1) Corporates — (15) — — — — — — (15) Residential mortgage-backed securities (3) (2) — (2) — — — — (7) Total available-for-sale securities $ (8) $ (24) $ — $ (3) $ 3 $ — $ 1 $ — $ (31) Year ended December 31, 2021 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (a) (Additions) reductions in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Write offs charged against the allowance Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Asset-backed securities $ — $ — $ (1) $ (2) $ — $ — $ — — $ (3) Commercial mortgage-backed securities — (2) — — — — — — (2) Corporates (7) — — 6 — — — 1 — Residential mortgage-backed securities (3) — — — — — — — (3) Total available-for-sale securities $ (10) $ (2) $ (1) $ 4 $ — $ — $ — $ 1 $ (8) Period from June 1 to December 31, 2020 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (a) (Additions) reductions in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Write offs charged against the allowance Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Asset-backed securities $ — $ 7 $ (9) $ 2 $ — $ — $ — $ — $ — Corporates — 1 (17) — 3 4 2 — (7) Hybrids — — (3) — 3 — — — — Residential mortgage-backed securities — 2 (7) 1 1 — — — (3) Total available-for-sale securities $ — $ 10 $ (36) $ 3 $ 7 $ 4 $ 2 $ — $ (10) Period from January 1 to May 31, 2020 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (a) (Additions) reductions in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Write offs charged against the allowance Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Asset-backed securities $ — $ (17) $ — $ 12 $ — $ — $ — $ — $ (5) Corporates — (28) — — 8 12 1 — (7) Residential mortgage-backed securities — (6) — 3 — — — — (3) Total available-for-sale securities $ — $ (51) $ — $ 15 $ 8 $ 12 $ 1 $ — $ (15) (a) Purchased credit deteriorated financial assets (“PCD”) PCD’s are AFS securities purchased at a discount, where part of that discount is attributable to credit. Credit loss allowances are calculated for these securities as of the date of their acquisition, with the initial allowance serving to increase amortized cost. The following table summarizes year to date PCD AFS security purchases (in millions). Purchased credit-deteriorated available-for-sale debt securities December 31, 2022 December 31, 2021 Purchase price $ — $ 4 Allowance for credit losses at acquisition — 1 AFS purchased credit-deteriorated par value $ — $ 5 The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost were as follows (dollars in millions): December 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities Asset-backed securities $ 7,001 $ (410) $ 3,727 $ (360) $ 10,728 $ (770) Commercial mortgage-backed securities 2,065 (168) 475 (116) 2,540 (284) Corporates 8,780 (1,679) 3,231 (1,312) 12,011 (2,991) Hybrids 619 (83) 3 (1) 622 (84) Municipals 948 (176) 352 (113) 1,300 (289) Residential mortgage-backed securities 990 (51) 184 (22) 1,174 (73) U.S. Government 11 (1) 21 (1) 32 (2) Foreign Government 119 (32) 14 (5) 133 (37) Total available-for-sale securities $ 20,533 $ (2,600) $ 8,007 $ (1,930) $ 28,540 $ (4,530) Total number of available-for-sale securities in an unrealized loss position less than twelve months 2,774 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 1,212 Total number of AFS securities in an unrealized loss position 3,986 December 31, 2021 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities Asset-backed securities $ 4,410 $ (31) $ 146 $ (7) $ 4,556 $ (38) Commercial mortgage-backed securities 600 (11) 1 — 601 (11) Corporates 5,017 (126) 394 (26) 5,411 (152) Hybrids 3 — — — 3 — Municipals 407 (5) 85 (6) 492 (11) Residential mortgage-backed securities 325 (3) 11 (1) 336 (4) U.S. Government 32 — 4 — 36 — Foreign Government 27 — — — 27 — Total available-for-sale securities $ 10,821 $ (176) $ 641 $ (40) $ 11,462 $ (216) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,955 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 67 Total number of AFS securities in an unrealized loss position 2,022 We determined the increase in unrealized losses as of December 31, 2022 was caused by higher treasury rates as well as wider spreads. This is in part due to the Federal Reserve's action to increase rates in efforts to combat inflation. For securities in an unrealized loss position as of December 31, 2022, our allowance for expected credit loss was $31 million. We believe that the unrealized loss position for which we have not recorded an allowance for expected credit loss as of December 31, 2022 was primarily attributable to interest rate increases, near-term illiquidity, and other macroeconomic uncertainties as opposed to issuer specific credit concerns. Mortgage Loans Our mortgage loans are collateralized by commercial and residential properties. Commercial Mortgage Loans Commercial mortgage loans (“CMLs”) represented approximately 6% of our total investments as of December 31, 2022 and December 31, 2021. The mortgages loans in our investment portfolio, are generally comprised of high quality commercial first lien and mezzanine real estate loans. Mortgage loans are primarily on income producing properties including industrial properties, retail buildings, multifamily properties and office buildings. We diversify our CML portfolio by geographic region and property type to attempt to reduce concentration risk. We continuously evaluate CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt. The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables (dollars in millions): December 31, 2022 December 31, 2021 Amortized Cost % of Total Amortized Cost % of Total Property Type: Hotel $ 18 1 % $ 19 1 % Industrial 520 22 % 497 23 % Mixed Use 12 1 % 13 1 % Multifamily 1,013 42 % 894 41 % Office 330 14 % 343 16 % Retail 105 4 % 121 6 % Student Housing 83 3 % 83 4 % Other 335 13 % 204 8 % Total commercial mortgage loans, gross of valuation allowance $ 2,416 100 % $ 2,174 100 % Allowance for expected credit loss (10) (6) Total commercial mortgage loans, net of valuation allowance $ 2,406 $ 2,168 U.S. Region: East North Central $ 151 6 % $ 137 6 % East South Central 76 3 % 79 4 % Middle Atlantic 326 13 % 293 13 % Mountain 355 15 % 236 11 % New England 158 7 % 149 7 % Pacific 708 28 % 649 30 % South Atlantic 521 22 % 459 21 % West North Central 4 1 % 12 1 % West South Central 117 5 % 160 7 % Total commercial mortgage loans, gross of valuation allowance $ 2,416 100 % $ 2,174 100 % Allowance for expected credit loss (10) (6) Total commercial mortgage loans, net of valuation allowance $ 2,406 $ 2,168 Loan-to-value (“LTV”) and debt service coverage (“DSC”) ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.00 indicates that a property’s operations do not generate sufficient income to cover debt payments. We normalize our DSC ratios to a 25-year amortization period for purposes of our general loan allowance evaluation. The following tables presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios, gross of valuation allowances (dollars in millions) : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 <1.00 December 31, 2022 LTV Ratios: Less than 50.00% $ 511 $ 4 $ 11 $ 526 22 % $ 490 24 % 50.00% to 59.99% 706 — — 706 29 % 615 30 % 60.00% to 74.99% 1,154 3 — 1,157 48 % 955 45 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Commercial mortgage loans (a) $ 2,371 $ 7 $ 29 $ 2,407 100 % $ 2,074 100 % December 31, 2021 LTV Ratios: Less than 50.00% $ 626 $ 33 $ 9 $ 668 31 % $ 745 33 % 50.00% to 59.99% 470 — — 470 22 % 481 21 % 60.00% to 74.99% 1,036 — — 1,036 47 % 1,039 46 % Commercial mortgage loans $ 2,132 $ 33 $ 9 $ 2,174 100 % $ 2,265 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $9 million. We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At December 31, 2022 we had one CML that was delinquent in principal or interest payments as shown in the risk rating exposure table below. At December 31, 2021 we had no CMLs that were delinquent in principal or interest payments. Residential Mortgage Loans Residential mortgage loans (“RMLs”) represented approximately 5% and 4% of our total investments as of December 31, 2022 and December 31, 2021, respectively. Our residential mortgage loans are closed end, amortizing loans and 100% of the properties are located in the United States. We diversify our RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances (dollars in millions): December 31, 2022 U.S. State: Amortized Cost % of Total Florida $ 324 15 % Texas 215 10 % New Jersey 172 8 % Pennsylvania 153 7 % California 139 6 % New York 138 6 % Georgia 125 6 % All other states (a) 914 42 % Total residential mortgage loans $ 2,180 100 % (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2022. December 31, 2021 U.S. State: Amortized Cost % of Total Florida $ 234 15 % Texas 170 10 % New Jersey 153 10 % All other states (a) 1,049 65 % Total residential mortgage loans $ 1,606 100 % (a) The individual concentration of each state is less than 9% as of December 31, 2021. Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. We define non-performing residential mortgage loans as those that are 90 or more days past due or in nonaccrual status, which is assessed monthly. The credit quality of RMLs was as follows (dollars in millions): December 31, 2022 December 31, 2021 Performance indicators: Amortized Cost % of Total Amortized Cost % of Total Performing $ 2,118 97 % $ 1,533 95 % Non-performing 62 3 % 73 5 % Total residential mortgage loans, gross of valuation allowance $ 2,180 100 % $ 1,606 100 % Allowance for expected loan loss (32) — % (25) — % Total residential mortgage loans, net of valuation allowance $ 2,148 100 % $ 1,581 100 % Loans segregated by risk rating exposure were as follows, gross of valuation allowances (in millions): December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Residential mortgages Current (less than 30 days past due) $ 766 $ 884 $ 214 $ 185 $ 23 $ 33 $ 2,105 30-89 days past due 2 7 — 4 — — 13 Over 90 days past due 3 9 15 34 1 — 62 Total residential mortgages $ 771 $ 900 $ 229 $ 223 $ 24 $ 33 $ 2,180 Commercial mortgages Current (less than 30 days past due) $ 350 $ 1,300 $ 488 $ — $ — $ 269 $ 2,407 30-89 days past due — — — — — — — Over 90 days past due — — — — — 9 9 Total commercial mortgages $ 350 $ 1,300 $ 488 $ — $ — $ 278 $ 2,416 December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total Residential mortgages Current (less than 30 days past due) $ 795 $ 293 $ 323 $ 50 $ 36 $ 21 $ 1,518 30-89 days past due 5 4 6 1 — — 16 Over 90 days past due 1 23 46 2 — — 72 Total residential mortgages $ 801 $ 320 $ 375 $ 53 $ 36 $ 21 $ 1,606 Commercial mortgages Current (less than 30 days past due) $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Commercial mortgages LTV Less than 50.00% $ 70 $ 120 $ 207 $ — $ — $ 129 $ 526 50.00% to 59.99% 149 268 158 — — 131 706 60.00% to 74.99% 113 912 123 — — 9 1,157 75.00% to 84.99% 9 — — — — 9 18 Total commercial mortgages (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 Commercial mortgages DSCR Greater than 1.25x $ 329 $ 1,300 $ 488 $ — $ — $ 254 $ 2,371 1.00x - 1.25x 3 — — — — 4 7 Less than 1.00x 9 — — — — 20 29 Total commercial mortgages (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 ( a) Excludes loans under development with an amortized cost and estimated fair value of $9 million. December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total Commercial mortgages LTV Less than 50.00% $ 120 $ 229 $ — $ 6 $ — $ 313 $ 668 50.00% to 59.99% 267 192 — — — 11 470 60.00% to 74.99% 914 122 — — — — 1,036 Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 Commercial mortgages DSCR Greater than 1.25x $ 1,301 $ 543 $ — $ 4 $ — $ 284 $ 2,132 1.00x - 1.25x — — — 2 — 31 33 Less than 1.00x — — — — — 9 9 Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 Non-accrual loans by amortized cost were as follows (in millions): Amortized cost of loans on non-accrual December 31, 2022 December 31, 2021 Residential mortgage $ 62 $ 72 Commercial mortgage 9 — Total non-accrual mortgages $ 71 $ 72 Immaterial interest income was recognized on non-accrual financing receivables for the twelve months ended December 31, 2022 and December 31, 2021. It is our policy to cease to accrue interest on loans that are 90 days or more delinquent. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes 90 days or more delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of December 31, 2022 and December 31, 2021, we had $71 million and $72 million, respectively, of mortgage loans that were over 90 days past due, of which $38 million and $39 million was in the process of foreclosure as of December 31, 2022 and December 31, 2021, respectively. Allowance for Expected Credit Loss We estimate expected credit losses for our commercial and residential mortgage loan portfolios using a probability of default/loss given default model. Significant inputs to this model include, where applicable, the loans' current performance, underlying collateral type, location, contractual life, LTV, DSC and Debt to Income or FICO. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. The allowances for our mortgage loan portfolio is summarized as follows (in millions): Year ended December 31, 2022 Year ended December 31, 2021 Residential Mortgages Commercial Mortgages Total Residential Mortgages Commercial Mortgages Total Beginning Balance $ 25 $ 6 $ 31 $ 37 $ 2 $ 39 Provision for loan losses 7 4 11 (12) 4 (8) Ending Balance $ 32 $ 10 $ 42 $ 25 $ 6 $ 31 Period from June 1 to December 31, 2020 Period from January 1 to May 31, 2020 Residential Mortgages Commercial Mortgages Total Residential Mortgages Commercial Mortgages Total Predecessor Beginning Balance $ — $ — $ — $ 7 $ 1 $ 8 Provision for loan losses 30 2 32 7 — 7 For initial credit losses on purchased loans accounted for as PCD financial assets 7 — 7 — — — Ending Balance $ 37 $ 2 $ 39 $ 14 $ 1 $ 15 An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as we have a process to write-off interest on loans that enter into non-accrual status (90 days or more past due). Allowances for expected credit losses are measured on accrued interest income for residential mortgage loans and were immaterial as of December 31, 2022 and December 31, 2021. Interest and Investment Income The major sources of Interest and investment income reported on the accompanying Consolidated Statements of Earnings were as follows (in millions): Year Ended December 31, Period from Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Fixed maturity securities, available-for-sale $ 1,431 $ 1,213 $ 643 $ 426 Equity securities 17 11 7 4 Preferred securities 49 47 35 16 Mortgage loans 186 131 50 36 Invested cash and short-term investments 33 7 — 4 Limited partnerships 110 589 75 (37) Other investments 20 17 8 5 Gross investment income 1,846 2,015 818 454 Investment expense (191) (163) (75) (51) Interest and investment income $ 1,655 $ 1,852 $ 743 $ 403 Interest and investment income is shown net of amounts attributable to certain funds withheld reinsurance agreements which is passed along to the reinsurer in accordance with the terms of these agreements. Interest and investment income attributable to these agreements, and thus excluded from the totals in the table above, was $109 million, $53 million, $21 million and $15 million, for the year ended December 31, 2022, the year ended December 31, 2021, the period from June 1 to December 31, 2020 and the Predecessor period from January 1 to May 31, 2020, respectively. Recognized Gains and Losses, net Details underlying Recognized gains and losses, net reported on the accompanying Consolidated Statements of Earnings were as follows (in millions): Year Ended December 31, Period from Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Net realized (losses) gains on fixed maturity available-for-sale securities $ (241) $ 102 $ 95 $ (49) Net realized/unrealized (losses) gains on equity securities (a) (40) (37) 29 (30) Net realized/unrealized (losses) gains on preferred securities (b) (167) (14) 55 (40) Realized (losses) gains on other invested assets (13) 6 — (2) Change in allowance for expected credit losses (34) 4 (19) (23) Derivatives and embedded derivatives: Realized (losses) gains on certain derivative instruments (164) 455 76 11 Unrealized (losses) gains on certain derivative instruments (693) 160 161 (223) Change in fair value of reinsurance related embedded derivatives (c) 352 34 (53) 19 Change in fair value of other derivatives and embedded derivatives (10) 5 8 (1) Realized (losses) gains on derivatives and embedded derivatives (515) 654 192 (194) Recognized gains and losses, net $ (1,010) $ 715 $ 352 $ (338) (a) Includes net valuation (losses) gains of $(40) million, $(37) million, $30 million and $(30) million for the years ended December 31, 2022 and 2021, the period from June 1 to December 31, 2020 and the Predecessor period from January 1 to May 31, 2020, respectively. (b) Includes net valuation (losses) gains of $(159) million, $(14) million, $56 million and $(34) million for the years ended December 31, 2022 and 2021, the period from June 1 to December 31, 2020 and the Predecessor period from January 1 to May 31, 2020, respectively. (c) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties with Kubera (novated from Kubera to Somerset effective October 31, 2021) and Aspida Re. Recognized gains and losses is shown net of amounts attributable to certain funds withheld reinsurance agreements which is passed along to the reinsurer in accordance with the terms of these agreements. Recognized gains and losses attributable to these agreements, and thus excluded from the totals in the table above, was $381 million, $15 million, $(58) million and $21 million for the year ended December 31, 2022, the year ended December 31, 2021, the period from June 1 to December 31, 2020 and the Predecessor period from January 1 to May 31, 2020, respectively. The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions): Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Proceeds $ 3,097 $ 4,555 $ 1,398 $ 513 Gross gains 13 142 101 29 Gross losses (239) (42) (5) (20) Unconsolidated Variable Interest Entities We own investments in VIEs that are not consolidated within our financial statements. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. VIEs are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While we participate in the benefits from VIEs in which we invest, but do not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under our common control. It is for this reason that we are not considered the primary beneficiary for the VIE investments that are not consolidated. We invest in various limited partnerships and limited liability companies primarily as a passive investor. These investments are primarily in credit funds with a bias towards current income, real assets, or private equity. Limited partnership and limited liability company interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our Consolidated Balance Sheets. In addition, we invest in structured investments, which may be VIEs, but for which we are not the primary beneficiary. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities included in fixed maturity securities available for sale on our Consolidated Balance Sheets. Our maximum exposure to loss with respect to these VIEs is limited to the investment carrying amounts reported in our Consolidated Balance Sheets for limited partnerships and the amortized costs of our fixed maturity securities, in addition to any required unfunded commitments (also refer to Note F Commitments and Contingencies ). The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs (in millions): December 31, 2022 December 31, 2021 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 2,427 $ 4,030 $ 2,350 $ 3,496 Fixed maturity securities 15,680 17,404 12,382 12,802 Total unconsolidated VIE investments $ 18,107 $ 21,434 $ 14,732 $ 16,298 Concentrations Our underlying investment concentrations that exceed 10% |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The carrying amounts of derivative instruments, including derivative instruments embedded in FIA and IUL contracts, and reinsurance is as follows (in millions): December 31, 2022 December 31, 2021 Assets: Derivative investments: Call options $ 244 $ 816 Other long-term investments: Other embedded derivatives 23 33 Prepaid expenses and other assets: Reinsurance related embedded derivatives 279 — $ 546 $ 849 Liabilities: Contractholder funds: FIA/ IUL embedded derivatives $ 3,115 $ 3,883 Accounts payable and accrued liabilities: Reinsurance related embedded derivatives — 73 $ 3,115 $ 3,956 The change in fair value of derivative instruments included within Recognized gains and losses, net, in the accompanying Consolidated Statements of Earnings is as follows (in millions): Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Net investment gains (losses): Predecessor Call options $ (862) $ 597 $ 229 $ (221) Futures contracts (7) 8 15 8 Foreign currency forwards 12 10 (7) 1 Other derivatives and embedded derivatives (10) 5 8 (1) Reinsurance related embedded derivatives 352 34 (53) 19 Total net investment gains (losses) $ (515) $ 654 $ 192 $ (194) Benefits and other changes in policy reserves: FIA/ IUL embedded derivatives (decrease) increase $ (768) $ 479 $ 552 $ 239 Additional Disclosures FIA/IUL Embedded Derivative and Call Options and Futures We have FIA and IUL contracts that permit the holder to elect an interest rate return or an equity index linked component, where interest credited to the contracts is linked to the performance of various equity indices, primarily the S&P 500 Index. This feature represents an embedded derivative under GAAP. The FIA/IUL embedded derivatives are valued at fair value and included in the liability for contractholder funds in the accompanying Consolidated Balance Sheets with changes in fair value included as a component of Benefits and other changes in policy reserves in the Consolidated Statements of Earnings. See a description of the fair value methodology used in Note B Fair Value of Financial Instruments . We purchase derivatives consisting of a combination of call options and futures contracts (specifically for FIA contracts) on the applicable market indices to fund the index credits due to FIA/IUL contractholders. The call options are one two three five Other market exposures are hedged periodically depending on market conditions and our risk tolerance. Our FIA/IUL hedging strategy economically hedges the equity returns and exposes us to the risk that unhedged market exposures result in divergence between changes in the fair value of the liabilities and the hedging assets. We use a variety of techniques, including direct estimation of market sensitivities, to monitor this risk daily. We intend to continue to adjust the hedging strategy as market conditions and our risk tolerance changes. Credit Risk We are exposed to credit loss in the event of non-performance by our counterparties on the call options and reflect assumptions regarding this non-performance risk in the fair value of the call options. The non-performance risk is the net counterparty exposure based on the fair value of the open contracts less collateral held. We maintain a policy of requiring all derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. Information regarding our exposure to credit loss on the call options we hold is presented in the following table (in millions): December 31, 2022 Counterparty Credit Rating (Fitch/Moody's/S&P) (1) Notional Amount Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 3,563 $ 23 $ — $ 23 Morgan Stanley */Aa3/A+ 1,699 14 19 — Barclay's Bank A+/A1/A 6,049 65 59 6 Canadian Imperial Bank of Commerce AA/Aa2/A+ 5,169 68 64 4 Wells Fargo A+/A1/BBB+ 1,361 17 17 — Goldman Sachs A/A2/BBB+ 1,133 9 10 — Credit Suisse BBB+/A3/A- 1,039 5 5 — Truist A+/A2/A 2,489 35 36 — Citibank A+/Aa3/A+ 795 8 9 — Total $ 23,297 $ 244 $ 219 $ 33 December 31, 2021 Counterparty Credit Rating (Fitch/Moody's/S&P) (1) Notional Amount Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 3,307 $ 128 $ 86 $ 42 Morgan Stanley */Aa3/A+ 2,184 86 92 — Barclay's Bank A+/A1/A 5,197 231 233 — Canadian Imperial Bank of Commerce AA/Aa2/A+ 2,936 147 151 — Wells Fargo A+/A1/BBB+ 2,445 89 90 — Goldman Sachs A/A2/BBB+ 307 10 10 — Credit Suisse A/A1/A+ 1,485 74 75 — Truist A+/A2/A 1,543 51 53 — Total $ 19,404 $ 816 $ 790 $ 42 __________________ (1) An * represents credit ratings that were not available. Collateral Agreements We are required to maintain minimum ratings as a matter of routine practice as part of our over-the-counter derivative agreements on ISDA forms. Under some ISDA agreements, we have agreed to maintain certain financial strength ratings. A downgrade below these levels provides the counterparty under the agreement the right to terminate the open option contracts between the parties, at which time any amounts payable by us or the counterparty would be dependent on the market value of the underlying option contracts. Our current rating does not allow any counterparty the right to terminate ISDA agreements. In certain transactions, both us and the counterparty have entered into a collateral support agreement requiring either party to post collateral when the net exposures exceed pre-determined thresholds. For all counterparties, except Merrill Lynch, this threshold is set to zero. As of December 31, 2022 and December 31, 2021 counterparties posted $219 million and $790 million, respectively, of collateral of which $178 million and $576 million, respectively, is included in cash and cash equivalents with an associated payable for this collateral included in accounts payable and accrued liabilities on the Consolidated Balance Sheets. Accordingly, the maximum amount of loss due to credit risk that we would incur if parties to the call options failed completely to perform according to the terms of the contracts was $33 million at December 31, 2022 and $42 million at December 31, 2021. We are required to pay counterparties the effective federal funds rate each day for cash collateral posted to F&G for daily mark to market margin changes. We reinvest derivative cash collateral to reduce the interest cost. Cash collateral is invested in overnight investment sweep products, which are included in cash and cash equivalents in the accompanying Consolidated Balance Sheets. We held 409 and 329 futures contracts at December 31, 2022 and December 31, 2021, respectively. The fair value of the futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements). We provide cash collateral to the counterparties for the initial and variation margin on the futures contracts, which is included in cash and cash equivalents in the accompanying Consolidated Balance Sheets. The amount of cash collateral held by the counterparties for such contracts was $3 million and $3 million at December 31, 2022 and December 31, 2021, respectively. Reinsurance Related Embedded Derivatives The Company entered into a reinsurance agreement with Kubera effective December 31, 2018, to cede certain multi-year guaranteed annuity (“MYGA”) and deferred annuity business on a coinsurance funds withheld basis, net of applicable existing reinsurance. Effective October 31, 2021, this agreement was novated from Kubera to Somerset, a certified third-party reinsurer. Additionally, F&G entered into a reinsurance agreement with Aspida Re effective January 1, 2021, and amended in August 2021 and September 2022, to cede a quota share of certain deferred annuity business on a funds withheld basis. Fair value movements in the funds withheld balances associated with these arrangements creates an obligation for F&G to pay Somerset and Aspida Re at a later date, which results |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes payable consists of the following: December 31, 2022 December 31, 2021 (In millions) Revolving Credit Facility - Short-term $ 547 $ — 5.50% F&G Notes 567 577 FNF Promissory Note — 400 $ 1,114 $ 977 On November 22, 2022, we entered into a Credit Agreement (the “Credit Agreement”) with certain lenders (the “Lenders”) and Bank of America, N.A. as administrative agent (in such capacity, the “Administrative Agent”), swing line lender and an issuing bank, pursuant to which the Lenders have made available an unsecured revolving credit facility in an aggregate principal amount of $550 million to be used for working capital and general corporate purposes. The Credit Agreement matures the earlier to occur of November 22, 2025 or 91 days prior to May 1, 2025, the stated maturity date of the 5.50% F&G Notes, unless the principal amount of the 5.50% F&G Notes is $150,000,000 or less at such time, the 5.50% F&G Notes have been redeemed or defeased in full, and any refinancing Indebtedness incurred in connection therewith matures at least 91 days after the date that is 3 years from the Effective Date or certain other conditions are met. As the revolving loans under the Credit Agreement mature in less than one year, the amounts outstanding under the Credit Agreement are considered short-term. Revolving loans under the Credit Agreement generally bear interest at a variable rate based on either (i) the base rate (which is the highest of (a) one-half of one percent in excess of the federal funds rate, (b) the Administrative Agent’s “prime rate”, or (c) the sum of one percent plus Term The Secured Overnight Financing Rate (“SOFR”) plus a margin of between 30.0 and 80.0 basis points depending on the non-credit-enhanced, senior unsecured long-term debt ratings of F&G or (ii) Term SOFR plus a margin of between 130.0 and 180.0 basis points depending on the non-credit-enhanced, senior unsecured long-term debt ratings of F&G. At the current Standard & Poor’s, Moody’s and Fitch non-credit-enhanced, senior unsecured long-term debt ratings of BBB-/Ba1//BBB-, respectively, the applicable margin for revolving loans subject to Term SOFR is 165 basis points. In addition, we will pay a facility fee of between 20.0 and 45.0 basis points on the entire facility, also depending on the non-credit-enhanced, senior unsecured long-term debt ratings, which is payable quarterly in arrears. As of December 31, 2022, the revolving credit facility was fully drawn with $550 million outstanding, offset by approximately $3 million of unamortized debt issuance costs. For the year ended December 31, 2022, interest expense on the revolving credit facility was approximately $1 million. On September 15, 2021, we entered into a promissory note with FNF for $400 million aggregate principal amount, quarterly interest at three-month LIBOR + 2.50% (2.63% at December 31, 2021), due 2028 (the "FNF Promissory Note"). On June 24, 2022, the following action previously approved by the F&G board of directors became effective: (i) an exchange agreement with FNF pursuant to which F&G transferred shares of its common stock to FNF in exchange for the $400 million FNF Promissory Note, after which the note was retired. There was no gain or loss recorded with respect to the exchange agreement. For the years ended December 31, 2022 and 2021, interest expense on the FNF Promissory Note was approximately $6 million and $3 million, respectively. On December 29, 2020, we entered into a revolving note agreement with FNF for up to $200 million capacity (the "FNF Credit Facility") to be used for working capital and other general corporate purposes. No amounts were outstanding under this revolving note agreement as of December 31, 2022 or December 31, 2021. On April 20, 2018, Fidelity & Guaranty Life Holdings, Inc. (“FGLH”), our indirect wholly owned subsidiary, completed a debt offering of $550 million aggregate principal amount of 5.50% senior notes due May 1, 2025 (the "5.50% F&G Notes"), at 99.5% of face value for proceeds of $547 million. As a result of the FNF acquisition, a premium of $39 million was established for these notes and is being amortized over the remaining life of the debt through 2025. In conjunction with the acquisition, FNF became a guarantor of FGLH’s obligations under the 5.50% F&G Notes and agreed to fully and unconditionally guarantee the F&G 5.50% Notes, on a joint and several basis. Interest expense, net of premium amortization on the 5.50% F&G Notes were $29 million, $29 million, $18 million and $13 million for the years ended December 31, 2022 and December 31, 2021, the period from June 1 to December 31, 2020 and the Predecessor period from January 1 to May 31, 2020, respectively. The Credit Agreement and the indenture governing the 5.50% F&G Notes impose certain operating and financial restrictions, including financial covenants, on F&G. As of December 31, 2022, we were in compliance with all covenants. Also refer to Note A - Business and Summary of Significant Accounting Policies - Recent Events for additional information about our Notes Payable. Gross principal maturities of notes payable at December 31, 2022 are as follows (in millions): 2023 $ 550 2024 — 2025 550 2026 — 2027 — Thereafter — $ 1,100 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and Regulatory Contingencies In the ordinary course of business, we are involved in various pending and threatened litigation matters related to our operations, some of which include claims for punitive or exemplary damages. Like other companies, our ordinary course litigation includes a number of class action and purported class action lawsuits, which make allegations related to aspects of our operations. We believe that no actions, other than the matters discussed below, if any, depart from customary litigation incidental to our business. We review lawsuits and other legal and regulatory matters (collectively “legal proceedings”) on an ongoing basis when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, management bases its decision on its assessment of the ultimate outcome assuming all appeals have been exhausted. For legal proceedings in which it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and that represents our best estimate has been recorded. Our accrual for legal and regulatory matters was insignificant as of December 31, 2022 and December 31, 2021. We do not consider (i) the amounts we have currently recorded for all legal proceedings in which it has been determined that a loss is both probable and reasonably estimable and (ii) reasonably possible losses for all pending legal proceedings to be material to our financial statements either individually or in the aggregate. Actual losses may materially differ from the amounts recorded and the ultimate outcome of our pending legal proceedings is generally not yet determinable. While some of these matters could be material to our operating results or cash flows for any particular period if an unfavorable outcome results, at present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. In August 2020, a lawsuit styled, In the Matter of FGL Holdings, was filed in the Grand Court of the Cayman Islands related to FNF's acquisition of F&G where dissenting shareholders, Kingfishers LP, Kingstown 1740 Fund LP, Kingstown Partners II LP, Kingstown Partners Master Ltd., and Ktown LP, asserted statutory appraisal rights relative to their ownership of 12,000,000 shares of F&G stock. They sought a judicial determination of the fair value of their shares of F&G stock as of the date of valuation under the law of the Cayman Islands, together with interest. On September 5, 2022 the Grand Court of the Cayman Islands decided in favor of F&G. Kingstown Capital Management LP failed to appeal, and its appeal period expired on October 20, 2022. The result in this case has no material adverse effect on our financial condition. From time to time we receive inquiries and requests for information from state insurance departments, attorneys general and other regulatory agencies about various matters relating to our business. Sometimes these take the form of civil investigative demands or subpoenas. We cooperate with all such inquiries and we have responded to or are currently responding to inquiries from multiple governmental agencies. From time to time, we are assessed fines for violations of regulations or other matters or enter into settlements with such authorities, which may require us to pay fines or claims or take other actions. We do not anticipate such fines and settlements, either individually or in the aggregate, will have a material adverse effect on our financial condition. Commitments We have unfunded investment commitments as of December 31, 2022 and December 31, 2021 based upon the timing of when investments are executed compared to when the actual investments are funded, as some investments require that funding occur over a period of months or years. A summary of unfunded commitments by invested asset class as of December 31, 2022 and December 31, 2021 is included below (in millions): December 31, 2022 December 31, 2021 Asset Type Unconsolidated VIEs: Limited partnerships $ 1,603 $ 1,146 Whole loans 419 589 Fixed maturity securities, ABS 201 306 Other fixed maturity securities, AFS 48 119 Commercial mortgage loans 36 44 Other assets 120 156 Residential mortgage loans 2 — Committed amounts included in liabilities 1 — Total $ 2,430 $ 2,360 See Note A Business and Summary of Significant Accounting Policies , for discussion of funding agreements that have been issued pursuant to the FABN Program as well as to the FHLB that are included in Contractholder funds. The Company leases office space under operating leases. The largest leases are cancellable in 2027 and expire in 2030. Rent expense and minimum rental commitments under all leases are immaterial. As discussed in Note J Reinsurance |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities (in millions). Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Cash paid for: Interest paid $ 34 $ 30 $ 30 $ 15 $ 15 Income taxes (refunded) paid (72) 44 2 — Deferred sales inducements 87 90 46 43 Non-cash investing and financing activities: Investments received from pension risk transfer premiums — 316 — — Change in proceeds of sales of investments available for sale receivable in period 115 (160) (3) 5 Change in purchases of investments available for sale payable in period (10) 2 7 (6) |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles A summary of the changes in the carrying amounts of our VOBA, DAC and DSI intangible assets is as follows (in millions): VOBA DAC DSI Total Balance at January 1, 2022 $ 1,185 $ 761 $ 88 $ 2,034 Deferrals — 727 87 814 Amortization (203) (107) (43) (353) Interest 25 30 2 57 Unlocking (5) (4) 5 (4) Adjustment for net unrealized investment losses (gains) 662 182 68 912 Balance at December 31, 2022 $ 1,664 $ 1,589 $ 207 $ 3,460 VOBA DAC DSI Total Balance at January 1, 2021 $ 1,466 $ 222 $ 36 $ 1,724 Purchase price allocation adjustments 61 — — 61 Deferrals — 585 90 675 Amortization (436) (46) (35) (517) Interest 30 13 1 44 Unlocking 13 1 (2) 12 Adjustment for net unrealized investment losses (gains) 51 (14) (2) 35 Balance at December 31, 2021 $ 1,185 $ 761 $ 88 $ 2,034 VOBA DAC DSI Total Balance at June 1, 2020 (a) $ 1,847 $ — $ — $ 1,847 Deferrals — 251 46 297 Amortization (120) (6) (5) (131) Interest 20 2 — 22 Unlocking 2 — — 2 Adjustment for net unrealized investment losses (gains) (283) (25) (5) (313) Balance at December 31, 2020 $ 1,466 $ 222 $ 36 $ 1,724 Predecessor VOBA DAC DSI Total Balance at January 1, 2020 $ 599 $ 641 $ 236 $ 1,476 Deferrals — 184 43 227 Amortization 14 22 10 46 Interest 7 8 2 17 Unlocking (9) (2) — (11) Adjustment for net unrealized investment losses (gains) 141 65 30 236 Balance at May 31, 2020 $ 752 $ 918 $ 321 $ 1,991 (a) As of the June 1, 2020 acquisition of F&G, due to purchase accounting adjustments, our prior intangible assets were valued at $0 and VOBA was re-established at fair value. Amortization of VO BA, DAC, and DSI is based on the current and future expected gross margins or profits recognized, including investment gains and losses. The interest accrual rates utilized to calculate the accretion of interest on VOBA ranged from 0% to 4.71% for the years ended December 31, 2022 and December 31, 2021. The adjustment for unrealized net investment losses (gains) represents the amount of VOBA, DAC, and DSI that would have been amortized if such unrealized gains and losses had been recognized. This is referred to as the “shadow adjustments” as the additional amortization is reflected in AOCI on the Consolidated Balance Sheet rather than as depreciation and amortization on the Consolidated Statements of Earnings. As of December 31, 2022 and December 31, 2021, the VOBA balances included cumulative adjustments for net unrealized investment gains (losses) of $(430) million and $232 million, respectively, the DAC balances included cumulative adjustments for net unrealized investment gains (losses) of $(143) million and $39 million, respectively, and the DSI balance included net unrealized investment gains (losses) of $(61) million and $7 million, respectively. For the in-force liabilities as of December 31, 2022, the estimated amortization expense for VOBA in future fiscal periods under existing accounting rules is as follows (in millions) (Refer to Note Q Recent Accounting Pronouncements for further discussion of accounting pronouncements not yet adopted that may have a significant impact on future estimated amortization expense upon adoption): Estimated Amortization Expense Fiscal Year 2023 $ (53) 2024 172 2025 151 2026 133 2027 129 Thereafter 702 Definite and Indefinite Lived Other Intangible Assets Other intangible assets as of December 31, 2022 consist of the following (in millions): Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Value of distribution asset (VODA) $ 140 $ (40) $ 100 15 Computer software 82 (21) 61 2 to 10 Definite lived trademarks, tradenames, and other 30 (8) 22 10 Indefinite lived tradenames and other 8 N/A 8 Indefinite Total $ 191 Other intangible assets as of December 31, 2021 consist of the following (in millions): Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Value of distribution asset (VODA) $ 140 $ (25) $ 115 15 Computer software 67 (15) 52 2 to 10 Definite lived trademarks, tradenames and other 30 (5) 25 10 Indefinite lived tradenames and other 8 N/A 8 Indefinite Total $ 200 Amortization expense for amortizable intangible assets, which consist primarily of VODA, computer software, and definite lived trademarks, tradenames and other was $25 million, $28 million, $17 million and $1 million for the years ended December 31, 2022 and December 31, 2021, the period June 1 to December 31, 2020 and the Predecessor period January 1 to May 31, 2020, respectively. Estimated amortization expense for the next five years for assets owned at December 31, 2022, is $29 million in 2023, $26 million in 2024, $24 million in 2025, $23 million in 2026 and $22 million in 2027. