Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 07, 2023 | Jun. 30, 2022 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-55871 | ||
Entity Registrant Name | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-0472300 | ||
Entity Address, Address Line One | 1301 South Harrison Street | ||
Entity Address, City or Town | Fort Wayne | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 46802 | ||
City Area Code | 260 | ||
Local Phone Number | 455-2000 | ||
Title of 12(g) Security | Common Stock, par value $2.50 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 10,000,000 | ||
Entity Public Float | $ 0 | ||
Amendment Flag | true | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Entity Central Index Key | 0000726865 | ||
Auditor Firm ID | 42 | ||
Auditor Location | Philadelphia, Pennsylvania | ||
Auditor Name | Ernst & Young LLP | ||
Amendment Description | Explanatory NoteThe Lincoln National Life Insurance Company (the “Company”) is filing this Amendment No. 1 on Form 10-K/A (the “Amendment” or “Form 10-K/A”) to amend and restate certain items in its Annual Report on Form 10-K for the fiscal year ended December 31, 2022, originally filed with the Securities and Exchange Commission (the “SEC”) on March 7, 2023, (the “Original Form 10-K”). Except as described below, no other information included in the Original Form 10-K is being amended or updated by this Amendment and this Amendment does not purport to reflect any information or events subsequent to the Original Form 10-K. This Amendment should be read in conjunction with the Original Form 10-K. Restatement BackgroundAs previously disclosed, the Company entered into a reinsurance agreement with Security Life of Denver Insurance Company (a subsidiary of Resolution Life that we refer to herein as “Resolution Life”) that was effective as of October 1, 2021, to reinsure liabilities under a block of in-force executive benefit and universal life insurance policies. The transaction was structured as coinsurance for the general account reserves and modified coinsurance for the separate account reserves. For the coinsurance portion of the transaction, the Company transferred both the insurance reserves and a portfolio of assets to Resolution Life, which triggered a realized gain on the invested assets for the Company. As a result of the transaction, the Company recorded a deferred gain on the invested assets transferred pursuant to the transaction, recognizable over the projected life of the reinsured policies. The Company has determined that the realized gain should have been recognized at the time of the transfer of the assets and that the correct accounting treatment for the Resolution Life transaction is to reflect a one-time gain related to the transfer of assets rather than a deferred gain. For additional information on the error, see “Part II – Item 8. Financial Statements and Supplementary Data – Note 1 – Restatement of Previously Issued Consolidated Financial Statements” in this Form 10-K/A. As a result, on March 21, 2023, the Board of Directors of the Company, after discussion with the Company’s management determined that the Company’s previously issued audited consolidated financial statements as of and for the annual periods ended December 31, 2021, and December 31, 2022, and for the quarterly periods ended March 31, June 30 and September 30, 2022, should no longer be relied upon solely as a result of the above-described error in the accounting treatment with respect to timing for the recognition of investment gains related to the fourth quarter 2021 reinsurance transaction with Resolution Life. Accordingly, on March 27, 2023, the Company announced that it would restate its audited consolidated financial statements as of and for the years ended December 31, 2022, and December 31, 2021, and its interim financial statements for the quarters of 2022 and the fourth quarter of 2021. Restatement of Previously Issued Consolidated Financial StatementsThis Form 10-K/A includes audited restated consolidated financial statements for the years ended December 31, 2022, and December 31, 2021, as well as unaudited restated interim financial information for the quarterly periods in 2022 and 2021. In addition to correcting the accounting treatment for the reinsurance transaction described above, the restated consolidated financial statements for the years ended December 31, 2022, and December 31, 2021, included herein also correct previously identified errors that the Company determined to be immaterial, both individually and in the aggregate. For additional information on the audited consolidated financial statements for the years ended December 31, 2022, and December 31, 2021, see “Part II – Item 8. Financial Statements and Supplementary Data – Note 1 – Restatement of Previously Issued Consolidated Financial Statements” in this Form 10-K/A. For restated information on the quarterly consolidated financial statements for the years 2022 and 2021, see Note 24 in “Part II – Item 8. Financial Statements and Supplementary Data” in this Form 10-K/A. This Form 10-K/A also amends and restates the following items included in the Original Form 10-K as appropriate to reflect the restatement and revision of the relevant periods: Item 7. Management’s Narrative Analysis of the Results of Operations; Item 7A. Quantitative and Qualitative Disclosures About Market Risk; Item 8. Financial Statements and Supplementary Data; Item 9A. Controls and Procedures; and Item 15. Exhibits and Financial Statement Schedules. In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company is also including with this Form 10-K/A currently dated certifications of the Company’s President and Chief Financial Officer (attached as Exhibits 31.1, 31.2, 32.1, and 32.2). Except as discussed above and as further described in Note 1 to the consolidated financial statements, the Company has not modified or updated the disclosures in the Original Form 10-K. Accordingly, this 10-K/A does not reflect events occurring after the Original Form 10-K or modify or update those disclosures affected by subsequent events. This Amendment should be read in conjunction with the Original Form 10-K. Control ConsiderationsIn connection with the restatement, management has assessed the effectiveness of the Company’s internal control over financial reporting. Based on this assessment, the Company identified a material weakness in its internal control over financial reporting for the review of significant reinsurance transactions resulting in the conclusion by the Company’s President and Chief Financial Officer that the internal control over financial reporting and disclosure controls and procedures were not effective as of December 31, 2022. Management has taken steps towards remediating the material weakness in the Company’s internal control over financial reporting. For additional information related to the material weakness in internal control over financial reporting and the related remedial measures, see “Part II – Item 9A. Controls and Procedures.” |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||||||||||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $110,944; 2021 - $104,491; allowance for credit losses: 2022 - $21; 2021 - $19) | $ 99,465 | $ 97,391 | $ 102,954 | $ 109,889 | $ 117,476 | $ 120,794 | $ 120,452 | $ 115,695 | ||
Trading securities | 3,446 | 3,527 | 3,760 | 4,313 | 4,405 | 4,114 | 4,154 | 4,287 | ||
Equity securities | 427 | 427 | 412 | 393 | 371 | 260 | 191 | 142 | ||
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $487; 2021 - $739) | 18,211 | 17,975 | 17,830 | 17,795 | 17,893 | 17,633 | 17,487 | 17,159 | ||
Policy loans | 2,345 | 2,333 | 2,355 | 2,325 | 2,349 | 2,364 | 2,395 | 2,487 | ||
Derivative investments | 3,519 | 3,398 | 3,167 | 4,574 | 5,697 | 5,075 | 4,729 | 3,482 | ||
Other investments | 3,577 | 3,620 | 3,782 | 3,521 | 3,445 | 3,302 | 3,221 | 3,023 | ||
Total investments | 130,990 | 128,671 | 134,260 | 142,810 | 151,636 | 153,542 | 152,629 | 146,275 | ||
Cash and invested cash | 2,499 | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | $ 1,462 | $ 1,879 |
Deferred acquisition costs and value of business acquired | 13,615 | 13,765 | 11,832 | 8,689 | 5,986 | 5,918 | 6,207 | 7,606 | 5,824 | |
Accrued investment income | 1,234 | 1,238 | 1,196 | 1,209 | 1,157 | 1,251 | 1,215 | 1,255 | ||
Reinsurance recoverables, net of allowance for credit losses | 23,910 | 24,256 | 23,554 | 22,870 | 22,755 | 18,207 | 18,257 | 18,583 | ||
Goodwill | 1,144 | 1,144 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | |
Other assets | 21,338 | 21,560 | 20,447 | 22,284 | 23,292 | 22,941 | 22,871 | 21,930 | ||
Separate account assets | 143,536 | 137,295 | 145,791 | 168,879 | 182,583 | 175,667 | 178,795 | 171,339 | ||
Total assets | 338,266 | 329,220 | 340,135 | 370,241 | 391,518 | 381,498 | 383,666 | 369,852 | ||
Liabilities | ||||||||||
Future contract benefits | 41,598 | 41,162 | 38,735 | 39,186 | 40,416 | 40,016 | 39,621 | 38,941 | ||
Other contract holder funds | 120,360 | 117,756 | 114,652 | 112,399 | 111,183 | 108,765 | 108,249 | 106,461 | ||
Short-term debt | 562 | 771 | 698 | 737 | 1,084 | 483 | 457 | 568 | ||
Long-term debt | 2,269 | 2,267 | 2,267 | 2,311 | 2,334 | 2,333 | 2,332 | 2,332 | ||
Payables for collateral on investments | 6,638 | 6,855 | 7,525 | 8,905 | 8,936 | 8,378 | 8,192 | 7,593 | ||
Other liabilities | 15,037 | 16,635 | 17,378 | 19,524 | 22,122 | 22,308 | 21,934 | 20,415 | ||
Separate account liabilities | 143,536 | 137,295 | 145,791 | 168,879 | 182,583 | 175,667 | 178,795 | 171,339 | ||
Total liabilities | 330,000 | 322,741 | 327,046 | 351,941 | 368,658 | 357,950 | 359,580 | 347,649 | ||
Contingencies and Commitments (See Note 13) | ||||||||||
Stockholder’s Equity | ||||||||||
Common stock – 10,000,000 shares authorized, issued and outstanding | 12,903 | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | ||
Retained earnings | 2,436 | 2,398 | 4,962 | 4,799 | 4,366 | 4,664 | 4,595 | 4,444 | ||
Accumulated other comprehensive income (loss) | (7,073) | (8,033) | (3,893) | 1,553 | 6,544 | 6,944 | 7,561 | 5,840 | ||
Total stockholder’s equity | 8,266 | 6,479 | 13,089 | 18,300 | 22,860 | 23,548 | 24,086 | 22,203 | $ 25,041 | |
Total liabilities and stockholder’s equity | $ 338,266 | $ 329,220 | $ 340,135 | $ 370,241 | $ 391,518 | $ 381,498 | $ 383,666 | $ 369,852 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale securities, at fair value: | |||||||||
Fixed maturity available-for-sale securities (amortized cost) | $ 110,944 | $ 110,323 | $ 108,963 | $ 106,939 | $ 104,491 | $ 106,752 | $ 105,530 | $ 104,684 | |
Fixed maturity, ACL | 21 | 18 | 12 | 20 | 19 | 17 | 9 | 14 | $ 13 |
Mortgage loans on real estate, fair value | $ 487 | $ 495 | $ 528 | $ 537 | $ 739 | $ 792 | $ 818 | $ 874 | |
Stockholder’s Equity | |||||||||
Common stock - shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |
Common stock - shares issued (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |
Common stock - shares outstanding (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||||||||||||||
Insurance premiums | $ 1,503 | $ 1,496 | $ 1,436 | $ 1,406 | $ 1,360 | $ 1,341 | $ 1,334 | $ 1,324 | $ 5,841 | $ 5,359 | $ 5,122 | ||||
Fee income | 1,397 | 1,438 | 1,446 | 1,502 | 1,567 | 1,931 | 1,603 | 1,529 | 5,783 | 6,630 | 6,120 | ||||
Net investment income | 1,343 | 1,241 | 1,338 | 1,352 | 1,374 | 1,510 | 1,509 | 1,446 | 5,274 | 5,839 | 5,264 | ||||
Realized gain (loss) | (124) | 11 | 70 | 257 | 700 | (32) | (169) | 212 | $ 327 | $ 43 | $ 338 | $ 11 | 214 | 711 | (526) |
Amortization of deferred gain (loss) on business sold through reinsurance | 8 | 9 | 10 | 10 | 10 | 8 | 7 | 7 | 20 | 14 | 29 | 22 | 37 | 32 | 33 |
Other revenues | 172 | 162 | 133 | 154 | 176 | 149 | 162 | 170 | 621 | 657 | 553 | ||||
Total revenues | 4,299 | 4,357 | 4,433 | 4,681 | 5,187 | 4,907 | 4,446 | 4,688 | 17,770 | 19,228 | 16,566 | ||||
Expenses | |||||||||||||||
Interest credited | 740 | 717 | 701 | 691 | 691 | 742 | 740 | 738 | 2,849 | 2,911 | 2,899 | ||||
Benefits | 2,053 | 4,498 | 2,051 | 2,199 | 2,169 | 1,839 | 1,848 | 2,183 | 10,801 | 8,039 | 8,050 | ||||
Commissions and other expenses | 1,326 | 1,205 | 1,077 | 1,191 | 1,276 | 1,841 | 1,260 | 1,171 | 4,799 | 5,548 | 4,889 | ||||
Interest and debt expense | 41 | 36 | 31 | 29 | 28 | 29 | 28 | 29 | 137 | 114 | 125 | ||||
Spark program expense | 48 | 44 | 44 | 31 | 31 | 22 | 21 | 13 | 167 | 87 | 68 | ||||
Impairment of intangibles | 634 | 634 | 634 | ||||||||||||
Total expenses | 4,208 | 7,134 | 3,904 | 4,141 | 4,195 | 4,473 | 3,897 | 4,134 | 19,387 | 16,699 | 16,031 | ||||
Income (loss) before taxes | 91 | (2,777) | 529 | 540 | 992 | 434 | 549 | 554 | (1,617) | 2,529 | 535 | ||||
Federal income tax expense (benefit) | (14) | (488) | 86 | 82 | 176 | 65 | 83 | 97 | (332) | 420 | (56) | ||||
Net income (loss) | 105 | (2,289) | 443 | 458 | 816 | 369 | 466 | 457 | $ 900 | $ 923 | $ (1,389) | $ 1,292 | (1,285) | 2,109 | 591 |
Other comprehensive income (loss), net of tax: | |||||||||||||||
Unrealized investment gains (losses) | (13,613) | (2,480) | 3,177 | ||||||||||||
Funded status of employee benefit plans | (4) | 3 | 8 | ||||||||||||
Other comprehensive income (loss), net of tax | 960 | (4,140) | (5,446) | (4,991) | (400) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | 3,185 | ||||
Comprehensive income (loss) | $ 1,065 | $ (6,429) | $ (5,003) | $ (4,533) | $ 416 | $ (248) | $ 2,187 | $ (2,724) | $ (14,902) | $ (368) | $ 3,776 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholder's Equity - USD ($) $ in Millions | Common Stock [Member] | Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2019 | $ 11,312 | $ (201) | $ 4,437 | $ 5,836 | |
Capital contribution from Lincoln National Corporation | 510 | ||||
Stock compensation/issued for benefit plans | 31 | ||||
Net income (loss) | 591 | $ 591 | |||
Dividends paid to Lincoln National Corporation | (660) | ||||
Other comprehensive income (loss), net of tax | 3,185 | 3,185 | |||
Balance at Dec. 31, 2020 | 11,853 | 4,167 | 9,021 | 25,041 | |
Capital contribution from Lincoln National Corporation | 65 | ||||
Stock compensation/issued for benefit plans | 1 | ||||
Net income (loss) | 457 | 457 | |||
Dividends paid to Lincoln National Corporation | (180) | ||||
Other comprehensive income (loss), net of tax | (3,181) | (3,181) | |||
Balance at Mar. 31, 2021 | 11,919 | 4,444 | 5,840 | 22,203 | |
Balance at Dec. 31, 2020 | 11,853 | 4,167 | 9,021 | 25,041 | |
Net income (loss) | 923 | ||||
Balance at Jun. 30, 2021 | 11,930 | 4,595 | 7,561 | 24,086 | |
Balance at Dec. 31, 2020 | 11,853 | 4,167 | 9,021 | 25,041 | |
Net income (loss) | 1,292 | ||||
Balance at Sep. 30, 2021 | 11,940 | 4,664 | 6,944 | 23,548 | |
Balance at Dec. 31, 2020 | 11,853 | 4,167 | 9,021 | 25,041 | |
Capital contribution from Lincoln National Corporation | 65 | ||||
Stock compensation/issued for benefit plans | 32 | ||||
Net income (loss) | 2,109 | 2,109 | |||
Dividends paid to Lincoln National Corporation | (1,910) | ||||
Other comprehensive income (loss), net of tax | (2,477) | (2,477) | |||
Balance at Dec. 31, 2021 | 11,950 | 4,366 | 6,544 | 22,860 | |
Balance at Mar. 31, 2021 | 11,919 | 4,444 | 5,840 | 22,203 | |
Stock compensation/issued for benefit plans | 11 | ||||
Net income (loss) | 466 | 466 | |||
Dividends paid to Lincoln National Corporation | (315) | ||||
Other comprehensive income (loss), net of tax | 1,721 | 1,721 | |||
Balance at Jun. 30, 2021 | 11,930 | 4,595 | 7,561 | 24,086 | |
Stock compensation/issued for benefit plans | 10 | ||||
Net income (loss) | 369 | 369 | |||
Dividends paid to Lincoln National Corporation | (300) | ||||
Other comprehensive income (loss), net of tax | (617) | (617) | |||
Balance at Sep. 30, 2021 | 11,940 | 4,664 | 6,944 | 23,548 | |
Net income (loss) | 816 | ||||
Other comprehensive income (loss), net of tax | (400) | ||||
Balance at Dec. 31, 2021 | 11,950 | 4,366 | 6,544 | 22,860 | |
Stock compensation/issued for benefit plans | (2) | ||||
Net income (loss) | 458 | 458 | |||
Dividends paid to Lincoln National Corporation | (25) | ||||
Other comprehensive income (loss), net of tax | (4,991) | (4,991) | |||
Balance at Mar. 31, 2022 | 11,948 | 4,799 | 1,553 | 18,300 | |
Balance at Dec. 31, 2021 | 11,950 | 4,366 | 6,544 | 22,860 | |
Net income (loss) | 900 | ||||
Balance at Jun. 30, 2022 | 12,020 | 4,962 | (3,893) | 13,089 | |
Balance at Dec. 31, 2021 | 11,950 | 4,366 | 6,544 | 22,860 | |
Net income (loss) | (1,389) | ||||
Balance at Sep. 30, 2022 | 12,114 | 2,398 | (8,033) | 6,479 | |
Balance at Dec. 31, 2021 | 11,950 | 4,366 | 6,544 | 22,860 | |
Capital contribution from Lincoln National Corporation | 925 | ||||
Stock compensation/issued for benefit plans | 28 | ||||
Net income (loss) | (1,285) | (1,285) | |||
Dividends paid to Lincoln National Corporation | (645) | ||||
Other comprehensive income (loss), net of tax | (13,617) | (13,617) | |||
Balance at Dec. 31, 2022 | 12,903 | 2,436 | (7,073) | 8,266 | |
Balance at Mar. 31, 2022 | 11,948 | 4,799 | 1,553 | 18,300 | |
Capital contribution from Lincoln National Corporation | 65 | ||||
Stock compensation/issued for benefit plans | 7 | ||||
Net income (loss) | 443 | 443 | |||
Dividends paid to Lincoln National Corporation | (280) | ||||
Other comprehensive income (loss), net of tax | (5,446) | (5,446) | |||
Balance at Jun. 30, 2022 | 12,020 | 4,962 | (3,893) | 13,089 | |
Capital contribution from Lincoln National Corporation | 80 | ||||
Stock compensation/issued for benefit plans | 14 | ||||
Net income (loss) | (2,289) | (2,289) | |||
Dividends paid to Lincoln National Corporation | (275) | ||||
Other comprehensive income (loss), net of tax | (4,140) | (4,140) | |||
Balance at Sep. 30, 2022 | 12,114 | 2,398 | (8,033) | 6,479 | |
Net income (loss) | 105 | ||||
Other comprehensive income (loss), net of tax | 960 | ||||
Balance at Dec. 31, 2022 | $ 12,903 | $ 2,436 | $ (7,073) | $ 8,266 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||||||||
Net income (loss) | $ 458 | $ 457 | $ 900 | $ 923 | $ (1,389) | $ 1,292 | $ (1,285) | $ 2,109 | $ 591 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||
Realized (gain) loss | (257) | (212) | (327) | (43) | (338) | (11) | (214) | (711) | 526 |
Sales and maturities (purchases) of trading securities, net | (189) | 118 | 109 | 230 | 164 | 239 | 301 | (87) | 253 |
Amortization of deferred gain (loss) on business sold through reinsurance | (10) | (7) | (20) | (14) | (29) | (22) | (37) | (32) | (33) |
Impairment of intangibles | 634 | 634 | |||||||
Change in: | |||||||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | 24 | 50 | (10) | 106 | 3 | 325 | 45 | 289 | 68 |
Premiums and fees receivable | (91) | (163) | (71) | (98) | (2) | (99) | (53) | (95) | (20) |
Accrued investment income | (44) | (51) | (40) | (11) | (77) | (44) | (41) | 8 | (88) |
Insurance liabilities and reinsurance-related balances | 299 | (263) | 81 | 5 | 2,311 | (301) | 1,055 | (584) | 392 |
Accrued expenses | (229) | (35) | (340) | 35 | (375) | 200 | (98) | 370 | (21) |
Federal income tax accruals | 82 | 97 | 192 | 167 | (308) | 233 | (271) | 391 | (134) |
Cash management agreement | 872 | (182) | 2,427 | (1,223) | 2,803 | (1,367) | 3,730 | (1,286) | (1,341) |
Other | (3) | (203) | 224 | (219) | 478 | (226) | 527 | (163) | 92 |
Net cash provided by (used in) operating activities | 912 | (394) | 3,125 | (142) | 3,875 | 219 | 4,293 | 209 | 285 |
Cash Flows from Investing Activities | |||||||||
Purchases of available-for-sale securities and equity securities | (3,910) | (3,803) | (8,090) | (8,212) | (11,961) | (11,776) | (14,768) | (16,856) | (16,149) |
Sales of available-for-sale securities and equity securities | 105 | 592 | 236 | 1,277 | 1,231 | 1,441 | 2,347 | 2,341 | 1,214 |
Maturities of available-for-sale securities | 1,566 | 1,862 | 3,165 | 4,570 | 4,339 | 6,897 | 5,487 | 9,417 | 5,180 |
Purchases of other investments | (631) | (754) | (395) | ||||||
Sales or maturities of other investments | 441 | 377 | 171 | ||||||
Purchases of alternative investments | (141) | (163) | (300) | (360) | (453) | (504) | |||
Sales and repayments of alternative investments | 130 | 54 | 181 | 128 | 380 | 258 | |||
Issuance of mortgage loans on real estate | (539) | (868) | (1,366) | (1,609) | (1,924) | (2,188) | (2,507) | (3,057) | (1,790) |
Repayment and maturities of mortgage loans on real estate | 716 | 398 | 1,422 | 846 | 1,866 | 1,267 | 2,247 | 1,873 | 1,133 |
Repayment (issuance) of policy loans, net | 25 | (76) | (6) | 16 | 16 | 47 | 4 | 61 | 49 |
Net change in collateral on investments, derivatives and related settlements | (242) | 987 | (2,322) | 1,704 | (3,667) | 2,132 | (4,653) | 3,095 | 1,775 |
