Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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, Postal Zip Code | 50309 | |
Entity Address, City or Town | Des Moines | |
Entity Address, State or Province | IA | |
City Area Code | 515 | |
Local Phone Number | 330-3340 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | F&G | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 125,507,473 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001934850 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed maturity securities available for sale, at fair value, at June 30, 2023 and December 31, 2022, at an amortized cost of $40,374 and $35,723, respectively, net of allowance for credit losses of $32 and $31, respectively | $ 36,182 | $ 31,218 |
Derivative investments | 648 | 244 |
Mortgage loans, net of allowance for credit losses of $64 and $42 at June 30, 2023 and December 31, 2022, respectively | 5,076 | 4,554 |
Investments in unconsolidated affiliates (certain investments at fair value of $197 and $23 at June 30, 2023 and December 31, 2022, respectively) | 2,803 | 2,455 |
Other long-term investments | 566 | 537 |
Short-term investments | 347 | 1,556 |
Total investments | 46,378 | 41,387 |
Cash and cash equivalents | 1,688 | 960 |
Reinsurance recoverable, net of allowance for credit losses of $9 and $10 at June 30, 2023 and December 31, 2022, respectively | 7,076 | 5,417 |
Goodwill | 1,749 | 1,749 |
Prepaid expenses and other assets | 1,168 | 941 |
Other intangible assets, net | 3,851 | 3,429 |
Market risk benefits asset | 118 | 117 |
Income taxes receivable | 13 | 28 |
Deferred tax asset | 546 | 600 |
Total assets | 62,587 | 54,628 |
Liabilities: | ||
Contractholder funds | 45,070 | 40,843 |
Future policy benefits | 5,715 | 5,021 |
Market risk benefits liability | 313 | 282 |
Accounts payable and accrued liabilities | 1,719 | 1,260 |
Notes payable | 1,571 | 1,114 |
Funds withheld for reinsurance liabilities | 5,681 | 3,703 |
Total liabilities | 60,069 | 52,223 |
Equity: | ||
F&G common stock, $0.001 par value; authorized 500,000,000 shares as of June 30, 2023 and December 31, 2022; outstanding 125,591,479 and 126,409,904 as of June 30, 2023 and December 31, 2022, respectively; and issued 126,386,605 and 126,409,904 as of June 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Additional paid-in capital | 3,173 | 3,162 |
Retained earnings | 1,971 | 2,061 |
Accumulated other comprehensive (loss) earnings | (2,610) | (2,818) |
Treasury stock | (16) | 0 |
Total equity | 2,518 | 2,405 |
Liabilities and Equity | 62,587 | 54,628 |
Preferred securities | ||
Investments: | ||
Preferred and equity securities, at fair value | 647 | 722 |
Equity securities | ||
Investments: | ||
Preferred and equity securities, at fair value | $ 109 | $ 101 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Fixed maturity securities, available-for-sale securities, amortized cost | $ 40,374 | $ 35,723 |
Fixed maturity securities, available-for-sale securities, allowance for credit losses | 32 | 31 |
Investments in unconsolidated affiliates at fair value | 197 | 23 |
Allowance for credit losses | 64 | 42 |
Allowance for doubtful accounts, reinsurance recoverables | $ 9 | $ 10 |
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 |
Common stock, outstanding (in shares) | 125,591,479 | 126,409,904 |
Common stock, issued (in shares) | 126,386,605 | 126,409,904 |
Treasury stock (in shares) | 795,126 | 7,762 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||||
Revenues: | |||||||
Life insurance premiums and other fees | $ 576 | $ 71 | $ 941 | $ 667 | |||
Interest and investment income | 525 | 425 | 1,044 | 876 | |||
Recognized gains and (losses), net | 67 | (426) | 52 | (723) | |||
Total revenues | 1,168 | 70 | 2,037 | 820 | |||
Costs and Expenses [Abstract] | |||||||
Benefits and other changes in policy reserves (remeasurement gains (losses) | [1] | 817 | (377) | 1,629 | (174) | ||
Market risk benefit (gains) losses | (30) | (189) | 29 | (119) | |||
Depreciation and amortization | 104 | 80 | 194 | 156 | |||
Personnel costs | 56 | 34 | 109 | 64 | |||
Other operating expenses | 33 | 31 | 69 | 49 | |||
Interest expense | 25 | 9 | 47 | 17 | |||
Total expenses | 1,005 | (412) | 2,077 | (7) | |||
Earnings (loss) before income taxes | 163 | 482 | (40) | 827 | |||
Income tax expense | 33 | 97 | 25 | 203 | |||
Net earnings (loss) | $ 130 | $ 385 | $ (65) | $ 624 | |||
Basic | |||||||
Net earnings (loss) per share, basic (in usd per share) | $ 1.04 | $ 3.60 | $ (0.52) | $ 5.89 | |||
Diluted | |||||||
Net earnings (loss) per share, diluted (in usd per share) | $ 1.04 | $ 3.60 | $ (0.52) | $ 5.89 | |||
Weighted average shares outstanding F&G common stock, basic basis (in shares) | [2] | 125,000 | 107,000 | 106,000 | |||
Weighted average shares outstanding F&G common stock, diluted basis (in shares) | 125,000 | [2] | 107,000 | 106,000 | [2] | ||
[1]The remeasurement losses for the three and six months ended June 30, 2023 were $(1) million and $(5) million, respectively. The remeasurement losses for the three and six months ended June 30, 2022 were $(2) million and $(4) million, respectively.[2]Weighted average shares outstanding for the three and six months ended June 30, 2022 retrospectively include the effects of the 105,000 for 1 stock split that occurred on June 24, 2022. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 24, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | |||||
Remeasurement losses | $ (1) | $ (2) | $ (5) | $ (4) | |
Stock split, conversion ratio | 105,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net earnings (loss) | $ 130 | $ 385 | $ (65) | $ 624 | |
Other comprehensive earnings: | |||||
Change in current discount rate - liability for future policy benefits | [1] | 57 | 310 | (43) | 602 |
Changes in instrument-specific credit risk - market risk benefits | [2] | (4) | 50 | 3 | 83 |
Unrealized gain (loss) on investments and other financial instruments, net of deferred income taxes | [3] | (161) | (1,873) | 160 | (3,726) |
Unrealized gain (loss) on foreign currency translation | [4] | 1 | (4) | 2 | (6) |
Reclassification adjustments for change in unrealized gains and losses included in net earnings | [5] | 45 | 52 | 86 | 79 |
Other comprehensive gain (loss) earnings | (62) | (1,465) | 208 | (2,968) | |
Comprehensive gain (loss) earnings | $ 68 | $ (1,080) | $ 143 | $ (2,344) | |
[1]Net of income tax (benefit) expense of $15 million and $82 million for the three months ended June 30, 2023 and 2022, respectively, and $(12) million and $160 million for the six months ended June 30, 2023 and 2022, respectively.[2]Net of income tax (benefit) expense of $(1) million and $13 million for the three months ended June 30, 2023 and 2022, respectively, $1 million and $22 million for the six months ended June 30, 2023 and 2022, respectively.[3]Net of income tax (benefit) expense of $(43) million and $(516) million for the three months ended June 30, 2023 and 2022, respectively, $43 million and $(888) million for the six months ended June 30, 2023 and 2022, respectively.[4]Net of income tax (benefit) expense of $— million and $(2) million for the three months ended June 30, 2023 and 2022, respectively, $— million and $(2) million for the six months ended June 30, 2023 and 2022, respectively.[5]Net of income tax (benefit) expense of $12 million and $14 million for the three months ended June 30, 2023 and 2022, respectively, $23 million and $21 million for the six months ended June 30, 2023 and 2022, respectively. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Changes in current discount rate - future policy benefits tax (benefit) expense | $ 15 | $ 82 | $ (12) | $ 160 |
Changes in instrument-specific credit risk - market risk benefits, tax (benefit) expense | (1) | 13 | 1 | 22 |
Unrealized gain (loss) on investments and other financial instruments, net of deferred income taxes, tax (benefit) expense | (43) | (516) | 43 | (888) |
Unrealized gain (loss) on foreign currency translation, tax (benefit) expense | 0 | (2) | 0 | (2) |
Reclassification adjustments for change in unrealized gains and losses included in net earnings tax (benefit) expense | $ 12 | $ 14 | $ 23 | $ 21 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings (Loss) | Treasury Stock | |
Balance, Beginning at Dec. 31, 2021 | $ 5,034 | $ 2,750 | $ 1,451 | $ 833 | ||
Unrealized gain (loss) on investments and other financial instruments | (3,726) | [1] | (3,726) | |||
Unrealized gain (loss) on foreign currency translation | (6) | (6) | ||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 79 | [2] | 79 | |||
Stock-based compensation | 6 | 6 | ||||
Change in instrument-specific credit risk - market risk benefits | 83 | [3] | 83 | |||
Change in current discount rate - future policy benefits | 602 | [4] | 602 | |||
Conversion of debt to equity | 400 | 400 | ||||
Net earnings (loss) | 624 | 624 | ||||
Balance, Ending at Jun. 30, 2022 | 3,096 | 3,156 | 2,075 | (2,135) | ||
Balance, Beginning at Mar. 31, 2022 | 3,773 | 2,753 | 1,690 | (670) | ||
Unrealized gain (loss) on investments and other financial instruments | (1,873) | [1] | (1,873) | |||
Unrealized gain (loss) on foreign currency translation | (4) | (4) | ||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 52 | [2] | 52 | |||
Stock-based compensation | 3 | 3 | ||||
Change in instrument-specific credit risk - market risk benefits | 50 | [3] | 50 | |||
Change in current discount rate - future policy benefits | 310 | [4] | 310 | |||
Conversion of debt to equity | 400 | 400 | ||||
Net earnings (loss) | 385 | 385 | ||||
Balance, Ending at Jun. 30, 2022 | 3,096 | 3,156 | 2,075 | (2,135) | ||
Balance, Beginning at Dec. 31, 2022 | 2,405 | 3,162 | 2,061 | (2,818) | ||
Treasury stock repurchased | (16) | $ (16) | ||||
Unrealized gain (loss) on investments and other financial instruments | 160 | [1] | 160 | |||
Unrealized gain (loss) on foreign currency translation | 2 | 2 | ||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 86 | [2] | 86 | |||
Stock-based compensation | 11 | 11 | ||||
Change in instrument-specific credit risk - market risk benefits | 3 | [3] | 3 | |||
Change in current discount rate - future policy benefits | (43) | [4] | (43) | |||
Dividends declared | (25) | (25) | ||||
Net earnings (loss) | (65) | (65) | ||||
Balance, Ending at Jun. 30, 2023 | 2,518 | 3,173 | 1,971 | (2,610) | (16) | |
Balance, Beginning at Mar. 31, 2023 | 2,485 | 3,167 | 1,866 | (2,548) | ||
Treasury stock repurchased | (16) | (16) | ||||
Unrealized gain (loss) on investments and other financial instruments | (161) | [1] | (161) | |||
Unrealized gain (loss) on foreign currency translation | 1 | 1 | ||||
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 45 | [2] | 45 | |||
Stock-based compensation | 6 | 6 | ||||
Change in instrument-specific credit risk - market risk benefits | (4) | [3] | (4) | |||
Change in current discount rate - future policy benefits | 57 | [4] | 57 | |||
Dividends declared | (25) | (25) | ||||
Net earnings (loss) | 130 | 130 | ||||
Balance, Ending at Jun. 30, 2023 | $ 2,518 | $ 3,173 | $ 1,971 | $ (2,610) | $ (16) | |
[1]Net of income tax (benefit) expense of $(43) million and $(516) million for the three months ended June 30, 2023 and 2022, respectively, $43 million and $(888) million for the six months ended June 30, 2023 and 2022, respectively.[2]Net of income tax (benefit) expense of $12 million and $14 million for the three months ended June 30, 2023 and 2022, respectively, $23 million and $21 million for the six months ended June 30, 2023 and 2022, respectively.[3]Net of income tax (benefit) expense of $(1) million and $13 million for the three months ended June 30, 2023 and 2022, respectively, $1 million and $22 million for the six months ended June 30, 2023 and 2022, respectively.[4]Net of income tax (benefit) expense of $15 million and $82 million for the three months ended June 30, 2023 and 2022, respectively, and $(12) million and $160 million for the six months ended June 30, 2023 and 2022, respectively. |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net earnings (loss) | $ (65) | $ 624 |
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 194 | 156 |
(Gain) loss on sales of investments and other assets and asset impairments, net | 324 | 73 |
Interest credited/index credits to contractholder account balances | 857 | (827) |
Change in market risk benefits, net | 29 | (119) |
Deferred policy acquisition costs and deferred sales inducements | (518) | (371) |
Charges assessed to contractholders for mortality and administration | (122) | (107) |
Distributions from unconsolidated affiliates, return on investment | 45 | 24 |
Stock-based compensation cost | 11 | 6 |
Change in NAV of limited partnerships, net | (96) | (172) |
Change in valuation of derivatives, equity and preferred securities, net | (377) | 648 |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Change in reinsurance recoverable | (27) | 103 |
Change in future policy benefits | 421 | 330 |
Change in funds withheld from reinsurers | 1,980 | 617 |
Net change in income taxes | 14 | 187 |
Net change in other assets and other liabilities | 147 | (444) |
Net cash provided by (used in) operating activities | 2,817 | 728 |
Cash Flows from Investing Activities: | ||
Proceeds from sales, calls and maturities of investment securities | 1,920 | 3,150 |
Additions to property and equipment and capitalized software | (14) | (20) |
Purchases of investment securities | (6,907) | (6,553) |
Net proceeds from (purchases of) sales and maturities of short-term investment securities | 1,219 | 3 |
Additional investments in unconsolidated affiliates | (651) | (688) |
Distributions from unconsolidated affiliates, return of investment | 187 | 71 |
Net cash used in investing activities | (4,246) | (4,037) |
Cash Flows from Financing Activities: | ||
Borrowings | 500 | 0 |
Debt issuance costs | (9) | 0 |
Net revolving credit facility (repayments) borrowings | (35) | 0 |
Dividends paid | (50) | 0 |
Purchases of treasury stock | (16) | 0 |
Contractholder account deposits | 3,847 | 4,512 |
Contractholder account withdrawals | (2,080) | (1,744) |
Net cash provided by (used in) financing activities | 2,157 | 2,768 |
Net increase (decrease) in cash and cash equivalents | 728 | (541) |
Cash and cash equivalents at beginning of period | 960 | 1,533 |
Cash and cash equivalents at end of period | $ 1,688 | $ 992 |
Basis of Financial Statements
Basis of Financial Statements | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | Basis of Financial Statements The financial information in this report presented for interim periods is unaudited and includes the accounts of F&G Annuities & Life, Inc. (“FGAL”) and its subsidiaries (collectively, “we”, “us”, “our”, the "Company" or “F&G”) prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022, filed on February 27, 2023, as amended by Amendment No. 1 on Form 10-K/A filed on April 27, 2023, (collectively our “Annual Report”) and our Current Report on Form 8-K, filed on July 13, 2023, to update our Annual Report for changes in accounting for long-duration contracts by insurance companies as discussed below in “ Recent Developments .” Description of the Business F&G is a majority-owned subsidiary of Fidelity National Financial, Inc. (NYSE:FNF)("FNF"). We provide insurance solutions and market a broad portfolio of annuity and life insurance products, including deferred annuities (fixed indexed annuities (“FIA”) and fixed rate annuities including multi-year guarantee annuities (“MYGAs”)), 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. For certain disclosures within this Quarterly Report on Form 10-Q, we have elected to aggregate business based on the applicable product type, the manner in which information is regularly reviewed by management and the nature of disclosures that exist outside the Company’s GAAP financial statements. Recent Developments Adoption of Accounting Standards Update (“ASU”) 2018-12, Financial Services-Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”) F&G adopted ASU 2018-12 on January 1, 2023, with a transition date of January 1, 2021, or the beginning of the earliest period that will be presented in the annual December 31, 2023 Consolidated Financial Statements. We elected to adopt ASU 2018-12 using the full retrospective transition method and balances for liability for future policy benefits (“FPB”), deferred acquisition costs ("DAC”) and balances amortized on a basis consistent with DAC (value of business acquired ("VOBA”), deferred sales inducements (“DSI”), and unearned revenue liabilities (“URL”)), and market risk benefits (“MRBs”) were adjusted to conform to ASU 2018-12 starting as of the FNF acquisition date, June 1, 2020 (the “FNF Acquisition Date”). The 2022 and 2021 financial information contained herein have been adjusted for our full retrospective adoption of this update. For more information, refer to Recent Accounting Pronouncement s and Updates to Summary of significant accounting policies below and Note F — Intangibles , Note G — Market Risk Benefits, Note H — Income Taxes, Note I — Contractholder Funds , Note J — Future Policy Benefits , Note K — Accounts Payable and Accrued Liabilities , and Note P — ASU 2018-12 Transition . Share Repurchase Program On March 21, 2023, F&G’s Board of Directors approved a new three-year stock repurchase program, effective March 21, 2023, under which the Company may repurchase up to $25 million of FG common stock. The Company believes its shares are undervalued and the share repurchase program is an efficient means of returning cash to shareholders. Purchases may be made from time to time by the Company in the open market at prevailing market prices or in privately negotiated transactions through March 21, 2026 and all purchases are currently planned to be held as Treasury Stock. The extent to which the Company repurchases its shares, and the timing of such purchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other considerations, as determined by the Company. During the three and six months ended June 30, 2023, the Company purchased approximately 790 thousand shares pursuant to the program, for a total cost of approximately $16 million with an average cost per share of $20.79. Approximately $9 million of F&G common stock may yet be purchased under the program. Owned Distribution Investments On June 20, 2023, F&G purchased a 40% minority ownership stake in DCMT Worldwide, LLC (“DCMT”). DCMT distributes life insurance and annuity products through a network of over 1,000 agents. On January 30, 2023, F&G purchased a 49% minority ownership stake in Syncis Holdings, LLC (“Syncis”). Syncis is an approximately 1,200 agent Network Marketing Group (“NMG”). We have elected the fair value option (“FVO”) to account for these investments and have included them in Investments in unconsolidated affiliates on the accompanying Condensed Consolidated Balance Sheets. For the six months ended June 30, 2023, we paid approximately $77 million in commissions on sales through our new and prior owned distribution investments and their affiliates, with the acquisition expense deferred and amortized in Depreciation and amortization on the accompanying unaudited Condensed Consolidated Statements of Operations. 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. Revolving Credit Facility On November 22, 2022, F&G 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. As of June 30, 2023, we had $515 million drawn on the revolving credit facility with $150 million of remaining borrowing availability. Earnings Per Share Basic earnings per share, as presented on the unaudited Condensed Consolidated Statements of Operations, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such period. In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted loss per share is equal to basic loss per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. Recent Accounting Pronouncements Adopted Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-12, 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 FPB and limited-payment contracts must be updated at each reporting date with the effect of changes in the rate being recognized in accumulated other comprehensive income (loss) (“AOCI”); MRB 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 AOCI; 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 roll forwards of beginning to ending balances of the FPBs, Contractholder funds, 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. We adopted this standard, which required the new guidance be applied as of the beginning of the earliest period that will be presented in our annual December 31, 2023 Consolidated Financial Statements or January 1, 2021, referred to as the transition date, and elected the full retrospective transition method. As a result of adoption, the Company recorded a cumulative-effect adjustment, which increased opening 2021 retained earnings by $75 million, net of tax. 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 to date. Updates to Summary of significant accounting policies Since our Annual Report for the year ended December 31, 2022, as a result of our adoption of ASU 2018-12, we have updated certain of the following significant accounting policies, which have been followed in preparing the accompanying unaudited Condensed Consolidated Financial Statements: 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 AOCI, net of 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 securities 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 unaudited Condensed Consolidated Statements of Operations. 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. Investments in Unconsolidated Affiliates We account for our investments in unconsolidated affiliates using the equity method or by electing the fair value option. Initial investments are recorded at cost. For investments subsequently measured using the equity method (primarily limited partnerships), adjustments to the carrying amount reflect our pro rata ownership percentage of the operating results as indicated by net asset value (“NAV”) in the unconsolidated affiliates’s financial statements, which we may adjust if we determine NAV is not calculated consistent with investment company fair value principles. Distributions received are recorded as a decrease in the investment balance. For investments subsequently measured using the fair value option, adjustments to the carrying amount reflecting the change in fair value of the investment are reported along with realized gains and losses on sales of investments in unconsolidated affiliates in Recognized gains and (losses), net in the accompanying unaudited Condensed Consolidated Statements of Operations. Other income from investments in unconsolidated affiliates, including distributions received from investments measured using the fair value option, is reported within Interest and investment income in the accompanying unaudited Condensed Consolidated Statements of Operations. Recognition of income and adjustments to the carrying amount can be delayed due to the availability of the related financial statements, which are obtained from the general partner or managing member generally on a one to three-month delay. For investments using the equity method, management inquires quarterly with the general partner or managing member 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. VOBA, DAC, DSI and URL 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. DAC consists principally of commissions and other acquisition costs that are related directly to the successful sale of new or renewal insurance contracts. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. DSI represents up front bonus credits and persistency or vesting bonuses credited to contractholder fund balances. VOBA, DAC, and DSI are amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. Contracts are grouped by product type and feature and issue year into cohorts consistent with the grouping used in estimating the associated liability, where applicable. The constant level amortization bases of VOBA, DAC and DSI varies by product type. For universal life and IUL insurance products, the constant level basis used is face amount in force. For deferred annuities (FIA and fixed rate annuities), the constant level basis used is initial premium deposit for DAC and DSI and vested account value as of the acquisition date for VOBA. For immediate annuity contracts, the VOBA balance is amortized in alignment with the Company’s accounting policy of amortizing the deferred profit liability (“DPL”). All amortization bases are adjusted by full lapses, which includes deaths, full surrenders, annuitizations and maturities, where applicable. The constant level bases used for amortization are projected using mortality and lapse assumptions that are based on Company’s experience, industry data, and other factors and are consistent with those used for the FPB, where applicable. If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at that time. Unexpected contract terminations, due to higher mortality and/or lapse experience than expected, are recognized in the current period as a reduction of the capitalized balances. All balances are reduced for actual experience in excess of expected experience with changes in future estimates recognized prospectively over the remaining expected grouped contract term. The impact of changes in projected assumptions and the impact of actual experience that is different from expectations both impact the amortization of these intangible assets, which is reported within Depreciation and amortization in the accompanying unaudited Condensed Consolidated Statements of Operations. Some of our IUL policies require payment of fees or other policyholder assessments in advance for services that will be rendered over the estimated lives of the policies or contracts. These payments are established as URL upon receipt and included in Accounts payable and other accrued liabilities in the Condensed Consolidated Balance Sheets. URL is amortized like DAC over the estimated lives of these policies. Contractholder Funds Contractholder funds include deferred annuities (FIAs and fixed rate annuities), IULs, funding agreements and non-life contingent (“NLC”) immediate annuities (which includes NLC PRT annuities). The liabilities for Contractholder funds for fixed rate annuities, funding agreements and NLC immediate annuities (which includes NLC PRT annuities) 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 liability is carried at fair value in Contractholder funds in the accompanying Condensed Consolidated Balance Sheets with changes in fair value reported in Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Operations. See a description of the fair value methodology used in Note B - Fair Value of Financial Instruments . Future Policy Benefits The FPB is determined as the present value of future policy benefits and related claims expenses to be paid to or on behalf of the policyholder less the present value of future net premiums to be collected from policyholders. The FPB for traditional life policies and life-contingent immediate annuity policies (which includes life-contingent PRT annuities) are estimated using current assumptions that include discount rate, mortality and surrender/lapse terminations for traditional life insurance policies only, and expenses. The expense assumption is locked-in at contract issuance and not subsequently reviewed or updated. The initial assumptions are based on generally accepted actuarial methods and a combination of internal and industry experience. Policies are terminated through surrenders, lapses and maturities, where surrenders represent the voluntary terminations of policies by policyholders, lapses represent cancellations by us due to nonpayment of premiums, and maturities are determined by policy contract terms. Surrender assumptions are based upon policyholder behavior experience adjusted for expected future conditions. For traditional life policies and life-contingent immediate annuity policies, contracts are grouped into cohorts by product type, legal entity, and issue year, or acquisition year for cohorts established as of the FNF Acquisition Date. Life-contingent PRT annuities are grouped into cohorts by deal and legal entity. At contract inception, a net premium ratio (“NPR”) is determined, which is calculated based on discounted future cash flows projected using best estimate assumptions and is capped at 100%, as net premiums cannot exceed gross premiums. Cohorts with NPRs less than 100% are not used to offset cohorts with NPRs greater than 100%. The NPR is adjusted for changes in cash flow assumptions and for differences between actual and expected experience. We assess the appropriateness of all future cash flow assumptions, excluding the expense assumption, on a quarterly basis and perform an in-depth review of future cash flow assumptions in the third quarter of each year. Updates are made when evidence suggests a revision is necessary. Updates for actual experience, which includes actual cash flows and insurance in-force, are performed on a quarterly basis. These updated cash flows are used to calculate a revised NPR, which is used to derive an updated liability as of the beginning of the current reporting period, discounted at the original contract issuance date. The updated liability is compared with the carrying amount of the liability as of that same date before the revised NPR. The difference between these amounts is the remeasurement gain or loss, presented parenthetically within Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Operations. In subsequent periods, the revised NPR, which is capped at 100%, is used to measure the FPB, subject to future revisions. If the NPR is greater than 100%, and therefore capped at 100%, the liability is increased and expensed immediately to reflect the amount necessary for net premiums to equal gross premiums. As the liability assumptions are reviewed and updated, if deemed necessary, at least annually, if conditions improve whereby the contracts are no longer expected to have net premiums in excess of gross premiums, the improvements would be captured in the remeasurement process and reflected in the accompanying unaudited Condensed Consolidated Statements of Operations in the period of improvement. For traditional life policies and life-contingent immediate annuity policies (which includes life-contingent PRT annuities), the discount rate assumption is an equivalent single rate that is derived based on A-credit-rated fixed-income instruments with similar duration to the liability. We selected fixed-income instruments that have been A-rated by Bloomberg. In order to reflect the duration characteristics of the liability, we will use an implied forward yield curve and linear interpolation will be used for durations that have limited or no market observable points on the curve. The discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change reflected in the accompanying unaudited Condensed Consolidated Statements of Comprehensive Earnings. Deferred Profit Liability For life-contingent immediate annuity policies (which includes life-contingent PRT annuities), gross premiums received in excess of net premiums are deferred at initial recognition as a DPL. Gross premiums are measured using assumptions consistent with those used in the measurement of the related liability for FPBs, including discount rate, mortality, and expenses. The DPL is amortized and recognized as premium revenue with the amount of expected future benefit payments, discounted using the same discount rate determined and locked-in at contract issuance that is used in the measurement of the related FPB. Interest is accreted on the balance of the DPL using this same discount rate. We periodically review and update our estimates of using the actual historical experience and updated cash flows for the DPL at the same time as the estimates of cash flows for the FPB. When cash flows are updated, the updated estimates are used to recalculate the initial DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period, with any differences recognized as a remeasurement gain or loss, presented parenthetically within Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Operations. The DPL is recorded as a component of the Future policy benefits in the accompanying Condensed Consolidated Balance Sheets. Market Risk Benefits MRBs are contracts or contract features that both provide protection to the contract holder from other-than-nominal capital market risk (equity, interest rate and foreign exchange risk) and expose the Company to other-than-nominal capital market risk. MRBs include certain contract features primarily on FIA products that provide minimum guarantees to policyholders, such as guaranteed minimum death benefit (“GMDB”) and guaranteed minimum withdrawal benefit (“GMWB”) riders. MRBs are measured at fair value using an attributed fee measurement approach where attributed fees are explicit rider charges collectible from the policyholder used to cover the excess benefits, which represent expected benefits in excess of the policyholder’s account value. At contract inception, an attributed fee ratio is calculated equal to rider charges over benefits paid in excess of the account value attributable to the MRB. The attributed fee ratio remains static over the life of the MRB and is capped at 100%. Each period subsequent to contract inception, the attributed fee ratio is used to calculate the fair value of the MRB using a risk neutral valuation method and is based on current net amounts at risk, market data, internal and industry experience, and other factors. The balances are computed using assumptions including mortality, full and partial surrender, GMWB utilization, risk-free rates including non-performance spread and risk margin, market value of options and economic scenarios. Policyholder behavior assumptions are reviewed at least annually, typically in the third quarter, for any revisions. MRBs can either be in an asset or liability position and are presented separately on the Condensed Consolidated Balance Sheets as the right of setoff criteria are not met. Changes in fair value are recognized in Market risk benefits gain (losses) in the unaudited Condensed Consolidated Statements of Operations, except for the change in fair value due to a change in the instrument-specific credit risk, which is recognized in the unaudited Condensed Consolidated Statements of Comprehensive Earnings. See a description of the fair value methodology used in Note B - Fair Value of Financial Instruments and Note G - Market Risk Benefits . Benefits and Other Changes in Policy Reserves Benefit expenses for deferred annuities (FIAs and fixed rate annuities), IUL policies and funding agreements include interest credited, fixed interest and/or indexed (specific to FIA and IUL policies), 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. Other changes in policy reserves include the change in the fair value of the FIA embedded derivative. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