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GoodwillGoodwill of $1,756 million as of December 31, 2022, and December 31, 2021 relates to goodwill recorded in connection with the FNF acquisition at June 1, 2020. There have been no changes in goodwill since the FNF acquisition. Refer to Note A Business and Summary of Significant Accounting Policies regarding our accounting policy for Goodwill and discussion of impairment testing. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance F&G reinsures portions of its policy risks with other insurance companies. The use of indemnity reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance liability regardless of whether it is entitled to or able to receive payment from the reinsurer. The portion of risks exceeding F&G's retention limit is reinsured. F&G primarily seeks reinsurance coverage in order to limit its exposure to mortality losses and enhance capital management. F&G follows reinsurance accounting when there is adequate risk transfer or deposit accounting if there is inadequate risk transfer. If the underlying policy being reinsured is an investment contract, the effects of the agreement are accounted for as a separate investment contract. Refer to Note A Business and Summary of Significant Accounting Policies for more information over our accounting policy for reinsurance agreements. The effect of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the years ended December 31, 2022 and December 31, 2021, the period from June 1, 2020 to December 31, 2020 and the Predecessor period January 1, 2020 to May 31, 2020, respectively, were as follows (in millions): Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct $ 1,522 $ 3,671 $ 1,314 $ 3,282 $ 108 $ 976 $ 86 $ 402 Assumed — — — — — 1 — (1) Ceded (128) (2,546) (137) (1,144) (85) (111) (67) (103) Net $ 1,394 $ 1,125 $ 1,177 $ 2,138 $ 23 $ 866 $ 19 $ 298 Amounts payable or recoverable for reinsurance on paid and unpaid claims are not subject to periodic or maximum limits. The Company did not write off any significant reinsurance balances during the years ended December 31, 2022 and December 31, 2021, the period from June 1, 2020 to December 31, 2020 or the Predecessor period from January 1, 2020 to May, 31, 2020. The Company did not commute any ceded reinsurance treaties during the years ended December 31, 2022 and December 31, 2021, the period from June 1, 2020 to December 31, 2020 or the Predecessor period from January 1, 2020 to May 31, 2020. F&G estimates expected credit losses on reinsurance recoverables using a probability of default/loss given default model. Significant inputs to the model include the reinsurer's credit risk, expected timing of recovery, industry-wide historical default experience, senior unsecured bond recovery rates, and credit enhancement features. For the period ended May 31, 2020, the expected credit loss reserve was $22 million. As of the June 1, 2020 acquisition of F&G, due to purchase accounting adjustments, our expected credit loss reserve was valued at $0. For the seven months ended December 31, 2020, the expected credit loss reserve increased from $0 to $21 million. As of December 31, 2022 and December 31, 2021, the expected credit loss reserve was $10 million and $20 million, respectively. No policies issued by F&G have been reinsured with any foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. F&G has not entered into any reinsurance agreements in which the reinsurer may unilaterally cancel any reinsurance for reasons other than non-payment of premiums or other similar credit issues. New Reinsurance Transaction. Effective December 31, 2022, F&G entered into an indemnity reinsurance agreement with New Reinsurance Company Ltd. (“New Re”), a third-party reinsurer, to cede a quota share of certain FIA policies and related waiver of surrender charges, issued after January 1, 2022, on a coinsurance and yearly renewable term basis. The coinsurance quota share is only applicable to the base contract benefits under the FIA policies. The yearly renewable term is applicable to the waiver of surrender charges. As the FIA policies ceded do not include any GMWB or GMDB benefits, there is no significant insurance risk present and therefore the effects of this agreement are accounted for as a separate investment contract. Aspida Reinsurance Transaction. F&G executed a Funds Withheld Coinsurance Agreement with Aspida Re, a Bermuda reinsurer. In accordance with the terms of this agreement, F&G cedes to the reinsurer, on a fifty percent (50%) funds withheld coinsurance basis, certain multiyear guaranteed annuity business written effective January 1, 2021. The agreement was originally executed January 15, 2021 and amended in August 2021 and September 2022. For reinsured policies issued prior to September 1, 2022, the policies are ceded on a fifty percent (50%) quota share basis. For reinsured policies issued on or after September 1, 2022, the policies are ceded on a seventy-five percent (75%) quota share basis, capped at $350 million cession per month. As the policies ceded to Aspida are investment contracts, there is no significant insurance risk present and therefore the effects of this agreement are accounted for as a separate investment contract. Somerset Reinsurance Transaction. F&G entered into a reinsurance agreement with Kubera, a third-party reinsurer, effective December 31, 2018, to cede certain MYGA and deferred annuity GAAP and statutory reserves on a coinsurance funds withheld basis, net of applicable existing reinsurance. In accordance with the terms of this agreement, F&G cedes a quota share percentage of MYGA and deferred annuity policies for certain issue years to Kubera. Effective October 31, 2021, this agreement was novated from Kubera to Somerset, a certified third-party reinsurer. This agreement cedes GAAP and statutory reserves of approximately $1 billion. As the policies ceded to Somerset are investment contracts, there is no significant insurance risk present and therefore the effects of this agreement are accounted for as a separate investment contract. Kubera Reinsurance Transaction. F&G has a reinsurance agreement with Kubera to cede certain FIA statutory reserves on a coinsurance funds withheld basis, net of applicable existing reinsurance. In accordance with the terms of this agreement, F&G cedes a quota share percentage of FIA policies for certain issue years to Kubera. Effective October 31, 2021, this agreement was amended to increase the ceded reserves from approximately $4 billion to approximately $10 billion. The agreement was subsequently amended and restated on October 1, 2022 whereby F&G recaptured approximately $52 million in statutory reserves solely related to waiver of surrender charges. As the policies ceded to Kubera are investment contracts, there is no significant insurance risk present and therefore the reinsurance agreement is accounted for as a separate investment contract. F&G incurred risk charge fees of $12 million, $5 million, $4 million, and ($1) million during the years ended December 31, 2022 and December 31, 2021, the period from June 1, 2020 to December 31, 2020, and the Predecessor period from January 1, 2020 to May 31, 2020, respectively, in relation to this reinsurance agreement. To enhance Kubera's ability to pay its obligations under the amended reinsurance agreement, F&G entered into a Variable Note Purchase Agreement (the “NPA”), whereby F&G agreed to fund a note to Kubera to be used to ultimately settle with F&G, with principal increases up to a maximum amount of $300 million, to the extent a potential funding shortfall (treaty assets are less than the total funding requirement) is projected relative to the business ceded to Kubera from F&G as part of the amended reinsurance agreement. The potential funding shortfall will be determined quarterly and, among other items, is impacted by the market value of the assets in the funds withheld account related to the reinsurance agreement and Kubera's capital as calculated on a Bermuda regulatory basis. The NPA matures on November 30, 2071. Based on the current level of the treaty assets and projections that these policies will be profitable over the lifetime of the agreement, we do not expect significant fundings to occur under the NPA. As of December 31, 2022 and December 31, 2021, the amount funded under the NPA was insignificant. Canada Life Reinsurance Transaction. Effective May 1, 2020, F&G entered into an indemnity reinsurance agreement with Canada Life Assurance Company United States Branch, a third-party reinsurer, to reinsure FIA policies with GMWB. In accordance with the terms of this agreement, F&G cedes a quota share percentage of the net retention of guarantee payments in excess of account value for GMWB. This treaty was amended effective January 1, 2021 and January 1, 2022, and covers FIA policies with GMWB issued from January 1, 2020 to December 31, 2023. Effective October 1, 2022, the treaty was then amended and restated to cover additional FIA business policies. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP; therefore, deposit accounting is applied. F&G incurred risk charge fees of $4 million, $2 million and $1 million during the years ended December 31, 2022 and December 31, 2021 and the period from June 1, 2020 to December 31, 2020, respectively, in relation to this reinsurance agreement. Hannover Reinsurance Transaction. F&G has an indemnity reinsurance agreement with Hannover Re, a third-party reinsurer, to cede a quota share percentage of the net retention of guarantee payments in excess of account value for GMWB and GMDB guarantees associated with an in-force block of its FIA and fixed deferred annuity contracts. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP; therefore, deposit accounting is applied. F&G incurred risk charge fees of $20 million, $21 million, $12 million, and $8 million during the years ended December 31, 2022 and December 31, 2021, the period from June 1, 2020 to December 31, 2020, and the Predecessor period from January 1, 2020 to May 31, 2020, respectively, in relation to this reinsurance agreement. Wilton Reinsurance Transaction . Pursuant to the agreed upon terms, Wilton Reassurance Company (“Wilton Re”) purchased through a 100% quota share reinsurance agreement certain FGL Insurance life insurance policies that are subject to redundant reserves, reported on a statutory basis, under Regulation XXX and Guideline AXXX, as well as another block of FGL Insurance’s in-force traditional, universal life and IUL insurance policies. The effects of this agreement are accounted for as reinsurance as the ceded policies qualify as insurance products and because the agreement satisfies the risk transfer requirements for GAAP. Concentration of Reinsurance Risk The Company has a significant concentration of reinsurance risk with third party reinsurers, Aspida Re, Wilton Re, and Somerset that could have a material impact on our financial position in the event that any of these reinsurers fails to perform its obligations under the various reinsurance treaties. Aspida Re has an A- issuer credit rating from AM Best as of December 31, 2022, and the risk of non-performance is further mitigated through the funds withheld arrangement. Wilton Re has an A+ issuer credit rating from AM Best and an A issuer credit rating from Fitch as of December 31, 2022. Somerset has an A- issuer credit rating from AM Best and a BBB+ issuer credit rating from S&P as of December 31, 2022, and the risk of non-performance is further mitigated through the funds withheld arrangement. On December 31, 2022, the net amounts recoverable from Aspida Re, Wilton Re, and Somerset were $3,121 million, $1,231 million, and $570 million, respectively. We monitor both the financial condition of individual reinsurers and risk concentration arising from similar activities and economic characteristics of reinsurers to attempt to reduce the risk of default by such reinsurers. We believe that all amounts due from Aspida Re, Wilton Re, and Somerset for periodic treaty settlements are collectible as of December 31, 2022. Intercompany Reinsurance Agreements Effective December 31, 2022, Fidelity & Guaranty Life Insurance Company (“FGL Insurance”) entered into a Coinsurance Agreement with F&G Life Re, an affiliated Bermuda reinsurer to issue a quota share of PRT group annuity contracts. Some of the contracts reinsured are held by FGL Insurance’s general account and others are held by a FGL Insurance separate account (which does not meet the GAAP definition of a separate account). The cession from FGL Insurance to the Reinsurer is on a 80% quota share basis. Reinsurance of the separate account contracts are maintained on a modified coinsurance basis and reinsurance of the general account contracts are maintained on a funds withheld basis. On the funds withheld portion of the transaction, FGL Insurance ceded approximately $380 million, in certain PRT Statutory Reserves and Interest Maintenance Reserve. FGL Insurance also established a modified coinsurance reserve of approximately $1.7 billion associated with the PRT Separate Account Insurance Liabilities. F&G has a reinsurance treaty with Raven Reinsurance Company ("Raven Re"), its wholly owned captive reinsurance company, to cede the Commissioners Annuity Reserve Valuation Method ("CARVM") liability for annuity benefits where surrender charges are waived related to certain FIA, DA and MYGA policies. Effective October 1, 2022, the treaty was amended and restated to cover additional FIA, DA and MYGA policy issue years. In connection with the CARVM reinsurance agreement, (“FGL Insurance”) and Raven Re entered into an agreement with Nomura Bank International plc (“NBI”) to establish a reserve financing facility in the form of a letter of credit issued by NBI. The reimbursement agreement associated with the facility was amended and restated on September 30, 2022. As a result, the financing facility now has $200 million available to draw on as of December 31, 2022. The amended facility may terminate earlier than the current termination date of October 1, 2027, in accordance with the terms of the reimbursement agreement. Under the terms of the reimbursement agreement, in the event the letter of credit is drawn upon, Raven Re is required to repay the amounts utilized, and FGLH is obligated to repay the amounts utilized if Raven Re fails to make the required reimbursement. FGLH also is required to make capital contributions to Raven Re in the event that Raven Re’s statutory capital and surplus falls below certain defined levels. As of December 31, 2022 and December 31, 2021, Raven Re’s statutory capital and surplus was $11 million and $62 million, respectively, in excess of the minimum level required under the reimbursement agreement. As this letter of credit is provided by an unaffiliated financial institution, Raven Re is permitted to carry the letter of credit as an admitted asset on the Raven Re statutory balance sheet. Effective December 31, 2020, FGL Insurance executed a Coinsurance Agreement with F&G Life Re Ltd. (“F&G Life Re” or "Reinsurer"), an affiliated Bermuda reinsurer, to reinsure a quota share of FIA policies to the Reinsurer. Concurrently, the Reinsurer and F&G Cayman Re Ltd. (“F&G Cayman Re”), an affiliated reinsurer of both FGL Insurance and the Reinsurer, entered into a Retrocession Agreement. The cession from FGL Insurance to the Reinsurer is on a 100% quota share basis, net of applicable existing reinsurance and the retrocession to F&G Cayman Re from the Reinsurer is on a 45% quota share basis. Additionally, both treaties are maintained on a funds withheld basis. FGL Insurance ceded and the Reinsurer retroceded approximately $5.0 billion and $2.2 billion, respectively, in certain FIA Statutory Reserves and Interest Maintenance Reserve. Since these agreements are intercompany, the financial impacts are eliminated in the preparation of the Consolidated Financial Statements included within this Annual Report. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has determined that related parties would fall into the following categories; (i) affiliates of the entity, (ii) entities for which investments in their equity securities would be required to be accounted for by the equity method by the investing entity, (iii) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management, (iv) principal owners (>10% equity stake) of the entity and members of their immediate families, (v) management (including FNF’s BOD, CEO, and other persons responsible for achieving the objectives of the entity and who have the authority to establish policies and make decisions) of the entity and other members of their immediate families, (vi) other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests (vii) other parties that can significantly influence management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate business, (viii) attorney in fact of a reciprocal reporting entity or any affiliate of the attorney in fact, and (ix) a U.S. manager of a U.S. branch or any affiliate of the U.S. manager of a U.S. branch. Prior to the FNF acquisition, the Company determined that for the period January 1 to May 31, 2020, the Blackstone Group LP ("Blackstone") and its affiliates, further discussed below, as well as the Company's directors and officers (along with their immediate family members) were related parties of the Company due to ownership in F&G. Blackstone was a related party based on its equity stake in the Company. Upon the closing of the FNF acquisition, the Company re-evaluated related parties. Blackstone and its affiliates are no longer related parties due to no longer holding ownership in F&G. It was determined that FNF as well as FNF's directors and officers (along with their immediate family members) would be related parties subsequent to June 1, 2020. FNF Separation Agreement F&G has entered into the Separation Agreement with FNF to provide for, among other things, the principal corporate transactions required to effect the separation and distribution, certain conditions to the separation and distribution and provisions governing our relationship with FNF with respect to and resulting from the separation and distribution. Refer to “ Risk Factors - Risks Related to the Separation and Distribution and our Status as a subsidiary of FNF” in this Annual Report for additional information on the separation. Notes Payable For a description of our financing arrangements with FNF see Note E Notes Payable to the Consolidated Financial Statements included in this Annual Report. Governance Because FNF will initially own approximately 85% of the shares of outstanding F&G common stock we are a controlled company within the meaning of the corporate governance standards of the NYSE. A controlled company does not need its board of directors to have a majority of independent directors or to form an independent compensation committee or nominating and corporate governance committee. Refer to “ Risk Factors - Risks Related to the Separation and Distribution and our Status as a subsidiary of FNF” in this Annual Report for additional information on management and governance. Tax Sharing Agreement Refer to Note N Income Taxes for a discussion of the tax matters agreement between FNF and the Company. Stock Split, Increase to Authorized shares and Exchange Agreement with FNF On June 24, 2022, the following actions previously approved by the F&G board of directors became effective: (i) a stock split in a ratio of 105,000 for 1. FNF, as the sole shareholder, received, in the form of a dividend, 104,999 additional shares of common stock for each share of common stock held. Earnings per share has been retrospectively adjusted to reflect as if the split occurred as of June 1, 2020 in accordance with GAAP; (ii) an increase in the number of authorized shares of common stock from one thousand (1,000) to five hundred million (500,000,000); (iii) an exchange agreement with FNF pursuant to which F&G transferred shares of its common stock to FNF in exchange for the $400 million FNF Promissory Note, after which the note was retired. There was no gain or loss recorded with respect to the exchange agreement. For the years ended December 31, 2022 and 2021, interest expense on the FNF Promissory Note was approximately $6 million and $3 million, respectively. Corporate Services Agreement FNF has entered into a C orporate S ervices A greement with F&G, which we refer to as the C orporate S ervices A greement. Pursuant to such agreement, FNF will provide F&G with certain corporate services, including internal audit services, litigation and dispute management services, compliance services , corporate and transactional support services, SEC & reporting services, insurance and risk management services, human resources support services and real estate services. The C orporate S ervices A greement terminates after the date upon which all corporate services or transition assistance have been terminated or upon the mutual agreement of the parties. F&G may terminate corporate services by providing 90 days written notice to FNF. Reverse Corporate Services Agreement F&G has entered into a R everse C orporate S ervices A greement with FNF. Pursuant to such agreement, F&G will provide FNF with certain services, including employee services. The R everse C orporate S ervices A greement terminates after the date upon which all corporate services or transition assistance has been terminated or upon the mutual agreement of the parties. FNF may terminate corporate services by providing 90 days written notice to F&G. Shared Services For the years ended December 31, 2022 and 2021, and for the period June 1, 2020 to December 31, 2020, FNF provided certain operational support services for F&G including tax, insurance, legal , risk management, information technology, employee benefits and accounting. Expenses incurred by F&G for all services were approximately $4 million for the year ended December 31, 2022 and were insignificant for the year ended December 31, 2021 and for the period June 1, 2020 to December 31, 2020. Blackstone ISG-I Advisors LLC ("BIS") FGL Insurance and certain subsidiaries of the Company, entered into investment management agreements ("IMAs") with "BIS", a wholly owned subsidiary of The Blackstone Group LP on December 1, 2017. On December 31, 2019, to be effective as of October 31, 2019, FGL Insurance and certain subsidiaries of the Company entered into amended and restated IMAs (the “Restated IMAs”) with BIS, pursuant to which BIS was appointed as investment manager of the Company’s general accounts (the “F&G Accounts”). Pursuant to the terms of the Restated IMAs, BIS may delegate any or all of its discretionary investment, advisory and other rights, powers, functions and obligations under the Restated IMAs to one or more sub-managers, including its affiliates. BIS delegated certain investment services to its affiliates, Blackstone Real Estate Special Situations Advisors L.L.C. (“BRESSA”) and GSO Capital Advisors II LLC (“GSO Capital Advisors”), pursuant to sub-management agreements executed between BIS and each of BRESSA and GSO Capital Advisors. The Restated IMAs were further amended and restated on June 1, 2020. BIS appointed MVB Management, an entity owned by affiliates of FNF’s Chairman, as Sub-Adviser of the FGL Account pursuant to a sub-advisory agreement (the “Sub-Advisory Agreement”). Under the Sub-Advisory Agreement, MVB Management will provide portfolio review, and consulting services, including such recommendations as the Investment Manager shall reasonably request. Payment or reimbursement of the sub-advisory fee to MVB Management is solely the obligation of BIS and is not an obligation of FGL Insurance or F&G. Subject to certain conditions, the Sub-Advisory Agreement cannot be terminated by BIS unless FGL Insurance terminates the FGL Insurance IMA. The Company purchased $103 million of residential loans from Finance of America Holdings LLC, a Blackstone affiliate, during the period January 1 to May 31, 2020. In addition, the Company purchased $67 million commercial mortgage loans from Blackstone Real Estate Debt Strategies, a Blackstone affiliate, during the period January 1 to May 31, 2020. The Company earned $(12) million of interest and investment income for the period January 1 to May 31, 2020 on affiliated investments. Freedom Equity Group (“FEG”) In October 2021, we purchased a 30% minority ownership stake in FEG. FEG is a nearly 4,000 agent strong Network Marketing Group that focuses on cultural markets including Mexican-American, Hmong, Laotian, Filipino, Burmese, Congolese-American, Samoan, African-American, Thai and Vietnamese. For the year ended December 31, 2022, we paid approximately $74 million in commissions to FEG, with the expense included in other operating expenses on the accompanying Consolidated Statement of Earnings. Refer to Note S Subsequent Events , for discussion of a recent investment we made in Syncis. |
Insurance Subsidiary Financial
Insurance Subsidiary Financial Information and Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Insurance Subsidiary Financial Information and Regulatory Matters | Insurance Subsidiary Financial Information and Regulatory MattersOur U.S. insurance subsidiaries, FGL Insurance, Fidelity & Guaranty Life Insurance Company of New York (“FGL NY Insurance”), and Raven Re, file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners (“NAIC”) that are prepared in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by such authorities, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the NAIC as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect VOBA, DAC, and DSI, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contractholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Accordingly, SAP operating results and SAP capital and surplus may differ substantially from amounts reported in the GAAP basis financial statements for comparable items. F&G Cayman Re and F&G Life Re (Bermuda) file financial statements with their respective regulators that are based on U.S. GAAP. U.S. Companies Our principal insurance subsidiaries' statutory (SAP and GAAP) financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of our wholly owned U.S. regulated insurance subsidiaries were as follows (in millions): Subsidiary (state of domicile) (a) FGL Insurance (IA) FGL NY Insurance (NY) Raven Re (VT) Statutory Net income (loss): Year ended December 31, 2022 $ (243) $ (15) $ (111) Year ended December 31, 2021 $ 351 $ 4 $ 3 Statutory Capital and Surplus: December 31, 2022 $ 1,877 $ 82 $ 121 December 31, 2021 $ 1,473 $ 99 $ 115 (a) FGL NY Insurance and Raven Re are subsidiaries of FGL Insurance, and the columns should not be added together. Regulation - U.S. Companies FGL Insurance, FGL NY Insurance and Raven Re's respective statutory capital and surplus satisfies the applicable minimum regulatory requirements. In order to enhance the regulation of insurers’ solvency, the NAIC adopted a model law to implement RBC requirements for life, health and property and casualty insurance companies. All states have adopted the NAIC’s model law or a substantially similar law. RBC is used to evaluate the adequacy of capital and surplus maintained by an insurance company in relation to risks associated with: (i) asset risk, (ii) insurance risk, (iii) interest rate risk, and (iv) business risk. As of the most recent annual statutory financial statements filed with insurance regulators, the RBC ratios for FGL Insurance and FGL NY Insurance each exceeded the minimum RBC requirements. The insurance laws of Iowa and New York regulate the amount of dividends that may be paid in any year by FGL Insurance and FGL NY Insurance, respectively. Pursuant to Iowa insurance law, ordinary dividends are payments, together with all other such payments within the preceding twelve months, that do not exceed the greater of (i) 10% of FGL Insurance’s statutory surplus as regards policyholders as of December 31 of the preceding year; or (ii) the net gain from operations of FGL Insurance (excluding realized capital gains) for the 12-month period ending December 31 of the preceding year. Dividends in excess of FGL Insurance’s ordinary dividend capacity are referred to as extraordinary and require prior approval of the Iowa Insurance Commissioner. FGL Insurance may only pay dividends out of statutory earned surplus. FGL Insurance paid extraordinary dividends to FGAL of $0 million, $38 million, and $151 million, in the 12-month periods ending December 31, 2022, 2021, and 2020, respectively. Each year, FGL NY Insurance may pay a certain limited amount of ordinary dividends or other distributions without being required to obtain the prior consent of or the New York State Department of Financial Services (“NYDFS”). However, to pay any dividends or distributions (including the payment of any dividends or distributions for which prior consent is not required), FGL NY Insurance must provide advance written notice to the NYDFS. FGL NY Insurance has historically not paid dividends. FGL Insurance applies Iowa-prescribed accounting practices that permit Iowa-domiciled insurers to report equity call options used to economically hedge FIA index credits at amortized cost for statutory accounting purposes and to calculate FIA statutory reserves such that index credit returns will be included in the reserve only after crediting to the annuity contract. Effective October 1, 2022, the Company incorporated IUL products under these Iowa-prescribed accounting practices. This resulted in a $152 million and $106 million decrease to statutory capital and surplus at December 31, 2022 and December 31, 2021, respectively. FGL Insurance’s statutory carrying value of Raven Re reflects the effect of permitted practices Raven Re received to treat the available amount of a letter of credit as an admitted asset, which increased Raven Re’s statutory capital and surplus by $200 million and $85 million at December 31, 2022 and December 31, 2021, respectively. Raven Re is also permitted to follow Iowa prescribed statutory accounting practice for its reserves on reinsurance assumed from FGL Insurance which increased Raven Re’s statutory capital and surplus by $28 million at December 31, 2022 and by $0 million at December 31, 2021. Without such permitted statutory accounting practices, Raven Re’s statutory capital and surplus (deficit) would be $(107) million as of December 31, 2022 and would be $30 million as of December 31, 2021, and its risk-based capital would not fall below the minimum regulatory requirements. The letter of credit facility is collateralized by NAIC 1 rated debt securities. If the permitted practice was revoked, the letter of credit could be replaced by the collateral assets with Nomura’s consent as discussed in Note J Reinsurance . FGL Insurance’s statutory carrying value of Raven Re was $121 million and $115 million at December 31, 2022 and December 31, 2021, respectively. As of December 31, 2022, FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. Non-U.S. Companies Net income and capital and surplus of our wholly owned Bermuda and Cayman regulated insurance subsidiaries under U.S. GAAP were as follows (in millions): Subsidiary (country of domicile) F&G Cayman Re (Cayman) F&G Life Re (Bermuda) Statutory Net income (loss): Year ended December 31, 2022 $ 299 $ 339 Year ended December 31, 2021 $ 99 $ 94 Statutory Capital and Surplus: December 31, 2022 $ 126 $ 138 December 31, 2021 $ 164 $ 206 Regulation - Bermuda F&G Life Re is a Bermuda exempted company incorporated under the Companies Act 1981, as amended (the “Companies Act”) and registered as a Class E insurer under the Insurance Act 1978, as amended, and its related regulations (the “Insurance Act”). F&G Life Re is regulated by the Bermuda Monetary Authority (“BMA”). Bermuda has been awarded full equivalence for commercial insurers under Europe’s Solvency II regime applicable to insurance companies, which regime came into effect on January 1, 2016. The BMA utilizes a risk-based approach when it comes to licensing and supervising insurance and reinsurance companies. As part of the BMA’s risk-based system, an assessment of the inherent risks within each particular class of insurer or reinsurer is used to determine the limitations and specific requirements that may be imposed. Thereafter the BMA keeps its analysis of relative risk within individual institutions under review on an ongoing basis, including through the scrutiny of audited financial statements, and, as appropriate, meeting with senior management during onsite visits. The Insurance Act imposes on Bermuda insurance companies solvency and liquidity standards, as well as auditing and reporting requirements. Certain significant aspects of the Bermuda insurance regulatory framework are set forth below. Minimum Solvency Margin. The Insurance Act provides that the value of the assets of an insurer must exceed the value of its liabilities by an amount greater than its prescribed minimum solvency margin. The minimum solvency margin that must be maintained by a Class E insurer is the greater of: (i) $8,000,000; (ii) 2% of first $500,000,000 of assets plus 1.5% of assets above $500,000,000; and (iii) 25% of that insurer’s enhanced capital requirement (“ECR”). An insurer may file an application under the Insurance Act to waive the aforementioned requirements. ECR and Bermuda Solvency Capital Requirements (“BSCR”). Class E insurers are required to maintain available capital and surplus at a level equal to or in excess of the applicable ECR, which is established by reference to either the applicable BSCR model or an approved internal capital model. Furthermore, to enable the BMA to better assess the quality of the insurer’s capital resources, a Class E insurer is required to disclose the makeup of its capital in accordance with its 3-tiered capital system. An insurer may file an application under the Insurance Act to have the aforementioned ECR requirements waived. Restrictions on Dividends and Distributions. In addition to the requirements under the Companies Act (as discussed below), the Insurance Act limits the maximum amount of annual dividends and distributions that may be paid or distributed by F&G Life Re without prior regulatory approval. F&G Life Re is prohibited from declaring or paying a dividend if it fails to meet its minimum solvency margin, or ECR, or if the declaration or payment of such dividend would cause such breach. If F&G Life Re were to fail to meet its minimum solvency margin on the last day of any financial year, it would be prohibited from declaring or paying any dividends during the next financial year without the approval of the BMA. In addition, as a Class E insurer, F&G Life Re must not declare or pay a dividend to any person other than a policyholder unless the value of the assets of such insurer, as certified by the insurer’s approved actuary, exceeds its liabilities (as so certified) by the greater of its margin of solvency or ECR. In the event a dividend complies with the above, F&G Life Re must ensure the amount of any such dividend does not exceed that excess. Furthermore, as a Class E insurer, F&G Life Re must not declare or pay a dividend in any financial year which would exceed 25% of its total capital and statutory surplus, as set out in its previous year’s financial statements, unless at least seven days before payment of such dividend F&G Life Re files with the BMA an affidavit signed by at least two directors of F&G Life Re and its principal representative under the Insurance Act stating that, in the opinion of those signing, declaration of such dividend has not caused the insurer to fail to meet its relevant margins. The Companies Act also limits F&G Life Re’s ability to pay dividends and make distributions to its shareholders. F&G Life Re is not permitted to declare or pay a dividend, or make a distribution out of its contributed surplus, if it is, or would after the payment be, unable to pay its liabilities as they become due or if the realizable value of its assets would be less than its liabilities. Reduction of Capital. F&G Life Re may not reduce its total statutory capital by 15% or more, as set out in its previous year’s financial statements, unless it has received the prior approval of the BMA. Total statutory capital consists of the insurer’s paid in share capital, its contributed surplus (sometimes called additional paid in capital) and any other fixed capital designated by the BMA as statutory capital. Regulation - Cayman F&G Cayman Re is licensed as a class D insurer in the Cayman Islands by the Cayman Islands Monetary Authority (“CIMA”). As a regulated insurance company, F&G Cayman Re is subject to the supervision of CIMA and CIMA may at any time direct F&G Cayman Re, in relation to a policy, a line of business or the entire business, to cease or refrain from committing an act or pursing a course of conduct and to perform such acts as in the opinion of CIMA are necessary to remedy or ameliorate the situation. The laws and regulations of the Cayman Islands require that, among other things, F&G Cayman Re maintain minimum levels of statutory capital, surplus and liquidity, meet solvency standards, submit to periodic examinations of its financial condition and restrict payments of dividends and reductions of capital. Statutes, regulations and policies that F&G Cayman Re is subject to may also restrict the ability of F&G Cayman Re to write insurance and reinsurance policies, make certain investments and distribute funds. Any failure to meet the applicable requirements or minimum statutory capital requirements could subject it to further examination or corrective action by CIMA, including restrictions on dividend payments, limitations on our writing of additional business or engaging in finance activities, supervision or liquidation. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued liabilities Accounts payable and other accrued liabilities consist of the following: December 31, 2022 2021 (In millions) Salaries and incentives $ 72 $ 60 Accrued benefits 58 74 Deferred revenue 203 35 Trade accounts payable 114 72 Accrued premium taxes 5 3 Liability for policy and contract claims 109 109 Retained asset account 117 148 Remittances and items not allocated 225 39 Option collateral liabilities 178 576 Funds withheld embedded derivative — 73 Other accrued liabilities 193 108 $ 1,273 $ 1,297 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) on continuing operations consists of the following (in millions): Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Current $ (31) $ 27 $ 18 $ (1) Deferred 148 193 (93) (13) $ 117 $ 220 $ (75) $ (14) Total income tax expense (benefit) was allocated as follows: Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Taxes on net earnings (loss) from continuing operations $ 117 $ 220 $ (75) $ (14) Tax expense on net earnings (loss) from discontinued operations — — — — Other comprehensive (loss) earnings: Unrealized (loss) gain on investments and other financial instruments (935) (123) 315 (185) Unrealized gain on foreign currency translation and cash flow hedging (1) (1) 2 — Total income tax (benefit) expense allocated to other comprehensive earnings (936) (124) 317 (185) Total income taxes $ (819) $ 96 $ 242 $ (199) A reconciliation of the federal statutory rate to our effective tax rate is as follows: Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 0.1 0.4 1.8 (0.4) Benefit for Capital Loss Carryback (4.0) — — Stock compensation — (0.1) 0.1 — Tax credits (1.4) (0.4) (3.2) 0.1 Dividends received deduction (0.6) (0.3) (2.5) 0.4 Benefit on outside of United States income taxed at 0% — — — (1.8) Withholding tax on 0% taxed jurisdiction — — (2.5) (0.3) Valuation allowance for deferred tax assets 4.5 (1.3) (63.5) (12.1) Change in tax status benefit — — (41.0) — Adjustment of DTAs on sale of subsidiary — 1.4 — — Non-deductible expenses and other, net — (0.2) 1.5 (0.4) Effective tax rate 19.6 % 20.5 % (88.3) % 6.5 % For the year ended December 31, 2022, the Company’s effective tax rate was 19.6%. The effective tax rate was positively impacted by favorable permanent adjustments, including low income housing tax credits (“LIHTC”), the dividends received deduction (“DRD”), and company owned life insurance (“ICOLI”). The effective tax rate was also impacted by the benefit of the capital loss carryback. This benefit is offset by the valuation allowance expense recorded on unrealized losses and capital loss carryforwards. For the year ended December 31, 2021, the Company’s effective tax rate was 20.5%. The effective tax rate was positively impacted by favorable permanent adjustments, including LIHTC, DRD, and ICOLI. For the period from June 1, 2020 to December 31, 2020, the Company’s effective tax rate was (88.3)%. The effective tax rate was positively impacted by the valuation allowance release on the current period activity in FSRC included in continuing operations and the valuation allowance release on the US non-life companies’ deferred tax assets. The effective tax rate was also positively impacted by the change in tax status benefit recorded at December 31, 2020, reversal of withholding taxes, and favorable permanent adjustments, including LIHTC and the DRD. For the Predecessor period from January 1, 2020 to May 31, 2020, the Company’s effective tax rate was 6.5%. The effective tax rate was impacted by the valuation allowance recorded on the ordinary deferred tax assets in FSRC included in continuing operations. The effective tax rate was also impacted by the impact of low taxed international losses and withholding taxes. The significant components of deferred tax assets and liabilities consist of the following: December 31, 2022 2021 (In millions) Deferred Tax Assets: Employee benefit accruals $ 21 $ 22 Net operating loss carryforwards 28 16 Accrued liabilities 1 — Tax credits 30 32 Investment securities 853 — Capital loss carryover 8 41 Derivatives 67 — Life insurance and claim related adjustments 669 854 Funds held under reinsurance agreements 37 52 Other 19 12 Total gross deferred tax asset 1,733 1,029 Less: valuation allowance 30 — Total deferred tax asset $ 1,703 $ 1,029 Deferred Tax Liabilities: Amortization of goodwill and intangible assets (29) (33) Other (2) (1) Investment securities — (355) Depreciation (14) (11) Partnerships (93) (126) Value of business acquired (350) (249) Derivatives — (68) Deferred acquisition costs (243) (102) Transition reserve on new reserve method (25) (34) Funds held under reinsurance agreements (183) (74) Total deferred tax liability $ (939) $ (1,053) Net deferred tax asset (liability) $ 764 $ (24) Our net deferred tax asset (liability) was $764 million as of December 31, 2022 and a net deferred tax asset (liability) of $(24) million as of December 31, 2021. The significant changes in the deferred taxes are as follows: the deferred tax for investment securities changed by $1,208 million primarily due to unrealized losses recorded on investment securities. The deferred tax liability relating to partnerships decreased by $33 million primarily due to provision to return true-ups that increased the overall tax basis of the partnership investments. The U.S. life insurance business’ deferred tax liability relating to VOBA increased by $101 million due to unrealized losses on the VOBA assets. The deferred tax liability related to deferred acquisition costs increased by $141 million, which is consistent with the growth in sales in our U.S. life group. The deferred tax liability relating to derivatives decreased by $135 million due to unrealized losses on call options. The life insurance reserves and claim related adjustments deferred tax asset decreased by $185 million primarily due to the tax reserves for the year increasing by more than the GAAP reserves. The reinsurance receivable deferred tax asset decreased by $15 million and the reinsurance receivable deferred tax liability increased by $109 million, both due to unrealized gains in the funds withheld portfolios. As of December 31, 2022, we have net operating losses ("NOLs") on a pretax basis of $133 million, which are available to carryforward and offset future federal taxable income subject to the 80% taxable income limitation. The life losses are U.S. federal net operating losses and consist of $133 million of Internal Revenue Code Section 382 limited net operating losses. These losses do not expire. As of December 31, 2022 and 2021, we had $30 million and $32 million of tax credits, respectively, which expire between 2038 and 2042. The tax credits consist of $11 million of Internal Revenue Code Section 382 limited losses and $19 million of tax credits with no limitation. As of December 31, 2022, the valuation allowance of $30 million consisted of a full valuation allowance of $4 million on the unrealized capital loss deferred tax assets for F&G Life Re, F&G Cayman Re, and the US Non-life Companies, a full valuation allowance of $4 million on the remaining capital loss carryforwards for the US Non-life Companies, and a partial valuation allowance of $22 million on the US Life Companies’ unrealized capital loss deferred tax assets. The U.S. Life insurance group is subject to a Tax Sharing Agreement within the members of the life insurance tax return group. The agreement provides for an allocation based on separate return calculations and allows for reimbursement of company tax benefits absorbed by other members of the group. The U.S. non-life group is subject to a Tax Sharing Agreement with its parent, Fidelity National Financial, Inc (“FNF”), with which it files a consolidated federal income tax return. The Company’s non-life group Tax Sharing Agreement allows for reimbursement of company tax benefits absorbed by FNF. If, during the year ended December 31, 2022, the Company had computed taxes using the separate return method, the pro-forma provision for income taxes would remain unchanged. The U.S. Federal income tax returns of the Company for years prior to 2018 are no longer subject to examination by the taxing authorities. The Company does not have any unrecognized tax benefits (“UTBs”) at December 31, 2022, but did have a UTB of $58 million at December 31, 2021. The Company had a UTB related to a capital loss carryback claim that did not meet the threshold to recognize the benefit. In the current year the benefit was recognized as the carryback claim was effectively settled and the UTB was removed. In the event the Company has UTBs, interest and penalties related to uncertain tax positions would be recorded as part of income tax expense in the financial statements. The Company regularly assesses the likelihood of additional tax assessments by jurisdiction and, if necessary, adjusts its tax reserves based on new information or developments. The Inflation Reduction Act of 2022 (the “IRA”) was signed into law on August 16, 2022. Among other changes, the IRA introduced a 15% corporate alternative minimum tax (“CAMT”) on adjusted financial statement income and a 1% excise tax on treasury stock repurchases. The effective date of these provisions will be January 1, 2023. Though the Company will likely be subject to the minimum tax, the Company does not expect to be in a perpetual CAMT position. The life companies will join the consolidated tax return group with FNF and file a life/non-life consolidated return once the five-year waiting period has completed in 2026, which should strengthen that position as FNF is not anticipating owing CAMT on its future returns. As a result, the Company has assessed that there is no material impact on the 2022 financial statements. On March 27, 2020 H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act, (“the CARES Act”), was signed into legislation which includes tax provisions relevant to businesses that during 2020 will impact taxes related to 2018 and 2019. Some of the significant changes are reducing the interest expense disallowance for 2019 and 2020, allowing the five-year carryback of net operating losses for 2018-2020, suspension of the 80% limitation of taxable income for net operating loss carryforwards for 2018-2020, and the acceleration of depreciation expense from 2018 and forward on qualified improvement property. The Company is required to recognize the effect in the period the law was enacted and recorded total tax benefits of $7 million for the Predecessor period from January 1, 2020 to May 31, 2020 for the U.S. life group. $1 million of the related tax benefit was for the NOL carryback from 2018 to 2017, of which, a small amount was for the tax rate differential. The remaining tax benefit of $6 million was on the use of 100% of NOLs versus the 80% limitation under the Tax Cuts and Jobs Act (or “TCJA”). The NOL carryback and the temporary lifting of the 80% of taxable income limitation on the use of NOLs are timing in nature with an offsetting reduction in deferred taxes. The tax rate differential is a permanent tax benefit. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans FNF Stock Purchase Plan During the years ended December 31, 2022 and December 31, 2021, and for the period from June 1, 2020 to December 31, 2020, our eligible employees could voluntarily participate in FNF's employee stock purchase plan (“ESPP”) sponsored by FNF. Pursuant to the ESPP, employees may contribute an amount between 3% and 15% of their base salary and certain commissions. Company matching contributions are funded one year after employee contributions are made pursuant to the ESPP. We provided FNF an insignificant amount with respect to our matching contributions to the ESPP in the years ended December 31, 2022 and December 31, 2021, and for the period from June 1, 2020 to December 31, 2020. F&G Stock Purchase Plan On January 1, 2023, the Company adopted an Employee Stock Purchase Plan (“F&G ESPP”), enabling employees to purchase the Company stock in an amount between 3% and 15% of their base salary and certain commissions. Based on employee contributions the company will match between 30% and 50% one year after initial employee contributions are made pursuant to the F&G ESPP. The first year F&G will have match amounts is 2024. 401(k) Profit Sharing Plan During the years ended December 31, 2022 and December 31, 2021 , for the period from June 1, 2020 to December 31, 2020, and for the Predecessor period from January 1, 2020 to May 31, 2020, we have offered our employees the opportunity to participate in our 401(k) profit sharing plan (the “401(k) Plan”), a qualified voluntary contributory savings plan that is available to substantially all of our employees. Eligible employees may contribute up to 75% of their pre-tax annual compensation, up to the amount allowed pursuant to the Internal Revenue Code. We make an employer match on the 401(k) Plan of $1.00 on each $1.00 contributed up to the first 5% of eligible earnings contributed to the 401(k) Plan by employees. The employer match was $5 million, $3 million, $1 million and $2 million for the years ended December 31, 2022 and December 31, 2021, for the period from June 1, 2020 to December 31, 2020 and for the Predecessor period from January 1, 2020 to May 31, 2020, respectively, and was credited based on the participant's individual investment elections in the 401(k) Plan. 2022 F&G Omnibus Incentive Plan On December 1, 2022, we established the F&G Annuities & Life, Inc. 2022 Omnibus Incentive Plan (the “2022 F&G Omnibus Plan”), authorizing the issuance of up to 6 million shares of common stock, subject to the terms of the 2022 F&G Omnibus Plan. The 2022 F&G Omnibus Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units and performance shares, performance units, other cash and stock-based awards and dividend equivalents. As of December 31, 2022, there were 1,409,904 shares of restricted stock outstanding under the 2022 F&G Omnibus Plan. Awards granted are approved by the Compensation Committee of the Board of Directors. Awards vest over a 3-year period and have a performance restriction that must be met for shares awarded to vest. If the performance restriction is not satisfied during the measurement period all of the shares that do not satisfy the performance criteria will be forfeited to the Company for no consideration. F&G restricted stock transactions under the 2022 F&G Omnibus Plan in 2022 are as follows: Shares Weighted Average Grant Date Fair Value Balance, January 1, 2022 — $ — Granted 1,411,369 21.80 Canceled (1,465) 21.80 Vested — — Balance, December 31, 2022 1,409,904 $ 21.80 We account for stock-based compensation plans in accordance with GAAP on share-based payments, which requires that compensation cost relating to share-based payments be recognized in the consolidated financial statements based on the fair value of each award. Using the fair value method of accounting, compensation cost is measured based on the fair value of the award at the grant date and recognized over the service period. Fair value of restricted stock awards and units is based on the grant date value of the underlying stock derived from quoted market prices. The total fair value of restricted stock awards granted in the year ended December 31, 2022 was $31 million. There were no restricted stock awards which vested in the year ended December 31, 2022. Net earnings attributable to F&G Shareholders reflects stock-based compensation expense amounts of $1 million for the year ended December 31, 2022 , which are included in personnel costs in the reported financial results for the period. For the period ended December 31, 2022, the total unrecognized compensation costs related to non-vested restricted stock grants pursuant to the 2022 F&G Omnibus Plan are $30 million, which is expected to be recognized in pre-tax income over a weighted average period of 1.9 years. FGL Incentive Plan and 2020 F&G Omnibus Incentive Plan On August 8, 2017, the Company adopted a stock-based incentive plan (the “FGL Incentive Plan”) that permitted the granting of awards in the form of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, unrestricted stock, performance-based awards, dividend equivalents, cash awards and any combination of the foregoing. On June 1, 2020, in connection with the acquisition of F&G, FNF assumed the shares that remained available for future awards under the FGL Holdings 2017 Omnibus Incentive Plan, as amended and restated (the “ 2020 F&G Omnibus Plan”) and cancelled and converted such shares into 2,096,429 shares of FNF common stock that may be issued pursuant to future awards granted under the 2020 F&G Omnibus Plan and 2,411,585 sh ares of FNF common stock that may be issued pursuant to outstanding stock options under the 2020 F&G Omnibus Plan. Each unvested stock option assumed under the 2020 F&G Omnibus Plan was converted into an FNF stock option and vests solely on the passage of time without any ongoing performance-vesting conditions. The options vest over a 3 year period, based on the option's initial grant date, and have a contractual life of 7 years. As of December 31, 2022 , there were 501,548 shares of restricted stock and 1,172,607 stock options outstanding under the 2020 F&G Omnibus Plan. Stock option transactions under the 2020 F&G Omnibus Plan for the years ended December 31, 2022 and 2021 and for the period June 1, 2020 to December 31, 2020, and the FGL Incentive Plan for the Predecessor period January 1, 2020 to May 31, 2020, are as follows: Options Weighted Average Exercise Price Exercisable Predecessor balance, January 1, 2020 15,213,959 $ 9.30 1,008,780 Granted — $ — Exercised (1,672,330) $ 9.51 Canceled (96,604) $ 10.00 Predecessor balance, May 31, 2020 13,445,025 $ 9.30 640,000 FGL options canceled and converted into options to purchase FNF common shares in connection with the F&G acquisition 2,411,585 36.04 Exercised (109,159) 27.64 Canceled (299,736) 38.41 Balance, December 31, 2020 2,002,690 $ 36.14 1,021,671 Exercised (474,754) 36.68 Canceled — — Balance, December 31, 2021 1,527,936 $ 35.97 1,072,584 Granted — $ — Exercised (352,614) $ 38.79 Canceled (2,715) $ 28.00 Balance, December 31, 2022 1,172,607 35.15 1,172,607 The following table summarizes information related to stock options outstanding and exercisable as of December 31, 2022: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Intrinsic Value Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Intrinsic Value (In years) (In millions) (In years) (In millions) $0.00 - $27.53 359,510 2.98 27.53 4 359,510 2.98 27.53 4 $27.54 - $28.00 43,019 3.32 28.00 — 43,019 3.32 28.00 — $28.01 - $39.10 770,078 2.62 39.10 — 770,078 2.62 39.10 — 1,172,607 4 1,172,607 4 Restricted stock transactions under the 2020 F&G Omnibus Plan for the years ended December 31, 2022 and 2021 and for the period June 1, 2020 to December 31, 2020, and the FGL Incentive Plan for the predecessor period January 1, 2020 to May 31, 2020, are as follows: Shares Weighted Average Grant Date Fair Value Predecessor balance, January 1, 2020 — — Granted 95,416 $ 10.48 Canceled — — Predecessor balance, May 31, 2020 95,416 $ 10.48 FGL shares vested in connection with the F&G acquisition (95,416) 10.48 Granted 474,025 34.13 Canceled (24,155) 34.47 Balance, December 31, 2020 449,870 $ 34.11 Granted 311,081 48.28 Canceled (12,437) 33.40 Vested (29,873) 34.59 Balance, December 31, 2021 718,641 $ 40.24 Granted — — Canceled (78,551) 37.79 Vested (138,542) 34.11 Balance, December 31, 2022 501,548 $ 42.31 We account for stock-based compensation plans in accordance with GAAP on share-based payments, which requires that compensation cost relating to share-based payments be recognized in the consolidated financial statements based on the fair value of each award. Using the fair value method of accounting, compensation cost is measured based on the fair value of the award at the grant date and recognized over the service period. The total fair value of restricted stock awards granted in the years ended December 31, 2022 and December 31, 2021 , and for the period from June 1, 2020 to December 31, 2020 was $0 million, $15 million and $16 million, respectively and was insignificant for prior periods. The total fair value of restricted stock awards, which vested in the year ended December 31, 2022 was $5 million and was insignificant for prior periods. Option awards are measured at fair value on the grant date using the Black Scholes Option Pricing Model. The intrinsic value of options exercised in the years ended December 31, 2022 and December 31, 2021 , for the period from June 1, 2020 to December 31, 2020, and for the Predecessor period from January 1, 2020 to May 31, 2020 was insignificant for all periods. Net earnings attributable to F&G Shareholders reflects stock-based compensation expense amounts of $12 million, $9 million, $4 million and $3 million for the years ended December 31, 2022 and December 31, 2021, for the period June 1, 2020 to December 31, 2020, and for the P redecessor period from January 1, 2020 to May 31, 2020, respectively, which are included in personnel costs in the reported financial results of each period. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (share amounts in thousands): Year Ended December 31, Period from Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Net earnings (loss) from continuing operations $ 481 $ 857 $ 161 $ (200) Net earnings (loss) from discontinued operations — 8 (25) (114) Net earnings (loss) $ 481 $ 865 $ 136 $ (314) Less: Preferred stock dividend — — — 8 Net earnings (loss) attributable to common shares $ 481 $ 865 $ 136 $ (322) Weighted-average common shares outstanding - basic 115 105 105 213 Dilutive effect of unvested restricted stock — — — — Dilutive effect of stock options — — — — Weighted-average shares outstanding - diluted 115 105 105 213 Net earnings (loss) per common share: Basic - continuing $ 4.18 $ 8.16 $ 1.54 $ (0.97) Basic - discontinued operations — 0.08 (0.24) (0.54) Basic - net $ 4.18 $ 8.24 $ 1.30 $ (1.51) Diluted - continuing 4.18 8.16 1.54 (0.97) Diluted - discontinued operations — 0.08 (0.24) (0.54) Diluted - net $ 4.18 $ 8.24 $ 1.30 $ (1.51) On June 24, 2022, the following actions previously approved by the F&G board of directors became effective: (i) a stock split in a ratio of 105,000 for 1. Earnings per share has been retrospectively adjusted to reflect as if the split occurred as of June 1, 2020 in accordance with GAAP; (ii) a resolution to enter an exchange agreement with FNF pursuant to which F&G transferred shares of its common stock to FNF in exchange for the $400 million FNF Promissory Note, after which the note was retired. Restricted stock, options or other instruments, which provide the ability to acquire shares of our common stock that are antidilutive are excluded from the computation of diluted earnings per share. For the year ended December 31, 2022, the diluted earnings per share calculation excluded the weighted average effect of 120 thousand restricted stock units issued under the 2022 F&G Omnibus Plan due to their antidilutive effect. For the year ended December 31, 2021 and for the period from June 1, 2020 to December 31, 2020, the Company did not have any share-based plans involving the issuance of the Company's equity and, therefore, no impact to the diluted earnings per share calculation. Under applicable accounting guidance, companies in a loss position are required to use basic weighted average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our net loss for the Predecessor period from January 1, 2020 to May 31, 2020, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of 19 thousand restricted shares and 456 thousand stock options would have been antidilutive to the calculation. If we had not incurred a net loss in the |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). The amendments in this ASU introduce broad changes to accounting for credit impairment of financial instruments. The primary updates include the introduction of a new current expected credit loss ("CECL") model that is based on expected rather than incurred losses and amendments to the accounting for impairment of fixed maturity securities available for sale. The method used to measure estimated credit losses for fixed maturity available-for-sale securities will be unchanged; however, the amendments require credit losses to be recognized through an allowance rather than as a reduction to the amortized cost of those securities. We adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost. We adopted this standard using a modified-retrospective approach, as required. As a result of the adoption, the Company recorded a cumulative-effect adjustment, which decreased opening 2020 retained earnings by $27 million, net of tax. We recorded offsetting increases to the allowance for expected credit losses for mortgage loans and reinsurance recoverables and a decrease for deferred tax impacts. Refer to Note C Investments and Note J Reinsurance for additional information. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The amendments in this update defer the sunset provision within Topic 848 that provides a temporary, optional expedient and exception for contracts affected by reference rate reform by not applying certain modification accounting requirements and instead accounting for the modified contract as a continuation of the existing contract. This guidance eases the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting through December 31, 2024. We adopted this standard upon issuance and this standard had no impact on our Consolidated Financial Statements and related disclosures upon adoption. Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by ASU 2019-09, Financial Services-Insurance: Effective Date and ASU 2020-11, Financial Services-Insurance: Effective Date and Early Application, effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. This update introduced the following requirements: assumptions used to measure cash flows for traditional and limited-payment contracts must be reviewed at least annually with the effect of changes in those assumptions being recognized in the statement of operations; the discount rate applied to measure the liability for future policy benefits and limited-payment contracts must be updated at each reporting date with the effect of changes in the rate being recognized in other comprehensive income (“OCI”); market risk benefits ("MRBs") associated with deposit contracts must be measured at fair value, with the effect of the change in the fair value recognized in earnings, except for the change attributable to instrument-specific credit risk which is recognized in OCI; deferred acquisition costs are no longer required to be amortized in proportion to premiums, gross profits, or gross margins; instead, those balances must be amortized on a constant level basis over the expected term of the related contracts; deferred acquisition costs must be written off for unexpected contract terminations; and disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, separate account liabilities and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions, and methods used in measurement are required to be disclosed. The amendments in this ASU may be early adopted as of the beginning of an annual reporting period for which financial statements have not yet been issued, including interim financial statements. We have identified specific areas that will be impacted by the new guidance. This guidance will bring significant changes to how we account for certain insurance and annuity products within our business and expand disclosures. As part of the implementation process, to date our progress includes, but is not limited to the following: identifying and documenting contracts and contract features in scope of the guidance; identifying actuarial models, systems, and processes to be updated; building and running models; generating and analyzing preliminary output; evaluating and finalizing key accounting policies; evaluating transition requirements and impacts; and establishing, documenting, and executing appropriate internal controls. We will not early adopt this standard and have selected the full retrospective transition method, which requires the new guidance be applied as of the beginning of the earliest period presented or January 1, 2021, referred to as the transition date. Adoption of this standard is expected to increase total stockholders’ equity as of the transition date, January 1, 2021, up to approximately $200 million, net of tax. This transition adjustment is expected to primarily increase Retained Earnings, as well as OCI. The most significant driver of this transition adjustment expected to increase Retained Earnings is the measurement of certain benefits historically recorded as insurance liabilities which will now be classified and measured as MRBs, along with their subsequent changes in fair value, excluding changes attributable to instrument-specific credit risk, which are recorded as a component of OCI. The most significant drivers of this transition adjustment expected to increase OCI are the reversal of intangible balances previously recorded as an adjustment to unrealized gains (losses) on available for sale securities, the remeasurement of the liability for future policyholder benefits using a discount rate assumption that reflects upper-medium grade fixed-income instruments, and the effect of changes in the fair value of MRBs attributable to changes in the instrument-specific credit risk. As of December 31, 2022, the Company continues to expect the measurement drivers above, in relation to the current market conditions, to support a favorable impact to total stockholders’ equity at or greater than the transition impact, contingent upon the completion of our ongoing implementation process. Further, the specific impacts on Retained Earnings and OCI upon adoption of this standard on January 1, 2023 may also differ materially from the transition impact based on the performance of the Company’s business and macroeconomic conditions, including changes in interest rates. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction and clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. Additionally, the amendments require the following disclosures for equity securities subject to contractual sale restrictions: the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet, the nature and remaining duration of the restriction(s), and the circumstances that could cause a lapse in the restriction(s). The amendments in this update do not change the principles of fair value measurement, rather, they clarify those principles when measuring the fair value of an equity security subject to a contractual sale restriction and improve current GAAP by reducing diversity in practice, reducing the cost and complexity in measuring fair value, and increasing comparability of financial information across reporting entities that hold those investments. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, though early adoption is permitted. We do not currently expect to early adopt this standard and are in the process of assessing this standard and its impact on our accounting and disclosures upon adoption. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In connection with the FNF acquisition, certain third party offshore reinsurance businesses were deemed discontinued operations and are presented as such within our consolidated financial statements for all periods presented through the date of their disposition, in accordance with GAAP. On December 18, 2020, we sold F&G Reinsurance Ltd (“F&G Re”) to Aspida Holdings Ltd (“Aspida”). On May 31, 2021, we sold Front Street Re Cayman Ltd (“FSRC”) to Archipelago Lexa (C) Limited. The transactions did not have a material impact to our GAAP financial results. There were no discontinued operations for the year ended December 31, 2022. A summary of the major components of discontinued operations reported in the Consolidated Statements of Earnings are as follows: Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2021 2020 2020 Predecessor Revenues: Life insurance premiums and other fees $ — $ — $ 1 Interest and investment income 3 42 24 Recognized gains and (losses), net — 196 (95) Total revenues 3 238 (70) Expenses: Other operating expenses — 19 (41) Benefits and other changes in policy reserves (5) 244 (5) Other expenses — — 2 Total expenses (5) 263 (44) Earnings (loss) from discontinued operations before income taxes 8 (25) (114) Income tax (expense) benefit — — — Net earnings (loss) from discontinued operations, net of tax $ 8 $ (25) $ (114) Cash flow from discontinued operations data: — — Net cash provided by (used in) operating activities (26) 121 (39) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Refer to Note A Business and Summary of Significant Accounting Policies - Recent Events for information about certain subsequent events. In addition to what is disclosed in Note A, we had the following additional subsequent event. Syncis Investment On January 30, 2023, we purchased a 49% minority ownership stake in Syncis Holdings, LLC. Syncis is an approximately 1,200 agent NMG that focuses on cultural markets including Korean, African-American and Persian. |
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 F&G ANNUITIES & LIFE, INC. AND SUBSIDIARIES SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES December 31, 2022 (In millions) Amortized Cost Fair Value Amount Shown on Condensed Consolidated Balance Sheet Fixed maturity securities, available for sale: United States Government full faith and credit $ 34 $ 32 $ 32 United States Government sponsored entities 46 42 42 United States municipalities, states and territories 1,695 1,410 1,410 Foreign Governments 185 148 148 Corporate securities: Finance, insurance and real estate 5,969 5,085 5,085 Manufacturing, construction and mining 896 737 737 Utilities, energy and related sectors 2,915 2,275 2,275 Wholesale/retail trade 2,535 2,008 2,008 Services, media and other 3,564 2,794 2,794 Hybrid securities 781 705 705 Non-agency residential mortgage-backed securities 1,585 1,479 1,479 Commercial mortgage-backed securities 3,309 3,036 3,036 Asset-backed securities 7,749 7,245 7,245 CLO securities 4,460 4,222 4,222 Total fixed maturity securities, available for sale $ 35,723 $ 31,218 $ 31,218 Equity securities 992 823 823 Limited partnerships: Private equity 1,129 1,129 1,129 Real assets 436 431 431 Credit 867 867 867 Limited partnerships 2,432 2,427 2,427 Commercial mortgage loans 2,406 2,083 2,406 Residential mortgage loans 2,148 1,892 2,148 Other (primarily derivatives and company owned life insurance) 1,137 809 809 Short term investments 1,556 1,556 1,556 Total investments $ 46,394 $ 40,808 $ 41,387 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information | Schedule II F&G ANNUITIES & LIFE, INC. (Parent Only) CONDENSED FINANCIAL INFORMATION OF PARENT ONLY SUPPLEMENTAL CONDENSED BALANCE SHEET (In millions) December 31, 2022 December 31, 2021 Assets Investments in consolidated subsidiaries $ 2,217 $ 4,777 Fixed maturity securities, available for sale 54 72 Cash and cash equivalents 52 3 Prepaid expenses and other assets 5 — Notes receivable 1 1 Deferred tax assets — 35 Income taxes receivable 60 — Total assets $ 2,389 $ 4,888 Liabilities and Equity Accounts payable and other liabilities 24 3 Intercompany payables 3 — Notes payable 546 400 Total liabilities $ 573 $ 403 Equity: F&G common stock, $0.001 par value; authorized 500,000,000 shares as of December 31, 2022 and December 31, 2021; outstanding of 126,409,904 and 105,000,000 as of December 31, 2022 and December 31, 2021, respectively, and issued of 126,409,904 and 105,000,000 as of December 31, 2022 and December 31, 2021, respectively — — Additional paid-in-capital 3,162 2,750 Retained earnings 1,457 1,001 Accumulated other comprehensive income (loss) (2,803) 734 Total equity 1,816 4,485 Total liabilities and equity $ 2,389 $ 4,888 See Report of Independent Registered Public Accounting Firm. Schedule II (continued) F&G ANNUITIES & LIFE, INC. (Parent Only) CONDENSED FINANCIAL INFORMATION OF PARENT ONLY SUPPLEMENTAL CONDENSED INCOME STATEMENT (In millions) Year ended December 31, Year ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Revenues: Predecessor Interest and investment income $ 3 $ — $ — $ — Total revenues 3 — — — Expenses: Other operating expenses — — — 11 Interest expense 7 3 — — Total expenses 7 3 — 11 Earnings (losses) before income tax expense and equity in earnings of subsidiaries (4) (3) — (11) Income tax expense 24 — 35 — Earnings (losses) before equity in earnings of subsidiaries 20 (3) 35 (11) Equity in earnings (losses) of subsidiaries 461 868 101 (303) Net earnings (losses) $ 481 $ 865 136 (314) See Report of Independent Registered Public Accounting Firm. Schedule II (continued) F&G ANNUITIES & LIFE, INC. (Parent Only) CONDENSED FINANCIAL INFORMATION OF PARENT ONLY SUPPLEMENTAL CONDENSED CASH FLOW STATEMENT (In millions) Year ended December 31, Year ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Cash flows from operating activities Predecessor Net earnings (loss) $ 481 $ 865 $ 136 $ (314) Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: Gain (loss) on sales of investments 1 — — — Equity in earnings of subsidiaries (461) (868) (101) 303 Net change in income taxes (25) — (35) — Stock-based compensation 12 9 4 3 Net (increase) decrease in other assets and other liabilities (9) (3) (5) (6) Net cash provided by (used in) operating activities (1) 3 (1) (14) Cash flows from investing activities: Proceeds from sales, calls and maturities of investment securities 4 — — — Net cash provided by (used in) investing activities 4 — — — Cash flows from financing activities: Borrowings 550 — — — Debt issuance costs (4) — — — Exercise of stock options — — — 10 Capital contributions (500) — — — Net cash provided by (used in) financing activities 46 — — 10 Net change in cash and cash equivalents 49 3 (1) (4) Cash and cash equivalents at beginning of year 3 — 1 5 Cash and cash equivalents at end of year $ 52 $ 3 $ — $ 1 See Report of Independent Registered Public Accounting Firm. |
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 | Schedule III F&G ANNUITIES & LIFE, INC. AND SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION (In millions) Year ended December 31, Year ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Deferred acquisition costs 1,589 761 222 918 Future policy benefits, losses, claims and loss expenses 5,923 4,732 4,010 3,741 Other policy claims and benefits payable 109 109 88 74 Life insurance premiums and other fees 1,695 1,395 138 90 Interest and investment income 1,655 1,852 743 403 Benefits, claims, losses and settlement expenses (1,125) (2,138) (866) (298) Amortization, interest, and unlocking of deferred acquisition costs (81) (32) (4) 28 Other operating expenses, net of deferrals (102) (105) (75) (75) |
Schedule IV - Supplemental Rein
Schedule IV - Supplemental Reinsurance Schedule | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Supplemental Reinsurance Schedule | Schedule IV F&G ANNUITIES & LIFE, INC. AND SUBSIDIARIES SUPPLEMENTAL REINSURANCE SCHEDULE (In millions) For the year ended December 31, 2022 Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed to net Life insurance in force $ 6,258 $ (1,594) $ — $ 4,664 — % Premiums and other considerations: Traditional life insurance premiums 160 (128) — 32 — % Life-contingent PRT premiums 1,362 — — 1,362 — % Annuity product charges 300 (50) — 250 — % Total premiums and other considerations $ 1,822 $ (178) $ — $ 1,644 — % For the year ended December 31, 2021 Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed to net Life insurance in force $ 4,881 $ (1,682) $ — $ 3,199 — % Premiums and other considerations: Traditional life insurance premiums 168 (137) — 31 — % Life-contingent PRT premiums 1,146 — — 1,146 — % Annuity product charges 269 (51) — 218 — % Total premiums and other considerations $ 1,583 $ (188) $ — $ 1,395 — % For the period from June 1, 2020 to December 31, 2020 Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed to net Life insurance in force $ 3,892 $ (2,064) $ — $ 1,828 — % Premiums and other considerations: Traditional life insurance premiums 108 (85) — 23 — % Annuity product charges 146 (31) — 115 — % Total premiums and other considerations $ 254 $ (116) $ — $ 138 — % For the predecessor period January 1, 2020 to May 31, 2020 Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed to net Life insurance in force $ 3,626 $ (2,025) $ — $ 1,601 — % Premiums and other considerations: Traditional life insurance premiums 86 (67) — 19 — % Annuity product charges 93 (22) — 71 — % Total premiums and other considerations $ 179 $ (89) $ — $ 90 — % |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Discontinued Operations | Discontinued Operations In connection with the FNF acquisition, certain third party offshore reinsurance businesses were deemed discontinued operations and are presented as such within our consolidated financial statements for all periods presented through the date of their disposition, in accordance with GAAP. On December 18, 2020, we sold F&G Reinsurance Ltd (“F&G Re”) to Aspida Holdings Ltd (“Aspida”). On May 31, 2021, we sold third party reinsurance business held within Front Street Re Cayman Ltd (“FSRC”) to Archipelago Lexa (C) Limited. The transactions did not have a material impact to our GAAP financial results. Refer to Note R Discontinued Operations for more information. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements are prepared in accordance with GAAP and include our accounts as well as our wholly owned subsidiaries. All intercompany profits, transactions and balances have been eliminated. |
Investments | Investments Fixed Maturity Securities Available-for-Sale Fixed maturity securities are purchased to support our investment strategies, which are developed based on factors including rate of return, maturity, credit risk, duration, tax considerations and regulatory requirements. Our investments in fixed maturity securities have been designated as available-for-sale ("AFS") and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within accumulated other comprehensive income (loss) ("AOCI"), net of associated adjustments for deferred acquisition costs ("DAC"), value of business acquired ("VOBA"), deferred sales inducements ("DSI"), unearned revenue ("UREV"), Statement of Position 03-1 , Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts, (“SOP 03-1”) reserves, and deferred income taxes. Fair values for fixed maturity securities are principally a function of current market conditions and are primarily valued based on quoted prices in markets that are not active or model inputs that are observable or unobservable. We recognize investment income on fixed maturities based on the effective interest method, which results in the recognition of a constant rate of return on the investment equal to the prevailing rate at the time of purchase or at the time of subsequent adjustments of book value. Realized gains and losses on sales of our fixed maturity securitie s are determined on the first-in first-out cost basis. We generally record security transactions on a trade date basis except for private placements, which are recorded on a settlement date basis. Realized gains and losses on sales of fixed maturity securities are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. Fixed maturity securities AFS are subject to an allowance for credit loss and changes in the allowance are reported in net earnings as a component of Recognized gains and losses, net. For details on our policy around allowance for expected credit losses on available-for-sale securities, refer to Note C Investments. Preferred and Equity Securities Equity and prefer red securities held are carried at fair value as of the balance sheet dates. The fair values of our equity and preferred securities are based on quoted prices in active markets, or are valued based on quoted prices in markets that are not active, model inputs that are observable or unobservable or based on net asset value (“NAV”). Changes in fair value and realized gains and losses on sales of our preferred and equity securities are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. Recognized gains and losses on sales of our preferred and equity securities are credited or charged to earnings on a trade date basis, unless the security is a private placement in which case settlement date basis is used. Interest and dividend income from these investments is reported in Interest and investment income in the accompanying Consolidated Statements of Earnings. |
Derivative Financial Instruments | Derivative Financial Instruments We hedge certain portions of our exposure to product related equity market risk by entering into derivative transactions (primarily call options). All such derivative instruments are recognized as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. The changes in fair value are reported within Recognized gains and losses, net in the accompanying Consolidated Statements of Earnings. We purchase financial instruments and issue products that may contain embedded derivative instruments. If it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract for measurement purposes. The embedded derivative is carried at fair value, which is determined through a combination of market observable inputs such as market value of option and interest swap rates and unobservable inputs such as the mortality multiplier, surrender and withdrawal rates and non-performance spread. The changes in fair value are reported within Benefits and other changes in policy reserves in the accompanying Consolidated Statements of Earnings. See a description of the fair value methodology used in Note B Fair Value of Financial Instruments. Reinsurance Related Embedded Derivatives As discussed in Note J Reinsurance , F&G entered into reinsurance agreements with Kubera Insurance (SAC) Ltd. ("Kubera"), effective December 31, 2018, and Aspida Life Re Ltd. ("Aspida Re"), effective January 1, 2021, and amended in August 2021 and September 2022, to cede a quota share of certain deferred annuity and multi-year guaranteed annuities ("MYGA"), respectively, and GAAP and statutory reserves on a coinsurance funds withheld basis, net of applicable existing reinsurance. Effective October 31, 2021, the Kubera agreement was novated from Kubera to Somerset Reinsurance Ltd. ("Somerset"), a certified third-party reinsurer. Funds withheld arrangements allow the Company to retain legal ownership of assets backing reinsurance arrangements until they are earned by the reinsurer while passing credit risk associated with the assets in the funds withheld account to the reinsurer. These arrangements create embedded derivatives considered to be total return swaps with contractual returns that are attributable to the assets and liabilities associated with the reinsurance arrangement. The fair value of the total return swap is based on the change in fair value of the underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangement, including gains and losses from sales, are passed directly to the reinsurer pursuant to contractual terms of the reinsurance arrangement. These total return swaps are not clearly and closely related to the underlying reinsurance contract and thus require bifurcation. The reinsurance related embedded derivative is reported in Prepaid expenses and other assets if in a net gain position, or Accounts payable and accrued liabilities, if in a net loss position on the Consolidated Balance Sheets and the related gains or losses are reported in Recognized gains and losses, net, on the Consolidated Statements of Earnings. |