Other | (76) | (30) | (93) | (67) | (83) | (181) | (40) | (253) | (149) |
Net cash provided by (used in) investing activities | (2,366) | (1,047) | (7,173) | (1,707) | (10,256) | (2,607) | (12,073) | (3,756) | (8,961) |
Cash Flows from Financing Activities | |||||||||
Capital contribution from Lincoln National Corporation | 65 | 65 | 65 | 145 | 65 | 925 | 65 | 510 | |
Payment of long-term debt, including current maturities | (60) | (40) | (60) | (40) | (60) | (40) | (60) | (30) | |
Issuance of long-term debt, net of issuance costs | 30 | ||||||||
Issuance (payment) of short-term debt | (347) | 71 | (385) | (40) | (313) | (14) | (522) | 587 | (112) |
Payment related to sale-leaseback transactions | (4) | (47) | (52) | (70) | (59) | (47) | |||
Proceeds from certain financing arrangements | 53 | 50 | 53 | 50 | 186 | 159 | 109 | ||
Deposits of fixed account values, including the fixed portion of variable | 3,041 | 3,136 | 6,892 | 6,370 | 11,049 | 9,138 | 15,212 | 12,626 | 14,009 |
Withdrawals of fixed account values, including the fixed portion of variable | (1,873) | (1,764) | (3,334) | (3,260) | (4,970) | (4,935) | (6,880) | (6,522) | (6,069) |
Transfers from (to) separate accounts, net | 70 | (130) | 116 | (255) | 71 | (254) | (195) | (397) | 528 |
Common stock issued for benefit plans | (17) | (10) | (21) | (11) | (21) | (12) | (21) | (13) | (9) |
Dividends paid to Lincoln National Corporation | (25) | (180) | (305) | (495) | (580) | (795) | (645) | (1,910) | (660) |
Other | (63) | (63) | (1) | (63) | (2) | (60) | |||
Net cash provided by (used in) financing activities | 845 | 1,065 | 2,994 | 2,301 | 5,341 | 3,120 | 7,948 | 4,416 | 8,259 |
Net increase (decrease) in cash, invested cash and restricted cash | (609) | (376) | (1,054) | 452 | (1,040) | 732 | 168 | 869 | (417) |
Cash, invested cash and restricted cash as of beginning-of-year | 2,331 | 1,462 | 2,331 | 1,462 | 2,331 | 1,462 | 2,331 | 1,462 | 1,879 |
Cash, invested cash and restricted cash as of end-of-period | $ 1,722 | $ 1,086 | $ 1,277 | $ 1,914 | $ 1,291 | $ 2,194 | $ 2,499 | $ 2,331 | $ 1,462 |
Nature of Operations, Basis of
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | 1. N ature of Operations, Basis of Presentation and Summary of Significant Accounting Policies Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100 % of the outstanding common stock of one insurance company subsidiary, Lincoln Life & Annuity Company of New York (“LLANY”). We also own several non-insurance companies, including Lincoln Financial Distributors, our wholesale distributor, and Lincoln Financial Advisors Corporation, part of LNC’s retail distributor, Lincoln Financial Network. LNL’s principal businesses consist of underwriting life insurance, annuities and deposit-type contracts through multiple distribution channels. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 21 for additional information. Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. Restatement of Previously Issued Consolidated Financial Statements We have restated herein our audited consolidated financial statements for the years ended December 31, 2022, and December 31, 2021. We have also restated interim financial statement periods for the quarters of 2022 and 2021 and restated impacted amounts within the accompanying notes to the consolidated financial statements. Restatement Background Previously, we had entered into a block reinsurance agreement with Resolution Life to reinsure approximately $ 9.4 billion of in-force executive benefit and universal life reserves. A portion of the transaction was structured as coinsurance, and we paid as consideration investments with a book value of approximately $ 4.6 billion and a fair value of approximately $ 5.2 billion as of October 1, 2021, triggering a realized gain of $ 635 million. This contributed to a total deferred gain of $ 797 million. At the time of the transaction, we concluded that the $ 635 million realized gain would be deferred and amortized into income over the benefit period of the reinsurance treaty. The Company’s management has concluded that a gain or loss amount pertaining to the transfer of investments to the assuming company in a coinsurance transaction should be recorded as a realized gain or loss at the time of the transfer. As a result, it was determined that the $ 635 million deferred gain pertaining to the sale of investments should have been recognized immediately in the fourth quarter of 2021 when the investments were transferred to Resolution Life. This misstatement is described in more detail in “Description of Misstatements – Misstatement Associated with the Coinsurance Reinsurance Transaction” below. As part of the restatement, we also recorded adjustments to correct for previously identified other immaterial misstatements in the impacted periods that are described in more detail in “Description of Misstatements – Other Immaterial Misstatements” below. Accordingly, we have restated herein the consolidated financial statements for the years ended December 31, 2022 and December 31, 2021, in accordance with Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. The unaudited restated interim financial information for the quarterly periods in 2022 and 2021 is included in Note 24. The categories of misstatements and their impact on the previously issued consolidated financial statements are described in more detail below. Description of Misstatements Misstatement Associated with the Coinsurance Reinsurance Transaction We recorded adjustments to recognize the realized gain related to the transaction through net income in 2021 instead of deferring and amortizing this gain into net income. These adjustments, which are discussed below, are reflected in the restatement tables below and in Note 24. For the year ended December 31, 2021, the correction of the misstatement resulted in a $ 635 million increase to realized gain (loss), an $ 8 million decrease to amortization of deferred gain on business sold through reinsurance, a $ 4 million increase to commissions and other expenses related to state income taxes associated with the realized gain and a $ 131 million increase to federal income tax expense on our Consolidated Statements of Comprehensive Income (Loss). Additionally, the correction of the misstatement resulted in a $ 492 million decrease to other liabilities and a $ 492 million increase to retained earnings on our Consolidated Balance Sheets as of December 31, 2021. For the year ended December 31, 2022, the correction of the misstatement resulted in a $ 32 million decrease to amortization of deferred gain on business sold through reinsurance on our Consolidated Statements of Comprehensive Income (Loss). Additionally, the correction of the misstatement resulted in a $ 467 million increase to retained earnings on our Consolidated Balance Sheets as of December 31, 2022. Other Immaterial Misstatements As part of the restatement, we made corrections to previously identified errors that the Company determined to be immaterial, both individually and in the aggregate (the “Other Adjustments”) for the years ended December 31, 2022, and December 31, 2021. The Other Adjustments resulted in an increase of $ 16 million to income (loss) before taxes and a decrease of $ 16 million to income (loss) before taxes for the years ended December 31, 2022, and December 31, 2021, respectively. The Other Adjustments included adjustments and reclassifications on our Consolidated Balance Sheets as of December 31, 2022, and December 31, 2021, that had no impact on stockholder’s equity. We reclassified derivative investments that resulted in a decrease to derivative investments of $ 142 million, a decrease to other assets of $ 70 million and a decrease to other liabilities of $ 212 million as of December 31, 2022. We reclassified derivative investments that resulted in a decrease to other assets of $ 760 million, an increase to derivative investments of $ 260 million and a decrease to other liabilities of $ 500 million as of December 31, 2021. The combined impacts of the correction of the misstatement associated with the coinsurance reinsurance transaction and the Other Adjustments are reflected in the “restatement impacts” column of the restatement tables below and in Note 24. Description of Restatement Tables The following tables present the amounts previously reported and a reconciliation to the restated amounts reported on the restated Consolidated Balance Sheets as of December 31, 2022, and December 31, 2021, and the restated Consolidated Statements of Comprehensive Income (Loss), the restated Consolidated Statements of Stockholder’s Equity and the restated Consolidated Statements of Cash Flows for the years ended December 31, 2022, and December 31, 2021. The amounts as previously reported for the years ended December 31, 2022, and December 31, 2021, were derived from our Annual Report on Form 10-K for the year ended December 31, 2022, originally filed on March 7, 2023. THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (in millions, except share data) As of December 31, 2021 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2021 - $ 104,491 ; allowance for credit losses: 2021 - $ 19 ) $ 117,511 $ ( 35 ) $ 117,476 Trading securities 4,427 ( 22 ) 4,405 Equity securities 314 57 371 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2021 - $ 739 ) 17,893 - 17,893 Policy loans 2,349 - 2,349 Derivative investments 5,437 260 5,697 Other investments 3,449 ( 4 ) 3,445 Total investments 151,380 256 151,636 Cash and invested cash 2,331 - 2,331 Deferred acquisition costs and value of business acquired 5,985 1 5,986 Accrued investment income 1,157 - 1,157 Reinsurance recoverables, net of allowance for credit losses 22,755 - 22,755 Goodwill 1,778 - 1,778 Other assets 24,046 ( 754 ) 23,292 Separate account assets 182,583 - 182,583 Total assets $ 392,015 $ ( 497 ) $ 391,518 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 40,416 $ - $ 40,416 Other contract holder funds 111,174 9 111,183 Short-term debt 1,084 - 1,084 Long-term debt 2,334 - 2,334 Payables for collateral on investments 8,936 - 8,936 Other liabilities 23,108 ( 986 ) 22,122 Separate account liabilities 182,583 - 182,583 Total liabilities 369,635 ( 977 ) 368,658 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,950 - 11,950 Retained earnings 3,886 480 4,366 Accumulated other comprehensive income (loss) 6,544 - 6,544 Total stockholder’s equity 22,380 480 22,860 Total liabilities and stockholder’s equity $ 392,015 $ ( 497 ) $ 391,518 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (in millions, except share data) As of December 31, 2022 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $ 110,944 ; allowance for credit losses: 2022 - $ 21 ) $ 99,465 $ - $ 99,465 Trading securities 3,446 - 3,446 Equity securities 427 - 427 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $ 487 ) 18,211 - 18,211 Policy loans 2,345 - 2,345 Derivative investments 3,662 ( 143 ) 3,519 Other investments 3,577 - 3,577 Total investments 131,133 ( 143 ) 130,990 Cash and invested cash 2,499 - 2,499 Deferred acquisition costs and value of business acquired 13,615 - 13,615 Accrued investment income 1,234 - 1,234 Reinsurance recoverables, net of allowance for credit losses 23,910 - 23,910 Goodwill 1,144 - 1,144 Other assets 21,523 ( 185 ) 21,338 Separate account assets 143,536 - 143,536 Total assets $ 338,594 $ ( 328 ) $ 338,266 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 41,598 $ - $ 41,598 Other contract holder funds 120,360 - 120,360 Short-term debt 562 - 562 Long-term debt 2,269 - 2,269 Payables for collateral on investments 6,638 - 6,638 Other liabilities 15,833 ( 796 ) 15,037 Separate account liabilities 143,536 - 143,536 Total liabilities 330,796 ( 796 ) 330,000 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 12,903 - 12,903 Retained earnings 1,968 468 2,436 Accumulated other comprehensive income (loss) ( 7,073 ) - ( 7,073 ) Total stockholder’s equity 7,798 468 8,266 Total liabilities and stockholder’s equity $ 338,594 $ ( 328 ) $ 338,266 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) For the Year Ended December 31, 2021 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 5,359 $ - $ 5,359 Fee income 6,612 18 6,630 Net investment income 5,844 ( 5 ) 5,839 Realized gain (loss) 89 622 711 Amortization of deferred gain on business sold through reinsurance 40 ( 8 ) 32 Other revenues 657 - 657 Total revenues 18,601 627 19,228 Expenses Interest credited 2,893 18 2,911 Benefits 8,039 - 8,039 Commissions and other expenses 5,546 2 5,548 Interest and debt expense 114 - 114 Spark program expense 87 - 87 Total expenses 16,679 20 16,699 Income (loss) before taxes 1,922 607 2,529 Federal income tax expense (benefit) 293 127 420 Net income (loss) 1,629 480 2,109 Other comprehensive income (loss), net of tax: Unrealized investment gains (losses) ( 2,480 ) - ( 2,480 ) Funded status of employee benefit plans 3 - 3 Total other comprehensive income (loss), net of tax ( 2,477 ) - ( 2,477 ) Comprehensive income (loss) $ ( 848 ) $ 480 $ ( 368 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) For the Year Ended December 31, 2022 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 5,841 $ - $ 5,841 Fee income 5,783 - 5,783 Net investment income 5,270 4 5,274 Realized gain (loss) 201 13 214 Amortization of deferred gain on business sold through reinsurance 69 ( 32 ) 37 Other revenues 621 - 621 Total revenues 17,785 ( 15 ) 17,770 Expenses Interest credited 2,849 - 2,849 Benefits 10,801 - 10,801 Commissions and other expenses 4,799 - 4,799 Interest and debt expense 137 - 137 Spark program expense 167 - 167 Impairment of intangibles 634 - 634 Total expenses 19,387 - 19,387 Income (loss) before taxes ( 1,602 ) ( 15 ) ( 1,617 ) Federal income tax expense (benefit) ( 329 ) ( 3 ) ( 332 ) Net income (loss) ( 1,273 ) ( 12 ) ( 1,285 ) Other comprehensive income (loss), net of tax: Unrealized investment gains (losses) ( 13,613 ) - ( 13,613 ) Funded status of employee benefit plans ( 4 ) - ( 4 ) Total other comprehensive income (loss), net of tax ( 13,617 ) - ( 13,617 ) Comprehensive income (loss) $ ( 14,890 ) $ ( 12 ) $ ( 14,902 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY (in millions) For the Year Ended December 31, 2021 As Previously Restatement As Reported Impacts Restated Common Stock Balance as of beginning-of-year $ 11,853 $ - $ 11,853 Capital contribution from Lincoln National Corporation 65 - 65 Stock compensation/issued for benefit plans 32 - 32 Balance as of end-of-year 11,950 - 11,950 Retained Earnings Balance as of beginning-of-year 4,167 - 4,167 Net income (loss) 1,629 480 2,109 Dividends paid to Lincoln National Corporation ( 1,910 ) - ( 1,910 ) Balance as of end-of-year 3,886 480 4,366 Accumulated Other Comprehensive Income (Loss) Balance as of beginning-of-year 9,021 - 9,021 Other comprehensive income (loss), net of tax ( 2,477 ) - ( 2,477 ) Balance as of end-of-year 6,544 - 6,544 Total stockholder’s equity as of end-of-year $ 22,380 $ 480 $ 22,860 For the Year Ended December 31, 2022 As Previously Restatement As Reported Impacts Restated Common Stock Balance as of beginning-of-year $ 11,950 $ - $ 11,950 Capital contribution from Lincoln National Corporation 925 - 925 Stock compensation/issued for benefit plans 28 - 28 Balance as of end-of-year 12,903 - 12,903 Retained Earnings Balance as of beginning-of-year 3,886 480 4,366 Net income (loss) ( 1,273 ) ( 12 ) ( 1,285 ) Dividends paid to Lincoln National Corporation ( 645 ) - ( 645 ) Balance as of end-of-year 1,968 468 2,436 Accumulated Other Comprehensive Income (Loss) Balance as of beginning-of-year 6,544 - 6,544 Other comprehensive income (loss), net of tax ( 13,617 ) - ( 13,617 ) Balance as of end-of-year ( 7,073 ) - ( 7,073 ) Total stockholder’s equity as of end-of-year $ 7,798 $ 468 $ 8,266 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) For the Year Ended December 31, 2021 As Previously Restatement As Reported Impacts Restated Cash Flows from Operating Activities Net income (loss) $ 1,629 $ 480 $ 2,109 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss ( 89 ) ( 622 ) ( 711 ) Sales and maturities (purchases) of trading securities, net ( 108 ) 21 ( 87 ) Amortization of deferred gain (loss) on business sold through reinsurance ( 40 ) 8 ( 32 ) Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization 292 ( 3 ) 289 Premiums and fees receivable ( 95 ) - ( 95 ) Accrued investment income 8 - 8 Insurance liabilities and reinsurance-related balances ( 585 ) 1 ( 584 ) Accrued expenses 367 3 370 Federal income tax accruals 264 127 391 Cash management agreement ( 1,286 ) - ( 1,286 ) Other ( 165 ) 2 ( 163 ) Net cash provided by (used in) operating activities 192 17 209 Cash Flows from Investing Activities Purchases of available-for-sale securities and equity securities ( 16,834 ) ( 22 ) ( 16,856 ) Sales of available-for-sale securities and equity securities 2,341 - 2,341 Maturities of available-for-sale securities 9,417 - 9,417 Purchases of alternative investments ( 754 ) - ( 754 ) Sales and repayments of alternative investments 377 - 377 Issuance of mortgage loans on real estate ( 3,062 ) 5 ( 3,057 ) Repayment and maturities of mortgage loans on real estate 1,873 - 1,873 Repayment (issuance) of policy loans, net 61 - 61 Net change in collateral on investments, derivatives and related settlements 3,095 - 3,095 Other ( 253 ) - ( 253 ) Net cash provided by (used in) investing activities ( 3,739 ) ( 17 ) ( 3,756 ) Cash Flows from Financing Activities Capital contribution from Lincoln National Corporation 65 - 65 Payment of long-term debt, including current maturities ( 60 ) - ( 60 ) Issuance (payment) of short-term debt 587 - 587 Payment related to sale-leaseback transactions ( 59 ) - ( 59 ) Proceeds from certain financing arrangements 159 - 159 Deposits of fixed account values, including the fixed portion of variable 12,622 4 12,626 Withdrawals of fixed account values, including the fixed portion of variable ( 6,575 ) 53 ( 6,522 ) Transfers from (to) separate accounts, net ( 340 ) ( 57 ) ( 397 ) Common stock issued for benefit plans ( 13 ) - ( 13 ) Dividends paid to Lincoln National Corporation ( 1,910 ) - ( 1,910 ) Other ( 60 ) - ( 60 ) Net cash provided by (used in) financing activities 4,416 - 4,416 Net increase (decrease) in cash, invested cash and restricted cash 869 - 869 Cash, invested cash and restricted cash as of beginning-of-year 1,462 - 1,462 Cash, invested cash and restricted cash as of end-of-year $ 2,331 $ - $ 2,331 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) For the Year Ended December 31, 2022 As Previously Restatement As Reported Impacts Restated Cash Flows from Operating Activities Net income (loss) $ ( 1,273 ) $ ( 12 ) $ ( 1,285 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss ( 201 ) ( 13 ) ( 214 ) Sales and maturities (purchases) of trading securities, net 301 - 301 Amortization of deferred gain (loss) on business sold through reinsurance ( 69 ) 32 ( 37 ) Impairment of intangibles 634 - 634 Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization 42 3 45 Premiums and fees receivable ( 53 ) - ( 53 ) Accrued investment income ( 41 ) - ( 41 ) Insurance liabilities and reinsurance-related balances 1,055 - 1,055 Accrued expenses ( 98 ) - ( 98 ) Federal income tax accruals ( 268 ) ( 3 ) ( 271 ) Cash management agreement 3,730 - 3,730 Other 531 ( 4 ) 527 Net cash provided by (used in) operating activities 4,290 3 4,293 Cash Flows from Investing Activities Purchases of available-for-sale securities and equity securities ( 14,768 ) - ( 14,768 ) Sales of available-for-sale securities and equity securities 2,347 - 2,347 Maturities of available-for-sale securities 5,487 - 5,487 Purchases of alternative investments ( 631 ) - ( 631 ) Sales and repayments of alternative investments 441 - 441 Issuance of mortgage loans on real estate ( 2,503 ) ( 4 ) ( 2,507 ) Repayment and maturities of mortgage loans on real estate 2,247 - 2,247 Repayment (issuance) of policy loans, net 4 - 4 Net change in collateral on investments, derivatives and related settlements ( 4,654 ) 1 ( 4,653 ) Other ( 40 ) - ( 40 ) Net cash provided by (used in) investing activities ( 12,070 ) ( 3 ) ( 12,073 ) Cash Flows from Financing Activities Capital contribution from Lincoln National Corporation 925 - 925 Payment of long-term debt, including current maturities ( 40 ) - ( 40 ) Issuance (payment) of short-term debt ( 522 ) - ( 522 ) Payment related to sale-leaseback transactions ( 70 ) - ( 70 ) Proceeds from certain financing arrangements 186 - 186 Deposits of fixed account values, including the fixed portion of variable 15,212 - 15,212 Withdrawals of fixed account values, including the fixed portion of variable ( 6,880 ) - ( 6,880 ) Transfers from (to) separate accounts, net ( 195 ) - ( 195 ) Common stock issued for benefit plans ( 21 ) - ( 21 ) Dividends paid to Lincoln National Corporation ( 645 ) - ( 645 ) Other ( 2 ) - ( 2 ) Net cash provided by (used in) financing activities 7,948 - 7,948 Net increase (decrease) in cash, invested cash and restricted cash 168 - 168 Cash, invested cash and restricted cash as of beginning-of-year 2,331 - 2,331 Cash, invested cash and restricted cash as of end-of-year $ 2,499 $ - $ 2,499 Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNL and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. We use the equity method of accounting to recognize all of our investments in limited liability partnerships. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in the consolidated financial statements. Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. In applying these estimates and assumptions, management makes subjective and complex judgments that frequently require assumptions about matters that are uncertain and inherently subject to change, including matters related to or impacted by the COVID-19 pandemic. Actual results could differ from these estimates and assumptions. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain financial assets, derivatives, allowances for credit losses, deferred acquisition costs (“DAC”) , value of business acquired (“VOBA”) , deferred sales inducements (“DSI”), goodwill and other intangibles, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”) , pension plans, stock-based incentive compensation, income taxes including the recoverability of our deferred tax assets, and the potential effects of resolving litigated matters. Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in the consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. Fair Value Measurement 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 (“NPR”), which would include our own credit risk. Our estimate of 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 in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our 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 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the 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. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. Fixed Maturity Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available-for-sale (“AFS”) consist of fixed maturity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI , future contract benefits, other contract holder funds and deferred income taxes. We measure the fair value of our securities classified as fixed maturity AFS 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 security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our fixed maturity AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all fixed maturity AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our fixed maturity AFS securities discussed above: Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”) and collateralized loan obligations (“CLOs”). State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. Hybrid and redeemable preferred securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred securities. In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. Fixed Maturity AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require a credit loss allowance. For our debt securities, we generally consider the following |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2022 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards The following table provides a description of our adoption of new Accounting Standards Updates (“ASUs”) issued by the FASB and the impact of the adoption on the consolidated financial statements. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount. Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2020-04, Reference Rate Reform (Topic 848) and related amendments The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions impacted by reference rate reform. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. Additionally, changes to the critical terms of a hedging relationship affected by reference rate reform will not require entities to de-designate the relationship if certain requirements are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, with certain exceptions. The amendments are effective for contract modifications made between March 12, 2020, and December 31, 2024. March 12, 2020 through December 31, 2024 This standard may be elected and applied prospectively as reference rate reform unfolds. We have elected practical expedients to maintain hedge accounting for certain derivatives. We will continue to evaluate our options under this guidance as our reference rate reform adoption process continues. This ASU has not had a material impact to our consolidated financial condition and results of operations, but we will continue to evaluate those impacts as our transition progresses. Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments These amendments make changes to the accounting and reporting for long-duration contracts issued by an insurance entity that will significantly change how insurers account for long-duration contracts, including how they measure, recognize and make disclosures about insurance liabilities and DAC. Under this ASU, insurers will be required to review cash flow assumptions at least annually and update them if necessary. They also will have to make quarterly updates to the discount rate assumptions they use to measure the liability for future policyholder benefits. The ASU creates a new category of market risk benefits (i.e., features that protect the contract holder from capital market risk and expose the insurer to that risk) that insurers will have to measure at fair value. The ASU provides various transition methods by topic that entities may elect upon adoption. The ASU is effective January 1, 2023, and early adoption is permitted. January 1, 2023 We will adopt this ASU effective January 1, 2023, with a transition date of January 1, 2021, using a modified retrospective approach, except for market risk benefits in which we will apply a full retrospective transition approach. We currently estimate that, at the transition date of January 1, 2021, the adoption of this standard and related amendments will result in an increase to previously reported stockholder’s equity in an after-tax range of approximately $ 2.7 billion to $ 3.2 billion, including a decrease to previously reported retained earnings in an after-tax range of approximately $ 1.6 billion to $ 2.1 billion, and an increase to previously reported AOCI in an after-tax range of approximately $ 4.6 billion to $ 5.1 billion. The remeasurement of certain current benefits (e.g., guaranteed death benefits on variable annuities) to fair valued market risk benefits, excluding the portion attributable to NPR, is expected to have the most significant impact to retained earnings. The most significant drivers of the cumulative adjustment to AOCI are expected to be the NPR associated with the fair valued market risk benefits, the elimination of DAC and DAC-like intangible balances recorded in AOCI related to changes in unrealized gains and losses on investments, and the changes in the discount rate assumption since the inception of the contracts to reflect the changes in the upper-medium-grade fixed-income instrument (single-A) interest rate for the liability for future policy benefits associated with certain long-duration contracts. The effect this standard adoption has on stockholder’s equity will be impacted by economic conditions, including fluctuations in both the capital markets and interest rates, as well as certain actuarial assumptions. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 3. Variable Int erest Entities Unconsolidated VIEs Reinsurance-Related Notes Effective October 1, 2017, our captive reinsurance subsidiary, the Lincoln Reinsurance Company of Vermont VI, restructured the $ 275 million, long-term surplus note which was originally issued to a non-affiliated VIE in October 2015 in exchange for two corporate bond AFS securities of like principal and duration. The activities of the VIE are primarily to acquire, hold and issue notes and loans and to pay and collect interest on the notes and loans. The outstanding principal balance of the long-term surplus note is variable in nature; moving concurrently with any variability in the face amount of the corporate bond AFS securities. We have concluded that we are not the primary beneficiary of the non-affiliated VIE because we do not have power over the activities that most significantly affect its economic performance. As of December 31, 2022, the principal balance of the long-term surplus note was zero and we do not currently have any exposure to this VIE. Structured Securities Through our investment activities, we make passive investments in structured securities issued by VIEs for which we are not the manager. These structured securities include our ABS, RMBS and CMBS. We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on the Consolidated Balance Sheets. For information about these structured securities, see Note 4. Limited Partnerships and Limited Liability Companies We invest in certain LPs and limited liability companies (“LLCs”) that we have concluded are VIEs. Our exposure to loss is limited to the capital we invest in the LPs and LLCs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on the Consolidated Balance Sheets and were $ 3.0 billion and $ 2.8 billion as of December 31, 2022 and 2021, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Investments | 4. Investm ents Fixed Maturity AFS Securities The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of fixed maturity AFS securities (in millions) were as follows: As of December 31, 2022 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 88,950 $ 763 $ 10,538 $ 9 $ 79,166 U.S. government bonds 377 5 31 - 351 State and municipal bonds 5,198 170 483 - 4,885 Foreign government bonds 339 17 45 - 311 RMBS 2,025 21 203 7 1,836 CMBS 1,908 3 244 - 1,667 ABS 11,791 37 925 4 10,899 Hybrid and redeemable preferred securities 356 25 30 1 350 Total fixed maturity AFS securities $ 110,944 $ 1,041 $ 12,499 $ 21 $ 99,465 As Restated As of December 31, 2021 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 86,197 $ 11,569 $ 326 $ 17 $ 97,423 U.S. government bonds 348 54 2 - 400 State and municipal bonds 5,113 1,275 11 - 6,377 Foreign government bonds 365 63 5 - 423 RMBS 2,132 178 4 1 2,305 CMBS 1,542 62 14 - 1,590 ABS 8,433 127 54 - 8,506 Hybrid and redeemable preferred securities 361 103 11 1 452 Total fixed maturity AFS securities $ 104,491 $ 13,431 $ 427 $ 19 $ 117,476 The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2022, were as follows: Amortized Fair Cost Value Due in one year or less $ 3,239 $ 3,205 Due after one year through five years 17,545 16,716 Due after five years through ten years 18,985 17,177 Due after ten years 55,451 47,965 Subtotal 95,220 85,063 Structured securities (RMBS, CMBS, ABS) 15,724 14,402 Total fixed maturity AFS securities $ 110,944 $ 99,465 Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: As of December 31, 2022 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 57,656 $ 8,684 $ 6,867 $ 1,854 $ 64,523 $ 10,538 U.S. government bonds 236 25 27 6 263 31 State and municipal bonds 1,850 414 227 69 2,077 483 Foreign government bonds 122 18 58 27 180 45 RMBS 1,337 160 191 43 1,528 203 CMBS 1,224 156 312 88 1,536 244 ABS 6,712 551 3,325 374 10,037 925 Hybrid and redeemable preferred securities 61 5 98 25 159 30 Total fixed maturity AFS securities $ 69,198 $ 10,013 $ 11,105 $ 2,486 $ 80,303 $ 12,499 Total number of fixed maturity AFS securities in an unrealized loss position 8,106 As of December 31, 2021 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 10,611 $ 230 $ 1,386 $ 96 $ 11,997 $ 326 U.S. government bonds 6 - 26 2 32 2 State and municipal bonds 498 10 19 1 517 11 Foreign government bonds 61 3 56 2 117 5 RMBS 261 3 20 1 281 4 CMBS 440 12 33 2 473 14 ABS 4,646 49 165 5 4,811 54 Hybrid and redeemable preferred securities 47 1 76 10 123 11 Total fixed maturity AFS securities $ 16,570 $ 308 $ 1,781 $ 119 $ 18,351 $ 427 Total number of fixed maturity AFS securities in an unrealized loss position 2,577 (1) As of December 31, 2022 and 2021, we recognized $ 6 million and $ 8 million of gross unrealized losses, respectively, in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of December 31, 2022 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 10,895 $ 3,514 1,489 Six months or greater, but less than nine months 4,256 2,150 640 Nine months or greater, but less than twelve months 362 243 73 Twelve months or greater 2 - 15 Total $ 15,515 $ 5,907 2,217 As of December 31, 2021 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 12 $ 3 6 Twelve months or greater 58 8 24 Total $ 70 $ 11 30 (1) We may reflect a security in more than one aging category based on various purchase dates. Our gross unrealized losses on fixed maturity AFS securities increased by $ 12.1 billion for the year ended December 31, 2022. As discussed further below, we believe the unrealized loss position as of December 31, 2022, did not require an impairment recognized in earnings as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of December 31, 2022, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities. As of December 31, 2022, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government bond securities were attributable primarily to rising interest rates and widening credit spreads since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost of each impaired security. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by S&P Global Ratings (“S&P”) or Baa3 or higher by Moody’s Investors Service (“Moody’s”)) are generally considered by the rating agencies and market participants to be low credit risk. As of December 31, 2022 and 2021, 96 % of the fair value of our corporate bond portfolio was rated investment grade. As of December 31, 2022 and 2021, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $ 3.5 billion, and a fair value of $ 3.3 billion and $ 3.7 billion, respectively. Based upon the analysis discussed above, we believe that as of December 31, 2022 and 2021, we would have recovered the amortized cost of each corporate bond. As of December 31, 2022, the unrealized losses associated with our MBS and ABS were attributable primarily to rising interest rates and widening credit spreads since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security. As of December 31, 2022, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security. Credit Loss Impairment on Fixed Maturity AFS Securities We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. See Note 1 for a detailed discussion regarding our accounting policy relating to the allowance for credit losses on our fixed maturity AFS securities. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows: For the Year Ended December 31, 2022 Corporate Bonds RMBS Other Total Balance as of beginning-of-year $ 17 $ 1 $ 1 $ 19 Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized 4 3 - 7 Additions (reductions) for securities for which credit losses were previously recognized 2 3 4 9 Reductions for securities disposed ( 2 ) - - ( 2 ) Reductions for securities charged-off ( 12 ) - - ( 12 ) Balance as of end-of-year (2) $ 9 $ 7 $ 5 $ 21 For the Year Ended December 31, 2021 Corporate Bonds RMBS Other Total Balance as of beginning-of-year $ 12 $ 1 $ - $ 13 Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized 8 - 1 9 Additions (reductions) for securities for which credit losses were previously recognized 5 - - 5 Reductions for securities disposed ( 2 ) - - ( 2 ) Reductions for securities charged-off ( 6 ) - - ( 6 ) Balance as of end-of-year (2) $ 17 $ 1 $ 1 $ 19 For the Year Ended December 31, 2020 Corporate Bonds RMBS Other Total Balance as of beginning-of-year $ - $ - $ - $ - Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized 40 1 1 42 Additions (reductions) for securities for which credit losses were previously recognized ( 1 ) - ( 1 ) ( 2 ) Reductions for securities disposed ( 15 ) - - ( 15 ) Reductions for securities charged-off ( 12 ) - - ( 12 ) Balance as of end-of-year (2) $ 12 $ 1 $ - $ 13 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of December 31, 2022, 2021 and 2020, accrued investment income on fixed maturity AFS securities totaled $ 1.1 billion, $ 944 million and $ 1.0 billion, respectively, and was excluded from the estimate of credit losses. Trading Securities Trading securities at fair value (in millions) consisted of the following: As Restated As of As of December 31, December 31, 2022 2021 Fixed maturity securities: Corporate bonds $ 2,196 $ 2,679 U.S. government bonds - 32 State and municipal bonds 21 27 Foreign government bonds 49 73 RMBS 99 95 CMBS 137 137 ABS 919 1,338 Hybrid and redeemable preferred securities 25 24 Total trading securities $ 3,446 $ 4,405 The portion of the market adjustment for trading gains and losses recognized in realized gain (loss) that relate to trading securities still held as of December 31, 2022, 2021 and 2020, was $( 628 ) million, $( 47 ) million (as restated) and $ 117 million, respectively. Mortgage Loans on Real Estate The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of December 31, 2022 As of December 31, 2021 Commercial Residential Total Commercial Residential Total Current $ 16,913 $ 1,315 $ 18,228 $ 17,068 $ 837 $ 17,905 30 to 59 days past due 19 23 42 15 21 36 60 to 89 days past due - 6 6 - 5 5 90 or more days past due - 33 33 - 29 29 Allowance for credit losses ( 83 ) ( 15 ) ( 98 ) ( 78 ) ( 17 ) ( 95 ) Unamortized premium (discount) ( 9 ) 36 27 ( 11 ) 27 16 Mark-to-market gains (losses) (1) ( 27 ) - ( 27 ) ( 3 ) - ( 3 ) Total carrying value $ 16,813 $ 1,398 $ 18,211 $ 16,991 $ 902 $ 17,893 (1) Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 20 for additional information. Our commercial mortgage loan portfolio had the largest concentrations in California, which accounted for 28 % and 26 % of commercial mortgage loans on real estate as of December 31, 2022 and 2021, respectively, and Texas, which accounted for 9 % of commercial mortgage loans on real estate as of December 31, 2022 and 2021. As of December 31, 2022, our residential mortgage loan portfolio had the largest concentrations in California and New Jersey, which accounted for 17 % and 12 % of residential mortgage loans on real estate, respectively. As of December 31, 2021, our residential mortgage loan portfolio had the largest concentrations in California and Florida, which accounted for 22 % and 14 % of residential mortgage loans on real estate, respectively. As of December 31, 2022 and 2021, we had 73 and 65 residential mortgage loans, respectively, that were either delinquent or in foreclosure. As of December 31, 2022 and 2021, we had 49 and 34 residential mortgage loans in foreclosure, respectively, with an aggregate carrying value of $ 21 million and $ 15 million, respectively. As of December 31, 2022 and 2021, there were two and four specifically identified impaired commercial mortgage loans, respectively, with an aggregate carrying value of less than $ 1 million and $ 1 million, respectively. As of December 31, 2022 and 2021, there were 37 and 50 specifically identified impaired residential mortgage loans, respectively, with an aggregate carrying value of $ 16 million and $ 22 million, respectively. Additional information related to impaired mortgage loans on real estate (in millions) was as follows: For the Years Ended December 31, 2022 2021 2020 Average aggregate carrying value for impaired mortgage loans on real estate $ 16 $ 32 $ 21 Interest income recognized on impaired mortgage loans on real estate - - - Interest income collected on impaired mortgage loans on real estate - - - The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows: As of December 31, 2022 As of December 31, 2021 Nonaccrual Nonaccrual with no with no Allowance Allowance for Credit for Credit Losses Nonaccrual Losses Nonaccrual Commercial mortgage loans on real estate $ - $ - $ - $ - Residential mortgage loans on real estate - 34 - 30 Total $ - $ 34 $ - $ 30 We use loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows: As of December 31, 2022 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2022 $ 1,769 2.06 $ 105 1.50 $ 2 1.45 $ 1,876 2021 2,335 3.05 72 1.53 - - 2,407 2020 1,280 2.99 17 1.58 - - 1,297 2019 2,643 2.17 81 1.50 29 1.58 2,753 2018 2,222 2.17 67 1.62 - - 2,289 2017 and prior 6,170 2.44 131 1.75 - - 6,301 Total $ 16,419 $ 473 $ 31 $ 16,923 As of December 31, 2021 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2021 $ 2,361 3.05 $ 136 1.74 $ - - $ 2,497 2020 1,349 3.02 144 2.06 - - 1,493 2019 2,875 2.14 187 1.42 - - 3,062 2018 2,272 2.13 168 1.59 15 1.02 2,455 2017 1,648 2.33 149 1.74 27 0.83 1,824 2016 and prior 5,543 2.41 171 1.76 27 1.08 5,741 Total $ 16,048 $ 955 $ 69 $ 17,072 We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate . The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows: As of December 31, 2022 Performing Nonperforming Total Origination Year 2022 $ 578 $ 5 $ 583 2021 527 6 533 2020 90 3 93 2019 119 18 137 2018 65 2 67 2017 and prior - - - Total $ 1,379 $ 34 $ 1,413 As of December 31, 2021 Performing Nonperforming Total Origination Year 2021 $ 467 $ 2 $ 469 2020 129 2 131 2019 189 21 210 2018 104 5 109 2017 - - - 2016 and prior - - - Total $ 889 $ 30 $ 919 Credit Losses on Mortgage Loans on Real Estate In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. See Note 1 for a detailed discussion regarding our accounting policy relating to the allowance for credit losses on our mortgage loans on real estate. Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows: For the Year Ended December 31, 2022 Commercial Residential Total Balance as of beginning-of-year $ 78 $ 17 $ 95 Additions (reductions) from provision for credit loss expense (1) 5 ( 2 ) 3 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-year (2) $ 83 $ 15 $ 98 For the Year Ended December 31, 2021 Commercial Residential Total Balance as of beginning-of-year $ 186 $ 17 $ 203 Additions (reductions) from provision for credit loss expense (1) ( 108 ) - ( 108 ) Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-year (2) $ 78 $ 17 $ 95 For the Year Ended December 31, 2020 Commercial Residential Total Balance as of beginning-of-year $ - $ 2 $ 2 Impact of adopting new accounting standard 61 26 87 Additions (reductions) from provision for credit loss expense (1) 125 ( 11 ) 114 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-year (2) $ 186 $ 17 $ 203 (1) We did no t recognize any credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2022. We recognized $ 3 million and $( 2 ) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the years ended December 31, 2021 and 2020, respectively. (2) Accrued investment income on mortgage loans on real estate totaled $ 51 million, $ 48 million and $ 48 million as of December 31, 2022, 2021 and 2020, respectively, and was excluded from the estimate of credit losses. Alternative Investments As of December 31, 2022 and 2021, alternative investments included investments in 328 and 305 different partnerships, respectively, and represented approximately 2 % of total investments. Net Investment Income The major categories of net investment income (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows: As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Fixed maturity AFS securities $ 4,408 $ 4,242 $ 4,241 Trading securities 179 165 198 Equity securities 11 3 3 Mortgage loans on real estate 687 677 674 Policy loans 100 115 125 Cash and invested cash 12 - 13 Commercial mortgage loan prepayment and bond make-whole premiums 100 195 78 Alternative investments 96 677 218 Consent fees 8 10 5 Other investments 75 60 42 Investment income 5,676 6,144 5,597 Investment expense ( 402 ) ( 305 ) ( 333 ) Net investment income $ 5,274 $ 5,839 $ 5,264 Impairments on Fixed Maturity AFS Securities Details underlying credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows: For the Years Ended December 31, 2022 2021 2020 Credit Loss Benefit (Expense) Fixed maturity AFS securities: Corporate bonds $ ( 4 ) $ ( 10 ) $ ( 24 ) RMBS ( 6 ) - ( 1 ) ABS ( 4 ) - - Hybrid and redeemable preferred securities - ( 1 ) - Gross credit loss benefit (expense) ( 14 ) ( 11 ) ( 25 ) Associated amortization of DAC, VOBA, DSI and DFEL - - 1 Net credit loss benefit (expense) $ ( 14 ) $ ( 11 ) $ ( 24 ) Payables for Collateral on Investments The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following: As of December 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 3,210 $ 3,210 $ 5,565 $ 5,565 Securities pledged under securities lending agreements (2) 298 287 241 235 Investments pledged for FHLBI (3) 3,130 3,925 3,130 4,876 Total payables for collateral on investments $ 6,638 $ 7,422 $ 8,936 $ 10,676 (1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. This also includes interest payable on collateral. See Note 5 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102 % and 105 % of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. We have repurchase agreements through which we can obtain liquidity by pledging securities. The collateral requirements are generally 80 % to 95 % of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. As of December 31, 2022 and 2021, we were not participating in any open repurchase agreements. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Years Ended December 31, 2022 2021 2020 Collateral payable for derivative investments $ ( 2,355 ) $ 2,595 $ 1,587 Securities pledged under securities lending agreements 57 126 1 Investments pledged for FHLBI - - ( 450 ) Total increase (decrease) in payables for collateral on investments $ ( 2,298 ) $ 2,721 $ 1,138 We have elected not to offset our securities lending transactions in the consolidated financial statements. The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows: As of December 31, 2022 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 288 $ - $ - $ - $ 288 Foreign government bonds 2 - - - 2 Equity securities 8 - - - 8 Total gross secured borrowings $ 298 $ - $ - $ - $ 298 As of December 31, 2021 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 239 $ - $ - $ - $ 239 Foreign government bonds 1 - - - 1 Equity securities 1 - - - 1 Total gross secured borrowings $ 241 $ - $ - $ - $ 241 We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the consolidated financial statements. In addition, we receive securities in connection with securities borrowing agreements that we are permitted to sell or re-pledge. As of December 31, 2022, the fair value of all collateral received that we are permitted to sell or re-pledge was $ 25 million, and we had re-pledged all of this collateral to cover initial margin and over-the-counter collateral requirements on certain derivative investments. Investment Commitments As of December 31, 2022, our investment commitments were $ 2.3 billion, which included $ 1.8 billion of LPs, $ 298 million of private placement securities and $ 226 million of mortgage loans on real estate. Concentrations of Financial Instruments As of December 31, 2022, our most significant investments in one issuer were our investments in securities issued by White Chapel LLC and the Federal National Mortgage Association with a fair value of $ 1.0 billion and $ 702 million, respectively, or 1 % of total investments. As of December 31, 2021, our most significant investments in one issuer were our investments in securities issued by White Chapel LLC and the Federal Home Loan Mortgage Corporation with a fair value of $ 995 million and $ 910 million, respectively, or 1 % of total investments. These concentrations include fixed maturity AFS, trading and equity securities. As of December 31, 2022 and 2021, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $ 19.2 billion and $ 21.7 billion, respectively, or 15 % and 14 %, respectively, of total investments, and our investments in securities in the consumer non-cyclical industry with a fair value of $ 14.3 billion and $ 18.6 billion, respectively, or 11 % and 12 %, respectively, of total investments. These concentrations include fixed maturity AFS, trading and equity securities. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 5. Derivative I nstruments We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk, commodity risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies. See Note 1 for a detailed discussion of the accounting treatment for derivative instruments. See Note 20 for additional disclosures related to the fair value of our derivative instruments and Note 3 for derivative instruments related to our consolidated VIEs. Interest Rate Contracts We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: Forward-Starting Interest Rate Swaps We use forward-starting interest rate swaps designated and qualifying as cash flow hedges to hedge our exposure to interest rate fluctuations related to the forecasted purchases of certain assets. We also use forward-starting interest rate swaps to hedge the interest rate exposure within our life and annuity products. Interest Rate Cap Corridor s We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain life insurance products and annuity contracts. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor. Interest Rate Futures We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Interest Rate Swap Agreements We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products. We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond. Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed maturity securities due to interest rate risks. Reverse Treasury Locks We use reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities. Foreign Currency Contracts We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include: Currency Futures We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate. Foreign Currency Swaps We use foreign currency swaps to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange one currency for another at specified dates in the future at a specified exchange rate. We also use foreign currency swaps designated and qualifying as cash flow hedges to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. Foreign Currency Forwards We use foreign currency forwards to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency forward is a contractual agreement to exchange one currency for another at specified dates in the future at a specified current exchange rate. Equity Market Contracts We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include: Call Options Based on the S&P 500® Index and Other Indices We use call options to hedge the liability exposure on certain options in variable annuity, indexed variable annuity, fixed indexed annuity, IUL and VUL products. Our indexed annuity and indexed universal life insurance (“IUL”) contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500 Index or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years , we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Consumer Price Index Swaps We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception. Equity Futures We use equity futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Put Options We use put options to hedge the liability exposure on certain options in variable annuity, indexed variable annuity and VUL products. Put options are contracts that require counterparties to pay us at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount. Total Return Swaps We use total return swaps to hedge the liability exposure on certain options in variable annuity products and indexed variable annuity products. In addition, we use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest. Commodity Contracts We use commodity contracts to economically hedge certain investments that are closely tied to the changes in commodity values. The commodity contract is an over-the-counter contract that combines a purchase put/sold call to lock in a commodity price within a predetermined range in exchange for a net premium. Credit Contracts We use derivative instruments as part of our credit risk management strategy that are economic hedges and include: Credit Default Swaps – Buying Protection We use credit default swaps (“CDSs”) to hedge the liability exposure on certain options in variable annuity products. We buy CDSs to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. CDSs – Selling Protection We use CDSs to hedge the liability exposure on certain options in variable annuity products. We sell CDSs to offer credit protection to contract holders and investors. The CDSs hedge the contract holders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Other Derivatives Lapse Protection Rider Ceded Derivative We also have an inter-company agreement through which LNBAR, an affiliated insurer, assumes the risk under certain UL contracts for lapse protection riders (“LPR”). If the contract holder’s account value is insufficient to pay the cost of insurance charges required to keep the policy in force, and the contract holder has made the required deposits, we will be reimbursed for those charges. Embedded Derivatives We have embedded derivatives that include: GLB Reserves Embedded Derivatives Certain features of these guarantees have elements of both insurance benefits accounted for under the Financial Services – Insurance – Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB ASC (“benefit reserves”) and embedded derivatives accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative reserves”). We calculate the value of the benefit reserves and the embedded derivative reserves based on the specific characteristics of each GLB feature. We use a hedging strategy designed to mitigate the risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with GLBs offered in our variable annuity products, including products with guaranteed withdrawal benefit and guaranteed income benefit features. These GLB features are reinsured among various reinsurance counterparties on a coinsurance basis. We cede a portion of the GLB features to LNBAR, a wholly-owned subsidiary of LNC, on a funds withheld coinsurance basis. The funds withheld arrangement includes a dynamic hedging strategy designed to mitigate selected risks. Changes in the value of the hedge contracts due to changes in equity markets, interest rates and implied volatilities hedge the income statement effect of changes in embedded derivative GLB reserves assumed by LNBAR caused by those same factors. The hedge positions are rebalanced based upon changes in these factors as needed. While the hedge positions are actively managed, these hedge positions may not be totally effective in offsetting changes in the embedded derivative reserve assumed by LNBAR due to, among other things, differences in timing between when a market exposure changes and corresponding changes to the hedge positions, extreme swings in the equity markets and interest rates, market volatility, contract holder behavior, divergence between the performance of the underlying funds and the hedging indices, divergence between the actual and expected performance of the hedge instruments and our ability to purchase hedging instruments at prices consistent with our desired risk and return trade-off. However, the hedging results do not impact LNL due to a funds withheld agreement with LNBAR, which causes the financial impact of the derivatives, as well as the cash flow activity, to be reflected on LNBAR. Indexed Annuity and IUL Contracts Embedded Derivatives Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500® Index or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Reinsurance-Related Embedded Derivatives We have certain modified coinsurance and coinsurance with funds withheld reinsurance agreements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows: As Restated As of December 31, 2022 As of December 31, 2021 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1,377 $ 4 $ 232 $ 2,009 $ 98 $ 11 Foreign currency contracts (1) 4,383 643 18 3,979 283 51 Total cash flow hedges 5,760 647 250 5,988 381 62 Fair value hedges: Interest rate contracts (1) 524 2 44 526 - 210 Non-Qualifying Hedges Interest rate contracts (1) 105,977 709 935 82,786 897 176 Foreign currency contracts (1) 395 27 2 487 7 2 Equity market contracts (1) 142,653 5,135 2,035 107,151 8,490 3,909 Commodity contracts (1) 13 14 3 - - - Credit contracts (1) - - - 49 - - LPR ceded derivative (2) - 212 - - 318 - Embedded derivatives: GLB direct (3) - 1,697 - - 1,967 - GLB ceded (3) - 29 1,721 - 56 2,018 Reinsurance-related (3) - 681 - - - 578 Indexed annuity and IUL contracts (3) (4) - 525 4,783 - 528 6,131 Total derivative instruments $ 255,322 $ 9,678 $ 9,773 $ 196,987 $ 12,644 $ 13,086 (1) Reported in derivative investments and other liabilities on the Consolidated Balance Sheets. (2) Reported in other assets on the Consolidated Balance Sheets. (3) Reported in other assets and other liabilities on the Consolidated Balance Sheets. (4) Reported in future contract benefits on the Consolidated Balance Sheets. The maturity of the notional amounts of derivative instruments (in millions) was as follows: As Restated Remaining Life as of December 31, 2022 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 31,463 $ 27,958 $ 24,892 $ 20,565 $ 3,000 $ 107,878 Foreign currency contracts (2) 261 730 1,681 2,037 69 4,778 Equity market contracts 94,841 28,952 7,796 9 11,055 142,653 Commodity contracts 13 - - - - 13 Total derivative instruments with notional amounts $ 126,578 $ 57,640 $ 34,369 $ 22,611 $ 14,124 $ 255,322 (1) As of December 31, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 18, 2024 . (2) As of December 31, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061 . The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Amortized Cost of the Hedged Hedged Assets / (Liabilities) Assets / (Liabilities) As of As of As of As of December 31, December 31, December 31, December 31, 2022 2021 2022 2021 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 587 $ 764 $ 44 $ 211 The change in our unrealized gain (loss) on derivative instruments within AOCI (in millions) was as follows: For the Years Ended December 31, 2022 2021 2020 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 240 $ 42 $ 181 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts ( 336 ) 11 ( 16 ) Foreign currency contracts 182 130 93 Change in foreign currency exchange rate adjustment 312 152 ( 174 ) Change in DAC, VOBA, DSI and DFEL ( 29 ) 7 ( 23 ) Income tax benefit (expense) ( 28 ) ( 65 ) 26 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 2 3 2 Foreign currency contracts (1) 62 48 56 Foreign currency contracts (2) 39 ( 2 ) 6 Associated amortization of DAC, VOBA, DSI and DFEL ( 62 ) ( 2 ) ( 7 ) Income tax benefit (expense) ( 9 ) ( 10 ) ( 12 ) Balance as of end-of-year $ 309 $ 240 $ 42 (1) The OCI offset is reported within net investment income on the Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The effects of qualifying and non-qualifying hedges (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows: As Restated Gain (Loss) Recognized in Income For the Year Ended December 31, 2022 Realized Net Gain Investment (Loss) Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 214 $ 5,274 $ 10,801 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - ( 167 ) - Derivatives designated as hedging instruments - 167 - Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 2 - Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 39 62 - Non-Qualifying Hedges Interest rate contracts ( 2,113 ) - - Foreign currency contracts 2 - - Equity market contracts ( 2,075 ) - - Commodity contracts 11 - - Credit contracts ( 4 ) - - LPR ceded derivative - - 106 Embedded derivatives: Reinsurance-related 1,259 - - Indexed annuity and IUL contracts 1,760 - - As Restated Gain (Loss) Recognized in Income For the Year Ended December 31, 2021 Realized Net Gain Investment (Loss) Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 711 $ 5,839 $ 8,039 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - ( 60 ) - Derivatives designated as hedging instruments - 60 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 3 - Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income ( 2 ) 48 - Non-Qualifying Hedges Interest rate contracts ( 957 ) - - Foreign currency contracts ( 1 ) - - Equity market contracts 3,355 - - Credit contracts ( 1 ) - - Embedded derivatives: GLB 4 - - Reinsurance-related 280 - - Indexed annuity and IUL contracts ( 2,622 ) - - Gain (Loss) Recognized in Income For the Year Ended December 31, 2020 Realized Net Gain Investment (Loss) Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ ( 526 ) $ 5,264 $ 8,050 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 69 - Derivatives designated as hedging instruments - ( 69 ) Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 2 - Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 6 56 - Non-Qualifying Hedges Interest rate contracts 1,287 - - Foreign currency contracts ( 3 ) - - Equity market contracts 971 - - Credit contracts ( 6 ) - - Embedded derivatives: GLB 1 - - Reinsurance-related ( 241 ) - - Indexed annuity and IUL contracts ( 471 ) - - As of December 31, 2022, $ 40 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. For the years ended December 31, 2022 and 2021 , there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period. As of December 31, 2022 and 2021 , we did not have any exposure related to CDSs for which we are the seller. Credit Risk We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or NPR. The NPR is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure, less collateral held. As of December 31, 2022, the NPR adjustment was zero . The credit risk associated with such agreements is minimized by entering into agreements with financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under some ISDA agreements, we and LLANY have agreed to maintain certain financial strength or claims-paying ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. We did no t have any exposure as of December 31, 2022 or 2021. The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows: As of December 31, 2022 As of December 31, 2021 Collateral Collateral Collateral Collateral Posted by Posted by Posted by Posted by S&P Counter- LNL Counter- LNL Credit Party (Held by Party (Held by Rating of (Held by Counter- (Held by Counter- Counterparty LNL) Party) LNL) Party) AA- $ 383 $ ( 6 ) $ 2,346 $ - A+ 1,718 ( 151 ) 2,762 ( 44 ) A 1,099 - 456 - $ 3,200 $ ( 157 ) $ 5,564 $ ( 44 ) Balance Sheet Offsetting Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows: As Restated As of December 31, 2022 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 6,483 $ 2,932 $ 9,415 Gross amounts offset ( 2,964 ) - ( 2,964 ) Net amount of assets 3,519 2,932 6,451 Gross amounts not offset: Cash collateral ( 3,200 ) - ( 3,200 ) Non-cash collateral (1) ( 319 ) - ( 319 ) Net amount $ - $ 2,932 $ 2,932 Financial Liabilities Gross amount of recognized liabilities $ 304 $ 6,504 $ 6,808 Gross amounts offset ( 50 ) - ( 50 ) Net amount of liabilities 254 6,504 6,758 Gross amounts not offset: Cash collateral ( 157 ) - ( 157 ) Non-cash collateral (1) ( 46 ) - ( 46 ) Net amount $ 51 $ 6,504 $ 6,555 (1) Excludes excess non-cash collateral received of $ 1.1 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. There was no excess non-cash collateral pledged as of December 31, 2022. As Restated As of December 31, 2021 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 9,705 $ 2,551 $ 12,256 Gross amounts offset ( 4,008 ) - ( 4,008 ) Net amount of assets 5,697 2,551 8,248 Gross amounts not offset: Cash collateral ( 5,564 ) - ( 5,564 ) Non-cash collateral (1) ( 133 ) - ( 133 ) Net amount $ - $ 2,551 $ 2,551 Financial Liabilities Gross amount of recognized liabilities $ 351 $ 8,727 $ 9,078 Gross amounts offset ( 70 ) - ( 70 ) Net amount of liabilities 281 8,727 9,008 Gross amounts not offset: Cash collateral ( 44 ) - ( 44 ) Non-cash collateral (1) - - - Net amount $ 237 $ 8,727 $ 8,964 (1) Excludes excess non-cash collateral received of $ 362 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. There was no excess non-cash collateral pledged as of December 31, 2021 . |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 6. Federal Incom e Taxes The federal income tax expense (benefit) on continuing operations (in millions) was as follows: As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Current $ ( 24 ) $ 20 $ ( 59 ) Deferred ( 308 ) 400 3 Federal income tax expense (benefit) $ ( 332 ) $ 420 $ ( 56 ) A reconciliation of the effective tax rate differences (in millions) was as follows: As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Income (loss) before taxes $ ( 1,617 ) $ 2,529 $ 535 Federal statutory rate 21 % 21 % 21 % Federal income tax expense (benefit) at federal statutory rate ( 340 ) 531 112 Effect of: Tax-preferred investment income (1) ( 90 ) ( 88 ) ( 98 ) Tax credits ( 42 ) ( 26 ) ( 39 ) Excess tax benefits from stock-based compensation ( 1 ) - 2 Goodwill impairment 133 - - Tax impact associated with the Tax Cuts and Jobs Act (2) - - ( 37 ) Other items 8 3 4 Federal income tax expense (benefit) $ ( 332 ) $ 420 $ ( 56 ) Effective tax rate 21 % 17 % - 10 % (1) Relates primarily to separate account dividends eligible for the dividends-received deduction. (2) In 2020, we recognized a $ 37 million tax benefit attributable to the carry back of a 2020 net operating loss under the provisions of the Coronavirus Aid, Relief, and Economic Security Act, which provides for a five-year carryback period. As Restated As of December 31, 2022 2021 Current $ 353 $ 382 Deferred 824 ( 3,122 ) Total federal income tax asset (liability) $ 1,177 $ ( 2,740 ) Significant components of our deferred tax assets and liabilities (in millions) were as follows: As Restated As of December 31, 2022 2021 Deferred Tax Assets Future contract benefits and other contract holder funds $ 430 $ 297 Reinsurance-related embedded derivative liability - 121 Compensation and benefit plans 152 180 Intangibles 18 25 Net unrealized loss on fixed maturity AFS securities 2,161 - Net unrealized loss on trading securities 70 - Investment activity 296 - Net operating losses 278 292 Other 30 34 Total deferred tax assets $ 3,435 $ 949 Deferred Tax Liabilities DAC $ 1,827 $ 433 VOBA 275 147 Net unrealized gain on fixed maturity AFS securities - 2,706 Net unrealized gain on trading securities - 64 Investment activity - 421 Reinsurance-related embedded derivative asset 143 - Other 366 300 Total deferred tax liabilities $ 2,611 $ 4,071 Net deferred tax asset (liability) $ 824 $ ( 3,122 ) As of December 31, 2022, we have $ 1.3 billion of net operating losses to carry forward to future years. The net operating losses arose in tax years 2018 and 2022, and under the Tax Cuts and Jobs Act changes, have an unlimited carryforward period. As a result, management believes that it is more likely than not that the deferred tax asset associated with the loss carryforwards will be realized. Inclusive of the tax attribute for the net operating losses, although realization is not assured, management believes that it is more likely than not that we will realize the benefits of all our deferred tax assets, and, accordingly, no valuation allowance has been recorded. We are subject to examination by U.S. federal, state and local authorities. With few exceptions for limited scope review, we are no longer subject to U.S. federal examinations for years before 2019. In the first quarter of 2021, the Internal Revenue Service commenced an examination of our refund claims for 2014 and 2015 that is anticipated to be completed by the end of 2023. We are currently under examination by several state and local taxing jurisdictions; however, we do not expect these examinations will materially impact us. A reconciliation of the unrecognized tax benefits (in millions) was as follows: As Restated For the Years Ended December 31, 2022 2021 Balance as of beginning-of-year $ 45 $ 43 Increases for prior year tax positions - 2 Balance as of end-of-year $ 45 $ 45 As of December 31, 2022 and 2021, $ 45 million of our unrecognized tax benefits presented above, if recognized, would have affected our federal income tax expense (benefit) and our effective tax rate. We anticipate that it is reasonably possible that unrecognized tax benefits associated with separate account dividends-received deduction and tax credits will decrease by $ 8 million by the end of 2023, upon the completion of the examination of our refund claims for 2014 and 2015. We recognize interest and penalties accrued, if any, related to unrecognized tax benefits as a component of tax expense. For the years ended December 31, 2022, 2021 and 2020, we recognized no interest and penalty expense (benefit), and there was no accrued interest and penalty expense related to the unrecognized tax benefits as of December 31, 2022 and 2021. |
DAC, VOBA, DSI and DFEL
DAC, VOBA, DSI and DFEL | 12 Months Ended |
Dec. 31, 2022 | |
DAC, VOBA, DSI and DFEL [Abstract] | |
DAC, VOBA, DSI and DFEL | 7. DAC, VOBA , DSI and DFEL Changes in DAC (in millions) were as follows: As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Balance as of beginning-of-year $ 5,802 $ 5,590 $ 7,418 Cumulative effect from adoption of new accounting standard - - 5 Business acquired (sold) through reinsurance - ( 362 ) ( 26 ) Deferrals 1,372 1,364 1,427 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 772 ) ( 977 ) ( 811 ) Unlocking ( 152 ) ( 558 ) ( 211 ) Adjustment related to realized (gains) losses ( 112 ) ( 47 ) ( 35 ) Adjustment related to unrealized (gains) losses 6,648 792 ( 2,177 ) Balance as of end-of-year $ 12,786 $ 5,802 $ 5,590 Changes in VOBA (in millions) were as follows: For the Years Ended December 31, 2022 2021 2020 Balance as of beginning-of-year $ 184 $ 234 $ 327 Business acquired (sold) through reinsurance - ( 288 ) - Deferrals 2 - 3 Amortization: Amortization, excluding unlocking ( 76 ) ( 91 ) ( 107 ) Unlocking 70 ( 8 ) ( 201 ) Accretion of interest (1) 22 35 44 Adjustment related to realized (gains) losses ( 2 ) ( 3 ) - Adjustment related to unrealized (gains) losses 629 305 168 Balance as of end-of-year $ 829 $ 184 $ 234 (1) The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2 % to 6.9 %. Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2022, was as follows: 2023 $ 33 2024 35 2025 34 2026 33 2027 31 Changes in DSI (in millions) were as follows: For the Years Ended December 31, 2022 2021 2020 Balance as of beginning-of-year $ 245 $ 259 $ 281 Deferrals 6 5 7 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 14 ) ( 25 ) ( 20 ) Unlocking 2 - ( 1 ) Adjustment related to realized (gains) losses ( 1 ) ( 2 ) ( 2 ) Adjustment related to unrealized (gains) losses 20 8 ( 6 ) Balance as of end-of-year $ 258 $ 245 $ 259 Changes in DFEL (in millions) were as follows: For the Years Ended December 31, 2022 2021 2020 Balance as of beginning-of-year $ 399 $ 396 $ 646 Cumulative effect from adoption of new accounting standard - - 4 Business acquired (sold) through reinsurance - ( 290 ) - Deferrals 1,083 1,014 1,002 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 531 ) ( 593 ) ( 529 ) Unlocking ( 48 ) ( 387 ) ( 275 ) Adjustment related to realized (gains) losses ( 28 ) ( 22 ) 16 Adjustment related to unrealized (gains) losses 4,820 281 ( 468 ) Balance as of end-of-year $ 5,695 $ 399 $ 396 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance [Abstract] | |
Reinsurance | 8. Reinsura nce The following summarizes reinsurance amounts (in millions) recorded on the Consolidated Statements of Comprehensive Income (Loss), excluding amounts attributable to the indemnity reinsurance agreements with Protective and Swiss Re Life & Health America, Inc. (“Swiss Re”): As Restated For the For the For the Year Ended Year Ended Year Ended December 31, December 31, December 31, 2022 2021 2020 Direct insurance premiums and fee income $ 13,807 $ 14,028 $ 13,159 Reinsurance assumed 102 97 101 Reinsurance ceded ( 2,285 ) ( 2,136 ) ( 2,018 ) Total insurance premiums and fee income $ 11,624 $ 11,989 $ 11,242 Direct insurance benefits $ 14,982 $ 10,578 $ 10,497 Reinsurance recoveries ( 4,181 ) ( 2,539 ) ( 2,447 ) Total benefits $ 10,801 $ 8,039 $ 8,050 We and LLANY cede insurance to other companies. The portion of our life insurance and annuity risks exceeding our retention limit is reinsured with other insurers. We seek reinsurance coverage to limit our exposure to mortality losses and to enhance our capital management. Reinsurance does not discharge us from our primary obligation to contract holders for losses incurred under the policies we issue. We evaluate each reinsurance agreement to determine whether the agreement provides indemnification against loss or liability. As discussed in Note 23, a portion of this reinsurance activity is with affiliated companies. As of December 31, 2022, the policy for our reinsurance program was to retain up to $ 20 million on a single insured life. As the amount we retain varies by policy, we reinsured 21 % of the mortality risk on newly issued life insurance contracts in 2022. Reinsurance Exposures We focus on obtaining reinsurance from a diverse group of reinsurers, and we monitor concentration as well as financial strength ratings of our reinsurers. Our amounts recoverable from reinsurers represent receivables from and reserves ceded to reinsurers and LNBAR. The amounts recoverable from reinsurers were $ 23.9 billion and $ 22.8 billion as of December 31, 2022 and 2021, respectively. Protective represents our largest reinsurance exposure following the sale of individual life and individual and group annuity business acquired from Liberty Life Assurance Company of Boston in 2018, which resulted in amounts recoverable from Protective of $ 10.1 billion and $ 10.7 billion as of December 31, 2022 and 2021, respectively. Protective has funded trusts, of which the balance in the trusts changes as a result of ongoing reinsurance activity, to support the business ceded, which totaled $ 11.5 billion and $ 14.0 billion as of December 31, 2022 and 2021, respectively. Effective October 1, 2021, we entered into a reinsurance agreement with Resolution Life to reinsure liabilities under a block of in-force executive benefit and universal life policies. The agreement is structured as coinsurance for the general account reserves and modified coinsurance for the separate account reserves. Amounts recoverable from Resolution Life were $ 4.7 billion as of December 31, 2022 and 2021. Resolution Life has funded trusts, the balances of which change as a result of ongoing reinsurance activity to support the business ceded, that totaled $ 4.1 billion as of December 31, 2022 and 2021. We recognized a realized gain of $ 635 million in the fourth quarter of 2021 for the coinsurance portion of the transaction upon the transfer of a portfolio of assets to Resolution Life. Some portions of our annuity business have been reinsured on a modified coinsurance basis with other companies. In a modified coinsurance agreement, we as the ceding company retain the reserves, as well as the assets backing those reserves, and the reinsurer shares proportionally in all financial terms of the reinsured policies based on their respective percentage of the risk. Effective October 1, 2018, we entered into one such modified coinsurance agreement with Athene to reinsure fixed annuity products, which resulted in a deposit asset of $ 3.8 billion and $ 5.0 billion as of December 31, 2022 and 2021, respectively, within other assets on the Consolidated Balance Sheets. We held assets in support of reserves associated with the Athene transaction in a modified coinsurance investment portfolio, which consisted of the following (in millions): As of December 31, 2022 2021 Fixed maturity AFS securities $ 474 $ 744 Trading securities 2,644 3,399 Equity securities 60 54 Mortgage loans on real estate 487 739 Derivative investments 39 93 Other investments 42 227 Cash and invested cash 26 110 Accrued investment income 35 33 Other assets 2 5 Total $ 3,809 $ 5,404 The portfolio was supported by $ 105 million of over-collateralization and a $ 117 million letter of credit as of December 31, 2022. Additionally, we recorded a deferred gain on business sold through reinsurance related to the transaction with Athene and amortized $ 25 million, $ 26 million and $ 29 million of the gain during 2022, 2021 and 2020, respectively. See “Realized Gain (Loss)” in Note 15 for information on reinsurance-related embedded derivatives. Our reinsurance operations were acquired by Swiss Re in December 2001 through a series of indemnity reinsurance transactions. As such, Swiss Re reinsured certain liabilities and obligations under the indemnity reinsurance agreements. As we are not relieved of our liability to the ceding companies for this business, the liabilities and obligations associated with the reinsured policies remain on the Consolidated Balance Sheets with a corresponding reinsurance recoverable from Swiss Re, which totaled $ 1.1 billion as of December 31, 2022 and 2021. Swiss Re has funded a trust, with a balance of $ 710 million and $ 1.0 billion as of December 31, 2022 and 2021, respectively, to support this business. In addition to various remedies that we would have in the event of a default by Swiss Re, we continue to hold assets in support of certain of the transferred reserves. These assets consist of those reported as trading securities and certain mortgage loans. The amounts recoverable from LNBAR were $ 4.4 billion and $ 2.9 billion as of December 31, 2022 and 2021, respectively. LNBAR has funded trusts to support the business ceded of which the balance in the trusts changes as a result of ongoing reinsurance activity and totaled $ 2.2 billion and $ 3.0 billion as of December 31, 2022 and 2021, respectively. Credit Losses on Reinsurance Related Assets In connection with our recognition of an allowance for credit losses for reinsurance-related assets, we perform a quantitative analysis using a probability of loss approach to estimate expected credit losses for reinsurance recoverables, inclusive of similar assets recognized using the deposit method of accounting. Our allowance for credit losses was $ 314 million and $ 188 million as of December 31, 2022 and 2021, respectively. The increase was attributable to updates to policyholder behavior assumptions that impacted ceded reserves. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
Goodwill and Specifically Identifiable Intangible Assets | 9. Goodwi ll and Specifically Identifiable Intangible Assets The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows: For the Year Ended December 31, 2022 Gross Accumulated Net Goodwill Impairment Goodwill Net as of as of as of Goodwill Beginning- Beginning- Beginning- as of End- of-Year of-Year of-Year Impairment of-Year Life Insurance $ 2,186 $ ( 1,552 ) $ 634 $ ( 634 ) $ - Annuities 1,040 ( 600 ) 440 - 440 Group Protection 684 - 684 - 684 Retirement Plan Services 20 - 20 - 20 Total goodwill $ 3,930 $ ( 2,152 ) $ 1,778 $ ( 634 ) $ 1,144 For the Year Ended December 31, 2021 Gross Accumulated Net Goodwill Impairment Goodwill Net as of as of as of Goodwill Beginning- Beginning- Beginning- as of End- of-Year of-Year of-Year Impairment of-Year Life Insurance $ 2,186 $ ( 1,552 ) $ 634 $ - $ 634 Annuities 1,040 ( 600 ) 440 - 440 Group Protection 684 - 684 - 684 Retirement Plan Services 20 - 20 - 20 Total goodwill $ 3,930 $ ( 2,152 ) $ 1,778 $ - $ 1,778 The fair values of our reporting units (Level 3 fair value estimates) are comprised of the value of in-force (i.e., existing) business and the value of new business. Specifically, new business is representative of cash flows and profitability associated with policies or contracts we expect to issue in the future, reflecting our forecasts of future sales volume and product mix over a 10 -year period. To determine the values of in-force and new business, we use a discounted cash flows technique that applies a discount rate reflecting the market expected, weighted-average rate of return adjusted for the risk factors associated with operations to the projected future cash flows for each reporting unit. As a result of the capital market environment during the third quarter of 2022, including (i) declining equity markets and (ii) the impact of rising interest rates on our discount rate assumption, we accelerated our quantitative goodwill impairment test for our Life Insurance reporting unit as we concluded that there were indicators of impairment. Based on this quantitative test, which included updating our best estimate assumptions therein, we incurred an impairment during the third quarter of 2022 of the Life Insurance reporting unit goodwill of $ 634 million, which represented a write-off of the entire balance of goodwill for the reporting unit. As of October 1, 2022, we performed our annual quantitative goodwill impairment test for our other reporting units, and, as of such date, the fair value was in excess of the carrying value for each of the Annuities, Group Protection and Retirement Plan Services reporting units. As of October 1, 2021, we performed our annual quantitative goodwill impairment test for all of our reporting units, and, as of such date, the fair value was in excess of each reporting unit’s carrying value. The gross carrying amounts and accumulated amortization (in millions) for each major specifically identifiable intangible asset class by reportable segment were as follows: As Restated As of December 31, 2022 As of December 31, 2021 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Life Insurance: Sales force $ 100 $ 67 $ 100 $ 63 Group Protection: VOCRA 576 115 576 85 VODA 31 10 31 7 Retirement Plan Services: Mutual fund contract rights (1) 5 - 5 - Total $ 712 $ 192 $ 712 $ 155 (1) No amortization recorded as the intangible asset has indefinite life. Future estimated amortization of specifically identifiable intangible assets (in millions) as of December 31, 2022, was as follows: 2023 $ 37 2024 37 2025 37 2026 37 2027 37 Thereafter 330 |