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. Net asset value ("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 unconsolidated affiliate’s 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 unconsolidated affiliates 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 inquires 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, was summarized according to the hierarchy previously described, as follows (in millions): June 30, 2023 Level 1 Level 2 Level 3 NAV Fair Value Carrying Amount Assets Cash and cash equivalents $ 1,688 $ — $ — $ — $ 1,688 $ 1,688 Fixed maturity securities available-for-sale: Asset-backed securities — 6,330 6,510 — 12,840 12,840 Commercial mortgage-backed securities — 3,932 17 — 3,949 3,949 Corporates — 13,148 1,618 — 14,766 14,766 Hybrids 95 582 — — 677 677 Municipals — 1,509 49 — 1,558 1,558 Residential mortgage-backed securities — 1,983 28 — 2,011 2,011 U.S. Government 211 — — — 211 211 Foreign Governments — 154 16 — 170 170 Preferred securities 203 438 6 — 647 647 Equity securities 68 — — 41 109 109 Derivative investments — 648 — — 648 648 Investment in unconsolidated affiliates — — 197 — 197 197 Short term investments 176 45 126 — 347 347 Reinsurance related embedded derivative, included in other assets — 277 — — 277 277 Other long-term investments — — 49 — 49 49 Market risk benefits asset — — 118 — 118 118 Total financial assets at fair value $ 2,441 $ 29,046 $ 8,734 $ 41 $ 40,262 $ 40,262 Liabilities Derivatives: FIA/IUL embedded derivatives, included in contractholder funds — — 3,821 — 3,821 3,821 Market risk benefits liability — — 313 — 313 313 Total financial liabilities at fair value $ — $ — $ 4,134 $ — $ 4,134 $ 4,134 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 Investment in unconsolidated affiliates — — 23 — 23 23 Short term investments 1,556 — — — 1,556 1,556 Reinsurance related embedded derivative, included in other assets — 279 — — 279 279 Other long-term investments — — 48 — 48 48 Market risk benefits asset — — 117 — 117 117 Total financial assets at fair value $ 2,943 $ 24,016 $ 8,262 $ 47 $ 35,268 $ 35,268 Liabilities Derivatives: FIA/IUL embedded derivatives, included in contractholder funds — — 3,115 — 3,115 3,115 Market risk benefits liability — — 282 — 282 282 Total financial liabilities at fair value $ — $ — $ 3,397 $ — $ 3,397 $ 3,397 Valuation Methodologies Cash and Cash Equivalents The carrying amounts reported in the Condensed 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 June 30, 2023 or December 31, 2022. 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 June 30, 2023 and December 31, 2022 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. The fair value of the reinsurance-related embedded derivatives in the funds withheld reinsurance agreements with Somerset Reinsurance Ltd. (“Somerset”), a certified third party reinsurer, and ASPIDA Life Re Ltd (“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 E - Reinsurance for further discussion on F&G reinsurance agreements. Investments in Unconsolidated affiliates We have elected the fair value option for certain investments in unconsolidated affiliates as we believe this better aligns them with other investments in unconsolidated affiliates that are measured using NAV as a practical expedient in determining fair value. Investments measured using the fair value option are included in Level 3 and the fair value of these investments are determined using a multiple of the affiliates’ EBITDA, which is derived from market analysis of transactions involving comparable companies. The EBITDA used in this calculation is based on the affiliates’ financial information. The inputs are usually considered unobservable, as not all market participants have access to this data. Short-term Investments The carrying amounts reported in the Condensed 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 NAV 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 NAV of the fund on the maturity date. A Black-Scholes model determines the NAV 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 NAV 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. Market Risk Benefits MRBs are measured at fair value using an attributed fee measurement approach where attributed fees are explicit rider charges collectible from the policyholder used to cover the excess benefits. The fair value is calculated using a risk neutral valuation method and is based on current net amounts at risk, market data, internal and industry experience, and other factors. The balances are computed using assumptions including mortality, full and partial surrender, rider benefit utilization, risk-free rates including non-performance spread and risk margin, market value of options and economic scenarios. Policyholder behavior assumptions are reviewed at least annually, typically in the third quarter, for any revisions. See further discussion on MRBs in Note G - Market Risk Benefits . Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of June 30, 2023 and December 31, 2022 are as follows (in millions): Valuation Technique Unobservable Input(s) Range (Weighted average) Fair Value at June 30, 2023 June 30, 2023 Assets Asset-backed securities $ 6,233 Broker-Quoted Offered Quotes 54.70% - 171.9% (94.28%) Asset-backed securities 277 Third-Party Valuation Offered Quotes 39.65% - 101.77% (62.08%) Commercial mortgage-backed securities 17 Third-Party Valuation Offered Quotes 79.35% - 88.61% (84.76%) Corporates 789 Broker-Quoted Offered Quotes 46.39% - 104.74% (95.87%) Corporates 829 Third-Party Valuation Offered Quotes 0.00% - 103.12% (89.85%) Municipals 31 Third-Party Valuation Offered Quotes 102.11% - 102.11% (102.11%) Municipals 18 Broker-Quoted Offered Quotes 101.20% - 101.20% (101.20%) Valuation Technique Unobservable Input(s) Range (Weighted average) Fair Value at June 30, 2023 June 30, 2023 Residential mortgage-backed securities 25 Broker-Quoted Offered Quotes 0.00% - 90.45% (90.00%) Residential mortgage-backed securities 3 Third-Party Valuation Offered Quotes 93.11%-93.11% (93.11%) Foreign governments 16 Third-Party Valuation Offered Quotes 99.04% - 99.68% (99.24%) Investment in unconsolidated affiliates 197 Market Comparable Company Analysis EBITDA Multiple 5x-16x (12x) Short term investments 126 Broker-Quoted Offered Quotes 100.00% - 100.02% (100.01%) Preferred securities 6 Broker-Quoted Offered Quotes $21.25 -$21.25 ($21.25) Other long-term investments: Available-for-sale embedded derivative 26 Black Scholes Model Market Value of Fund 100% Secured borrowing receivable 10 Broker-Quoted Offered Quotes 100.00% - 100.00% (100.00%) Credit Linked Note 13 Broker-Quoted Offered Quotes 96.99% Market risk benefits asset 118 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.03%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.55% - 1.37% (1.17%) GMWB Utilization 50.00% - 60.00% (50.85%) Total financial assets at fair value $ 8,734 Liabilities Derivatives: FIA/IUL embedded derivatives, included in contractholder funds $ 3,821 Discounted Cash Flow Market Value of Option 0.00% - 30.03% (2.36%) Swap Rates 3.81% - 5.47% (4.64%) Mortality Multiplier 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 70.00% (6.61%) Partial Withdrawals 2.00% - 34.48% (2.74%) Non-Performance Spread 0.55% - 1.37% (1.17%) Option cost 0.07% - 5.67% (2.22%) Market risk benefits liability 313 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.03%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.55% - 1.37% (1.17%) GMWB Utilization 50.00% - 60.00% (50.85%) Total financial liabilities at fair value $ 4,134 Valuation Technique Unobservable Input(s) Range (Weighted average) Fair Value at December 31, 2022 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 0.00% - 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)% Investment in unconsolidated affiliates 23 Market Comparable Company Analysis EBITDA Multiple 5x-5.5x 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% Market risk benefits asset 117 Discounted Cash flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (4.69%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.48% - 1.44% (1.30%) GMWB Utilization 50.00% - 60.00% (50.94%) Total financial assets at fair value $ 8,262 Liabilities Derivatives: 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%) Valuation Technique Unobservable Input(s) Range (Weighted average) Fair Value at December 31, 2022 December 31, 2022 Market risk benefits liability 282 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (4.69%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.48% - 1.44% (1.30%) GMWB Utilization 50.00% - 60.00% (50.94%) Total financial liabilities at fair value $ 3,397 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 three and six months ended June 30, 2023 and June 30, 2022 (in millions). 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. Three months ended June 30, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Gains (Losses) Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 6,300 $ (3) $ 15 $ 379 $ (15) $ (151) $ (15) $ 6,510 $ 14 Commercial mortgage-backed securities 29 — — — — — (12) 17 — Corporates 1,532 — (33) 125 — (14) 8 1,618 (33) Municipals 32 — 17 — — — — 49 17 Residential mortgage-backed securities 12 — — 24 — — (8) 28 — Foreign governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 107 — — 90 — — — 197 — Short-term 23 — — 103 — — — 126 — Preferred securities — — — — — — 6 6 — Other long-term investments: Available-for-sale embedded derivative 25 — 1 — — — — 26 1 Credit linked note 13 — — — — — — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal assets at Level 3 fair value $ 8,099 $ (3) $ — $ 721 $ (15) $ (165) $ (21) $ 8,616 $ (1) Market risk benefits asset (b) 106 118 Total assets at Level 3 fair value $ 8,205 $ 8,734 Liabilities FIA/ IUL embedded derivatives, included in contractholder funds 3,569 197 — 93 — (38) — 3,821 — Subtotal liabilities at Level 3 fair value $ 3,569 $ 197 $ — $ 93 $ — $ (38) $ — $ 3,821 $ — Market risk benefits liability (b) 324 313 Total liabilities at Level 3 fair value $ 3,893 $ 4,134 (a) The net transfers out of Level 3 during the three months ended June 30, 2023 were exclusively to Level 2. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. Three months ended June 30, 2022 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 $ 4,161 $ 1 $ (142) $ 827 $ (39) $ (126) $ (5) $ 4,677 $ (153) Commercial mortgage-backed securities 40 — (3) — — — — 37 (2) Corporates 1,126 — (64) 304 — (6) (4) 1,356 (61) Municipals 37 — (4) — — — — 33 (4) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 17 — (1) — — — — 16 (1) Investment in unconsolidated affiliates 21 — — — — — — 21 — Short-term 19 — — — — — (19) — — Other long-term investments: Available-for-sale embedded derivative 30 (6) — — — — — 24 — Credit linked note 19 — — — — (2) — 17 — Secured borrowing receivable — — — — — — 10 10 — Subtotal assets at Level 3 fair value $ 5,470 $ (5) $ (214) $ 1,140 $ (39) $ (134) $ (18) $ 6,200 $ (221) Market risk benefits asset (b) 29 86 Total assets at Level 3 fair value $ 5,499 $ 6,286 Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,395 (575) — 146 — (25) — 2,941 — Subtotal liabilities at Level 3 fair value $ 3,395 $ (575) $ — $ 146 $ — $ (25) $ — $ 2,941 $ — Market risk benefits liability (b) 486 292 Total liabilities at Level 3 fair value $ 3,881 $ 3,233 (a) The net transfers out of Level 3 during the three months ended June 30, 2023 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. Six months ended June 30, 2023 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 $ 6,263 $ (11) $ 33 $ 795 $ (98) $ (386) $ (86) $ 6,510 $ 32 Commercial mortgage-backed securities 37 — 1 12 — — (33) 17 1 Corporates 1,427 (1) (56) 259 — (19) 8 1,618 (56) Hybrids — — — — — — — — — Municipals 29 — 20 — — — — 49 20 Residential mortgage-backed securities 302 1 8 32 — (8) (307) 28 8 Foreign Governments 16 — — — — — — 16 — Short-term — — — 126 — — — 126 — Preferred securities — — — — — — 6 6 — Other long-term investments: Available-for-sale embedded derivative 23 — 3 — — — — 26 3 Investment in affiliate 23 — — 174 — — — 197 — Credit linked note 15 — — — — (2) — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal assets at Level 3 fair value $ 8,145 $ (11) $ 9 $ 1,398 $ (98) $ (415) $ (412) $ 8,616 $ 8 Market risk benefits asset (b) 117 118 Total assets at Level 3 fair value $ 8,262 $ 8,734 Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,115 582 — 189 — (65) — 3,821 — Subtotal liabilities at Level 3 fair value $ 3,115 $ 582 $ — $ 189 $ — $ (65) $ — $ 3,821 $ — Market risk benefits liability (b) 282 313 Total liabilities at Level 3 fair value $ 3,397 $ 4,134 (a) The net transfers out of Level 3 during the six months ended June 30, 2023 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. Six months ended June 30, 2022 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 3,959 1 (272) 1,227 (39) (278) 79 4,677 $ (291) Commercial mortgage-backed securities 35 — (5) — — — 7 37 (4) Corporates 1,121 — (137) 382 — (32) 22 1,356 (134) Municipals 43 — (10) — — — — 33 (9) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 18 — (2) — — — — 16 (1) Short-term 321 — (1) 20 — — (340) — (1) Preferred securities 1 — (1) — — — — — (1) Other long-term investments: Available-for-sale embedded derivative 34 (10) — — — — — 24 — Credit linked note 23 — (3) — — (3) — 17 — Secured borrowing receivable — — — — — — 10 10 — Investment in affiliate 21 — — — — — — 21 — Subtotal assets at Level 3 fair value $ 5,576 $ (9) $ (431) $ 1,638 $ (39) $ (313) $ (222) $ 6,200 $ (441) Market risk benefits asset (b) 41 86 Total assets at Level 3 fair value $ 5,617 $ 6,286 Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,883 (1,159) — 272 — (55) — 2,941 — Subtotal liabilities at Level 3 fair value $ 3,883 $ (1,159) $ — $ 272 $ — $ (55) $ — $ 2,941 $ — Market risk benefits liability (b) 469 292 Total liabilities at Level 3 fair value $ 4,352 $ 3,233 (a) The net transfers out of Level 3 during the six months ended June 30, 2022 were to Level 2. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. 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 primarily determined using NAV as a practical expedient. 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), IUL policies, 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 deferred annuities (FIA and fixed rate annuities) 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 $500 million aggregate principal amount of its 7.40% Senior Notes due 2028 and the $550 million aggregate principal amount of its 5.50% Senior Notes due 2025 are based on quoted market prices of debt with similar credit risk and tenor. The inputs used to measure the fair value of these debts results in a Level 2 classification within the fair value hierarchy. The carrying value of the revolving credit facility 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 Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described (in millions). June 30, 2023 Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 106 $ — $ — $ 106 $ 106 Commercial mortgage loans — — 2,144 — 2,144 2,457 Residential mortgage loans — |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 1.25 1.00 - 1.25 <1.00 June 30, 2023 LTV Ratios: Less than 50.00% $ 510 $ 4 $ 11 $ 525 21 % $ 491 23 % 50.00% to 59.99% 740 — — 740 30 % 649 30 % 60.00% to 74.99% 1,160 10 — 1,170 48 % 973 46 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Total CMLs (a) $ 2,410 $ 14 $ 29 $ 2,453 100 % $ 2,127 100 % 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 % Total CMLs (a) $ 2,371 $ 7 $ 29 $ 2,407 100 % $ 2,074 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $ 17 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total LTV Less than 50.00% $ 6 $ 67 $ 119 $ 207 $ — $ 126 $ 525 50.00% to 59.99% 27 149 267 158 — 139 740 60.00% to 74.99% 22 113 913 122 — — 1,170 75.00% to 84.99% — 9 — — — 9 18 Total CMLs (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 DSCR Greater than 1.25x $ 48 $ 326 $ 1,299 $ 487 $ — $ 250 $ 2,410 1.00x - 1.25x 7 3 — — — 4 14 Less than 1.00x — 9 — — — 20 29 Total CMLs (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total 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 CMLs (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 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 CMLs (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 (a) Excludes loans under development with an amortized cost and estimated fair value of $ 17 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At June 30, 2023 and December 31, 2022 we had one CML that was delinquent in principal or interest payments as shown in the risk rating exposure table above. Residential Mortgage Loans Residential mortgage loans (“RMLs”) represented approximately 6% of our total investments as of June 30, 2023 and December 31, 2022. Our RMLs 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): June 30, 2023 U.S. State: Amortized Cost % of Total Florida $ 152 5 % New York 131 5 % California 123 5 % All other states (a) 2,264 85 % Total RMLs, gross of valuation allowance $ 2,670 100 % (a) The individual concentration of each state is equal to or less than 5% as of June 30, 2023. 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 RMLs, gross of valuation allowance $ 2,180 100 % (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2022. RMLs 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 non-accrual status, which is assessed monthly. The credit quality of RMLs as of June 30, 2023 and December 31, 2022, was as follows (dollars in millions): June 30, 2023 December 31, 2022 Performance indicators: Amortized Cost % of Total Amortized Cost % of Total Performing $ 2,598 97 % $ 2,118 97 % Non-performing 72 3 % 62 3 % Total RMLs, gross of valuation allowance $ 2,670 100 % $ 2,180 100 % Allowance for expected loan loss (51) — % (32) — % Total RMLs, net of valuation allowance $ 2,619 100 % $ 2,148 100 % RMLs segregated by risk rating exposure as of June 30, 2023 and December 31, 2022, were as follows, gross of valuation allowances (in millions): June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Current (less than 30 days past due) $ 137 $ 963 $ 862 $ 200 $ 192 $ 199 $ 2,553 30-89 days past due — 6 24 5 4 6 45 90 days or more past due — 7 20 15 29 1 72 Total RML mortgages $ 137 $ 976 $ 906 $ 220 $ 225 $ 206 $ 2,670 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Current (less than 30 days past due) $ 766 $ 884 $ 214 $ 185 $ 23 $ 33 $ 2,105 30-89 days past due 2 7 — 4 — — 13 90 days or more past due 3 9 15 34 1 — 62 Total RML mortgages $ 771 $ 900 $ 229 $ 223 $ 24 $ 33 $ 2,180 Non-accrual loans by amortized cost as of June 30, 2023 and December 31, 2022, were as follows (in millions): Amortized cost of loans on non-accrual June 30, 2023 December 31, 2022 Residential mortgage: $ 72 $ 62 Commercial mortgage: 9 9 Total non-accrual mortgages $ 81 $ 71 Immaterial interest income was recognized on non-accrual financing receivables for the three and six months ended June 30, 2023 and June 30, 2022. It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. 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 June 30, 2023 and December 31, 2022, we had $72 million and $62 million, respectively, of RMLs that were over 90 days past due, of which $35 million and $38 million were in the process of foreclosure as of June 30, 2023 and December 31, 2022 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 unaudited Condensed Consolidated Statements of Operations. The allowances for our mortgage loan portfolio are summarized as follows (in millions): Three months ended June 30, 2023 Six months ended June 30, 2023 Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (48) $ (12) $ (60) $ (32) $ (10) $ (42) Provision for loan losses (3) (1) (4) (19) (3) (22) Ending Balance $ (51) $ (13) $ (64) $ (51) $ (13) $ (64) Three months ended June 30, 2022 Six months ended June 30, 2022 Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (26) $ (6) $ (32) $ (25) $ (6) $ (31) Provision for loan losses (3) — (3) (4) — (4) Ending Balance $ (29) $ (6) $ (35) $ (29) $ (6) $ (35) 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 June 30, 2023 and June 30, 2022. Interest and Investment Income The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Fixed maturity securities, available-for-sale $ 448 $ 336 $ 880 $ 655 Equity securities 4 4 9 8 Preferred securities 12 15 22 26 Mortgage loans 57 49 108 88 Invested cash and short-term investments 17 9 33 13 Limited partnerships 44 58 101 171 Other investments 5 1 14 7 Gross investment income 587 472 1,167 968 Investment expense (62) (47) (123) (92) Interest and investment income $ 525 $ 425 $ 1,044 $ 876 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 $76 million and $134 million for the three and six months ended June 30, 2023, respectively, and $20 million and $38 million for the three and six months ended June 30, 2022, respectively. Recognized Gains and (Losses), net Details underlying Recognized gains and (losses), net reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net realized (losses) gains on fixed maturity available-for-sale securities $ (52) $ (59) $ (96) $ (93) Net realized/unrealized (losses) gains on equity securities (a) 3 (20) 8 (22) Net realized/unrealized (losses) gains on preferred securities (b) 5 (83) (4) (150) Realized (losses) gains on other invested assets 15 — 15 (4) Change in allowance for expected credit losses (21) (6) (29) (7) Derivatives and embedded derivatives: Realized (losses) gains on certain derivative instruments (65) (35) (154) 15 Unrealized (losses) gains on certain derivative instruments 164 (359) 311 (717) Change in fair value of reinsurance related embedded derivatives (c) 17 141 (2) 263 Change in fair value of other derivatives and embedded derivatives 1 (5) 3 (8) Realized (losses) gains on derivatives and embedded derivatives 117 (258) 158 (447) Recognized gains and (losses), net $ 67 $ (426) $ 52 $ (723) (a) Includes net valuation (losses) gains of $3 million and $(20) million for the three months ended June 30, 2023 and June 30, 2022, respectively, and net valuation (losses) gains of $8 million and $(22) million for the six months ended June 30, 2023 and June 30, 2022, respectively. (b) Includes net valuation (losses) gains of $19 million and $(83) million for the three months ended June 30, 2023 and June 30, 2022, respectively, and net valuation (losses) gains of $44 million and $(149) million for the six months ended June 30, 2023 and June 30, 2022, respectively. (c) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties with Somerset and Aspida Re. Recognized gains and (losses), net 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 $21 million and $(1) million for the three and six months ended June 30, 2023, respectively, and $151 million and $279 million for the three and six month periods ended June 30, 2022, 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): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Proceeds $ 608 $ 783 $ 1,053 $ 1,795 Gross gains 2 1 5 4 Gross losses (30) (59) (79) (94) 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 Condensed 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 Condensed Consolidated Balance Sheets. Our maximum exposure to loss with respect to these VIEs is limited to the investment carrying amounts reported in our Condensed 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 N - Commitments and Contingencies ). The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 2,803 $ 4,491 $ 2,427 $ 4,030 Fixed maturity securities 18,471 20,853 15,680 17,404 Total unconsolidated VIE investments $ 21,274 $ 25,344 $ 18,107 $ 21,434 Concentrations Our underlying investment concentrations that exceed 10% of shareholders equity are as follows (in millions): June 30, 2023 December 31, 2022 Blackstone Wave Asset Holdco (a) $ 738 $ 741 ELBA (b) 463 470 COLI 316 308 Verus Securitizati" id="sjs-B4">Investments 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 AOCI, net of 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): June 30, 2023 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value AFS securities Asset-backed securities $ 13,492 $ (7) $ 65 $ (710) $ 12,840 $ 12,840 Commercial mortgage-backed securities 4,307 (18) 5 (345) 3,949 3,949 Corporates 17,491 — 43 (2,768) 14,766 14,766 Hybrids 747 — 3 (73) 677 677 Municipals 1,792 — 11 (245) 1,558 1,558 Residential mortgage-backed securities 2,121 (7) 11 (114) 2,011 2,011 U.S. Government 213 — 1 (3) 211 211 Foreign Governments 211 — — (41) 170 170 Total AFS securities $ 40,374 $ (32) $ 139 $ (4,299) $ 36,182 $ 36,182 December 31, 2022 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value AFS 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 AFS securities $ 35,723 $ (31) $ 96 $ (4,570) $ 31,218 $ 31,218 Securities held on deposit with various state regulatory authorities had a fair value of $19,862 million and $17,751 million at June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, the Company held $35 million and $27 million, respectively, of investments that were non-income producing for a period greater than twelve months. As of June 30, 2023 and December 31, 2022, the Company's accrued interest receivable balance was $ 415 358 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 $3,543 million and $3,387 million as of June 30, 2023 and December 31, 2022, respectively. The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below (in millions). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. June 30, 2023 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and U.S. Government Securities: Due in one year or less $ 227 $ 222 $ 124 $ 123 Due after one year through five years 3,116 2,968 2,193 2,059 Due after five years through ten years 2,065 1,862 1,840 1,633 Due after ten years 15,046 12,330 14,417 11,379 Subtotal 20,454 17,382 18,574 15,194 Other securities, which provide for periodic payments: Asset-backed securities 13,492 12,840 12,209 11,467 Commercial mortgage-backed securities 4,307 3,949 3,309 3,036 Residential mortgage-backed securities 2,121 2,011 1,631 1,521 Subtotal 19,920 18,800 17,149 16,024 Total fixed maturity AFS securities $ 40,374 $ 36,182 $ 35,723 $ 31,218 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 unaudited Condensed Consolidated Statements of Operations, 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 unaudited Condensed Consolidated Statements of Operations. 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 unaudited Condensed Consolidated Statements of Operations. The remainder of unrealized loss is held in other comprehensive income in the accompanying unaudited Condensed Consolidated Statements of Equity. The activity in the allowance for expected credit losses of AFS securities aggregated by investment category was as follows (in millions): Three months ended June 30, 2023 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 AFS securities Asset-backed securities $ (10) $ 1 $ — $ 2 $ — $ — $ — $ — $ (7) Commercial mortgage-backed securities — (20) — 2 — — — — (18) Residential mortgage-backed securities (6) (1) — — — — — — (7) Total AFS securities $ (16) $ (20) $ — $ 4 $ — $ — $ — $ — $ (32) Three months ended June 30, 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 AFS securities Asset-backed securities $ (1) $ — $ — $ (1) $ — $ — $ — — $ (2) Commercial mortgage-backed securities (2) — — — 2 — — — — Residential mortgage-backed securities (3) — — — — — — — (3) Total AFS securities $ (6) $ — $ — $ (1) $ 2 $ — $ — $ — $ (5) Six months ended June 30, 2023 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 AFS securities Asset-backed securities $ (8) $ (6) $ — $ 7 $ — $ — $ — — $ (7) Commercial mortgage-backed securities (1) (20) — 3 — — — — (18) Corporates (15) — — — 15 — — — — Residential mortgage-backed securities (7) (1) — 1 — — — — (7) Total AFS securities $ (31) $ (27) $ — $ 11 $ 15 $ — $ — $ — $ (32) Six months ended June 30, 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 AFS securities Asset-backed securities $ (3) $ — $ — $ (1) $ 2 $ — $ — — $ (2) Commercial mortgage-backed securities (2) — — — 2 — — — — Residential mortgage-backed securities (3) — — — — — — — (3) Total AFS securities $ (8) $ — $ — $ (1) $ 4 $ — $ — $ — $ (5) (a) Purchased credit deteriorated financial assets (“PCD”) PCDs 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. There were no purchases of PCD AFS securities during the six months ended June 30, 2023 or for the year ended December 31, 2022. 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 as of June 30, 2023 and December 31, 2022 were as follows (dollars in millions): June 30, 2023 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized AFS securities Asset-backed securities $ 4,219 $ (182) $ 6,220 $ (517) $ 10,439 $ (699) Commercial mortgage-backed securities 1,555 (102) 1,663 (242) 3,218 (344) Corporates 4,598 (294) 8,884 (2,474) 13,482 (2,768) Hybrids 194 (15) 457 (58) 651 (73) Municipals 550 (68) 793 (177) 1,343 (245) Residential mortgage-backed securities 1,031 (17) 619 (93) 1,650 (110) U.S. Government 61 (2) 4 (1) 65 (3) Foreign Government 25 (3) 136 (38) 161 (41) Total AFS securities $ 12,233 $ (683) $ 18,776 $ (3,600) $ 31,009 $ (4,283) Total number of AFS in an unrealized loss position less than twelve months 1,938 Total number of AFS securities in an unrealized loss position twelve months or longer 2,531 Total number of AFS securities in an unrealized loss position 4,469 December 31, 2022 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized AFS 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 AFS securities $ 20,533 $ (2,600) $ 8,007 $ (1,930) $ 28,540 $ (4,530) Total number of AFS securities in an unrealized loss position less than twelve months 2,774 Total number of AFS securities in an unrealized loss position twelve months or longer 1,212 Total number of AFS securities in an unrealized loss position 3,986 We determined the decrease in unrealized losses as of June 30, 2023, compared to December 31, 2022, was caused by longer treasury rates being lower as well as credit spread compression. For securities in an unrealized loss position as of June 30, 2023, our allowance for expected credit loss was $32 million. We believe the unrealized loss position for which we have not recorded an allowance for expected credit loss as of June 30, 2023 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 5% and 6% of our total investments as of June 30, 2023 and December 31, 2022, respectively. The mortgage 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): June 30, 2023 December 31, 2022 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: Hotel $ 18 1 % $ 18 1 % Industrial 538 22 % 520 22 % Mixed Use 12 1 % 12 1 % Multifamily 1,012 41 % 1,013 42 % Office 328 13 % 330 14 % Retail 103 4 % 105 4 % Student Housing 83 3 % 83 3 % Other 376 15 % 335 13 % Total CMLs, gross of valuation allowance $ 2,470 100 % $ 2,416 100 % Allowance for expected credit loss (13) (10) Total CMLs, net of valuation allowance $ 2,457 $ 2,406 U.S. Region: East North Central $ 150 6 % $ 151 6 % East South Central 76 3 % 76 3 % Middle Atlantic 325 13 % 326 13 % Mountain 353 14 % 355 15 % New England 166 7 % 158 7 % Pacific 726 29 % 708 28 % South Atlantic 553 22 % 521 22 % West North Central 4 1 % 4 1 % West South Central 117 5 % 117 5 % Total CMLs, gross of valuation allowance $ 2,470 100 % $ 2,416 100 % Allowance for expected credit loss (13) (10) Total CMLs, net of valuation allowance $ 2,457 $ 2,406 CMLs segregated by risk rating exposure as of June 30, 2023 and December 31, 2022, were as follows, gross of valuation allowances (in millions): June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Current (less than 30 days past due) $ 55 $ 338 $ 1,299 $ 487 $ — $ 265 $ 2,444 30-89 days past due — — — — — — — 90 days or more past due — — — — — 9 9 Total CMLs (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Current (less than 30 days past due) $ 350 $ 1,300 $ 488 $ — $ — $ 269 $ 2,407 30-89 days past due — — — — — — — 90 days or more past due — — — — — 9 9 Total CMLs $ 350 $ 1,300 $ 488 $ — $ — $ 278 $ 2,416 (a) Excludes loans under development with an amortized cost and estimated fair value of $ 17 million for June 30, 2023. 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. An 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 present 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 at June 30, 2023 and December 31, 2022 (dollars in millions) : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 <1.00 June 30, 2023 LTV Ratios: Less than 50.00% $ 510 $ 4 $ 11 $ 525 21 % $ 491 23 % 50.00% to 59.99% 740 — — 740 30 % 649 30 % 60.00% to 74.99% 1,160 10 — 1,170 48 % 973 46 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Total CMLs (a) $ 2,410 $ 14 $ 29 $ 2,453 100 % $ 2,127 100 % 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 % Total CMLs (a) $ 2,371 $ 7 $ 29 $ 2,407 100 % $ 2,074 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $ 17 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total LTV Less than 50.00% $ 6 $ 67 $ 119 $ 207 $ — $ 126 $ 525 50.00% to 59.99% 27 149 267 158 — 139 740 60.00% to 74.99% 22 113 913 122 — — 1,170 75.00% to 84.99% — 9 — — — 9 18 Total CMLs (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 DSCR Greater than 1.25x $ 48 $ 326 $ 1,299 $ 487 $ — $ 250 $ 2,410 1.00x - 1.25x 7 3 — — — 4 14 Less than 1.00x — 9 — — — 20 29 Total CMLs (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total 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 CMLs (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 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 CMLs (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 (a) Excludes loans under development with an amortized cost and estimated fair value of $ 17 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At June 30, 2023 and December 31, 2022 we had one CML that was delinquent in principal or interest payments as shown in the risk rating exposure table above. Residential Mortgage Loans Residential mortgage loans (“RMLs”) represented approximately 6% of our total investments as of June 30, 2023 and December 31, 2022. Our RMLs 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): June 30, 2023 U.S. State: Amortized Cost % of Total Florida $ 152 5 % New York 131 5 % California 123 5 % All other states (a) 2,264 85 % Total RMLs, gross of valuation allowance $ 2,670 100 % (a) The individual concentration of each state is equal to or less than 5% as of June 30, 2023. 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 RMLs, gross of valuation allowance $ 2,180 100 % (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2022. RMLs 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 non-accrual status, which is assessed monthly. The credit quality of RMLs as of June 30, 2023 and December 31, 2022, was as follows (dollars in millions): June 30, 2023 December 31, 2022 Performance indicators: Amortized Cost % of Total Amortized Cost % of Total Performing $ 2,598 97 % $ 2,118 97 % Non-performing 72 3 % 62 3 % Total RMLs, gross of valuation allowance $ 2,670 100 % $ 2,180 100 % Allowance for expected loan loss (51) — % (32) — % Total RMLs, net of valuation allowance $ 2,619 100 % $ 2,148 100 % RMLs segregated by risk rating exposure as of June 30, 2023 and December 31, 2022, were as follows, gross of valuation allowances (in millions): June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Current (less than 30 days past due) $ 137 $ 963 $ 862 $ 200 $ 192 $ 199 $ 2,553 30-89 days past due — 6 24 5 4 6 45 90 days or more past due — 7 20 15 29 1 72 Total RML mortgages $ 137 $ 976 $ 906 $ 220 $ 225 $ 206 $ 2,670 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Current (less than 30 days past due) $ 766 $ 884 $ 214 $ 185 $ 23 $ 33 $ 2,105 30-89 days past due 2 7 — 4 — — 13 90 days or more past due 3 9 15 34 1 — 62 Total RML mortgages $ 771 $ 900 $ 229 $ 223 $ 24 $ 33 $ 2,180 Non-accrual loans by amortized cost as of June 30, 2023 and December 31, 2022, were as follows (in millions): Amortized cost of loans on non-accrual June 30, 2023 December 31, 2022 Residential mortgage: $ 72 $ 62 Commercial mortgage: 9 9 Total non-accrual mortgages $ 81 $ 71 Immaterial interest income was recognized on non-accrual financing receivables for the three and six months ended June 30, 2023 and June 30, 2022. It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. 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 June 30, 2023 and December 31, 2022, we had $72 million and $62 million, respectively, of RMLs that were over 90 days past due, of which $35 million and $38 million were in the process of foreclosure as of June 30, 2023 and December 31, 2022 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 unaudited Condensed Consolidated Statements of Operations. The allowances for our mortgage loan portfolio are summarized as follows (in millions): Three months ended June 30, 2023 Six months ended June 30, 2023 Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (48) $ (12) $ (60) $ (32) $ (10) $ (42) Provision for loan losses (3) (1) (4) (19) (3) (22) Ending Balance $ (51) $ (13) $ (64) $ (51) $ (13) $ (64) Three months ended June 30, 2022 Six months ended June 30, 2022 Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (26) $ (6) $ (32) $ (25) $ (6) $ (31) Provision for loan losses (3) — (3) (4) — (4) Ending Balance $ (29) $ (6) $ (35) $ (29) $ (6) $ (35) 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 June 30, 2023 and June 30, 2022. Interest and Investment Income The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Fixed maturity securities, available-for-sale $ 448 $ 336 $ 880 $ 655 Equity securities 4 4 9 8 Preferred securities 12 15 22 26 Mortgage loans 57 49 108 88 Invested cash and short-term investments 17 9 33 13 Limited partnerships 44 58 101 171 Other investments 5 1 14 7 Gross investment income 587 472 1,167 968 Investment expense (62) (47) (123) (92) Interest and investment income $ 525 $ 425 $ 1,044 $ 876 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 $76 million and $134 million for the three and six months ended June 30, 2023, respectively, and $20 million and $38 million for the three and six months ended June 30, 2022, respectively. Recognized Gains and (Losses), net Details underlying Recognized gains and (losses), net reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net realized (losses) gains on fixed maturity available-for-sale securities $ (52) $ (59) $ (96) $ (93) Net realized/unrealized (losses) gains on equity securities (a) 3 (20) 8 (22) Net realized/unrealized (losses) gains on preferred securities (b) 5 (83) (4) (150) Realized (losses) gains on other invested assets 15 — 15 (4) Change in allowance for expected credit losses (21) (6) (29) (7) Derivatives and embedded derivatives: Realized (losses) gains on certain derivative instruments (65) (35) (154) 15 Unrealized (losses) gains on certain derivative instruments 164 (359) 311 (717) Change in fair value of reinsurance related embedded derivatives (c) 17 141 (2) 263 Change in fair value of other derivatives and embedded derivatives 1 (5) 3 (8) Realized (losses) gains on derivatives and embedded derivatives 117 (258) 158 (447) Recognized gains and (losses), net $ 67 $ (426) $ 52 $ (723) (a) Includes net valuation (losses) gains of $3 million and $(20) million for the three months ended June 30, 2023 and June 30, 2022, respectively, and net valuation (losses) gains of $8 million and $(22) million for the six months ended June 30, 2023 and June 30, 2022, respectively. (b) Includes net valuation (losses) gains of $19 million and $(83) million for the three months ended June 30, 2023 and June 30, 2022, respectively, and net valuation (losses) gains of $44 million and $(149) million for the six months ended June 30, 2023 and June 30, 2022, respectively. (c) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties with Somerset and Aspida Re. Recognized gains and (losses), net 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 $21 million and $(1) million for the three and six months ended June 30, 2023, respectively, and $151 million and $279 million for the three and six month periods ended June 30, 2022, 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): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Proceeds $ 608 $ 783 $ 1,053 $ 1,795 Gross gains 2 1 5 4 Gross losses (30) (59) (79) (94) 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 Condensed 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 Condensed Consolidated Balance Sheets. Our maximum exposure to loss with respect to these VIEs is limited to the investment carrying amounts reported in our Condensed 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 N - Commitments and Contingencies ). The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 2,803 $ 4,491 $ 2,427 $ 4,030 Fixed maturity securities 18,471 20,853 15,680 17,404 Total unconsolidated VIE investments $ 21,274 $ 25,344 $ 18,107 $ 21,434 Concentrations Our underlying investment concentrations that exceed 10% of shareholders equity are as follows (in millions): June 30, 2023 December 31, 2022 Blackstone Wave Asset Holdco (a) $ 738 $ 741 ELBA (b) 463 470 COLI 316 308 Verus Securitizati |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
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): June 30, 2023 December 31, 2022 Assets: Derivative investments: Call options $ 648 $ 244 Other long-term investments: Other embedded derivatives 26 23 Prepaid expenses and other assets: Reinsurance related embedded derivatives 277 279 $ 951 $ 546 Liabilities: Contractholder funds: FIA/ IUL embedded derivatives $ 3,821 $ 3,115 $ 3,821 $ 3,115 The change in fair value of derivative instruments included in the accompanying unaudited Condensed Consolidated Statements of Operations is as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Recognized gains and (losses), net Net investment gains (losses): Call options $ 98 $ (395) $ 153 $ (709) Futures contracts — (8) 5 (5) Foreign currency forwards — 9 (1) 12 Other derivatives and embedded derivatives 2 (5) 3 (8) Reinsurance related embedded derivatives 17 141 (2) 263 Total net investment gains (losses) $ 117 $ (258) $ 158 $ (447) Benefits and other changes in policy reserves: FIA/ IUL embedded derivatives (decrease) increase $ 252 $ (454) $ 706 $ (942) Additional Disclosures FIA/IUL Embedded Derivative, 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 Condensed Consolidated Balance Sheets with changes in fair value included as a component of Benefits and other changes in policy reserves in the unaudited Condensed Consolidated Statements of Operations. 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. Reinsurance Related Embedded Derivatives The Company entered into a reinsurance agreement with Kubera Insurance (SAC) Ltd. (“Kubera”) effective December 31, 2018, to cede certain fixed rate and deferred annuity business, including MYGA, 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 MYGA business on a coinsurance 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 in embedded derivatives. These embedded derivatives are considered total return swaps with contractual returns that are attributable to the assets and liabilities associated with the reinsurance arrangements. 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 arrangements, including gains and losses from sales, were passed directly to the reinsurers pursuant to contractual terms of the reinsurance arrangements. The reinsurance related embedded derivatives are 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 unaudited Condensed Consolidated Balance Sheets and the related gains or losses are reported in Recognized gains and losses, net on the unaudited Condensed Consolidated Statements of Operations. 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): June 30, 2023 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) Notional Amount Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 4,033 $ 69 $ 26 $ 43 Morgan Stanley */Aa3/A+ 2,375 50 60 — Barclay's Bank A+/A1/A+ 6,137 121 113 8 Canadian Imperial Bank of Commerce AA/Aa2/A+ 6,542 204 180 24 Wells Fargo A+/A1/BBB+ 1,480 54 53 1 Goldman Sachs A/A2/BBB+ 1,212 23 22 1 Credit Suisse A+/A3/A 266 9 9 — Truist A+/A2/A 2,055 89 85 4 Citibank A+/Aa3/A+ 1,272 29 31 — Total $ 25,372 $ 648 $ 579 $ 81 December 31, 2022 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) 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 (a) 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 June 30, 2023 and December 31, 2022 counterparties posted $579 million and $219 million, respectively, of collateral of which $459 million and $178 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 Condensed 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 $81 million at June 30, 2023 and $33 million at December 31, 2022. 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 Condensed Consolidated Balance Sheets. We held 409 and 409 futures contracts at June 30, 2023 and December 31, 2022, 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 Condensed Consolidated Balance Sheets. The amount of cash collateral held by the counterparties for such contracts was $4 million and $3 million |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance The Company 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 the Company's retention limit is reinsured. The Company primarily seeks reinsurance coverage in order to limit its exposure to mortality losses and enhance capital management. The Company 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. The effects of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three and six months ended June 30, 2023 and June 30, 2022 were as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 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 $ 510 $ 862 $ 39 $ 204 $ 811 $ 1,734 $ 606 $ 709 Ceded (27) (45) (35) (581) (53) (105) (67) (883) Net $ 483 $ 817 $ 4 $ (377) $ 758 $ 1,629 $ 539 $ (174) 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 three and six months ended June 30, 2023 and June 30, 2022. The Company did not commute any ceded reinsurance treaties during the three and six months ended June 30, 2023 and June 30, 2022. The Company 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. The expected credit loss reserves were as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Balance at Beginning of Period $ (9) $ (20) $ (10) $ (20) Changes in the expected credit loss reserve — 1 1 1 Balance at End of Period $ (9) $ (19) $ (9) $ (19) No policies issued by the Company 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. The Company 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. 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 funds withheld coinsurance basis, certain MYGA 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. For the month of March 2023 only, the premiums cap increased to $450 million. 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. There have been no other significant changes to reinsurance contracts for the three and six months ended June 30, 2023. Concentration of Reinsurance Risk The Company has a significant concentration of reinsurance risk with third party reinsurers, Aspida Re, Wilton Reassurance Company (“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 June 30, 2023, 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 June 30, 2023. Somerset has an A- issuer credit rating from AM Best and a BBB+ issuer credit rating from S&P as of June 30, 2023, and the risk of non-performance is further mitigated through the funds withheld arrangement. On June 30, 2023, the net amounts recoverable from Aspida Re, Wilton Re, and Somerset were $4,857 million, $1,157 million, and $543 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 June 30, 2023. There have been no other material changes in the reinsurance and the intercompany reinsurance agreements described in our Annual Report for the year ended December 31, 2022. |