Mortgage Loans | Mortgage Loans Our investment in mortgage loans consists of commercial and residential mortgage loans on real estate, which are reported at amortized cost, less allowance for expected credit losses. For details on our policy around allowance for expected credit losses on mortgage loans, refer to Note C Investments . Commercial mortgage loans are continuously monitored by reviewing appraisals, operating statements, rent revenues, annual inspection reports, loan specific credit quality, property characteristics, market trends and other factors. Commercial mortgage loans are rated for the purpose of quantifying the level of risk. Loans are placed on a watch list when the debt service coverage ("DSC") ratio falls below certain thresholds and the loan-to-value ("LTV") ratios exceeds certain thresholds. Loans on the watchlist are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. We define delinquent mortgage loans as 30 days past due, consistent with industry practice. Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. We define nonperforming residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status, which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. We consider residential mortgage loans that are 90 or more days past due and have an LTV greater than 90% to be foreclosure probable. Interest on loans is recognized on an accrual basis at the applicable interest rate on the principal amount outstanding. Loan origination fees and direct costs, as well as premiums and discounts, are amortized as level yield adjustments over the respective loan terms. Unamortized net fees or costs are recognized upon early repayment of the loans. Loan commitment fees are deferred and amortized on an effective yield basis over the term of the loan. Interest income, amortization of premiums and discounts, prepayment fees, and loan commitment fees are reported in Interest and investment income in the accompanying Consolidated Statements of Earnings. |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated AffiliatesWe primarily account for our investments in unconsolidated affiliates (primarily limited partnerships) using the equity method, where the cost is initially recorded as an investment in the entity. Adjustments to the carrying amount reflect our pro rata ownership percentage of the operating results as indicated by NAV in the limited partnership financial statements. Income from investments in unconsolidated affiliates is included within Interest and investment income in the accompanying Consolidated Statements of Earnings. Recognition of income and adjustments to the carrying amount are delayed due to the availability of the related financial statements, which are obtained from the general partner generally on a one to three-month delay. Management meets quarterly with the general partner to determine whether any credit or other market events have occurred since prior quarter financial statements to ensure any material events are properly included in current quarter valuation and investment income. |
Interest and investment income | Interest and investment income Dividends and interest income are recorded in Interest and investment income and recognized when earned. Income or losses upon call or prepayment of fixed maturity securities are recognized in Interest and investment income. Amortization of premiums and accretion of discounts on investments in fixed maturity securities are reflected in Interest and investment income over the contractual terms of the investments, and for callable investments at a premium, based on the earliest call date of the investments, in a manner that produces a constant effective yield. For mortgage-backed and asset-backed securities, included in the fixed maturity securities portfolios, one of two models may be used to recognize interest income. For higher rated securities, interest income will be estimated based on an effective yield that considers cash flows received to date plus current expectations of future cash flows. For all other securities, interest income will be estimated based upon an effective yield that considers current expectations of future cash flows. For both interest income models, the estimated future cash flows include assumptions regarding the performance of the underlying collateral pool. |
Cash and Cash Equivalents | Cash and Cash EquivalentsHighly liquid instruments purchased as part of cash management with original maturities of three months or less are considered cash equivalents. The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate fair value. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe fair values of financial instruments presented in the Consolidated Financial Statements are estimates of the fair values at a specific point in time using available market information and appropriate valuation methodologies. These estimates are subjective in nature and involve uncertainties and significant judgment in the interpretation of current market data. |
Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations | Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations, requires an acquirer to recognize, separately from goodwill, the identifiable assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree, and to measure these items generally at their acquisition date fair values. Goodwill is recorded as the residual amount by which the purchase price exceeds the fair value of the net assets acquired. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we are required to report provisional amounts in the financial statements for the items for which the accounting is incomplete. Adjustments to provisional amounts initially recorded that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. During the measurement period, we are also required to recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends the sooner of one year from the acquisition date or when we receive the information we were seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not obtainable. Contingent consideration liabilities or receivables recorded in connection with business acquisitions must also be adjusted for changes in fair value until settled. |
Goodwill | Goodwill Goodwill represents the excess of cost over fair value of identifiable net assets acquired and assumed in a business combination. Goodwill and other intangible assets with indefinite useful lives are reviewed for impairment at the reporting unit level on an annual basis or more frequently if circumstances indicate potential impairment, through a comparison of fair value to the carrying amount. In evaluating the recoverability of goodwill, we first determined that based on the level at which the operating results are shared with and regularly reviewed by the Company’s Chief Operating Decision Maker, the Company is a single reporting unit. Next, we perform a qualitative analysis at the reporting unit level to determine whether there are any events or circumstances that would indicate it is more likely than not that the fair value of our recorded goodwill exceeds its carrying value, prior to performing a full fair-value assessment. |
VOBA, DAC and DSI | VOBA, DAC and DSI Our intangible assets include the value of insurance and reinsurance contracts acquired (hereafter referred to as VOBA), DAC and DSI. VOBA is an intangible asset that reflects the amount recorded as insurance contract liabilities less the estimated fair value of in-force contracts (“VIF”) in a life insurance company acquisition. It represents the portion of the purchase price that is allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. VOBA is a function of the VIF, current GAAP reserves, GAAP assets, and deferred tax liability. The VIF is determined by the present value of statutory distributable earnings less opening required capital, and is sensitive to assumptions including the discount rate, surrender rates, partial withdrawals, utilization rates, projected investment spreads, mortality, and expenses. DAC consists principally of commissions that are related directly to the successful sale of new or renewal insurance contracts, which may be deferred to the extent recoverable. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. DSI represents up front bonus credits and vesting and persistency bonuses to policyholder account values, which may be deferred to the extent recoverable. The methodology for determining the amortization of VOBA, DAC and DSI varies by product type. For all insurance contracts accounted for under long-duration contract deposit accounting, amortization is based on assumptions consistent with those used in the development of the underlying contract liabilities, adjusted for emerging experience and expected trends. For all of the insurance intangibles (VOBA, DAC and DSI), the balances are generally amortized over the lives of the policies in relation to the expected emergence of estimated gross profits (“EGPs”) from investment income, surrender charges and other product fees, less policy benefits, maintenance expenses, mortality, and expense margins. Recognized gains (losses) on investments, changes in fair value of derivatives, and changes in fair value of the embedded derivative on our FIA and IUL products are included in actual gross profits in the period realized as described further below. Amortization is reported within Depreciation and amortization in the accompanying Consolidated Statements of Earnings. Changes in assumptions, including our earned rate (i.e., long term assumptions of the Company’s expected earnings on related investments), budgeted option costs (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature) and surrender rates can have a significant impact on VOBA, DAC and DSI balances and amortization rates. Due to the relative size and sensitivity to minor changes in underlying assumptions of those intangible balances, we perform quarterly and annual analyses of the VOBA, DAC and DSI balances for recoverability to ensure that the unamortized portion does not exceed the expected recoverable amounts. At each evaluation date, actual historical gross profits are reflected with the impact on the intangibles reported as “unlocking” as a component of amortization expense, and estimated future gross profits and related assumptions are evaluated for continued reasonableness. Any adjustment in estimated future gross profits requires that the amortization rate be revised (“unlocking”) retroactively to the date of the contract issuance or acquisition date with respect to VOBA. The cumulative unlocking adjustment is recognized as a component of current period amortization and reflected within Depreciation and amortization in the accompanying Consolidated Statements of Earnings. For investment-type products, the VOBA, DAC and DSI assets are adjusted for the impact of unrealized gains (losses) on AFS investments as if these gains (losses) had been realized, with corresponding credits or charges included in AOCI ("shadow adjustments"). Refer to Note Q Recent Accounting Pronouncements for further discussion of accounting pronouncements not yet adopted that may have a significant impact on future estimated amortization expense upon adoption. Other Intangible Assets We have other intangible assets, not including goodwill, VOBA, DAC or DSI, which consist primarily of customer relationships and contracts, the value of distribution network acquired ("VODA"), trademarks and tradenames, state licenses and computer software, which are generally recorded in connection with business combinations at their fair value . Intangible assets with estimable lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In general, customer relationships are amortized over their estimated useful lives, generally ten years, using an accelerated method, which takes into consideration expected customer attrition rates. VODA is an intangible asset that represents the value of an acquired distribution network and is amortized using the sum of years digits method. Contractual relationships are generally amortized over their contractual life. Trademarks and tradenames are generally amortized over ten years. Capitalized computer software includes the fair value of software acquired in business combinations, purchased software and capitalized software development costs. Purchased software is recorded at cost and amortized using the straight-line method over its estimated useful life. Software acquired in business combinations is recorded at its fair value and amortized using straight-line or accelerated methods over its estimated useful life. For internal-use computer software products, internal and external costs incurred during the preliminary project stage are expensed as they are incurred. Internal and external costs incurred during the application development stage are capitalized and amortized |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is computed primarily using the straight-line method based on the estimated useful lives of the related assets: twenty to thirty years for buildings and zero to twenty-five years for furniture, fixtures and equipment. Leasehold improvements are amortized on a straight-line basis over the lesser of the term of the applicable lease or the estimated useful lives of such assets. Property and equipment are reviewed for impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. |
Contractholder Funds | Contractholder Funds Contractholder funds include FIAs, fixed rate annuities, IULs, funding agreements and PRT and immediate annuities contracts without life contingencies. The liabilities for contractholder funds for fixed rate annuities, funding agreements and PRT and immediate annuities contracts without life contingencies consist of contract account balances that accrue to the benefit of the contractholders. The liabilities for FIA and IUL policies consist of the value of the host contract plus the fair value of the indexed crediting feature of the policy, which is accounted for as an embedded derivative. The embedded derivative is carried at fair value in Contractholder Funds in the accompanying Consolidated Balance Sheets with changes in fair value reported in Benefits and other changes in policy reserves in the accompanying Consolidated Statements of Earnings. See a description of the fair value methodology used in Note B Fair Value of Financial Instruments . Liabilities for the Guaranteed Minimum Withdrawal Benefits ("GMWB") and Guaranteed Minimum Death Benefit ("GMDB") riders on FIA and fixed rate annuity products are calculated by multiplying the benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative guaranteed minimum withdrawal and death benefit payments plus interest. The benefit ratio is the ratio of the present value of future guaranteed minimum withdrawal and death benefit payments to the present value of the assessments used to provide the guaranteed minimum withdrawal and death benefit payments using the same assumptions as we use for our intangible assets. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes in a manner similar to the unlocking of VOBA, DAC and DSI. The accounting for these GMWB and GMDB benefit liabilities (also referred to as “SOP 03-1 liabilities”) impact EGPs used to calculate amortization of VOBA, DAC and DSI. The related reserve is adjusted for the impact of unrealized gains (losses) on AFS investments as if these gains (losses) had been realized, with corresponding credits or charges included in AOCI ("shadow adjustments"). Contractholder funds include funds related to funding agreements that have been issued pursuant to the FABN Program as well as to the Federal Home Loan Bank of Atlanta ("FHLB"). Single premiums are received at the initiation of the funding agreements. As of December 31, 2022 and December 31, 2021, we had approximately $2,200 million and $1,900 million, respectively, outstanding under the FABN Program, which provides for semi-annual interest payments with principal maturities. Reserves for the FHLB funding agreements totaled $1,982 million and $1,543 million as of December 31, 2022 and December 31, 2021, respectively. The FHLB agreements provide a guaranteed stream of payments or provide for a bullet payment at maturity with renewal provisions. In accordance with the FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to settle our general obligations. The collateral investments had a fair value of $3,387 million and $2,469 million as of December 31, 2022 and December 31, 2021, respectively. Payments pursuant to FABN and FHLB funding agreements extend through 2029. |
Future Policy Benefits | Future Policy Benefits The liabilities for future policy benefits and claim reserves for traditional life policies and life-contingent immediate annuity policies (which includes life-contingent PRT annuities) are computed using assumptions for |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities and expected benefits of utilizing net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, we determine that it is more likely than not that some portion of the tax benefit will not be realized. We adjust the valuation allowance if, based on our evaluation, there is a change in the amount of deferred income tax assets that are deemed more-likely-than-not to be realized. T he impact on deferred taxes of changes in tax rates and laws, if any, is applied to the years during which temporary differences are expected to be settled and reflected in the financial statements in the period enacted. |
Reinsurance | Reinsurance Our insurance subsidiaries enter into reinsurance agreements with other companies in the normal course of business. For arrangements in which F&G follows reinsurance accounting and for most arrangements that are accounted for as separate investment contracts, we present the amounts consistently and on a gross basis in our Consolidated Balance Sheets with the ceded reserves balance presented as a Reinsurance recoverable. Where applicable, deferred gains associated with the reinsurance of insurance and investment contracts will be included within Accounts payable and accrued expenses with the related accretion reflected within Life insurance premiums and other fees on the Consolidated Balance Sheets and Statements of Earnings, respectively. Where applicable, deferred costs associated with the reinsurance of insurance and investment contracts will be included within the Prepaid expense and other assets with the related amortization reflected within Other operating expenses in the Consolidated Balance Sheets and Statements of Earnings, respectively. Premium and expense are recorded net of reinsurance ceded for both insurance and investment contracts. |
Revenue Recognition | Revenue Recognition The Company's life insurance premiums reflect premiums for traditional life policies and life-contingent immediate annuity policies (which includes life-contingent PRT annuities) which are recognized as revenue when |
Benefits and Other Changes in Policy Reserves | Benefits and Other Changes in Policy Reserves Benefit expenses for FIAs, fixed rate annuities, IUL policies and funding agreements include interest credited and, for FIA and IUL policies, index credits, to contractholder account balances. Benefit claims in excess of contract account balances, net of reinsurance recoveries, are charged to expense in the period that they are earned by the policyholder based on their selected strategy or strategies. Interest crediting rates associated with funds invested in the general account of our insurance subsidiaries for the years ended December 31 2022 and December 31, 2021 range from 0.5% to 6.0% for fixed rate annuities and FIAs combined and 3.0% to 4.8% for IULs. For funding agreements, the rates range from 0.8% to 5.15% for the year ended December 31, 2022 and 0.2% to 5.0% for the year ended December 31, 2021. Other changes in policy reserves include the change in the fair value of the FIA embedded derivative and the change in the SOP 03-1 reserve for GMWB and GMDB benefits. |
Share-Based Compensation Plans | Stock-Based Compensation Plans We account for stock-based compensation plans using the fair value method. Using the fair value method of accounting, compensation cost is measured based on the fair value of the award at the grant date using quoted market prices, and recognized over the service period. |
Earnings Per Share | Earnings Per Share Basic earnings per share ("EPS"), as presented on the Consolidated Statement of Earnings, is computed by dividing net earnings from continuing operations and separately from discontinued operations by the weighted average number of common shares outstanding during the period. In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings from continuing operations and separately from discontinued operations by the weighted average number of common shares outstanding plus the impact of assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted earnings per share is equal to basic earnings per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. Prior to the FNF acquisition, we had certain non-vested stock, stock options, warrants and performance share units, which have been treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which positive earnings have been reported. For periods prior to the FNF acquisition, the effect of a potential conversion of outstanding preferred shares to common shares is not considered in the diluted EPS calculation as the preferred shareholders did not yet have the right to convert. |
Comprehensive Earnings (Loss) | Comprehensive Earnings (Loss) We report Comprehensive earnings (loss) in accordance with GAAP on the Consolidated Statements of Comprehensive Earnings. Total comprehensive earnings are defined as all changes in shareholders' equity during a period, other than those resulting from investments by and distributions to shareholders. While total comprehensive earnings is the activity in a period and is largely driven by net earnings in that period, accumulated other comprehensive earnings or loss represents the cumulative balance of other comprehensive earnings, net of tax, as of the balance sheet date. Amounts reclassified to net earnings relate to the realized gains (losses) on our investments and other financial instruments, excluding investments in unconsolidated affiliates, and are included in Recognized gains and losses, net on the Consolidated Statements of Earnings. |
Management Estimates | Management Estimates The preparation of these Consolidated Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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 period. Actual results could differ from those estimates. Periodically, and at least annually, typically in the third quarter, we review the assumptions associated with reserves for policy benefits, product guarantees, and amortization of intangibles. During the fourth quarter of 2022, based on increases in interest rates and pricing changes during 2022, we updated certain FIA assumptions used to calculate the fair value of the embedded derivative component within contractholder funds and certain assumptions used to calculate SOP 03-1 liabilities and intangible balances. These changes, taken together, resulted in an increase in contractholder funds and future policy benefits of $97 million and an increase to intangible assets of $47 million . During the third quarter of 2021, we implemented a new actuarial valuation system. As a result, our third quarter 2021 assumption updates include model refinements and assumption updates resulting from the implementation. The system implementation and assumption review process that occurred in the third quarter of 2021, included refinements in the calculation of the fair value of the embedded derivative component of our FIAs within contractholder funds and updates to the surrender rates, GMWB utilization, IUL premium persistency, |
Recent Accounting Pronouncements | Adopted Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326). The amendments in this ASU introduce broad changes to accounting for credit impairment of financial instruments. The primary updates include the introduction of a new current expected credit loss ("CECL") model that is based on expected rather than incurred losses and amendments to the accounting for impairment of fixed maturity securities available for sale. The method used to measure estimated credit losses for fixed maturity available-for-sale securities will be unchanged; however, the amendments require credit losses to be recognized through an allowance rather than as a reduction to the amortized cost of those securities. We adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost. We adopted this standard using a modified-retrospective approach, as required. As a result of the adoption, the Company recorded a cumulative-effect adjustment, which decreased opening 2020 retained earnings by $27 million, net of tax. We recorded offsetting increases to the allowance for expected credit losses for mortgage loans and reinsurance recoverables and a decrease for deferred tax impacts. Refer to Note C Investments and Note J Reinsurance for additional information. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The amendments in this update defer the sunset provision within Topic 848 that provides a temporary, optional expedient and exception for contracts affected by reference rate reform by not applying certain modification accounting requirements and instead accounting for the modified contract as a continuation of the existing contract. This guidance eases the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting through December 31, 2024. We adopted this standard upon issuance and this standard had no impact on our Consolidated Financial Statements and related disclosures upon adoption. Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by ASU 2019-09, Financial Services-Insurance: Effective Date and ASU 2020-11, Financial Services-Insurance: Effective Date and Early Application, effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. This update introduced the following requirements: assumptions used to measure cash flows for traditional and limited-payment contracts must be reviewed at least annually with the effect of changes in those assumptions being recognized in the statement of operations; the discount rate applied to measure the liability for future policy benefits and limited-payment contracts must be updated at each reporting date with the effect of changes in the rate being recognized in other comprehensive income (“OCI”); market risk benefits ("MRBs") associated with deposit contracts must be measured at fair value, with the effect of the change in the fair value recognized in earnings, except for the change attributable to instrument-specific credit risk which is recognized in OCI; deferred acquisition costs are no longer required to be amortized in proportion to premiums, gross profits, or gross margins; instead, those balances must be amortized on a constant level basis over the expected term of the related contracts; deferred acquisition costs must be written off for unexpected contract terminations; and disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, MRBs, separate account liabilities and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions, and methods used in measurement are required to be disclosed. The amendments in this ASU may be early adopted as of the beginning of an annual reporting period for which financial statements have not yet been issued, including interim financial statements. We have identified specific areas that will be impacted by the new guidance. This guidance will bring significant changes to how we account for certain insurance and annuity products within our business and expand disclosures. As part of the implementation process, to date our progress includes, but is not limited to the following: identifying and documenting contracts and contract features in scope of the guidance; identifying actuarial models, systems, and processes to be updated; building and running models; generating and analyzing preliminary output; evaluating and finalizing key accounting policies; evaluating transition requirements and impacts; and establishing, documenting, and executing appropriate internal controls. We will not early adopt this standard and have selected the full retrospective transition method, which requires the new guidance be applied as of the beginning of the earliest period presented or January 1, 2021, referred to as the transition date. Adoption of this standard is expected to increase total stockholders’ equity as of the transition date, January 1, 2021, up to approximately $200 million, net of tax. This transition adjustment is expected to primarily increase Retained Earnings, as well as OCI. The most significant driver of this transition adjustment expected to increase Retained Earnings is the measurement of certain benefits historically recorded as insurance liabilities which will now be classified and measured as MRBs, along with their subsequent changes in fair value, excluding changes attributable to instrument-specific credit risk, which are recorded as a component of OCI. The most significant drivers of this transition adjustment expected to increase OCI are the reversal of intangible balances previously recorded as an adjustment to unrealized gains (losses) on available for sale securities, the remeasurement of the liability for future policyholder benefits using a discount rate assumption that reflects upper-medium grade fixed-income instruments, and the effect of changes in the fair value of MRBs attributable to changes in the instrument-specific credit risk. As of December 31, 2022, the Company continues to expect the measurement drivers above, in relation to the current market conditions, to support a favorable impact to total stockholders’ equity at or greater than the transition impact, contingent upon the completion of our ongoing implementation process. Further, the specific impacts on Retained Earnings and OCI upon adoption of this standard on January 1, 2023 may also differ materially from the transition impact based on the performance of the Company’s business and macroeconomic conditions, including changes in interest rates. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction and clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. Additionally, the amendments require the following disclosures for equity securities subject to contractual sale restrictions: the fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet, the nature and remaining duration of the restriction(s), and the circumstances that could cause a lapse in the restriction(s). The amendments in this update do not change the principles of fair value measurement, rather, they clarify those principles when measuring the fair value of an equity security subject to a contractual sale restriction and improve current GAAP by reducing diversity in practice, reducing the cost and complexity in measuring fair value, and increasing comparability of financial information across reporting entities that hold those investments. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, though early adoption is permitted. We do not currently expect to early adopt this standard and are in the process of assessing this standard and its impact on our accounting and disclosures upon adoption. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Premium Annuity Deposits (Net of Reinsurance) and Funding Agreements Excluded from Revenues | Premiums, annuity deposits (net of reinsurance) and funding agreements, which are not included as revenues in the accompanying Consolidated Statements of Earnings, collected by product type were as follows: Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Product Type Fixed indexed annuities $ 4,483 $ 4,420 $ 1,966 $ 1,469 Fixed rate annuities 1,522 878 631 146 Funding agreements (FABN/FHLB) 1,891 2,658 100 100 Life insurance and other (a) 446 329 152 102 Total $ 8,342 $ 8,285 $ 2,849 $ 1,817 (a) Life insurance and other primarily includes indexed universal life insurance. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The carrying amounts and estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt, which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows (in millions): December 31, 2022 Level 1 Level 2 Level 3 NAV Fair Value Carrying Amount Assets Cash and cash equivalents $ 960 $ — $ — $ — $ 960 $ 960 Fixed maturity securities, available-for-sale: Asset-backed securities — 5,204 6,263 — 11,467 11,467 Commercial mortgage-backed securities — 2,999 37 — 3,036 3,036 Corporates — 11,472 1,427 — 12,899 12,899 Hybrids 93 612 — — 705 705 Municipals — 1,381 29 — 1,410 1,410 Residential mortgage-backed securities — 1,219 302 — 1,521 1,521 U.S. Government 32 — — — 32 32 Foreign Governments — 132 16 — 148 148 Preferred securities 248 474 — — 722 722 Equity securities 54 — — 47 101 101 Derivative investments — 244 — — 244 244 Short term investments 1,556 — — — 1,556 1,556 Reinsurance related embedded derivative, included in other assets — 279 — — 279 279 Other long-term investments — — 71 — 71 71 Total financial assets at fair value $ 2,943 $ 24,016 $ 8,145 $ 47 $ 35,151 $ 35,151 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,115 — 3,115 3,115 Total financial liabilities at fair value $ — $ — $ 3,115 $ — $ 3,115 $ 3,115 December 31, 2021 Level 1 Level 2 Level 3 NAV Fair Value Carrying Amount Assets Cash and cash equivalents $ 1,533 $ — $ — $ — $ 1,533 $ 1,533 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,736 3,959 — 8,695 8,695 Commercial mortgage-backed securities — 2,929 35 — 2,964 2,964 Corporates — 13,883 1,121 — 15,004 15,004 Hybrids 132 749 — — 881 881 Municipals — 1,398 43 — 1,441 1,441 Residential mortgage-backed securities — 722 — — 722 722 U.S. Government 50 — — — 50 50 Foreign Governments — 187 18 — 205 205 Preferred securities 407 620 1 — 1,028 1,028 Equity securities 95 — — 48 143 143 Derivative investments — 816 — 816 816 Short-term investments 50 2 321 — 373 373 Other long-term investments — — 78 — 78 78 Total financial assets at fair value $ 2,267 $ 26,042 $ 5,576 $ 48 $ 33,933 $ 33,933 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds — — 3,883 — 3,883 3,883 Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities — 73 — — 73 73 Total financial liabilities at fair value $ — $ 73 $ 3,883 $ — $ 3,956 $ 3,956 The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. December 31, 2022 (in millions) Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 99 $ — $ — $ 99 $ 99 Commercial mortgage loans — — 2,083 — 2,083 2,406 Residential mortgage loans — — 1,892 — 1,892 2,148 Investments in unconsolidated affiliates — — — 2,427 2,427 2,427 Policy loans — — 52 — 52 52 Other invested assets — — 15 — 15 15 Company-owned life insurance — — 328 — 328 328 Total $ — $ 99 $ 4,370 $ 2,427 $ 6,896 $ 7,475 Liabilities Investment contracts, included in contractholder funds — — 34,464 — 34,464 38,412 Debt — 1,092 — — 1,092 1,114 Total $ — $ 1,092 $ 34,464 $ — $ 35,556 $ 39,526 December 31, 2021 (in millions) Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 72 $ — $ — $ 72 $ 72 Commercial mortgage loans — — 2,265 — 2,265 2,168 Residential mortgage loans — — 1,549 — 1,549 1,581 Investments in unconsolidated affiliates — — — 2,350 2,350 2,350 Policy loans — — 39 — 39 39 Company-owned life insurance — — 299 — 299 299 Total $ — $ 72 $ 4,152 $ 2,350 $ 6,574 $ 6,509 Liabilities Investment contracts, included in contractholder funds — — 27,448 — 27,448 31,529 Debt — 615 412 — 1,027 977 Total $ — $ 615 $ 27,860 $ — $ 28,475 $ 32,506 |
Fair Value Measurement Inputs and Valuation Techniques | Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of December 31, 2022 and December 31, 2021 are as follows: Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2022 (in millions) December 31, 2022 Assets Asset-backed securities $ 5,916 Broker-quoted Offered quotes 52.85% - 117.17% (94.18%) Asset-backed securities 347 Third-Party Valuation Offered quotes 41.43% - 210.50% (67.99%) Commercial mortgage-backed securities 20 Broker-quoted Offered quotes 109.02% - 109.02% (109.02%) Commercial mortgage-backed securities 17 Third-Party Valuation Offered quotes 74.66% - 88.48% (82.74%) Corporates 602 Broker-quoted Offered quotes 79.16% - 102.53% (94.16%) Corporates 825 Third-Party Valuation Offered quotes —% - 104.96% (89.69%) Municipals 29 Third-Party Valuation Offered quotes 93.95% - 93.95% (93.95%) Residential mortgage-backed securities 302 Broker-quoted Offered quotes 0.00% - 91.04% (86.38%) Foreign governments 16 Third-Party Valuation Offered quotes 99.78% - 102.29% (100.56%) Other long-term investments: Available-for-sale embedded derivative 23 Black Scholes model Market value of fund 100.00% Secured borrowing receivable 10 Broker-quoted Offered quotes 100.00% - 100.00% (100.00%) Credit linked note 15 Broker-quoted Offered quotes 96.23% Investment in affiliate 23 Market Comparable Company Analysis EBITDA multiple 5x-5.5x Total financial assets at fair value $ 8,145 Liabilities Derivative investments: FIA/IUL embedded derivatives, included in contractholder funds 3,115 Discounted cash flow Market value of option 0.00% - 23.90% (0.87%) Swap rates 3.88% - 4.73% (4.31%) Mortality multiplier 100.00% - 100.00% (100.00%) Surrender rates 0.25% - 70.00% (6.57%) Partial withdrawals 2.00% - 29.41% (2.73%) Non-performance spread 0.48% - 1.44% (1.30%) Option cost 0.07% - 4.97% (1.89%) Total financial liabilities at fair value $ 3,115 Fair Value at Valuation Technique Unobservable Input(s) Range (Weighted average) December 31, 2021 (in millions) December 31, 2021 Assets Asset-backed securities $ 3,844 Broker-quoted Offered quotes 52.56% - 260.70% (97.06)% Asset-backed securities 115 Third-Party Valuation Offered quotes 93.02% - 108.45% (104.95)% Commercial mortgage-backed securities 24 Broker-quoted Offered quotes 126.70% - 126.70% (126.70)% Commercial mortgage-backed securities 11 Third Party Valuation Offered quotes 97.91% - 97.91% (97.91)% Corporates 380 Broker-quoted Offered quotes —% - 109.69% (100.91)% Corporates 741 Third-Party Valuation Offered quotes 85.71% - 119.57% (107.72)% Municipals 43 Third-Party Valuation Offered quotes 135.09% - 135.09% (135.09)% Foreign governments 18 Third-Party Valuation Offered quotes 107.23% - 116.44%% (110.11)% Short-term 321 Broker-quoted Offered quotes 100.00% - 100.00% (100.00)% Preferred securities 1 Income-Approach Yield 2.43% Other long-term investments: Available-for-sale embedded derivative 34 Black Scholes model Market value of fund 100.00% Credit linked note 23 Broker-quoted Offered quotes 100.00% Investment in affiliate 21 Market Comparable Company Analysis EBITDA multiple 8x-8x Total financial assets at fair value $ 5,576 Liabilities Derivatives: FIA/ IUL embedded derivatives, included in contractholder funds 3,883 Discounted cash flow Market value of option —% - 38.72% (3.16)% Swap rates 0.05% - 1.94% (1.00)% Mortality multiplier 100.00% - 100.00% (100.00)% Surrender rates 0.25% - 70.00% (6.26)% Partial withdrawals 2.00% - 23.26% (2.72)% Non-performance spread 0.43% - 1.01% (0.68)% Option cost 0.07% - 4.97% (1.83)% Total financial liabilities at fair value $ 3,883 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2022 and 2021, respectively. This summary excludes any impact of amortization of VOBA, DAC and DSI. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Year ended December 31, 2022 (in millions) Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Level 3 (a) Balance at End of Change in Unrealized Included in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 3,959 $ (6) $ (393) $ 3,269 $ (39) $ (541) $ 14 $ 6,263 $ (426) Commercial mortgage-backed securities 35 — (5) — — — 7 37 (4) Corporates 1,121 1 (187) 710 (20) (215) 17 1,427 (188) Hybrids — — — — — — — — — Municipals 43 — (14) — — — — 29 (13) Residential mortgage-backed securities — — — 316 — — (14) 302 — Foreign Governments 18 — (2) — — — — 16 (1) Short-term 321 — (1) 20 — — (340) — (1) Preferred securities 1 — (1) — — — — — (1) Equity securities — — — — — — — — — Other long-term investments: — — Available-for-sale embedded derivative 34 (11) — — — — — 23 — Investment in affiliate 21 — 2 — — — — 23 2 Credit linked note 23 (1) (1) — (2) (4) — 15 — Secured borrowing receivable — — — — — — 10 10 — Total assets at Level 3 fair value $ 5,576 $ (17) $ (602) $ 4,315 $ (61) $ (760) $ (306) $ 8,145 $ (632) Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,883 (1,382) — 768 — (154) — 3,115 — Total liabilities at Level 3 fair value $ 3,883 $ (1,382) $ — $ 768 $ — $ (154) $ — $ 3,115 $ — (a) The net transfers out of Level 3 during the year ended December 31, 2022 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. Year ended December 31, 2021 (in millions) Balance at Beginning of Period Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Level 3 (a) Balance at End of Period Change in Unrealized Included in OCI Included in Earnings Included in AOCI Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 1,350 $ (1) $ (8) $ 3,417 $ (97) $ (595) $ (107) $ 3,959 $ 4 Commercial mortgage-backed securities 26 — (3) 12 — — — 35 1 Corporates 1,274 8 (40) 154 (9) (247) (19) 1,121 23 Hybrids 4 — — — — (4) — — — Municipals 43 — — — — — — 43 7 Residential mortgage-backed securities 483 — (1) 14 — (102) (394) — 22 Foreign Governments 17 — 1 — — — — 18 2 Short-term — — 2 820 — (501) — 321 — Preferred securities 1 (1) 1 — — — — 1 — Other long-term investments: Available-for-sale embedded derivative 27 7 — — — — — 34 — Credit linked note 23 — — — — — — 23 — Investment in affiliate — — — 21 — — — 21 — Total assets at Level 3 fair value $ 3,248 $ 13 $ (48) $ 4,438 $ (106) $ (1,449) $ (520) $ 5,576 $ 59 Liabilities Future policy benefits 5 — — — (4) (1) — — — FIA/IUL embedded derivatives, included in contractholder funds 3,404 121 — 513 — (155) — 3,883 — Total liabilities at Level 3 fair value $ 3,409 $ 121 $ — $ 513 $ (4) $ (156) $ — $ 3,883 $ — ( a) The net transfers out of Level 3 during the year ended December 31, 2021 were to Level 2. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2022 and 2021, respectively. This summary excludes any impact of amortization of VOBA, DAC and DSI. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Year ended December 31, 2022 (in millions) Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Level 3 (a) Balance at End of Change in Unrealized Included in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 3,959 $ (6) $ (393) $ 3,269 $ (39) $ (541) $ 14 $ 6,263 $ (426) Commercial mortgage-backed securities 35 — (5) — — — 7 37 (4) Corporates 1,121 1 (187) 710 (20) (215) 17 1,427 (188) Hybrids — — — — — — — — — Municipals 43 — (14) — — — — 29 (13) Residential mortgage-backed securities — — — 316 — — (14) 302 — Foreign Governments 18 — (2) — — — — 16 (1) Short-term 321 — (1) 20 — — (340) — (1) Preferred securities 1 — (1) — — — — — (1) Equity securities — — — — — — — — — Other long-term investments: — — Available-for-sale embedded derivative 34 (11) — — — — — 23 — Investment in affiliate 21 — 2 — — — — 23 2 Credit linked note 23 (1) (1) — (2) (4) — 15 — Secured borrowing receivable — — — — — — 10 10 — Total assets at Level 3 fair value $ 5,576 $ (17) $ (602) $ 4,315 $ (61) $ (760) $ (306) $ 8,145 $ (632) Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,883 (1,382) — 768 — (154) — 3,115 — Total liabilities at Level 3 fair value $ 3,883 $ (1,382) $ — $ 768 $ — $ (154) $ — $ 3,115 $ — (a) The net transfers out of Level 3 during the year ended December 31, 2022 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. Year ended December 31, 2021 (in millions) Balance at Beginning of Period Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Level 3 (a) Balance at End of Period Change in Unrealized Included in OCI Included in Earnings Included in AOCI Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 1,350 $ (1) $ (8) $ 3,417 $ (97) $ (595) $ (107) $ 3,959 $ 4 Commercial mortgage-backed securities 26 — (3) 12 — — — 35 1 Corporates 1,274 8 (40) 154 (9) (247) (19) 1,121 23 Hybrids 4 — — — — (4) — — — Municipals 43 — — — — — — 43 7 Residential mortgage-backed securities 483 — (1) 14 — (102) (394) — 22 Foreign Governments 17 — 1 — — — — 18 2 Short-term — — 2 820 — (501) — 321 — Preferred securities 1 (1) 1 — — — — 1 — Other long-term investments: Available-for-sale embedded derivative 27 7 — — — — — 34 — Credit linked note 23 — — — — — — 23 — Investment in affiliate — — — 21 — — — 21 — Total assets at Level 3 fair value $ 3,248 $ 13 $ (48) $ 4,438 $ (106) $ (1,449) $ (520) $ 5,576 $ 59 Liabilities Future policy benefits 5 — — — (4) (1) — — — FIA/IUL embedded derivatives, included in contractholder funds 3,404 121 — 513 — (155) — 3,883 — Total liabilities at Level 3 fair value $ 3,409 $ 121 $ — $ 513 $ (4) $ (156) $ — $ 3,883 $ — ( a) The net transfers out of Level 3 during the year ended December 31, 2021 were to Level 2. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Consolidated Investments | The Company’s consolidated investments are summarized as follows (in millions): December 31, 2022 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 12,209 $ (8) $ 36 $ (770) $ 11,467 $ 11,467 Commercial mortgage-backed securities 3,309 (1) 12 (284) 3,036 3,036 Corporates 15,879 (15) 30 (2,995) 12,899 12,899 Hybrids 781 — 8 (84) 705 705 Municipals 1,695 — 4 (289) 1,410 1,410 Residential mortgage-backed securities 1,631 (7) 6 (109) 1,521 1,521 U.S. Government 34 — — (2) 32 32 Foreign Governments 185 — — (37) 148 148 Total available-for-sale securities $ 35,723 $ (31) $ 96 $ (4,570) $ 31,218 $ 31,218 December 31, 2021 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities Asset-backed securities $ 8,516 $ (3) $ 220 $ (38) $ 8,695 $ 8,695 Commercial mortgage-backed securities 2,669 (2) 308 (11) 2,964 2,964 Corporates 14,372 — 784 (152) 15,004 15,004 Hybrids 812 — 69 — 881 881 Municipals 1,386 — 66 (11) 1,441 1,441 Residential mortgage-backed securities 722 (3) 7 (4) 722 722 U.S. Government 50 — — — 50 50 Foreign Governments 197 — 8 — 205 205 Total available-for-sale securities $ 28,724 $ (8) $ 1,462 $ (216) $ 29,962 $ 29,962 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. December 31, 2022 December 31, 2021 (in millions) (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and U.S. Government Securities: Due in one year or less $ 124 $ 123 $ 105 $ 106 Due after one year through five years 2,193 2,059 1,724 1,754 Due after five years through ten years 1,840 1,633 2,141 2,201 Due after ten years 14,417 11,379 12,842 13,515 Subtotal 18,574 15,194 16,812 17,576 Other securities, which provide for periodic payments: Asset-backed securities 12,209 11,467 8,516 8,695 Commercial mortgage-backed securities 3,309 3,036 2,669 2,964 Structured hybrids — — 5 5 Residential mortgage-backed securities 1,631 1,521 722 722 Subtotal 17,149 16,024 11,912 12,386 Total fixed maturity available-for-sale securities $ 35,723 $ 31,218 $ 28,724 $ 29,962 |