Guaranteed Benefit Features
Guaranteed Benefit Features | 12 Months Ended |
Dec. 31, 2022 | |
Guaranteed Benefit Features [Abstract] | |
Guaranteed Benefit Features | 10. Guaranteed Be nefit Features The GDB features include those where we contractually guarantee to the contract holder either: return of no less than total deposits made to the contract less any partial withdrawals (“return of net deposits”); total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”); or the highest contract value on any contract anniversary date through age 80. The highest contract value is increased by purchase payments and is decreased by withdrawals subsequent to that anniversary date. Information on the GDB features outstanding (dollars in millions) was as follows: As of December 31, 2022 (1) 2021 (1) Return of Net Deposits Total account value $ 94,297 $ 117,503 Net amount at risk (2) 1,376 84 Average attained age of contract holders 67 years 67 years Minimum Return Total account value $ 71 $ 102 Net amount at risk (2) 14 11 Average attained age of contract holders 79 years 79 years Guaranteed minimum return 5 % 5 % Anniversary Contract Value Total account value $ 21,730 $ 28,788 Net amount at risk (2) 3,699 400 Average attained age of contract holders 73 years 73 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account value that is subject to market fluctuations. The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDBs (in millions), which were recorded in future contract benefits on the Consolidated Balance Sheets: For the Years Ended December 31, 2022 2021 2020 Balance as of beginning-of-year $ 132 $ 121 $ 117 Changes in reserves 210 31 30 Benefits paid ( 58 ) ( 20 ) ( 26 ) Balance as of end-of-year $ 284 $ 132 $ 121 Variable Annuity Contracts Account values of variable annuity contracts, including those with guarantees, (in millions) were invested in separate account investment options as follows: As of December 31, 2022 2021 Asset Type Domestic equity $ 58,640 $ 77,290 International equity 15,959 21,223 Fixed income 35,982 45,231 Total $ 110,581 $ 143,744 Secondary Guarantee Products Future contract benefits and other contract holder funds include reserves for our secondary guarantee products sold through our Life Insurance segment. Reserves on UL and VUL products with secondary guarantees represented 38 % and 37 % of total life insurance in-force reserves as of December 31, 2022 and 2021, respectively. |
Liability For Unpaid Claims
Liability For Unpaid Claims | 12 Months Ended |
Dec. 31, 2022 | |
Liability For Unpaid Claims [Abstract] | |
Liability For Unpaid Claims | 11. Liability for Unpaid Claims The liability for unpaid claims consists primarily of long-term disability claims and is reported in future contract benefits on the Consolidated Balance Sheets. Changes in the liability for unpaid claims (in millions) were as follows: For the Years Ended December 31, 2022 2021 2020 Balance as of beginning-of-year $ 6,280 $ 5,934 $ 5,552 Reinsurance recoverable 147 151 152 Net balance as of beginning-of-year 6,133 5,783 5,400 Incurred related to: Current year 3,875 4,026 3,517 Prior years: Interest 159 141 148 All other incurred (1) ( 190 ) ( 271 ) ( 209 ) Total incurred 3,844 3,896 3,456 Paid related to: Current year ( 1,951 ) ( 2,074 ) ( 1,707 ) Prior years ( 1,638 ) ( 1,472 ) ( 1,366 ) Total paid ( 3,589 ) ( 3,546 ) ( 3,073 ) Net balance as of end-of-year 6,388 6,133 5,783 Reinsurance recoverable 143 147 151 Balance as of end-of-year $ 6,531 $ 6,280 $ 5,934 (1) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably. The interest rate assumption used for discounting long-term claim reserves is an important part of the reserving process due to the long benefit period for these claims. Interest accrued on prior years’ reserves has been calculated on the opening reserve balance less one-half of the prior years’ incurred claim payments at our average reserve discount rate. Long-term disability benefits may extend for many years, and claim development schedules do not reflect these longer benefit periods. As a result, we use longer term retrospective runoff studies, experience studies and prospective studies to develop our liability estimates. Long-term disability reserves are discounted using rates ranging from 2.5 % to 5.0 % that vary by year of claim incurral. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Short-Term and Long-Term Debt [Abstract] | |
Short-Term and Long-Term Debt | 12. Short-Term and Long-Term Debt Details underlying short-term and long-term debt (in millions) were as follows: As of December 31, 2022 2021 Short-Term Debt Short-term debt (1) $ 562 $ 1,084 Long-Term Debt, Excluding Current Portion 9.76 % surplus note, due 2024 $ 50 $ 50 6.56 % surplus note, due 2028 500 500 LIBOR + 111 bps surplus note, due 2028 71 71 LIBOR + 226 bps surplus note, due 2028 568 593 6.03 % surplus note, due 2028 750 750 LIBOR + 200 bps surplus note, due 2035 30 30 LIBOR + 155 bps surplus note, due 2037 25 25 4.20 % surplus note, due 2037 50 50 LIBOR + 100 bps surplus note, due 2037 154 194 4.225 % surplus note, due 2037 28 28 4.00 % surplus note, due 2037 30 30 4.50 % surplus note, due 2038 13 13 Total long-term debt $ 2,269 $ 2,334 (1) The short-term debt represents short-term notes payable to LNC. Future principal payments due on long-term debt (in millions) as of December 31, 2022, were as follows: 2023 $ - 2024 50 2025 - 2026 - 2027 - Thereafter 2,219 Total $ 2,269 We issued a surplus note of $ 50 million to LNC in 1994. The note calls for us to pay the principal amount of the note on or before September 30, 2024 , and interest to be paid semiannually at an annual rate of 9.76 %. Subject to approval by the Commissioner, we have the right to repay the note on any March 31 or September 30. We issued a surplus note of $ 500 million to LNC in 1998. The note calls for us to pay the principal amount of the note on or before March 31, 2028 , and interest to be paid quarterly at an annual rate of 6.56 %. Subject to approval by the Commissioner, LNC has the right to redeem the note for immediate repayment in total or in part once per year on the anniversary date of the note. Any payment of interest or repayment of principal may be paid only out of our statutory earnings, only if our statutory capital surplus exceeds our statutory capital as of the date of note issuance of $ 2.3 billion, and subject to approval by the Commissioner. We issued a surplus note of $ 71 million to LNC in October 2013. The note calls for us to pay the principal amount of the note on or before September 24, 2028 , and interest to be paid quarterly at an annual rate of LIBOR + 111 bps. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a variable surplus note to a wholly-owned subsidiary of LNC in December 2013 with an initial outstanding principal amount of $ 287 million. The note calls for us to pay the principal amount of the note on or before October 1, 2028 , and interest to be paid quarterly at an annual rate of LIBOR + 226 bps. The outstanding principal amount as of December 31, 2022, was $ 568 million. We issued a surplus note of $ 750 million to LNC in 1998. The note calls for us to pay the principal amount of the note on or before December 31, 2028 , and interest to be paid quarterly at an annual rate of 6.03 %. Subject to approval by the Commissioner, LNC has the right to redeem the note for immediate repayment in total or in part once per year on the anniversary date of the note. Any payment of interest or repayment of principal may be paid only out of our statutory earnings, only if our statutory capital surplus exceeds our statutory capital surplus as of the date of note issuance of $ 2.4 billion, and subject to approval by the Commissioner. We issued a surplus note of $ 30 million to LNC in 2015. The note calls for us to pay the principal amount of the note on or before September 28, 2035 , and interest to be paid quarterly at an annual rate of LIBOR + 200 bps. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a surplus note of $ 25 million to LNC in July 2017. The note calls for us to pay the principal amount of the note on or before June 30, 2037 , and interest to be paid quarterly at an annual rate of LIBOR + 155 bps. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a surplus note of $ 50 million to LNC in October 2017. The note calls for us to pay the principal amount of the note on or before July 1, 2037 , and interest to be paid quarterly at an annual rate of 4.20 %. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a surplus note of $ 375 million to LNC in 2007. The note calls for us to pay the principal amount of the note on or before October 9, 2037 , and interest to be paid quarterly at an annual rate of LIBOR + 100 bps. The surplus note was amended in 2017 to include repayment terms stating subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. The outstanding principal amount as of December 31, 2022, was $ 154 million due to executing our right to repay the surplus note in part to LNC. We issued a surplus note of $ 13 million to LNC in 2018. The note calls for us to pay the principal amount of the note on or before June 30, 2038 , and interest to be paid quarterly at an annual rate of 4.50 %. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a surplus note of $ 28 million to LNC in 2019. The note calls for us to pay the principal amount of the note on or before October 9, 2037 , and interest to be paid quarterly at an annual rate of 4.225 %. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. We issued a surplus note of $ 30 million to LNC in 2020. The note calls for us to pay the principal amount of the note on or before October 9, 2037 , and interest to be paid quarterly at an annual rate of 4.00 %. Subject to approval by the Commissioner, we have the right to repay the note in whole or in part prior to the maturity date, if our statutory capital surplus exceeds the sum of our surplus at closing plus any accrued but unpaid interest. Credit Facilities Credit facilities, which allow for borrowing or issuances of letters of credit (“LOCs”), (in millions) were as follows: As of December 31, 2022 Expiration Maximum LOCs Date Available Issued Credit Facilities Five-year revolving credit facility June 19, 2026 $ 2,500 $ 1,635 LOC facility (1) August 26, 2031 979 948 LOC facility (1) October 1, 2031 891 891 Total $ 4,370 $ 3,474 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. During June 2021, LNC entered into an amended and restated credit agreement with a syndicate of banks, which amended and restated our existing five-year revolving credit facility agreement. The credit facility, which is unsecured, allows for the issuance of LOCs and borrowing of up to $ 2.5 billion and has a commitment termination date of June 19, 2026. The LOCs under the credit facility are used primarily to satisfy reserve credit requirements of (i) LNL and LNC’s other domestic insurance companies for which reserve credit is provided by our captive reinsurance subsidiaries and LNBAR and (ii) certain ceding companies of our legacy reinsurance business. The credit facility agreement, as currently in effect, contains: Customary terms and conditions, including covenants restricting the ability of LNC and its subsidiaries to incur liens and the ability of LNC to merge or consolidate with another entity where it is not the surviving entity and dispose of all or substantially all of its assets; Financial covenants including maintenance by LNC of a minimum consolidated net worth equal to the sum of $ 10.0 billion plus 50 % of the aggregate net proceeds of equity issuances received by LNC or any of its subsidiaries after December 1, 2022, all as more fully set forth in the agreement; and a debt-to-capital ratio as defined in accordance with the agreement not to exceed 0.35 to 1.00 ; A cap on LNC’s secured non-operating indebtedness and non-operating indebtedness of LNC’s subsidiaries equal to 7.5 % of total capitalization, as defined in accordance with the agreement; and Customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. Upon an event of default, the credit facility agreement, as currently in effect, provides that, among other things, the commitments may be terminated and the loans then outstanding may be declared due and payable. As of December 31, 2022, LNC was in compliance with all such covenants. Our LOC facility agreements each contain customary terms and conditions, including early termination fees, covenants restricting the ability of the subsidiaries to incur liens, merge or consolidate with another entity and dispose of all or substantially all of their assets. Upon an event of early termination, the agreements require the immediate payment of all or a portion of the present value of the future LOC fees that would have otherwise been paid. Further, the agreements contain customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. The events of default include payment defaults, covenant defaults, material inaccuracies in representations and warranties, bankruptcy and liquidation proceedings and other customary defaults. Upon an event of default, the agreements provide that, among other things, obligations to issue, amend or increase the amount of any LOC shall be terminated and any obligations shall become immediately due and payable. As of December 31, 2022, we were in compliance with all such covenants. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 13. Contingencies and Commit ments Contingencies Reinsurance Disputes Certain reinsurers have sought rate increases on certain yearly renewable term agreements. We are disputing the requested rate increases under these agreements. We may initiate legal proceedings, as necessary, under these agreements in order to protect our contractual rights. Additionally, reinsurers have initiated, and may in the future initiate, legal proceedings against us. While this may impact the Life Insurance segment, we believe it is unlikely the outcome of these disputes would have a material impact on the consolidated financial statements. For more information about reinsurance, see Note 8. Regulatory and Litigation Matters Regulatory bodies, such as state insurance departments, the SEC, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisers and unclaimed property laws. LNL and its affiliates are involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding verdicts obtained in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNL in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of December 31, 2022. For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss. As of December 31, 2022 , we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $ 190 million, after-tax. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure on such matters. For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews . Among other matters, we are presently engaged in litigation, including relating to cost of insurance rates (“Cost of Insurance and Other Litigation”), as described below. No accrual has been made for some of these matters. Although a loss is believed to be reasonably possible for these matters, for some of these matters, we are not able to estimate a reasonably possible amount or range of potential liability. An adverse outcome in one or more of these matters may have a material impact on the consolidated financial statements, but, based on information currently known, management does not believe those cases are likely to have such an impact. Cost of Insurance and Other Litigation Cost of Insurance Litigation Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company , filed in the U.S. District Court for the District of Connecticut, No. 3:16-cv-00827, is a putative class action that was served on LNL on June 8, 2016. Plaintiff is the owner of a universal life insurance policy who alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who owned policies containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. On January 11, 2019, the court dismissed Plaintiff’s complaint in its entirety. In response, Plaintiff filed a motion for leave to amend the complaint, which we have opposed . EFG Bank AG, Cayman Branch, et al. v. The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:17-cv-02592, is a civil action filed on February 1, 2017. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates beginning in 2016. We are vigorously defending this matter. In re: Lincoln National COI Litigation , pending in the U.S. District Court for the Eastern District of Pennsylvania, Case No. 2:16-cv-06605-GJP, is a consolidated litigation matter related to multiple putative class action cases that were consolidated by an order dated March 20, 2017. Plaintiffs purport to own certain universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Among other things, plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2016. Plaintiffs sought to represent classes of policyowners and sought damages on their behalf. On August 9, 2022, the court denied plaintiffs’ motion for class certification. The parties participated in a mediation on December 13, 2022, and subsequently reached a settlement. On January 26, 2023, the parties informed the presiding judge of a class settlement in this action, subject to final documentation and court approval. The parties requested an extension of the current case schedule and indicated that plaintiffs anticipate filing a motion for preliminary approval of the class settlement on or before March 24, 2023. The terms of the provisional class settlement remain confidential. In re: Lincoln National 2017 COI Rate Litigation , pending in the U.S. District Court for the Eastern District of Pennsylvania, Case No. 2:17-cv-04150, is a consolidated litigation matter related to multiple putative class action cases that were consolidated by an order dated March 28, 2018. Plaintiffs purport to own certain universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Among other things, plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2017. Plaintiffs sought to represent classes of policyholders and sought damages on their behalf. On August 9, 2022, the court denied plaintiffs’ motion for class certification. The parties participated in a mediation on December 13, 2022, and subsequently reached a settlement. On January 26, 2023, the parties informed the presiding judge of a class settlement in this action, subject to final documentation and court approval. The parties requested an extension of the current case schedule and indicated that plaintiffs anticipate filing a motion for preliminary approval of the class settlement on or before March 24, 2023. The terms of the provisional class settlement remain confidential. TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company , filed in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-02989, is a putative class action that was filed on July 17, 2018. Plaintiff alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who own policies issued by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. We are vigorously defending this matter. LSH Co. and Wells Fargo Bank, National Association, as securities intermediary for LSH Co. v. Lincoln National Corporation and The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-05529, is a civil action filed on December 21, 2018. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates in 2016 and 2017. We are vigorously defending this matter. Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York , pending in the U.S. District Court for the Southern District of New York, No. 1:19-cv-06004, is a putative class action that was filed on June 27, 2019. Plaintiff alleges that LLANY charged more for non-guaranteed cost of insurance than was permitted by the policies. On March 31, 2022, the court issued an order granting plaintiff’s motion for class certification and certified a class of all current or former owners of six universal life insurance products issued by LLANY that were assessed a cost of insurance charge any time on or after June 27, 2013. Plaintiff seeks damages on behalf of the class. We are vigorously defending this matter. Angus v. The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:22-cv-01878, is a putative class action filed on May 13, 2022. Plaintiff alleges that defendant LNL breached the terms of her life insurance policy by deducting non-guaranteed cost of insurance charges in excess of what is permitted by the policies. Plaintiff seeks to represent all owners of universal life insurance policies issued or insured by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of plaintiff’s policy and seeks damages on their behalf. Breach of contract is the only cause of action asserted. On August 26, 2022, LNL filed a motion to dismiss. We are vigorously defending this matter. Other Litigation Andrew Nitkewicz v. Lincoln Life & Annuity Company of New York, pending in the U.S. District Court for the Southern District of New York, No. 1:20-cv-06805, is a putative class action that was filed on August 24, 2020. Plaintiff Andrew Nitkewicz, as trustee of the Joan C. Lupe Trust, seeks to represent all current and former owners of universal life (including variable universal life) policies who own or owned policies issued by LLANY and its predecessors in interest that were in force at any time on or after June 27, 2013, and for which planned annual, semi-annual, or quarterly premiums were paid for any period beyond the end of the policy month of the insured’s death. Plaintiff alleges LLANY failed to refund unearned premium in violation of New York Insurance Law Section 3203(a)(2) in connection with the payment of death benefit claims for certain insurance policies. Plaintiff seeks compensatory damages and pre-judgment interest on behalf of the various classes and sub-class. On July 2, 2021, the court granted, with prejudice, LLANY’s November 2020 motion to dismiss this matter. Plaintiff filed a notice of appeal on July 28, 2021, and on September 26, 2022, the U.S. Court of Appeals for the Second Circuit reserved its decision and certified a question to the New York Court of Appeals. On October 20, 2022, the New York Court of Appeals accepted the question, and has set a briefing schedule. Commitments Leases As of December 31, 2022 and 2021, we had operating lease ROU assets of $ 110 million and $ 134 million, respectively, and associated lease liabilities of $ 119 million and $ 140 million, respectively. The weighted-average discount rate was 2.8 % and 2.5 %, respectively, and the weighted-average remaining lease term was five years as of December 31, 2022 and 2021. Operating lease expense for the years ended December 31, 2022, 2021 and 2020, was $ 45 million, $ 41 million and $ 42 million, respectively, and reported in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) . As of December 31, 2022 and 2021, we had finance lease assets of $ 14 million and $ 37 million, respectively, and associated finance lease liabilities of $ 106 million and $ 175 million, respectively. The accumulated amortization associated with the finance lease assets was $ 458 million and $ 436 million as of December 31, 2022 and 2021, respectively. These assets will continue to be amortized on a straight-line basis over the assets’ remaining lives. The weighted-average discount rate was 2.9 % and 1.4 %, respectively, and the weighted-average remaining lease term was one year as of December 31, 2022 and 2021. Finance lease expense (in millions) was as follows: For the Years Ended December 31, 2022 2021 2020 Amortization of finance lease assets (1) $ 23 $ 38 $ 53 Interest on finance lease liabilities (2) 4 3 6 Total $ 27 $ 41 $ 59 (1) Amortization of finance lease assets is reported in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). (2) Interest on finance lease liabilities is reported in interest and debt expense on the Consolidated Statements of Comprehensive Income (Loss). The table below presents cash flow information (in millions) related to leases: For the Years Ended December 31, 2022 2021 2020 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47 $ 40 $ 43 Financing cash flows from finance leases 74 62 53 Supplemental Non-Cash Information ROU assets obtained in exchange for new lease obligations: Operating leases $ 6 $ 8 $ 10 Our future minimum lease payments (in millions) under non-cancellable leases as of December 31, 2022, were as follows: Operating Finance Leases Leases 2023 $ 34 $ 82 2024 32 18 2025 27 7 2026 23 4 2027 15 - Thereafter 16 - Total future minimum lease payments 147 111 Less: Amount representing interest 28 5 Present value of minimum lease payments $ 119 $ 106 As of December 31, 2022, we had no leases that had not yet commenced. Certain Financing Arrangements We periodically enter into sale-leaseback arrangements that do not meet the criteria of a sale for accounting purposes. As such, we account for these transactions as financing arrangements. As of December 31, 2022 and 2021, we had $ 558 million and $ 375 million, respectively, of financing obligations reported within other liabilities on the Consolidated Balance Sheets. Future payments due on certain financing arrangements (in millions) as of December 31, 2022, were as follows: 2023 $ 43 2024 95 2025 127 2026 175 2027 191 Thereafter - Total future minimum lease payments 631 Less: Amount representing interest 73 Present value of minimum lease payments $ 558 Vulnerability from Concentrations As of December 31, 2022, we did not have a concentration of: business transactions with a particular customer or lender; sources of supply of labor or services used in the business; or a market or geographic area in which business is conducted that makes us vulnerable to an event that is at least reasonably possible to occur in the near term and which could cause a severe impact to our financial condition. For information on our investment and reinsurance concentrations, see Notes 4 and 8, respectively. Other Contingency Matters State guaranty funds assess insurance companies to cover losses to contract holders of insolvent or rehabilitated companies. Mandatory assessments may be partially recovered through a reduction in future premium taxes in some states. We have accrued for expected assessments and the related reductions in future state premium taxes, which net to assessments (recoveries) of $( 3 ) million and $( 7 ) million as of December 31, 2022 and 2021, respectively. |
Shares and Stockholder's Equity
Shares and Stockholder's Equity | 12 Months Ended |
Dec. 31, 2022 | |
Shares and Stockholder's Equity [Abstract] | |
Shares and Stockholder's Equity | 14. Shares and Stockho lder’s Equity All authorized and issued shares of LNL are owned by LNC. AOCI The following summarizes the components and changes in AOCI (in millions): As Restated For the For the For the Year Ended Year Ended Year Ended December 31, December 31, December 31, 2022 2021 2020 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Balance as of beginning-of-year $ 6,315 $ 8,993 $ 5,637 Cumulative effect from adoption of new accounting standards - - 40 Unrealized holding gains (losses) arising during the year ( 24,477 ) ( 4,475 ) 7,585 Change in foreign currency exchange rate adjustment ( 321 ) ( 146 ) 180 Change in DAC, VOBA, DSI, future contract benefits and other contract holder 7,426 1,818 ( 3,559 ) funds Income tax benefit (expense) 3,716 600 ( 901 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) ( 13 ) 624 ( 52 ) Associated amortization of DAC, VOBA, DSI and DFEL 44 ( 23 ) 38 Income tax benefit (expense) ( 7 ) ( 126 ) 3 Balance as of end-of-year $ ( 7,365 ) $ 6,315 $ 8,993 Unrealized OTTI on Fixed Maturity AFS Securities Balance as of beginning-of-year $ - $ - $ 40 (Increases) attributable to: Cumulative effect from adoption of new accounting standards - - ( 40 ) Balance as of end-of-year $ - $ - $ - Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 240 $ 42 $ 181 Unrealized holding gains (losses) arising during the year ( 154 ) 141 77 Change in foreign currency exchange rate adjustment 312 152 ( 174 ) Change in DAC, VOBA, DSI and DFEL ( 29 ) 7 ( 23 ) Income tax benefit (expense) ( 28 ) ( 65 ) 26 Less: Reclassification adjustment for gains (losses) included in net income (loss) 103 49 64 Associated amortization of DAC, VOBA, DSI and DFEL ( 62 ) ( 2 ) ( 7 ) Income tax benefit (expense) ( 9 ) ( 10 ) ( 12 ) Balance as of end-of-year $ 309 $ 240 $ 42 Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 11 ) $ ( 14 ) $ ( 22 ) Adjustment arising during the year ( 6 ) 4 10 Income tax benefit (expense) - ( 1 ) ( 2 ) Balance as of end-of-year $ ( 17 ) $ ( 11 ) $ ( 14 ) The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss): As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Gross reclassification $ ( 13 ) $ 624 $ ( 52 ) Realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL 44 ( 23 ) 38 Realized gain (loss) Reclassification before income tax benefit (expense) 31 601 ( 14 ) Income (loss) before taxes Income tax benefit (expense) ( 7 ) ( 126 ) 3 Federal income tax expense (benefit) Reclassification, net of income tax $ 24 $ 475 $ ( 11 ) Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 2 $ 3 $ 2 Net investment income Foreign currency contracts 62 48 56 Net investment income Foreign currency contracts 39 ( 2 ) 6 Realized gain (loss) Total gross reclassifications 103 49 64 Associated amortization of DAC, VOBA, DSI and DFEL ( 62 ) ( 2 ) ( 7 ) Commissions and other expenses Reclassifications before income tax benefit (expense) 41 47 57 Income (loss) before taxes Income tax benefit (expense) ( 9 ) ( 10 ) ( 12 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 32 $ 37 $ 45 Net income (loss) |
Realized Gain (Loss)
Realized Gain (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Realized Gain (Loss) [Abstract] | |
Realized Gain (Loss) | 15. Realized Gain (Loss) Details underlying realized gain (loss) (in millions) reported on the Consolidated Statements of Comprehensive Income (Loss) were as follows: As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Fixed maturity AFS securities: Gross gains $ 37 $ 660 $ 26 Gross losses ( 50 ) ( 36 ) ( 78 ) Credit loss benefit (expense) (1) ( 14 ) ( 11 ) ( 25 ) Realized gain (loss) on equity securities (2) 12 41 8 Credit loss benefit (expense) on mortgage loans on real estate ( 3 ) 111 ( 117 ) Credit loss benefit (expense) on reinsurance-related assets (3) ( 126 ) 2 - Realized gain (loss) on the mark-to-market on certain instruments (4)(5) 683 169 ( 142 ) Other gain (loss) on investments ( 35 ) - ( 7 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds ( 18 ) ( 25 ) 31 Total realized gain (loss) related to financial instruments and reinsurance-related assets 486 911 ( 304 ) Indexed annuity and IUL contracts net derivative results: (6) Gross gain (loss) 74 22 38 Associated amortization of DAC, VOBA, DSI and DFEL ( 56 ) 4 ( 26 ) GLB fees ceded to LNBAR and attributed fees: Gross gain (loss) ( 260 ) ( 192 ) ( 205 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 30 ) ( 34 ) ( 29 ) Total realized gain (loss) $ 214 $ 711 $ ( 526 ) (1) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (2) Includes mark-to-market adjustments on equity securities still held of $ 7 million (as restated), $ 44 million (as restated) and $ 8 million for the years ended December 31, 2022, 2021 and 2020, respectively. (3) See Note 8 for information on credit losses on reinsurance-related assets. (4) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance-related embedded derivatives, mortgage loans on real estate accounted for under the fair value option and trading securities. See Notes 1 and 8 for information regarding modified coinsurance . (5) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $( 24 ) million, $ 3 million and $( 24 ) million for the years ended December 31, 2022, 2021 and 2020, respectively. (6) Represents the net difference between the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. |
Commissions and Other Expenses
Commissions and Other Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Commissions and Other Expenses [Abstract] | |
Commissions and Other Expenses | 16. Comm issions and Other Expenses Details underlying commissions and other expenses (in millions) were as follows: As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Commissions $ 2,201 $ 2,227 $ 2,193 General and administrative expenses 2,200 2,187 2,014 Expenses associated with reserve financing and LOCs 60 57 55 DAC and VOBA deferrals and interest, net of amortization ( 466 ) 235 ( 144 ) Broker-dealer expenses 419 441 378 Specifically identifiable intangible asset amortization 37 37 37 Taxes, licenses and fees 348 350 336 Transaction and integration costs related to mergers, acquisitions and divestitures - 14 20 Total $ 4,799 $ 5,548 $ 4,889 |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement and Deferred Compensation Plans [Abstract] | |
Retirement and Deferred Compensation Plans | 17. Re tirement and Deferred Compensation Plans Defined Benefit Pension and Other Postretirement Benefit Plans We maintain defined benefit pension plans in which certain agents are participants. These defined benefit pension plans are closed to new entrants and existing participants do not accrue any additional benefits. We comply with applicable minimum funding requirements. In accordance with such practice, we were not required to make contributions for the years ended December 31, 2022 and 2021. We do not expect to be required to make any contributions to these pension plans in 2023. We sponsor other postretirement benefit plans that provide health care and life insurance to certain retired agents. Total net periodic cost (recovery) for these plans was $( 2 ) million, $ 1 million and $ 4 million during 2022, 2021 and 2020, respectively, which was reported within commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). In 2023, we expect the plans to make benefit payments of approximately $ 10 million. Information (in millions) with respect to these plans was as follows: As of or For the Years Ended December 31, 2022 2021 2022 2021 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 77 $ 108 $ 9 $ 8 Projected benefit obligation 82 107 6 9 Funded status $ ( 5 ) $ 1 $ 3 $ ( 1 ) Amounts Recognized on the Consolidated Balance Sheets Other assets $ - $ 4 $ 3 $ - Other liabilities ( 5 ) ( 3 ) - ( 1 ) Net amount recognized $ ( 5 ) $ 1 $ 3 $ ( 1 ) Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 5.66 % 3.07 % 5.70 % 3.10 % Net periodic benefit cost: Weighted-average discount rate 3.07 % 2.95 % 3.73 % 2.96 % Expected return on plan assets 5.00 % 4.25 % 6.50 % 6.50 % The weighted average discount rate was determined based on a corporate yield curve as of December 31, 2022, and projected benefit obligation cash flows. The expected return on plan assets was determined based on historical and expected future returns of the various asset categories, using the plans’ target plan allocation. We reevaluate these assumptions each plan year. The following summarizes our fair value measurements of our benefit plans’ assets (in millions) on a recurring basis by asset category: As of December 31, 2022 2021 Fixed maturity securities: Corporate bonds $ 33 $ 49 U.S. government bonds 17 20 CMBS 2 2 Common stock 22 32 Cash and invested cash 3 5 Other investments 9 8 Total $ 86 $ 116 Participation in Defined Benefit Pension and Other Postretirement Benefit Plans We participate in defined benefit pension plans that are sponsored by LNC for certain employees and non-employee directors. These defined benefit pension plans are closed to new entrants, and existing participants do not accrue any additional benefits. We also participate in other postretirement benefit plans sponsored by LNC that provide health care and life insurance to certain retired employees. Our expense (benefit) for these plans was $( 35 ) million, $( 28 ) million and $( 9 ) million for the years ended December 31, 2022, 2021 and 2020, respectively. Defined Contribution Plans We sponsor tax-qualified defined contribution plans for eligible agents that are administered in accordance with the plan documents and various limitations under section 401(a) of the Internal Revenue Code of 1986. We also participate in defined contribution plans sponsored by LNC for eligible employees. Our expense for these plans was $ 99 million, $ 104 million and $ 97 million, for the years ended December 31, 2022, 2021 and 2020, respectively. Deferred Compensation Plans We sponsor non-qualified, unfunded, deferred compensation plans for certain current and former agents. Certain current employees participate in non-qualified, unfunded, deferred compensation plans sponsored by LNC. The results of certain notional investment options within some of the plans are hedged by total return swaps. Our expenses increase or decrease in direct proportion to the change in market value of the participants’ investment options. Participants of certain plans are able to select LNC stock as a notional investment option; however, it is not hedged by the total return swaps and is a primary source of expense volatility related to these plans. Our expense for these plans was $ 12 million, $ 18 million and $ 35 million for the years ended December 31, 2022, 2021 and 2020, respectively. For further discussion of total return swaps related to our deferred compensation plans, see Note 5. Information (in millions) with respect to these plans was as follows: As of December 31, 2022 2021 Total liabilities (1) $ 623 $ 755 Investments dedicated to fund liabilities (2) 206 254 (1) Reported in other liabilities on the Consolidated Balance Sheets. (2) Reported in other assets on the Consolidated Balance Sheets. |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Incentive Compensation Plans [Abstract] | |
Stock-Based Incentive Compensation Plans | 18. Stock-Based In centive Compensation Plans Our employees and agents are included in LNC’s various stock-based incentive compensation plans that provide for the issuance of stock options, performance shares and restricted stock units (“RSUs”), among other types of awards. LNC issues new shares to satisfy option exercises and vested performance shares and RSUs. Total compensation expense (in millions) by award type for stock-based incentive compensation plans was as follows: For the Years Ended December 31, 2022 2021 2020 Stock options $ 6 $ 8 $ 9 Performance shares 9 17 5 RSUs 33 33 34 Total $ 48 $ 58 $ 48 Recognized tax benefit $ 11 $ 12 $ 10 |
Statutory Information and Restr
Statutory Information and Restrictions | 12 Months Ended |
Dec. 31, 2022 | |
Statutory Information and Restrictions [Abstract] | |