Intangibles
Intangibles | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles The following table reconciles to Other intangible assets, net, on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 VOBA $ 1,529 $ 1,615 DAC 1,856 1,411 DSI 258 200 Value of distribution asset 93 100 Computer software 70 61 Definite lived trademarks, tradenames, and other 37 34 Indefinite lived tradenames and other 8 8 Total Other intangible assets, net $ 3,851 $ 3,429 The following tables roll forward VOBA by product for the six months ended June 30, 2023 and June 30, 2022 (in millions): FIA Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total Balance at January 1, 2023 $ 1,166 $ 32 $ 201 $ 143 $ 73 $ 1,615 Amortization (71) (3) (6) (4) (2) (86) Balance at June 30, 2023 $ 1,095 $ 29 $ 195 $ 139 $ 71 $ 1,529 FIA Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total Balance at January 1, 2022 $ 1,314 $ 39 $ 212 $ 153 $ 25 $ 1,743 Amortization (76) (3) (6) (5) (1) (91) Shadow Premium Deficiency Testing (“PDT”) — — — — 52 52 Balance at June 30, 2022 $ 1,238 $ 36 $ 206 $ 148 $ 76 $ 1,704 VOBA amortization expense of $(86) million and $(91) million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2023 and June 30, 2022, respectively. The following table presents a reconciliation of VOBA to the table above which is reconciled to the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 FIA $ 1,095 $ 1,166 Fixed Rate Annuities 29 32 Immediate Annuities 195 201 Universal Life 139 143 Traditional Life 71 73 Total $ 1,529 $ 1,615 The following tables roll forward DAC by product for the six months ended June 30, 2023 and June 30, 2022 (in millions): FIA Fixed Rate Annuities Universal Life Total (a) Balance at January 1, 2023 $ 971 $ 83 $ 348 $ 1,402 Capitalization 249 91 109 449 Amortization (47) (20) (16) (83) Reinsurance related adjustments — 79 — 79 Balance at June 30, 2023 $ 1,173 $ 233 $ 441 $ 1,847 FIA Fixed Rate Annuities Universal Life Total (a) Balance at January 1, 2022 $ 564 $ 38 $ 173 $ 775 Capitalization 216 25 91 332 Amortization (29) (4) (9) (42) Balance at June 30, 2022 $ 751 $ 59 $ 255 $ 1,065 (a) Excludes insignificant amounts of DAC related to Funding Agreement Backed Note (“FABN”) DAC amortization expense of $(83) million and $(42) million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2023 and June 30, 2022, respectively. The following table presents a reconciliation of DAC to the table above which is reconciled to the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 FIA $ 1,173 $ 971 Fixed Rate Annuities 233 83 Universal Life 441 348 Funding Agreements 9 9 Total $ 1,856 $ 1,411 The following tables roll forward DSI for the six months ended June 30, 2023 and June 30, 2022 (in millions): FIA Total Balance at January 1, 2023 $ 200 $ 200 Capitalization 68 68 Amortization (10) (10) Balance at June 30, 2023 $ 258 $ 258 FIA Total Balance at January 1, 2022 $ 127 $ 127 Capitalization 38 38 Amortization (6) (6) Balance at June 30, 2022 $ 159 $ 159 DSI amortization expense of $(10) million and $(6) million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2023 and June 30, 2022, respectively. The following table presents a reconciliation of DSI to the table above which is reconciled to the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 FIA $ 258 $ 200 Total $ 258 $ 200 The cash flow assumptions used to amortize VOBA and DAC were consistent with the assumptions used to estimate the FPB for life contingent immediate annuity and PRT contracts, and will be reviewed and unlocked, if applicable, in the same period as those balances. For nonparticipating traditional life contracts, the VOBA amortization is straight-line, without the use of cash flow assumptions. For FIA contracts, the cash flow assumptions used to amortize VOBA, DAC, and DSI were consistent with the assumptions used to estimate the value of the embedded derivative and MRBs, and will be reviewed and unlocked, if applicable, in the same period as those balances. For fixed rate annuities and IUL the cash flow assumptions used to amortize VOBA, DAC and DSI reflect the company’s best estimates for policyholder behavior, consistent with the development of assumptions for FIA, immediate annuity, and PRT. We review cash flow assumptions annually, generally in the third quarter. In 2022, F&G undertook a review of all significant assumptions and revised GMWB utilization for our deferred annuity contracts (FIA and fixed rate annuities) to reflect internal and industry experience in the first several contract years. For the in-force liabilities as of June 30, 2023, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions): Estimated Amortization Expense Fiscal Year 2023 $ 80 2024 151 2025 139 2026 128 2027 117 Thereafter 914 |
Market Risk Benefits
Market Risk Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Market Risk Benefits | Market Risk Benefits The following table presents the balances of and changes in MRBs associated with FIAs and fixed rate annuities for the six months ended June 30, 2023 and the years ended December 31, 2022 and December 31, 2021 (in millions): June 30, 2023 December 31, 2022 December 31, 2021 FIA Fixed rate annuities FIA Fixed rate annuities FIA Fixed rate annuities Balance, beginning of period $ 164 $ 1 $ 426 $ 2 $ 478 $ 1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk $ 102 $ 1 $ 280 $ 1 $ 320 $ 1 Issuances and benefit payments (8) — (21) — (9) — Attributed fees collected and interest accrual 68 — 107 1 99 1 Actual policyholder behavior different from expected 11 — 43 — (22) — Changes in assumptions and other 1 — (76) — — — Effects of market related movements (38) — (231) (1) (108) (1) Balance, end of period, before effect of changes in the instrument-specific credit risk $ 136 $ 1 $ 102 $ 1 $ 280 $ 1 Effect of changes in the instrument-specific credit risk 58 — 62 — 146 1 Balance, end of period $ 194 $ 1 $ 164 $ 1 $ 426 $ 2 Weighted-average attained age of policyholders weighted by total AV (years) 68.41 72.67 68.59 72.88 68.95 73.10 Net amount at risk $ 1,006 $ 3 $ 952 $ 3 $ 1,304 $ 4 The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRB amounts in the Condensed Consolidated Balance Sheets (in millions): June 30, 2023 December 31, 2022 December 31, 2021 Asset Liability Net Asset Liability Net Asset Liability Net FIA $ 118 $ 312 $ 194 $ 117 $ 281 $ 164 $ 41 $ 467 $ 426 Fixed rate annuities — 1 1 — 1 1 — 2 2 Total $ 118 $ 313 $ 195 $ 117 $ 282 $ 165 $ 41 $ 469 $ 428 For the six months ended June 30, 2023, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased slightly, leading to a decrease in the MRB associated with FIA and fixed rate annuities. • Increases in the equity market related projections resulted in a decrease in the net amount at risk associated with FIAs, leading to a decrease in the value of the associated MRBs. • F&G’s credit spread increased slightly, leading to a corresponding decrease in the MRBs associated with both FIA and fixed rate annuities. In 2022, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased significantly, leading to a decrease in the MRBs associated with both FIA and fixed rate annuities. • Decreases in the equity markets resulted in an increase in the net amount at risk associated with FIAs, leading to an increase in the value of the associated MRBs. • Volatility indices increased, leading to an increase in the MRBs associated with FIAs. • Cash flow assumptions for mortality and full and partial surrenders were unchanged during the annual third quarter review. The GMWB utilization assumption was revised in the second quarter of 2022 to reflect additional internal and industry experience for the first several contract years. This assumption update led to a decrease in the MRBs. • F&G’s credit spread increased during the year, leading to a corresponding decrease in the MRBs value. Credit spreads on the block of business remain lower than the at-issue or at-purchase credit spreads, but the level has decreased since the beginning of 2022. In 2021, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased moderately, leading to a decrease in the MRBs associated with both FIA and fixed rate annuities. • Increases in the equity markets resulted in a decrease in the net amount at risk associated with FIA and fixed rate annuities, leading to a decrease in the value of the associated MRBs. The following tables summarize balances of and changes in contractholder funds’ account balances (in millions): June 30, 2023 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) Balance, beginning of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Issuances 2,415 2,584 99 — 456 Premiums received 52 1 180 — — Policy charges (a) (87) — (124) — — Surrenders and withdrawals (876) (520) (45) — — Benefit payments (254) (118) (16) (27) (323) Interest credited 69 179 20 27 25 Other 23 (1) — — 3 Balance, end of year $ 26,108 $ 11,483 $ 2,226 $ 2,613 $ 2,143 Embedded derivative adjustment (c) 98 — 73 — — Gross Liability, end of period $ 26,206 $ 11,483 $ 2,299 $ 2,613 $ 2,143 Less: Reinsurance (17) (5,431) (924) — — Net Liability, after Reinsurance $ 26,189 $ 6,052 $ 1,375 $ 2,613 $ 2,143 Weighted-average crediting rate 1.10 % 7.07 % 3.85 % N/A N/A Net amount at risk (d) N/A N/A 53,401 N/A N/A Cash surrender value 24,337 10,707 1,760 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2022 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) Balance, beginning of year 21,997 6,367 1,907 1,904 1,543 Issuances 4,462 3,758 167 700 1,192 Premiums received 106 3 295 — — Policy charges (a) (166) (1) (209) — — Surrenders and withdrawals (1,322) (797) (74) — — Benefit payments (485) (192) (22) (35) (789) Interest credited 198 220 48 45 36 Other (24) — — (1) — Balance, end of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Embedded derivative adjustment (c) (343) — 15 — — Gross Liability, end of period $ 24,423 $ 9,358 $ 2,127 $ 2,613 $ 1,982 Less: Reinsurance (17) (3,723) (947) — — Net Liability, after Reinsurance $ 24,406 $ 5,635 $ 1,180 $ 2,613 $ 1,982 Weighted-average crediting rate 0.85 % 2.84 % 2.39 % N/A N/A Net amount at risk (d) N/A N/A 53,348 N/A N/A Cash surrender value 188 5,992 1,698 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2021 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) Balance, beginning of year $ 18,703 $ 5,142 $ 1,696 $ — $ 1,203 Issuances 4,400 1,743 114 1,899 759 Premiums received 103 3 233 — — Policy charges (a) (148) (1) (167) — — Surrenders and withdrawals (1,303) (543) (68) — — Benefit payments (440) (145) (19) (7) (447) Interest credited 686 167 118 12 30 Other (4) 1 — — (2) Balance, end of year $ 21,997 $ 6,367 $ 1,907 $ 1,904 $ 1,543 Embedded derivative adjustment (c) 603 — 74 — — Gross Liability, end of period $ 22,600 $ 6,367 $ 1,981 $ 1,904 $ 1,543 Less: Reinsurance (17) (1,692) (984) — — Net Liability, after Reinsurance $ 22,583 $ 4,675 $ 997 $ 1,904 $ 1,543 Weighted-average crediting rate 3.43 % 2.94 % 6.77 % N/A N/A Net amount at risk (d) N/A N/A 41,326 N/A N/A Cash surrender value 20,455 5,992 1,572 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The following table reconciles contractholder funds’ account balances to the Contractholder funds liability in the Condensed Consolidated Balance Sheet (in millions): June 30, 2023 December 31, 2022 December 31, 2021 FIA $ 26,206 $ 24,423 $ 22,600 Fixed rate annuities 11,483 9,358 6,367 Immediate annuities 317 332 352 Universal life 2,299 2,127 1,981 Traditional life 5 5 5 Funding Agreement-FABN 2,613 2,613 1,904 FHLB 2,143 1,982 1,543 PRT 4 3 1 Total $ 45,070 $ 40,843 $ 34,753 The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums (in millions): June 30, 2023 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA 0.00%-1.50% $ 23,749 $ 796 $ 403 $ 663 $ 25,611 1.51%-2.50% 141 — 1 — 142 Greater than 2.50% 353 — 2 — 355 Total $ 24,243 $ 796 $ 406 $ 663 $ 26,108 Fixed Rate Annuities 0.00%-1.50% $ 17 $ 30 $ 1,838 $ 8,287 $ 10,172 1.51%-2.50% 8 13 28 313 362 Greater than 2.50% 934 3 4 8 949 Total $ 959 $ 46 $ 1,870 $ 8,608 $ 11,483 Universal Life 0.00%-1.50% $ 1,822 $ 4 $ — $ 18 $ 1,844 1.51%-2.50% — — — — — Greater than 2.50% 346 35 1 — 382 Total $ 2,168 $ 39 $ 1 $ 18 $ 2,226 December 31, 2022 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA 0.00%-1.50% $ 22,848 $ 801 $ 410 $ 151 $ 24,210 1.51%-2.50% 162 — 1 — 163 Greater than 2.50% 390 — 3 — 393 Total $ 23,400 $ 801 $ 414 $ 151 $ 24,766 Fixed Rate Annuities 0.00%-1.50% $ 10 $ 32 $ 1,871 $ 6,379 $ 8,292 1.51%-2.50% 9 14 30 1 54 Greater than 2.50% 997 4 4 7 1,012 Total $ 1,016 $ 50 $ 1,905 $ 6,387 $ 9,358 Universal Life 0.00%-1.50% $ 1,701 $ 3 $ — $ 17 $ 1,721 1.51%-2.50% — — — — — Greater than 2.50% 346 44 1 — 391 Total $ 2,047 $ 47 $ 1 $ 17 $ 2,112 December 31, 2021 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA 0.00%-1.50% $ 20,162 $ 803 $ 388 $ — $ 21,353 1.51%-2.50% 171 11 25 — 207 Greater than 2.50% 431 3 3 — 437 Total $ 20,764 $ 817 $ 416 $ — $ 21,997 Fixed Rate Annuities 0.00%-1.50% $ 2 $ 28 $ 1,928 $ 3,219 $ 5,177 1.51%-2.50% 9 15 37 1 62 Greater than 2.50% 954 142 25 7 1,128 Total $ 965 $ 185 $ 1,990 $ 3,227 $ 6,367 Universal Life 0.00%-1.50% $ 1,486 $ 2 $ — $ 13 $ 1,501 1.51%-2.50% — — — — — Greater than 2.50% 359 46 1 — 406 Total $ 1,845 $ 48 $ 1 $ 13 $ 1,907 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three and six months ended June 30, 2023 was 20% and (63)%. The effective tax rate for the three and six months ended June 30, 2022 was 20% and 25%. The effective tax rate on pre-tax income for the six months ended June 30, 2023 differs from the U.S Federal statutory rate of 21% primarily due to the valuation allowance recorded on capital deferred tax assets for US Life companies, partially offset 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 on pre-tax income for the three months ended June 30, 2023 differs from the U.S Federal Statutory rate of 21% primarily due to favorable permanent adjustments, including LIHTC, DRD, and ICOLI, partially offset by the valuation allowance recorded on capital deferred tax assets for US Life companies. The effective tax rate on pre-tax income for the six months ended June 30, 2022 differed from the U.S. Federal statutory rate of 21% primarily due to the valuation allowance recorded on the capital loss carryforwards for the US Non-life companies, partially offset by favorable permanent adjustments, including LIHTC, DRD, and ICOLI. The effective tax rate on pre-tax income for the three months ended June 30, 2022 differed from the U.S Federal Statutory rate of 21% primarily due to favorable permanent adjustments, including LIHTC, DRD, and ICOLI. As of December 31, 2022, the Company had a partial valuation allowance of $30 million against its net deferred tax assets of $630 million. As of June 30, 2023, the Company had a partial valuation allowance of $69 million against its net deferred tax assets of $615 million. There was a $39 million increase in the valuation allowance for the six months ended June 30, 2023. The valuation allowance consisted of a full valuation allowance 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 on the US non-life companies’ remaining capital loss carryforwards, and a partial valuation allowance on the capital loss deferred tax assets on the U.S. life insurance companies. The valuation allowance is reviewed quarterly and will be maintained until there is sufficient positive evidence, if any, to support a release. At each reporting date, management considers new evidence, both positive and negative, that could impact the future realization of deferred tax assets. Management will consider a release of the valuation allowance once there is sufficient positive evidence that it is more likely than not that the deferred tax assets will be realized. All other deferred tax assets are more likely than not to be realized based on expectations as to our future taxable income and considering all other available evidence, both positive and negative. 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 is 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 of the CAMT to tax for the six months ended June 30, 2023. As a result of the adoption of ASU 2018-12, the changes required resulted in changes to deferred tax for the prior periods. The decrease in the deferred tax asset as of December 31, 2022 due to ASU 2018-12 was $163 million. See Note A - Basis of Financial Statements for details on the changes required for the new accounting standard. |
Contractholder Funds
Contractholder Funds | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Contractholder Funds | Market Risk Benefits The following table presents the balances of and changes in MRBs associated with FIAs and fixed rate annuities for the six months ended June 30, 2023 and the years ended December 31, 2022 and December 31, 2021 (in millions): June 30, 2023 December 31, 2022 December 31, 2021 FIA Fixed rate annuities FIA Fixed rate annuities FIA Fixed rate annuities Balance, beginning of period $ 164 $ 1 $ 426 $ 2 $ 478 $ 1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk $ 102 $ 1 $ 280 $ 1 $ 320 $ 1 Issuances and benefit payments (8) — (21) — (9) — Attributed fees collected and interest accrual 68 — 107 1 99 1 Actual policyholder behavior different from expected 11 — 43 — (22) — Changes in assumptions and other 1 — (76) — — — Effects of market related movements (38) — (231) (1) (108) (1) Balance, end of period, before effect of changes in the instrument-specific credit risk $ 136 $ 1 $ 102 $ 1 $ 280 $ 1 Effect of changes in the instrument-specific credit risk 58 — 62 — 146 1 Balance, end of period $ 194 $ 1 $ 164 $ 1 $ 426 $ 2 Weighted-average attained age of policyholders weighted by total AV (years) 68.41 72.67 68.59 72.88 68.95 73.10 Net amount at risk $ 1,006 $ 3 $ 952 $ 3 $ 1,304 $ 4 The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRB amounts in the Condensed Consolidated Balance Sheets (in millions): June 30, 2023 December 31, 2022 December 31, 2021 Asset Liability Net Asset Liability Net Asset Liability Net FIA $ 118 $ 312 $ 194 $ 117 $ 281 $ 164 $ 41 $ 467 $ 426 Fixed rate annuities — 1 1 — 1 1 — 2 2 Total $ 118 $ 313 $ 195 $ 117 $ 282 $ 165 $ 41 $ 469 $ 428 For the six months ended June 30, 2023, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased slightly, leading to a decrease in the MRB associated with FIA and fixed rate annuities. • Increases in the equity market related projections resulted in a decrease in the net amount at risk associated with FIAs, leading to a decrease in the value of the associated MRBs. • F&G’s credit spread increased slightly, leading to a corresponding decrease in the MRBs associated with both FIA and fixed rate annuities. In 2022, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased significantly, leading to a decrease in the MRBs associated with both FIA and fixed rate annuities. • Decreases in the equity markets resulted in an increase in the net amount at risk associated with FIAs, leading to an increase in the value of the associated MRBs. • Volatility indices increased, leading to an increase in the MRBs associated with FIAs. • Cash flow assumptions for mortality and full and partial surrenders were unchanged during the annual third quarter review. The GMWB utilization assumption was revised in the second quarter of 2022 to reflect additional internal and industry experience for the first several contract years. This assumption update led to a decrease in the MRBs. • F&G’s credit spread increased during the year, leading to a corresponding decrease in the MRBs value. Credit spreads on the block of business remain lower than the at-issue or at-purchase credit spreads, but the level has decreased since the beginning of 2022. In 2021, the following notable changes were made to the inputs to the fair value estimates of MRB calculations: • Risk-free rates increased moderately, leading to a decrease in the MRBs associated with both FIA and fixed rate annuities. • Increases in the equity markets resulted in a decrease in the net amount at risk associated with FIA and fixed rate annuities, leading to a decrease in the value of the associated MRBs. The following tables summarize balances of and changes in contractholder funds’ account balances (in millions): June 30, 2023 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) Balance, beginning of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Issuances 2,415 2,584 99 — 456 Premiums received 52 1 180 — — Policy charges (a) (87) — (124) — — Surrenders and withdrawals (876) (520) (45) — — Benefit payments (254) (118) (16) (27) (323) Interest credited 69 179 20 27 25 Other 23 (1) — — 3 Balance, end of year $ 26,108 $ 11,483 $ 2,226 $ 2,613 $ 2,143 Embedded derivative adjustment (c) 98 — 73 — — Gross Liability, end of period $ 26,206 $ 11,483 $ 2,299 $ 2,613 $ 2,143 Less: Reinsurance (17) (5,431) (924) — — Net Liability, after Reinsurance $ 26,189 $ 6,052 $ 1,375 $ 2,613 $ 2,143 Weighted-average crediting rate 1.10 % 7.07 % 3.85 % N/A N/A Net amount at risk (d) N/A N/A 53,401 N/A N/A Cash surrender value 24,337 10,707 1,760 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2022 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) Balance, beginning of year 21,997 6,367 1,907 1,904 1,543 Issuances 4,462 3,758 167 700 1,192 Premiums received 106 3 295 — — Policy charges (a) (166) (1) (209) — — Surrenders and withdrawals (1,322) (797) (74) — — Benefit payments (485) (192) (22) (35) (789) Interest credited 198 220 48 45 36 Other (24) — — (1) — Balance, end of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Embedded derivative adjustment (c) (343) — 15 — — Gross Liability, end of period $ 24,423 $ 9,358 $ 2,127 $ 2,613 $ 1,982 Less: Reinsurance (17) (3,723) (947) — — Net Liability, after Reinsurance $ 24,406 $ 5,635 $ 1,180 $ 2,613 $ 1,982 Weighted-average crediting rate 0.85 % 2.84 % 2.39 % N/A N/A Net amount at risk (d) N/A N/A 53,348 N/A N/A Cash surrender value 188 5,992 1,698 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2021 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) Balance, beginning of year $ 18,703 $ 5,142 $ 1,696 $ — $ 1,203 Issuances 4,400 1,743 114 1,899 759 Premiums received 103 3 233 — — Policy charges (a) (148) (1) (167) — — Surrenders and withdrawals (1,303) (543) (68) — — Benefit payments (440) (145) (19) (7) (447) Interest credited 686 167 118 12 30 Other (4) 1 — — (2) Balance, end of year $ 21,997 $ 6,367 $ 1,907 $ 1,904 $ 1,543 Embedded derivative adjustment (c) 603 — 74 — — Gross Liability, end of period $ 22,600 $ 6,367 $ 1,981 $ 1,904 $ 1,543 Less: Reinsurance (17) (1,692) (984) — — Net Liability, after Reinsurance $ 22,583 $ 4,675 $ 997 $ 1,904 $ 1,543 Weighted-average crediting rate 3.43 % 2.94 % 6.77 % N/A N/A Net amount at risk (d) N/A N/A 41,326 N/A N/A Cash surrender value 20,455 5,992 1,572 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The following table reconciles contractholder funds’ account balances to the Contractholder funds liability in the Condensed Consolidated Balance Sheet (in millions): June 30, 2023 December 31, 2022 December 31, 2021 FIA $ 26,206 $ 24,423 $ 22,600 Fixed rate annuities 11,483 9,358 6,367 Immediate annuities 317 332 352 Universal life 2,299 2,127 1,981 Traditional life 5 5 5 Funding Agreement-FABN 2,613 2,613 1,904 FHLB 2,143 1,982 1,543 PRT 4 3 1 Total $ 45,070 $ 40,843 $ 34,753 The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums (in millions): June 30, 2023 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA 0.00%-1.50% $ 23,749 $ 796 $ 403 $ 663 $ 25,611 1.51%-2.50% 141 — 1 — 142 Greater than 2.50% 353 — 2 — 355 Total $ 24,243 $ 796 $ 406 $ 663 $ 26,108 Fixed Rate Annuities 0.00%-1.50% $ 17 $ 30 $ 1,838 $ 8,287 $ 10,172 1.51%-2.50% 8 13 28 313 362 Greater than 2.50% 934 3 4 8 949 Total $ 959 $ 46 $ 1,870 $ 8,608 $ 11,483 Universal Life 0.00%-1.50% $ 1,822 $ 4 $ — $ 18 $ 1,844 1.51%-2.50% — — — — — Greater than 2.50% 346 35 1 — 382 Total $ 2,168 $ 39 $ 1 $ 18 $ 2,226 December 31, 2022 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA 0.00%-1.50% $ 22,848 $ 801 $ 410 $ 151 $ 24,210 1.51%-2.50% 162 — 1 — 163 Greater than 2.50% 390 — 3 — 393 Total $ 23,400 $ 801 $ 414 $ 151 $ 24,766 Fixed Rate Annuities 0.00%-1.50% $ 10 $ 32 $ 1,871 $ 6,379 $ 8,292 1.51%-2.50% 9 14 30 1 54 Greater than 2.50% 997 4 4 7 1,012 Total $ 1,016 $ 50 $ 1,905 $ 6,387 $ 9,358 Universal Life 0.00%-1.50% $ 1,701 $ 3 $ — $ 17 $ 1,721 1.51%-2.50% — — — — — Greater than 2.50% 346 44 1 — 391 Total $ 2,047 $ 47 $ 1 $ 17 $ 2,112 December 31, 2021 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA 0.00%-1.50% $ 20,162 $ 803 $ 388 $ — $ 21,353 1.51%-2.50% 171 11 25 — 207 Greater than 2.50% 431 3 3 — 437 Total $ 20,764 $ 817 $ 416 $ — $ 21,997 Fixed Rate Annuities 0.00%-1.50% $ 2 $ 28 $ 1,928 $ 3,219 $ 5,177 1.51%-2.50% 9 15 37 1 62 Greater than 2.50% 954 142 25 7 1,128 Total $ 965 $ 185 $ 1,990 $ 3,227 $ 6,367 Universal Life 0.00%-1.50% $ 1,486 $ 2 $ — $ 13 $ 1,501 1.51%-2.50% — — — — — Greater than 2.50% 359 46 1 — 406 Total $ 1,845 $ 48 $ 1 $ 13 $ 1,907 |
Future Policy Benefits
Future Policy Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Future Policy Benefits | Future Policy Benefits The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts (in millions): June 30, 2023 December 31, 2022 December 31, 2021 Expected net premiums Balance, beginning of year $ 797 $ 1,020 $ 1,152 Beginning balance of original discount rate 974 1,045 1,131 Effect of actual variances from expected experience 7 33 25 Balance adjusted for variances from expectation 981 1,078 1,156 Interest accrual 9 20 22 Net premiums collected (60) (124) (133) Ending Balance at original discount rate 930 974 1,045 Effect of changes in discount rate assumptions (167) (177) (25) Balance, end of year $ 763 $ 797 $ 1,020 Expected FPB Balance, beginning of year $ 2,151 $ 2,772 $ 3,105 Beginning balance of original discount rate 2,665 2,806 2,995 Effect of actual variances from expected experience (9) 13 (14) Balance adjusted for variances from expectation 2,656 $ 2,819 $ 2,981 Interest accrual 28 59 62 Benefits payments (99) (213) (237) Ending Balance at original discount rate 2,585 $ 2,665 $ 2,806 Effect of changes in discount rate assumptions (474) (514) (34) Balance, end of year $ 2,111 $ 2,151 $ 2,772 Net liability for future policy benefits $ 1,348 $ 1,354 $ 1,752 Less: Reinsurance recoverable 587 612 749 Net liability for future policy benefits, after reinsurance recoverable $ 761 $ 742 $ 1,003 Weighted-average duration of liability for future policyholder benefits (years) 7.36 7.58 8.54 The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts (in millions): June 30, 2023 Immediate annuities PRT Balance, beginning of year $ 1,429 $ 2,165 Beginning balance of original discount rate 1,858 2,475 Effect of changes in cash flow assumptions — (5) Effect of actual variances from expected experience (17) — Balance adjusted for variances from expectation 1,841 2,470 Issuances 10 755 Interest accrual 33 50 Benefits payments (65) (115) Ending Balance at original discount rate 1,819 3,160 Effect of changes in discount rate assumptions (408) (290) Balance, end of year $ 1,411 $ 2,870 Net liability for future policy benefits $ 1,411 $ 2,870 Less: Reinsurance recoverable 116 — Net liability for future policy benefits, after reinsurance recoverable $ 1,295 $ 2,870 Weighted-average duration of liability for future policyholder benefits (years) 12.47 8.23 December 31, 2022 Immediate annuities PRT Balance, beginning of year $ 1,954 $ 1,148 Beginning balance of original discount rate 1,935 1,151 Effect of changes in cash flow assumptions — (20) Effect of actual variances from expected experience (26) 2 Balance adjusted for variances from expectation $ 1,909 $ 1,133 Issuances 26 1,418 Interest accrual 60 50 Benefits payments (137) (126) Ending Balance at original discount rate $ 1,858 $ 2,475 Effect of changes in discount rate assumptions (429) (310) Balance, end of year $ 1,429 $ 2,165 Net liability for future policy benefits $ 1,429 $ 2,165 Less: Reinsurance recoverable 118 — Net liability for future policy benefits, after reinsurance recoverable $ 1,311 $ 2,165 Weighted-average duration of liability for future policyholder benefits (years) 11.76 8.09 December 31, 2021 Immediate annuities PRT Balance, beginning of year $ 2,153 $ — Beginning balance of original discount rate 2,040 — Effect of actual variances from expected experience (47) — Balance adjusted for variances from expectation $ 1,993 $ — Issuances 18 1,155 Interest accrual 60 2 Benefits payments (136) (6) Ending Balance at original discount rate $ 1,935 $ 1,151 Effect of changes in discount rate assumptions 19 (3) Balance, end of year $ 1,954 $ 1,148 Net liability for future policy benefits $ 1,954 $ 1,148 Less: Reinsurance recoverable 145 — Net liability for future policy benefits, after reinsurance recoverable $ 1,809 $ 1,148 Weighted-average duration of liability for future policyholder benefits (years) 13.61 8.75 The following tables summarize balances and changes in the liability for DPL for limited-payment contracts (in millions): June 30, 2023 December 31, 2022 December 31, 2021 Immediate annuities PRT Immediate annuities PRT Immediate annuities PRT Balance, beginning of year $ 69 $ 4 $ 57 $ 7 $ 22 $ — Effect of modeling changes 4 — — — — — Effect of changes in cash flow assumptions — — — (2) — — Effect of actual variances from expected experience 10 2 16 — 39 — Balance adjusted for variances from expectation 83 6 73 5 61 — Issuances 1 — 1 — $ — $ 7 Interest accrual 1 (1) 2 — 2 — Amortization (3) (1) (7) (1) (6) — Balance, end of year $ 82 $ 4 $ 69 $ 4 $ 57 $ 7 The following table reconciles the net FPB to the FPB in the Condensed Consolidated Balance Sheets (in millions). The DPL for Immediate Annuities and PRT is presented together with the FPB in the Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below: June 30, 2023 December 31, 2022 December 31, 2021 Traditional Life $ 1,348 $ 1,354 $ 1,752 Immediate annuities 1,411 1,429 1,954 PRT 2,870 2,165 1,148 Immediate annuities DPL 82 69 57 PRT DPL 4 4 7 Total $ 5,715 $ 5,021 $ 4,918 The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts (in millions): Undiscounted Discounted June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Traditional Life Expected future benefit payments $ 3,027 $ 3,201 $ 2,089 $ 2,686 Expected future gross premiums 1,114 1,245 803 1,091 Immediate annuities Expected future benefit payments $ 3,361 $ 3,516 $ 1,411 $ 1,907 Expected future gross premiums — — — — PRT Expected future benefit payments $ 4,724 $ 2,265 $ 3,161 $ 1,652 Expected future gross premiums — — — — The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Operations (in millions): Gross Premiums (a) Interest Expense (b) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Traditional Life $ 63 $ 70 $ 19 $ 20 Immediate annuities 11 16 33 30 PRT 737 520 50 19 Total $ 811 $ 606 $ 102 $ 69 (a) Included in Life insurance premiums and other fees on the unaudited Condensed Consolidated Statements of Operations. (b) Included in Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) on the unaudited Condensed Consolidated Statements of Operations. The following table presents the weighted-average interest rate: June 30, 2023 December 31, 2022 December 31, 2021 Traditional Life Interest accretion rate 2.33 % 2.32 % 2.29 % Current discount rate 4.63 % 5.37 % 2.41 % Immediate annuities Interest accretion rate 3.12 % 3.07 % 3.04 % Current discount rate 5.10 % 5.21 % 3.07 % PRT Interest accretion rate 4.04 % 3.20 % 1.20 % Current discount rate 5.28 % 5.40 % 2.79 % The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB: June 30, 2023 Traditional Life Immediate annuities PRT Mortality Actual experience 1.4 % 3.2 % 2.3 % Expected experience 1.4 % 1.6 % 2.1 % Lapses Actual experience 0.1 % — % — % Expected experience 0.3 % — % — % December 31, 2022 Traditional Life Immediate annuities PRT Mortality Actual experience 1.5 % 3.0 % 1.9 % Expected experience 1.3 % 1.9 % 2.5 % Lapses Actual experience — % — % — % Expected experience 0.3 % — % — % December 31, 2021 Traditional Life Immediate annuities PRT Mortality Actual experience 1.7 % 4.2 % — % Expected experience 1.3 % 2.0 % — % Lapses Actual experience 0.1 % — % — % Expected experience 0.3 % — % — % The following table provides additional information for periods in which a cohort has an NPR > 100% (and therefore capped at 100%) (dollars in millions): June 30, 2023 December 31, 2022 Cohort X Description Cohort X Description Net Premium Ratio before capping 100 % Term with ROP Non-NY Cohort 100 % Term with ROP Non-NY Cohort Reserves before NP Ratio capping $ 1,184 Term with ROP Non-NY Cohort $ 1,172 Term with ROP Non-NY Cohort Reserves after NP Ratio capping $ 1,185 Term with ROP Non-NY Cohort $ 1,173 Term with ROP Non-NY Cohort Loss Expense $ 1 Term with ROP Non-NY Cohort — Term with ROP Non-NY Cohort F&G realized actual-to-expected experience variances and made changes to assumptions during the six months ended June 30, 2023 and the year ended December 31, 2022 as follows: Traditional life Significant assumption inputs to the calculation of the FPB for traditional life include mortality, lapses (including lapses due to nonpayment of premium and surrenders for cash surrender value), and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. Market data that underlies current discount rates was updated in the first six months of 2023 from that utilized in 2022 resulting in decreased discount rates that drove a material increase to the FPB. In 2022, F&G similarly undertook a review in the third quarter of the significant cash flow assumptions and did not make any changes to mortality or lapses. Market data that underlies current discount rates was updated from 2021 and increased significantly year-over-year, resulting in a material decrease to the FPB. Impacts to expected net premiums and expected FPBs due to discount rate changes in 2022 can be observed in the FPB roll forward tables at December 31, 2022. Immediate annuities (life contingent) Significant assumption inputs to the calculation of the FPB for immediate annuities (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. Market data that underlies current discount rates was updated in the first six months of 2023 from that utilized in 2022, resulting in decreased discount rates that drove a material increase to the FPB. In 2022, F&G similarly undertook a review of the significant cash flow assumptions and did not make any changes to mortality. Market data that underlies current discount rates was updated from 2021 and increased significantly year-over-year, resulting in a material decrease to the FPB. Impacts to expected FPBs due to assumption changes in 2022 can be observed in the FPB roll forward tables at December 31, 2022. PRT (life contingent) Significant assumption inputs to the calculation of the FPB for PRT (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. Market data that underlies current discount rates was updated in the first six months of 2023 from 2022 resulting in decreased discount rates that drove a material increase to the FPB. In 2022, F&G similarly undertook a review of the significant cash flow assumption and did not make any changes to mortality. Market data that underlies current discount rates was updated from 2021 and increased significantly year-over-year, resulting in a material decrease to the FPB. Impacts to expected FPBs due to assumption changes in 2022 can be observed in the FPB roll forward tables at December 31, 2022. Premium deficiency testing |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities As of June 30, 2023 and December 31, 2022, the total URL balance of $215 million and $166 million, respectively, is included in Accounts payable and accrued liabilities on the Condensed Consolidated Balance Sheets. The following table presents a reconciliation of Accounts payable and accrued liabilities to the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 Salaries and incentives $ 56 $ 72 Accrued benefits 58 58 URL 215 166 Trade accounts payable 113 114 Liability for policy and contract claims 92 109 Retained asset account 96 117 Remittances and items not allocated 193 225 Option collateral liabilities 459 178 Lease liability 12 13 Other accrued liabilities 425 208 Accounts payable and accrued liabilities $ 1,719 $ 1,260 The following tables roll forward URL for the six months ended June 30, 2023 and June 30, 2022 (in millions): Universal Life Total Balance at January 1, 2023 $ 166 $ 166 Capitalization 56 56 Amortization (7) (7) Balance at June 30, 2023 $ 215 $ 215 Universal Life Total Balance at January 1, 2022 $ 87 $ 87 Capitalization 41 41 Amortization (4) (4) Balance at June 30, 2022 $ 124 $ 124 For IUL the cash flow assumptions used to amortize URL reflect the company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. In 2022, F&G undertook a review of all significant assumptions and there were no significant changes. |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable The carrying amounts of notes payable are summarized as follows (in millions): June 30, 2023 December 31, 2022 Revolving Credit Facility - Short-term (variable) $ 511 $ 547 7.40% F&G Notes 495 — 5.50% F&G Notes 565 567 Notes payable $ 1,571 $ 1,114 On January 13, 2023, F&G completed its issuance and sale of $500 million aggregate principal amount of its 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. On November 22, 2022, we entered into a Credit Agreement (as defined above, 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. As of June 30, 2023, we had $515 million drawn on the revolving credit facility with $150 million of remaining borrowing availability. The average variable interest rate on the revolver was 6.44% for the six months ended June 30, 2023. Gross principal maturities of notes payable at June 30, 2023 are as follows (in millions): 2023 $ 515 2024 — 2025 550 2026 — 2027 — Thereafter 500 $ 1,565 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2023 | |
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). Six months ended June 30, 2023 2022 Cash paid for: Interest $ 24 $ 18 Income taxes — 7 Deferred sales inducements 68 38 Non-cash investing and financing activities: Investments received from pension risk transfer premiums 219 — Change in proceeds of sales of investments available for sale receivable in period (151) 151 Change in purchases of investments available for sale payable in period 237 226 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 and December 31, 2022. 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 and legal costs. On October 5, 2022, the Grand Court of the Cayman Islands decided in favor of F&G. The dissenting shareholders failed to appeal the fair value order, and its appeal period expired on October 19, 2022. On April 19, 2023 the Grand Court of the Cayman Islands determined that the dissenting shareholders should pay F&G's Cayman Islands legal expenses and discovery costs relating to the lawsuit, by way of interim payment of $4 million with the balance to be determined after assessment. We are attempting to collect reimbursement of our expenses in this lawsuit. 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 June 30, 2023 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 June 30, 2023 is included below (in millions): June 30, 2023 Asset Type Unconsolidated VIEs: Limited partnerships $ 1,688 Whole loans 1,044 Fixed maturity securities, ABS 247 Direct Lending 910 Other fixed maturity securities, AFS 21 Commercial mortgage loans 16 Other assets 125 Other invested assets 6 Committed amounts included in liabilities 2 Total $ 4,059 |
Insurance Subsidiary Financial