Activity in Allowance for Credit Loses of Available-for-sale Securities Aggregated by Investment Category | The activity in the allowance for expected credit losses of available-for-sale securities aggregated by investment category was as follows (in millions): Year ended December 31, 2022 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (a) (Additions) reductions in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Write offs charged against the allowance Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Asset-backed securities $ (3) $ (7) $ — $ (1) $ 2 $ — $ 1 — $ (8) Commercial mortgage-backed securities (2) — — — 1 — — — (1) Corporates — (15) — — — — — — (15) Residential mortgage-backed securities (3) (2) — (2) — — — — (7) Total available-for-sale securities $ (8) $ (24) $ — $ (3) $ 3 $ — $ 1 $ — $ (31) Year ended December 31, 2021 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (a) (Additions) reductions in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Write offs charged against the allowance Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Asset-backed securities $ — $ — $ (1) $ (2) $ — $ — $ — — $ (3) Commercial mortgage-backed securities — (2) — — — — — — (2) Corporates (7) — — 6 — — — 1 — Residential mortgage-backed securities (3) — — — — — — — (3) Total available-for-sale securities $ (10) $ (2) $ (1) $ 4 $ — $ — $ — $ 1 $ (8) Period from June 1 to December 31, 2020 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (a) (Additions) reductions in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Write offs charged against the allowance Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Asset-backed securities $ — $ 7 $ (9) $ 2 $ — $ — $ — $ — $ — Corporates — 1 (17) — 3 4 2 — (7) Hybrids — — (3) — 3 — — — — Residential mortgage-backed securities — 2 (7) 1 1 — — — (3) Total available-for-sale securities $ — $ 10 $ (36) $ 3 $ 7 $ 4 $ 2 $ — $ (10) Period from January 1 to May 31, 2020 Additions Reductions Balance at Beginning of Period For credit losses on securities for which losses were not previously recorded For initial credit losses on purchased securities accounted for as PCD financial assets (a) (Additions) reductions in allowance recorded on previously impaired securities For securities sold during the period For securities intended/required to be sold prior to recovery of amortized cost basis Write offs charged against the allowance Recoveries of amounts previously written off Balance at End of Period Available-for-sale securities Asset-backed securities $ — $ (17) $ — $ 12 $ — $ — $ — $ — $ (5) Corporates — (28) — — 8 12 1 — (7) Residential mortgage-backed securities — (6) — 3 — — — — (3) Total available-for-sale securities $ — $ (51) $ — $ 15 $ 8 $ 12 $ 1 $ — $ (15) (a) Purchased credit deteriorated financial assets (“PCD”) |
Debt Securities, Available-for-sale, Purchased with Credit Deterioration | The following table summarizes year to date PCD AFS security purchases (in millions). Purchased credit-deteriorated available-for-sale debt securities December 31, 2022 December 31, 2021 Purchase price $ — $ 4 Allowance for credit losses at acquisition — 1 AFS purchased credit-deteriorated par value $ — $ 5 |
Fair Value and Gross Unrealized Losses of Available-for-sale Securities | The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost were as follows (dollars in millions): December 31, 2022 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities Asset-backed securities $ 7,001 $ (410) $ 3,727 $ (360) $ 10,728 $ (770) Commercial mortgage-backed securities 2,065 (168) 475 (116) 2,540 (284) Corporates 8,780 (1,679) 3,231 (1,312) 12,011 (2,991) Hybrids 619 (83) 3 (1) 622 (84) Municipals 948 (176) 352 (113) 1,300 (289) Residential mortgage-backed securities 990 (51) 184 (22) 1,174 (73) U.S. Government 11 (1) 21 (1) 32 (2) Foreign Government 119 (32) 14 (5) 133 (37) Total available-for-sale securities $ 20,533 $ (2,600) $ 8,007 $ (1,930) $ 28,540 $ (4,530) Total number of available-for-sale securities in an unrealized loss position less than twelve months 2,774 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 1,212 Total number of AFS securities in an unrealized loss position 3,986 December 31, 2021 Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities Asset-backed securities $ 4,410 $ (31) $ 146 $ (7) $ 4,556 $ (38) Commercial mortgage-backed securities 600 (11) 1 — 601 (11) Corporates 5,017 (126) 394 (26) 5,411 (152) Hybrids 3 — — — 3 — Municipals 407 (5) 85 (6) 492 (11) Residential mortgage-backed securities 325 (3) 11 (1) 336 (4) U.S. Government 32 — 4 — 36 — Foreign Government 27 — — — 27 — Total available-for-sale securities $ 10,821 $ (176) $ 641 $ (40) $ 11,462 $ (216) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,955 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 67 Total number of AFS securities in an unrealized loss position 2,022 |
Schedule of Distribution of CMLs, Gross Valuation by Property Type and Geographic Region | The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables (dollars in millions): December 31, 2022 December 31, 2021 Amortized Cost % of Total Amortized Cost % of Total Property Type: Hotel $ 18 1 % $ 19 1 % Industrial 520 22 % 497 23 % Mixed Use 12 1 % 13 1 % Multifamily 1,013 42 % 894 41 % Office 330 14 % 343 16 % Retail 105 4 % 121 6 % Student Housing 83 3 % 83 4 % Other 335 13 % 204 8 % Total commercial mortgage loans, gross of valuation allowance $ 2,416 100 % $ 2,174 100 % Allowance for expected credit loss (10) (6) Total commercial mortgage loans, net of valuation allowance $ 2,406 $ 2,168 U.S. Region: East North Central $ 151 6 % $ 137 6 % East South Central 76 3 % 79 4 % Middle Atlantic 326 13 % 293 13 % Mountain 355 15 % 236 11 % New England 158 7 % 149 7 % Pacific 708 28 % 649 30 % South Atlantic 521 22 % 459 21 % West North Central 4 1 % 12 1 % West South Central 117 5 % 160 7 % Total commercial mortgage loans, gross of valuation allowance $ 2,416 100 % $ 2,174 100 % Allowance for expected credit loss (10) (6) Total commercial mortgage loans, net of valuation allowance $ 2,406 $ 2,168 |
Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios | The following tables presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios, gross of valuation allowances (dollars in millions) : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 <1.00 December 31, 2022 LTV Ratios: Less than 50.00% $ 511 $ 4 $ 11 $ 526 22 % $ 490 24 % 50.00% to 59.99% 706 — — 706 29 % 615 30 % 60.00% to 74.99% 1,154 3 — 1,157 48 % 955 45 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Commercial mortgage loans (a) $ 2,371 $ 7 $ 29 $ 2,407 100 % $ 2,074 100 % December 31, 2021 LTV Ratios: Less than 50.00% $ 626 $ 33 $ 9 $ 668 31 % $ 745 33 % 50.00% to 59.99% 470 — — 470 22 % 481 21 % 60.00% to 74.99% 1,036 — — 1,036 47 % 1,039 46 % Commercial mortgage loans $ 2,132 $ 33 $ 9 $ 2,174 100 % $ 2,265 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $9 million. |
Schedule of Residential Mortgage Loans by State | The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances (dollars in millions): December 31, 2022 U.S. State: Amortized Cost % of Total Florida $ 324 15 % Texas 215 10 % New Jersey 172 8 % Pennsylvania 153 7 % California 139 6 % New York 138 6 % Georgia 125 6 % All other states (a) 914 42 % Total residential mortgage loans $ 2,180 100 % (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2022. December 31, 2021 U.S. State: Amortized Cost % of Total Florida $ 234 15 % Texas 170 10 % New Jersey 153 10 % All other states (a) 1,049 65 % Total residential mortgage loans $ 1,606 100 % (a) The individual concentration of each state is less than 9% as of December 31, 2021. |
Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming | The credit quality of RMLs was as follows (dollars in millions): December 31, 2022 December 31, 2021 Performance indicators: Amortized Cost % of Total Amortized Cost % of Total Performing $ 2,118 97 % $ 1,533 95 % Non-performing 62 3 % 73 5 % Total residential mortgage loans, gross of valuation allowance $ 2,180 100 % $ 1,606 100 % Allowance for expected loan loss (32) — % (25) — % Total residential mortgage loans, net of valuation allowance $ 2,148 100 % $ 1,581 100 % |
Loans Segregated by Risk Rating Exposure | Loans segregated by risk rating exposure were as follows, gross of valuation allowances (in millions): December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Residential mortgages Current (less than 30 days past due) $ 766 $ 884 $ 214 $ 185 $ 23 $ 33 $ 2,105 30-89 days past due 2 7 — 4 — — 13 Over 90 days past due 3 9 15 34 1 — 62 Total residential mortgages $ 771 $ 900 $ 229 $ 223 $ 24 $ 33 $ 2,180 Commercial mortgages Current (less than 30 days past due) $ 350 $ 1,300 $ 488 $ — $ — $ 269 $ 2,407 30-89 days past due — — — — — — — Over 90 days past due — — — — — 9 9 Total commercial mortgages $ 350 $ 1,300 $ 488 $ — $ — $ 278 $ 2,416 December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total Residential mortgages Current (less than 30 days past due) $ 795 $ 293 $ 323 $ 50 $ 36 $ 21 $ 1,518 30-89 days past due 5 4 6 1 — — 16 Over 90 days past due 1 23 46 2 — — 72 Total residential mortgages $ 801 $ 320 $ 375 $ 53 $ 36 $ 21 $ 1,606 Commercial mortgages Current (less than 30 days past due) $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 30-89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Commercial mortgages LTV Less than 50.00% $ 70 $ 120 $ 207 $ — $ — $ 129 $ 526 50.00% to 59.99% 149 268 158 — — 131 706 60.00% to 74.99% 113 912 123 — — 9 1,157 75.00% to 84.99% 9 — — — — 9 18 Total commercial mortgages (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 Commercial mortgages DSCR Greater than 1.25x $ 329 $ 1,300 $ 488 $ — $ — $ 254 $ 2,371 1.00x - 1.25x 3 — — — — 4 7 Less than 1.00x 9 — — — — 20 29 Total commercial mortgages (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 ( a) Excludes loans under development with an amortized cost and estimated fair value of $9 million. December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total Commercial mortgages LTV Less than 50.00% $ 120 $ 229 $ — $ 6 $ — $ 313 $ 668 50.00% to 59.99% 267 192 — — — 11 470 60.00% to 74.99% 914 122 — — — — 1,036 Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 Commercial mortgages DSCR Greater than 1.25x $ 1,301 $ 543 $ — $ 4 $ — $ 284 $ 2,132 1.00x - 1.25x — — — 2 — 31 33 Less than 1.00x — — — — — 9 9 Total commercial mortgages $ 1,301 $ 543 $ — $ 6 $ — $ 324 $ 2,174 |
Nonaccrual Loans by Amortized Cost | Non-accrual loans by amortized cost were as follows (in millions): Amortized cost of loans on non-accrual December 31, 2022 December 31, 2021 Residential mortgage $ 62 $ 72 Commercial mortgage 9 — Total non-accrual mortgages $ 71 $ 72 |
Allowance for Expected Credit Losses on Loans | The allowances for our mortgage loan portfolio is summarized as follows (in millions): Year ended December 31, 2022 Year ended December 31, 2021 Residential Mortgages Commercial Mortgages Total Residential Mortgages Commercial Mortgages Total Beginning Balance $ 25 $ 6 $ 31 $ 37 $ 2 $ 39 Provision for loan losses 7 4 11 (12) 4 (8) Ending Balance $ 32 $ 10 $ 42 $ 25 $ 6 $ 31 Period from June 1 to December 31, 2020 Period from January 1 to May 31, 2020 Residential Mortgages Commercial Mortgages Total Residential Mortgages Commercial Mortgages Total Predecessor Beginning Balance $ — $ — $ — $ 7 $ 1 $ 8 Provision for loan losses 30 2 32 7 — 7 For initial credit losses on purchased loans accounted for as PCD financial assets 7 — 7 — — — Ending Balance $ 37 $ 2 $ 39 $ 14 $ 1 $ 15 |
Schedule of Sources of Net Investment Income Reported | The major sources of Interest and investment income reported on the accompanying Consolidated Statements of Earnings were as follows (in millions): Year Ended December 31, Period from Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Fixed maturity securities, available-for-sale $ 1,431 $ 1,213 $ 643 $ 426 Equity securities 17 11 7 4 Preferred securities 49 47 35 16 Mortgage loans 186 131 50 36 Invested cash and short-term investments 33 7 — 4 Limited partnerships 110 589 75 (37) Other investments 20 17 8 5 Gross investment income 1,846 2,015 818 454 Investment expense (191) (163) (75) (51) Interest and investment income $ 1,655 $ 1,852 $ 743 $ 403 |
Realized Gain (Loss) on Investments | Details underlying Recognized gains and losses, net reported on the accompanying Consolidated Statements of Earnings were as follows (in millions): Year Ended December 31, Period from Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Net realized (losses) gains on fixed maturity available-for-sale securities $ (241) $ 102 $ 95 $ (49) Net realized/unrealized (losses) gains on equity securities (a) (40) (37) 29 (30) Net realized/unrealized (losses) gains on preferred securities (b) (167) (14) 55 (40) Realized (losses) gains on other invested assets (13) 6 — (2) Change in allowance for expected credit losses (34) 4 (19) (23) Derivatives and embedded derivatives: Realized (losses) gains on certain derivative instruments (164) 455 76 11 Unrealized (losses) gains on certain derivative instruments (693) 160 161 (223) Change in fair value of reinsurance related embedded derivatives (c) 352 34 (53) 19 Change in fair value of other derivatives and embedded derivatives (10) 5 8 (1) Realized (losses) gains on derivatives and embedded derivatives (515) 654 192 (194) Recognized gains and losses, net $ (1,010) $ 715 $ 352 $ (338) (a) Includes net valuation (losses) gains of $(40) million, $(37) million, $30 million and $(30) million for the years ended December 31, 2022 and 2021, the period from June 1 to December 31, 2020 and the Predecessor period from January 1 to May 31, 2020, respectively. (b) Includes net valuation (losses) gains of $(159) million, $(14) million, $56 million and $(34) million for the years ended December 31, 2022 and 2021, the period from June 1 to December 31, 2020 and the Predecessor period from January 1 to May 31, 2020, respectively. |
Proceeds from Sale of Fixed Maturity Available-for-sale Securities | The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions): Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Proceeds $ 3,097 $ 4,555 $ 1,398 $ 513 Gross gains 13 142 101 29 Gross losses (239) (42) (5) (20) |
Schedule of Carrying Value and Maximum Loss Exposure, Unconsolidated VIEs | The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs (in millions): December 31, 2022 December 31, 2021 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 2,427 $ 4,030 $ 2,350 $ 3,496 Fixed maturity securities 15,680 17,404 12,382 12,802 Total unconsolidated VIE investments $ 18,107 $ 21,434 $ 14,732 $ 16,298 |
Schedules of Investment Concentrations | Our underlying investment concentrations that exceed 10% of shareholders equity are as follows (in millions). Certain of the investments disclosed as of December 31, 2022 were held as of December 31, 2021 but are not presented in the December 31, 2021 column as they did not exceed 10 % of shareholders equity as of December 31, 2021. December 31, 2022 December 31, 2021 Blackstone Wave Asset Holdco (a) $ 741 $ 870 ELBA (b) 470 — COLI 308 — Verus Securitization Trust (c) 302 — Jade 1 (d) 271 — Jade 2 (d) 271 — Jade 3 (d) 271 — Jade 4 (d) 271 — Maybay Finance, LLC (e) 224 — (a) Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries. (b) Represents special purpose vehicles that hold an underlying minority ownership interest in a single operating liquified natural gas export facility. (c) Represents special purpose vehicles that hold investments backed by the interest paid on loans for residencies. (d) Represents special purpose vehicles that hold numerous underlying corporate loans across various industries. (e) Represents special purpose vehicles that hold investments in multiple aircraft leases. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The carrying amounts of derivative instruments, including derivative instruments embedded in FIA and IUL contracts, and reinsurance is as follows (in millions): December 31, 2022 December 31, 2021 Assets: Derivative investments: Call options $ 244 $ 816 Other long-term investments: Other embedded derivatives 23 33 Prepaid expenses and other assets: Reinsurance related embedded derivatives 279 — $ 546 $ 849 Liabilities: Contractholder funds: FIA/ IUL embedded derivatives $ 3,115 $ 3,883 Accounts payable and accrued liabilities: Reinsurance related embedded derivatives — 73 $ 3,115 $ 3,956 |
Derivative Instruments, Gain (Loss) | The change in fair value of derivative instruments included within Recognized gains and losses, net, in the accompanying Consolidated Statements of Earnings is as follows (in millions): Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Net investment gains (losses): Predecessor Call options $ (862) $ 597 $ 229 $ (221) Futures contracts (7) 8 15 8 Foreign currency forwards 12 10 (7) 1 Other derivatives and embedded derivatives (10) 5 8 (1) Reinsurance related embedded derivatives 352 34 (53) 19 Total net investment gains (losses) $ (515) $ 654 $ 192 $ (194) Benefits and other changes in policy reserves: FIA/ IUL embedded derivatives (decrease) increase $ (768) $ 479 $ 552 $ 239 |
Schedule of Exposure to Credit Loss on Call Options | Information regarding our exposure to credit loss on the call options we hold is presented in the following table (in millions): December 31, 2022 Counterparty Credit Rating (Fitch/Moody's/S&P) (1) Notional Amount Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 3,563 $ 23 $ — $ 23 Morgan Stanley */Aa3/A+ 1,699 14 19 — Barclay's Bank A+/A1/A 6,049 65 59 6 Canadian Imperial Bank of Commerce AA/Aa2/A+ 5,169 68 64 4 Wells Fargo A+/A1/BBB+ 1,361 17 17 — Goldman Sachs A/A2/BBB+ 1,133 9 10 — Credit Suisse BBB+/A3/A- 1,039 5 5 — Truist A+/A2/A 2,489 35 36 — Citibank A+/Aa3/A+ 795 8 9 — Total $ 23,297 $ 244 $ 219 $ 33 December 31, 2021 Counterparty Credit Rating (Fitch/Moody's/S&P) (1) Notional Amount Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 3,307 $ 128 $ 86 $ 42 Morgan Stanley */Aa3/A+ 2,184 86 92 — Barclay's Bank A+/A1/A 5,197 231 233 — Canadian Imperial Bank of Commerce AA/Aa2/A+ 2,936 147 151 — Wells Fargo A+/A1/BBB+ 2,445 89 90 — Goldman Sachs A/A2/BBB+ 307 10 10 — Credit Suisse A/A1/A+ 1,485 74 75 — Truist A+/A2/A 1,543 51 53 — Total $ 19,404 $ 816 $ 790 $ 42 __________________ (1) An * represents credit ratings that were not available. |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Components of Notes Payable | Notes payable consists of the following: December 31, 2022 December 31, 2021 (In millions) Revolving Credit Facility - Short-term $ 547 $ — 5.50% F&G Notes 567 577 FNF Promissory Note — 400 $ 1,114 $ 977 |
Schedule of Principal Maturities of Notes Payable | Gross principal maturities of notes payable at December 31, 2022 are as follows (in millions): 2023 $ 550 2024 — 2025 550 2026 — 2027 — Thereafter — $ 1,100 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unfunded Commitments | A summary of unfunded commitments by invested asset class as of December 31, 2022 and December 31, 2021 is included below (in millions): December 31, 2022 December 31, 2021 Asset Type Unconsolidated VIEs: Limited partnerships $ 1,603 $ 1,146 Whole loans 419 589 Fixed maturity securities, ABS 201 306 Other fixed maturity securities, AFS 48 119 Commercial mortgage loans 36 44 Other assets 120 156 Residential mortgage loans 2 — Committed amounts included in liabilities 1 — Total $ 2,430 $ 2,360 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities (in millions). Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Cash paid for: Interest paid $ 34 $ 30 $ 30 $ 15 $ 15 Income taxes (refunded) paid (72) 44 2 — Deferred sales inducements 87 90 46 43 Non-cash investing and financing activities: Investments received from pension risk transfer premiums — 316 — — Change in proceeds of sales of investments available for sale receivable in period 115 (160) (3) 5 Change in purchases of investments available for sale payable in period (10) 2 7 (6) |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in the Carrying Amounts of VOBA, DAC and DSI Intangible Assets | A summary of the changes in the carrying amounts of our VOBA, DAC and DSI intangible assets is as follows (in millions): VOBA DAC DSI Total Balance at January 1, 2022 $ 1,185 $ 761 $ 88 $ 2,034 Deferrals — 727 87 814 Amortization (203) (107) (43) (353) Interest 25 30 2 57 Unlocking (5) (4) 5 (4) Adjustment for net unrealized investment losses (gains) 662 182 68 912 Balance at December 31, 2022 $ 1,664 $ 1,589 $ 207 $ 3,460 VOBA DAC DSI Total Balance at January 1, 2021 $ 1,466 $ 222 $ 36 $ 1,724 Purchase price allocation adjustments 61 — — 61 Deferrals — 585 90 675 Amortization (436) (46) (35) (517) Interest 30 13 1 44 Unlocking 13 1 (2) 12 Adjustment for net unrealized investment losses (gains) 51 (14) (2) 35 Balance at December 31, 2021 $ 1,185 $ 761 $ 88 $ 2,034 VOBA DAC DSI Total Balance at June 1, 2020 (a) $ 1,847 $ — $ — $ 1,847 Deferrals — 251 46 297 Amortization (120) (6) (5) (131) Interest 20 2 — 22 Unlocking 2 — — 2 Adjustment for net unrealized investment losses (gains) (283) (25) (5) (313) Balance at December 31, 2020 $ 1,466 $ 222 $ 36 $ 1,724 Predecessor VOBA DAC DSI Total Balance at January 1, 2020 $ 599 $ 641 $ 236 $ 1,476 Deferrals — 184 43 227 Amortization 14 22 10 46 Interest 7 8 2 17 Unlocking (9) (2) — (11) Adjustment for net unrealized investment losses (gains) 141 65 30 236 Balance at May 31, 2020 $ 752 $ 918 $ 321 $ 1,991 (a) As of the June 1, 2020 acquisition of F&G, due to purchase accounting adjustments, our prior intangible assets were valued at $0 and VOBA was re-established at fair value. Other intangible assets as of December 31, 2022 consist of the following (in millions): Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Value of distribution asset (VODA) $ 140 $ (40) $ 100 15 Computer software 82 (21) 61 2 to 10 Definite lived trademarks, tradenames, and other 30 (8) 22 10 Indefinite lived tradenames and other 8 N/A 8 Indefinite Total $ 191 Other intangible assets as of December 31, 2021 consist of the following (in millions): Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Value of distribution asset (VODA) $ 140 $ (25) $ 115 15 Computer software 67 (15) 52 2 to 10 Definite lived trademarks, tradenames and other 30 (5) 25 10 Indefinite lived tradenames and other 8 N/A 8 Indefinite Total $ 200 |
Estimated Amortization Expense for VOBA in Future Fiscal Periods | For the in-force liabilities as of December 31, 2022, the estimated amortization expense for VOBA in future fiscal periods under existing accounting rules is as follows (in millions) (Refer to Note Q Recent Accounting Pronouncements for further discussion of accounting pronouncements not yet adopted that may have a significant impact on future estimated amortization expense upon adoption): Estimated Amortization Expense Fiscal Year 2023 $ (53) 2024 172 2025 151 2026 133 2027 129 Thereafter 702 |
Schedule of Other Intangible Assets, Definite and Indefinite-Lived | Other intangible assets as of December 31, 2022 consist of the following (in millions): Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Value of distribution asset (VODA) $ 140 $ (40) $ 100 15 Computer software 82 (21) 61 2 to 10 Definite lived trademarks, tradenames, and other 30 (8) 22 10 Indefinite lived tradenames and other 8 N/A 8 Indefinite Total $ 191 Other intangible assets as of December 31, 2021 consist of the following (in millions): Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Value of distribution asset (VODA) $ 140 $ (25) $ 115 15 Computer software 67 (15) 52 2 to 10 Definite lived trademarks, tradenames and other 30 (5) 25 10 Indefinite lived tradenames and other 8 N/A 8 Indefinite Total $ 200 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Schedule of Effect of Reinsurance on Premiums Earned and Benefits Incurred and Reserve Changes | The effect of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the years ended December 31, 2022 and December 31, 2021, the period from June 1, 2020 to December 31, 2020 and the Predecessor period January 1, 2020 to May 31, 2020, respectively, were as follows (in millions): Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct $ 1,522 $ 3,671 $ 1,314 $ 3,282 $ 108 $ 976 $ 86 $ 402 Assumed — — — — — 1 — (1) Ceded (128) (2,546) (137) (1,144) (85) (111) (67) (103) Net $ 1,394 $ 1,125 $ 1,177 $ 2,138 $ 23 $ 866 $ 19 $ 298 |
Insurance Subsidiary Financia_2
Insurance Subsidiary Financial Information and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Statutory Accounting Practices Disclosure | Our principal insurance subsidiaries' statutory (SAP and GAAP) financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of our wholly owned U.S. regulated insurance subsidiaries were as follows (in millions): Subsidiary (state of domicile) (a) FGL Insurance (IA) FGL NY Insurance (NY) Raven Re (VT) Statutory Net income (loss): Year ended December 31, 2022 $ (243) $ (15) $ (111) Year ended December 31, 2021 $ 351 $ 4 $ 3 Statutory Capital and Surplus: December 31, 2022 $ 1,877 $ 82 $ 121 December 31, 2021 $ 1,473 $ 99 $ 115 (a) FGL NY Insurance and Raven Re are subsidiaries of FGL Insurance, and the columns should not be added together. Net income and capital and surplus of our wholly owned Bermuda and Cayman regulated insurance subsidiaries under U.S. GAAP were as follows (in millions): Subsidiary (country of domicile) F&G Cayman Re (Cayman) F&G Life Re (Bermuda) Statutory Net income (loss): Year ended December 31, 2022 $ 299 $ 339 Year ended December 31, 2021 $ 99 $ 94 Statutory Capital and Surplus: December 31, 2022 $ 126 $ 138 December 31, 2021 $ 164 $ 206 |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and other accrued liabilities consist of the following: December 31, 2022 2021 (In millions) Salaries and incentives $ 72 $ 60 Accrued benefits 58 74 Deferred revenue 203 35 Trade accounts payable 114 72 Accrued premium taxes 5 3 Liability for policy and contract claims 109 109 Retained asset account 117 148 Remittances and items not allocated 225 39 Option collateral liabilities 178 576 Funds withheld embedded derivative — 73 Other accrued liabilities 193 108 $ 1,273 $ 1,297 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) on Continuing Operations | Income tax expense (benefit) on continuing operations consists of the following (in millions): Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Current $ (31) $ 27 $ 18 $ (1) Deferred 148 193 (93) (13) $ 117 $ 220 $ (75) $ (14) |
Schedule of Components of Income Tax Expense (Benefit) | Total income tax expense (benefit) was allocated as follows: Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Taxes on net earnings (loss) from continuing operations $ 117 $ 220 $ (75) $ (14) Tax expense on net earnings (loss) from discontinued operations — — — — Other comprehensive (loss) earnings: Unrealized (loss) gain on investments and other financial instruments (935) (123) 315 (185) Unrealized gain on foreign currency translation and cash flow hedging (1) (1) 2 — Total income tax (benefit) expense allocated to other comprehensive earnings (936) (124) 317 (185) Total income taxes $ (819) $ 96 $ 242 $ (199) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory rate to our effective tax rate is as follows: Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 0.1 0.4 1.8 (0.4) Benefit for Capital Loss Carryback (4.0) — — Stock compensation — (0.1) 0.1 — Tax credits (1.4) (0.4) (3.2) 0.1 Dividends received deduction (0.6) (0.3) (2.5) 0.4 Benefit on outside of United States income taxed at 0% — — — (1.8) Withholding tax on 0% taxed jurisdiction — — (2.5) (0.3) Valuation allowance for deferred tax assets 4.5 (1.3) (63.5) (12.1) Change in tax status benefit — — (41.0) — Adjustment of DTAs on sale of subsidiary — 1.4 — — Non-deductible expenses and other, net — (0.2) 1.5 (0.4) Effective tax rate 19.6 % 20.5 % (88.3) % 6.5 % |
Schedule of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities consist of the following: December 31, 2022 2021 (In millions) Deferred Tax Assets: Employee benefit accruals $ 21 $ 22 Net operating loss carryforwards 28 16 Accrued liabilities 1 — Tax credits 30 32 Investment securities 853 — Capital loss carryover 8 41 Derivatives 67 — Life insurance and claim related adjustments 669 854 Funds held under reinsurance agreements 37 52 Other 19 12 Total gross deferred tax asset 1,733 1,029 Less: valuation allowance 30 — Total deferred tax asset $ 1,703 $ 1,029 Deferred Tax Liabilities: Amortization of goodwill and intangible assets (29) (33) Other (2) (1) Investment securities — (355) Depreciation (14) (11) Partnerships (93) (126) Value of business acquired (350) (249) Derivatives — (68) Deferred acquisition costs (243) (102) Transition reserve on new reserve method (25) (34) Funds held under reinsurance agreements (183) (74) Total deferred tax liability $ (939) $ (1,053) Net deferred tax asset (liability) $ 764 $ (24) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | F&G restricted stock transactions under the 2022 F&G Omnibus Plan in 2022 are as follows: Shares Weighted Average Grant Date Fair Value Balance, January 1, 2022 — $ — Granted 1,411,369 21.80 Canceled (1,465) 21.80 Vested — — Balance, December 31, 2022 1,409,904 $ 21.80 |
Share-Based Payment Arrangement, Option, Activity | Stock option transactions under the 2020 F&G Omnibus Plan for the years ended December 31, 2022 and 2021 and for the period June 1, 2020 to December 31, 2020, and the FGL Incentive Plan for the Predecessor period January 1, 2020 to May 31, 2020, are as follows: Options Weighted Average Exercise Price Exercisable Predecessor balance, January 1, 2020 15,213,959 $ 9.30 1,008,780 Granted — $ — Exercised (1,672,330) $ 9.51 Canceled (96,604) $ 10.00 Predecessor balance, May 31, 2020 13,445,025 $ 9.30 640,000 FGL options canceled and converted into options to purchase FNF common shares in connection with the F&G acquisition 2,411,585 36.04 Exercised (109,159) 27.64 Canceled (299,736) 38.41 Balance, December 31, 2020 2,002,690 $ 36.14 1,021,671 Exercised (474,754) 36.68 Canceled — — Balance, December 31, 2021 1,527,936 $ 35.97 1,072,584 Granted — $ — Exercised (352,614) $ 38.79 Canceled (2,715) $ 28.00 Balance, December 31, 2022 1,172,607 35.15 1,172,607 |
Share-Based Payment Arrangement, Option, Exercise Price Range | The following table summarizes information related to stock options outstanding and exercisable as of December 31, 2022: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Intrinsic Value Number of Options Weighted Average Remaining Contractual Life Weighted Average Exercise Price Intrinsic Value (In years) (In millions) (In years) (In millions) $0.00 - $27.53 359,510 2.98 27.53 4 359,510 2.98 27.53 4 $27.54 - $28.00 43,019 3.32 28.00 — 43,019 3.32 28.00 — $28.01 - $39.10 770,078 2.62 39.10 — 770,078 2.62 39.10 — 1,172,607 4 1,172,607 4 |
Share-Based Payment Arrangement, Nonvested Award, Cost | Restricted stock transactions under the 2020 F&G Omnibus Plan for the years ended December 31, 2022 and 2021 and for the period June 1, 2020 to December 31, 2020, and the FGL Incentive Plan for the predecessor period January 1, 2020 to May 31, 2020, are as follows: Shares Weighted Average Grant Date Fair Value Predecessor balance, January 1, 2020 — — Granted 95,416 $ 10.48 Canceled — — Predecessor balance, May 31, 2020 95,416 $ 10.48 FGL shares vested in connection with the F&G acquisition (95,416) 10.48 Granted 474,025 34.13 Canceled (24,155) 34.47 Balance, December 31, 2020 449,870 $ 34.11 Granted 311,081 48.28 Canceled (12,437) 33.40 Vested (29,873) 34.59 Balance, December 31, 2021 718,641 $ 40.24 Granted — — Canceled (78,551) 37.79 Vested (138,542) 34.11 Balance, December 31, 2022 501,548 $ 42.31 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share (share amounts in thousands): Year Ended December 31, Period from Period from January 1 to May 31, 2022 2021 2020 2020 Predecessor Net earnings (loss) from continuing operations $ 481 $ 857 $ 161 $ (200) Net earnings (loss) from discontinued operations — 8 (25) (114) Net earnings (loss) $ 481 $ 865 $ 136 $ (314) Less: Preferred stock dividend — — — 8 Net earnings (loss) attributable to common shares $ 481 $ 865 $ 136 $ (322) Weighted-average common shares outstanding - basic 115 105 105 213 Dilutive effect of unvested restricted stock — — — — Dilutive effect of stock options — — — — Weighted-average shares outstanding - diluted 115 105 105 213 Net earnings (loss) per common share: Basic - continuing $ 4.18 $ 8.16 $ 1.54 $ (0.97) Basic - discontinued operations — 0.08 (0.24) (0.54) Basic - net $ 4.18 $ 8.24 $ 1.30 $ (1.51) Diluted - continuing 4.18 8.16 1.54 (0.97) Diluted - discontinued operations — 0.08 (0.24) (0.54) Diluted - net $ 4.18 $ 8.24 $ 1.30 $ (1.51) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | A summary of the major components of discontinued operations reported in the Consolidated Statements of Earnings are as follows: Year Ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2021 2020 2020 Predecessor Revenues: Life insurance premiums and other fees $ — $ — $ 1 Interest and investment income 3 42 24 Recognized gains and (losses), net — 196 (95) Total revenues 3 238 (70) Expenses: Other operating expenses — 19 (41) Benefits and other changes in policy reserves (5) 244 (5) Other expenses — — 2 Total expenses (5) 263 (44) Earnings (loss) from discontinued operations before income taxes 8 (25) (114) Income tax (expense) benefit — — — Net earnings (loss) from discontinued operations, net of tax $ 8 $ (25) $ (114) Cash flow from discontinued operations data: — — Net cash provided by (used in) operating activities (26) 121 (39) |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Supplemental Condensed Balance Sheet | Schedule II F&G ANNUITIES & LIFE, INC. (Parent Only) CONDENSED FINANCIAL INFORMATION OF PARENT ONLY SUPPLEMENTAL CONDENSED BALANCE SHEET (In millions) December 31, 2022 December 31, 2021 Assets Investments in consolidated subsidiaries $ 2,217 $ 4,777 Fixed maturity securities, available for sale 54 72 Cash and cash equivalents 52 3 Prepaid expenses and other assets 5 — Notes receivable 1 1 Deferred tax assets — 35 Income taxes receivable 60 — Total assets $ 2,389 $ 4,888 Liabilities and Equity Accounts payable and other liabilities 24 3 Intercompany payables 3 — Notes payable 546 400 Total liabilities $ 573 $ 403 Equity: F&G common stock, $0.001 par value; authorized 500,000,000 shares as of December 31, 2022 and December 31, 2021; outstanding of 126,409,904 and 105,000,000 as of December 31, 2022 and December 31, 2021, respectively, and issued of 126,409,904 and 105,000,000 as of December 31, 2022 and December 31, 2021, respectively — — Additional paid-in-capital 3,162 2,750 Retained earnings 1,457 1,001 Accumulated other comprehensive income (loss) (2,803) 734 Total equity 1,816 4,485 Total liabilities and equity $ 2,389 $ 4,888 |
Supplemental Condensed Income Statement | Schedule II (continued) F&G ANNUITIES & LIFE, INC. (Parent Only) CONDENSED FINANCIAL INFORMATION OF PARENT ONLY SUPPLEMENTAL CONDENSED INCOME STATEMENT (In millions) Year ended December 31, Year ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Revenues: Predecessor Interest and investment income $ 3 $ — $ — $ — Total revenues 3 — — — Expenses: Other operating expenses — — — 11 Interest expense 7 3 — — Total expenses 7 3 — 11 Earnings (losses) before income tax expense and equity in earnings of subsidiaries (4) (3) — (11) Income tax expense 24 — 35 — Earnings (losses) before equity in earnings of subsidiaries 20 (3) 35 (11) Equity in earnings (losses) of subsidiaries 461 868 101 (303) Net earnings (losses) $ 481 $ 865 136 (314) |
Supplemental Condensed Cash Flow Statement | Schedule II (continued) F&G ANNUITIES & LIFE, INC. (Parent Only) CONDENSED FINANCIAL INFORMATION OF PARENT ONLY SUPPLEMENTAL CONDENSED CASH FLOW STATEMENT (In millions) Year ended December 31, Year ended December 31, Period from June 1 to December 31, Period from January 1 to May 31, 2022 2021 2020 2020 Cash flows from operating activities Predecessor Net earnings (loss) $ 481 $ 865 $ 136 $ (314) Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: Gain (loss) on sales of investments 1 — — — Equity in earnings of subsidiaries (461) (868) (101) 303 Net change in income taxes (25) — (35) — Stock-based compensation 12 9 4 3 Net (increase) decrease in other assets and other liabilities (9) (3) (5) (6) Net cash provided by (used in) operating activities (1) 3 (1) (14) Cash flows from investing activities: Proceeds from sales, calls and maturities of investment securities 4 — — — Net cash provided by (used in) investing activities 4 — — — Cash flows from financing activities: Borrowings 550 — — — Debt issuance costs (4) — — — Exercise of stock options — — — 10 Capital contributions (500) — — — Net cash provided by (used in) financing activities 46 — — 10 Net change in cash and cash equivalents 49 3 (1) (4) Cash and cash equivalents at beginning of year 3 — 1 5 Cash and cash equivalents at end of year $ 52 $ 3 $ — $ 1 |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Description of Business (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Aug. 26, 2020 USD ($) shares | Jun. 01, 2020 USD ($) $ / shares shares | Dec. 31, 2022 insuranceAgent | Dec. 01, 2022 | |
Class of Stock [Line Items] | ||||
Number of reporting segments | insuranceAgent | 1 | |||
FGL Holdings | ||||
Class of Stock [Line Items] | ||||
Outstanding equity acquired, percentage | 100% | |||
Consideration transferred | $ | $ 2,700 | |||
Shares issued for acquisition | shares | 1 | 24 | ||
Payments to acquire businesses, gross | $ | $ 100 | $ 1,800 | ||
Shares issued per warrant at exercise (in shares) | $ / shares | $ 0.0833 | |||
Cash paid per warrant at exercise (in usd per share) | $ / shares | $ 8.18 | |||
Shares converted, common and preferred (in shares) | shares | 7 | |||
F&G | Fidelity National Financial, Inc. | ||||
Class of Stock [Line Items] | ||||
Distribution to shareholders, pro rata percentage of common stock | 15% | |||
Ownership percentage retained by parent | 85% |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Recent Developments (Details) | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 21, 2023 USD ($) | Jan. 31, 2023 USD ($) | Dec. 08, 2022 $ / shares | Jun. 24, 2022 USD ($) shares | Feb. 21, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Jan. 13, 2023 USD ($) | Dec. 01, 2022 | Nov. 22, 2022 USD ($) | Jun. 23, 2022 shares | Sep. 15, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||
Dividends declared (in usd per share) | $ / shares | $ 0.20 | |||||||||||||
Credit facility outstanding | $ 1,114,000,000 | $ 977,000,000 | ||||||||||||
Stock split, conversion ratio | 105,000 | |||||||||||||
Stock issued for each share of common stock (in shares) | shares | 104,999 | |||||||||||||
Common stock, shares authorized (in shares) | shares | 500,000,000 | 500,000,000 | 500,000,000 | 1,000 | ||||||||||
Revolving Credit Facility | Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest expense | $ 1,000,000 | |||||||||||||
F&G | Fidelity National Financial, Inc. | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Distribution to shareholders, pro rata percentage of common stock | 15% | |||||||||||||
Subsequent Event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Dividends common stock, aggregate annual amount | $ 100,000,000 | |||||||||||||
7.40% Senior Notes Due 2028 | Subsequent Event | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate, stated percentage | 7.40% | |||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||
F&G Credit Agreement | Revolving Credit Facility | Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit facility, maximum borrowing capacity | $ 550,000,000 | |||||||||||||
Credit facility outstanding | 550,000,000 | |||||||||||||
F&G Credit Agreement | Subsequent Event | Revolving Credit Facility | Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Credit facility, maximum borrowing capacity | $ 665,000,000 | $ 665,000,000 | ||||||||||||
Partial repayment of debt | $ 35,000,000 | |||||||||||||
Credit facility, increase in principal amount | $ 115,000,000 | |||||||||||||
FNF Promissory Note | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 400,000,000 | |||||||||||||
Credit facility outstanding | 0 | $ 400,000,000 | ||||||||||||
Debt conversion, converted note, amount | $ 400,000,000 | |||||||||||||
Gain (loss) on exchange agreement | $ 0 | |||||||||||||
Interest expense | $ 6,000,000 | $ 3,000,000 | $ 6,000,000 | $ 3,000,000 |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Intangible Assets and Property and Equipment (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Impairment expense | $ 0 | $ 0 | $ 14,000,000 | $ 0 |
Maximum | Building | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, estimated useful lives (years) | thirty years | |||
Maximum | Furniture, Fixtures and Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, estimated useful lives (years) | twenty-five | |||
Minimum | Building | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, estimated useful lives (years) | twenty | |||
Minimum | Furniture, Fixtures and Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, estimated useful lives (years) | zero | |||
Customer Relationships | ||||
Property, Plant and Equipment [Line Items] | ||||
Finite-lived intangible asset, useful life (years) | 10 years | |||
Definite lived trademarks, tradenames, and other | ||||
Property, Plant and Equipment [Line Items] | ||||
Finite-lived intangible asset, useful life (years) | 10 years |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - Contract Holder Funds and Future Policy Benefits (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Ceded Credit Risk [Line Items] | ||
FABN Program, amount outstanding | $ 2,200 | $ 1,900 |
Funds withheld for reinsurance liabilities | 3,703 | 1,676 |
FHLB collateral pledged | $ 3,387 | $ 2,469 |
Life and Annuity Insurance Product Line | Minimum | ||
Ceded Credit Risk [Line Items] | ||
Investment yield assumption | 4.30% | 4.30% |
Life Contingent Payout Annuity | ||
Ceded Credit Risk [Line Items] | ||
Investment yield assumption | 4.10% | 4.10% |
Pension Risk Transfer Annuities | Minimum | ||
Ceded Credit Risk [Line Items] | ||
Investment yield assumption | 3.60% | 3.60% |
Pension Risk Transfer Annuities | Maximum | ||
Ceded Credit Risk [Line Items] | ||
Investment yield assumption | 6.90% | 6.90% |
Federal Home Loan Bank of Atlanta | ||
Ceded Credit Risk [Line Items] | ||
Funds withheld for reinsurance liabilities | $ 1,982 | $ 1,543 |
Business and Summary of Signi_8
Business and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2020 |
Disaggregation of Revenue [Line Items] | ||||
Premium and annuity deposits, net of reinsurance | $ 8,342 | $ 8,285 | $ 2,849 | $ 1,817 |
Fixed indexed annuities | ||||
Disaggregation of Revenue [Line Items] | ||||
Premium and annuity deposits, net of reinsurance | 4,483 | 4,420 | 1,966 | 1,469 |
Fixed rate annuities | ||||
Disaggregation of Revenue [Line Items] | ||||
Premium and annuity deposits, net of reinsurance | 1,522 | 878 | 631 | 146 |
Funding agreements (FABN/FHLB) | ||||
Disaggregation of Revenue [Line Items] | ||||
Premium and annuity deposits, net of reinsurance | 1,891 | 2,658 | 100 | 100 |
Life insurance and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Premium and annuity deposits, net of reinsurance | $ 446 | $ 329 | $ 152 | $ 102 |
Business and Summary of Signi_9
Business and Summary of Significant Accounting Policies - Benefits and Other Changes in Policy Reserves (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fixed indexed annuities | Minimum | ||
Ceded Credit Risk [Line Items] | ||
Interest crediting rates for funds invested in account of subsidiaries | 0.50% | |
Fixed indexed annuities | Maximum | ||
Ceded Credit Risk [Line Items] | ||
Interest crediting rates for funds invested in account of subsidiaries | 6% | |
IULs | Minimum | ||
Ceded Credit Risk [Line Items] | ||
Interest crediting rates for funds invested in account of subsidiaries | 3% | |
IULs | Maximum | ||
Ceded Credit Risk [Line Items] | ||
Interest crediting rates for funds invested in account of subsidiaries | 4.80% | |
Funding agreements | Minimum | ||
Ceded Credit Risk [Line Items] | ||
Interest crediting rates for funds invested in account of subsidiaries | 0.80% | 0.20% |
Funding agreements | Maximum | ||
Ceded Credit Risk [Line Items] | ||
Interest crediting rates for funds invested in account of subsidiaries | 5.15% | 5% |
Business and Summary of Sign_10
Business and Summary of Significant Accounting Policies - Earnings Per Share (Details) | Jun. 24, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Stock split, conversion ratio | 105,000 |
Business and Summary of Sign_11
Business and Summary of Significant Accounting Policies - Management Estimates (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Jun. 01, 2020 | May 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||||
Future policy benefits | $ 5,923 | $ 4,732 | |||||
Intangibles assets | 3,460 | $ 2,034 | $ 1,724 | $ 1,847 | $ 1,991 | $ 1,476 | |
Change in Accounting Method Accounted for as Change in Estimate | |||||||
Business Acquisition [Line Items] | |||||||
Future policy benefits | 97 | $ (425) | |||||
Intangibles assets | $ 47 | (136) | |||||
Liability for guaranteed minimum withdrawal benefit | $ 28 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Amounts of Assets and Liabilities at Estimated Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Fixed maturity securities available-for-sale | $ 31,218 | $ 29,962 |
Derivative investments | 244 | 816 |
Total financial assets at fair value | 8,145 | 5,576 |
Derivatives: | ||
Total financial liabilities at fair value | 0 | |
Fair Value | ||
Assets | ||
Cash and cash equivalents | 960 | 1,533 |
Equity and preferred securities | 1,028 | |
Derivative investments | 244 | 816 |
Short term investments | 1,556 | 373 |
Total financial assets at fair value | 35,151 | 33,933 |
Derivatives: | ||
Total financial liabilities at fair value | 3,115 | 3,956 |
Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 960 | 1,533 |
Equity and preferred securities | 1,028 | |
Derivative investments | 244 | 816 |
Short term investments | 1,556 | 373 |
Total financial assets at fair value | 35,151 | 33,933 |
Derivatives: | ||
Total financial liabilities at fair value | 3,115 | 3,956 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | 960 | 1,533 |
Equity and preferred securities | 407 | |
Derivative investments | 0 | 0 |
Short term investments | 1,556 | 50 |
Total financial assets at fair value | 2,943 | 2,267 |
Derivatives: | ||
Total financial liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Equity and preferred securities | 620 | |
Derivative investments | 244 | 816 |
Short term investments | 0 | 2 |
Total financial assets at fair value | 24,016 | 26,042 |
Derivatives: | ||
Total financial liabilities at fair value | 0 | 73 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Equity and preferred securities | 1 | |
Derivative investments | 0 | 0 |
Short term investments | 0 | 321 |
Total financial assets at fair value | 8,145 | 5,576 |
Derivatives: | ||
Total financial liabilities at fair value | 3,115 | 3,883 |
NAV | ||
Assets | ||
Total financial assets at fair value | 47 | 48 |
Reinsurance related embedded derivative, included in other assets | Fair Value | ||
Assets | ||
Derivative investments | 279 | |
Reinsurance related embedded derivative, included in other assets | Carrying Amount | ||
Assets | ||
Derivative investments | 279 | |
Reinsurance related embedded derivative, included in other assets | Level 1 | ||
Assets | ||
Derivative investments | 0 | |
Reinsurance related embedded derivative, included in other assets | Level 2 | ||
Assets | ||
Derivative investments | 279 | |
Reinsurance related embedded derivative, included in other assets | Level 3 | ||
Assets | ||
Derivative investments | 0 | |
FIA/ IUL embedded derivatives | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 0 | |
FIA/ IUL embedded derivatives | Fair Value | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 3,115 | 3,883 |
FIA/ IUL embedded derivatives | Carrying Amount | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 3,115 | 3,883 |
FIA/ IUL embedded derivatives | Level 1 | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 0 | 0 |
FIA/ IUL embedded derivatives | Level 2 | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 0 | 0 |
FIA/ IUL embedded derivatives | Level 3 | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 3,115 | 3,883 |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Fair Value | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 73 | |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Carrying Amount | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 73 | |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 1 | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 0 | |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 2 | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 73 | |
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities | Level 3 | ||
Derivatives: | ||
FIA/ IUL embedded derivatives, included in contractholder funds | 0 | |
Asset-backed securities | ||
Assets | ||
Fixed maturity securities available-for-sale | 11,467 | 8,695 |
Asset-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities available-for-sale | 11,467 | 8,695 |
Asset-backed securities | Carrying Amount | ||
Assets | ||
Fixed maturity securities available-for-sale | 11,467 | 8,695 |
Asset-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Asset-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities available-for-sale | 5,204 | 4,736 |
Asset-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities available-for-sale | 6,263 | 3,959 |
Commercial mortgage-backed securities | ||
Assets | ||
Fixed maturity securities available-for-sale | 3,036 | 2,964 |
Commercial mortgage-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities available-for-sale | 3,036 | 2,964 |
Commercial mortgage-backed securities | Carrying Amount | ||
Assets | ||
Fixed maturity securities available-for-sale | 3,036 | 2,964 |
Commercial mortgage-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities available-for-sale | 2,999 | 2,929 |
Commercial mortgage-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities available-for-sale | 37 | 35 |
Corporates | ||
Assets | ||
Fixed maturity securities available-for-sale | 12,899 | 15,004 |
Corporates | Fair Value | ||
Assets | ||
Fixed maturity securities available-for-sale | 12,899 | 15,004 |
Corporates | Carrying Amount | ||
Assets | ||
Fixed maturity securities available-for-sale | 12,899 | 15,004 |
Corporates | Level 1 | ||
Assets | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Corporates | Level 2 | ||
Assets | ||
Fixed maturity securities available-for-sale | 11,472 | 13,883 |
Corporates | Level 3 | ||
Assets | ||
Fixed maturity securities available-for-sale | 1,427 | 1,121 |
Hybrids | ||
Assets | ||
Fixed maturity securities available-for-sale | 705 | 881 |
Hybrids | Fair Value | ||
Assets | ||
Fixed maturity securities available-for-sale | 705 | 881 |
Hybrids | Carrying Amount | ||
Assets | ||
Fixed maturity securities available-for-sale | 705 | 881 |
Hybrids | Level 1 | ||
Assets | ||
Fixed maturity securities available-for-sale | 93 | 132 |
Hybrids | Level 2 | ||
Assets | ||
Fixed maturity securities available-for-sale | 612 | 749 |
Hybrids | Level 3 | ||
Assets | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Municipals | Fair Value | ||
Assets | ||
Fixed maturity securities available-for-sale | 1,410 | 1,441 |
Municipals | Carrying Amount | ||
Assets | ||
Fixed maturity securities available-for-sale | 1,410 | 1,441 |
Municipals | Level 1 | ||
Assets | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Municipals | Level 2 | ||
Assets | ||
Fixed maturity securities available-for-sale | 1,381 | 1,398 |
Municipals | Level 3 | ||
Assets | ||
Fixed maturity securities available-for-sale | 29 | 43 |
Residential mortgage-backed securities | ||
Assets | ||
Fixed maturity securities available-for-sale | 1,521 | 722 |
Residential mortgage-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities available-for-sale | 1,521 | 722 |
Residential mortgage-backed securities | Carrying Amount | ||
Assets | ||
Fixed maturity securities available-for-sale | 1,521 | 722 |
Residential mortgage-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities available-for-sale | 1,219 | 722 |
Residential mortgage-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities available-for-sale | 302 | 0 |
U.S. Government | ||
Assets | ||
Fixed maturity securities available-for-sale | 32 | 50 |
U.S. Government | Fair Value | ||
Assets | ||
Fixed maturity securities available-for-sale | 32 | 50 |
U.S. Government | Carrying Amount | ||
Assets | ||
Fixed maturity securities available-for-sale | 32 | 50 |
U.S. Government | Level 1 | ||
Assets | ||
Fixed maturity securities available-for-sale | 32 | 50 |
U.S. Government | Level 2 | ||
Assets | ||
Fixed maturity securities available-for-sale | 0 | 0 |
U.S. Government | Level 3 | ||
Assets | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Foreign Governments | ||
Assets | ||
Fixed maturity securities available-for-sale | 148 | 205 |
Foreign Governments | Fair Value | ||
Assets | ||
Fixed maturity securities available-for-sale | 148 | 205 |
Foreign Governments | Carrying Amount | ||
Assets | ||
Fixed maturity securities available-for-sale | 148 | 205 |
Foreign Governments | Level 1 | ||
Assets | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Foreign Governments | Level 2 | ||
Assets | ||
Fixed maturity securities available-for-sale | 132 | 187 |
Foreign Governments | Level 3 | ||
Assets | ||
Fixed maturity securities available-for-sale | 16 | 18 |
Preferred securities | ||
Assets | ||
Equity and preferred securities | 722 | 1,028 |
Preferred securities | Fair Value | ||
Assets | ||
Equity and preferred securities | 722 | |
Preferred securities | Carrying Amount | ||
Assets | ||
Equity and preferred securities | 722 | |
Preferred securities | Level 1 | ||
Assets | ||
Equity and preferred securities | 248 | |
Preferred securities | Level 2 | ||
Assets | ||
Equity and preferred securities | 474 | |
Preferred securities | Level 3 | ||
Assets | ||
Equity and preferred securities | 0 | |
Equity securities | Fair Value | ||
Assets | ||
Equity and preferred securities | 101 | 143 |
Equity securities | Carrying Amount | ||
Assets | ||
Equity and preferred securities | 101 | 143 |
Equity securities | Level 1 | ||
Assets | ||
Equity and preferred securities | 54 | 95 |
Equity securities | Level 2 | ||
Assets | ||
Equity and preferred securities | 0 | 0 |
Equity securities | Level 3 | ||
Assets | ||
Equity and preferred securities | 0 | 0 |
Equity securities | NAV | ||
Assets | ||
Equity and preferred securities | 47 | 48 |
Other long-term investments | Fair Value | ||
Assets | ||
Other long-term investments | 71 | 78 |
Other long-term investments | Carrying Amount | ||
Assets | ||
Other long-term investments | 71 | 78 |
Other long-term investments | Level 1 | ||
Assets | ||
Other long-term investments | 0 | 0 |
Other long-term investments | Level 2 | ||
Assets | ||
Other long-term investments | 0 | 0 |
Other long-term investments | Level 3 | ||
Assets | ||
Other long-term investments | $ 71 | $ 78 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | Dec. 31, 2022 $ / Contract | Dec. 31, 2021 USD ($) | Jun. 01, 2020 USD ($) |
Fidelity National Financial, Inc. | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Promissory note | $ 400 | ||
Senior Notes Due 2025 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Aggregate principal amount | $ 550 | ||
Interest rate, stated percentage | 5.50% | ||
Other long-term investments | Income-Approach | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, strike price | $ / Contract | 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantitative Information Regarding Significant Unobservable Inputs Used for Recurring Level 3 Fair Value Measurements of Financial Instruments (Details) $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 8,145 | $ 5,576 |
Liabilities, fair value | 3,115 | 3,883 |
Discounted cash flow | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 3,115 | $ 3,883 |
Minimum | Discounted cash flow | Market value of option | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0 | 0 |
Minimum | Discounted cash flow | Swap rates | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0388 | 0.0005 |
Minimum | Discounted cash flow | Mortality multiplier | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
Minimum | Discounted cash flow | Surrender rates | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0025 | 0.0025 |
Minimum | Discounted cash flow | Partial withdrawals | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0200 | 0.0200 |
Minimum | Discounted cash flow | Non-performance spread | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0048 | 0.0043 |
Minimum | Discounted cash flow | Option cost | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0007 | 0.0007 |
Maximum | Discounted cash flow | Market value of option | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.2390 | 0.3872 |
Maximum | Discounted cash flow | Swap rates | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0473 | 0.0194 |
Maximum | Discounted cash flow | Mortality multiplier | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
Maximum | Discounted cash flow | Surrender rates | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.7000 | 0.7000 |
Maximum | Discounted cash flow | Partial withdrawals | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.2941 | 0.2326 |
Maximum | Discounted cash flow | Non-performance spread | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0144 | 0.0101 |
Maximum | Discounted cash flow | Option cost | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0497 | 0.0497 |
Weighted Average | Discounted cash flow | Market value of option | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0087 | (0.0316) |
Weighted Average | Discounted cash flow | Swap rates | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0431 | (0.0100) |
Weighted Average | Discounted cash flow | Mortality multiplier | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | (1) |
Weighted Average | Discounted cash flow | Surrender rates | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0657 | (0.0626) |
Weighted Average | Discounted cash flow | Partial withdrawals | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0273 | (0.0272) |
Weighted Average | Discounted cash flow | Non-performance spread | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0130 | (0.0068) |
Weighted Average | Discounted cash flow | Option cost | FIA/ IUL embedded derivatives | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0189 | (0.0183) |
Asset-backed securities | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 5,916 | $ 3,844 |
Asset-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 347 | $ 115 |
Asset-backed securities | Minimum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.5285 | 0.5256 |
Asset-backed securities | Minimum | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.4143 | 0.9302 |
Asset-backed securities | Maximum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.1717 | 2.6070 |
Asset-backed securities | Maximum | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 2.1050 | 1.0845 |
Asset-backed securities | Weighted Average | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9418 | (0.9706) |
Asset-backed securities | Weighted Average | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.6799 | (1.0495) |
Commercial mortgage-backed securities | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 20 | $ 24 |
Commercial mortgage-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 17 | $ 11 |
Commercial mortgage-backed securities | Minimum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0902 | 1.2670 |
Commercial mortgage-backed securities | Minimum | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.8274 | 0.9791 |
Commercial mortgage-backed securities | Maximum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0902 | 1.2670 |
Commercial mortgage-backed securities | Maximum | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.7466 | 0.9791 |
Commercial mortgage-backed securities | Weighted Average | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0902 | (1.2670) |
Commercial mortgage-backed securities | Weighted Average | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.8848 | (0.9791) |
Corporates | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 602 | $ 380 |
Corporates | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 825 | $ 741 |
Corporates | Minimum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.7916 | 0 |
Corporates | Minimum | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0 | 0.8571 |
Corporates | Maximum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0253 | 1.0969 |
Corporates | Maximum | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0496 | 1.1957 |
Corporates | Weighted Average | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9416 | (1.0091) |
Corporates | Weighted Average | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.8969 | (1.0772) |
Municipals | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 29 | $ 43 |
Municipals | Minimum | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9395 | 1.3509 |
Municipals | Maximum | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9395 | 1.3509 |
Municipals | Weighted Average | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9395 | (1.3509) |
Residential mortgage-backed securities | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 302 | |
Residential mortgage-backed securities | Minimum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0 | |
Residential mortgage-backed securities | Maximum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9104 | |
Residential mortgage-backed securities | Weighted Average | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.8638 | |
Foreign governments | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 16 | $ 18 |
Foreign governments | Minimum | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9978 | 1.0723 |
Foreign governments | Maximum | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0229 | 1.1644 |
Foreign governments | Weighted Average | Third-Party Valuation | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0056 | (1.1011) |
Short-term | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 321 | |
Short-term | Minimum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short-term | 1 | |
Short-term | Maximum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short-term | 1 | |
Short-term | Weighted Average | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short-term | (1) | |
Preferred securities | Income-Approach | Affiliated Entity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1 | |
Preferred securities | Income-Approach | Measurement Input, Yield | Affiliated Entity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Preferred securities | 0.0243 | |
Available-for-sale embedded derivative | Black Scholes model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 23 | $ 34 |
Available-for-sale embedded derivative | Black Scholes model | Market value of fund | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative asset | 1 | 1 |
Secured borrowing receivable | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 10 | |
Secured borrowing receivable | Minimum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Secured borrowing receivable | 1 | |
Secured borrowing receivable | Maximum | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Secured borrowing receivable | 1 | |
Secured borrowing receivable | Weighted Average | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Secured borrowing receivable | 1 | |
Credit linked note | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 15 | $ 23 |
Credit linked note | Broker-quoted/Market Comparable | Offered quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit linked note | 0.9623 | |
Credit linked note | Broker-quoted/Market Comparable | Offered quotes | Affiliated Entity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit linked note | 1 | |
Investment in affiliate | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 23 | $ 21 |
Investment in affiliate | Minimum | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in affiliate | 5 | 8 |
Investment in affiliate | Maximum | EBITDA multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in affiliate | 5.5 | 8 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Changes to Fair Value of Financial Instruments Level 3 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | $ 5,576 | $ 3,248 |
Assets, Total Gains (Losses) Included in Earnings | (17) | 13 |
Assets, Total Gains (Losses) Included in AOCI | (602) | (48) |
Assets, Purchases | 4,315 | 4,438 |
Assets, Sales | (61) | (106) |
Assets, Settlements | (760) | (1,449) |
Assets, Net transfer In (Out) of Level 3 | (306) | (520) |
Balance at End of Period | 8,145 | 5,576 |
Change in Unrealized Included in OCI | (632) | 59 |
Liabilities: | ||
Balance at Beginning of Period | 3,883 | 3,409 |
Liabilities, Total Gains (Losses) Included in Earnings | (1,382) | 121 |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 |
Liabilities, Purchases | 768 | 513 |
Liabilities, Sales | 0 | (4) |
Liabilities, Settlements | (154) | (156) |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | $ 3,115 | 3,883 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Recognized gains and (losses), net | |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other comprehensive earnings - unrealized gain on investments and other financial instruments | |
Change in Unrealized Included in OCI | $ 0 | 0 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Recognized gains and (losses), net | |
Future policy benefits | ||
Liabilities: | ||
Balance at Beginning of Period | $ 0 | 5 |
Liabilities, Total Gains (Losses) Included in Earnings | 0 | |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | |
Liabilities, Purchases | 0 | |
Liabilities, Sales | (4) | |
Liabilities, Settlements | (1) | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 0 | |
Change in Unrealized Included in OCI | 0 | |
FIA/ IUL embedded derivatives | ||
Liabilities: | ||
Balance at Beginning of Period | 3,883 | 3,404 |
Liabilities, Total Gains (Losses) Included in Earnings | (1,382) | 121 |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 |
Liabilities, Purchases | 768 | 513 |
Liabilities, Sales | 0 | 0 |
Liabilities, Settlements | (154) | (155) |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 3,115 | 3,883 |
Change in Unrealized Included in OCI | 0 | 0 |
Asset-backed securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 3,959 | 1,350 |
Assets, Total Gains (Losses) Included in Earnings | (6) | (1) |
Assets, Total Gains (Losses) Included in AOCI | (393) | (8) |
Assets, Purchases | 3,269 | 3,417 |
Assets, Sales | (39) | (97) |
Assets, Settlements | (541) | (595) |
Assets, Net transfer In (Out) of Level 3 | 14 | (107) |
Balance at End of Period | 6,263 | 3,959 |
Change in Unrealized Included in OCI | (426) | 4 |
Commercial mortgage-backed securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 35 | 26 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | (5) | (3) |
Assets, Purchases | 0 | 12 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 7 | 0 |
Balance at End of Period | 37 | 35 |
Change in Unrealized Included in OCI | (4) | 1 |
Corporates | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 1,121 | 1,274 |
Assets, Total Gains (Losses) Included in Earnings | 1 | 8 |
Assets, Total Gains (Losses) Included in AOCI | (187) | (40) |
Assets, Purchases | 710 | 154 |
Assets, Sales | (20) | (9) |
Assets, Settlements | (215) | (247) |
Assets, Net transfer In (Out) of Level 3 | 17 | (19) |
Balance at End of Period | 1,427 | 1,121 |
Change in Unrealized Included in OCI | (188) | 23 |
Hybrids | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 0 | 4 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | (4) |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 0 | 0 |
Change in Unrealized Included in OCI | 0 | 0 |
Municipals | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 43 | 43 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | (14) | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 29 | 43 |
Change in Unrealized Included in OCI | (13) | 7 |
Residential mortgage-backed securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 0 | 483 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | (1) |
Assets, Purchases | 316 | 14 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | (102) |
Assets, Net transfer In (Out) of Level 3 | (14) | (394) |
Balance at End of Period | 302 | 0 |
Change in Unrealized Included in OCI | 0 | 22 |
Foreign Governments | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 18 | 17 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | (2) | 1 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 16 | 18 |
Change in Unrealized Included in OCI | (1) | 2 |
Short-term | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 321 | 0 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | (1) | 2 |
Assets, Purchases | 20 | 820 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | (501) |
Assets, Net transfer In (Out) of Level 3 | (340) | 0 |
Balance at End of Period | 0 | 321 |
Change in Unrealized Included in OCI | (1) | 0 |
Preferred securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 1 | 1 |
Assets, Total Gains (Losses) Included in Earnings | 0 | (1) |
Assets, Total Gains (Losses) Included in AOCI | (1) | 1 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 0 | 1 |
Change in Unrealized Included in OCI | (1) | 0 |
Equity securities | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 0 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 0 | 0 |
Change in Unrealized Included in OCI | 0 | |
Available-for-sale embedded derivative | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 34 | 27 |
Assets, Total Gains (Losses) Included in Earnings | (11) | 7 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 23 | 34 |
Change in Unrealized Included in OCI | 0 | 0 |
Investment in affiliate | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 21 | 0 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 2 | 0 |
Assets, Purchases | 0 | 21 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 23 | 21 |
Change in Unrealized Included in OCI | 2 | 0 |
Credit linked note | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 23 | 23 |
Assets, Total Gains (Losses) Included in Earnings | (1) | 0 |
Assets, Total Gains (Losses) Included in AOCI | (1) | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | (2) | 0 |
Assets, Settlements | (4) | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 15 | 23 |
Change in Unrealized Included in OCI | 0 | 0 |
Secured borrowing receivable | ||
Fixed maturity securities available-for-sale: | ||
Balance at Beginning of Period | 0 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 10 | |
Balance at End of Period | 10 | $ 0 |
Change in Unrealized Included in OCI | $ 0 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Total Estimated Fair Value | ||
Assets: | ||
FHLB common stock | $ 99 | $ 72 |
Commercial mortgage loans | 2,083 | 2,265 |
Residential mortgage loans | 1,892 | 1,549 |
Investments in unconsolidated affiliates | 2,427 | 2,350 |
Policy loans | 52 | 39 |
Other invested assets | 15 | |
Company-owned life insurance | 328 | 299 |
Total | 6,896 | 6,574 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 34,464 | 27,448 |
Debt | 1,092 | 1,027 |
Total | 35,556 | 28,475 |
Carrying Amount | ||
Assets: | ||
FHLB common stock | 99 | 72 |
Commercial mortgage loans | 2,406 | 2,168 |
Residential mortgage loans | 2,148 | 1,581 |
Investments in unconsolidated affiliates | 2,427 | 2,350 |
Policy loans | 52 | 39 |
Other invested assets | 15 | |
Company-owned life insurance | 328 | 299 |
Total | 7,475 | 6,509 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 38,412 | 31,529 |
Debt | 1,114 | 977 |
Total | 39,526 | 32,506 |
Level 1 | ||
Assets: | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Investments in unconsolidated affiliates | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | |
Company-owned life insurance | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets: | ||
FHLB common stock | 99 | 72 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Investments in unconsolidated affiliates | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | |
Company-owned life insurance | 0 | 0 |
Total | 99 | 72 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 1,092 | 615 |
Total | 1,092 | 615 |
Level 3 | ||
Assets: | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 2,083 | 2,265 |
Residential mortgage loans | 1,892 | 1,549 |
Investments in unconsolidated affiliates | 0 | 0 |
Policy loans | 52 | 39 |
Other invested assets | 15 | |
Company-owned life insurance | 328 | 299 |
Total | 4,370 | 4,152 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 34,464 | 27,448 |
Debt | 0 | 412 |
Total | 34,464 | 27,860 |
NAV | ||
Assets: | ||
Investments in unconsolidated affiliates | 2,427 | 2,350 |
Total | $ 2,427 | $ 2,350 |
Investments - Consolidated Inve
Investments - Consolidated Investments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 01, 2020 | May 31, 2020 | Dec. 31, 2019 |
Available-for-sale securities | ||||||
Amortized Cost | $ 35,723 | $ 28,724 | ||||
Allowance for Expected Credit Losses | (31) | (8) | $ (10) | $ 0 | $ (15) | $ 0 |
Gross Unrealized Gains | 96 | 1,462 | ||||
Gross Unrealized Losses | (4,570) | (216) | ||||
Fair Value/Carrying Value | 31,218 | 29,962 | ||||
Asset-backed securities | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 12,209 | 8,516 | ||||
Allowance for Expected Credit Losses | (8) | (3) | 0 | 0 | (5) | 0 |
Gross Unrealized Gains | 36 | 220 | ||||
Gross Unrealized Losses | (770) | (38) | ||||
Fair Value/Carrying Value | 11,467 | 8,695 | ||||
Commercial mortgage-backed securities | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 3,309 | 2,669 | ||||
Allowance for Expected Credit Losses | (1) | (2) | 0 | |||
Gross Unrealized Gains | 12 | 308 | ||||
Gross Unrealized Losses | (284) | (11) | ||||
Fair Value/Carrying Value | 3,036 | 2,964 | ||||
Corporates | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 15,879 | 14,372 | ||||
Allowance for Expected Credit Losses | (15) | 0 | (7) | 0 | (7) | 0 |
Gross Unrealized Gains | 30 | 784 | ||||
Gross Unrealized Losses | (2,995) | (152) | ||||
Fair Value/Carrying Value | 12,899 | 15,004 | ||||
Hybrids | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 781 | 812 | ||||
Allowance for Expected Credit Losses | 0 | 0 | 0 | 0 | ||
Gross Unrealized Gains | 8 | 69 | ||||
Gross Unrealized Losses | (84) | 0 | ||||
Fair Value/Carrying Value | 705 | 881 | ||||
Municipals | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 1,695 | 1,386 | ||||
Allowance for Expected Credit Losses | 0 | 0 | ||||
Gross Unrealized Gains | 4 | 66 | ||||
Gross Unrealized Losses | (289) | (11) | ||||
Fair Value/Carrying Value | 1,410 | 1,441 | ||||
Residential mortgage-backed securities | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 1,631 | 722 | ||||
Allowance for Expected Credit Losses | (7) | (3) | $ (3) | $ 0 | $ (3) | $ 0 |
Gross Unrealized Gains | 6 | 7 | ||||
Gross Unrealized Losses | (109) | (4) | ||||
Fair Value/Carrying Value | 1,521 | 722 | ||||
U.S. Government | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 34 | 50 | ||||
Allowance for Expected Credit Losses | 0 | 0 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Losses | (2) | 0 | ||||
Fair Value/Carrying Value | 32 | 50 | ||||
Foreign Governments | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 185 | 197 | ||||
Allowance for Expected Credit Losses | 0 | 0 | ||||
Gross Unrealized Gains | 0 | 8 | ||||
Gross Unrealized Losses | (37) | 0 | ||||
Fair Value/Carrying Value | $ 148 | $ 205 |
Investments - Narrative (Detail
Investments - Narrative (Details) insuranceAgent in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 31, 2020 USD ($) | May 31, 2020 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) insuranceAgent | |
Debt Securities, Available-for-sale [Line Items] | |||||
Assets held by insurance regulators | $ 17,751,000,000 | $ 22,219,000,000 | |||
Non-income producing investment fair value | 27,000,000 | 0 | |||
Accrued interest receivable | 358,000,000 | 246,000,000 | |||
FHLB collateral pledged | 3,387,000,000 | $ 2,469,000,000 | |||
Allowance for credit loss for securities in an unrealized loss position | $ 31,000,000 | ||||
Commercial mortgage loans, percentage of investments | 6% | 6% | |||
DSC ratio, amortization period | 25 years | ||||
Gross investment income | $ 454,000,000 | $ 818,000,000 | $ 1,846,000,000 | $ 2,015,000,000 | |
Reinsurance agreement, recognized gains (losses) | $ 21,000,000 | (58,000,000) | $ 381,000,000 | $ 15,000,000 | |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other assets | Prepaid expenses and other assets | |||
Commercial mortgage loans | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Loans delinquent in principal or interest payments | 1 | 0 | |||
Funds Withheld for Reinsurance | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Gross investment income | $ 15,000,000 | $ 21,000,000 | $ 109,000,000 | $ 53,000,000 | |
90 days or over past due | Mortgage loans | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Mortgage loans over 90 days past due | 71,000,000 | 72,000,000 | |||
Mortgage loans in process of foreclosure | $ 38,000,000 | $ 39,000,000 | |||
Residential mortgages | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Percentage of total investments | 5% | 4% | |||
Mortgage loans over 90 days past due | $ 2,180,000,000 | $ 1,606,000,000 | |||
Residential mortgages | Mortgage loans | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Allowance for expected credit loss, probability of loss/default model, projected loss, using reasonable forecast period | 2 years | ||||
Allowance for credit loss, probability of loss/default, using market historical loss experience, period | 3 years | ||||
Residential mortgages | 90 days or over past due | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Mortgage loans over 90 days past due | $ 62,000,000 | 72,000,000 | |||
Commercial mortgages | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Mortgage loans over 90 days past due | $ 2,416,000,000 | 2,174,000,000 | |||
Commercial mortgages | Mortgage loans | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Allowance for expected credit loss, probability of loss/default model, projected loss, using reasonable forecast period | 2 years | ||||
Allowance for credit loss, probability of loss/default, using market historical loss experience, period | 3 years | ||||
Commercial mortgages | 90 days or over past due | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Mortgage loans over 90 days past due | $ 9,000,000 | $ 0 | |||
United States | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Residential mortgage loans, location percentage | 100% |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 124 | $ 105 |
Due after one year through five years, Amortized Cost | 2,193 | 1,724 |
Due after five years through ten years, Amortized Cost | 1,840 | 2,141 |
Due after ten years, Amortized Cost | 14,417 | 12,842 |
Subtotal | 18,574 | 16,812 |
Other securities which provide for periodic payments, Amortized Cost | 17,149 | 11,912 |
Amortized Cost | 35,723 | 28,724 |
Due in one year or less, Fair Value | 123 | 106 |
Due after one year through five years, Fair Value | 2,059 | 1,754 |
Due after five years through ten years, Fair Value | 1,633 | 2,201 |
Due after ten years, Fair Value | 11,379 | 13,515 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value, Total | 15,194 | 17,576 |
Other securities which provide for periodic payments, Fair Value | 16,024 | 12,386 |
Total fixed maturity available-for-sale securities | 31,218 | 29,962 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 12,209 | 8,516 |
Amortized Cost | 12,209 | 8,516 |
Other securities which provide for periodic payments, Fair Value | 11,467 | 8,695 |
Total fixed maturity available-for-sale securities | 11,467 | 8,695 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 3,309 | 2,669 |
Amortized Cost | 3,309 | 2,669 |
Other securities which provide for periodic payments, Fair Value | 3,036 | 2,964 |
Total fixed maturity available-for-sale securities | 3,036 | 2,964 |
Structured hybrids | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 5 | |
Other securities which provide for periodic payments, Fair Value | 5 | |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 1,631 | 722 |
Other securities which provide for periodic payments, Fair Value | $ 1,521 | $ 722 |
Investments - Allowance for Cre
Investments - Allowance for Credit Loss Aggregated By Investment Category (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | $ 0 | $ (15) | $ (8) | $ (10) |
Additions | ||||
For credit losses on securities for which losses were not previously recorded | (51) | 10 | (24) | (2) |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | (36) | 0 | (1) |
(Additions) reductions in allowance recorded on previously impaired securities | 15 | 3 | (3) | 4 |
Reductions | ||||
For securities sold during the period | 8 | 7 | 3 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 12 | 4 | 0 | 0 |
Write offs charged against the allowance | 1 | 2 | 1 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 1 |
Balance at End of Period | (15) | (10) | (31) | (8) |