Insurance Subsidiary Financial Information and Regulatory Matters | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Insurance Subsidiary Financial Information and Regulatory Matters | Insurance Subsidiary Financial Information and Regulatory Matters Our U.S. insurance subsidiaries, FGL Insurance, FGL NY Insurance, and Raven Reinsurance Company (“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 Ltd and F&G Life Re Ltd (Bermuda) file financial statements with their respective regulators that are based on U.S. GAAP. 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 $202 million and $152 million decrease to statutory capital and surplus at June 30, 2023 and December 31, 2022, respectively. Based on a permitted practice received from the Iowa Insurance Department, FGL Insurance carries one of its limited partnership interests which qualifies for accounting under SSAP No. 48, “Investments in Joint Ventures, Partnerships and Limited Liability Companies” on a net asset value per share basis. This is a departure from SSAP No. 48 which requires such investments to be carried based on the investees underlying U.S. GAAP equity (prior to any impairment considerations). This resulted in a $15 million and $13 million increase to statutory capital and surplus at June 30, 2023 and December 31, 2022, 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 $200 million at June 30, 2023 and December 31, 2022, respectively. Raven Re is also permitted to follow Iowa prescribed statutory accounting practice for its reserves on reinsurance assumed from FGL Insurance. Without such permitted statutory accounting practices, Raven Re’s statutory capital and surplus (deficit) and its risk-based capital would 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. FGL Insurance’s statutory carrying value of Raven Re was $107 million and $121 million at June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. |
ASU 2018-12 Transition
ASU 2018-12 Transition | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
ASU 2018-12 Transition | ASU 2018-12 Transition F&G adopted ASU 2018-12 on January 1, 2023 with a transition date of January 1, 2021, or the beginning of the earliest period that will be presented in the annual December 31, 2023 Consolidated Financial Statements. We elected to adopt ASU 2018-12 using the full retrospective transition method and balances for FPB, DAC and balances amortized on a basis consistent with DAC (VOBA, DSI, and URL), and MRBs were adjusted to conform to ASU 2018-12 starting as of the FNF Acquisition Date. No hindsight was used for the full retrospective adoption of MRBs. As a result of adoption, the Company recorded a cumulative-effect adjustment, which increased opening 2021 retained earnings by $75 million, net of tax. The following table summarizes the balance of and changes in the FPB on January 1, 2021 due to adoption of ASU 2018-12 (in millions): Immediate annuities Traditional Life Total (3) Balance, December 31, 2020 $ 1,861 $ 2,144 $ 4,005 Cumulative effect of retrospective adoption (1) 201 (279) (78) Effect of remeasurement of liability at current discount rate (2) 113 88 201 Balance, January 1, 2021 $ 2,175 $ 1,953 $ 4,128 Less: Reinsurance Recoverable 322 793 1,115 Balance, January 1, 2021, net of reinsurance $ 1,853 $ 1,160 $ 3,013 (1) Adjustments for the cumulative effect of adoption of the new measurement guidance under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020, net of the effects of any change in the DPL. (2) The remeasurement of the liability at the current discount rate is reflected as an adjustment to opening AOCI upon the adoption of ASU 2018-12. (3) PRT was not written as of the transition date, January 1, 2021, and as a result is not presented in the transition adjustment roll forward. The following table summarizes the balance of and changes in VOBA on January 1, 2021 due to adoption of ASU 2018-12 (in millions): FIA Fixed rate annuities Immediate annuities Universal Life Traditional Life Total Balance, December 31, 2020 $ 1,208 $ 15 $ 86 $ 139 $ 18 $ 1,466 Adjustment for reversal of AOCI adjustments (1) 208 24 — 29 (29) 232 Cumulative effect of retrospective adoption (2) (14) 7 (5) (9) (1) (22) Transition opening balance adjustment (3) 69 2 145 5 43 264 Balance, January 1, 2021 $ 1,471 $ 48 $ 226 $ 164 $ 31 $ 1,940 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method from the FNF acquisition date through December 31, 2020. (3) Adjustments for the change in VOBA due to the full retrospective adjustment of carrying amounts of acquired contracts as of the FNF Acquisition Date due to the adoption of ASU 2018-12. The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12 (in millions): FIA Fixed rate annuities Universal Life Total Balance, December 31, 2020 $ 167 $ 14 $ 41 $ 222 Adjustment for reversal of AOCI adjustments (1) 15 2 8 25 Cumulative effect of retrospective adoption (2) (1) — (1) (2) Balance, January 1, 2021 $ 181 $ 16 $ 48 $ 245 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020. The following table summarizes the balance of and changes in DSI on January 1, 2021 due to adoption of ASU 2018-12 (in millions): FIA Total Balance, December 31, 2020 $ 36 $ 36 Adjustment for reversal of AOCI adjustments (1) 5 5 Cumulative effect of retrospective adoption (2) 4 4 Balance, January 1, 2021 $ 45 $ 45 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020. The following table summarizes the balance of and changes in URL on January 1, 2021 due to adoption of ASU 2018-12 (in millions): Universal Life Total Balance, December 31, 2020 $ 2 $ 2 Adjustment for reversal of AOCI adjustments (1) 25 25 Cumulative effect of retrospective adoption (2) 2 2 Balance, January 1, 2021 $ 29 $ 29 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020. The following table summarizes the balance of and changes in the asset and liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12 (in millions): FIA Fixed rate annuities Total Balance, December 31, 2020 - Carrying amount of MRBs under prior guidance (1) $ 531 $ — $ 531 Adjustment for reversal of AOCI adjustments (2) (116) — (116) Cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date (3) 159 — 159 Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs (4) (96) 1 (95) Balance, January 1, 2021 - Market risk benefits at fair value $ 478 $ 1 $ 479 Less: Reinsurance Recoverable — — — Balance, January 1, 2021, net of reinsurance $ 478 $ 1 $ 479 (1) The pre-adoption balance as of December 31, 2020 balance for MRBs represents the contract features that meet the definition of an MRB under ASU 2018-12 and the related carrying amount of those features prior to the ASU. Those contract features were previously accounted for at fair value as a derivative or embedded derivative under ASC 815 or as an additional liability for annuitization benefits or death or other insurance benefits under ASC 944. (2) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (3) The cumulative effective of the change in instrument-specific credit risk between the FNF Acquisition Date or, if later, the original contract issuance date and the transition date to ASU 2018-12, which is recorded as an adjustment to opening AOCI. (4) The cumulative difference (exclusive of instrument-specific credit risk change) between the pre-adoption carrying amount and the fair value measurement for MRBs is recorded as an adjustment to opening retained earnings. The following table presents the effect of transition adjustments on Equity on January 1, 2021 due to the adoption of ASU 2018-12 (in millions): January 1, 2021 Retained Earnings AOCI Contractholder funds $ 101 $ 115 MRB 30 (160) FPB (14) (159) VOBA (21) 233 DAC (1) 5 Increase to Equity, gross of tax $ 95 $ 34 Tax impact 20 9 Increase to Equity, net of tax $ 75 $ 25 For MRBs, the transition adjustment reflected within the unaudited Condensed Consolidated Statements of Comprehensive Earnings relates to the cumulative effect of changes in the instrument-specific credit risk between contract issue date and transition date. The remaining difference between the fair value and carrying amount of the MRBs at transition, excluding the amounts recorded in the unaudited Condensed Consolidated Statements of Comprehensive Earnings, was recorded as an adjustment to Retained Earnings as of the transition date. For the FPB, the net transition adjustment is primarily related to the difference in the discount rate used pre-transition and the discount rate at January 1, 2021, partially offset by the removal of provisions for adverse deviation from the cash flow assumptions used in the FPB calculation. At transition, we did not identify any instances, at the cohort level, where net premiums exceeded gross premiums. Before the adoption of ASU 2018-12, VOBA was amortized consistent with DAC, which was amortized over the lives of the policies in relation to the expected emergence of estimated gross profits (“EGPs”). Based on our historical practice of using consistent amortization methods for VOBA and DAC, we elected to change the amortization method for VOBA associated with fixed rate annuities, FIAs, and IUL/Universal Life (“UL”) products to maintain consistency with the amortization method for DAC. At transition, VOBA associated with these product types is amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. Additionally, at transition, shadow adjustments previously recorded in the unaudited Condensed Consolidated Statements of Comprehensive Earnings, consistent with the historic amortization of DAC, have been removed. For DAC, DSI and URL, we removed shadow adjustments previously recorded in the unaudited Condensed Consolidated Statements of Comprehensive Earnings for the impact of unrealized gains and losses that were included in the pre-transition expected gross profits amortization calculation as of the transition date. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net earnings (loss) | $ 130 | $ 385 | $ (65) | $ 624 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Financial Statements (
Basis of Financial Statements (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | The financial information in this report presented for interim periods is unaudited and includes the accounts of F&G Annuities & Life, Inc. (“FGAL”) and its subsidiaries (collectively, “we”, “us”, “our”, the "Company" or “F&G”) prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022, filed on February 27, 2023, as amended by Amendment No. 1 on Form 10-K/A filed on April 27, 2023, (collectively our “Annual Report”) and our Current Report on Form 8-K, filed on July 13, 2023, to update our Annual Report for changes in accounting for long-duration contracts by insurance companies as discussed below in “ Recent Developments |
Earnings Per Share | Earnings Per ShareBasic earnings per share, as presented on the unaudited Condensed Consolidated Statements of Operations, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such period. In periods when earnings are positive, diluted earnings per share is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted loss per share is equal to basic loss per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. |
Recent Accounting Pronouncements | Adoption of Accounting Standards Update (“ASU”) 2018-12, Financial Services-Insurance (Topic 944), Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”) F&G adopted ASU 2018-12 on January 1, 2023, with a transition date of January 1, 2021, or the beginning of the earliest period that will be presented in the annual December 31, 2023 Consolidated Financial Statements. We elected to adopt ASU 2018-12 using the full retrospective transition method and balances for liability for future policy benefits (“FPB”), deferred acquisition costs ("DAC”) and balances amortized on a basis consistent with DAC (value of business acquired ("VOBA”), deferred sales inducements (“DSI”), and unearned revenue liabilities (“URL”)), and market risk benefits (“MRBs”) were adjusted to conform to ASU 2018-12 starting as of the FNF acquisition date, June 1, 2020 (the “FNF Acquisition Date”). The 2022 and 2021 financial information contained herein have been adjusted for our full retrospective adoption of this update. For more information, refer to Recent Accounting Pronouncement s and Updates to Summary of significant accounting policies below and Note F — Intangibles , Note G — Market Risk Benefits, Note H — Income Taxes, Note I — Contractholder Funds , Note J — Future Policy Benefits , Note K — Accounts Payable and Accrued Liabilities , and Note P — ASU 2018-12 Transition . Recent Accounting Pronouncements Adopted Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-12, 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 FPB and limited-payment contracts must be updated at each reporting date with the effect of changes in the rate being recognized in accumulated other comprehensive income (loss) (“AOCI”); MRB 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 AOCI; 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 roll forwards of beginning to ending balances of the FPBs, Contractholder funds, 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. We adopted this standard, which required the new guidance be applied as of the beginning of the earliest period that will be presented in our annual December 31, 2023 Consolidated Financial Statements or January 1, 2021, referred to as the transition date, and elected the full retrospective transition method. As a result of adoption, the Company recorded a cumulative-effect adjustment, which increased opening 2021 retained earnings by $75 million, net of tax. 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 to date. |
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 AOCI, net of 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 securities 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 unaudited Condensed Consolidated Statements of Operations. 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. Investments in Unconsolidated Affiliates We account for our investments in unconsolidated affiliates using the equity method or by electing the fair value option. Initial investments are recorded at cost. For investments subsequently measured using the equity method (primarily limited partnerships), adjustments to the carrying amount reflect our pro rata ownership percentage of the operating results as indicated by net asset value (“NAV”) in the unconsolidated affiliates’s financial statements, |
VOBA, DAC, DSI and URL | VOBA, DAC, DSI and URL 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. DAC consists principally of commissions and other acquisition costs that are related directly to the successful sale of new or renewal insurance contracts. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. DSI represents up front bonus credits and persistency or vesting bonuses credited to contractholder fund balances. VOBA, DAC, and DSI are amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization. Contracts are grouped by product type and feature and issue year into cohorts consistent with the grouping used in estimating the associated liability, where applicable. The constant level amortization bases of VOBA, DAC and DSI varies by product type. For universal life and IUL insurance products, the constant level basis used is face amount in force. For deferred annuities (FIA and fixed rate annuities), the constant level basis used is initial premium deposit for DAC and DSI and vested account value as of the acquisition date for VOBA. For immediate annuity contracts, the VOBA balance is amortized in alignment with the Company’s accounting policy of amortizing the deferred profit liability (“DPL”). All amortization bases are adjusted by full lapses, which includes deaths, full surrenders, annuitizations and maturities, where applicable. The constant level bases used for amortization are projected using mortality and lapse assumptions that are based on Company’s experience, industry data, and other factors and are consistent with those used for the FPB, where applicable. If those projected assumptions change in future periods, they will be reflected in the cohort level amortization basis at that time. Unexpected contract terminations, due to higher mortality and/or lapse experience than expected, are recognized in the current period as a reduction of the capitalized balances. All balances are reduced for actual experience in excess of expected experience with changes in future estimates recognized prospectively over the remaining expected grouped contract term. The impact of changes in projected assumptions and the impact of actual experience that is different from expectations both impact the amortization of these intangible assets, which is reported within Depreciation and amortization in the accompanying unaudited Condensed Consolidated Statements of Operations. |
Contractholder Funds | Contractholder Funds Contractholder funds include deferred annuities (FIAs and fixed rate annuities), IULs, funding agreements and non-life contingent (“NLC”) immediate annuities (which includes NLC PRT annuities). The liabilities for Contractholder funds for fixed rate annuities, funding agreements and NLC immediate annuities (which includes NLC PRT annuities) 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 liability is carried at fair value in Contractholder funds in the accompanying Condensed Consolidated Balance Sheets with changes in fair value reported in Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Operations. See a description of the fair value methodology used in Note B - Fair Value of Financial Instruments . |
Future Policy Benefits | Future Policy Benefits The FPB is determined as the present value of future policy benefits and related claims expenses to be paid to or on behalf of the policyholder less the present value of future net premiums to be collected from policyholders. The FPB for traditional life policies and life-contingent immediate annuity policies (which includes life-contingent PRT annuities) are estimated using current assumptions that include discount rate, mortality and surrender/lapse terminations for traditional life insurance policies only, and expenses. The expense assumption is locked-in at contract issuance and not subsequently reviewed or updated. The initial assumptions are based on generally accepted actuarial methods and a combination of internal and industry experience. Policies are terminated through surrenders, lapses and maturities, where surrenders represent the voluntary terminations of policies by policyholders, lapses represent cancellations by us due to nonpayment of premiums, and maturities are determined by policy contract terms. Surrender assumptions are based upon policyholder behavior experience adjusted for expected future conditions. For traditional life policies and life-contingent immediate annuity policies, contracts are grouped into cohorts by product type, legal entity, and issue year, or acquisition year for cohorts established as of the FNF Acquisition Date. Life-contingent PRT annuities are grouped into cohorts by deal and legal entity. At contract inception, a net premium ratio (“NPR”) is determined, which is calculated based on discounted future cash flows projected using best estimate assumptions and is capped at 100%, as net premiums cannot exceed gross premiums. Cohorts with NPRs less than 100% are not used to offset cohorts with NPRs greater than 100%. The NPR is adjusted for changes in cash flow assumptions and for differences between actual and expected experience. We assess the appropriateness of all future cash flow assumptions, excluding the expense assumption, on a quarterly basis and perform an in-depth review of future cash flow assumptions in the third quarter of each year. Updates are made when evidence suggests a revision is necessary. Updates for actual experience, which includes actual cash flows and insurance in-force, are performed on a quarterly basis. These updated cash flows are used to calculate a revised NPR, which is used to derive an updated liability as of the beginning of the current reporting period, discounted at the original contract issuance date. The updated liability is compared with the carrying amount of the liability as of that same date before the revised NPR. The difference between these amounts is the remeasurement gain or loss, presented parenthetically within Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Operations. In subsequent periods, the revised NPR, which is capped at 100%, is used to measure the FPB, subject to future revisions. If the NPR is greater than 100%, and therefore capped at 100%, the liability is increased and expensed immediately to reflect the amount necessary for net premiums to equal gross premiums. As the liability assumptions are reviewed and updated, if deemed necessary, at least annually, if conditions improve whereby the contracts are no longer expected to have net premiums in excess of gross premiums, the improvements would be captured in the remeasurement process and reflected in the accompanying unaudited Condensed Consolidated Statements of Operations in the period of improvement. |
Deferred Profit Liability | Deferred Profit Liability For life-contingent immediate annuity policies (which includes life-contingent PRT annuities), gross premiums received in excess of net premiums are deferred at initial recognition as a DPL. Gross premiums are measured using assumptions consistent with those used in the measurement of the related liability for FPBs, including discount rate, mortality, and expenses. The DPL is amortized and recognized as premium revenue with the amount of expected future benefit payments, discounted using the same discount rate determined and locked-in at contract issuance that is used in the measurement of the related FPB. Interest is accreted on the balance of the DPL using this same discount rate. We periodically review and update our estimates of using the actual historical experience and updated cash flows for the DPL at the same time as the estimates of cash flows for the FPB. When cash flows are updated, the updated estimates are used to recalculate the initial DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period, with any differences recognized as a remeasurement gain or loss, presented parenthetically within Benefits and other changes in policy reserves in the accompanying unaudited Condensed Consolidated Statements of Operations. The DPL is recorded as a component of the Future policy benefits in the accompanying Condensed Consolidated Balance Sheets. |
Market Risk Benefits | Market Risk Benefits MRBs are contracts or contract features that both provide protection to the contract holder from other-than-nominal capital market risk (equity, interest rate and foreign exchange risk) and expose the Company to other-than-nominal capital market risk. MRBs include certain contract features primarily on FIA products that provide minimum guarantees to policyholders, such as guaranteed minimum death benefit (“GMDB”) and guaranteed minimum withdrawal benefit (“GMWB”) riders. MRBs are measured at fair value using an attributed fee measurement approach where attributed fees are explicit rider charges collectible from the policyholder used to cover the excess benefits, which represent expected benefits in excess of the policyholder’s account value. At contract inception, an attributed fee ratio is calculated equal to rider charges over benefits paid in excess of the account value attributable to the MRB. The attributed fee ratio remains static over the life of the MRB and is capped at 100%. Each period subsequent to contract inception, the attributed fee ratio is used to calculate the fair value of the MRB using a risk neutral valuation method and is based on current net amounts at risk, market data, internal and industry experience, and other factors. The balances are computed using assumptions including mortality, full and partial surrender, GMWB utilization, risk-free rates including non-performance spread and risk margin, market value of options and economic scenarios. Policyholder behavior assumptions are reviewed at least annually, typically in the third quarter, for any revisions. MRBs can either be in an asset or liability position and are presented separately on the Condensed Consolidated Balance Sheets as the right of setoff criteria are not met. Changes in fair value are recognized in Market risk benefits gain (losses) in the unaudited Condensed Consolidated Statements of Operations, except for the change in fair value due to a change in the instrument-specific credit risk, which is recognized in the unaudited Condensed Consolidated Statements of Comprehensive Earnings. See a description of the fair value methodology used in Note B - Fair Value of Financial Instruments and Note G - Market Risk Benefits . |
Benefits and Other Changes in Policy Reserves | Benefits and Other Changes in Policy Reserves Benefit expenses for deferred annuities (FIAs and fixed rate annuities), IUL policies and funding agreements include interest credited, fixed interest and/or indexed (specific to FIA and IUL policies), 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. Other changes in policy reserves include the change in the fair value of the FIA embedded derivative. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, was summarized according to the hierarchy previously described, as follows (in millions): June 30, 2023 Level 1 Level 2 Level 3 NAV Fair Value Carrying Amount Assets Cash and cash equivalents $ 1,688 $ — $ — $ — $ 1,688 $ 1,688 Fixed maturity securities available-for-sale: Asset-backed securities — 6,330 6,510 — 12,840 12,840 Commercial mortgage-backed securities — 3,932 17 — 3,949 3,949 Corporates — 13,148 1,618 — 14,766 14,766 Hybrids 95 582 — — 677 677 Municipals — 1,509 49 — 1,558 1,558 Residential mortgage-backed securities — 1,983 28 — 2,011 2,011 U.S. Government 211 — — — 211 211 Foreign Governments — 154 16 — 170 170 Preferred securities 203 438 6 — 647 647 Equity securities 68 — — 41 109 109 Derivative investments — 648 — — 648 648 Investment in unconsolidated affiliates — — 197 — 197 197 Short term investments 176 45 126 — 347 347 Reinsurance related embedded derivative, included in other assets — 277 — — 277 277 Other long-term investments — — 49 — 49 49 Market risk benefits asset — — 118 — 118 118 Total financial assets at fair value $ 2,441 $ 29,046 $ 8,734 $ 41 $ 40,262 $ 40,262 Liabilities Derivatives: FIA/IUL embedded derivatives, included in contractholder funds — — 3,821 — 3,821 3,821 Market risk benefits liability — — 313 — 313 313 Total financial liabilities at fair value $ — $ — $ 4,134 $ — $ 4,134 $ 4,134 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 Investment in unconsolidated affiliates — — 23 — 23 23 Short term investments 1,556 — — — 1,556 1,556 Reinsurance related embedded derivative, included in other assets — 279 — — 279 279 Other long-term investments — — 48 — 48 48 Market risk benefits asset — — 117 — 117 117 Total financial assets at fair value $ 2,943 $ 24,016 $ 8,262 $ 47 $ 35,268 $ 35,268 Liabilities Derivatives: FIA/IUL embedded derivatives, included in contractholder funds — — 3,115 — 3,115 3,115 Market risk benefits liability — — 282 — 282 282 Total financial liabilities at fair value $ — $ — $ 3,397 $ — $ 3,397 $ 3,397 The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described (in millions). June 30, 2023 Level 1 Level 2 Level 3 NAV Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 106 $ — $ — $ 106 $ 106 Commercial mortgage loans — — 2,144 — 2,144 2,457 Residential mortgage loans — — 2,377 — 2,377 2,619 Investments in unconsolidated affiliates — — 8 2,598 2,606 2,606 Policy loans — — 59 — 59 59 Company-owned life insurance — — 352 — 352 352 Total $ — $ 106 $ 4,940 $ 2,598 $ 7,644 $ 8,199 Liabilities Investment contracts, included in contractholder funds — — 37,228 — 37,228 41,249 Debt — 1,544 — — 1,544 1,571 Total $ — $ 1,544 $ 37,228 $ — $ 38,772 $ 42,820 December 31, 2022 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 — — 5 2,427 2,432 2,432 Policy loans — — 52 — 52 52 Other invested assets — — 10 — 10 10 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 |
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 June 30, 2023 and December 31, 2022 are as follows (in millions): Valuation Technique Unobservable Input(s) Range (Weighted average) Fair Value at June 30, 2023 June 30, 2023 Assets Asset-backed securities $ 6,233 Broker-Quoted Offered Quotes 54.70% - 171.9% (94.28%) Asset-backed securities 277 Third-Party Valuation Offered Quotes 39.65% - 101.77% (62.08%) Commercial mortgage-backed securities 17 Third-Party Valuation Offered Quotes 79.35% - 88.61% (84.76%) Corporates 789 Broker-Quoted Offered Quotes 46.39% - 104.74% (95.87%) Corporates 829 Third-Party Valuation Offered Quotes 0.00% - 103.12% (89.85%) Municipals 31 Third-Party Valuation Offered Quotes 102.11% - 102.11% (102.11%) Municipals 18 Broker-Quoted Offered Quotes 101.20% - 101.20% (101.20%) Valuation Technique Unobservable Input(s) Range (Weighted average) Fair Value at June 30, 2023 June 30, 2023 Residential mortgage-backed securities 25 Broker-Quoted Offered Quotes 0.00% - 90.45% (90.00%) Residential mortgage-backed securities 3 Third-Party Valuation Offered Quotes 93.11%-93.11% (93.11%) Foreign governments 16 Third-Party Valuation Offered Quotes 99.04% - 99.68% (99.24%) Investment in unconsolidated affiliates 197 Market Comparable Company Analysis EBITDA Multiple 5x-16x (12x) Short term investments 126 Broker-Quoted Offered Quotes 100.00% - 100.02% (100.01%) Preferred securities 6 Broker-Quoted Offered Quotes $21.25 -$21.25 ($21.25) Other long-term investments: Available-for-sale embedded derivative 26 Black Scholes Model Market Value of Fund 100% Secured borrowing receivable 10 Broker-Quoted Offered Quotes 100.00% - 100.00% (100.00%) Credit Linked Note 13 Broker-Quoted Offered Quotes 96.99% Market risk benefits asset 118 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.03%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.55% - 1.37% (1.17%) GMWB Utilization 50.00% - 60.00% (50.85%) Total financial assets at fair value $ 8,734 Liabilities Derivatives: FIA/IUL embedded derivatives, included in contractholder funds $ 3,821 Discounted Cash Flow Market Value of Option 0.00% - 30.03% (2.36%) Swap Rates 3.81% - 5.47% (4.64%) Mortality Multiplier 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 70.00% (6.61%) Partial Withdrawals 2.00% - 34.48% (2.74%) Non-Performance Spread 0.55% - 1.37% (1.17%) Option cost 0.07% - 5.67% (2.22%) Market risk benefits liability 313 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (5.03%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.55% - 1.37% (1.17%) GMWB Utilization 50.00% - 60.00% (50.85%) Total financial liabilities at fair value $ 4,134 Valuation Technique Unobservable Input(s) Range (Weighted average) Fair Value at December 31, 2022 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 0.00% - 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)% Investment in unconsolidated affiliates 23 Market Comparable Company Analysis EBITDA Multiple 5x-5.5x 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% Market risk benefits asset 117 Discounted Cash flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (4.69%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.48% - 1.44% (1.30%) GMWB Utilization 50.00% - 60.00% (50.94%) Total financial assets at fair value $ 8,262 Liabilities Derivatives: 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%) Valuation Technique Unobservable Input(s) Range (Weighted average) Fair Value at December 31, 2022 December 31, 2022 Market risk benefits liability 282 Discounted Cash Flow Mortality 100.00% - 100.00% (100.00%) Surrender Rates 0.25% - 10.00% (4.69%) Partial Withdrawal Rates 2.00% - 21.74% (2.49%) Non-Performance Spread 0.48% - 1.44% (1.30%) GMWB Utilization 50.00% - 60.00% (50.94%) Total financial liabilities at fair value $ 3,397 |
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 three and six months ended June 30, 2023 and June 30, 2022 (in millions). 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. Three months ended June 30, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Gains (Losses) Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 6,300 $ (3) $ 15 $ 379 $ (15) $ (151) $ (15) $ 6,510 $ 14 Commercial mortgage-backed securities 29 — — — — — (12) 17 — Corporates 1,532 — (33) 125 — (14) 8 1,618 (33) Municipals 32 — 17 — — — — 49 17 Residential mortgage-backed securities 12 — — 24 — — (8) 28 — Foreign governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 107 — — 90 — — — 197 — Short-term 23 — — 103 — — — 126 — Preferred securities — — — — — — 6 6 — Other long-term investments: Available-for-sale embedded derivative 25 — 1 — — — — 26 1 Credit linked note 13 — — — — — — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal assets at Level 3 fair value $ 8,099 $ (3) $ — $ 721 $ (15) $ (165) $ (21) $ 8,616 $ (1) Market risk benefits asset (b) 106 118 Total assets at Level 3 fair value $ 8,205 $ 8,734 Liabilities FIA/ IUL embedded derivatives, included in contractholder funds 3,569 197 — 93 — (38) — 3,821 — Subtotal liabilities at Level 3 fair value $ 3,569 $ 197 $ — $ 93 $ — $ (38) $ — $ 3,821 $ — Market risk benefits liability (b) 324 313 Total liabilities at Level 3 fair value $ 3,893 $ 4,134 (a) The net transfers out of Level 3 during the three months ended June 30, 2023 were exclusively to Level 2. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. Three months ended June 30, 2022 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 $ 4,161 $ 1 $ (142) $ 827 $ (39) $ (126) $ (5) $ 4,677 $ (153) Commercial mortgage-backed securities 40 — (3) — — — — 37 (2) Corporates 1,126 — (64) 304 — (6) (4) 1,356 (61) Municipals 37 — (4) — — — — 33 (4) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 17 — (1) — — — — 16 (1) Investment in unconsolidated affiliates 21 — — — — — — 21 — Short-term 19 — — — — — (19) — — Other long-term investments: Available-for-sale embedded derivative 30 (6) — — — — — 24 — Credit linked note 19 — — — — (2) — 17 — Secured borrowing receivable — — — — — — 10 10 — Subtotal assets at Level 3 fair value $ 5,470 $ (5) $ (214) $ 1,140 $ (39) $ (134) $ (18) $ 6,200 $ (221) Market risk benefits asset (b) 29 86 Total assets at Level 3 fair value $ 5,499 $ 6,286 Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,395 (575) — 146 — (25) — 2,941 — Subtotal liabilities at Level 3 fair value $ 3,395 $ (575) $ — $ 146 $ — $ (25) $ — $ 2,941 $ — Market risk benefits liability (b) 486 292 Total liabilities at Level 3 fair value $ 3,881 $ 3,233 (a) The net transfers out of Level 3 during the three months ended June 30, 2023 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. Six months ended June 30, 2023 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 $ 6,263 $ (11) $ 33 $ 795 $ (98) $ (386) $ (86) $ 6,510 $ 32 Commercial mortgage-backed securities 37 — 1 12 — — (33) 17 1 Corporates 1,427 (1) (56) 259 — (19) 8 1,618 (56) Hybrids — — — — — — — — — Municipals 29 — 20 — — — — 49 20 Residential mortgage-backed securities 302 1 8 32 — (8) (307) 28 8 Foreign Governments 16 — — — — — — 16 — Short-term — — — 126 — — — 126 — Preferred securities — — — — — — 6 6 — Other long-term investments: Available-for-sale embedded derivative 23 — 3 — — — — 26 3 Investment in affiliate 23 — — 174 — — — 197 — Credit linked note 15 — — — — (2) — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal assets at Level 3 fair value $ 8,145 $ (11) $ 9 $ 1,398 $ (98) $ (415) $ (412) $ 8,616 $ 8 Market risk benefits asset (b) 117 118 Total assets at Level 3 fair value $ 8,262 $ 8,734 Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,115 582 — 189 — (65) — 3,821 — Subtotal liabilities at Level 3 fair value $ 3,115 $ 582 $ — $ 189 $ — $ (65) $ — $ 3,821 $ — Market risk benefits liability (b) 282 313 Total liabilities at Level 3 fair value $ 3,397 $ 4,134 (a) The net transfers out of Level 3 during the six months ended June 30, 2023 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. Six months ended June 30, 2022 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 3,959 1 (272) 1,227 (39) (278) 79 4,677 $ (291) Commercial mortgage-backed securities 35 — (5) — — — 7 37 (4) Corporates 1,121 — (137) 382 — (32) 22 1,356 (134) Municipals 43 — (10) — — — — 33 (9) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 18 — (2) — — — — 16 (1) Short-term 321 — (1) 20 — — (340) — (1) Preferred securities 1 — (1) — — — — — (1) Other long-term investments: Available-for-sale embedded derivative 34 (10) — — — — — 24 — Credit linked note 23 — (3) — — (3) — 17 — Secured borrowing receivable — — — — — — 10 10 — Investment in affiliate 21 — — — — — — 21 — Subtotal assets at Level 3 fair value $ 5,576 $ (9) $ (431) $ 1,638 $ (39) $ (313) $ (222) $ 6,200 $ (441) Market risk benefits asset (b) 41 86 Total assets at Level 3 fair value $ 5,617 $ 6,286 Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,883 (1,159) — 272 — (55) — 2,941 — Subtotal liabilities at Level 3 fair value $ 3,883 $ (1,159) $ — $ 272 $ — $ (55) $ — $ 2,941 $ — Market risk benefits liability (b) 469 292 Total liabilities at Level 3 fair value $ 4,352 $ 3,233 (a) The net transfers out of Level 3 during the six months ended June 30, 2022 were to Level 2. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. |
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 three and six months ended June 30, 2023 and June 30, 2022 (in millions). 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. Three months ended June 30, 2023 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Change in Unrealized Gains (Losses) Incl in OCI Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 6,300 $ (3) $ 15 $ 379 $ (15) $ (151) $ (15) $ 6,510 $ 14 Commercial mortgage-backed securities 29 — — — — — (12) 17 — Corporates 1,532 — (33) 125 — (14) 8 1,618 (33) Municipals 32 — 17 — — — — 49 17 Residential mortgage-backed securities 12 — — 24 — — (8) 28 — Foreign governments 16 — — — — — — 16 — Investment in unconsolidated affiliates 107 — — 90 — — — 197 — Short-term 23 — — 103 — — — 126 — Preferred securities — — — — — — 6 6 — Other long-term investments: Available-for-sale embedded derivative 25 — 1 — — — — 26 1 Credit linked note 13 — — — — — — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal assets at Level 3 fair value $ 8,099 $ (3) $ — $ 721 $ (15) $ (165) $ (21) $ 8,616 $ (1) Market risk benefits asset (b) 106 118 Total assets at Level 3 fair value $ 8,205 $ 8,734 Liabilities FIA/ IUL embedded derivatives, included in contractholder funds 3,569 197 — 93 — (38) — 3,821 — Subtotal liabilities at Level 3 fair value $ 3,569 $ 197 $ — $ 93 $ — $ (38) $ — $ 3,821 $ — Market risk benefits liability (b) 324 313 Total liabilities at Level 3 fair value $ 3,893 $ 4,134 (a) The net transfers out of Level 3 during the three months ended June 30, 2023 were exclusively to Level 2. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. Three months ended June 30, 2022 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 $ 4,161 $ 1 $ (142) $ 827 $ (39) $ (126) $ (5) $ 4,677 $ (153) Commercial mortgage-backed securities 40 — (3) — — — — 37 (2) Corporates 1,126 — (64) 304 — (6) (4) 1,356 (61) Municipals 37 — (4) — — — — 33 (4) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 17 — (1) — — — — 16 (1) Investment in unconsolidated affiliates 21 — — — — — — 21 — Short-term 19 — — — — — (19) — — Other long-term investments: Available-for-sale embedded derivative 30 (6) — — — — — 24 — Credit linked note 19 — — — — (2) — 17 — Secured borrowing receivable — — — — — — 10 10 — Subtotal assets at Level 3 fair value $ 5,470 $ (5) $ (214) $ 1,140 $ (39) $ (134) $ (18) $ 6,200 $ (221) Market risk benefits asset (b) 29 86 Total assets at Level 3 fair value $ 5,499 $ 6,286 Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,395 (575) — 146 — (25) — 2,941 — Subtotal liabilities at Level 3 fair value $ 3,395 $ (575) $ — $ 146 $ — $ (25) $ — $ 2,941 $ — Market risk benefits liability (b) 486 292 Total liabilities at Level 3 fair value $ 3,881 $ 3,233 (a) The net transfers out of Level 3 during the three months ended June 30, 2023 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. Six months ended June 30, 2023 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 $ 6,263 $ (11) $ 33 $ 795 $ (98) $ (386) $ (86) $ 6,510 $ 32 Commercial mortgage-backed securities 37 — 1 12 — — (33) 17 1 Corporates 1,427 (1) (56) 259 — (19) 8 1,618 (56) Hybrids — — — — — — — — — Municipals 29 — 20 — — — — 49 20 Residential mortgage-backed securities 302 1 8 32 — (8) (307) 28 8 Foreign Governments 16 — — — — — — 16 — Short-term — — — 126 — — — 126 — Preferred securities — — — — — — 6 6 — Other long-term investments: Available-for-sale embedded derivative 23 — 3 — — — — 26 3 Investment in affiliate 23 — — 174 — — — 197 — Credit linked note 15 — — — — (2) — 13 — Secured borrowing receivable 10 — — — — — — 10 — Subtotal assets at Level 3 fair value $ 8,145 $ (11) $ 9 $ 1,398 $ (98) $ (415) $ (412) $ 8,616 $ 8 Market risk benefits asset (b) 117 118 Total assets at Level 3 fair value $ 8,262 $ 8,734 Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,115 582 — 189 — (65) — 3,821 — Subtotal liabilities at Level 3 fair value $ 3,115 $ 582 $ — $ 189 $ — $ (65) $ — $ 3,821 $ — Market risk benefits liability (b) 282 313 Total liabilities at Level 3 fair value $ 3,397 $ 4,134 (a) The net transfers out of Level 3 during the six months ended June 30, 2023 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. Six months ended June 30, 2022 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 3,959 1 (272) 1,227 (39) (278) 79 4,677 $ (291) Commercial mortgage-backed securities 35 — (5) — — — 7 37 (4) Corporates 1,121 — (137) 382 — (32) 22 1,356 (134) Municipals 43 — (10) — — — — 33 (9) Residential mortgage-backed securities — — — 9 — — — 9 — Foreign Governments 18 — (2) — — — — 16 (1) Short-term 321 — (1) 20 — — (340) — (1) Preferred securities 1 — (1) — — — — — (1) Other long-term investments: Available-for-sale embedded derivative 34 (10) — — — — — 24 — Credit linked note 23 — (3) — — (3) — 17 — Secured borrowing receivable — — — — — — 10 10 — Investment in affiliate 21 — — — — — — 21 — Subtotal assets at Level 3 fair value $ 5,576 $ (9) $ (431) $ 1,638 $ (39) $ (313) $ (222) $ 6,200 $ (441) Market risk benefits asset (b) 41 86 Total assets at Level 3 fair value $ 5,617 $ 6,286 Liabilities FIA/IUL embedded derivatives, included in contractholder funds 3,883 (1,159) — 272 — (55) — 2,941 — Subtotal liabilities at Level 3 fair value $ 3,883 $ (1,159) $ — $ 272 $ — $ (55) $ — $ 2,941 $ — Market risk benefits liability (b) 469 292 Total liabilities at Level 3 fair value $ 4,352 $ 3,233 (a) The net transfers out of Level 3 during the six months ended June 30, 2022 were to Level 2. (b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Consolidated Investments | The Company’s consolidated investments are summarized as follows (in millions): June 30, 2023 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value AFS securities Asset-backed securities $ 13,492 $ (7) $ 65 $ (710) $ 12,840 $ 12,840 Commercial mortgage-backed securities 4,307 (18) 5 (345) 3,949 3,949 Corporates 17,491 — 43 (2,768) 14,766 14,766 Hybrids 747 — 3 (73) 677 677 Municipals 1,792 — 11 (245) 1,558 1,558 Residential mortgage-backed securities 2,121 (7) 11 (114) 2,011 2,011 U.S. Government 213 — 1 (3) 211 211 Foreign Governments 211 — — (41) 170 170 Total AFS securities $ 40,374 $ (32) $ 139 $ (4,299) $ 36,182 $ 36,182 December 31, 2022 Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value AFS 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 AFS securities $ 35,723 $ (31) $ 96 $ (4,570) $ 31,218 $ 31,218 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below (in millions). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. June 30, 2023 December 31, 2022 Amortized Cost Fair Value Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and U.S. Government Securities: Due in one year or less $ 227 $ 222 $ 124 $ 123 Due after one year through five years 3,116 2,968 2,193 2,059 Due after five years through ten years 2,065 1,862 1,840 1,633 Due after ten years 15,046 12,330 14,417 11,379 Subtotal 20,454 17,382 18,574 15,194 Other securities, which provide for periodic payments: Asset-backed securities 13,492 12,840 12,209 11,467 Commercial mortgage-backed securities 4,307 3,949 3,309 3,036 Residential mortgage-backed securities 2,121 2,011 1,631 1,521 Subtotal 19,920 18,800 17,149 16,024 Total fixed maturity AFS securities $ 40,374 $ 36,182 $ 35,723 $ 31,218 |