Asset-backed securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | 0 | (5) | (3) | 0 |
Additions | ||||
For credit losses on securities for which losses were not previously recorded | (17) | 7 | (7) | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | (9) | 0 | (1) |
(Additions) reductions in allowance recorded on previously impaired securities | 12 | 2 | (1) | (2) |
Reductions | ||||
For securities sold during the period | 0 | 0 | 2 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 | 0 | 0 |
Write offs charged against the allowance | 0 | 0 | 1 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Balance at End of Period | (5) | 0 | (8) | (3) |
Commercial mortgage-backed securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | (2) | 0 | ||
Additions | ||||
For credit losses on securities for which losses were not previously recorded | 0 | (2) | ||
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | 0 | ||
(Additions) reductions in allowance recorded on previously impaired securities | 0 | 0 | ||
Reductions | ||||
For securities sold during the period | 1 | 0 | ||
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 | ||
Write offs charged against the allowance | 0 | 0 | ||
Recoveries of amounts previously written off | 0 | 0 | ||
Balance at End of Period | 0 | (1) | (2) | |
Corporates | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | 0 | (7) | 0 | (7) |
Additions | ||||
For credit losses on securities for which losses were not previously recorded | (28) | 1 | (15) | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | (17) | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 0 | 0 | 0 | 6 |
Reductions | ||||
For securities sold during the period | 8 | 3 | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 12 | 4 | 0 | 0 |
Write offs charged against the allowance | 1 | 2 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 1 |
Balance at End of Period | (7) | (7) | (15) | 0 |
Hybrids | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | 0 | 0 | ||
Additions | ||||
For credit losses on securities for which losses were not previously recorded | 0 | |||
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | (3) | |||
(Additions) reductions in allowance recorded on previously impaired securities | 0 | |||
Reductions | ||||
For securities sold during the period | 3 | |||
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | |||
Write offs charged against the allowance | 0 | |||
Recoveries of amounts previously written off | 0 | |||
Balance at End of Period | 0 | 0 | 0 | |
Residential mortgage-backed securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | 0 | (3) | (3) | (3) |
Additions | ||||
For credit losses on securities for which losses were not previously recorded | (6) | 2 | (2) | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | (7) | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 3 | 1 | (2) | 0 |
Reductions | ||||
For securities sold during the period | 0 | 1 | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 | 0 | 0 |
Write offs charged against the allowance | 0 | 0 | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 | 0 | 0 |
Balance at End of Period | $ (3) | $ (3) | $ (7) | $ (3) |
Investments - Debt Securities,
Investments - Debt Securities, Available-for-sale, Purchased with Credit Deterioration (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Purchased credit-deteriorated available-for-sale debt securities | ||
Purchase price | $ 0 | $ 4 |
Allowance for credit losses at acquisition | 0 | 1 |
AFS purchased credit-deteriorated par value | $ 0 | $ 5 |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) $ in Millions | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 20,533 | $ 10,821 |
Gross Unrealized Losses Less than 12 months | (2,600) | (176) |
Fair Value, 12 Months or longer | 8,007 | 641 |
Gross Unrealized Losses, 12 months or longer | (1,930) | (40) |
Total Fair Value | 28,540 | 11,462 |
Total Gross Unrealized Losses | $ (4,530) | $ (216) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | security | 2,774 | 1,955,000,000 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | security | 1,212 | 67,000,000 |
Total number of available-for-sale securities in an unrealized loss position | security | 3,986 | 2,022,000,000 |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 7,001 | $ 4,410 |
Gross Unrealized Losses Less than 12 months | (410) | (31) |
Fair Value, 12 Months or longer | 3,727 | 146 |
Gross Unrealized Losses, 12 months or longer | (360) | (7) |
Total Fair Value | 10,728 | 4,556 |
Total Gross Unrealized Losses | (770) | (38) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 2,065 | 600 |
Gross Unrealized Losses Less than 12 months | (168) | (11) |
Fair Value, 12 Months or longer | 475 | 1 |
Gross Unrealized Losses, 12 months or longer | (116) | 0 |
Total Fair Value | 2,540 | 601 |
Total Gross Unrealized Losses | (284) | (11) |
Corporates | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 8,780 | 5,017 |
Gross Unrealized Losses Less than 12 months | (1,679) | (126) |
Fair Value, 12 Months or longer | 3,231 | 394 |
Gross Unrealized Losses, 12 months or longer | (1,312) | (26) |
Total Fair Value | 12,011 | 5,411 |
Total Gross Unrealized Losses | (2,991) | (152) |
Hybrids | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 619 | 3 |
Gross Unrealized Losses Less than 12 months | (83) | 0 |
Fair Value, 12 Months or longer | 3 | 0 |
Gross Unrealized Losses, 12 months or longer | (1) | 0 |
Total Fair Value | 622 | 3 |
Total Gross Unrealized Losses | (84) | 0 |
Municipals | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 948 | 407 |
Gross Unrealized Losses Less than 12 months | (176) | (5) |
Fair Value, 12 Months or longer | 352 | 85 |
Gross Unrealized Losses, 12 months or longer | (113) | (6) |
Total Fair Value | 1,300 | 492 |
Total Gross Unrealized Losses | (289) | (11) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 990 | 325 |
Gross Unrealized Losses Less than 12 months | (51) | (3) |
Fair Value, 12 Months or longer | 184 | 11 |
Gross Unrealized Losses, 12 months or longer | (22) | (1) |
Total Fair Value | 1,174 | 336 |
Total Gross Unrealized Losses | (73) | (4) |
U.S. Government | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 11 | 32 |
Gross Unrealized Losses Less than 12 months | (1) | 0 |
Fair Value, 12 Months or longer | 21 | 4 |
Gross Unrealized Losses, 12 months or longer | (1) | 0 |
Total Fair Value | 32 | 36 |
Total Gross Unrealized Losses | (2) | 0 |
Foreign Governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 119 | 27 |
Gross Unrealized Losses Less than 12 months | (32) | 0 |
Fair Value, 12 Months or longer | 14 | 0 |
Gross Unrealized Losses, 12 months or longer | (5) | 0 |
Total Fair Value | 133 | 27 |
Total Gross Unrealized Losses | $ (37) | $ 0 |
Investments - Schedule of Comme
Investments - Schedule of Commercial Mortgage Loan, Gross of Valuation Allowance, By Property Type and Region (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 01, 2020 | May 31, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||||||
Allowance for expected credit loss | $ (42) | $ (31) | $ (39) | $ 0 | $ (15) | $ (8) |
Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | 2,416 | 2,174 | ||||
Allowance for expected credit loss | (10) | (6) | $ (2) | $ 0 | $ (1) | $ (1) |
Loans, net | $ 2,406 | $ 2,168 | ||||
% of Total | 100% | 100% | ||||
East North Central | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 151 | $ 137 | ||||
% of Total | 6% | 6% | ||||
East South Central | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 76 | $ 79 | ||||
% of Total | 3% | 4% | ||||
Middle Atlantic | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 326 | $ 293 | ||||
% of Total | 13% | 13% | ||||
Mountain | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 355 | $ 236 | ||||
% of Total | 15% | 11% | ||||
New England | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 158 | $ 149 | ||||
% of Total | 7% | 7% | ||||
Pacific | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 708 | $ 649 | ||||
% of Total | 28% | 30% | ||||
South Atlantic | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 521 | $ 459 | ||||
% of Total | 22% | 21% | ||||
West North Central | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 4 | $ 12 | ||||
% of Total | 1% | 1% | ||||
West South Central | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 117 | $ 160 | ||||
% of Total | 5% | 7% | ||||
Hotel | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 18 | $ 19 | ||||
% of Total | 1% | 1% | ||||
Industrial | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 520 | $ 497 | ||||
% of Total | 22% | 23% | ||||
Mixed Use | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 12 | $ 13 | ||||
% of Total | 1% | 1% | ||||
Multifamily | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 1,013 | $ 894 | ||||
% of Total | 42% | 41% | ||||
Office | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 330 | $ 343 | ||||
% of Total | 14% | 16% | ||||
Retail | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 105 | $ 121 | ||||
% of Total | 4% | 6% | ||||
Student Housing | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 83 | $ 83 | ||||
% of Total | 3% | 4% | ||||
Other | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 335 | $ 204 | ||||
% of Total | 13% | 8% |
Investments - Schedule of Inves
Investments - Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Loans under development, fair value | $ 9 | |
Loans under development, amortized cost | 9 | |
Commercial mortgages | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 2,407 | |
Loans | $ 2,416 | $ 2,174 |
% of Total | 100% | 100% |
Commercial mortgages | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 2,074 | |
Loans | $ 2,265 | |
% of Total | 100% | 100% |
Commercial mortgages | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 526 | |
Loans | $ 668 | |
% of Total | 22% | 31% |
Commercial mortgages | Less than 50.00% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 490 | |
Loans | $ 745 | |
% of Total | 24% | 33% |
Commercial mortgages | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 706 | |
Loans | $ 470 | |
% of Total | 29% | 22% |
Commercial mortgages | 50.00% to 59.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 615 | |
Loans | $ 481 | |
% of Total | 30% | 21% |
Commercial mortgages | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 1,157 | |
Loans | $ 1,036 | |
% of Total | 48% | 47% |
Commercial mortgages | 60.00% to 74.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 955 | |
Loans | $ 1,039 | |
% of Total | 45% | 46% |
Commercial mortgages | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 18 | |
% of Total | 1% | |
Commercial mortgages | 75.00% to 84.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 14 | |
% of Total | 1% | |
Greater than 1.25 | Commercial mortgages | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 2,371 | |
Loans | $ 2,132 | |
Greater than 1.25 | Commercial mortgages | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 511 | |
Loans | 626 | |
Greater than 1.25 | Commercial mortgages | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 706 | |
Loans | 470 | |
Greater than 1.25 | Commercial mortgages | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 1,154 | |
Loans | 1,036 | |
Greater than 1.25 | Commercial mortgages | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 0 | |
Greater than 1.00 but less than 1.25 | Commercial mortgages | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 7 | |
Loans | 33 | |
Greater than 1.00 but less than 1.25 | Commercial mortgages | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 4 | |
Loans | 33 | |
Greater than 1.00 but less than 1.25 | Commercial mortgages | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 0 | |
Loans | 0 | |
Greater than 1.00 but less than 1.25 | Commercial mortgages | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 3 | |
Loans | 0 | |
Greater than 1.00 but less than 1.25 | Commercial mortgages | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 0 | |
Less than 1.00 | Commercial mortgages | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 29 | |
Loans | 9 | |
Less than 1.00 | Commercial mortgages | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 11 | |
Loans | 9 | |
Less than 1.00 | Commercial mortgages | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 0 | |
Loans | 0 | |
Less than 1.00 | Commercial mortgages | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | 0 | |
Loans | $ 0 | |
Less than 1.00 | Commercial mortgages | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loan excluding loans under development | $ 18 |
Investments - Schedule of Resid
Investments - Schedule of Residential Mortgage Loans by State (Details) - Residential mortgages - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Loans | $ 2,180 | $ 1,606 |
% of Total | 100% | 100% |
Florida | ||
Schedule of Investments [Line Items] | ||
Loans | $ 324 | $ 234 |
% of Total | 15% | 15% |
Texas | ||
Schedule of Investments [Line Items] | ||
Loans | $ 215 | $ 170 |
% of Total | 10% | 10% |
New Jersey | ||
Schedule of Investments [Line Items] | ||
Loans | $ 172 | $ 153 |
% of Total | 8% | 10% |
Pennsylvania | ||
Schedule of Investments [Line Items] | ||
Loans | $ 153 | |
% of Total | 7% | |
California | ||
Schedule of Investments [Line Items] | ||
Loans | $ 139 | |
% of Total | 6% | |
New York | ||
Schedule of Investments [Line Items] | ||
Loans | $ 138 | |
% of Total | 6% | |
Georgia | ||
Schedule of Investments [Line Items] | ||
Loans | $ 125 | |
% of Total | 6% | |
All other states | ||
Schedule of Investments [Line Items] | ||
Loans | $ 914 | $ 1,049 |
% of Total | 42% | 65% |
Investments - Schedule of Loans
Investments - Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 01, 2020 | May 31, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||||||
Allowance for expected credit loss | $ (42) | $ (31) | $ (39) | $ 0 | $ (15) | $ (8) |
Residential mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 2,180 | $ 1,606 | ||||
% of Total | 100% | 100% | ||||
Allowance for expected credit loss | $ (32) | $ (25) | $ (37) | $ 0 | $ (14) | $ (7) |
Financing receivable allowance for expected credit loss, percent | 0% | 0% | ||||
Financing receivable, excluding accrued interest, after allowance for credit loss | $ 2,148 | $ 1,581 | ||||
Financing receivable, allowance for credit loss to outstanding, percent | 100% | 100% | ||||
Performing Financial Instruments | Residential mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 2,118 | $ 1,533 | ||||
% of Total | 97% | 95% | ||||
Nonperforming Financial Instruments | Residential mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 62 | $ 73 | ||||
% of Total | 3% | 5% |
Investments - Schedule of Loa_2
Investments - Schedule of Loans Segregated by Risk Rating Exposure and Non-accrual Loans by Amortized Cost (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | $ 71 | $ 72 |
Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2021 | 900 | 320 |
2020 | 229 | 375 |
2019 | 223 | 53 |
2018 | 24 | 36 |
Prior | 33 | 21 |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 771 | 801 |
2020 | 900 | 320 |
2019 | 229 | 375 |
2018 | 223 | 53 |
2017 | 24 | 36 |
Prior | 33 | 21 |
Total | 2,180 | 1,606 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | 62 | 72 |
Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 341 | |
2021 | 1,300 | 543 |
2020 | 488 | 0 |
2019 | 0 | 6 |
2018 | 0 | 0 |
Prior | 278 | 324 |
Total | 2,407 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 350 | 1,301 |
2020 | 1,300 | 543 |
2019 | 488 | 0 |
2018 | 0 | 6 |
2017 | 0 | 0 |
Prior | 278 | 324 |
Total | 2,416 | 2,174 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | 9 | 0 |
Commercial mortgages | Greater than 1.25 | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 329 | |
2021 | 1,300 | 543 |
2020 | 488 | 0 |
2019 | 0 | 4 |
2018 | 0 | 0 |
Prior | 254 | 284 |
Total | 2,371 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 1,301 | |
2020 | 1,300 | 543 |
2019 | 488 | 0 |
2018 | 0 | 4 |
2017 | 0 | 0 |
Prior | 254 | 284 |
Total | 2,132 | |
Commercial mortgages | Greater than 1.00 but less than 1.25 | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 3 | |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 2 |
2018 | 0 | 0 |
Prior | 4 | 31 |
Total | 7 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 2 |
2017 | 0 | 0 |
Prior | 4 | 31 |
Total | 33 | |
Commercial mortgages | Less than 1.00 | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 9 | |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 20 | 9 |
Total | 29 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 20 | 9 |
Total | 9 | |
Commercial mortgages | Less than 50.00% | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 70 | |
2021 | 120 | 229 |
2020 | 207 | 0 |
2019 | 0 | 6 |
2018 | 0 | 0 |
Prior | 129 | 313 |
Total | 526 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 120 | |
2020 | 120 | 229 |
2019 | 207 | 0 |
2018 | 0 | 6 |
2017 | 0 | 0 |
Prior | 129 | 313 |
Total | 668 | |
Commercial mortgages | Less than 50.00% | Greater than 1.25 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 511 | |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 626 | |
Commercial mortgages | Less than 50.00% | Greater than 1.00 but less than 1.25 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 4 | |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 33 | |
Commercial mortgages | Less than 50.00% | Less than 1.00 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 11 | |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 9 | |
Commercial mortgages | 50.00% to 59.99% | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 149 | |
2021 | 268 | 192 |
2020 | 158 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 131 | 11 |
Total | 706 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 267 | |
2020 | 268 | 192 |
2019 | 158 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 131 | 11 |
Total | 470 | |
Commercial mortgages | 50.00% to 59.99% | Greater than 1.25 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 706 | |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 470 | |
Commercial mortgages | 50.00% to 59.99% | Greater than 1.00 but less than 1.25 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | |
Commercial mortgages | 50.00% to 59.99% | Less than 1.00 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | |
Commercial mortgages | 60.00% to 74.99% | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 113 | |
2021 | 912 | 122 |
2020 | 123 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 9 | 0 |
Total | 1,157 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 914 | |
2020 | 912 | 122 |
2019 | 123 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 9 | 0 |
Total | 1,036 | |
Commercial mortgages | 60.00% to 74.99% | Greater than 1.25 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 1,154 | |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 1,036 | |
Commercial mortgages | 60.00% to 74.99% | Greater than 1.00 but less than 1.25 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 3 | |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | |
Commercial mortgages | 60.00% to 74.99% | Less than 1.00 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | |
Commercial mortgages | 75.00% to 84.99% | ||
Credit Quality Indicator Current Year [Abstract] | ||
2022 | 9 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 9 | |
Total | 18 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 9 | |
Commercial mortgages | 75.00% to 84.99% | Greater than 1.25 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | |
Commercial mortgages | 75.00% to 84.99% | Greater than 1.00 but less than 1.25 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | |
Commercial mortgages | 75.00% to 84.99% | Less than 1.00 | ||
Credit Quality Indicator Current Year [Abstract] | ||
Total | 18 | |
Financial Asset, 1 to 29 Days Past Due | Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2021 | 884 | 293 |
2020 | 214 | 323 |
2019 | 185 | 50 |
2018 | 23 | 36 |
Prior | 33 | 21 |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 766 | 795 |
2020 | 884 | 293 |
2019 | 214 | 323 |
2018 | 185 | 50 |
2017 | 23 | 36 |
Prior | 33 | 21 |
Total | 2,105 | 1,518 |
Financial Asset, 1 to 29 Days Past Due | Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2021 | 1,300 | 543 |
2020 | 488 | 0 |
2019 | 0 | 6 |
2018 | 0 | 0 |
Prior | 269 | 324 |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 350 | 1,301 |
2020 | 1,300 | 543 |
2019 | 488 | 0 |
2018 | 0 | 6 |
2017 | 0 | 0 |
Prior | 269 | 324 |
Total | 2,407 | 2,174 |
Financial Asset, 30 to 89 Days Past Due | Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2021 | 7 | 4 |
2020 | 0 | 6 |
2019 | 4 | 1 |
2018 | 0 | 0 |
Prior | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 2 | 5 |
2020 | 7 | 4 |
2019 | 0 | 6 |
2018 | 4 | 1 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Total | 13 | 16 |
Financial Asset, 30 to 89 Days Past Due | Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
90 days or over past due | Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2021 | 9 | 23 |
2020 | 15 | 46 |
2019 | 34 | 2 |
2018 | 1 | 0 |
Prior | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 3 | 1 |
2020 | 9 | 23 |
2019 | 15 | 46 |
2018 | 34 | 2 |
2017 | 1 | 0 |
Prior | 0 | 0 |
Total | 62 | 72 |
90 days or over past due | Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 9 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 9 | 0 |
Total | $ 9 | $ 0 |
Investments - Changes in Allowa
Investments - Changes in Allowance for Expected Credit Losses on Mortgage Loans (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning Balance | $ 15 | $ 31 | $ 39 | |
Provision for loan losses | $ 7 | 32 | 11 | (8) |
For initial credit losses on purchased loans accounted for as PCD financial assets | 0 | 7 | ||
Ending Balance | 15 | 39 | 42 | 31 |
Residential mortgages | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning Balance | 14 | 25 | 37 | |
Provision for loan losses | 7 | 30 | 7 | (12) |
For initial credit losses on purchased loans accounted for as PCD financial assets | 0 | 7 | ||
Ending Balance | 14 | 37 | 32 | 25 |
Commercial mortgages | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning Balance | 1 | 6 | 2 | |
Provision for loan losses | 0 | 2 | 4 | 4 |
For initial credit losses on purchased loans accounted for as PCD financial assets | 0 | 0 | ||
Ending Balance | $ 1 | $ 2 | $ 10 | $ 6 |
Investments - Schedule of Sourc
Investments - Schedule of Sources of Net Investment Income Reported (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 31, 2020 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | |||||
Gross investment income | $ 454 | $ 818 | $ 1,846 | $ 2,015 | |
Investment expense | (51) | (75) | (191) | (163) | |
Interest and investment income | $ 403 | 403 | 743 | 1,655 | 1,852 |
Fixed maturity securities, available-for-sale | |||||
Schedule of Investments [Line Items] | |||||
Gross investment income | 426 | 643 | 1,431 | 1,213 | |
Equity securities | |||||
Schedule of Investments [Line Items] | |||||
Gross investment income | 4 | 7 | 17 | 11 | |
Preferred securities | |||||
Schedule of Investments [Line Items] | |||||
Gross investment income | 16 | 35 | 49 | 47 | |
Mortgage loans | |||||
Schedule of Investments [Line Items] | |||||
Gross investment income | 36 | 50 | 186 | 131 | |
Invested cash and short-term investments | |||||
Schedule of Investments [Line Items] | |||||
Gross investment income | 4 | 0 | 33 | 7 | |
Limited partnerships | |||||
Schedule of Investments [Line Items] | |||||
Gross investment income | (37) | 75 | 110 | 589 | |
Other investments | |||||
Schedule of Investments [Line Items] | |||||
Gross investment income | $ 5 | $ 8 | $ 20 | $ 17 |
Investments - Realized Gain (Lo
Investments - Realized Gain (Loss) on Investments (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 31, 2020 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | |||||
Net realized (losses) gains on fixed maturity available-for-sale securities | $ (49) | $ 95 | $ (241) | $ 102 | |
Realized (losses) gains on other invested assets | (2) | 0 | (13) | 6 | |
Change in allowance for expected credit losses | (23) | (19) | (34) | 4 | |
Realized (losses) gains on certain derivative instruments | 11 | 76 | (164) | 455 | |
Unrealized (losses) gains on certain derivative instruments | (223) | 161 | (693) | 160 | |
Change in fair value of reinsurance related embedded derivatives | 19 | (53) | 352 | 34 | |
Change in fair value of other derivatives and embedded derivatives | (1) | 8 | (10) | 5 | |
Realized (losses) gains on derivatives and embedded derivatives | (194) | 192 | (515) | 654 | |
Recognized gains and (losses), net | $ (338) | (338) | 352 | (1,010) | 715 |
Equity securities | |||||
Schedule of Investments [Line Items] | |||||
Net realized/unrealized (losses) gains | (30) | 29 | (40) | (37) | |
Equity securities, FV-NI, valuation gain (loss) | (30) | 30 | (40) | (37) | |
Preferred securities | |||||
Schedule of Investments [Line Items] | |||||
Net realized/unrealized (losses) gains | $ (40) | 55 | (167) | (14) | |
Equity securities, FV-NI, valuation gain (loss) | $ (34) | $ 56 | $ (159) | $ (14) |
Investments - Proceeds from Sal
Investments - Proceeds from Sale of Fixed Maturity AFS Securities (Details) - Total fixed maturity securities, available for sale - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | ||||
Proceeds | $ 513 | $ 1,398 | $ 3,097 | $ 4,555 |
Gross gains | 29 | 101 | 13 | 142 |
Gross losses | $ (20) | $ (5) | $ (239) | $ (42) |
Investments - Schedule of Carry
Investments - Schedule of Carrying Value and Maximum Loss Exposure Unconsolidated VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Carrying Value | $ 18,107 | $ 14,732 |
Maximum Loss Exposure | 21,434 | 16,298 |
Investment in unconsolidated affiliates | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 2,427 | 2,350 |
Maximum Loss Exposure | 4,030 | 3,496 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 15,680 | 12,382 |
Maximum Loss Exposure | $ 17,404 | $ 12,802 |
Investments - Schedules of Inve
Investments - Schedules of Investment Concentrations (Details) - Stockholders' Equity, Total - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Blackstone Wave Asset Holdco | Investment Risk Concentration | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | $ 741 | $ 870 |
ELBA | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 470 | 0 |
COLI | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 308 | 0 |
Verus Securitization Trust | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 302 | 0 |
Jade 1 | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 271 | 0 |
Jade 2 | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 271 | 0 |
Jade 3 | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 271 | 0 |
Jade 4 | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 271 | 0 |
Maybay Finance, LLC | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | $ 224 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Carrying Amounts of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total asset derivatives | $ 546 | $ 849 |
Total liability derivatives | 3,115 | 3,956 |
Derivative investments | Call options | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total asset derivatives | 244 | 816 |
Other long-term investments | Embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total asset derivatives | 23 | 33 |
Prepaid expenses and other assets | Embedded Derivatives in Reinsurance Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total asset derivatives | 279 | 0 |
Contractholder funds | FIA/ IUL embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total liability derivatives | 3,115 | 3,883 |
Accounts payable and accrued liabilities | Reinsurance related embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total liability derivatives | $ 0 | $ 73 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||
Jun. 01, 2020 | May 31, 2020 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||||||
Derivative gains (losses) | $ 19 | $ (53) | $ 352 | $ 34 | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Recognized gains and (losses), net | Recognized gains and (losses), net | Recognized gains and (losses), net | Recognized gains and (losses), net | ||
Call options | ||||||
Derivative [Line Items] | ||||||
Derivative gains (losses) | $ 229 | $ (221) | $ (862) | $ 597 | ||
Futures contracts | ||||||
Derivative [Line Items] | ||||||
Derivative gains (losses) | 15 | 8 | (7) | 8 | ||
Foreign currency forwards | ||||||
Derivative [Line Items] | ||||||
Derivative gains (losses) | (7) | 1 | 12 | 10 | ||
Embedded derivatives | ||||||
Derivative [Line Items] | ||||||
Derivative gains (losses) | 8 | (1) | (10) | 5 | ||
Reinsurance related embedded derivatives | ||||||
Derivative [Line Items] | ||||||
Derivative gains (losses) | (53) | 19 | 352 | 34 | ||
FIA/ IUL embedded derivatives (decrease) increase | ||||||
Derivative [Line Items] | ||||||
Derivative gains (losses) | 552 | 239 | (768) | 479 | ||
Total Derivatives, Net | ||||||
Derivative [Line Items] | ||||||
Derivative gains (losses) | $ 192 | $ (194) | $ (515) | $ 654 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | |
All Counterparties Except Merrill Lynch | ||
Derivative [Line Items] | ||
Counterparties, collateral required threshold | 0% | |
Embedded derivatives | ||
Derivative [Line Items] | ||
Term of contract, term one | 1 year | |
Term of contract, term two | 2 years | |
Term of contract, term three | 3 years | |
Term of contract, term four | 5 years | |
Call options | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | $ 219 | $ 790 |
Maximum amount of loss due to credit risk | 33 | 42 |
Call options | Derivatives for Trading and Investment | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | 219 | 790 |
Maximum amount of loss due to credit risk | 33 | 42 |
Call options | Cash and Cash Equivalents | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral posted | $ 178 | $ 576 |
Futures contracts | ||
Derivative [Line Items] | ||
Number of instruments held | contract | 409,000,000 | 329,000,000 |
Collateral held | $ 3 | $ 3 |
Derivative Financial Instrume_6
Derivative Financial Instruments - FGL's Exposure to Credit Loss on Call Options Held (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 546 | $ 849 |
Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 23,297 | 19,404 |
Fair Value | 244 | 816 |
Collateral | 219 | 790 |
Net Credit Risk | 33 | 42 |
Merrill Lynch | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,563 | 3,307 |
Fair Value | 23 | 128 |
Collateral | 0 | 86 |
Net Credit Risk | 23 | 42 |
Morgan Stanley | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,699 | 2,184 |
Fair Value | 14 | 86 |
Collateral | 19 | 92 |
Net Credit Risk | 0 | 0 |
Barclay's Bank | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,049 | 5,197 |
Fair Value | 65 | 231 |
Collateral | 59 | 233 |
Net Credit Risk | 6 | 0 |
Canadian Imperial Bank of Commerce | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 5,169 | 2,936 |
Fair Value | 68 | 147 |
Collateral | 64 | 151 |
Net Credit Risk | 4 | 0 |
Wells Fargo | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,361 | 2,445 |
Fair Value | 17 | 89 |
Collateral | 17 | 90 |
Net Credit Risk | 0 | 0 |
Goldman Sachs | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,133 | 307 |
Fair Value | 9 | 10 |
Collateral | 10 | 10 |
Net Credit Risk | 0 | 0 |
Credit Suisse | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,039 | 1,485 |
Fair Value | 5 | 74 |
Collateral | 5 | 75 |
Net Credit Risk | 0 | 0 |
Truist | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,489 | 1,543 |
Fair Value | 35 | 51 |
Collateral | 36 | 53 |
Net Credit Risk | 0 | $ 0 |
Citibank | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 795 | |
Fair Value | 8 | |
Collateral | 9 | |
Net Credit Risk | $ 0 |
Notes Payable - Components of N
Notes Payable - Components of Notes Payable (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Notes payable | $ 1,114 | $ 977 |
Revolving Credit Facility - Short-term | Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 547 | 0 |
5.50% F&G Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 5.50% | |
Notes payable | $ 567 | 577 |
FNF Promissory Note | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 0 | $ 400 |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) - USD ($) | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||
Nov. 22, 2022 | Jun. 24, 2022 | Dec. 31, 2021 | Sep. 15, 2021 | Apr. 20, 2018 | Mar. 31, 2022 | Mar. 31, 2021 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 29, 2020 | Jun. 01, 2020 | |
Credit Agreement November 2022 | Revolving Credit Facility | Fed Funds Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate debt | 0.05% | ||||||||||||
FNF Promissory Note | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 400,000,000 | ||||||||||||
Interest expense | $ 6,000,000 | $ 3,000,000 | $ 6,000,000 | $ 3,000,000 | |||||||||
Debt conversion, converted note, amount | $ 400,000,000 | ||||||||||||
Gain (loss) on exchange agreement | $ 0 | ||||||||||||
FNF Promissory Note | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate debt | 2.50% | ||||||||||||
Interest rate | 2.63% | ||||||||||||
Line of Credit | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 1,000,000 | ||||||||||||
Line of Credit | Credit Agreement November 2022 | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, maximum borrowing capacity | $ 550,000,000 | ||||||||||||
Prior debt redeemed or paid and any refinancing of debt incurred matures period (at least) | 91 days | ||||||||||||
Period from effective date | 3 years | ||||||||||||
Revolving credit facility outstanding | 550,000,000 | ||||||||||||
Unamortized debt issuance costs | 3,000,000 | ||||||||||||
Line of Credit | Credit Agreement November 2022 | Revolving Credit Facility | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility fee, rate | 0.20% | ||||||||||||
Line of Credit | Credit Agreement November 2022 | Revolving Credit Facility | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility fee, rate | 0.45% | ||||||||||||
Line of Credit | Credit Agreement November 2022 | Revolving Credit Facility | SOFR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit ratings agencies, basis spread on variable rate | 1.65% | ||||||||||||
Line of Credit | Credit Agreement November 2022 | Revolving Credit Facility | SOFR | Condition One | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate debt | 0.30% | ||||||||||||
Line of Credit | Credit Agreement November 2022 | Revolving Credit Facility | SOFR | Condition One | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate debt | 0.80% | ||||||||||||
Line of Credit | Credit Agreement November 2022 | Revolving Credit Facility | SOFR | Condition Two | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate debt | 1.30% | ||||||||||||
Line of Credit | Credit Agreement November 2022 | Revolving Credit Facility | SOFR | Condition Two | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate debt | 1.80% | ||||||||||||
Line of Credit | FNF Credit Facility | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, maximum borrowing capacity | $ 200,000,000 | ||||||||||||
Revolving credit facility outstanding | $ 0 | 0 | 0 | ||||||||||
Line of Credit | F&G Credit Agreement | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility, maximum borrowing capacity | $ 550,000,000 | ||||||||||||
Debt, period prior to maturity date (days) | 91 days | ||||||||||||
Senior Notes | Credit Agreement November 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maturity date, principal amount , maximum | $ 150,000,000 | ||||||||||||
Senior Notes | 5.50% F&G Senior Notes due May 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, stated percentage | 5.50% | 5.50% | |||||||||||
Aggregate principal amount | $ 550,000,000 | ||||||||||||
Interest expense | $ 13,000,000 | $ 18,000,000 | $ 29,000,000 | $ 29,000,000 | |||||||||
Debt premium established | $ 39,000,000 | ||||||||||||
Proceeds from issuance of senior long-term debt | $ 547,000,000 | ||||||||||||
Senior Notes | 5.50% F&G Senior Notes due May 2025 | FGL Holdings | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Price as percent of par on offering of unsecured notes | 99.50% | ||||||||||||
Senior Notes | 5.50% F&G Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate, stated percentage | 5.50% |
Notes Payable - Gross Principal
Notes Payable - Gross Principal Maturities of Notes Payable (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 550 |
2024 | 0 |
2025 | 550 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | $ 1,100 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | |
Aug. 31, 2020 | Oct. 31, 2021 | |
Kubera Reassurance Company | ||
Loss Contingencies [Line Items] | ||
Note funding, maximum | $ 300 | |
In the Matter of FGL Holdings | ||
Loss Contingencies [Line Items] | ||
Number of shares in which statutory appraisal rights have been claimed (in shares) | 12,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Unfunded Commitments (Details) - Commitment to Invest - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
Unfunded investment commitment | $ 2,430 | $ 2,360 |
Limited partnerships | ||
Other Commitments [Line Items] | ||
Unfunded investment commitment | 1,603 | 1,146 |
Whole loans | ||
Other Commitments [Line Items] | ||
Unfunded investment commitment | 419 | 589 |
Fixed maturity securities, ABS | ||
Other Commitments [Line Items] | ||
Unfunded investment commitment | 201 | 306 |
Other fixed maturity securities, AFS | ||
Other Commitments [Line Items] | ||
Unfunded investment commitment | 48 | 119 |
Commercial mortgage loans | ||
Other Commitments [Line Items] | ||
Unfunded investment commitment | 36 | 44 |
Other assets | ||
Other Commitments [Line Items] | ||
Unfunded investment commitment | 120 | 156 |
Residential mortgage loans | ||
Other Commitments [Line Items] | ||
Unfunded investment commitment | 2 | 0 |
Committed amounts included in liabilities | ||
Other Commitments [Line Items] | ||
Unfunded investment commitment | $ 1 | $ 0 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for: | ||||
Interest paid | $ 15 | $ 15 | $ 34 | $ 30 |
Income taxes (refunded) paid | 0 | 2 | (72) | 44 |
Deferred sales inducements | 43 | 46 | 87 | 90 |
Non-cash investing and financing activities: | ||||
Investments received from pension risk transfer premiums | 0 | 0 | 0 | 316 |
Change in proceeds of sales of investments available for sale receivable in period | 5 | (3) | 115 | (160) |
Change in purchases of investments available for sale payable in period | $ (6) | $ 7 | $ (10) | $ 2 |
Intangibles - Summary of Change
Intangibles - Summary of Changes in Carrying Amounts Intangible Assets Including DAC, VOBA and DSI (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||
May 31, 2020 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 01, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Balance at beginning of period | $ 1,476,000,000 | $ 1,991,000,000 | $ 2,034,000,000 | $ 1,724,000,000 | ||
Purchase price allocation adjustments | 61,000,000 | |||||
Deferrals | $ 227,000,000 | 297,000,000 | 814,000,000 | 675,000,000 | ||
Amortization | 46,000,000 | (131,000,000) | (353,000,000) | 517,000,000 | ||
Interest | 17,000,000 | 22,000,000 | 57,000,000 | 44,000,000 | ||
Unlocking | (11,000,000) | 2,000,000 | (4,000,000) | 12,000,000 | ||
Adjustment for net unrealized investment losses (gains) | 236,000,000 | (313,000,000) | 912,000,000 | 35,000,000 | ||
Balance at end of period | 1,991,000,000 | 1,991,000,000 | 1,724,000,000 | 3,460,000,000 | 2,034,000,000 | |
F&G | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, after purchase accounting adjustments | $ 0 | |||||
VOBA | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Balance at beginning of period | 599,000,000 | 752,000,000 | 1,185,000,000 | 1,466,000,000 | ||
Purchase price allocation adjustments | 61,000,000 | |||||
Deferrals | 0 | 0 | 0 | 0 | ||
Amortization | 14,000,000 | (120,000,000) | (203,000,000) | 436,000,000 | ||
Interest | 7,000,000 | 20,000,000 | 25,000,000 | 30,000,000 | ||
Unlocking | (9,000,000) | 2,000,000 | (5,000,000) | 13,000,000 | ||
Adjustment for net unrealized investment losses (gains) | 141,000,000 | (283,000,000) | 662,000,000 | 51,000,000 | ||
Balance at end of period | 752,000,000 | 752,000,000 | 1,466,000,000 | 1,664,000,000 | 1,185,000,000 | |
DAC | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Balance at beginning of period | 641,000,000 | 918,000,000 | 761,000,000 | 222,000,000 | ||
Purchase price allocation adjustments | 0 | |||||
Deferrals | 184,000,000 | 251,000,000 | 727,000,000 | 585,000,000 | ||
Amortization | 22,000,000 | (6,000,000) | (107,000,000) | 46,000,000 | ||
Interest | 8,000,000 | 2,000,000 | 30,000,000 | 13,000,000 | ||
Unlocking | (2,000,000) | 0 | (4,000,000) | 1,000,000 | ||
Adjustment for net unrealized investment losses (gains) | 65,000,000 | (25,000,000) | 182,000,000 | (14,000,000) | ||
Balance at end of period | 918,000,000 | 918,000,000 | 222,000,000 | 1,589,000,000 | 761,000,000 | |
DSI | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Balance at beginning of period | 236,000,000 | 321,000,000 | 88,000,000 | 36,000,000 | ||
Purchase price allocation adjustments | 0 | |||||
Deferrals | 43,000,000 | 46,000,000 | 87,000,000 | 90,000,000 | ||
Amortization | 10,000,000 | (5,000,000) | (43,000,000) | 35,000,000 | ||
Interest | 2,000,000 | 0 | 2,000,000 | 1,000,000 | ||
Unlocking | 0 | 0 | 5,000,000 | (2,000,000) | ||
Adjustment for net unrealized investment losses (gains) | 30,000,000 | (5,000,000) | 68,000,000 | (2,000,000) | ||
Balance at end of period | $ 321,000,000 | $ 321,000,000 | $ 36,000,000 | $ 207,000,000 | $ 88,000,000 |
Intangibles - Narrative (Detail
Intangibles - Narrative (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 1 | $ 17 | $ 25 | $ 28 |
Expected amortization, 2023 | 29 | |||
Expected amortization, 2024 | 26 | |||
Expected amortization, 2025 | 24 | |||
Expected amortization, 2026 | 23 | |||
Expected amortization, 2027 | 22 | |||
VOBA | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Adjustment for net unrealized investment gains (losses) | $ (430) | 232 | ||
VOBA | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Interest accrual rate utilized to calculate accretion of interest | 0% | |||
VOBA | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Interest accrual rate utilized to calculate accretion of interest | 4.71% | |||
DAC | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Adjustment for net unrealized investment gains (losses) | $ (143) | 39 | ||
DSI | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Deferred sales inducement, unrealized investment gains (losses) | $ (61) | $ 7 |
Intangibles - Estimated Amortiz
Intangibles - Estimated Amortization Expense for VOBA in Future Fiscal Periods (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ (53) |