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 AFS securities aggregated by investment category was as follows (in millions): Three months ended June 30, 2023 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 AFS securities Asset-backed securities $ (10) $ 1 $ — $ 2 $ — $ — $ — $ — $ (7) Commercial mortgage-backed securities — (20) — 2 — — — — (18) Residential mortgage-backed securities (6) (1) — — — — — — (7) Total AFS securities $ (16) $ (20) $ — $ 4 $ — $ — $ — $ — $ (32) Three months ended June 30, 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 AFS securities Asset-backed securities $ (1) $ — $ — $ (1) $ — $ — $ — — $ (2) Commercial mortgage-backed securities (2) — — — 2 — — — — Residential mortgage-backed securities (3) — — — — — — — (3) Total AFS securities $ (6) $ — $ — $ (1) $ 2 $ — $ — $ — $ (5) Six months ended June 30, 2023 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 AFS securities Asset-backed securities $ (8) $ (6) $ — $ 7 $ — $ — $ — — $ (7) Commercial mortgage-backed securities (1) (20) — 3 — — — — (18) Corporates (15) — — — 15 — — — — Residential mortgage-backed securities (7) (1) — 1 — — — — (7) Total AFS securities $ (31) $ (27) $ — $ 11 $ 15 $ — $ — $ — $ (32) Six months ended June 30, 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 AFS securities Asset-backed securities $ (3) $ — $ — $ (1) $ 2 $ — $ — — $ (2) Commercial mortgage-backed securities (2) — — — 2 — — — — Residential mortgage-backed securities (3) — — — — — — — (3) Total AFS securities $ (8) $ — $ — $ (1) $ 4 $ — $ — $ — $ (5) (a) Purchased credit deteriorated financial assets (“PCD”) |
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 as of June 30, 2023 and December 31, 2022 were as follows (dollars in millions): June 30, 2023 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized AFS securities Asset-backed securities $ 4,219 $ (182) $ 6,220 $ (517) $ 10,439 $ (699) Commercial mortgage-backed securities 1,555 (102) 1,663 (242) 3,218 (344) Corporates 4,598 (294) 8,884 (2,474) 13,482 (2,768) Hybrids 194 (15) 457 (58) 651 (73) Municipals 550 (68) 793 (177) 1,343 (245) Residential mortgage-backed securities 1,031 (17) 619 (93) 1,650 (110) U.S. Government 61 (2) 4 (1) 65 (3) Foreign Government 25 (3) 136 (38) 161 (41) Total AFS securities $ 12,233 $ (683) $ 18,776 $ (3,600) $ 31,009 $ (4,283) Total number of AFS in an unrealized loss position less than twelve months 1,938 Total number of AFS securities in an unrealized loss position twelve months or longer 2,531 Total number of AFS securities in an unrealized loss position 4,469 December 31, 2022 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized AFS 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 AFS securities $ 20,533 $ (2,600) $ 8,007 $ (1,930) $ 28,540 $ (4,530) Total number of AFS securities in an unrealized loss position less than twelve months 2,774 Total number of AFS securities in an unrealized loss position twelve months or longer 1,212 Total number of AFS securities in an unrealized loss position 3,986 |
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): June 30, 2023 December 31, 2022 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: Hotel $ 18 1 % $ 18 1 % Industrial 538 22 % 520 22 % Mixed Use 12 1 % 12 1 % Multifamily 1,012 41 % 1,013 42 % Office 328 13 % 330 14 % Retail 103 4 % 105 4 % Student Housing 83 3 % 83 3 % Other 376 15 % 335 13 % Total CMLs, gross of valuation allowance $ 2,470 100 % $ 2,416 100 % Allowance for expected credit loss (13) (10) Total CMLs, net of valuation allowance $ 2,457 $ 2,406 U.S. Region: East North Central $ 150 6 % $ 151 6 % East South Central 76 3 % 76 3 % Middle Atlantic 325 13 % 326 13 % Mountain 353 14 % 355 15 % New England 166 7 % 158 7 % Pacific 726 29 % 708 28 % South Atlantic 553 22 % 521 22 % West North Central 4 1 % 4 1 % West South Central 117 5 % 117 5 % Total CMLs, gross of valuation allowance $ 2,470 100 % $ 2,416 100 % Allowance for expected credit loss (13) (10) Total CMLs, net of valuation allowance $ 2,457 $ 2,406 |
Loans Segregated by Risk Rating Exposure | CMLs segregated by risk rating exposure as of June 30, 2023 and December 31, 2022, were as follows, gross of valuation allowances (in millions): June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Current (less than 30 days past due) $ 55 $ 338 $ 1,299 $ 487 $ — $ 265 $ 2,444 30-89 days past due — — — — — — — 90 days or more past due — — — — — 9 9 Total CMLs (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Current (less than 30 days past due) $ 350 $ 1,300 $ 488 $ — $ — $ 269 $ 2,407 30-89 days past due — — — — — — — 90 days or more past due — — — — — 9 9 Total CMLs $ 350 $ 1,300 $ 488 $ — $ — $ 278 $ 2,416 (a) Excludes loans under development with an amortized cost and estimated fair value of $ 17 million for June 30, 2023. RMLs segregated by risk rating exposure as of June 30, 2023 and December 31, 2022, were as follows, gross of valuation allowances (in millions): June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total Current (less than 30 days past due) $ 137 $ 963 $ 862 $ 200 $ 192 $ 199 $ 2,553 30-89 days past due — 6 24 5 4 6 45 90 days or more past due — 7 20 15 29 1 72 Total RML mortgages $ 137 $ 976 $ 906 $ 220 $ 225 $ 206 $ 2,670 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total Current (less than 30 days past due) $ 766 $ 884 $ 214 $ 185 $ 23 $ 33 $ 2,105 30-89 days past due 2 7 — 4 — — 13 90 days or more past due 3 9 15 34 1 — 62 Total RML mortgages $ 771 $ 900 $ 229 $ 223 $ 24 $ 33 $ 2,180 |
Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios | The following tables present 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 at June 30, 2023 and December 31, 2022 (dollars in millions) : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 <1.00 June 30, 2023 LTV Ratios: Less than 50.00% $ 510 $ 4 $ 11 $ 525 21 % $ 491 23 % 50.00% to 59.99% 740 — — 740 30 % 649 30 % 60.00% to 74.99% 1,160 10 — 1,170 48 % 973 46 % 75.00% to 84.99% — — 18 18 1 % 14 1 % Total CMLs (a) $ 2,410 $ 14 $ 29 $ 2,453 100 % $ 2,127 100 % 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 % Total CMLs (a) $ 2,371 $ 7 $ 29 $ 2,407 100 % $ 2,074 100 % (a) Excludes loans under development with an amortized cost and estimated fair value of $ 17 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. June 30, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total LTV Less than 50.00% $ 6 $ 67 $ 119 $ 207 $ — $ 126 $ 525 50.00% to 59.99% 27 149 267 158 — 139 740 60.00% to 74.99% 22 113 913 122 — — 1,170 75.00% to 84.99% — 9 — — — 9 18 Total CMLs (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 DSCR Greater than 1.25x $ 48 $ 326 $ 1,299 $ 487 $ — $ 250 $ 2,410 1.00x - 1.25x 7 3 — — — 4 14 Less than 1.00x — 9 — — — 20 29 Total CMLs (a) $ 55 $ 338 $ 1,299 $ 487 $ — $ 274 $ 2,453 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total 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 CMLs (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 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 CMLs (a) $ 341 $ 1,300 $ 488 $ — $ — $ 278 $ 2,407 (a) Excludes loans under development with an amortized cost and estimated fair value of $ 17 million for June 30, 2023 and an amortized cost and estimated fair value of $9 million for December 31, 2022. |
Distribution 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): June 30, 2023 U.S. State: Amortized Cost % of Total Florida $ 152 5 % New York 131 5 % California 123 5 % All other states (a) 2,264 85 % Total RMLs, gross of valuation allowance $ 2,670 100 % (a) The individual concentration of each state is equal to or less than 5% as of June 30, 2023. 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 RMLs, gross of valuation allowance $ 2,180 100 % (a) The individual concentration of each state is equal to or less than 5% as of December 31, 2022. |
Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming | The credit quality of RMLs as of June 30, 2023 and December 31, 2022, was as follows (dollars in millions): June 30, 2023 December 31, 2022 Performance indicators: Amortized Cost % of Total Amortized Cost % of Total Performing $ 2,598 97 % $ 2,118 97 % Non-performing 72 3 % 62 3 % Total RMLs, gross of valuation allowance $ 2,670 100 % $ 2,180 100 % Allowance for expected loan loss (51) — % (32) — % Total RMLs, net of valuation allowance $ 2,619 100 % $ 2,148 100 % |
Nonaccrual Loans by Amortized Cost | Non-accrual loans by amortized cost as of June 30, 2023 and December 31, 2022, were as follows (in millions): Amortized cost of loans on non-accrual June 30, 2023 December 31, 2022 Residential mortgage: $ 72 $ 62 Commercial mortgage: 9 9 Total non-accrual mortgages $ 81 $ 71 |
Allowance for Expected Credit Losses on Loans | The allowances for our mortgage loan portfolio are summarized as follows (in millions): Three months ended June 30, 2023 Six months ended June 30, 2023 Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (48) $ (12) $ (60) $ (32) $ (10) $ (42) Provision for loan losses (3) (1) (4) (19) (3) (22) Ending Balance $ (51) $ (13) $ (64) $ (51) $ (13) $ (64) Three months ended June 30, 2022 Six months ended June 30, 2022 Residential Mortgage Commercial Mortgage Total Residential Mortgage Commercial Mortgage Total Beginning Balance $ (26) $ (6) $ (32) $ (25) $ (6) $ (31) Provision for loan losses (3) — (3) (4) — (4) Ending Balance $ (29) $ (6) $ (35) $ (29) $ (6) $ (35) |
Schedule of Sources of Net Investment Income Reported | The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Fixed maturity securities, available-for-sale $ 448 $ 336 $ 880 $ 655 Equity securities 4 4 9 8 Preferred securities 12 15 22 26 Mortgage loans 57 49 108 88 Invested cash and short-term investments 17 9 33 13 Limited partnerships 44 58 101 171 Other investments 5 1 14 7 Gross investment income 587 472 1,167 968 Investment expense (62) (47) (123) (92) Interest and investment income $ 525 $ 425 $ 1,044 $ 876 |
Realized Gain (Loss) on Investments | Details underlying Recognized gains and (losses), net reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net realized (losses) gains on fixed maturity available-for-sale securities $ (52) $ (59) $ (96) $ (93) Net realized/unrealized (losses) gains on equity securities (a) 3 (20) 8 (22) Net realized/unrealized (losses) gains on preferred securities (b) 5 (83) (4) (150) Realized (losses) gains on other invested assets 15 — 15 (4) Change in allowance for expected credit losses (21) (6) (29) (7) Derivatives and embedded derivatives: Realized (losses) gains on certain derivative instruments (65) (35) (154) 15 Unrealized (losses) gains on certain derivative instruments 164 (359) 311 (717) Change in fair value of reinsurance related embedded derivatives (c) 17 141 (2) 263 Change in fair value of other derivatives and embedded derivatives 1 (5) 3 (8) Realized (losses) gains on derivatives and embedded derivatives 117 (258) 158 (447) Recognized gains and (losses), net $ 67 $ (426) $ 52 $ (723) (a) Includes net valuation (losses) gains of $3 million and $(20) million for the three months ended June 30, 2023 and June 30, 2022, respectively, and net valuation (losses) gains of $8 million and $(22) million for the six months ended June 30, 2023 and June 30, 2022, respectively. (b) Includes net valuation (losses) gains of $19 million and $(83) million for the three months ended June 30, 2023 and June 30, 2022, respectively, and net valuation (losses) gains of $44 million and $(149) million for the six months ended June 30, 2023 and June 30, 2022, respectively. (c) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties with Somerset and Aspida Re. |
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): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Proceeds $ 608 $ 783 $ 1,053 $ 1,795 Gross gains 2 1 5 4 Gross losses (30) (59) (79) (94) |
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 as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investment in unconsolidated affiliates $ 2,803 $ 4,491 $ 2,427 $ 4,030 Fixed maturity securities 18,471 20,853 15,680 17,404 Total unconsolidated VIE investments $ 21,274 $ 25,344 $ 18,107 $ 21,434 |
Schedules of Investment Concentrations | Our underlying investment concentrations that exceed 10% of shareholders equity are as follows (in millions): June 30, 2023 December 31, 2022 Blackstone Wave Asset Holdco (a) $ 738 $ 741 ELBA (b) 463 470 COLI 316 308 Verus Securitization Trust (c) 297 302 Jade 1 (d) 279 271 Jade 2 (d) 279 271 Jade 3 (d) 279 271 Jade 4 (d) 279 271 (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. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying Amount of Derivative Instruments | The carrying amounts of derivative instruments, including derivative instruments embedded in FIA and IUL contracts, and reinsurance is as follows (in millions): June 30, 2023 December 31, 2022 Assets: Derivative investments: Call options $ 648 $ 244 Other long-term investments: Other embedded derivatives 26 23 Prepaid expenses and other assets: Reinsurance related embedded derivatives 277 279 $ 951 $ 546 Liabilities: Contractholder funds: FIA/ IUL embedded derivatives $ 3,821 $ 3,115 $ 3,821 $ 3,115 |
Change in Fair Value of Derivative Instruments | The change in fair value of derivative instruments included in the accompanying unaudited Condensed Consolidated Statements of Operations is as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Recognized gains and (losses), net Net investment gains (losses): Call options $ 98 $ (395) $ 153 $ (709) Futures contracts — (8) 5 (5) Foreign currency forwards — 9 (1) 12 Other derivatives and embedded derivatives 2 (5) 3 (8) Reinsurance related embedded derivatives 17 141 (2) 263 Total net investment gains (losses) $ 117 $ (258) $ 158 $ (447) Benefits and other changes in policy reserves: FIA/ IUL embedded derivatives (decrease) increase $ 252 $ (454) $ 706 $ (942) |
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): June 30, 2023 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) Notional Amount Fair Value Collateral Net Credit Risk Merrill Lynch AA/*/A+ $ 4,033 $ 69 $ 26 $ 43 Morgan Stanley */Aa3/A+ 2,375 50 60 — Barclay's Bank A+/A1/A+ 6,137 121 113 8 Canadian Imperial Bank of Commerce AA/Aa2/A+ 6,542 204 180 24 Wells Fargo A+/A1/BBB+ 1,480 54 53 1 Goldman Sachs A/A2/BBB+ 1,212 23 22 1 Credit Suisse A+/A3/A 266 9 9 — Truist A+/A2/A 2,055 89 85 4 Citibank A+/Aa3/A+ 1,272 29 31 — Total $ 25,372 $ 648 $ 579 $ 81 December 31, 2022 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) 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 (a) An * represents credit ratings that were not available. |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Schedule Of Effect Of Reinsurance On Premiums Earned And Benefits Incurred And Reserve Changes Table | The effects of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three and six months ended June 30, 2023 and June 30, 2022 were as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 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 $ 510 $ 862 $ 39 $ 204 $ 811 $ 1,734 $ 606 $ 709 Ceded (27) (45) (35) (581) (53) (105) (67) (883) Net $ 483 $ 817 $ 4 $ (377) $ 758 $ 1,629 $ 539 $ (174) |
Reinsurance Recoverable, Allowance for Credit Loss | The expected credit loss reserves were as follows (in millions): Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Balance at Beginning of Period $ (9) $ (20) $ (10) $ (20) Changes in the expected credit loss reserve — 1 1 1 Balance at End of Period $ (9) $ (19) $ (9) $ (19) |
Intangibles (Tables)
Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table reconciles to Other intangible assets, net, on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 VOBA $ 1,529 $ 1,615 DAC 1,856 1,411 DSI 258 200 Value of distribution asset 93 100 Computer software 70 61 Definite lived trademarks, tradenames, and other 37 34 Indefinite lived tradenames and other 8 8 Total Other intangible assets, net $ 3,851 $ 3,429 |
Schedule of Indefinite-Lived Intangible Assets | The following table reconciles to Other intangible assets, net, on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 VOBA $ 1,529 $ 1,615 DAC 1,856 1,411 DSI 258 200 Value of distribution asset 93 100 Computer software 70 61 Definite lived trademarks, tradenames, and other 37 34 Indefinite lived tradenames and other 8 8 Total Other intangible assets, net $ 3,851 $ 3,429 |
Rollforward of Value of Business Acquired | The following tables roll forward VOBA by product for the six months ended June 30, 2023 and June 30, 2022 (in millions): FIA Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total Balance at January 1, 2023 $ 1,166 $ 32 $ 201 $ 143 $ 73 $ 1,615 Amortization (71) (3) (6) (4) (2) (86) Balance at June 30, 2023 $ 1,095 $ 29 $ 195 $ 139 $ 71 $ 1,529 FIA Fixed Rate Annuities Immediate Annuities Universal Life Traditional Life Total Balance at January 1, 2022 $ 1,314 $ 39 $ 212 $ 153 $ 25 $ 1,743 Amortization (76) (3) (6) (5) (1) (91) Shadow Premium Deficiency Testing (“PDT”) — — — — 52 52 Balance at June 30, 2022 $ 1,238 $ 36 $ 206 $ 148 $ 76 $ 1,704 VOBA amortization expense of $(86) million and $(91) million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2023 and June 30, 2022, respectively. |
Schedule of Reconciliation of VOBA to the Condensed Consolidated Balance Sheets | The following table presents a reconciliation of VOBA to the table above which is reconciled to the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 FIA $ 1,095 $ 1,166 Fixed Rate Annuities 29 32 Immediate Annuities 195 201 Universal Life 139 143 Traditional Life 71 73 Total $ 1,529 $ 1,615 |
Rollforward of Deferred Policy Acquisition Costs | The following tables roll forward DAC by product for the six months ended June 30, 2023 and June 30, 2022 (in millions): FIA Fixed Rate Annuities Universal Life Total (a) Balance at January 1, 2023 $ 971 $ 83 $ 348 $ 1,402 Capitalization 249 91 109 449 Amortization (47) (20) (16) (83) Reinsurance related adjustments — 79 — 79 Balance at June 30, 2023 $ 1,173 $ 233 $ 441 $ 1,847 FIA Fixed Rate Annuities Universal Life Total (a) Balance at January 1, 2022 $ 564 $ 38 $ 173 $ 775 Capitalization 216 25 91 332 Amortization (29) (4) (9) (42) Balance at June 30, 2022 $ 751 $ 59 $ 255 $ 1,065 (a) Excludes insignificant amounts of DAC related to Funding Agreement Backed Note (“FABN”) DAC amortization expense of $(83) million and $(42) million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2023 and June 30, 2022, respectively. |
Schedule of Reconciliation of Deferred Policy Acquisition Cost to Statement of Financial Position | The following table presents a reconciliation of DAC to the table above which is reconciled to the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 FIA $ 1,173 $ 971 Fixed Rate Annuities 233 83 Universal Life 441 348 Funding Agreements 9 9 Total $ 1,856 $ 1,411 |
Rollforward of Deferred Sale Inducement Cost | The following tables roll forward DSI for the six months ended June 30, 2023 and June 30, 2022 (in millions): FIA Total Balance at January 1, 2023 $ 200 $ 200 Capitalization 68 68 Amortization (10) (10) Balance at June 30, 2023 $ 258 $ 258 FIA Total Balance at January 1, 2022 $ 127 $ 127 Capitalization 38 38 Amortization (6) (6) Balance at June 30, 2022 $ 159 $ 159 DSI amortization expense of $(10) million and $(6) million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2023 and June 30, 2022, respectively. |
Schedule of Reconciliation of DSI Cost to Condensed Consolidated Balance Sheets | The following table presents a reconciliation of DSI to the table above which is reconciled to the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 FIA $ 258 $ 200 Total $ 258 $ 200 |
Estimated Amortization Expense for VOBA in Future Fiscal Periods | For the in-force liabilities as of June 30, 2023, the estimated amortization expense for VOBA in future fiscal periods is as follows (in millions): Estimated Amortization Expense Fiscal Year 2023 $ 80 2024 151 2025 139 2026 128 2027 117 Thereafter 914 |
Market Risk Benefits (Tables)
Market Risk Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Balances and Changes in Market Risk Benefit | The following table presents the balances of and changes in MRBs associated with FIAs and fixed rate annuities for the six months ended June 30, 2023 and the years ended December 31, 2022 and December 31, 2021 (in millions): June 30, 2023 December 31, 2022 December 31, 2021 FIA Fixed rate annuities FIA Fixed rate annuities FIA Fixed rate annuities Balance, beginning of period $ 164 $ 1 $ 426 $ 2 $ 478 $ 1 Balance, beginning of period, before effect of changes in the instrument-specific credit risk $ 102 $ 1 $ 280 $ 1 $ 320 $ 1 Issuances and benefit payments (8) — (21) — (9) — Attributed fees collected and interest accrual 68 — 107 1 99 1 Actual policyholder behavior different from expected 11 — 43 — (22) — Changes in assumptions and other 1 — (76) — — — Effects of market related movements (38) — (231) (1) (108) (1) Balance, end of period, before effect of changes in the instrument-specific credit risk $ 136 $ 1 $ 102 $ 1 $ 280 $ 1 Effect of changes in the instrument-specific credit risk 58 — 62 — 146 1 Balance, end of period $ 194 $ 1 $ 164 $ 1 $ 426 $ 2 Weighted-average attained age of policyholders weighted by total AV (years) 68.41 72.67 68.59 72.88 68.95 73.10 Net amount at risk $ 1,006 $ 3 $ 952 $ 3 $ 1,304 $ 4 The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRB amounts in the Condensed Consolidated Balance Sheets (in millions): June 30, 2023 December 31, 2022 December 31, 2021 Asset Liability Net Asset Liability Net Asset Liability Net FIA $ 118 $ 312 $ 194 $ 117 $ 281 $ 164 $ 41 $ 467 $ 426 Fixed rate annuities — 1 1 — 1 1 — 2 2 Total $ 118 $ 313 $ 195 $ 117 $ 282 $ 165 $ 41 $ 469 $ 428 |
Contractholder Funds (Tables)
Contractholder Funds (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Summary of Balances and Changes in Contractholder Funds | The following tables summarize balances of and changes in contractholder funds’ account balances (in millions): June 30, 2023 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) Balance, beginning of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Issuances 2,415 2,584 99 — 456 Premiums received 52 1 180 — — Policy charges (a) (87) — (124) — — Surrenders and withdrawals (876) (520) (45) — — Benefit payments (254) (118) (16) (27) (323) Interest credited 69 179 20 27 25 Other 23 (1) — — 3 Balance, end of year $ 26,108 $ 11,483 $ 2,226 $ 2,613 $ 2,143 Embedded derivative adjustment (c) 98 — 73 — — Gross Liability, end of period $ 26,206 $ 11,483 $ 2,299 $ 2,613 $ 2,143 Less: Reinsurance (17) (5,431) (924) — — Net Liability, after Reinsurance $ 26,189 $ 6,052 $ 1,375 $ 2,613 $ 2,143 Weighted-average crediting rate 1.10 % 7.07 % 3.85 % N/A N/A Net amount at risk (d) N/A N/A 53,401 N/A N/A Cash surrender value 24,337 10,707 1,760 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2022 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) Balance, beginning of year 21,997 6,367 1,907 1,904 1,543 Issuances 4,462 3,758 167 700 1,192 Premiums received 106 3 295 — — Policy charges (a) (166) (1) (209) — — Surrenders and withdrawals (1,322) (797) (74) — — Benefit payments (485) (192) (22) (35) (789) Interest credited 198 220 48 45 36 Other (24) — — (1) — Balance, end of year $ 24,766 $ 9,358 $ 2,112 $ 2,613 $ 1,982 Embedded derivative adjustment (c) (343) — 15 — — Gross Liability, end of period $ 24,423 $ 9,358 $ 2,127 $ 2,613 $ 1,982 Less: Reinsurance (17) (3,723) (947) — — Net Liability, after Reinsurance $ 24,406 $ 5,635 $ 1,180 $ 2,613 $ 1,982 Weighted-average crediting rate 0.85 % 2.84 % 2.39 % N/A N/A Net amount at risk (d) N/A N/A 53,348 N/A N/A Cash surrender value 188 5,992 1,698 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. December 31, 2021 FIA Fixed rate annuities Universal Life FABN (b) FHLB (b) Balance, beginning of year $ 18,703 $ 5,142 $ 1,696 $ — $ 1,203 Issuances 4,400 1,743 114 1,899 759 Premiums received 103 3 233 — — Policy charges (a) (148) (1) (167) — — Surrenders and withdrawals (1,303) (543) (68) — — Benefit payments (440) (145) (19) (7) (447) Interest credited 686 167 118 12 30 Other (4) 1 — — (2) Balance, end of year $ 21,997 $ 6,367 $ 1,907 $ 1,904 $ 1,543 Embedded derivative adjustment (c) 603 — 74 — — Gross Liability, end of period $ 22,600 $ 6,367 $ 1,981 $ 1,904 $ 1,543 Less: Reinsurance (17) (1,692) (984) — — Net Liability, after Reinsurance $ 22,583 $ 4,675 $ 997 $ 1,904 $ 1,543 Weighted-average crediting rate 3.43 % 2.94 % 6.77 % N/A N/A Net amount at risk (d) N/A N/A 41,326 N/A N/A Cash surrender value 20,455 5,992 1,572 N/A N/A (a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. |
Schedule Of Reconciliation Of Policyholder Account Balances To Statement Of Financial Position | The following table reconciles contractholder funds’ account balances to the Contractholder funds liability in the Condensed Consolidated Balance Sheet (in millions): June 30, 2023 December 31, 2022 December 31, 2021 FIA $ 26,206 $ 24,423 $ 22,600 Fixed rate annuities 11,483 9,358 6,367 Immediate annuities 317 332 352 Universal life 2,299 2,127 1,981 Traditional life 5 5 5 Funding Agreement-FABN 2,613 2,613 1,904 FHLB 2,143 1,982 1,543 PRT 4 3 1 Total $ 45,070 $ 40,843 $ 34,753 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums (in millions): June 30, 2023 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA 0.00%-1.50% $ 23,749 $ 796 $ 403 $ 663 $ 25,611 1.51%-2.50% 141 — 1 — 142 Greater than 2.50% 353 — 2 — 355 Total $ 24,243 $ 796 $ 406 $ 663 $ 26,108 Fixed Rate Annuities 0.00%-1.50% $ 17 $ 30 $ 1,838 $ 8,287 $ 10,172 1.51%-2.50% 8 13 28 313 362 Greater than 2.50% 934 3 4 8 949 Total $ 959 $ 46 $ 1,870 $ 8,608 $ 11,483 Universal Life 0.00%-1.50% $ 1,822 $ 4 $ — $ 18 $ 1,844 1.51%-2.50% — — — — — Greater than 2.50% 346 35 1 — 382 Total $ 2,168 $ 39 $ 1 $ 18 $ 2,226 December 31, 2022 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA 0.00%-1.50% $ 22,848 $ 801 $ 410 $ 151 $ 24,210 1.51%-2.50% 162 — 1 — 163 Greater than 2.50% 390 — 3 — 393 Total $ 23,400 $ 801 $ 414 $ 151 $ 24,766 Fixed Rate Annuities 0.00%-1.50% $ 10 $ 32 $ 1,871 $ 6,379 $ 8,292 1.51%-2.50% 9 14 30 1 54 Greater than 2.50% 997 4 4 7 1,012 Total $ 1,016 $ 50 $ 1,905 $ 6,387 $ 9,358 Universal Life 0.00%-1.50% $ 1,701 $ 3 $ — $ 17 $ 1,721 1.51%-2.50% — — — — — Greater than 2.50% 346 44 1 — 391 Total $ 2,047 $ 47 $ 1 $ 17 $ 2,112 December 31, 2021 At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total FIA 0.00%-1.50% $ 20,162 $ 803 $ 388 $ — $ 21,353 1.51%-2.50% 171 11 25 — 207 Greater than 2.50% 431 3 3 — 437 Total $ 20,764 $ 817 $ 416 $ — $ 21,997 Fixed Rate Annuities 0.00%-1.50% $ 2 $ 28 $ 1,928 $ 3,219 $ 5,177 1.51%-2.50% 9 15 37 1 62 Greater than 2.50% 954 142 25 7 1,128 Total $ 965 $ 185 $ 1,990 $ 3,227 $ 6,367 Universal Life 0.00%-1.50% $ 1,486 $ 2 $ — $ 13 $ 1,501 1.51%-2.50% — — — — — Greater than 2.50% 359 46 1 — 406 Total $ 1,845 $ 48 $ 1 $ 13 $ 1,907 |
Future Policy Benefits (Tables)
Future Policy Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Summary Balances and Changes in the Present Value of Expected Net Premiums and Present Value FPB | The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts (in millions): June 30, 2023 December 31, 2022 December 31, 2021 Expected net premiums Balance, beginning of year $ 797 $ 1,020 $ 1,152 Beginning balance of original discount rate 974 1,045 1,131 Effect of actual variances from expected experience 7 33 25 Balance adjusted for variances from expectation 981 1,078 1,156 Interest accrual 9 20 22 Net premiums collected (60) (124) (133) Ending Balance at original discount rate 930 974 1,045 Effect of changes in discount rate assumptions (167) (177) (25) Balance, end of year $ 763 $ 797 $ 1,020 Expected FPB Balance, beginning of year $ 2,151 $ 2,772 $ 3,105 Beginning balance of original discount rate 2,665 2,806 2,995 Effect of actual variances from expected experience (9) 13 (14) Balance adjusted for variances from expectation 2,656 $ 2,819 $ 2,981 Interest accrual 28 59 62 Benefits payments (99) (213) (237) Ending Balance at original discount rate 2,585 $ 2,665 $ 2,806 Effect of changes in discount rate assumptions (474) (514) (34) Balance, end of year $ 2,111 $ 2,151 $ 2,772 Net liability for future policy benefits $ 1,348 $ 1,354 $ 1,752 Less: Reinsurance recoverable 587 612 749 Net liability for future policy benefits, after reinsurance recoverable $ 761 $ 742 $ 1,003 Weighted-average duration of liability for future policyholder benefits (years) 7.36 7.58 8.54 The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts (in millions): June 30, 2023 Immediate annuities PRT Balance, beginning of year $ 1,429 $ 2,165 Beginning balance of original discount rate 1,858 2,475 Effect of changes in cash flow assumptions — (5) Effect of actual variances from expected experience (17) — Balance adjusted for variances from expectation 1,841 2,470 Issuances 10 755 Interest accrual 33 50 Benefits payments (65) (115) Ending Balance at original discount rate 1,819 3,160 Effect of changes in discount rate assumptions (408) (290) Balance, end of year $ 1,411 $ 2,870 Net liability for future policy benefits $ 1,411 $ 2,870 Less: Reinsurance recoverable 116 — Net liability for future policy benefits, after reinsurance recoverable $ 1,295 $ 2,870 Weighted-average duration of liability for future policyholder benefits (years) 12.47 8.23 December 31, 2022 Immediate annuities PRT Balance, beginning of year $ 1,954 $ 1,148 Beginning balance of original discount rate 1,935 1,151 Effect of changes in cash flow assumptions — (20) Effect of actual variances from expected experience (26) 2 Balance adjusted for variances from expectation $ 1,909 $ 1,133 Issuances 26 1,418 Interest accrual 60 50 Benefits payments (137) (126) Ending Balance at original discount rate $ 1,858 $ 2,475 Effect of changes in discount rate assumptions (429) (310) Balance, end of year $ 1,429 $ 2,165 Net liability for future policy benefits $ 1,429 $ 2,165 Less: Reinsurance recoverable 118 — Net liability for future policy benefits, after reinsurance recoverable $ 1,311 $ 2,165 Weighted-average duration of liability for future policyholder benefits (years) 11.76 8.09 December 31, 2021 Immediate annuities PRT Balance, beginning of year $ 2,153 $ — Beginning balance of original discount rate 2,040 — Effect of actual variances from expected experience (47) — Balance adjusted for variances from expectation $ 1,993 $ — Issuances 18 1,155 Interest accrual 60 2 Benefits payments (136) (6) Ending Balance at original discount rate $ 1,935 $ 1,151 Effect of changes in discount rate assumptions 19 (3) Balance, end of year $ 1,954 $ 1,148 Net liability for future policy benefits $ 1,954 $ 1,148 Less: Reinsurance recoverable 145 — Net liability for future policy benefits, after reinsurance recoverable $ 1,809 $ 1,148 Weighted-average duration of liability for future policyholder benefits (years) 13.61 8.75 |
Summary of Changes in Liability for Deferred Profit Liability | The following tables summarize balances and changes in the liability for DPL for limited-payment contracts (in millions): June 30, 2023 December 31, 2022 December 31, 2021 Immediate annuities PRT Immediate annuities PRT Immediate annuities PRT Balance, beginning of year $ 69 $ 4 $ 57 $ 7 $ 22 $ — Effect of modeling changes 4 — — — — — Effect of changes in cash flow assumptions — — — (2) — — Effect of actual variances from expected experience 10 2 16 — 39 — Balance adjusted for variances from expectation 83 6 73 5 61 — Issuances 1 — 1 — $ — $ 7 Interest accrual 1 (1) 2 — 2 — Amortization (3) (1) (7) (1) (6) — Balance, end of year $ 82 $ 4 $ 69 $ 4 $ 57 $ 7 |
Schedule Of Reconciliation Of Future Policy Benefits To Statement Of Financial Position | The following table reconciles the net FPB to the FPB in the Condensed Consolidated Balance Sheets (in millions). The DPL for Immediate Annuities and PRT is presented together with the FPB in the Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below: June 30, 2023 December 31, 2022 December 31, 2021 Traditional Life $ 1,348 $ 1,354 $ 1,752 Immediate annuities 1,411 1,429 1,954 PRT 2,870 2,165 1,148 Immediate annuities DPL 82 69 57 PRT DPL 4 4 7 Total $ 5,715 $ 5,021 $ 4,918 |
Schedule Of Liability For Future Policy Benefit Expected Future Policy Benefit Undiscounted Before Reinsurance | The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts (in millions): Undiscounted Discounted June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Traditional Life Expected future benefit payments $ 3,027 $ 3,201 $ 2,089 $ 2,686 Expected future gross premiums 1,114 1,245 803 1,091 Immediate annuities Expected future benefit payments $ 3,361 $ 3,516 $ 1,411 $ 1,907 Expected future gross premiums — — — — PRT Expected future benefit payments $ 4,724 $ 2,265 $ 3,161 $ 1,652 Expected future gross premiums — — — — |
Revenue from External Customers by Products and Services | The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Operations (in millions): Gross Premiums (a) Interest Expense (b) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Traditional Life $ 63 $ 70 $ 19 $ 20 Immediate annuities 11 16 33 30 PRT 737 520 50 19 Total $ 811 $ 606 $ 102 $ 69 (a) Included in Life insurance premiums and other fees on the unaudited Condensed Consolidated Statements of Operations. (b) Included in Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) on the unaudited Condensed Consolidated Statements of Operations. |
Schedule Of Liability For Future Policy Benefit, Weighted Average Discount Rates | The following table presents the weighted-average interest rate: June 30, 2023 December 31, 2022 December 31, 2021 Traditional Life Interest accretion rate 2.33 % 2.32 % 2.29 % Current discount rate 4.63 % 5.37 % 2.41 % Immediate annuities Interest accretion rate 3.12 % 3.07 % 3.04 % Current discount rate 5.10 % 5.21 % 3.07 % PRT Interest accretion rate 4.04 % 3.20 % 1.20 % Current discount rate 5.28 % 5.40 % 2.79 % |
Schedule Of Liability for Future Policy Benefit, Mortality And Lapse, Actual And Expected Experience | The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB: June 30, 2023 Traditional Life Immediate annuities PRT Mortality Actual experience 1.4 % 3.2 % 2.3 % Expected experience 1.4 % 1.6 % 2.1 % Lapses Actual experience 0.1 % — % — % Expected experience 0.3 % — % — % December 31, 2022 Traditional Life Immediate annuities PRT Mortality Actual experience 1.5 % 3.0 % 1.9 % Expected experience 1.3 % 1.9 % 2.5 % Lapses Actual experience — % — % — % Expected experience 0.3 % — % — % December 31, 2021 Traditional Life Immediate annuities PRT Mortality Actual experience 1.7 % 4.2 % — % Expected experience 1.3 % 2.0 % — % Lapses Actual experience 0.1 % — % — % Expected experience 0.3 % — % — % |
Liability For Future Policy Benefits, Additional Information | The following table provides additional information for periods in which a cohort has an NPR > 100% (and therefore capped at 100%) (dollars in millions): June 30, 2023 December 31, 2022 Cohort X Description Cohort X Description Net Premium Ratio before capping 100 % Term with ROP Non-NY Cohort 100 % Term with ROP Non-NY Cohort Reserves before NP Ratio capping $ 1,184 Term with ROP Non-NY Cohort $ 1,172 Term with ROP Non-NY Cohort Reserves after NP Ratio capping $ 1,185 Term with ROP Non-NY Cohort $ 1,173 Term with ROP Non-NY Cohort Loss Expense $ 1 Term with ROP Non-NY Cohort — Term with ROP Non-NY Cohort |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The following table presents a reconciliation of Accounts payable and accrued liabilities to the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): June 30, 2023 December 31, 2022 Salaries and incentives $ 56 $ 72 Accrued benefits 58 58 URL 215 166 Trade accounts payable 113 114 Liability for policy and contract claims 92 109 Retained asset account 96 117 Remittances and items not allocated 193 225 Option collateral liabilities 459 178 Lease liability 12 13 Other accrued liabilities 425 208 Accounts payable and accrued liabilities $ 1,719 $ 1,260 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Components of Notes Payable | The carrying amounts of notes payable are summarized as follows (in millions): June 30, 2023 December 31, 2022 Revolving Credit Facility - Short-term (variable) $ 511 $ 547 7.40% F&G Notes 495 — 5.50% F&G Notes 565 567 Notes payable $ 1,571 $ 1,114 |
Schedule of Gross Principal Maturities of Notes Payable | Gross principal maturities of notes payable at June 30, 2023 are as follows (in millions): 2023 $ 515 2024 — 2025 550 2026 — 2027 — Thereafter 500 $ 1,565 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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). Six months ended June 30, 2023 2022 Cash paid for: Interest $ 24 $ 18 Income taxes — 7 Deferred sales inducements 68 38 Non-cash investing and financing activities: Investments received from pension risk transfer premiums 219 — Change in proceeds of sales of investments available for sale receivable in period (151) 151 Change in purchases of investments available for sale payable in period 237 226 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unfunded Commitments | A summary of unfunded commitments by invested asset class as of June 30, 2023 is included below (in millions): June 30, 2023 Asset Type Unconsolidated VIEs: Limited partnerships $ 1,688 Whole loans 1,044 Fixed maturity securities, ABS 247 Direct Lending 910 Other fixed maturity securities, AFS 21 Commercial mortgage loans 16 Other assets 125 Other invested assets 6 Committed amounts included in liabilities 2 Total $ 4,059 |
ASU 2018-12 Transition (Tables)
ASU 2018-12 Transition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of Changes in FPB, VOBA, DAC, DSI, URL and MRB | The following table summarizes the balance of and changes in the FPB on January 1, 2021 due to adoption of ASU 2018-12 (in millions): Immediate annuities Traditional Life Total (3) Balance, December 31, 2020 $ 1,861 $ 2,144 $ 4,005 Cumulative effect of retrospective adoption (1) 201 (279) (78) Effect of remeasurement of liability at current discount rate (2) 113 88 201 Balance, January 1, 2021 $ 2,175 $ 1,953 $ 4,128 Less: Reinsurance Recoverable 322 793 1,115 Balance, January 1, 2021, net of reinsurance $ 1,853 $ 1,160 $ 3,013 (1) Adjustments for the cumulative effect of adoption of the new measurement guidance under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020, net of the effects of any change in the DPL. (2) The remeasurement of the liability at the current discount rate is reflected as an adjustment to opening AOCI upon the adoption of ASU 2018-12. (3) PRT was not written as of the transition date, January 1, 2021, and as a result is not presented in the transition adjustment roll forward. The following table summarizes the balance of and changes in VOBA on January 1, 2021 due to adoption of ASU 2018-12 (in millions): FIA Fixed rate annuities Immediate annuities Universal Life Traditional Life Total Balance, December 31, 2020 $ 1,208 $ 15 $ 86 $ 139 $ 18 $ 1,466 Adjustment for reversal of AOCI adjustments (1) 208 24 — 29 (29) 232 Cumulative effect of retrospective adoption (2) (14) 7 (5) (9) (1) (22) Transition opening balance adjustment (3) 69 2 145 5 43 264 Balance, January 1, 2021 $ 1,471 $ 48 $ 226 $ 164 $ 31 $ 1,940 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method from the FNF acquisition date through December 31, 2020. (3) Adjustments for the change in VOBA due to the full retrospective adjustment of carrying amounts of acquired contracts as of the FNF Acquisition Date due to the adoption of ASU 2018-12. The following table summarizes the balance of and changes in DAC on January 1, 2021 due to adoption of ASU 2018-12 (in millions): FIA Fixed rate annuities Universal Life Total Balance, December 31, 2020 $ 167 $ 14 $ 41 $ 222 Adjustment for reversal of AOCI adjustments (1) 15 2 8 25 Cumulative effect of retrospective adoption (2) (1) — (1) (2) Balance, January 1, 2021 $ 181 $ 16 $ 48 $ 245 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020. The following table summarizes the balance of and changes in DSI on January 1, 2021 due to adoption of ASU 2018-12 (in millions): FIA Total Balance, December 31, 2020 $ 36 $ 36 Adjustment for reversal of AOCI adjustments (1) 5 5 Cumulative effect of retrospective adoption (2) 4 4 Balance, January 1, 2021 $ 45 $ 45 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020. The following table summarizes the balance of and changes in URL on January 1, 2021 due to adoption of ASU 2018-12 (in millions): Universal Life Total Balance, December 31, 2020 $ 2 $ 2 Adjustment for reversal of AOCI adjustments (1) 25 25 Cumulative effect of retrospective adoption (2) 2 2 Balance, January 1, 2021 $ 29 $ 29 (1) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (2) Adjustments for the cumulative effect of adoption of the simplified amortization methodology under the full retrospective method for contract issue years from the FNF Acquisition Date through December 31, 2020. The following table summarizes the balance of and changes in the asset and liability position of MRBs on January 1, 2021 due to adoption of ASU 2018-12 (in millions): FIA Fixed rate annuities Total Balance, December 31, 2020 - Carrying amount of MRBs under prior guidance (1) $ 531 $ — $ 531 Adjustment for reversal of AOCI adjustments (2) (116) — (116) Cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date (3) 159 — 159 Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs (4) (96) 1 (95) Balance, January 1, 2021 - Market risk benefits at fair value $ 478 $ 1 $ 479 Less: Reinsurance Recoverable — — — Balance, January 1, 2021, net of reinsurance $ 478 $ 1 $ 479 (1) The pre-adoption balance as of December 31, 2020 balance for MRBs represents the contract features that meet the definition of an MRB under ASU 2018-12 and the related carrying amount of those features prior to the ASU. Those contract features were previously accounted for at fair value as a derivative or embedded derivative under ASC 815 or as an additional liability for annuitization benefits or death or other insurance benefits under ASC 944. (2) Prior period "shadow" adjustments in AOCI have been reversed upon the adoption of ASU 2018-12 from opening AOCI. (3) The cumulative effective of the change in instrument-specific credit risk between the FNF Acquisition Date or, if later, the original contract issuance date and the transition date to ASU 2018-12, which is recorded as an adjustment to opening AOCI. (4) The cumulative difference (exclusive of instrument-specific credit risk change) between the pre-adoption carrying amount and the fair value measurement for MRBs is recorded as an adjustment to opening retained earnings. |
Effect of Transition Adjustments on Equity | The following table presents the effect of transition adjustments on Equity on January 1, 2021 due to the adoption of ASU 2018-12 (in millions): January 1, 2021 Retained Earnings AOCI Contractholder funds $ 101 $ 115 MRB 30 (160) FPB (14) (159) VOBA (21) 233 DAC (1) 5 Increase to Equity, gross of tax $ 95 $ 34 Tax impact 20 9 Increase to Equity, net of tax $ 75 $ 25 |
Basis of Financial Statements -
Basis of Financial Statements - Description of Business (Details) | 6 Months Ended |
Jun. 30, 2023 insuranceAgent | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reporting segments | 1 |
Basis of Financial Statements_2
Basis of Financial Statements - Recent Developments (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 20, 2023 insuranceAgent | Mar. 21, 2023 USD ($) | Feb. 21, 2023 USD ($) | Jan. 30, 2023 insuranceAgent | Jan. 06, 2023 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jan. 13, 2023 USD ($) | Dec. 31, 2022 USD ($) | Nov. 22, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Stock repurchase program, period | 3 years | |||||||||
Stock repurchase program, authorized amount | $ 25 | |||||||||
Stock repurchases (in shares) | shares | 790 | 790 | ||||||||
Shares repurchased | $ 16 | $ 16 | ||||||||
Shares repurchased, average cost per share (in usd per share) | $ / shares | $ 20.79 | $ 20.79 | ||||||||
Share repurchases, remaining authorized amount under program | $ 9 | $ 9 | ||||||||
7.40% Senior Notes Due 2028 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 7.40% | 7.40% | 7.40% | |||||||
Aggregate principal amount | $ 500 | |||||||||
Credit Agreement | Credit Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility, maximum borrowing capacity | $ 665 | $ 550 | ||||||||
Credit facility outstanding | $ 515 | $ 515 | $ 550 | |||||||
Partial repayment of debt | $ 35 | |||||||||
Credit facility, increase in principal amount | $ 115 | |||||||||
Credit facility, remaining borrowing available | $ 150 | 150 | ||||||||
DCMT | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Ownership percentage | 40% | |||||||||
Number of insurance agents (approximately) | insuranceAgent | 1,000 | |||||||||
Syncis Holdings, LLC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Ownership percentage | 49% | |||||||||
Number of insurance agents (approximately) | insuranceAgent | 1,200 | |||||||||
Distribution Investments and Affiliates | Commission Fees Paid | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commissions paid | $ 77 |
Basis of Financial Statements_3
Basis of Financial Statements - Future Policy Benefits and Market Risk Benefit (Details) | Jun. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NPR capped percent | 100% |
MRB, attributed fee ratio capped percent | 100% |
Basis of Financial Statements_4
Basis of Financial Statements - Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment to increase opening retained earnings | $ 2,518 | $ 2,485 | $ 2,405 | $ 3,096 | $ 3,773 | $ 5,034 | |
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment to increase opening retained earnings | $ 1,971 | $ 1,866 | $ 2,061 | $ 2,075 | $ 1,690 | $ 1,451 | |
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment to increase opening retained earnings | $ 75 |
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 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | |||
Fixed maturity securities available for sale | $ 36,182 | $ 31,218 | |
Derivative investments | 648 | 244 | |
Investments in unconsolidated affiliates | 197 | 23 | |
Market risk benefits asset | 118 | 117 | $ 41 |
Total financial assets at fair value | 8,734 | 8,262 | |
Derivatives: | |||
Market risk benefits liability | 313 | 282 | $ 469 |
Fair Value | |||
Assets | |||
Cash and cash equivalents | 1,688 | 960 | |
Derivative investments | 648 | 244 | |
Investments in unconsolidated affiliates | 2,606 | 2,432 | |
Short term investments | 347 | 1,556 | |
Market risk benefits asset | 118 | 117 | |
Total financial assets at fair value | 40,262 | 35,268 | |
Derivatives: | |||
Market risk benefits liability | 313 | 282 | |
Total financial liabilities at fair value | 3,397 | ||
Carrying Amount | |||
Assets | |||
Cash and cash equivalents | 1,688 | 960 | |
Derivative investments | 648 | 244 | |
Investments in unconsolidated affiliates | 2,606 | 2,432 | |
Short term investments | 347 | 1,556 | |
Market risk benefits asset | 118 | 117 | |
Total financial assets at fair value | 40,262 | 35,268 | |
Derivatives: | |||
Market risk benefits liability | 313 | 282 | |
Total financial liabilities at fair value | 4,134 | 3,397 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 1,688 | 960 | |
Derivative investments | 0 | 0 | |
Investments in unconsolidated affiliates | 0 | 0 | |
Short term investments | 176 | 1,556 | |
Market risk benefits asset | 0 | 0 | |
Total financial assets at fair value | 2,441 | 2,943 | |
Derivatives: | |||
Market risk benefits liability | 0 | 0 | |
Total financial liabilities at fair value | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Derivative investments | 648 | 244 | |
Investments in unconsolidated affiliates | 0 | 0 | |
Short term investments | 45 | 0 | |
Market risk benefits asset | 0 | 0 | |
Total financial assets at fair value | 29,046 | 24,016 | |
Derivatives: | |||
Market risk benefits liability | 0 | 0 | |
Total financial liabilities at fair value | 0 | 0 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Derivative investments | 0 | 0 | |
Investments in unconsolidated affiliates | 8 | 5 | |
Short term investments | 126 | 0 | |
Market risk benefits asset | 118 | 117 | |
Total financial assets at fair value | 8,734 | 8,262 | |
Derivatives: | |||
Market risk benefits liability | 313 | 282 | |
Total financial liabilities at fair value | 4,134 | 3,397 | |
NAV | |||
Assets | |||
Investments in unconsolidated affiliates | 2,598 | 2,427 | |
Total financial assets at fair value | 41 | 47 | |
Reinsurance related embedded derivative, included in other assets | Fair Value | |||
Assets | |||
Derivative investments | 277 | 279 | |
Reinsurance related embedded derivative, included in other assets | Carrying Amount | |||
Assets | |||
Derivative investments | 277 | 279 | |
Reinsurance related embedded derivative, included in other assets | Level 1 | |||
Assets | |||
Derivative investments | 0 | 0 | |
Reinsurance related embedded derivative, included in other assets | Level 2 | |||
Assets | |||
Derivative investments | 277 | 279 | |
Reinsurance related embedded derivative, included in other assets | Level 3 | |||
Assets | |||
Derivative investments | 0 | 0 | |
FIA/ IUL embedded derivatives | Fair Value | |||
Derivatives: | |||
FIA/IUL embedded derivatives, included in contractholder funds | 3,115 | ||
FIA/ IUL embedded derivatives | Carrying Amount | |||
Derivatives: | |||
FIA/IUL embedded derivatives, included in contractholder funds | 3,821 | 3,115 | |
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 | 3,821 | 3,115 | |
Asset-backed securities | |||
Assets | |||
Fixed maturity securities available for sale | 12,840 | 11,467 | |
Asset-backed securities | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 12,840 | 11,467 | |
Asset-backed securities | Carrying Amount | |||
Assets | |||
Fixed maturity securities available for sale | 12,840 | 11,467 | |
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 | 6,330 | 5,204 | |
Asset-backed securities | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 6,510 | 6,263 | |
Commercial mortgage-backed securities | |||
Assets | |||
Fixed maturity securities available for sale | 3,949 | 3,036 | |
Commercial mortgage-backed securities | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 3,949 | 3,036 | |
Commercial mortgage-backed securities | Carrying Amount | |||
Assets | |||
Fixed maturity securities available for sale | 3,949 | 3,036 | |
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 | 3,932 | 2,999 | |
Commercial mortgage-backed securities | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 17 | 37 | |
Corporates | |||
Assets | |||
Fixed maturity securities available for sale | 14,766 | 12,899 | |
Corporates | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 14,766 | 12,899 | |
Corporates | Carrying Amount | |||
Assets | |||
Fixed maturity securities available for sale | 14,766 | 12,899 | |
Corporates | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
Corporates | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 13,148 | 11,472 | |
Corporates | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 1,618 | 1,427 | |
Hybrids | |||
Assets | |||
Fixed maturity securities available for sale | 677 | 705 | |
Hybrids | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 677 | 705 | |
Hybrids | Carrying Amount | |||
Assets | |||
Fixed maturity securities available for sale | 677 | 705 | |
Hybrids | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 95 | 93 | |
Hybrids | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 582 | 612 | |
Hybrids | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
Municipals | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 1,558 | 1,410 | |
Municipals | Carrying Amount | |||
Assets | |||
Fixed maturity securities available for sale | 1,558 | 1,410 | |
Municipals | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
Municipals | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 1,509 | 1,381 | |
Municipals | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 49 | 29 | |
Residential mortgage-backed securities | |||
Assets | |||
Fixed maturity securities available for sale | 2,011 | 1,521 | |
Residential mortgage-backed securities | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 2,011 | 1,521 | |
Residential mortgage-backed securities | Carrying Amount | |||
Assets | |||
Fixed maturity securities available for sale | 2,011 | 1,521 | |
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 | 1,983 | 1,219 | |
Residential mortgage-backed securities | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 28 | 302 | |
U.S. Government | |||
Assets | |||
Fixed maturity securities available for sale | 211 | 32 | |
U.S. Government | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 211 | 32 | |
U.S. Government | Carrying Amount | |||
Assets | |||
Fixed maturity securities available for sale | 211 | 32 | |
U.S. Government | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 211 | 32 | |
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 | 170 | 148 | |
Foreign governments | Fair Value | |||
Assets | |||
Fixed maturity securities available for sale | 170 | 148 | |
Foreign governments | Carrying Amount | |||
Assets | |||
Fixed maturity securities available for sale | 170 | 148 | |
Foreign governments | Level 1 | |||
Assets | |||
Fixed maturity securities available for sale | 0 | 0 | |
Foreign governments | Level 2 | |||
Assets | |||
Fixed maturity securities available for sale | 154 | 132 | |
Foreign governments | Level 3 | |||
Assets | |||
Fixed maturity securities available for sale | 16 | 16 | |
Preferred securities | |||
Assets | |||
Equity and preferred securities | 647 | 722 | |
Preferred securities | Fair Value | |||
Assets | |||
Equity and preferred securities | 647 | 722 | |
Preferred securities | Carrying Amount | |||
Assets | |||
Equity and preferred securities | 647 | 722 | |
Preferred securities | Level 1 | |||
Assets | |||
Equity and preferred securities | 203 | 248 | |
Preferred securities | Level 2 | |||
Assets | |||
Equity and preferred securities | 438 | 474 | |
Preferred securities | Level 3 | |||
Assets | |||
Equity and preferred securities | 6 | 0 | |
Equity securities | Fair Value | |||
Assets | |||
Equity and preferred securities | 109 | 101 | |
Equity securities | Carrying Amount | |||
Assets | |||
Equity and preferred securities | 109 | 101 | |
Equity securities | Level 1 | |||
Assets | |||
Equity and preferred securities | 68 | 54 | |
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 | 41 | 47 | |
Investment in unconsolidated affiliates | Fair Value | |||
Assets | |||
Investments in unconsolidated affiliates | 197 | 23 | |
Investment in unconsolidated affiliates | Carrying Amount | |||
Assets | |||
Investments in unconsolidated affiliates | 197 | 23 | |
Investment in unconsolidated affiliates | Level 1 | |||
Assets | |||
Investments in unconsolidated affiliates | 0 | 0 | |
Investment in unconsolidated affiliates | Level 2 | |||
Assets | |||
Investments in unconsolidated affiliates | 0 | 0 | |
Investment in unconsolidated affiliates | Level 3 | |||
Assets | |||
Investments in unconsolidated affiliates | 197 | 23 | |
Other long-term investments | Fair Value | |||
Assets | |||
Other long-term investments | 49 | 48 | |
Other long-term investments | Carrying Amount | |||
Assets | |||
Other long-term investments | 49 | 48 | |
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 | $ 49 | $ 48 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | Jun. 30, 2023 $ / Contract | Jan. 13, 2023 USD ($) | Jun. 01, 2020 USD ($) |
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% | ||
Senior Notes | 7.40% Senior Notes Due 2028 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Aggregate principal amount | $ 500 | ||
Interest rate, stated percentage | 7.40% | 7.40% | |
Credit linked note | 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 | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 8,734 | $ 8,262 |
Liabilities, fair value | 4,134 | 3,397 |
FIA/ IUL embedded derivatives | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 3,821 | $ 3,115 |
FIA/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0 | 0 |
FIA/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Swap Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0381 | 0.0388 |
FIA/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
FIA/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0025 | 0.0025 |
FIA/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0200 | 0.0200 |
FIA/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0048 | |
Embedded derivative liability | 0.0055 | |
FIA/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Option cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0007 | 0.0007 |
FIA/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.3003 | 0.2390 |
FIA/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Swap Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0547 | 0.0473 |
FIA/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
FIA/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.7000 | 0.7000 |
FIA/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.3448 | 0.2941 |
FIA/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0144 | |
Embedded derivative liability | 0.0137 | |
FIA/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Option cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0567 | 0.0497 |
FIA/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0236 | 0.0087 |
FIA/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Swap Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0464 | 0.0431 |
FIA/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1 | 1 |
FIA/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0661 | 0.0657 |
FIA/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0274 | 0.0273 |
FIA/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0130 | |
Embedded derivative liability | 0.0117 | |
FIA/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Option cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0222 | 0.0189 |
Asset-backed securities | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 6,233 | $ 5,916 |
Asset-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 277 | $ 347 |
Asset-backed securities | Minimum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.5470 | 0.5285 |
Asset-backed securities | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.3965 | 0.4143 |
Asset-backed securities | Maximum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.719 | 1.1717 |
Asset-backed securities | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0177 | 2.1050 |
Asset-backed securities | Weighted Average | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9428 | 0.9418 |
Asset-backed securities | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.6208 | 0.6799 |
Commercial mortgage-backed securities | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 20 | |
Commercial mortgage-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 17 | $ 17 |
Commercial mortgage-backed securities | Minimum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0902 | |
Commercial mortgage-backed securities | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.7935 | 0.7466 |
Commercial mortgage-backed securities | Maximum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0902 | |
Commercial mortgage-backed securities | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.8861 | 0.8848 |
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 | |
Commercial mortgage-backed securities | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.8476 | 0.8274 |
Corporates | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 789 | $ 602 |
Corporates | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 829 | $ 825 |
Corporates | Minimum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.4639 | 0.7916 |
Corporates | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0 | 0 |
Corporates | Maximum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0474 | 1.0253 |
Corporates | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0312 | 1.0496 |
Corporates | Weighted Average | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9587 | 0.9416 |
Corporates | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.8985 | 0.8969 |
Municipals | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 18 | |
Municipals | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 31 | $ 29 |
Municipals | Minimum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0120 | |
Municipals | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0211 | 0.9395 |
Municipals | Maximum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0120 | |
Municipals | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0211 | 0.9395 |
Municipals | Weighted Average | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0120 | |
Municipals | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 1.0211 | 0.9395 |
Residential mortgage-backed securities | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 25 | $ 302 |
Residential mortgage-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 3 | |
Residential mortgage-backed securities | Minimum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0 | 0 |
Residential mortgage-backed securities | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9311 | |
Residential mortgage-backed securities | Maximum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9045 | 0.9104 |
Residential mortgage-backed securities | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9311 | |
Residential mortgage-backed securities | Weighted Average | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9000 | 0.8638 |
Residential mortgage-backed securities | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9311 | |
Foreign governments | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 16 | $ 16 |
Foreign governments | Minimum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9904 | 0.9978 |
Foreign governments | Maximum | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9968 | 1.0229 |
Foreign governments | Weighted Average | Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.9924 | (1.0056) |
Investment in unconsolidated affiliates | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 197 | $ 23 |
Investment in unconsolidated affiliates | Minimum | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliates | 5 | 5 |
Investment in unconsolidated affiliates | Maximum | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliates | 16 | 5.5 |
Investment in unconsolidated affiliates | Weighted Average | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliates | 12 | |
Short term investments | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 126 | |
Short term investments | Minimum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short-term investments | 1 | |
Short term investments | Maximum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short-term investments | 1.0002 | |
Short term investments | Weighted Average | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Short-term investments | 1.0001 | |
Preferred securities | Broker-quoted/Market Comparable | Affiliated Entity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 6 | |
Preferred securities | Minimum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 21.25 | |
Preferred securities | Maximum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 21.25 | |
Preferred securities | Weighted Average | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities | 21.25 | |
Available-for-sale embedded derivative | Black Scholes Model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 26 | $ 23 |
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 | $ 10 |
Secured borrowing receivable | Minimum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Secured borrowing receivable | 1 | 1 |
Secured borrowing receivable | Maximum | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Secured borrowing receivable | 1 | 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 | 1 |
Credit linked note | Broker-quoted/Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 13 | $ 15 |
Credit linked note | Broker-quoted/Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit Linked Note | 0.9699 | 0.9623 |
Market risk benefits asset | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 118 | $ 117 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0025 | 0.0025 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0200 | 0.0200 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0055 | 0.0048 |
Market risk benefits asset | Minimum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits asset | Minimum | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5000 | 0.5000 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.1000 | 0.1000 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.2174 | 0.2174 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0137 | 0.0144 |
Market risk benefits asset | Maximum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits asset | Maximum | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.6000 | 0.6000 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0503 | 0.0469 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0249 | 0.0249 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0117 | 0.0130 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits asset | Weighted Average | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5085 | 0.5094 |
Market risk benefits liability | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 313 | $ 282 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0025 | 0.0025 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0200 | 0.0200 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0055 | 0.0048 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits liability | Minimum | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5000 | 0.5000 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.1000 | 0.1000 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.2174 | 0.2174 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0137 | 0.0144 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits liability | Maximum | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.6000 | 0.6000 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0503 | 0.0469 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0249 | 0.0249 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0117 | 0.0130 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1 | 1 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5085 | 0.5094 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Changes to Fair Value of Financial Instruments Level 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Liabilities: | ||||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, 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 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, 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 |
Level 3 | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | $ 8,205 | $ 5,499 | $ 8,262 | $ 5,617 |
Balance at End of Period | 8,734 | 6,286 | 8,734 | 6,286 |
Liabilities: | ||||
Balance at Beginning of Period | 3,893 | 3,881 | 3,397 | 4,352 |
Balance at End of Period | 4,134 | 3,233 | 4,134 | 3,233 |
FIA/ IUL embedded derivatives | ||||
Liabilities: | ||||
Balance at Beginning of Period | 3,569 | 3,395 | 3,115 | 3,883 |
Liabilities, Total Gains (Losses) Included in Earnings | 197 | (575) | 582 | (1,159) |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 |
Liabilities, Purchases | 93 | 146 | 189 | 272 |
Liabilities, Sales | 0 | 0 | 0 | 0 |
Liabilities, Settlements | (38) | (25) | (65) | (55) |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 3,821 | 2,941 | 3,821 | 2,941 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | 0 |
Asset-backed securities | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 6,300 | 4,161 | 6,263 | 3,959 |
Assets, Total Gains (Losses) Included in Earnings | (3) | 1 | (11) | 1 |
Assets, Total Gains (Losses) Included in AOCI | 15 | (142) | 33 | (272) |
Assets, Purchases | 379 | 827 | 795 | 1,227 |
Assets, Sales | (15) | (39) | (98) | (39) |
Assets, Settlements | (151) | (126) | (386) | (278) |
Assets, Net transfer In (Out) of Level 3 | (15) | (5) | (86) | 79 |
Balance at End of Period | 6,510 | 4,677 | 6,510 | 4,677 |
Change in Unrealized Gains (Losses) Incl in OCI | 14 | (153) | 32 | (291) |
Commercial mortgage-backed securities | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 29 | 40 | 37 | 35 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | (3) | 1 | (5) |
Assets, Purchases | 0 | 0 | 12 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | (12) | 0 | (33) | 7 |
Balance at End of Period | 17 | 37 | 17 | 37 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | (2) | 1 | (4) |
Corporates | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 1,532 | 1,126 | 1,427 | 1,121 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | (1) | 0 |
Assets, Total Gains (Losses) Included in AOCI | (33) | (64) | (56) | (137) |
Assets, Purchases | 125 | 304 | 259 | 382 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | (14) | (6) | (19) | (32) |
Assets, Net transfer In (Out) of Level 3 | 8 | (4) | 8 | 22 |
Balance at End of Period | 1,618 | 1,356 | 1,618 | 1,356 |
Change in Unrealized Gains (Losses) Incl in OCI | (33) | (61) | (56) | (134) |
Hybrids | ||||
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 Gains (Losses) Incl in OCI | 0 | |||
Municipals | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 32 | 37 | 29 | 43 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 17 | (4) | 20 | (10) |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 49 | 33 | 49 | 33 |
Change in Unrealized Gains (Losses) Incl in OCI | 17 | (4) | 20 | (9) |
Residential mortgage-backed securities | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 12 | 302 | 0 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 1 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 8 | 0 |
Assets, Purchases | 24 | 9 | 32 | 9 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | (8) | 0 |
Assets, Net transfer In (Out) of Level 3 | (8) | 0 | (307) | 0 |
Balance at End of Period | 28 | 9 | 28 | 9 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 8 | 0 |
Foreign governments | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 16 | 17 | 16 | 18 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | (1) | 0 | (2) |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 16 | 16 | 16 | 16 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | (1) | 0 | (1) |
Short-term | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 23 | 19 | 0 | 321 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | (1) |
Assets, Purchases | 103 | 0 | 126 | 20 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | (19) | 0 | (340) |
Balance at End of Period | 126 | 0 | 126 | 0 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | (1) |
Preferred securities | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 0 | 1 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | (1) | |
Assets, Purchases | 0 | 0 | 0 | |
Assets, Sales | 0 | 0 | 0 | |
Assets, Settlements | 0 | 0 | 0 | |
Assets, Net transfer In (Out) of Level 3 | 6 | 6 | 0 | |
Balance at End of Period | 6 | 0 | 6 | 0 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | (1) | |
Available-for-sale embedded derivative | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 25 | 30 | 23 | 34 |
Assets, Total Gains (Losses) Included in Earnings | 0 | (6) | 0 | (10) |
Assets, Total Gains (Losses) Included in AOCI | 1 | 0 | 3 | 0 |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 26 | 24 | 26 | 24 |
Change in Unrealized Gains (Losses) Incl in OCI | 1 | 0 | 3 | 0 |
Investment in affiliate | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 107 | 21 | 23 | 21 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 |
Assets, Purchases | 90 | 0 | 174 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 197 | 21 | 197 | 21 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | 0 |
Credit linked note | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 13 | 19 | 15 | 23 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | (3) |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | (2) | (2) | (3) |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 13 | 17 | 13 | 17 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | 0 |
Secured borrowing receivable | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 10 | 0 | 10 | 0 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 |
Assets, Purchases | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 10 | 0 | 10 |
Balance at End of Period | 10 | 10 | 10 | 10 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | 0 |
Subtotal assets at Level 3 fair value | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 8,145 | 5,576 | ||
Assets, Total Gains (Losses) Included in Earnings | (3) | (5) | (11) | (9) |
Assets, Total Gains (Losses) Included in AOCI | 0 | (214) | 9 | (431) |
Assets, Purchases | 721 | 1,140 | 1,398 | 1,638 |
Assets, Sales | (15) | (39) | (98) | (39) |
Assets, Settlements | (165) | (134) | (415) | (313) |
Assets, Net transfer In (Out) of Level 3 | (21) | (18) | (412) | (222) |
Balance at End of Period | 8,616 | 6,200 | 8,616 | 6,200 |
Change in Unrealized Gains (Losses) Incl in OCI | (1) | (221) | 8 | (441) |
Subtotal assets at Level 3 fair value | Level 3 | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 8,099 | 5,470 | ||
Balance at End of Period | 8,616 | 6,200 | 8,616 | 6,200 |
Market risk benefits asset | Level 3 | ||||
Fixed maturity securities available-for-sale: | ||||
Balance at Beginning of Period | 106 | 29 | 117 | 41 |
Balance at End of Period | 118 | 86 | 118 | 86 |
Subtotal liabilities at Level 3 fair value | ||||
Liabilities: | ||||
Balance at Beginning of Period | 3,883 | |||
Liabilities, Total Gains (Losses) Included in Earnings | 197 | (575) | 582 | (1,159) |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 |
Liabilities, Purchases | 93 | 146 | 189 | 272 |
Liabilities, Sales | 0 | 0 | 0 | 0 |
Liabilities, Settlements | (38) | (25) | (65) | (55) |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 |
Balance at End of Period | 2,941 | 2,941 | ||
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 | 0 | 0 |
Subtotal liabilities at Level 3 fair value | Level 3 | ||||
Liabilities: | ||||
Balance at Beginning of Period | 3,569 | 3,395 | 3,115 | |
Balance at End of Period | 3,821 | 2,941 | 3,821 | 2,941 |
Market risk benefits liability | Level 3 | ||||
Liabilities: | ||||
Balance at Beginning of Period | 324 | 282 | 486 | |
Balance at End of Period | $ 313 | $ 292 | $ 313 | $ 292 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Investments in unconsolidated affiliates | $ 197 | $ 23 |
Total Estimated Fair Value | ||
ASSETS | ||
FHLB common stock | 106 | 99 |
Commercial mortgage loans | 2,144 | 2,083 |
Residential mortgage loans | 2,377 | 1,892 |
Investments in unconsolidated affiliates | 2,606 | 2,432 |
Policy loans | 59 | 52 |
Other invested assets | 10 | |
Company-owned life insurance | 352 | 328 |
Total | 7,644 | 6,896 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 37,228 | 34,464 |
Debt | 1,544 | 1,092 |
Total | 38,772 | 35,556 |
Carrying Amount | ||
ASSETS | ||
FHLB common stock | 106 | 99 |
Commercial mortgage loans | 2,457 | 2,406 |
Residential mortgage loans | 2,619 | 2,148 |
Investments in unconsolidated affiliates | 2,606 | 2,432 |
Policy loans | 59 | 52 |
Other invested assets | 10 | |
Company-owned life insurance | 352 | 328 |
Total | 8,199 | 7,475 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 41,249 | 38,412 |
Debt | 1,571 | 1,114 |
Total | 42,820 | 39,526 |
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 | 106 | 99 |
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 | 106 | 99 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 1,544 | 1,092 |
Total | 1,544 | 1,092 |
Level 3 | ||
ASSETS | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 2,144 | 2,083 |
Residential mortgage loans | 2,377 | 1,892 |
Investments in unconsolidated affiliates | 8 | 5 |
Policy loans | 59 | 52 |
Other invested assets | 10 | |
Company-owned life insurance | 352 | 328 |
Total | 4,940 | 4,370 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 37,228 | 34,464 |
Debt | 0 | 0 |
Total | 37,228 | 34,464 |
NAV | ||
ASSETS | ||
Investments in unconsolidated affiliates | 2,598 | 2,427 |
Total | $ 2,598 | $ 2,427 |
Investments - Consolidated Inve
Investments - Consolidated Investments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Available-for-sale securities | ||||||
Amortized Cost | $ 40,374 | $ 35,723 | ||||
Allowance for Expected Credit Losses | (32) | $ (16) | (31) | $ (5) | $ (6) | $ (8) |
Gross Unrealized Gains | 139 | 96 | ||||
Gross Unrealized Losses | (4,299) | (4,570) | ||||
Fair Value/Carrying Value | 36,182 | 31,218 | ||||
Asset-backed securities | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 13,492 | 12,209 | ||||
Allowance for Expected Credit Losses | (7) | (10) | (8) | (2) | (1) | (3) |
Gross Unrealized Gains | 65 | 36 | ||||
Gross Unrealized Losses | (710) | (770) | ||||
Fair Value/Carrying Value | 12,840 | 11,467 | ||||
Commercial mortgage-backed securities | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 4,307 | 3,309 | ||||
Allowance for Expected Credit Losses | (18) | 0 | (1) | 0 | (2) | (2) |
Gross Unrealized Gains | 5 | 12 | ||||
Gross Unrealized Losses | (345) | (284) | ||||
Fair Value/Carrying Value | 3,949 | 3,036 | ||||
Corporates | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 17,491 | 15,879 | ||||
Allowance for Expected Credit Losses | 0 | (15) | ||||
Gross Unrealized Gains | 43 | 30 | ||||
Gross Unrealized Losses | (2,768) | (2,995) | ||||
Fair Value/Carrying Value | 14,766 | 12,899 | ||||
Hybrids | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 747 | 781 | ||||
Allowance for Expected Credit Losses | 0 | 0 | ||||
Gross Unrealized Gains | 3 | 8 | ||||
Gross Unrealized Losses | (73) | (84) | ||||
Fair Value/Carrying Value | 677 | 705 | ||||
Municipals | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 1,792 | 1,695 | ||||
Allowance for Expected Credit Losses | 0 | 0 | ||||
Gross Unrealized Gains | 11 | 4 | ||||
Gross Unrealized Losses | (245) | (289) | ||||
Fair Value/Carrying Value | 1,558 | 1,410 | ||||
Residential mortgage-backed securities | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 2,121 | 1,631 | ||||
Allowance for Expected Credit Losses | (7) | $ (6) | (7) | $ (3) | $ (3) | $ (3) |
Gross Unrealized Gains | 11 | 6 | ||||
Gross Unrealized Losses | (114) | (109) | ||||
Fair Value/Carrying Value | 2,011 | 1,521 | ||||
U.S. Government | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 213 | 34 | ||||
Allowance for Expected Credit Losses | 0 | 0 | ||||
Gross Unrealized Gains | 1 | 0 | ||||