2024 | 172 |
2025 | 151 |
2026 | 133 |
2027 | 129 |
Thereafter | $ 702 |
Intangibles - Definite and Inde
Intangibles - Definite and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, net | $ 191 | $ 200 |
Indefinite lived tradenames and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived, cost/carrying amount | 8 | 8 |
Value of distribution asset (VODA) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 140 | 140 |
Accumulated amortization | (40) | (25) |
Net carrying amount | $ 100 | $ 115 |
Weighted average useful life (years) | 15 years | 15 years |
Computer software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 82 | $ 67 |
Accumulated amortization | (21) | (15) |
Net carrying amount | $ 61 | $ 52 |
Computer software | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life (years) | 2 years | 2 years |
Computer software | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life (years) | 10 years | 10 years |
Definite lived trademarks, tradenames, and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 30 | $ 30 |
Accumulated amortization | (8) | (5) |
Net carrying amount | $ 22 | $ 25 |
Weighted average useful life (years) | 10 years | 10 years |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 1,756 | $ 1,756 |
Reinsurance - Effect of Reinsur
Reinsurance - Effect of Reinsurance on Premiums Earned and Benefits Incurred and Reserve Changes (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net Premiums Earned | ||||
Direct | $ 179 | $ 254 | $ 1,822 | $ 1,583 |
Assumed | 0 | 0 | 0 | 0 |
Ceded | (89) | (116) | (178) | (188) |
Net | 90 | 138 | 1,644 | 1,395 |
Life Insurance Product Line | ||||
Net Premiums Earned | ||||
Direct | 86 | 108 | 1,522 | 1,314 |
Assumed | 0 | 0 | 0 | 0 |
Ceded | (67) | (85) | (128) | (137) |
Net | 19 | 23 | 1,394 | 1,177 |
Net Benefits Incurred | ||||
Direct | 402 | 976 | 3,671 | 3,282 |
Assumed | (1) | 1 | 0 | 0 |
Ceded | (103) | (111) | (2,546) | (1,144) |
Net | $ 298 | $ 866 | $ 1,125 | $ 2,138 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) | 1 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Sep. 01, 2022 | Oct. 31, 2021 | Jan. 15, 2021 | Dec. 20, 2020 | Sep. 30, 2021 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 01, 2020 | |
Effects of Reinsurance [Line Items] | ||||||||||||
Expected credit losses on reinsurance recoverable | $ 10,000,000 | $ 22,000,000 | $ 21,000,000 | $ 10,000,000 | $ 20,000,000 | $ 0 | ||||||
Net amount recoverable | 5,587,000,000 | 5,587,000,000 | 3,610,000,000 | |||||||||
Aspida Re | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Funds withheld co-insurance basis, percentage | 50% | |||||||||||
Monthly cession capped amount | $ 350,000,000 | |||||||||||
Aspida Re | AM Best, A- Rating | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Net amount recoverable | 3,121,000,000 | 3,121,000,000 | ||||||||||
Aspida Re | Minimum | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Funds withheld co-insurance basis, percentage | 50% | |||||||||||
Aspida Re | Maximum | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Funds withheld co-insurance basis, percentage | 75% | |||||||||||
Kubera Reassurance Company | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance, amount retained, per policy | $ 1,000,000,000 | |||||||||||
Debt instrument, accordion feature, increase limit | 300,000,000 | |||||||||||
Kubera Reassurance Company | Fixed Index Annuity | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance, amount retained, per policy | $ 10,000,000,000 | $ 4,000,000,000 | ||||||||||
Statutory reserves, increase (decrease) due to waiver of surrender charges | $ (52,000,000) | |||||||||||
Reinsurance risk charge fee | (1,000,000) | 4,000,000 | 12,000,000 | 5,000,000 | ||||||||
Canada Life Assurance Company, US | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance risk charge fee | 1,000,000 | 4,000,000 | 2,000,000 | |||||||||
Hannover Re | Fixed Index Annuity | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance risk charge fee | $ 8,000,000 | $ 12,000,000 | $ 20,000,000 | 21,000,000 | ||||||||
Wilton Reassurance Company | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance, excess retention, percentage | 100% | |||||||||||
Wilton Reassurance Company | AM Best, A+ Rating | Fitch, A Rating | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Net amount recoverable | 1,231,000,000 | $ 1,231,000,000 | ||||||||||
Somerset | AM Best, A- Rating | Standard & Poor's, BBB+ Rating | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Net amount recoverable | 570,000,000 | 570,000,000 | ||||||||||
Raven Re | Intercompany Reinsurance Agreements | Affiliated Entity | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Line of credit facility, remaining borrowing capacity | 200,000,000 | 200,000,000 | ||||||||||
Statutory capital and surplus | $ 11,000,000 | 11,000,000 | $ 62,000,000 | |||||||||
F&G Life Re Ltd | Intercompany Reinsurance Agreements | Affiliated Entity | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance, amount retained, per policy | $ 5,000,000,000 | |||||||||||
Reinsurance, retrocession, quota share basis, net, percentage | 100% | |||||||||||
F&G Life Re Ltd | Pension Risk Transfer Annuities | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance, excess retention, percentage | 80% | |||||||||||
Reinsurance reserves ceded, funds withheld, amount | $ 380,000,000 | |||||||||||
Co-insurance reserve for PRT separate account insurance liability | $ 1,700,000,000 | $ 1,700,000,000 | ||||||||||
F&G Cayman Re Ltd | Intercompany Reinsurance Agreements | Affiliated Entity | ||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||
Reinsurance, amount retained, per policy | $ 2,200,000,000 | |||||||||||
Reinsurance, retrocession, quota share basis, percentage | 45% |
Related Party Transactions (Det
Related Party Transactions (Details) insuranceAgent in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||||||
Jun. 24, 2022 USD ($) shares | Oct. 31, 2021 insuranceAgent | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | May 31, 2020 USD ($) | May 31, 2020 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 01, 2022 | Jun. 23, 2022 shares | |
Related Party Transaction [Line Items] | |||||||||||
Stock split, conversion ratio | 105,000 | ||||||||||
Stock issued for each share of common stock (in shares) | shares | 104,999 | ||||||||||
Common stock, shares authorized (in shares) | shares | 500,000,000 | 500,000,000 | 500,000,000 | 1,000 | |||||||
Interest and investment income | $ (403,000,000) | $ (403,000,000) | $ (743,000,000) | $ (1,655,000,000) | $ (1,852,000,000) | ||||||
Freedom Equity Group | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of insurance agents (approximately) | insuranceAgent | 4 | ||||||||||
Ownership percentage | 30% | ||||||||||
F&G | Fidelity National Financial, Inc. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage retained by parent | 85% | ||||||||||
FNF Promissory Note | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt conversion, converted note, amount | $ 400,000,000 | ||||||||||
Gain (loss) on exchange agreement | $ 0 | ||||||||||
Interest expense | $ 6,000,000 | $ 3,000,000 | $ 6,000,000 | $ 3,000,000 | |||||||
Parent Company | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Corporate Services Agreement, written notice of termination, period | 90 days | ||||||||||
Reverse Corporate Services Agreement, written notice of termination, period | 90 days | ||||||||||
Parent Company | Operational Support Services | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Expenses from related party transactions | $ 4,000,000 | ||||||||||
Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest and investment income | (12,000,000) | ||||||||||
Affiliated Entity | Freedom Equity Group | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Payments for commissions | $ 74,000,000 | ||||||||||
Affiliated Entity | Finance of America Holdings LLC | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Purchase of loans | 103,000,000 | ||||||||||
Affiliated Entity | Blackstone Real Estate Debt Strategies | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Purchase of loans | $ 67,000,000 |
Insurance Subsidiary Financia_3
Insurance Subsidiary Financial Information and Regulatory Matters - Statutory Accounting Practices Disclosure (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Iowa | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Net income (loss): | $ (243) | $ 351 |
Statutory Capital and Surplus: | 1,877 | 1,473 |
New York | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Net income (loss): | (15) | 4 |
Statutory Capital and Surplus: | 82 | 99 |
Vermont | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Net income (loss): | (111) | 3 |
Statutory Capital and Surplus: | 121 | 115 |
Cayman Islands | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Net income (loss): | 299 | 99 |
Statutory Capital and Surplus: | 126 | 164 |
Bermuda | ||
Statutory Accounting Practices [Line Items] | ||
Statutory Net income (loss): | 339 | 94 |
Statutory Capital and Surplus: | $ 138 | $ 206 |
Insurance Subsidiary Financia_4
Insurance Subsidiary Financial Information and Regulatory Matters - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Accounting Practices [Line Items] | |||
Statutory accounting practices, dividends paid with approval of regulatory agency | $ 0 | $ 38,000,000 | $ 151,000,000 |
Iowa | |||
Statutory Accounting Practices [Line Items] | |||
Increase (decrease) in statutory capital and surplus | (152,000,000) | (106,000,000) | |
Statutory capital and surplus | 1,877,000,000 | 1,473,000,000 | |
Vermont | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | 121,000,000 | 115,000,000 | |
Raven Re | Iowa | |||
Statutory Accounting Practices [Line Items] | |||
Change in statutory capital surplus increase (decrease) | 28,000,000 | 0 | |
Statutory accounting practices, non-permitted practice, change in statutory capital and surplus | (107,000,000) | 30,000,000 | |
Raven Re | Vermont | |||
Statutory Accounting Practices [Line Items] | |||
Change in statutory capital surplus increase (decrease) | 200,000,000 | 85,000,000 | |
Statutory capital and surplus | $ 121,000,000 | $ 115,000,000 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Salaries and incentives | $ 72 | $ 60 |
Accrued benefits | 58 | 74 |
Deferred revenue | 203 | 35 |
Trade accounts payable | 114 | 72 |
Accrued premium taxes | 5 | 3 |
Liability for policy and contract claims | 109 | 109 |
Retained asset account | 117 | 148 |
Remittances and items not allocated | 225 | 39 |
Option collateral liabilities | 178 | 576 |
Funds withheld embedded derivative | 0 | 73 |
Other accrued liabilities | 193 | 108 |
Accounts payable and accrued liabilities | $ 1,273 | $ 1,297 |
Income Taxes - Tax Expense on C
Income Taxes - Tax Expense on Continuing Operations (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ (1) | $ 18 | $ (31) | $ 27 |
Deferred | (13) | (93) | 148 | 193 |
Income tax expense on continuing operations | $ (14) | $ (75) | $ 117 | $ 220 |
Income Taxes - Tax Expense (Ben
Income Taxes - Tax Expense (Benefit) Allocation (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Taxes on net earnings (loss) from continuing operations | $ (14,000,000) | $ (75,000,000) | $ 117,000,000 | $ 220,000,000 |
Tax expense on net earnings (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Other comprehensive earnings (loss): | ||||
Unrealized (loss) gain on investments and other financial instruments | (185,000,000) | 315,000,000 | (935,000,000) | (123,000,000) |
Unrealized gain on foreign currency translation and cash flow hedging | 0 | 2,000,000 | (1,000,000) | (1,000,000) |
Total income tax (benefit) expense allocated to other comprehensive earnings | (185,000,000) | 317,000,000 | (936,000,000) | (124,000,000) |
Total income taxes | $ (199,000,000) | $ 242,000,000 | $ (819,000,000) | $ 96,000,000 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 21% | 21% | 21% | 21% |
State income taxes, net of federal benefit | (0.40%) | 1.80% | 0.10% | 0.40% |
Benefit for Capital Loss Carryback | 0% | (4.00%) | 0% | |
Stock compensation | 0% | 0.10% | 0% | (0.10%) |
Tax credits | 0.10% | (3.20%) | (1.40%) | (0.40%) |
Dividends received deduction | 0.40% | (2.50%) | (0.60%) | (0.30%) |
Benefit on outside of United States income taxed at 0% | (1.80%) | 0% | 0% | 0% |
Withholding tax on 0% taxed jurisdiction | (0.30%) | (2.50%) | 0% | 0% |
Valuation allowance for deferred tax assets | (12.10%) | (63.50%) | 4.50% | (1.30%) |
Change in tax status benefit | 0% | (41.00%) | 0% | 0% |
Adjustment of DTAs on sale of subsidiary | 0% | 0% | 0% | 1.40% |
Non-deductible expenses and other, net | (0.40%) | 1.50% | 0% | (0.20%) |
Effective tax rate | 6.50% | (88.30%) | 19.60% | 20.50% |
Income Taxes - Components Defer
Income Taxes - Components Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets: | ||
Employee benefit accruals | $ 21 | $ 22 |
Net operating loss carryforwards | 28 | 16 |
Accrued liabilities | 1 | 0 |
Tax credits | 30 | 32 |
Investment securities | 853 | 0 |
Capital loss carryover | 8 | 41 |
Derivatives | 67 | 0 |
Life insurance and claim related adjustments | 669 | 854 |
Funds held under reinsurance agreements | 37 | 52 |
Other | 19 | 12 |
Total gross deferred tax asset | 1,733 | 1,029 |
Less: valuation allowance | 30 | 0 |
Total deferred tax asset | 1,703 | 1,029 |
Deferred tax liabilities: | ||
Amortization of goodwill and intangible assets | (29) | (33) |
Other | (2) | (1) |
Investment securities | 0 | (355) |
Depreciation | (14) | (11) |
Partnerships | (93) | (126) |
Value of business acquired | (350) | (249) |
Derivatives | 0 | (68) |
Deferred acquisition costs | (243) | (102) |
Transition reserve on new reserve method | (25) | (34) |
Funds held under reinsurance agreements | (183) | (74) |
Total deferred tax liability | (939) | (1,053) |
Net deferred tax asset (liability) | $ 764 | |
Net deferred tax asset (liability) | $ (24) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation Allowance [Line Items] | ||||
Effective tax rate | 6.50% | (88.30%) | 19.60% | 20.50% |
Net deferred tax asset | $ 764,000,000 | |||
Deferred tax liabilities, net | $ (24,000,000) | |||
Decrease in deferred tax liability due to investments unrealized losses | 1,208,000,000 | |||
Increase in deferred tax liability relating to partnerships | 33,000,000 | |||
Increase in deferred tax liability for VOBA | 101,000,000 | |||
Increase in deferred tax liability, deferred acquisition costs | 141,000,000 | |||
Increase in deferred tax liability, derivatives | 135,000,000 | |||
Reduction in deferred tax asset, basis difference, held-for-sale | 185,000,000 | |||
Decrease in deferred tax asset, reinsurance receivables | 15,000,000 | |||
Increase in deferred tax liability, reinsurance receivables | 109,000,000 | |||
Operating loss carryforwards | 133,000,000 | |||
Tax credits | 30,000,000 | 32,000,000 | ||
Valuation allowance | 30,000,000 | 0 | ||
Unrecognized tax benefits | 0 | $ 58,000,000 | ||
CARES Act, tax benefit | $ 7,000,000 | |||
CARES Act, tax benefit, due to NOL carryback | 1,000,000 | |||
CARES Act, tax benefit, due to change in percentage limitation for NOLs | $ 6,000,000 | |||
Deferred tax asset, capital loss carryforward, subsidiaries | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance | 4,000,000 | |||
Deferred tax asset, capital loss carryforward, U.S. Non-life Companies | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance | 4,000,000 | |||
Deferred tax asset, capital loss carryforward, US Life Companies | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance | 22,000,000 | |||
Tax credit subject to loss limitation | ||||
Valuation Allowance [Line Items] | ||||
Tax credits | 11,000,000 | |||
Tax credit, no loss limitation | ||||
Valuation Allowance [Line Items] | ||||
Tax credits | 19,000,000 | |||
Begin to expire in 2023 | ||||
Valuation Allowance [Line Items] | ||||
Operating loss carryforwards | $ 133,000,000 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||
Jan. 01, 2023 | Jun. 01, 2020 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 01, 2022 | Dec. 31, 2019 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Maximum employee contributions percent | 75% | |||||||
Employer matching contribution on employee contribution | 1 | |||||||
Employer matching contribution, up to percent of employees eligible earnings contributed, percent | 5% | |||||||
Employer contribution | $ 2 | $ 1 | $ 5 | $ 3 | ||||
Stock-based compensation cost | $ 3 | $ 4 | $ 12 | $ 9 | ||||
Employee Stock | Subsequent Event | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Employer contribution after initial employee contribution, period | 1 year | |||||||
Employee Stock | Minimum | Subsequent Event | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Employee stock purchase, percent | 3% | |||||||
Employer contributions match, percent | 30% | |||||||
Employee Stock | Maximum | Subsequent Event | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Employee stock purchase, percent | 15% | |||||||
Employer contributions match, percent | 50% | |||||||
Stock Options and Restricted Stock | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Nonvested award, cost not yet recognized, period for recognition | 1 year 4 months 2 days | |||||||
FNF Stock Purchase Plan | Employee Stock | Minimum | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Employee stock purchase, percent | 3% | 3% | ||||||
FNF Stock Purchase Plan | Employee Stock | Maximum | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Employee stock purchase, percent | 15% | 15% | ||||||
F&G Omnibus Plan | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Options, outstanding (in shares) | 13,445,025 | 2,002,690 | 1,527,936 | 15,213,959 | ||||
F&G Omnibus Plan | Fidelity National Financial Group Common Stock | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Number of shares authorized | 2,096,429 | |||||||
Options, outstanding (in shares) | 1,172,607 | |||||||
F&G Omnibus Plan | Stock Options and Restricted Stock | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Nonvested award, cost not yet recognized, amount | $ 6 | |||||||
F&G Omnibus Plan | Options | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Number of shares authorized | 6,000,000 | |||||||
F&G Omnibus Plan | Options | Fidelity National Financial Group Common Stock | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Number of shares authorized | 2,411,585 | |||||||
Award vesting period | 3 years | |||||||
Expiration period (in years) | 7 years | |||||||
F&G Omnibus Plan | Restricted Stock | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Outstanding (in shares) | 95,416,000 | 449,870,000 | 1,409,904 | 718,641,000 | 0 | |||
Grant date, fair value | $ 16 | $ 0 | $ 15 | |||||
Vested (in shares) | 95,416,000 | 138,542,000 | 29,873,000 | |||||
Nonvested award, cost not yet recognized, amount | $ 30 | |||||||
Nonvested award, cost not yet recognized, period for recognition | 1 year 10 months 24 days | |||||||
Vested in period, fair value | $ 5 | |||||||
F&G Omnibus Plan | Restricted Stock | Fidelity National Financial Group Common Stock | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Outstanding (in shares) | 501,548,000 | |||||||
2022 Omnibus Plan | Restricted Stock | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Grant date, fair value | $ 31 | |||||||
Stock-based compensation cost | $ 1 | |||||||
2022 Omnibus Plan | Restricted Stock | Fidelity National Financial Group Common Stock | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Outstanding (in shares) | 1,409,904 | 0 | ||||||
Vested (in shares) | 0 |
Employee Benefit Plans - Restri
Employee Benefit Plans - Restricted Stock Transactions under the 2022 F&G Omnibus Plan (Details) - $ / shares | 5 Months Ended | 12 Months Ended |
May 31, 2020 | Dec. 31, 2022 | |
Shares | ||
Canceled (in shares) | 0 | |
Restricted Stock | 2022 Omnibus Plan | Fidelity National Financial Group Common Stock | ||
Shares | ||
Beginning balance (in shares) | 0 | |
Granted (in shares) | 1,411,369 | |
Canceled (in shares) | (1,465) | |
Vested (in shares) | 0 | |
Ending balance (in shares) | 1,409,904 | |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 0 | |
Granted (in usd per share) | 21.80 | |
Canceled (in usd per share) | 21.80 | |
Vested (in usd per share) | 0 | |
Ending balance (in dollars per share) | $ 21.80 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Option Transactions Under 2020 Omnibus Plan (Details) - F&G Omnibus Plan - $ / shares | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Options | |||||
Beginning balance (in shares) | 15,213,959 | 13,445,025 | 1,527,936 | 2,002,690 | |
Granted (in shares) | 0 | 0 | |||
FGL options canceled and converted into options to purchase FNF common shares in connection with the F&G acquisition (in shares) | 2,411,585 | ||||
Exercised (in shares) | (1,672,330) | (109,159) | (352,614) | (474,754) | |
Canceled (in shares) | (96,604) | (299,736) | (2,715) | 0 | |
Ending balance (in shares) | 13,445,025 | 2,002,690 | 1,527,936 | ||
Weighted Average Exercise Price | |||||
Beginning balance (in dollars per share) | $ 9.30 | $ 9.30 | $ 35.97 | $ 36.14 | |
Granted (in dollars per share) | 0 | 0 | |||
FGL options canceled and converted into options to purchase FNF common shares in connection with the F&G acquisition (in dollars per share) | 36.04 | ||||
Exercised (in dollars per share) | 9.51 | 27.64 | 38.79 | 36.68 | |
Canceled (in dollars per share) | 10 | 38.41 | 28 | 0 | |
Ending balance (in dollars per share) | $ 9.30 | $ 36.14 | $ 35.15 | $ 35.97 | |
Exercisable | |||||
Exercisable (in shares) | 640,000 | 1,021,671 | 1,172,607 | 1,072,584 | 1,008,780 |
Employee Benefit Plans - Stoc_2
Employee Benefit Plans - Stock Options Outstanding and Exercisable by Exercise Price (Details) - F&G Omnibus Plan $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of outstanding options (in shares) | shares | 1,172,607 |
Options, outstanding, intrinsic value | $ | $ 4 |
Number of exercisable options (in shares) | shares | 1,172,607 |
Options, exercisable, intrinsic value | $ | $ 4 |
$0.00 - $27.53 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ 0 |
Exercise price range, upper range limit (in dollars per share) | $ 27.53 |
Number of outstanding options (in shares) | shares | 359,510 |
Outstanding options, weighted average remaining contractual term (in years) | 2 years 11 months 23 days |
Outstanding options, weighted average exercise price (in dollars per share) | $ 27.53 |
Options, outstanding, intrinsic value | $ | $ 4 |
Number of exercisable options (in shares) | shares | 359,510 |
Exercisable options, weighted average remaining contractual term (in years) | 2 years 11 months 23 days |
Exercisable options, weighted average exercise price (in dollars per share) | $ 27.53 |
Options, exercisable, intrinsic value | $ | $ 4 |
$27.54 - $28.00 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ 27.54 |
Exercise price range, upper range limit (in dollars per share) | $ 28 |
Number of outstanding options (in shares) | shares | 43,019 |
Outstanding options, weighted average remaining contractual term (in years) | 3 years 3 months 25 days |
Outstanding options, weighted average exercise price (in dollars per share) | $ 28 |
Options, outstanding, intrinsic value | $ | $ 0 |
Number of exercisable options (in shares) | shares | 43,019 |
Exercisable options, weighted average remaining contractual term (in years) | 3 years 3 months 25 days |
Exercisable options, weighted average exercise price (in dollars per share) | $ 28 |
Options, exercisable, intrinsic value | $ | $ 0 |
$28.01 - $39.10 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | $ 28.01 |
Exercise price range, upper range limit (in dollars per share) | $ 39.10 |
Number of outstanding options (in shares) | shares | 770,078 |
Outstanding options, weighted average remaining contractual term (in years) | 2 years 7 months 13 days |
Outstanding options, weighted average exercise price (in dollars per share) | $ 39.10 |
Options, outstanding, intrinsic value | $ | $ 0 |
Number of exercisable options (in shares) | shares | 770,078 |
Exercisable options, weighted average remaining contractual term (in years) | 2 years 7 months 13 days |
Exercisable options, weighted average exercise price (in dollars per share) | $ 39.10 |
Options, exercisable, intrinsic value | $ | $ 0 |
Employee Benefit Plans - Rest_2
Employee Benefit Plans - Restricted Stock Transactions (Details) - $ / shares | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | ||||
Canceled (in shares) | 0 | |||
F&G Omnibus Plan | Restricted Stock | ||||
Shares | ||||
Beginning balance (in shares) | 0 | 95,416,000 | 718,641,000 | 449,870,000 |
Granted (in shares) | 95,416,000 | 474,025,000 | 0 | 311,081,000 |
Canceled (in shares) | (24,155,000) | (78,551,000) | (12,437,000) | |
Vested (in shares) | (95,416,000) | (138,542,000) | (29,873,000) | |
Ending balance (in shares) | 95,416,000 | 449,870,000 | 1,409,904 | 718,641,000 |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 0 | $ 10.48 | $ 40.24 | $ 34.11 |
Granted (usd per share) | 10.48 | 34.13 | 0 | 48.28 |
Canceled (in usd per share) | 0 | 34.47 | 37.79 | 33.40 |
Vested (in usd per share) | 10.48 | 34.11 | 34.59 | |
Ending balance (in dollars per share) | $ 10.48 | $ 34.11 | $ 42.31 | $ 40.24 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Net earnings (loss) from continuing operations | $ (200) | $ 161 | $ 481 | $ 857 | ||
Net earnings (loss) from discontinued operations, net of tax | (114) | (25) | 0 | 8 | ||
Net earnings (loss) | (314) | 136 | 481 | 865 | ||
Less: Preferred stock dividend | 8 | 0 | 0 | 0 | ||
Net earnings (loss) attributable to common shareholders | (322) | 136 | 481 | 865 | ||
Net earnings (loss) attributable to common shareholders | $ (322) | $ 136 | $ 481 | $ 865 | ||
Weighted average common shares used in computing net income (loss) per common share (in shares) | 213,000 | 105,000 | [1] | 115,000 | 105,000 | [1] |
Weighted average common shares used in computing net income (loss) per diluted share (in shares) | 213,000 | 105,000 | [1] | 115,000 | 105,000 | [1] |
Net earnings (loss) per common share: | ||||||
Net earnings (loss) from continuing operations, basic (in usd per share) | $ (0.97) | $ 1.54 | $ 4.18 | $ 8.16 | ||
Net earnings (loss) from discontinuing operations, basic (in usd per share) | (0.54) | (0.24) | 0 | 0.08 | ||
Net earnings (loss) per common share, basic (in usd per share) | (1.51) | 1.30 | 4.18 | 8.24 | ||
Net earnings (loss) from continuing operations, diluted (in usd per share) | (0.97) | 1.54 | 4.18 | 8.16 | ||
Net earnings (loss) from discontinuing operations, diluted (in usd per share) | (0.54) | (0.24) | 0 | 0.08 | ||
Net earnings (loss) per share, diluted (in usd per share) | $ (1.51) | $ 1.30 | $ 4.18 | $ 8.24 | ||
Restricted Stock | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Dilutive effect of unvested restricted stock and stock options (in shares) | 0 | 0 | 0 | 0 | ||
Options | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Dilutive effect of unvested restricted stock and stock options (in shares) | 0 | 0 | 0 | 0 | ||
[1]Weighted average shares outstanding for the year ended December 31, 2021 and for the period June 1, 2020 to December 31, 2020, retrospectively include the effects of the 105,000 for 1 stock split that became effective on June 24, 2022 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) shares in Thousands, $ in Millions | 5 Months Ended | 12 Months Ended | |
Jun. 24, 2022 USD ($) | May 31, 2020 shares | Dec. 31, 2022 shares | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Stock split, conversion ratio | 105,000 | ||
Options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 447 | ||
FNF Promissory Note | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Debt conversion, converted note, amount | $ | $ 400 | ||
Fidelity National Financial, Inc. | FNF Promissory Note | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Debt conversion, converted note, amount | $ | $ 400 | ||
Restricted Stock Units (RSUs) | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 120 | ||
Restricted Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 19 | ||
Options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 456 | ||
Preferred Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 438 | ||
Common Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Stock split, conversion ratio | 105,000 | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 213,721 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - Cumulative effect for change in accounting principle - USD ($) $ in Millions | Jan. 01, 2021 | Jan. 01, 2020 |
Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reduction to retained earnings | $ 27 | |
Total stockholders' equity | $ (27) | |
Maximum | Pro Forma | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reduction to retained earnings | $ (200) | |
Total stockholders' equity | $ 200 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | ||||
Life insurance premiums and other fees | $ 1 | $ 0 | $ 0 | |
Interest and investment income | 24 | 42 | 3 | |
Recognized gains and (losses), net | (95) | 196 | 0 | |
Total revenues | (70) | 238 | 3 | |
Expenses: | ||||
Other operating expenses | (41) | 19 | 0 | |
Benefits and other changes in policy reserves | (5) | 244 | (5) | |
Other expenses | 2 | 0 | 0 | |
Total expenses | (44) | 263 | (5) | |
Earnings (loss) from discontinued operations before income taxes | (114) | (25) | 8 | |
Income tax (expense) benefit | 0 | 0 | $ 0 | 0 |
Net earnings (loss) from discontinued operations, net of tax | (114) | (25) | $ 0 | 8 |
Cash flow from discontinued operations data: | ||||
Net cash provided by (used in) operating activities | $ (39) | $ 121 | $ (26) |
Subsequent Events (Details)
Subsequent Events (Details) - Syncis Holdings, LLC - Subsequent Event | Jan. 30, 2023 insuranceAgent |
Subsequent Event [Line Items] | |
Ownership percentage | 49% |
Number of insurance agents (approximately) | 1,200 |
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] | |
Amortized Cost | $ 46,394 |
Fair Value | 40,808 |
Amount Shown on Condensed Consolidated Balance Sheet | 41,387 |
United States Government full faith and credit | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 34 |
Fair Value | 32 |
Amount Shown on Condensed Consolidated Balance Sheet | 32 |
United States Government sponsored entities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 46 |
Fair Value | 42 |
Amount Shown on Condensed Consolidated Balance Sheet | 42 |
Municipals | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,695 |
Fair Value | 1,410 |
Amount Shown on Condensed Consolidated Balance Sheet | 1,410 |
Foreign Governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 185 |
Fair Value | 148 |
Amount Shown on Condensed Consolidated Balance Sheet | 148 |
Finance, insurance and real estate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 5,969 |
Fair Value | 5,085 |
Amount Shown on Condensed Consolidated Balance Sheet | 5,085 |
Manufacturing, construction and mining | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 896 |
Fair Value | 737 |
Amount Shown on Condensed Consolidated Balance Sheet | 737 |
Utilities, energy and related sectors | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2,915 |
Fair Value | 2,275 |
Amount Shown on Condensed Consolidated Balance Sheet | 2,275 |
Wholesale/retail trade | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2,535 |
Fair Value | 2,008 |
Amount Shown on Condensed Consolidated Balance Sheet | 2,008 |
Services, media and other | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 3,564 |
Fair Value | 2,794 |
Amount Shown on Condensed Consolidated Balance Sheet | 2,794 |
Hybrid securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 781 |
Fair Value | 705 |
Amount Shown on Condensed Consolidated Balance Sheet | 705 |
Non-agency residential mortgage-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,585 |
Fair Value | 1,479 |
Amount Shown on Condensed Consolidated Balance Sheet | 1,479 |
Commercial mortgage-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 3,309 |
Fair Value | 3,036 |
Amount Shown on Condensed Consolidated Balance Sheet | 3,036 |
Asset-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 7,749 |
Fair Value | 7,245 |
Amount Shown on Condensed Consolidated Balance Sheet | 7,245 |
CLO securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 4,460 |
Fair Value | 4,222 |
Amount Shown on Condensed Consolidated Balance Sheet | 4,222 |
Total fixed maturity securities, available for sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 35,723 |
Fair Value | 31,218 |
Amount Shown on Condensed Consolidated Balance Sheet | 31,218 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 992 |
Fair Value | 823 |
Amount Shown on Condensed Consolidated Balance Sheet | 823 |
Private equity | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,129 |
Fair Value | 1,129 |
Amount Shown on Condensed Consolidated Balance Sheet | 1,129 |
Real assets | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 436 |
Fair Value | 431 |
Amount Shown on Condensed Consolidated Balance Sheet | 431 |
Credit | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 867 |
Fair Value | 867 |
Amount Shown on Condensed Consolidated Balance Sheet | 867 |
Limited partnerships | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2,432 |
Fair Value | 2,427 |
Amount Shown on Condensed Consolidated Balance Sheet | 2,427 |
Commercial mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2,406 |
Fair Value | 2,083 |
Amount Shown on Condensed Consolidated Balance Sheet | 2,406 |
Residential mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2,148 |
Fair Value | 1,892 |
Amount Shown on Condensed Consolidated Balance Sheet | 2,148 |
Other (primarily derivatives and company owned life insurance) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,137 |
Fair Value | 809 |
Amount Shown on Condensed Consolidated Balance Sheet | 809 |
Short-term | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,556 |
Fair Value | 1,556 |
Amount Shown on Condensed Consolidated Balance Sheet | $ 1,556 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information (Parent Company) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2020 | Dec. 31, 2019 |
Assets: | |||||
Fixed maturity securities available-for-sale | $ 31,218 | $ 29,962 | |||
Cash and cash equivalents | 960 | 1,533 | |||
Prepaid expenses and other assets | 917 | 613 | |||
Notes receivable | 3 | 3 | |||
Deferred tax asset, net | 764 | 0 | |||
Income taxes receivable | 28 | 50 | |||
Total assets | 55,075 | 48,730 | |||
Liabilities: | |||||
Accounts payable and accrued liabilities | 1,273 | 1,297 | |||
Notes payable | 1,114 | 977 | |||
Liabilities | 53,259 | 44,245 | |||
Equity: | |||||
Common stock | 0 | 0 | |||
Additional paid-in-capital | 3,162 | 2,750 | |||
Retained earnings | 1,457 | 1,001 | |||
Accumulated other comprehensive (loss) earnings | (2,803) | 734 | |||
Total equity | 1,816 | 4,485 | $ 4,074 | $ 2,737 | $ 2,585 |
Total liabilities and equity | 55,075 | 48,730 | |||
Parent Company | |||||
Assets: | |||||
Investments in consolidated subsidiaries | 2,217 | 4,777 | |||
Fixed maturity securities available-for-sale | 54 | 72 | |||
Cash and cash equivalents | 52 | 3 | |||
Prepaid expenses and other assets | 5 | 0 | |||
Notes receivable | 1 | 1 | |||
Deferred tax asset, net | 0 | 35 | |||
Income taxes receivable | 60 | 0 | |||
Total assets | 2,389 | 4,888 | |||
Liabilities: | |||||
Accounts payable and accrued liabilities | 24 | 3 | |||
Intercompany payables | 3 | 0 | |||
Notes payable | 546 | 400 | |||
Liabilities | 573 | 403 | |||
Equity: | |||||
Common stock | 0 | 0 | |||
Additional paid-in-capital | 3,162 | 2,750 | |||
Retained earnings | 1,457 | 1,001 | |||
Accumulated other comprehensive (loss) earnings | (2,803) | 734 | |||
Total equity | 1,816 | 4,485 | |||
Total liabilities and equity | $ 2,389 | $ 4,888 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information - Balance Sheet Additional Information (Parent Company) (Details) - $ / shares | Dec. 31, 2022 | Jun. 24, 2022 | Jun. 23, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par or stated value per share (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 1,000 | 500,000,000 |
Common stock, shares, outstanding (in shares) | 126,409,904 | 105,000,000 | ||
Common stock, shares, issued (in shares) | 126,409,904 | 105,000,000 | ||
Parent Company | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par or stated value per share (in dollars per share) | $ 0.001 | |||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Common stock, shares, outstanding (in shares) | 126,409,904 | 105,000,000 | ||
Common stock, shares, issued (in shares) | 126,409,904 | 105,000,000 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information - Statement of Operations (Parent Company) (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
May 31, 2020 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Income Statements, Captions [Line Items] | |||||
Interest and investment income | $ 403 | $ 403 | $ 743 | $ 1,655 | $ 1,852 |
Revenues | 155 | 1,233 | 2,340 | 3,962 | |
Other operating expenses | 75 | 75 | 102 | 105 | |
Interest expense | 13 | 18 | 29 | 29 | |
Total expenses | 369 | 1,147 | 1,742 | 2,885 | |
Income tax expense (benefit) | 14 | 75 | (117) | (220) | |
Net earnings (loss) | (314) | 136 | 481 | 865 | |
Parent Company | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Interest and investment income | 0 | 0 | 3 | 0 | |
Revenues | 0 | 0 | 3 | 0 | |
Other operating expenses | 11 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 7 | 3 | |
Total expenses | 11 | 0 | 7 | 3 | |
Earnings (losses) before income tax expense and equity in earnings of subsidiaries | (11) | 0 | (4) | (3) | |
Income tax expense (benefit) | 0 | 35 | 24 | 0 | |
Earnings (losses) before equity in earnings of subsidiaries | (11) | 35 | 20 | (3) | |
Equity in earnings (losses) of subsidiaries | (303) | 101 | 461 | 868 | |
Net earnings (loss) | $ (314) | $ 136 | $ 481 | $ 865 |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information - Statement of Cash Flow (Parent Company) (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | ||||
Net earnings (loss) | $ (314) | $ 136 | $ 481 | $ 865 |
Net change in income taxes | (11) | (89) | 170 | 138 |
Net change in other assets and other liabilities | (43) | 145 | (528) | 69 |
Net cash provided by (used in) operating activities | (224) | 287 | 3,171 | 1,871 |
Cash Flows from Investing Activities: | ||||
Net cash provided by (used in) investing activities | (724) | (1,865) | (9,370) | (6,862) |
Cash Flows from Financing Activities: | ||||
Debt issuance costs | 0 | 0 | (4) | 0 |
Exercise of stock options | 10 | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 877 | 1,640 | 5,626 | 5,635 |
Net increase (decrease) in cash and cash equivalents | (71) | 62 | (573) | 644 |
Cash and cash equivalents at beginning of period | 935 | 864 | 1,533 | 889 |
Cash and cash equivalents at end of period | 864 | 889 | 960 | 1,533 |
Parent Company | ||||
Cash Flows from Operating Activities: | ||||
Net earnings (loss) | (314) | 136 | 481 | 865 |
Gain (Loss) on Sale of Investments | 0 | 0 | 1 | 0 |
Equity in earnings of subsidiaries | 303 | (101) | (461) | (868) |
Net change in income taxes | 0 | (35) | (25) | 0 |
Stock-based compensation | 3 | 4 | 12 | 9 |
Net change in other assets and other liabilities | (6) | (5) | (9) | (3) |
Net cash provided by (used in) operating activities | (14) | (1) | (1) | 3 |
Cash Flows from Investing Activities: | ||||
Proceeds | 0 | 0 | 4 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 4 | 0 |
Cash Flows from Financing Activities: | ||||
Proceeds from Issuance of Long-Term Debt | 0 | 0 | 550 | 0 |
Debt issuance costs | 0 | 0 | (4) | 0 |
Exercise of stock options | 10 | 0 | 0 | 0 |
Capital contributions | 0 | 0 | (500) | 0 |
Net cash provided by (used in) financing activities | 10 | 0 | 46 | 0 |
Net increase (decrease) in cash and cash equivalents | (4) | (1) | 49 | 3 |
Cash and cash equivalents at beginning of period | 5 | 1 | 3 | 0 |
Cash and cash equivalents at end of period | $ 1 | $ 0 | $ 52 | $ 3 |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | ||||
Deferred acquisition costs | $ 918 | $ 222 | $ 1,589 | $ 761 |
Future policy benefits, losses, claims and loss expenses | 3,741 | 4,010 | 5,923 | 4,732 |
Other policy claims and benefits payable | 74 | 88 | 109 | 109 |
Life insurance premiums and other fees | 90 | 138 | 1,695 | 1,395 |
Interest and investment income | 403 | 743 | 1,655 | 1,852 |
Benefits, claims, losses and settlement expenses | (298) | (866) | (1,125) | (2,138) |
Amortization, interest, and unlocking of deferred acquisition costs | 28 | (4) | (81) | (32) |
Other operating expenses, net of deferrals | $ (75) | $ (75) | $ (102) | $ (105) |
Schedule IV - Supplemental Re_2
Schedule IV - Supplemental Reinsurance Schedule (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Life insurance in force | ||||
Gross Amount | $ 3,626 | $ 3,892 | $ 6,258 | $ 4,881 |
Ceded to other companies | (2,025) | (2,064) | (1,594) | (1,682) |
Assumed from other companies | 0 | 0 | 0 | 0 |
Net Amount | $ 1,601 | $ 1,828 | $ 4,664 | $ 3,199 |
Percentage of amount assumed of net | 0% | 0% | 0% | 0% |
Net Premiums Earned | ||||
Gross Amount | $ 179 | $ 254 | $ 1,822 | $ 1,583 |
Ceded | (89) | (116) | (178) | (188) |
Assumed from other companies | 0 | 0 | 0 | 0 |
Net | $ 90 | $ 138 | $ 1,644 | $ 1,395 |
Percentage of amount assumed of net | 0% | 0% | 0% | 0% |
Life Insurance Premiums | ||||
Net Premiums Earned | ||||
Gross Amount | $ 160 | $ 168 | ||
Ceded | (128) | (137) | ||
Assumed from other companies | 0 | 0 | ||
Net | $ 32 | $ 31 | ||
Percentage of amount assumed of net | 0% | 0% | ||
Life-contingent PRT Premiums | ||||
Net Premiums Earned | ||||
Gross Amount | $ 86 | $ 108 | $ 1,362 | $ 1,146 |
Ceded | (67) | (85) | 0 | 0 |
Assumed from other companies | 0 | 0 | 0 | 0 |
Net | $ 19 | $ 23 | $ 1,362 | $ 1,146 |
Percentage of amount assumed of net | 0% | 0% | 0% | 0% |
Annuity product charges | ||||
Net Premiums Earned | ||||
Gross Amount | $ 93 | $ 146 | $ 300 | $ 269 |
Ceded | (22) | (31) | (50) | (51) |
Assumed from other companies | 0 | 0 | 0 | 0 |
Net | $ 71 | $ 115 | $ 250 | $ 218 |
Percentage of amount assumed of net | 0% | 0% | 0% | 0% |
Uncategorized Items - fg-202212
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 827,000,000 |
DSI [Member] | ||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | us-gaap_DeferredPolicyAcquisitionCostsAndValueOfBusinessAcquired | 0 |
Voba [Member] | ||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | us-gaap_DeferredPolicyAcquisitionCostsAndValueOfBusinessAcquired | 1,847,000,000 |
Dac [Member] | ||
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | us-gaap_DeferredPolicyAcquisitionCostsAndValueOfBusinessAcquired | $ 0 |