Gross Unrealized Losses | (3) | (2) | ||||
Fair Value/Carrying Value | 211 | 32 | ||||
Foreign Governments | ||||||
Available-for-sale securities | ||||||
Amortized Cost | 211 | 185 | ||||
Allowance for Expected Credit Losses | 0 | 0 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Losses | (41) | (37) | ||||
Fair Value/Carrying Value | $ 170 | $ 148 |
Investments - Narrative (Detail
Investments - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||||||
Assets held by insurance regulators | $ 19,862,000,000 | $ 19,862,000,000 | $ 17,751,000,000 | |||||
Non-income producing investment fair value | 35,000,000 | 35,000,000 | 27,000,000 | |||||
Accrued interest receivable | 415,000,000 | 415,000,000 | 358,000,000 | |||||
FHLB collateral pledged | 3,543,000,000 | 3,543,000,000 | 3,387,000,000 | |||||
PCD available for sale securities purchased | 0 | 0 | ||||||
Allowance for expected credit loss | 32,000,000 | $ 5,000,000 | 32,000,000 | $ 5,000,000 | 31,000,000 | $ 16,000,000 | $ 6,000,000 | $ 8,000,000 |
Allowance for credit loss for securities in an unrealized loss position | 0 | $ 0 | ||||||
DSC ratio, amortization period | 25 years | |||||||
Amortized cost of loans on non-accrual | 81,000,000 | $ 81,000,000 | $ 71,000,000 | |||||
Gross investment income | (587,000,000) | (472,000,000) | (1,167,000,000) | (968,000,000) | ||||
Reinsurance agreement, recognized gains (losses) | $ 21,000,000 | 151,000,000 | $ (1,000,000) | 279,000,000 | ||||
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 | Prepaid expenses and other assets | |||||
Commercial mortgage loans | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Loans delinquent in principal or interest payments | loan | 1 | 1 | 1 | |||||
Funds Withheld, Reinsurance Agreements | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Gross investment income | $ (76,000,000) | $ (20,000,000) | $ (134,000,000) | $ (38,000,000) | ||||
90 days or more past due | Mortgage loans | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Mortgage loans in process of foreclosure | 35,000,000 | $ 35,000,000 | $ 38,000,000 | |||||
United States | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Residential mortgage loans, location percentage | 100% | |||||||
Commercial mortgages | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Commercial mortgage loans, percentage of investments | 5% | 6% | ||||||
Amortized cost of loans on non-accrual | $ 9,000,000 | $ 9,000,000 | $ 9,000,000 | |||||
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 | |||||||
Residential mortgages | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Percentage of total investments | 6% | 6% | 6% | |||||
Amortized cost of loans on non-accrual | $ 72,000,000 | $ 72,000,000 | $ 62,000,000 | |||||
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 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Fixed Maturity by Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 227 | $ 124 |
Due after one year through five years, Amortized Cost | 3,116 | 2,193 |
Due after five years through ten years, Amortized Cost | 2,065 | 1,840 |
Due after ten years, Amortized Cost | 15,046 | 14,417 |
Subtotal | 20,454 | 18,574 |
Other securities which provide for periodic payments, Amortized Cost | 19,920 | 17,149 |
Amortized Cost | 40,374 | 35,723 |
Due in one year or less, Fair Value | 222 | 123 |
Due after one year through five years, Fair Value | 2,968 | 2,059 |
Due after five years through ten years, Fair Value | 1,862 | 1,633 |
Due after ten years, Fair Value | 12,330 | 11,379 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value, Total | 17,382 | 15,194 |
Other securities which provide for periodic payments, Fair Value | 18,800 | 16,024 |
Total fixed maturity available-for-sale securities | 36,182 | 31,218 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 13,492 | 12,209 |
Amortized Cost | 13,492 | 12,209 |
Other securities which provide for periodic payments, Fair Value | 12,840 | 11,467 |
Total fixed maturity available-for-sale securities | 12,840 | 11,467 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 4,307 | 3,309 |
Amortized Cost | 4,307 | 3,309 |
Other securities which provide for periodic payments, Fair Value | 3,949 | 3,036 |
Total fixed maturity available-for-sale securities | 3,949 | 3,036 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 2,121 | 1,631 |
Other securities which provide for periodic payments, Fair Value | $ 2,011 | $ 1,521 |
Investments - Activity in Allow
Investments - Activity in Allowance for Credit Loss Aggregated By Investment Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | $ (16) | $ (6) | $ (31) | $ (8) |
Additions | ||||
For credit losses on securities for which losses were not previously recorded | (20) | 0 | (27) | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | 0 | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 4 | (1) | 11 | (1) |
Reductions | ||||
For securities sold during the period | 0 | 2 | 15 | 4 |
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 | (32) | (5) | (32) | (5) |
Asset-backed securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | (10) | (1) | (8) | (3) |
Additions | ||||
For credit losses on securities for which losses were not previously recorded | 1 | 0 | (6) | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | 0 | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 2 | (1) | 7 | (1) |
Reductions | ||||
For securities sold during the period | 0 | 0 | 0 | 2 |
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 | (7) | (2) | (7) | (2) |
Commercial mortgage-backed securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | 0 | (2) | (1) | (2) |
Additions | ||||
For credit losses on securities for which losses were not previously recorded | (20) | 0 | (20) | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | 0 | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 2 | 0 | 3 | 0 |
Reductions | ||||
For securities sold during the period | 0 | 2 | 0 | 2 |
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 | (18) | 0 | (18) | 0 |
Corporates | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | (15) | |||
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) | 0 | |||
(Additions) reductions in allowance recorded on previously impaired securities | 0 | |||
Reductions | ||||
For securities sold during the period | 15 | |||
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 | ||
Residential mortgage-backed securities | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | (6) | (3) | (7) | (3) |
Additions | ||||
For credit losses on securities for which losses were not previously recorded | (1) | 0 | (1) | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | 0 | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 0 | 0 | 1 | 0 |
Reductions | ||||
For securities sold during the period | 0 | 0 | 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 | $ (7) | $ (3) | $ (7) | $ (3) |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) $ in Millions | Jun. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 12,233 | $ 20,533 |
Gross Unrealized Losses Less than 12 months | (683) | (2,600) |
Fair Value, 12 Months or longer | 18,776 | 8,007 |
Gross Unrealized Losses, 12 months or longer | (3,600) | (1,930) |
Total Fair Value | 31,009 | 28,540 |
Total Gross Unrealized Losses | $ (4,283) | $ (4,530) |
Total number of AFS securities in an unrealized loss position less than twelve months | security | 1,938 | 2,774,000,000 |
Total number of AFS securities in an unrealized loss position twelve months or longer | security | 2,531 | 1,212,000,000 |
Total number of AFS securities in an unrealized loss position | security | 4,469 | 3,986,000,000 |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 4,219 | $ 7,001 |
Gross Unrealized Losses Less than 12 months | (182) | (410) |
Fair Value, 12 Months or longer | 6,220 | 3,727 |
Gross Unrealized Losses, 12 months or longer | (517) | (360) |
Total Fair Value | 10,439 | 10,728 |
Total Gross Unrealized Losses | (699) | (770) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 1,555 | 2,065 |
Gross Unrealized Losses Less than 12 months | (102) | (168) |
Fair Value, 12 Months or longer | 1,663 | 475 |
Gross Unrealized Losses, 12 months or longer | (242) | (116) |
Total Fair Value | 3,218 | 2,540 |
Total Gross Unrealized Losses | (344) | (284) |
Corporates | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 4,598 | 8,780 |
Gross Unrealized Losses Less than 12 months | (294) | (1,679) |
Fair Value, 12 Months or longer | 8,884 | 3,231 |
Gross Unrealized Losses, 12 months or longer | (2,474) | (1,312) |
Total Fair Value | 13,482 | 12,011 |
Total Gross Unrealized Losses | (2,768) | (2,991) |
Hybrids | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 194 | 619 |
Gross Unrealized Losses Less than 12 months | (15) | (83) |
Fair Value, 12 Months or longer | 457 | 3 |
Gross Unrealized Losses, 12 months or longer | (58) | (1) |
Total Fair Value | 651 | 622 |
Total Gross Unrealized Losses | (73) | (84) |
Municipals | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 550 | 948 |
Gross Unrealized Losses Less than 12 months | (68) | (176) |
Fair Value, 12 Months or longer | 793 | 352 |
Gross Unrealized Losses, 12 months or longer | (177) | (113) |
Total Fair Value | 1,343 | 1,300 |
Total Gross Unrealized Losses | (245) | (289) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 1,031 | 990 |
Gross Unrealized Losses Less than 12 months | (17) | (51) |
Fair Value, 12 Months or longer | 619 | 184 |
Gross Unrealized Losses, 12 months or longer | (93) | (22) |
Total Fair Value | 1,650 | 1,174 |
Total Gross Unrealized Losses | (110) | (73) |
U.S. Government | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 61 | 11 |
Gross Unrealized Losses Less than 12 months | (2) | (1) |
Fair Value, 12 Months or longer | 4 | 21 |
Gross Unrealized Losses, 12 months or longer | (1) | (1) |
Total Fair Value | 65 | 32 |
Total Gross Unrealized Losses | (3) | (2) |
Foreign Governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 25 | 119 |
Gross Unrealized Losses Less than 12 months | (3) | (32) |
Fair Value, 12 Months or longer | 136 | 14 |
Gross Unrealized Losses, 12 months or longer | (38) | (5) |
Total Fair Value | 161 | 133 |
Total Gross Unrealized Losses | $ (41) | $ (37) |
Investments - Distribution of C
Investments - Distribution of Commercial Mortgage Loan, Gross of Valuation Allowances, By Property Type and Region (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||||||
Allowance for expected credit loss | $ (64) | $ (60) | $ (42) | $ (35) | $ (32) | $ (31) |
Loans, net | 5,076 | 4,554 | ||||
Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | 2,470 | 2,416 | ||||
Allowance for expected credit loss | (13) | $ (12) | (10) | $ (6) | $ (6) | $ (6) |
Loans, net | $ 2,457 | $ 2,406 | ||||
% of Total | 100% | 100% | ||||
East North Central | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 150 | $ 151 | ||||
% of Total | 6% | 6% | ||||
East South Central | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 76 | $ 76 | ||||
% of Total | 3% | 3% | ||||
Middle Atlantic | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 325 | $ 326 | ||||
% of Total | 13% | 13% | ||||
Mountain | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 353 | $ 355 | ||||
% of Total | 14% | 15% | ||||
New England | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 166 | $ 158 | ||||
% of Total | 7% | 7% | ||||
Pacific | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 726 | $ 708 | ||||
% of Total | 29% | 28% | ||||
South Atlantic | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 553 | $ 521 | ||||
% of Total | 22% | 22% | ||||
West North Central | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 4 | $ 4 | ||||
% of Total | 1% | 1% | ||||
West South Central | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 117 | $ 117 | ||||
% of Total | 5% | 5% | ||||
Hotel | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 18 | $ 18 | ||||
% of Total | 1% | 1% | ||||
Industrial | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 538 | $ 520 | ||||
% of Total | 22% | 22% | ||||
Mixed Use | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 12 | $ 12 | ||||
% of Total | 1% | 1% | ||||
Multifamily | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 1,012 | $ 1,013 | ||||
% of Total | 41% | 42% | ||||
Office | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 328 | $ 330 | ||||
% of Total | 13% | 14% | ||||
Retail | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 103 | $ 105 | ||||
% of Total | 4% | 4% | ||||
Student Housing | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 83 | $ 83 | ||||
% of Total | 3% | 3% | ||||
Other | Commercial mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 376 | $ 335 | ||||
% of Total | 15% | 13% |
Investments - Commercial Mortga
Investments - Commercial Mortgage Loans Segregated By Risk (Details) - Commercial mortgages - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | $ 55 | $ 341 |
2022 | 338 | 1,300 |
2021 | 1,299 | 488 |
2020 | 487 | 0 |
2019 | 0 | 0 |
Prior | 274 | 278 |
Total | 2,453 | 2,407 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 350 | |
2021 | 1,300 | |
2020 | 488 | |
2019 | 0 | |
2018 | 0 | |
Prior | 278 | |
Total | 2,470 | 2,416 |
Loans under development, amortized cost | 17 | 9 |
Loans under development, fair value | 17 | 9 |
Current (less than 30 days past due) | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 55 | |
2022 | 338 | |
2021 | 1,299 | |
2020 | 487 | |
2019 | 0 | |
Prior | 265 | |
Total | 2,444 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 350 | |
2021 | 1,300 | |
2020 | 488 | |
2019 | 0 | |
2018 | 0 | |
Prior | 269 | |
Total | 2,407 | |
30-89 days past due | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Total | 0 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Total | 0 | |
90 days or more past due | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 9 | |
Total | $ 9 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 9 | |
Total | $ 9 |
Investments - Schedule of Inves
Investments - Schedule of Investment in CMLs by Loan to Value and Debt Service Coverage Ratios (Details) - Commercial mortgages - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Loans | $ 2,453 | $ 2,407 |
% of Total | 100% | 100% |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | $ 55 | $ 341 |
2022 | 338 | 1,300 |
2021 | 1,299 | 488 |
2020 | 487 | 0 |
2019 | 0 | 0 |
Prior | 274 | 278 |
Total | 2,453 | 2,407 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 55 | 341 |
2021 | 338 | 1,300 |
2020 | 1,299 | 488 |
2019 | 487 | 0 |
2018 | 0 | 0 |
Prior | 274 | 278 |
Total | 2,453 | 2,407 |
Loans under development, amortized cost | 17 | 9 |
Loans under development, fair value | 17 | 9 |
Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans | $ 2,127 | $ 2,074 |
% of Total | 100% | 100% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 2,127 | $ 2,074 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 2,127 | 2,074 |
Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loans | $ 525 | $ 526 |
% of Total | 21% | 22% |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | $ 6 | $ 70 |
2022 | 67 | 120 |
2021 | 119 | 207 |
2020 | 207 | 0 |
2019 | 0 | 0 |
Prior | 126 | 129 |
Total | 525 | 526 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 6 | 70 |
2021 | 67 | 120 |
2020 | 119 | 207 |
2019 | 207 | 0 |
2018 | 0 | 0 |
Prior | 126 | 129 |
Total | 525 | 526 |
Less than 50.00% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans | $ 491 | $ 490 |
% of Total | 23% | 24% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 491 | $ 490 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 491 | 490 |
50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loans | $ 740 | $ 706 |
% of Total | 30% | 29% |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | $ 27 | $ 149 |
2022 | 149 | 268 |
2021 | 267 | 158 |
2020 | 158 | 0 |
2019 | 0 | 0 |
Prior | 139 | 131 |
Total | 740 | 706 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 27 | 149 |
2021 | 149 | 268 |
2020 | 267 | 158 |
2019 | 158 | 0 |
2018 | 0 | 0 |
Prior | 139 | 131 |
Total | 740 | 706 |
50.00% to 59.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans | $ 649 | $ 615 |
% of Total | 30% | 30% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 649 | $ 615 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 649 | 615 |
60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loans | $ 1,170 | $ 1,157 |
% of Total | 48% | 48% |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | $ 22 | $ 113 |
2022 | 113 | 912 |
2021 | 913 | 123 |
2020 | 122 | 0 |
2019 | 0 | 0 |
Prior | 0 | 9 |
Total | 1,170 | 1,157 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 22 | 113 |
2021 | 113 | 912 |
2020 | 913 | 123 |
2019 | 122 | 0 |
2018 | 0 | 0 |
Prior | 0 | 9 |
Total | 1,170 | 1,157 |
60.00% to 74.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans | $ 973 | $ 955 |
% of Total | 46% | 45% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 973 | $ 955 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 973 | 955 |
75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loans | $ 18 | $ 18 |
% of Total | 1% | 1% |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | $ 0 | $ 9 |
2022 | 9 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 9 | 9 |
Total | 18 | 18 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | 9 |
2021 | 9 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 9 | 9 |
Total | 18 | 18 |
75.00% to 84.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans | $ 14 | $ 14 |
% of Total | 1% | 1% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 14 | $ 14 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 14 | 14 |
Greater than 1.25 | ||
Schedule of Investments [Line Items] | ||
Loans | 2,410 | 2,371 |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 48 | 329 |
2022 | 326 | 1,300 |
2021 | 1,299 | 488 |
2020 | 487 | 0 |
2019 | 0 | 0 |
Prior | 250 | 254 |
Total | 2,410 | 2,371 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 48 | 329 |
2021 | 326 | 1,300 |
2020 | 1,299 | 488 |
2019 | 487 | 0 |
2018 | 0 | 0 |
Prior | 250 | 254 |
Total | 2,410 | 2,371 |
Greater than 1.25 | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loans | 510 | 511 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 510 | 511 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 510 | 511 |
Greater than 1.25 | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 740 | 706 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 740 | 706 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 740 | 706 |
Greater than 1.25 | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 1,160 | 1,154 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 1,160 | 1,154 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 1,160 | 1,154 |
Greater than 1.25 | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Greater than 1.00 but less than 1.25 | ||
Schedule of Investments [Line Items] | ||
Loans | 14 | 7 |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 7 | 3 |
2022 | 3 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 4 | 4 |
Total | 14 | 7 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 7 | 3 |
2021 | 3 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 4 | 4 |
Total | 14 | 7 |
Greater than 1.00 but less than 1.25 | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loans | 4 | 4 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 4 | 4 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 4 | 4 |
Greater than 1.00 but less than 1.25 | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Greater than 1.00 but less than 1.25 | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 10 | 3 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 10 | 3 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 10 | 3 |
Greater than 1.00 but less than 1.25 | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Less than 1.00 | ||
Schedule of Investments [Line Items] | ||
Loans | 29 | 29 |
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 0 | 9 |
2022 | 9 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 20 | 20 |
Total | 29 | 29 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | 9 |
2021 | 9 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 20 | 20 |
Total | 29 | 29 |
Less than 1.00 | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loans | 11 | 11 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 11 | 11 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 11 | 11 |
Less than 1.00 | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Less than 1.00 | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Less than 1.00 | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 18 | 18 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 18 | 18 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | $ 18 | $ 18 |
Investments - Distribution of R
Investments - Distribution of Residential Mortgage Loans by State (Details) - Residential mortgages - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Loans | $ 2,670 | $ 2,180 |
% of Total | 100% | 100% |
Florida | ||
Schedule of Investments [Line Items] | ||
Loans | $ 152 | $ 324 |
% of Total | 5% | 15% |
Texas | ||
Schedule of Investments [Line Items] | ||
Loans | $ 215 | |
% of Total | 10% | |
New Jersey | ||
Schedule of Investments [Line Items] | ||
Loans | $ 172 | |
% of Total | 8% | |
Pennsylvania | ||
Schedule of Investments [Line Items] | ||
Loans | $ 153 | |
% of Total | 7% | |
California | ||
Schedule of Investments [Line Items] | ||
Loans | $ 123 | $ 139 |
% of Total | 5% | 6% |
New York | ||
Schedule of Investments [Line Items] | ||
Loans | $ 131 | $ 138 |
% of Total | 5% | 6% |
Georgia | ||
Schedule of Investments [Line Items] | ||
Loans | $ 125 | |
% of Total | 6% | |
All other states | ||
Schedule of Investments [Line Items] | ||
Loans | $ 2,264 | $ 914 |
% of Total | 85% | 42% |
Investments - Schedule of Resid
Investments - Schedule of Residential Mortgage Loans with Credit Quality Indicators, Performing or Nonperforming (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||||||
Allowance for expected credit loss | $ (64) | $ (60) | $ (42) | $ (35) | $ (32) | $ (31) |
Mortgage loans, net of valuation | 5,076 | 4,554 | ||||
Residential mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 2,670 | $ 2,180 | ||||
% of Total | 100% | 100% | ||||
Allowance for expected credit loss | $ (51) | $ (48) | $ (32) | $ (29) | $ (26) | $ (25) |
Allowance for expected credit loss, percent | 0% | 0% | ||||
Mortgage loans, net of valuation | $ 2,619 | $ 2,148 | ||||
Total residential mortgage loans, net of valuation allowance, % of Total | 100% | 100% | ||||
Performing Financial Instruments | Residential mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 2,598 | $ 2,118 | ||||
% of Total | 97% | 97% | ||||
Nonperforming Financial Instruments | Residential mortgages | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized Cost | $ 72 | $ 62 | ||||
% of Total | 3% | 3% |
Investments - Schedule of Res_2
Investments - Schedule of Residential Loans Segregated by Risk Rating Exposure and Non-accrual Loans by Amortized Cost (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | $ 81 | $ 71 |
Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 137 | 771 |
2022 | 976 | 900 |
2021 | 906 | 229 |
2020 | 220 | 223 |
2019 | 225 | 24 |
Prior | 206 | 33 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 137 | 771 |
2021 | 976 | 900 |
2020 | 906 | 229 |
2019 | 220 | 223 |
2018 | 225 | 24 |
Prior | 206 | 33 |
Total | 2,670 | 2,180 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | 72 | 62 |
Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 350 | |
2022 | 1,300 | |
2021 | 488 | |
2020 | 0 | |
2019 | 0 | |
Prior | 278 | |
Loans | 2,453 | 2,407 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 350 | |
2021 | 1,300 | |
2020 | 488 | |
2019 | 0 | |
2018 | 0 | |
Prior | 278 | |
Total | 2,470 | 2,416 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | 9 | 9 |
Current (less than 30 days past due) | Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 137 | 766 |
2022 | 963 | 884 |
2021 | 862 | 214 |
2020 | 200 | 185 |
2019 | 192 | 23 |
Prior | 199 | 33 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 137 | 766 |
2021 | 963 | 884 |
2020 | 862 | 214 |
2019 | 200 | 185 |
2018 | 192 | 23 |
Prior | 199 | 33 |
Total | 2,553 | 2,105 |
Current (less than 30 days past due) | Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 350 | |
2022 | 1,300 | |
2021 | 488 | |
2020 | 0 | |
2019 | 0 | |
Prior | 269 | |
Loans | 2,444 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 350 | |
2021 | 1,300 | |
2020 | 488 | |
2019 | 0 | |
2018 | 0 | |
Prior | 269 | |
Total | 2,407 | |
30-89 days past due | Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 0 | 2 |
2022 | 6 | 7 |
2021 | 24 | 0 |
2020 | 5 | 4 |
2019 | 4 | 0 |
Prior | 6 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | 2 |
2021 | 6 | 7 |
2020 | 24 | 0 |
2019 | 5 | 4 |
2018 | 4 | 0 |
Prior | 6 | 0 |
Total | 45 | 13 |
30-89 days past due | Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Loans | 0 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Total | 0 | |
90 days or more past due | Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 0 | 3 |
2022 | 7 | 9 |
2021 | 20 | 15 |
2020 | 15 | 34 |
2019 | 29 | 1 |
Prior | 1 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | 3 |
2021 | 7 | 9 |
2020 | 20 | 15 |
2019 | 15 | 34 |
2018 | 29 | 1 |
Prior | 1 | 0 |
Total | 72 | 62 |
90 days or more past due | Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 9 | |
Loans | $ 9 | |
Credit Quality Indicator Prior Year [Abstract] | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 9 | |
Total | $ 9 |
Investments - Changes in Allowa
Investments - Changes in Allowance for Expected Credit Losses on Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 60 | $ 32 | $ 42 | $ 31 |
Provision for loan losses | (4) | (3) | (22) | (4) |
Ending Balance | 64 | 35 | 64 | 35 |
Residential mortgages | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 48 | 26 | 32 | 25 |
Provision for loan losses | (3) | (3) | (19) | (4) |
Ending Balance | 51 | 29 | 51 | 29 |
Commercial mortgages | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 12 | 6 | 10 | 6 |
Provision for loan losses | (1) | 0 | (3) | 0 |
Ending Balance | $ 13 | $ 6 | $ 13 | $ 6 |
Investments - Schedule of Sourc
Investments - Schedule of Sources of Net Investment Income Reported (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Investments [Line Items] | ||||
Gross investment income | $ 587 | $ 472 | $ 1,167 | $ 968 |
Investment expense | (62) | (47) | (123) | (92) |
Interest and investment income | 525 | 425 | 1,044 | 876 |
Fixed maturity securities, available-for-sale | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 448 | 336 | 880 | 655 |
Equity securities | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 4 | 4 | 9 | 8 |
Preferred securities | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 12 | 15 | 22 | 26 |
Mortgage loans | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 57 | 49 | 108 | 88 |
Invested cash and short-term investments | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 17 | 9 | 33 | 13 |
Limited partnerships | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | 44 | 58 | 101 | 171 |
Other investments | ||||
Schedule of Investments [Line Items] | ||||
Gross investment income | $ 5 | $ 1 | $ 14 | $ 7 |
Investments - Realized Gain (Lo
Investments - Realized Gain (Loss) on Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Investments [Line Items] | ||||
Net realized (losses) gains on fixed maturity available-for-sale securities | $ (52) | $ (59) | $ (96) | $ (93) |
Realized (losses) gains on other invested assets | 15 | 0 | 15 | (4) |
Change in allowance for expected credit losses | (21) | (6) | (29) | (7) |
Realized (losses) gains on certain derivative instruments | (65) | (35) | (154) | 15 |
Unrealized (losses) gains on certain derivative instruments | 164 | (359) | 311 | (717) |
Embedded derivative adjustments | 1 | (5) | 3 | (8) |
Realized (losses) gains on derivatives and embedded derivatives | 117 | (258) | 158 | (447) |
Recognized gains and (losses), net | 67 | (426) | 52 | (723) |
Reinsurance related embedded derivatives | ||||
Schedule of Investments [Line Items] | ||||
Change in fair value of derivatives | 17 | 141 | (2) | 263 |
Equity securities | ||||
Schedule of Investments [Line Items] | ||||
Net realized/unrealized (losses) gains | 3 | (20) | 8 | (22) |
Equity securities, FV-NI, valuation gain (loss) | 3 | (20) | 8 | (22) |
Preferred securities | ||||
Schedule of Investments [Line Items] | ||||
Net realized/unrealized (losses) gains | 5 | (83) | (4) | (150) |
Equity securities, FV-NI, valuation gain (loss) | $ 19 | $ (83) | $ 44 | $ (149) |
Investments - Proceeds from Sal
Investments - Proceeds from Sale of Fixed Maturity AFS Securities (Details) - Total fixed maturity securities, available-for-sale - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Investments [Line Items] | ||||
Proceeds | $ (608) | $ (783) | $ (1,053) | $ (1,795) |
Gross gains | 2 | 1 | 5 | 4 |
Gross losses | $ (30) | $ (59) | $ (79) | $ (94) |
Investments - Schedule of Carry
Investments - Schedule of Carrying Value and Maximum Loss Exposure Unconsolidated VIEs (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Carrying Value | $ 21,274 | $ 18,107 |
Maximum Loss Exposure | 25,344 | 21,434 |
Investment in unconsolidated affiliates | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 2,803 | 2,427 |
Maximum Loss Exposure | 4,491 | 4,030 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 18,471 | 15,680 |
Maximum Loss Exposure | $ 20,853 | $ 17,404 |
Investments - Schedules of Inve
Investments - Schedules of Investment Concentrations (Details) - Stockholders' Equity, Total - Investment Risk Concentration - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Blackstone Wave Asset Holdco | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | $ 738 | $ 741 |
ELBA | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 463 | 470 |
COLI | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 316 | 308 |
Verus Securitization Trust | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 297 | 302 |
Jade 1 | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 279 | 271 |
Jade 2 | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 279 | 271 |
Jade 3 | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 279 | 271 |
Jade 4 | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | $ 279 | $ 271 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Carrying Amounts of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 951 | $ 546 |
Total liability derivatives | 3,821 | 3,115 |
Derivative investments | Call options | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | 648 | 244 |
Other long-term investments | Embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | 26 | 23 |
Prepaid expenses and other assets | Embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | 277 | 279 |
Contractholder funds | FIA/ IUL embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total liability derivatives | $ 3,821 | $ 3,115 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative [Line Items] | ||||
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] | ||||
Change in fair value of derivatives | $ 98 | $ (395) | $ 153 | $ (709) |
Futures contracts | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | 0 | (8) | 5 | (5) |
Foreign currency forwards | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | 0 | 9 | (1) | 12 |
Embedded derivatives | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | 2 | (5) | 3 | (8) |
Reinsurance related embedded derivatives | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | 17 | 141 | (2) | 263 |
Total net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | 117 | (258) | 158 | (447) |
FIA/ IUL embedded derivatives (decrease) increase | ||||
Derivative [Line Items] | ||||
Change in fair value of derivatives | $ 252 | $ (454) | $ 706 | $ (942) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) contract | Dec. 31, 2022 USD ($) 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 | $ 579 | $ 219 |
Net credit risk | 81 | 33 |
Call options | Derivatives For Trading And Investment | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral | 579 | 219 |
Net credit risk | 81 | 33 |
Call options | Cash and Cash Equivalents | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral | $ 459 | $ 178 |
Futures contracts | ||
Derivative [Line Items] | ||
Number of instruments held | contract | 409,000,000 | 409,000,000 |
Collateral held | $ 4 | $ 3 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Information Regarding Exposure to Credit Loss on Call Options Held (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 951 | $ 546 |
Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 25,372 | 23,297 |
Fair Value | 648 | 244 |
Collateral | 579 | 219 |
Net Credit Risk | 81 | 33 |
Merrill Lynch | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,033 | 3,563 |
Fair Value | 69 | 23 |
Collateral | 26 | 0 |
Net Credit Risk | 43 | 23 |
Morgan Stanley | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,375 | 1,699 |
Fair Value | 50 | 14 |
Collateral | 60 | 19 |
Net Credit Risk | 0 | 0 |
Barclay's Bank | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,137 | 6,049 |
Fair Value | 121 | 65 |
Collateral | 113 | 59 |
Net Credit Risk | 8 | 6 |
Canadian Imperial Bank of Commerce | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,542 | 5,169 |
Fair Value | 204 | 68 |
Collateral | 180 | 64 |
Net Credit Risk | 24 | 4 |
Wells Fargo | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,480 | 1,361 |
Fair Value | 54 | 17 |
Collateral | 53 | 17 |
Net Credit Risk | 1 | 0 |
Goldman Sachs | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,212 | 1,133 |
Fair Value | 23 | 9 |
Collateral | 22 | 10 |
Net Credit Risk | 1 | 0 |
Credit Suisse | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 266 | 1,039 |
Fair Value | 9 | 5 |
Collateral | 9 | 5 |
Net Credit Risk | 0 | 0 |
Truist | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,055 | 2,489 |
Fair Value | 89 | 35 |
Collateral | 85 | 36 |
Net Credit Risk | 4 | 0 |
Citibank | Call options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,272 | 795 |
Fair Value | 29 | 8 |
Collateral | 31 | 9 |
Net Credit Risk | $ 0 | $ 0 |
Reinsurance - Effect Of Reinsur
Reinsurance - Effect Of Reinsurance On Premiums Earned And Benefits Incurred And Reserve Changes Table (Details) - Life Insurance Product Line - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Premiums Earned | ||||
Direct | $ 510 | $ 39 | $ 811 | $ 606 |
Ceded | (27) | (35) | (53) | (67) |
Net | 483 | 4 | 758 | 539 |
Net Benefits Incurred | ||||
Direct | 862 | 204 | 1,734 | 709 |
Ceded | (45) | (581) | (105) | (883) |
Net | $ 817 | $ (377) | $ 1,629 | $ (174) |
Reinsurance - Allowance for Cre
Reinsurance - Allowance for Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | $ (9) | $ (20) | $ (10) | $ (20) |
Changes in the expected credit loss reserve | 0 | 1 | 1 | 1 |
Balance at End of Period | $ (9) | $ (19) | $ (9) | $ (19) |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Sep. 01, 2022 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) policy | Dec. 31, 2022 USD ($) | |
Effects of Reinsurance [Line Items] | ||||
Number of policies reinsured by foreign company not engaged in insurance | policy | 0 | |||
Net amount recoverable | $ 7,076 | $ 5,417 | ||
Aspida Re | ||||
Effects of Reinsurance [Line Items] | ||||
Monthly cession capped amount | $ 350 | $ 450 | ||
Aspida Re | AM Best, A- Rating | ||||
Effects of Reinsurance [Line Items] | ||||
Net amount recoverable | 4,857 | |||
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% | |||
Wilton Reassurance Company | AM Best, A+ Rating | Fitch, A Rating | ||||
Effects of Reinsurance [Line Items] | ||||
Net amount recoverable | 1,157 | |||
Somerset | AM Best, A- Rating | Standard & Poor's, BBB+ Rating | ||||
Effects of Reinsurance [Line Items] | ||||
Net amount recoverable | $ 543 |
Intangibles - Reconciliation of
Intangibles - Reconciliation of Other Intangibles to Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | $ 1,529 | $ 1,615 | $ 1,704 | $ 1,743 |
DAC | 1,856 | 1,411 | ||
DSI | 258 | 200 | $ 159 | $ 127 |
Total Other intangible assets, net | 3,851 | 3,429 | ||
Indefinite lived tradenames and other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite lived tradenames and other | 8 | 8 | ||
Value of distribution asset | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 93 | 100 | ||
Computer software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 70 | 61 | ||
Definite lived trademarks, tradenames, and other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | $ 37 | $ 34 |
Intangibles - VOBA (Details)
Intangibles - VOBA (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
VOBA | ||
VOBA at beginning of period | $ 1,615 | $ 1,743 |
Amortization | (86) | (91) |
Shadow Premium Deficiency Testing (“PDT”) | 52 | |
VOBA at end of period | 1,529 | 1,704 |
FIA | ||
VOBA | ||
VOBA at beginning of period | 1,166 | 1,314 |
Amortization | (71) | (76) |
Shadow Premium Deficiency Testing (“PDT”) | 0 | |
VOBA at end of period | 1,095 | 1,238 |
Fixed Rate Annuities | ||
VOBA | ||
VOBA at beginning of period | 32 | 39 |
Amortization | (3) | (3) |
Shadow Premium Deficiency Testing (“PDT”) | 0 | |
VOBA at end of period | 29 | 36 |
Immediate Annuities | ||
VOBA | ||
VOBA at beginning of period | 201 | 212 |
Amortization | (6) | (6) |
Shadow Premium Deficiency Testing (“PDT”) | 0 | |
VOBA at end of period | 195 | 206 |
Universal Life | ||
VOBA | ||
VOBA at beginning of period | 143 | 153 |
Amortization | (4) | (5) |
Shadow Premium Deficiency Testing (“PDT”) | 0 | |
VOBA at end of period | 139 | 148 |
Traditional Life | ||
VOBA | ||
VOBA at beginning of period | 73 | 25 |
Amortization | (2) | (1) |
Shadow Premium Deficiency Testing (“PDT”) | 52 | |
VOBA at end of period | $ 71 | $ 76 |
Intangibles - Reconciliation _2
Intangibles - Reconciliation of VOB DAC and DSI to the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | $ 1,529 | $ 1,615 | $ 1,704 | $ 1,743 |
DAC | 1,856 | 1,411 | ||
DSI | 258 | 200 | 159 | 127 |
FIA | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | 1,095 | 1,166 | 1,238 | 1,314 |
DAC | 1,173 | 971 | ||
DSI | 258 | 200 | 159 | 127 |
Fixed Rate Annuities | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | 29 | 32 | 36 | 39 |
DAC | 233 | 83 | ||
Immediate Annuities | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | 195 | 201 | 206 | 212 |
Universal Life | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | 139 | 143 | 148 | 153 |
DAC | 441 | 348 | ||
Traditional Life | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | 71 | 73 | $ 76 | $ 25 |
Funding Agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
DAC | $ 9 | $ 9 |
Intangibles - DAC (Details)
Intangibles - DAC (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
DAC | ||
DAC at beginning of period | $ 1,402 | $ 775 |
Capitalization | 449 | 332 |
Amortization | (83) | (42) |
Reinsurance related adjustments | 79 | |
DAC at end of period | 1,847 | 1,065 |
FIA | ||
DAC | ||
DAC at beginning of period | 971 | 564 |
Capitalization | 249 | 216 |
Amortization | (47) | (29) |
Reinsurance related adjustments | 0 | |
DAC at end of period | 1,173 | 751 |
Fixed Rate Annuities | ||
DAC | ||
DAC at beginning of period | 83 | 38 |
Capitalization | 91 | 25 |
Amortization | (20) | (4) |
Reinsurance related adjustments | 79 | |
DAC at end of period | 233 | 59 |
Universal Life | ||
DAC | ||
DAC at beginning of period | 348 | 173 |
Capitalization | 109 | 91 |
Amortization | (16) | (9) |
Reinsurance related adjustments | 0 | |
DAC at end of period | $ 441 | $ 255 |
Intangibles - DSI (Details)
Intangibles - DSI (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Movement in Deferred Sales Inducements [Roll Forward] | ||
DSI at beginning of period | $ 200 | $ 127 |
Capitalization | 68 | 38 |
Amortization | (10) | (6) |
DSI at end of period | 258 | 159 |
FIA | ||
Movement in Deferred Sales Inducements [Roll Forward] | ||
DSI at beginning of period | 200 | 127 |
Capitalization | 68 | 38 |
Amortization | (10) | (6) |
DSI at end of period | $ 258 | $ 159 |
Intangibles - Estimated Amortiz
Intangibles - Estimated Amortization Expense for VOBA in Future Fiscal Periods (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 80 |
2024 | 151 |
2025 | 139 |
2026 | 128 |
2027 | 117 |
Thereafter | $ 914 |
Market Risk Benefits - Balances
Market Risk Benefits - Balances and Changes in Market Risk Benefit (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Market Risk Benefit [Line Items] | |||
Balance beginning of period | $ 165 | $ 428 | |
Balance, end of period | 195 | 165 | $ 428 |
Previously Reported | |||
Market Risk Benefit [Line Items] | |||
Balance beginning of period | 531 | ||
FIA | |||
Market Risk Benefit [Line Items] | |||
Balance beginning of period | 164 | 426 | 478 |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 102 | 280 | 320 |
Issuances and benefit payments | (8) | (21) | (9) |
Attributed fees collected and interest accrual | 68 | 107 | 99 |
Actual policyholder behavior different from expected | 11 | 43 | (22) |
Changes in assumptions and other | 1 | (76) | 0 |
Effects of market related movements | (38) | (231) | (108) |
Balance, end of period, before effect of changes in the instrument-specific credit risk | 102 | 280 | |
Change in instrument-specific credit risk - market risk benefits | 58 | 62 | 146 |
Balance, end of period | $ 194 | $ 164 | $ 426 |
Weighted-average attained age of policyholders weighted by total AV (years) | 68 years 4 months 28 days | 68 years 7 months 2 days | 68 years 11 months 12 days |
Net amount at risk | $ 1,006 | $ 952 | $ 1,304 |
FIA | Previously Reported | |||
Market Risk Benefit [Line Items] | |||
Balance beginning of period | 531 | ||
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 102 | 280 | |
Balance, end of period, before effect of changes in the instrument-specific credit risk | 136 | 102 | 280 |
Fixed Rate Annuities | |||
Market Risk Benefit [Line Items] | |||
Balance beginning of period | 1 | 2 | 1 |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 1 | 1 | 1 |
Issuances and benefit payments | 0 | 0 | 0 |
Attributed fees collected and interest accrual | 0 | 1 | 1 |
Actual policyholder behavior different from expected | 0 | 0 | 0 |
Changes in assumptions and other | 0 | 0 | 0 |
Effects of market related movements | 0 | (1) | (1) |
Balance, end of period, before effect of changes in the instrument-specific credit risk | 1 | 1 | |
Change in instrument-specific credit risk - market risk benefits | 0 | 0 | 1 |
Balance, end of period | $ 1 | $ 1 | $ 2 |
Weighted-average attained age of policyholders weighted by total AV (years) | 72 years 8 months 1 day | 72 years 10 months 17 days | 73 years 1 month 6 days |
Net amount at risk | $ 3 | $ 3 | $ 4 |
Fixed Rate Annuities | Previously Reported | |||
Market Risk Benefit [Line Items] | |||
Balance beginning of period | 0 | ||
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 1 | 1 | |
Balance, end of period, before effect of changes in the instrument-specific credit risk | $ 1 | $ 1 | $ 1 |
Market Risk Benefits - Reconcil
Market Risk Benefits - Reconciliation of Asset and Liability (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Market Risk Benefit [Line Items] | ||||
Market risk benefits asset | $ 118 | $ 117 | $ 41 | |
Market risk benefits liability | 313 | 282 | 469 | |
Net | 195 | 165 | 428 | |
FIA | ||||
Market Risk Benefit [Line Items] | ||||
Market risk benefits asset | 118 | 117 | 41 | |
Market risk benefits liability | 312 | 281 | 467 | |
Net | 194 | 164 | 426 | $ 478 |
Fixed Rate Annuities | ||||
Market Risk Benefit [Line Items] | ||||
Market risk benefits asset | 0 | 0 | 0 | |
Market risk benefits liability | 1 | 1 | 2 | |
Net | $ 1 | $ 1 | $ 2 | $ 1 |
Income Taxes - Additional (Deta
Income Taxes - Additional (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 20% | 20% | (63.00%) | 25% | |
Deferred tax assets, valuation allowance | $ 69 | $ 69 | $ 30 | ||
Deferred tax assets | $ 615 | 615 | $ 630 | ||
Valuation allowance, increase | $ 39 |
Income Taxes - Adoption of ASU
Income Taxes - Adoption of ASU 2018-12 (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Cumulative Effect, Period of Adoption, Adjustment | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred tax assets, net | $ 163 |
Contractholder Funds - Summary
Contractholder Funds - Summary of Balances and Changes in Contractholder Funds (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | $ 40,843 | |||||
Balance, end of year | $ 45,070 | 45,070 | $ 40,843 | |||
Embedded derivative adjustments | 1 | $ (5) | 3 | $ (8) | ||
Gross Liability, end of period | 45,070 | 45,070 | 40,843 | $ 34,753 | ||
Reinsurance recoverable, net of allowance for credit losses of $9 and $10 at June 30, 2023 and December 31, 2022, respectively | (7,076) | (7,076) | (5,417) | |||
FIA | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | 24,766 | 21,997 | 21,997 | 18,703 | ||
Issuances | 2,415 | 4,462 | 4,400 | |||
Premiums received | 52 | 106 | 103 | |||
Policy charge | (87) | (166) | (148) | |||
Surrenders and withdrawals | (876) | (1,322) | (1,303) | |||
Benefit payments | (254) | (485) | (440) | |||
Interest credited | 69 | 198 | 686 | |||
Other | 23 | (24) | (4) | |||
Balance, end of year | 26,108 | 26,108 | 24,766 | 21,997 | ||
Embedded derivative adjustments | 98 | (343) | 603 | |||
Gross Liability, end of period | 26,206 | 26,206 | 24,423 | 22,600 | ||
Reinsurance recoverable, net of allowance for credit losses of $9 and $10 at June 30, 2023 and December 31, 2022, respectively | (17) | (17) | (17) | (17) | ||
Net Liability, after Reinsurance | $ 26,189 | $ 26,189 | $ 24,406 | $ 22,583 | ||
Weighted-average crediting rate | 1.10% | 1.10% | 0.85% | 3.43% | ||
Cash surrender value | $ 24,337 | $ 24,337 | $ 188 | $ 20,455 | ||
Fixed Rate Annuities | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | 9,358 | 6,367 | 6,367 | 5,142 | ||
Issuances | 2,584 | 3,758 | 1,743 | |||
Premiums received | 1 | 3 | 3 | |||
Policy charge | 0 | (1) | (1) | |||
Surrenders and withdrawals | (520) | (797) | (543) | |||
Benefit payments | (118) | (192) | (145) | |||
Interest credited | 179 | 220 | 167 | |||
Other | (1) | 0 | 1 | |||
Balance, end of year | 11,483 | 11,483 | 9,358 | 6,367 | ||
Embedded derivative adjustments | 0 | 0 | 0 | |||
Gross Liability, end of period | 11,483 | 11,483 | 9,358 | 6,367 | ||
Reinsurance recoverable, net of allowance for credit losses of $9 and $10 at June 30, 2023 and December 31, 2022, respectively | (5,431) | (5,431) | (3,723) | (1,692) | ||
Net Liability, after Reinsurance | $ 6,052 | $ 6,052 | $ 5,635 | $ 4,675 | ||
Weighted-average crediting rate | 7.07% | 7.07% | 2.84% | 2.94% | ||
Cash surrender value | $ 10,707 | $ 10,707 | $ 5,992 | $ 5,992 | ||
Universal Life | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | 2,112 | 1,907 | 1,907 | 1,696 | ||
Issuances | 99 | 167 | 114 | |||
Premiums received | 180 | 295 | 233 | |||
Policy charge | (124) | (209) | (167) | |||
Surrenders and withdrawals | (45) | (74) | (68) | |||
Benefit payments | (16) | (22) | (19) | |||
Interest credited | 20 | 48 | 118 | |||
Other | 0 | 0 | 0 | |||
Balance, end of year | 2,226 | 2,226 | 2,112 | 1,907 | ||
Embedded derivative adjustments | 73 | 15 | 74 | |||
Gross Liability, end of period | 2,299 | 2,299 | 2,127 | 1,981 | ||
Reinsurance recoverable, net of allowance for credit losses of $9 and $10 at June 30, 2023 and December 31, 2022, respectively | (924) | (924) | (947) | (984) | ||
Net Liability, after Reinsurance | $ 1,375 | $ 1,375 | $ 1,180 | $ 997 | ||
Weighted-average crediting rate | 3.85% | 3.85% | 2.39% | 6.77% | ||
Net amount at risk | $ 53,401 | $ 53,401 | $ 53,348 | $ 41,326 | ||
Cash surrender value | 1,760 | 1,760 | 1,698 | 1,572 | ||
Funding Agreements, FABN | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | 2,613 | 1,904 | 1,904 | 0 | ||
Issuances | 0 | 700 | 1,899 | |||
Premiums received | 0 | 0 | 0 | |||
Policy charge | 0 | 0 | 0 | |||
Surrenders and withdrawals | 0 | 0 | 0 | |||
Benefit payments | (27) | (35) | (7) | |||
Interest credited | 27 | 45 | 12 | |||
Other | 0 | (1) | 0 | |||
Balance, end of year | 2,613 | 2,613 | 2,613 | 1,904 | ||
Embedded derivative adjustments | 0 | 0 | 0 | |||
Gross Liability, end of period | 2,613 | 2,613 | 2,613 | 1,904 | ||
Reinsurance recoverable, net of allowance for credit losses of $9 and $10 at June 30, 2023 and December 31, 2022, respectively | 0 | 0 | 0 | 0 | ||
Net Liability, after Reinsurance | 2,613 | 2,613 | 2,613 | 1,904 | ||
Federal Home Loan Bank Funding Agreements | ||||||
Policyholder Account Balance [Roll Forward] | ||||||
Balance, beginning of year | 1,982 | $ 1,543 | 1,543 | 1,203 | ||
Issuances | 456 | 1,192 | 759 | |||
Premiums received | 0 | 0 | 0 | |||
Policy charge | 0 | 0 | 0 | |||
Surrenders and withdrawals | 0 | 0 | 0 | |||
Benefit payments | (323) | (789) | (447) | |||
Interest credited | 25 | 36 | 30 | |||
Other | 3 | 0 | (2) | |||
Balance, end of year | 2,143 | 2,143 | 1,982 | 1,543 | ||
Embedded derivative adjustments | 0 | 0 | 0 | |||
Gross Liability, end of period | 2,143 | 2,143 | 1,982 | 1,543 | ||
Reinsurance recoverable, net of allowance for credit losses of $9 and $10 at June 30, 2023 and December 31, 2022, respectively | 0 | 0 | 0 | 0 | ||
Net Liability, after Reinsurance | $ 2,143 | $ 2,143 | $ 1,982 | $ 1,543 |
Contractholder Funds - Reconcil
Contractholder Funds - Reconciliation to Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Policyholder Account Balance [Line Items] | |||
Contractholder funds | $ 45,070 | $ 40,843 | $ 34,753 |
FIA | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 26,206 | 24,423 | 22,600 |
Fixed Rate Annuities | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 11,483 | 9,358 | 6,367 |
Immediate annuities | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 317 | 332 | 352 |
Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,299 | 2,127 | 1,981 |
Traditional Life | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 5 | 5 | 5 |
Funding Agreements, FABN | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,613 | 2,613 | 1,904 |
Federal Home Loan Bank Funding Agreements | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,143 | 1,982 | 1,543 |
PRT | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | $ 4 | $ 3 | $ 1 |
Contractholder Funds - Account
Contractholder Funds - Account Values By Range of Guaranteed Minimum Credit Rating (Details) $ in Millions | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | $ 45,070 | $ 40,843 | ||
1 Basis Point-50 Basis Points Above | Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0001 | 0.0001 | 0.0001 | |
1 Basis Point-50 Basis Points Above | Maximum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0050 | 0.0050 | 0.0050 | |
51 Basis Points-150 Basis Points Above | Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0051 | 0.0051 | 0.0051 | |
51 Basis Points-150 Basis Points Above | Maximum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | 0.0150 | |
Greater Than 150 Basis Points Above | Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | 0.0150 | |
FIA | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | $ 26,108 | $ 24,766 | $ 21,997 | $ 18,703 |
FIA | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 24,243 | 23,400 | 20,764 | |
FIA | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 796 | 801 | 817 | |
FIA | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 406 | 414 | 416 | |
FIA | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 663 | 151 | 0 | |
FIA | 0.00% To 1.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 25,611 | 24,210 | 21,353 | |
FIA | 0.00% To 1.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 23,749 | 22,848 | 20,162 | |
FIA | 0.00% To 1.50% | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 796 | 801 | 803 | |
FIA | 0.00% To 1.50% | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 403 | 410 | 388 | |
FIA | 0.00% To 1.50% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 663 | 151 | 0 | |
FIA | 1.51% To 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 142 | 163 | 207 | |
FIA | 1.51% To 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 141 | 162 | 171 | |
FIA | 1.51% To 2.50% | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 11 | |
FIA | 1.51% To 2.50% | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1 | 1 | 25 | |
FIA | 1.51% To 2.50% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
FIA | Greater Than 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 355 | 393 | 437 | |
FIA | Greater Than 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 353 | 390 | 431 | |
FIA | Greater Than 2.50% | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 3 | |
FIA | Greater Than 2.50% | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 2 | 3 | 3 | |
FIA | Greater Than 2.50% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Fixed Rate Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 11,483 | 9,358 | 6,367 | 5,142 |
Fixed Rate Annuities | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 959 | 1,016 | 965 | |
Fixed Rate Annuities | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 46 | 50 | 185 | |
Fixed Rate Annuities | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1,870 | 1,905 | 1,990 | |
Fixed Rate Annuities | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 8,608 | 6,387 | 3,227 | |
Fixed Rate Annuities | 0.00% To 1.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 10,172 | 8,292 | 5,177 | |
Fixed Rate Annuities | 0.00% To 1.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 17 | 10 | 2 | |
Fixed Rate Annuities | 0.00% To 1.50% | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 30 | 32 | 28 | |
Fixed Rate Annuities | 0.00% To 1.50% | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1,838 | 1,871 | 1,928 | |
Fixed Rate Annuities | 0.00% To 1.50% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 8,287 | 6,379 | 3,219 | |
Fixed Rate Annuities | 1.51% To 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 362 | 54 | 62 | |
Fixed Rate Annuities | 1.51% To 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 8 | 9 | 9 | |
Fixed Rate Annuities | 1.51% To 2.50% | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 13 | 14 | 15 | |
Fixed Rate Annuities | 1.51% To 2.50% | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 28 | 30 | 37 | |
Fixed Rate Annuities | 1.51% To 2.50% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 313 | 1 | 1 | |
Fixed Rate Annuities | Greater Than 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 949 | 1,012 | 1,128 | |
Fixed Rate Annuities | Greater Than 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 934 | 997 | 954 | |
Fixed Rate Annuities | Greater Than 2.50% | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 3 | 4 | 142 | |
Fixed Rate Annuities | Greater Than 2.50% | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 4 | 4 | 25 | |
Fixed Rate Annuities | Greater Than 2.50% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 8 | 7 | 7 | |
Universal Life | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 2,226 | 2,112 | 1,907 | $ 1,696 |
Universal Life | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 2,168 | 2,047 | 1,845 | |
Universal Life | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 39 | 47 | 48 | |
Universal Life | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1 | 1 | 1 | |
Universal Life | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 18 | 17 | 13 | |
Universal Life | 0.00% To 1.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1,844 | 1,721 | 1,501 | |
Universal Life | 0.00% To 1.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1,822 | 1,701 | 1,486 | |
Universal Life | 0.00% To 1.50% | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 4 | 3 | 2 | |
Universal Life | 0.00% To 1.50% | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | 0.00% To 1.50% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 18 | 17 | 13 | |
Universal Life | 1.51% To 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | 1.51% To 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | 1.51% To 2.50% | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | 1.51% To 2.50% | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | 1.51% To 2.50% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 0 | 0 | 0 | |
Universal Life | Greater Than 2.50% | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 382 | 391 | 406 | |
Universal Life | Greater Than 2.50% | At Guaranteed Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 346 | 346 | 359 | |
Universal Life | Greater Than 2.50% | 1 Basis Point-50 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 35 | 44 | 46 | |
Universal Life | Greater Than 2.50% | 51 Basis Points-150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | 1 | 1 | 1 | |
Universal Life | Greater Than 2.50% | Greater Than 150 Basis Points Above | ||||
Policyholder Account Balance [Line Items] | ||||
Contractholder funds | $ 0 | $ 0 | $ 0 |
Future Policy Benefits - Summar
Future Policy Benefits - Summary Balances and Changes in the Present Value of Expected Net Premiums and Present Value of FPB (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Net liability for future policy benefits | $ 5,715 | $ 5,021 | $ 4,918 | |
Less: Reinsurance recoverable | $ 1,115 | |||
Traditional Life | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Balance, beginning of year | 797 | 1,020 | 1,152 | |
Beginning balance of original discount rate | 974 | 1,045 | 1,131 | |
Effect of actual variances from expected experience | 7 | 33 | 25 | |
Balance adjusted for variances from expectation | 981 | 1,078 | 1,156 | |
Interest accrual | 9 | 20 | 22 | |
Net premiums collected | (60) | (124) | (133) | |
Ending Balance at original discount rate | 930 | 974 | 1,045 | |
Effect of changes in discount rate assumptions | 167 | 177 | 25 | |
Balance, end of year | 763 | 797 | 1,020 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of year | 2,151 | 2,772 | 3,105 | |
Beginning balance of original discount rate | 2,665 | 2,806 | 2,995 | |
Effect of actual variances from expected experience | (9) | 13 | (14) | |
Balance adjusted for variances from expectation | 2,656 | 2,819 | 2,981 | |
Interest accrual | 28 | 59 | 62 | |
Benefits payments | (99) | (213) | (237) | |
Ending Balance at original discount rate | 2,585 | 2,665 | 2,806 | |
Effect of changes in discount rate assumptions | (474) | (514) | (34) | |
Balance, end of year | 2,111 | 2,151 | 2,772 | |
Net liability for future policy benefits | 1,348 | 1,354 | 1,752 | |
Less: Reinsurance recoverable | 587 | 612 | 749 | 793 |
Net liability for future policy benefits, after reinsurance recoverable | $ 761 | $ 742 | $ 1,003 | |
Weighted-average duration of liability for future policyholder benefits (years) | 7 years 4 months 9 days | 7 years 6 months 29 days | 8 years 6 months 14 days | |
Immediate annuities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of year | $ 1,429 | $ 1,954 | $ 2,153 | |
Beginning balance of original discount rate | 1,858 | 1,935 | 2,040 | |
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | (17) | (26) | (47) | |
Balance adjusted for variances from expectation | 1,841 | 1,909 | 1,993 | |
Issuances | 10 | 26 | 18 | |
Interest accrual | 33 | 60 | 60 | |
Benefits payments | (65) | (137) | (136) | |
Ending Balance at original discount rate | 1,819 | 1,858 | 1,935 | |
Effect of changes in discount rate assumptions | 408 | (429) | 19 | |
Balance, end of year | 1,411 | 1,429 | 1,954 | |
Net liability for future policy benefits | 1,411 | 1,429 | 1,954 | |
Less: Reinsurance recoverable | 116 | 118 | 145 | 322 |
Net liability for future policy benefits, after reinsurance recoverable | $ 1,295 | $ 1,311 | $ 1,809 | |
Weighted-average duration of liability for future policyholder benefits (years) | 12 years 5 months 19 days | 11 years 9 months 3 days | 13 years 7 months 9 days | |
PRT | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of year | $ 2,165 | $ 1,148 | $ 0 | |
Beginning balance of original discount rate | 2,475 | 1,151 | 0 | |
Effect of changes in cash flow assumptions | (5) | (20) | ||
Effect of actual variances from expected experience | 0 | 2 | 0 | |
Balance adjusted for variances from expectation | 2,470 | 1,133 | $ 0 | |
Issuances | 755 | 1,418 | 1,155 | |
Interest accrual | 50 | 50 | 2 | |
Benefits payments | (115) | (126) | (6) | |
Ending Balance at original discount rate | 3,160 | 2,475 | 1,151 | |
Effect of changes in discount rate assumptions | 290 | (310) | (3) | |
Balance, end of year | 2,870 | 2,165 | 1,148 | |
Net liability for future policy benefits | 2,870 | 2,165 | 1,148 | |
Less: Reinsurance recoverable | 0 | 0 | 0 | |
Net liability for future policy benefits, after reinsurance recoverable | $ 2,870 | $ 2,165 | $ 1,148 | |
Weighted-average duration of liability for future policyholder benefits (years) | 8 years 2 months 23 days | 8 years 1 month 2 days | 8 years 9 months |
Future Policy Benefits - Summ_2
Future Policy Benefits - Summary of Balances and Changes in the Deferred Profit Liability (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Immediate annuities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance, beginning of year | $ 69 | $ 57 | $ 22 | |
Effect of modeling changes | 4 | 0 | $ 0 | |
Effect of changes in cash flow assumptions | 0 | 0 | 0 | |
Effect of actual variances from expected experience | 10 | 16 | 39 | |
Balance adjusted for variances from expectation | 83 | 73 | 61 | |
Issuances | 1 | 1 | 0 | |
Interest accrual | 1 | 2 | 2 | |
Amortization | (3) | (7) | (6) | |
Balance, end of year | 82 | 69 | 57 | |
PRT | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance, beginning of year | 4 | 7 | 0 | |
Effect of modeling changes | 0 | 0 | 0 | |
Effect of changes in cash flow assumptions | 0 | (2) | 0 | |
Effect of actual variances from expected experience | 2 | 0 | 0 | |
Balance adjusted for variances from expectation | 6 | 5 | $ 0 | |
Issuances | 0 | 0 | 7 | |
Interest accrual | (1) | 0 | 0 | |
Amortization | (1) | (1) | 0 | |
Balance, end of year | $ 4 | $ 4 | $ 7 |
Future Policy Benefits - Reconc
Future Policy Benefits - Reconciliation of Net FPB to the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits | $ 5,715 | $ 5,021 | $ 4,918 | |
Traditional Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits | 1,348 | 1,354 | 1,752 | |
Immediate annuities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits | 1,411 | 1,429 | 1,954 | |
Deferred profit liability | 82 | 69 | 57 | $ 22 |
PRT | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits | 2,870 | 2,165 | 1,148 | |
Deferred profit liability | 4 | 4 | 7 | $ 0 |
Immediate annuities DPL | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Deferred profit liability | 82 | 69 | 57 | |
PRT DPL | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Deferred profit liability | $ 4 | $ 4 | $ 7 |
Future Policy Benefits - Liabil
Future Policy Benefits - Liability For Future Policy Benefit Expected Future Policy Benefit Undiscounted (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Traditional Life | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | $ 3,027 | $ 3,201 |
Expected future gross premiums | 1,114 | 1,245 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 2,089 | 2,686 |
Expected future gross premiums | 803 | 1,091 |
Immediate annuities | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | 3,361 | 3,516 |
Expected future gross premiums | 0 | 0 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 1,411 | 1,907 |
Expected future gross premiums | 0 | 0 |
PRT | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | 4,724 | 2,265 |
Expected future gross premiums | 0 | 0 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 3,161 | 1,652 |
Expected future gross premiums | $ 0 | $ 0 |
Future Policy Benefits - Gross
Future Policy Benefits - Gross Premium Income and Interest Expense (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | $ 811 | $ 606 |
Interest expense | 102 | 69 |
Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 63 | 70 |
Interest expense | 19 | 20 |
Immediate annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 11 | 16 |
Interest expense | 33 | 30 |
PRT | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 737 | 520 |
Interest expense | $ 50 | $ 19 |
Future Policy Benefits - Weight
Future Policy Benefits - Weighted Average Rates (Details) | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Traditional Life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 2.33% | 2.32% | 2.29% |
Current discount rate | 4.63% | 5.37% | 2.41% |
Immediate annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 3.12% | 3.07% | 3.04% |
Current discount rate | 5.10% | 5.21% | 3.07% |
PRT | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 4.04% | 3.20% | 1.20% |
Current discount rate | 5.28% | 5.40% | 2.79% |
Future Policy Benefits - Actual
Future Policy Benefits - Actual Experience and Expected Experience for Mortality and Lapses (Details) | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Actual experience | Traditional Life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 1.40% | 1.50% | 1.70% |
Lapse rate | 0.10% | 0% | 0.10% |
Actual experience | Immediate annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 3.20% | 3% | 4.20% |
Lapse rate | 0% | 0% | 0% |
Actual experience | PRT | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 2.30% | 1.90% | 0% |
Lapse rate | 0% | 0% | 0% |
Expected experience | Traditional Life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 1.40% | 1.30% | 1.30% |
Lapse rate | 0.30% | 0.30% | 0.30% |
Expected experience | Immediate annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 1.60% | 1.90% | 2% |
Lapse rate | 0% | 0% | 0% |
Expected experience | PRT | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Mortality rate | 2.10% | 2.50% | 0% |
Lapse rate | 0% | 0% | 0% |
Future Policy Benefits - Additi
Future Policy Benefits - Additional Information, Cohort NPR (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Insurance [Abstract] | |||
Net Premium Ratio before capping | 100% | 100% | |
Reserves before NP Ratio capping | $ 1,184 | $ 1,172 | |
Reserves after NP Ratio capping | 1,185 | $ 1,173 | |
Loss Expense | $ 1 | $ 0 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities- Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||||
URL | $ 215 | $ 166 | $ 124 | $ 87 |
Accounts Payable and Accrued _4
Accounts Payable and Accrued Liabilities - Reconciliation (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||||
Salaries and incentives | $ 56 | $ 72 | ||
Accrued benefits | 58 | 58 | ||
URL | 215 | 166 | $ 124 | $ 87 |
Trade accounts payable | 113 | 114 | ||
Liability for policy and contract claims | 92 | 109 | ||
Retained asset account | 96 | 117 | ||
Remittances and items not allocated | 193 | 225 | ||
Option collateral liabilities | 459 | 178 | ||
Lease liability | 12 | 13 | ||
Other accrued liabilities | 425 | 208 | ||
Accounts payable and accrued liabilities | $ 1,719 | $ 1,260 |
Accounts Payable and Accrued _5
Accounts Payable and Accrued Liabilities - Rollforward of Unearned Revenue Liabilities (URL) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Contract With Customer Liability [Roll Forward] | ||
Balance, beginning | $ 166 | $ 87 |
Capitalization | 56 | 41 |
Amortization | (7) | (4) |
Balance, ending | 215 | 124 |
Universal Life | ||
Contract With Customer Liability [Roll Forward] | ||
Balance, beginning | 166 | 87 |
Capitalization | 56 | 41 |
Amortization | (7) | (4) |
Balance, ending | $ 215 | $ 124 |
Notes Payable - Components of N
Notes Payable - Components of Notes Payable (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jan. 13, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Notes payable | $ 1,571 | $ 1,114 | |
7.40% Senior Notes Due 2028 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 7.40% | 7.40% | |
Notes payable | $ 495 | 0 | |
5.50% F&G Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 5.50% | ||
Notes payable | $ 565 | 567 | |
Revolving Credit Facility | Credit Agreement | Credit Facility | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 511 | $ 547 |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |||||
Feb. 21, 2023 | Jan. 06, 2023 | Jun. 30, 2023 | Jan. 13, 2023 | Dec. 31, 2022 | Nov. 22, 2022 | |
7.40% Senior Notes Due 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 500 | |||||
Interest rate, stated percentage | 7.40% | 7.40% | ||||
Credit Agreement | Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 665 | $ 550 | ||||
Partial repayment of debt | $ 35 | |||||
Credit facility, increase in principal amount | $ 115 | |||||
Credit facility outstanding | $ 515 | $ 550 | ||||
Credit facility, remaining borrowing available | $ 150 | |||||
Average variable interest rate | 644% |
Notes Payable - Gross Principal
Notes Payable - Gross Principal Maturities of Notes Payable (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 515 |
2024 | 0 |
2025 | 550 |
2026 | 0 |
2027 | 0 |
Thereafter | 500 |
Total | $ 1,565 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash paid for: | ||
Interest | $ 24 | $ 18 |
Income taxes | 0 | 7 |
Deferred sales inducements | 68 | 38 |
Non-cash investing and financing activities: | ||
Investments received from pension risk transfer premiums | 219 | 0 |
Change in proceeds of sales of investments available for sale receivable in period | (151) | 151 |
Change in purchases of investments available for sale payable in period | $ 237 | $ 226 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - In the Matter of FGL Holdings - USD ($) $ in Millions | 1 Months Ended | |
Apr. 19, 2023 | Aug. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Number of shares in which statutory appraisal rights have been claimed (in shares) | 12,000,000 | |
Settled Litigation | ||
Loss Contingencies [Line Items] | ||
Amount awarded from other party | $ 4 |
Commitments and Contingencies_2
Commitments and Contingencies - Unfunded Commitments (Details) - Commitment to Invest $ in Millions | Jun. 30, 2023 USD ($) |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 4,059 |
Limited partnerships | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 1,688 |
Whole loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 1,044 |
Fixed maturity securities, ABS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 247 |
Direct Lending | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 910 |
Other fixed maturity securities, AFS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 21 |
Commercial mortgage loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 16 |
Other assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 125 |
Other invested assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 6 |
Committed amounts included in liabilities | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 2 |
Insurance Subsidiary Financia_2
Insurance Subsidiary Financial Information and Regulatory Matters - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Statutory Accounting Practices [Line Items] | |||
Decrease in statutory capital and surplus | $ 202 | $ (152) | |
Increase to statutory capital for investment carried at net asset value | 15 | $ 13 | |
Vermont | Raven Reinsurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Change in statutory capital surplus increase (decrease) | 200 | 200 | |
Statutory capital and surplus | $ 107 | $ 121 |
ASU 2018-12 Transition - Narrat
ASU 2018-12 Transition - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment to increase opening retained earnings | $ 2,518 | $ 2,485 | $ 2,405 | $ 3,096 | $ 3,773 | $ 5,034 | |
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment to increase opening retained earnings | $ 1,971 | $ 1,866 | $ 2,061 | $ 2,075 | $ 1,690 | $ 1,451 | |
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment to increase opening retained earnings | $ 75 |
ASU 2018-12 Transition - Balanc
ASU 2018-12 Transition - Balance of Changes in FPB due to Adoption of ASU 2018-012 (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | $ 4,128 | |||
Less: Reinsurance recoverable | 1,115 | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | (78) | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance, net of reinsurance | 3,013 | |||
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | 4,005 | |||
Revision of Prior Period, Accounting Standards Update, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | 201 | |||
Immediate annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | 2,175 | |||
Less: Reinsurance recoverable | $ 116 | $ 118 | $ 145 | 322 |
Immediate annuities | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | 201 | |||
Immediate annuities | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance, net of reinsurance | 1,853 | |||
Immediate annuities | Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | 1,861 | |||
Immediate annuities | Revision of Prior Period, Accounting Standards Update, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | 113 | |||
Traditional Life | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | 1,953 | |||
Less: Reinsurance recoverable | $ 587 | $ 612 | $ 749 | 793 |
Traditional Life | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | (279) | |||
Traditional Life | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance, net of reinsurance | 1,160 | |||
Traditional Life | Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | 2,144 | |||
Traditional Life | Revision of Prior Period, Accounting Standards Update, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Liability for future policy benefit | $ 88 |
ASU 2018-12 Transition - Bala_2
ASU 2018-12 Transition - Balance of Changes in VOBA, DAC, DSI and URL due to Adoption of ASU 2018-012 (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | $ 1,529 | $ 1,615 | $ 1,704 | $ 1,743 | |
DAC | 1,847 | 1,402 | 1,065 | 775 | |
DSI | 258 | 200 | 159 | 127 | |
URL | 215 | 166 | 124 | 87 | |
Immediate annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 195 | 201 | 206 | 212 | |
Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 71 | 73 | 76 | 25 | |
FIA | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 1,095 | 1,166 | 1,238 | 1,314 | |
DAC | 1,173 | 971 | 751 | 564 | |
DSI | 258 | 200 | 159 | 127 | |
Fixed Rate Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 29 | 32 | 36 | 39 | |
DAC | 233 | 83 | 59 | 38 | |
Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 139 | 143 | 148 | 153 | |
DAC | 441 | 348 | 255 | 173 | |
URL | $ 215 | $ 166 | $ 124 | $ 87 | |
Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | $ 1,466 | ||||
DAC | 222 | ||||
DSI | 36 | ||||
URL | 2 | ||||
Previously Reported | Immediate annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 86 | ||||
Previously Reported | Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 18 | ||||
Previously Reported | FIA | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 1,208 | ||||
DAC | 167 | ||||
DSI | 36 | ||||
Previously Reported | Fixed Rate Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 15 | ||||
DAC | 14 | ||||
Previously Reported | Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 139 | ||||
DAC | 41 | ||||
URL | 2 | ||||
Revision of Prior Period, Accounting Standards Update, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 232 | ||||
DAC | 25 | ||||
DSI | 5 | ||||
URL | 25 | ||||
Revision of Prior Period, Accounting Standards Update, Adjustment | Immediate annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 0 | ||||
Revision of Prior Period, Accounting Standards Update, Adjustment | Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | (29) | ||||
Revision of Prior Period, Accounting Standards Update, Adjustment | FIA | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 208 | ||||
DAC | 15 | ||||
DSI | 5 | ||||
Revision of Prior Period, Accounting Standards Update, Adjustment | Fixed Rate Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 24 | ||||
DAC | 2 | ||||
Revision of Prior Period, Accounting Standards Update, Adjustment | Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 29 | ||||
DAC | 8 | ||||
URL | 25 | ||||
Revision of Prior Period, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 264 | ||||
Revision of Prior Period, Adjustment | Immediate annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 145 | ||||
Revision of Prior Period, Adjustment | Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 43 | ||||
Revision of Prior Period, Adjustment | FIA | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 69 | ||||
Revision of Prior Period, Adjustment | Fixed Rate Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 2 | ||||
Revision of Prior Period, Adjustment | Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 5 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | (22) | ||||
DAC | (2) | ||||
DSI | 4 | ||||
URL | 2 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Immediate annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | (5) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | (1) | ||||
Cumulative Effect, Period of Adoption, Adjustment | FIA | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | (14) | ||||
DAC | (1) | ||||
DSI | 4 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Fixed Rate Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 7 | ||||
DAC | 0 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | (9) | ||||
DAC | (1) | ||||
URL | 2 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 1,940 | ||||
DAC | 245 | ||||
DSI | 45 | ||||
URL | 29 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Immediate annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 226 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 31 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | FIA | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 1,471 | ||||
DAC | 181 | ||||
DSI | 45 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Fixed Rate Annuities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 48 | ||||
DAC | 16 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
VOBA | 164 | ||||
DAC | 48 | ||||
URL | $ 29 |
ASU 2018-12 Transition - Summar
ASU 2018-12 Transition - Summary Balance of Changes in Assets and Liability Position for Market Risk Benefit (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | $ 195 | $ 165 | $ 428 | |
Less: reinsured market risk benefits | $ 0 | |||
FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 194 | 164 | 426 | 478 |
Less: reinsured market risk benefits | 0 | |||
Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | $ 1 | $ 1 | $ 2 | 1 |
Less: reinsured market risk benefits | 0 | |||
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 531 | |||
Previously Reported | FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 531 | |||
Previously Reported | Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 0 | |||
Adjustment for reversal of AOCI adjustments | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | (116) | |||
Adjustment for reversal of AOCI adjustments | FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | (116) | |||
Adjustment for reversal of AOCI adjustments | Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 0 | |||
Cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 159 | |||
Cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date | FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 159 | |||
Cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date | Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 0 | |||
Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | (95) | |||
Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs | FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | (96) | |||
Remaining cumulative difference (exclusive of the instrument specific credit risk change) between December 31, 2020 carrying amount and fair value measurement for the MRBs | Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 1 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 479 | |||
Balance, end of period, net of reinsurance | 479 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | FIA | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 478 | |||
Balance, end of period, net of reinsurance | 478 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | Fixed Rate Annuities | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Balance beginning/ending and adjustments | 1 | |||
Balance, end of period, net of reinsurance | $ 1 |
ASU 2018-12 Transition - Effect
ASU 2018-12 Transition - Effect of Transition Adjustments on Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Dec. 31, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Contractholder funds | $ 45,070 | $ 45,070 | $ 40,843 | ||||||
MRB | 195 | 195 | 165 | $ 428 | |||||
VOBA | 1,529 | $ 1,704 | 1,529 | $ 1,704 | 1,615 | 1,743 | |||
DAC | 1,847 | 1,065 | 1,847 | 1,065 | 1,402 | 775 | |||
Tax impact | 33 | 97 | 25 | 203 | |||||
Increase to Equity, net of tax | 2,518 | 3,096 | 2,518 | 3,096 | $ 2,485 | 2,405 | $ 3,773 | 5,034 | |
Retained Earnings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Increase to Equity, net of tax | 1,971 | 2,075 | 1,971 | 2,075 | 1,866 | 2,061 | 1,690 | 1,451 | |
Accumulated Other Comprehensive Earnings (Loss) | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Increase to Equity, net of tax | $ (2,610) | $ (2,135) | $ (2,610) | $ (2,135) | $ (2,548) | $ (2,818) | $ (670) | $ 833 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
VOBA | $ (22) | ||||||||
DAC | (2) | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Contractholder funds | 101 | ||||||||
MRB | 30 | ||||||||
FPB | (14) | ||||||||
VOBA | (21) | ||||||||
DAC | (1) | ||||||||
Increase to Equity, gross of tax | 95 | ||||||||
Tax impact | 20 | ||||||||
Increase to Equity, net of tax | 75 | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Earnings (Loss) | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Contractholder funds | 115 | ||||||||
MRB | (160) | ||||||||
FPB | (159) | ||||||||
VOBA | 233 | ||||||||
DAC | 5 | ||||||||
Increase to Equity, gross of tax | 34 | ||||||||
Tax impact | 9 | ||||||||
Increase to Equity, net of tax | $ 25 |