Statutory Information and Restrictions | 19. Statutory In formation and Restrictions We prepare financial statements in accordance with statutory accounting principles (“SAP”) prescribed or permitted by the insurance departments of our respective states of domicile, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between statutory financial statements and financial statements prepared in accordance with GAAP are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. We are subject to the applicable laws and regulations of our respective states of domicile. Changes in these laws and regulations could change capital levels or capital requirements for the Company. Statutory capital and surplus, net gain (loss) from operations, after-tax, net income (loss) and dividends to the LNC holding company amounts (in millions) below consist of all or a combination of the following entities: LNL, LLANY, Lincoln Reinsurance Company of South Carolina, Lincoln Reinsurance Company of Vermont I, Lincoln Reinsurance Company of Vermont III, Lincoln Reinsurance Company of Vermont IV, Lincoln Reinsurance Company of Vermont V, Lincoln Reinsurance Company of Vermont VI and Lincoln Reinsurance Company of Vermont VII. As of December 31, 2022 2021 U.S. capital and surplus $ 8,507 $ 8,647 For the Years Ended December 31, 2022 2021 2020 U.S. net gain (loss) from operations, after-tax $ 1,708 $ ( 1,285 ) $ ( 247 ) U.S. net income (loss) 1,965 ( 569 ) 53 U.S. dividends to LNC holding company 645 1,910 660 State Prescribed and Permitted Practices The states of domicile for LNL and LLANY, Indiana and New York, respectively, have adopted certain prescribed or permitted accounting practices that differ from those found in NAIC SAP. These prescribed practices are the calculation of reserves on universal life policies based on the Indiana universal life method as prescribed by the state of Indiana for policies issued before January 1, 2006, the use of a more conservative valuation interest rate on certain annuities prescribed by the states of Indiana and New York. Also, the state of New York prescribes use of the continuous Commissioners’ Annuity Reserve Valuation Method in the calculation of reserves and use of minimum reserve methods and assumptions for variable annuity and individual life insurance contracts that may be more conservative than those required by NAIC SAP. The statutory permitted practices allow accounting for certain derivative assets at amortized cost and allow determining certain indexed annuity and indexed universal life statutory reserve calculations with the assumption that the market value of the related liability call option(s) associated with the current index term is zero. At the conclusion of the index term, credited interest is reflected in the reserve as realized, based on actual index performance. The statutory accounting practices also allow accounting for certain group fixed annuity assets at general account values. The Vermont reinsurance subsidiaries also have certain accounting practices permitted by the state of Vermont that differ from those found in NAIC SAP. One permitted practice involves accounting for the lesser of the face amount of all amounts outstanding under an LOC and the value of the Valuation of Life Insurance Policies Model Regulation (“XXX”) additional statutory reserves as an admitted asset and a form of surplus as of December 31, 2022 and 2021. Another permitted practice involves the acquisition of an LLC note in exchange for a variable value surplus note that is recognized as an admitted asset and a form of surplus as of December 31, 2022 and 2021. Lastly, the state of Vermont has permitted a practice to account for certain excess of loss reinsurance agreements with unaffiliated reinsurers as an asset and form of surplus as of December 31, 2022 and 2021. These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of Actuarial Guideline 48 (“AG48”) or are compliant under AG48 requirements. The favorable (unfavorable) effects on statutory surplus compared to NAIC statutory surplus from the use of these prescribed and permitted practices (in millions) were as follows: As of December 31, 2022 2021 State Prescribed Practices Calculation of reserves using the Indiana universal life method $ 3 $ 6 Conservative valuation rate on certain annuities ( 36 ) ( 40 ) Calculation of reserves using continuous CARVM ( 1 ) - Conservative Reg 213 reserves on variable annuity and individual life contracts ( 37 ) ( 27 ) State Permitted Practice Derivative instruments and equity indexed reserves 14 ( 113 ) Assets in group fixed annuity contracts held at general account values 436 - Vermont Subsidiaries Permitted Practices Lesser of LOC and XXX additional reserve as surplus 1,838 1,847 LLC notes and variable value surplus notes 1,547 1,616 Excess of loss reinsurance agreements 549 493 The NAIC has adopted RBC requirements for life insurance companies to evaluate the adequacy of statutory capital and surplus in relation to investment and insurance risks. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. Under RBC requirements, regulatory compliance is determined by the ratio of a company’s total adjusted capital, as defined by the NAIC, to its company action level of RBC (known as the “RBC ratio”), also as defined by the NAIC. The company action level may be triggered if the RBC ratio is between 75 % and 100 %, which would require the insurer to submit a plan to the regulator detailing corrective action it proposes to undertake. As of December 31, 2022, the Company’s RBC ratio was in excess of three times the aforementioned company action level RBC. We are subject to certain insurance department regulatory restrictions as to the transfer of funds and payment of dividends to the holding company. Under Indiana laws and regulations, LNL may pay dividends to LNC without prior approval of the Indiana Insurance Commissioner (the “Commissioner”), only from unassigned surplus and must receive prior approval of the Commissioner to pay a dividend if such dividend, along with all other dividends paid within the preceding 12 consecutive months, would exceed the statutory limitation. The current statutory limitation is the greater of 10 % of the insurer’s contract holders’ surplus, as shown on its last annual statement on file with the Commissioner or the insurer’s statutory net gain from operations for the previous 12 months, but in no event to exceed statutory unassigned surplus. Indiana law gives the Commissioner broad discretion to disapprove requests for dividends in excess of these limits. LNL’s subsidiary, LLANY, a New York-domiciled insurance company, is bound by similar restrictions under the laws of New York. Under New York law, the applicable statutory limitation on dividends is equal to the lesser of 10 % of surplus to contract holders as of the immediately preceding calendar year or net gain from operations for the immediately preceding calendar year, not including realized capital gains. We expect that we could pay dividends to LNC of approximately $ 1.7 billion in 2023 without prior approval from the Commissioner of Insurance. All payments of principal and interest on surplus notes must be approved by the respective Commissioner of Insurance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 20. Fair Value of Financial I nstruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As Restated As of December 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 99,465 $ 99,465 $ 117,476 $ 117,476 Trading securities 3,446 3,446 4,405 4,405 Equity securities 427 427 371 371 Mortgage loans on real estate 18,211 16,477 17,893 18,599 Derivative investments 3,519 3,519 5,697 5,697 Other investments 3,577 3,577 3,435 3,435 Cash and invested cash 2,499 2,499 2,331 2,331 Other assets: GLB direct embedded derivatives 1,697 1,697 1,967 1,967 GLB ceded embedded derivatives 29 29 56 56 Reinsurance-related embedded derivatives 681 681 - - Indexed annuity ceded embedded derivatives 525 525 528 528 LPR ceded derivative 212 212 318 318 Separate account assets 143,536 143,536 182,583 182,583 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 4,783 ) ( 4,783 ) ( 6,131 ) ( 6,131 ) Other contract holder funds: Remaining guaranteed interest and similar contracts ( 1,686 ) ( 1,686 ) ( 1,788 ) ( 1,788 ) Account values of certain investment contracts ( 43,545 ) ( 34,244 ) ( 41,164 ) ( 47,828 ) Short-term debt ( 562 ) ( 562 ) ( 1,084 ) ( 1,084 ) Long-term debt ( 2,269 ) ( 2,166 ) ( 2,334 ) ( 2,675 ) Other liabilities: Reinsurance-related embedded derivatives - - ( 578 ) ( 578 ) Derivative liabilities ( 254 ) ( 254 ) ( 281 ) ( 281 ) GLB ceded embedded derivatives ( 1,721 ) ( 1,721 ) ( 2,018 ) ( 2,018 ) 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 on the Consolidated Balance Sheets. 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 on Real Estate The fair value of mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, is established using a discounted cash flow method based on credit rating, maturity and future income. The 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 fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, are classified as Level 2 within the fair value hierarchy. Other Investments The carrying value of our assets classified as other investments, excluding short-term investments, approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also includes FHLB stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy. Separate Account Assets Separate account assets are primarily carried at fair value. A portion of our separate account assets includes LPs, which are accounted for using the equity method of accounting. The carrying value is based on our proportional share of the net assets of the LPs and approximates fair value. The inputs used to measure the fair value of the separate account asset LPs are classified as Level 3 within the fair value hierarchy. Other Contract Holder Funds Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of December 31, 2022 and 2021, the remaining guaranteed interest and similar contracts carrying value approximated fair value. The fair value of the account values of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of our other contract holder funds are classified as Level 3 within the fair value hierarchy. Short-Term and Long-Term Debt The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy. Fair Value Option Mortgage loans on real estate, net of allowance for credit losses, as reported on the Consolidated Balance Sheets, includes mortgage loans on real estate for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with modified coinsurance agreements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on the Consolidated Statement of Comprehensive Income (Loss). Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Mortgage loans on real estate for which the fair value option was elected are valued using third-party pricing services. We have procedures in place to review the valuations each quarter to ensure they are reasonable, including utilizing a separate third party to reperform the valuation for a selection of mortgage loans on an annual basis. Due to lack of observable inputs, mortgage loans electing the fair value option are classified as Level 3 within the fair value hierarchy. The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows: As of December 31, 2022 2021 Fair value $ 487 $ 739 Aggregate contractual principal 514 742 As of December 31, 2022 and 2021, no loans for which the fair value option was elected were in non-accrual status, and no ne were more than 90 days past due and still accruing interest. Financial Instruments Carried at Fair Value We did no t have any assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2022 or 2021. The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels: As Restated As of December 31, 2022 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 73,980 $ 5,186 $ 79,166 U.S. government bonds 332 19 - 351 State and municipal bonds - 4,850 35 4,885 Foreign government bonds - 311 - 311 RMBS - 1,835 1 1,836 CMBS - 1,667 - 1,667 ABS - 9,782 1,117 10,899 Hybrid and redeemable preferred securities 40 261 49 350 Trading securities - 2,865 581 3,446 Equity securities - 274 153 427 Mortgage loans on real estate - - 487 487 Derivative investments (1) - 5,929 605 6,534 Other investments – short-term investments - 30 - 30 Cash and invested cash - 2,499 - 2,499 Other assets: GLB direct embedded derivatives - - 1,697 1,697 GLB ceded embedded derivatives - - 29 29 Reinsurance-related embedded derivatives - 681 - 681 Indexed annuity ceded embedded derivatives - - 525 525 LPR ceded derivative - - 212 212 Separate account assets 412 143,124 - 143,536 Total assets $ 784 $ 248,107 $ 10,677 $ 259,568 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 4,783 ) $ ( 4,783 ) Other liabilities: Derivative liabilities (1) - ( 2,666 ) ( 603 ) ( 3,269 ) GLB ceded embedded derivatives - - ( 1,721 ) ( 1,721 ) Total liabilities $ - $ ( 2,666 ) $ ( 7,107 ) $ ( 9,773 ) As Restated As of December 31, 2021 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 88,622 $ 8,801 $ 97,423 U.S. government bonds 395 5 - 400 State and municipal bonds - 6,377 - 6,377 Foreign government bonds - 382 41 423 RMBS - 2,302 3 2,305 CMBS - 1,590 - 1,590 ABS - 7,636 870 8,506 Hybrid and redeemable preferred securities 53 309 90 452 Trading securities 32 3,545 828 4,405 Equity securities 7 273 91 371 Mortgage loans on real estate - - 739 739 Derivative investments (1) - 9,626 149 9,775 Other investments – short-term investments - 114 - 114 Cash and invested cash - 2,331 - 2,331 Other assets: GLB direct embedded derivatives - - 1,967 1,967 GLB ceded embedded derivatives - - 56 56 Indexed annuity ceded embedded derivatives - - 528 528 LPR ceded derivative - - 318 318 Separate account assets 646 181,929 - 182,575 Total assets $ 1,133 $ 305,041 $ 14,481 $ 320,655 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 6,131 ) $ ( 6,131 ) Other liabilities: Reinsurance-related embedded derivatives - ( 578 ) - ( 578 ) Derivative liabilities (1) - ( 4,231 ) ( 128 ) ( 4,359 ) GLB ceded embedded derivatives - - ( 2,018 ) ( 2,018 ) Total liabilities $ - $ ( 4,809 ) $ ( 8,277 ) $ ( 13,086 ) (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. 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. As Restated For the Year Ended December 31, 2022 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 8,801 $ 1 $ ( 1,542 ) $ 592 $ ( 2,666 ) $ 5,186 State and municipal bonds - - ( 1 ) - 36 35 Foreign government bonds 41 - ( 6 ) ( 30 ) ( 5 ) - RMBS 3 - 1 21 ( 24 ) 1 CMBS - - - 17 ( 17 ) - ABS 870 - ( 113 ) 676 ( 316 ) 1,117 Hybrid and redeemable preferred securities 90 ( 4 ) ( 21 ) ( 12 ) ( 4 ) 49 Trading securities 828 ( 80 ) - ( 152 ) ( 15 ) 581 Equity securities 91 52 - 25 ( 15 ) 153 Mortgage loans on real estate 739 ( 20 ) ( 5 ) ( 227 ) - 487 Derivative investments 21 2 ( 6 ) - ( 15 ) 2 Other assets: GLB direct embedded derivatives (3) 1,967 ( 270 ) - - - 1,697 GLB ceded embedded derivatives (3) 56 ( 27 ) - - - 29 Indexed annuity ceded embedded derivatives (3) 528 ( 215 ) - 212 - 525 LPR ceded derivative (4) 318 ( 106 ) - - - 212 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (3) ( 6,131 ) 1,975 - ( 627 ) - ( 4,783 ) Other liabilities – GLB ceded embedded derivatives (3) ( 2,018 ) 297 - - - ( 1,721 ) Total, net $ 6,204 $ 1,605 $ ( 1,693 ) $ 495 $ ( 3,041 ) $ 3,570 As Restated For the Year Ended December 31, 2021 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 7,761 $ 3 $ ( 182 ) $ 1,189 $ 30 $ 8,801 U.S. government bonds 5 - - ( 5 ) - - Foreign government bonds 74 - ( 11 ) 80 ( 102 ) 41 RMBS 2 - - 2 ( 1 ) 3 CMBS 1 ( 1 ) - 8 ( 8 ) - ABS 570 1 ( 9 ) 602 ( 294 ) 870 Hybrid and redeemable preferred securities 103 - 25 ( 38 ) - 90 Trading securities 643 ( 3 ) - 210 ( 22 ) 828 Equity securities 57 38 - ( 4 ) - 91 Mortgage loans on real estate 832 11 5 ( 109 ) - 739 Derivative investments 1,542 1,255 ( 3 ) ( 139 ) ( 2,634 ) 21 Other assets: GLB direct embedded derivatives (3) 450 1,517 - - - 1,967 GLB ceded embedded derivatives (3) 82 ( 26 ) - - - 56 Indexed annuity ceded embedded derivatives (3) 550 87 - ( 109 ) - 528 LPR ceded derivative (4) - - - - 318 318 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (3) ( 3,594 ) ( 2,709 ) - 172 - ( 6,131 ) Other liabilities – GLB ceded embedded derivatives (3) ( 531 ) ( 1,487 ) - - - ( 2,018 ) Total, net $ 8,547 $ ( 1,314 ) $ ( 175 ) $ 1,859 $ ( 2,713 ) $ 6,204 For the Year Ended December 31, 2020 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 6,978 $ ( 7 ) $ 281 $ 435 $ 74 $ 7,761 U.S. government bonds 5 - - - - 5 Foreign government bonds 90 - 3 ( 19 ) - 74 RMBS 11 - - - ( 9 ) 2 CMBS 1 - - - - 1 ABS 268 - 10 495 ( 203 ) 570 Hybrid and redeemable preferred securities 78 - ( 2 ) 9 18 103 Trading securities 666 10 - ( 32 ) ( 1 ) 643 Equity securities 30 4 - 18 5 57 Mortgage loans on real estate - ( 1 ) ( 10 ) 56 787 832 Derivative investments 868 986 267 ( 363 ) ( 216 ) 1,542 Other assets: (3) GLB direct embedded derivatives 450 - - - - 450 GLB ceded embedded derivatives 60 22 - - - 82 Indexed annuity ceded embedded derivatives 927 538 - ( 915 ) - 550 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (3) ( 2,585 ) ( 1,009 ) - - - ( 3,594 ) Other liabilities – GLB ceded embedded derivatives (3) ( 510 ) ( 21 ) - - - ( 531 ) Total, net $ 7,337 $ 522 $ 549 $ ( 316 ) $ 455 $ 8,547 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5). (2) Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (3) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in benefits on the Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, (in millions) as reported above: For the Year Ended December 31, 2022 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,335 $ ( 398 ) $ ( 81 ) $ ( 231 ) $ ( 33 ) $ 592 Foreign government bonds - - ( 30 ) - - ( 30 ) RMBS 21 - - - - 21 CMBS 17 - - - - 17 ABS 918 - - ( 235 ) ( 7 ) 676 Hybrid and redeemable preferred securities - - - - ( 12 ) ( 12 ) Trading securities 287 ( 229 ) - ( 210 ) - ( 152 ) Equity securities 34 ( 9 ) - - - 25 Mortgage loans on real estate 15 - - ( 242 ) - ( 227 ) Other assets – indexed annuity ceded embedded derivatives 124 - - 88 - 212 Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 710 ) - - 83 - ( 627 ) Total, net $ 2,041 $ ( 636 ) $ ( 111 ) $ ( 747 ) $ ( 52 ) $ 495 For the Year Ended December 31, 2021 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,861 $ ( 110 ) $ ( 109 ) $ ( 423 ) $ ( 30 ) $ 1,189 U.S. government bonds - - ( 5 ) - - ( 5 ) Foreign government bonds 80 - - - - 80 RMBS 2 - - - - 2 CMBS 8 - - - - 8 ABS 835 - - ( 233 ) - 602 Hybrid and redeemable preferred securities 12 ( 20 ) - - ( 30 ) ( 38 ) Trading securities 383 ( 25 ) - ( 148 ) - 210 Equity securities 6 ( 10 ) - - - ( 4 ) Mortgage loans on real estate 96 ( 101 ) ( 26 ) ( 78 ) - ( 109 ) Derivative investments 174 ( 124 ) ( 189 ) - - ( 139 ) Other assets – indexed annuity ceded embedded derivatives 55 - - ( 164 ) - ( 109 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 400 ) - - 572 - 172 Total, net $ 3,112 $ ( 390 ) $ ( 329 ) $ ( 474 ) $ ( 60 ) $ 1,859 For the Year Ended December 31, 2020 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,123 $ ( 318 ) $ ( 43 ) $ ( 195 ) $ ( 132 ) $ 435 Foreign government bonds - - ( 19 ) - - ( 19 ) ABS 571 - - ( 76 ) - 495 Hybrid and redeemable preferred securities 13 ( 4 ) - - - 9 Trading securities 300 ( 126 ) ( 40 ) ( 166 ) - ( 32 ) Equity securities 20 ( 2 ) - - - 18 Mortgage loans on real estate 71 ( 15 ) - - - 56 Derivative investments 520 ( 412 ) ( 471 ) - - ( 363 ) Other assets – indexed annuity ceded embedded derivatives 25 - - ( 940 ) - ( 915 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 284 ) - - 284 - - Total, net $ 2,359 $ ( 877 ) $ ( 573 ) $ ( 1,093 ) $ ( 132 ) $ ( 316 ) The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Trading securities (1) $ ( 81 ) $ 4 $ - Equity securities (1) 54 40 - Mortgage loans on real estate (1) ( 20 ) 12 - Derivative investments (1) 2 1,051 536 Other assets – LPR ceded derivative (2) ( 106 ) - - Embedded derivatives: (1) Indexed annuity and IUL contracts ( 95 ) 44 634 Other assets – GLB direct and ceded 486 2,315 671 Other liabilities – GLB ceded ( 483 ) ( 2,310 ) ( 671 ) Total, net $ (243 ) $ 1,156 $ 1,170 (1) Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (2) Included in benefits on the Consolidated Statements of Comprehensive Income (Loss). The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Years Ended December 31, 2022 2021 2020 Fixed maturity AFS securities: Corporate bonds $ ( 1,553 ) $ ( 183 ) $ 60 State and municipal bonds ( 1 ) - - Foreign government bonds ( 7 ) ( 10 ) 4 ABS ( 115 ) ( 9 ) 5 Hybrid and redeemable preferred securities ( 21 ) 26 ( 3 ) Mortgage loans on real estate ( 5 ) 4 - Total, net $ ( 1,702 ) $ ( 172 ) $ 66 The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: 1 For the Year Ended December 31, 2022 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 296 $ ( 2,962 ) $ ( 2,666 ) State and municipal bonds 36 - 36 Foreign government bonds - ( 5 ) ( 5 ) RMBS - ( 24 ) ( 24 ) CMBS - ( 17 ) ( 17 ) ABS 16 ( 332 ) ( 316 ) Hybrid and redeemable preferred securities - ( 4 ) ( 4 ) Trading securities 4 ( 19 ) ( 15 ) Equity securities - ( 15 ) ( 15 ) Derivative investments - ( 15 ) ( 15 ) Total, net $ 352 $ ( 3,393 ) $ ( 3,041 ) For the Year Ended December 31, 2021 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 164 $ ( 134 ) $ 30 Foreign government bonds - ( 102 ) ( 102 ) RMBS - ( 1 ) ( 1 ) CMBS - ( 8 ) ( 8 ) ABS 36 ( 330 ) ( 294 ) Trading securities 12 ( 34 ) ( 22 ) Derivative investments 24 ( 2,658 ) ( 2,634 ) Other assets – LPR ceded derivative 318 - 318 Total, net $ 554 $ ( 3,267 ) $ ( 2,713 ) For the Year Ended December 31, 2020 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 290 $ ( 216 ) $ 74 RMBS 1 ( 10 ) ( 9 ) ABS - ( 203 ) ( 203 ) Hybrid and redeemable preferred securities 18 - 18 Trading securities 1 ( 2 ) ( 1 ) Equity securities 5 - 5 Mortgage loans on real estate 787 - 787 Derivative investments - ( 216 ) ( 216 ) Total, net $ 1,102 $ ( 647 ) $ 455 Transfers into and out of Level 3 are generally the result of observable market information on financial instruments no longer being available or becoming available to our pricing vendors. For the years ended December 31, 2022, 2021 and 2020, transfers in and out of Level 3 were attributable primarily to the financial instruments’ observable market information no longer being available or becoming available. In 2022, transfers out of Level 3 included corporate bonds and ABS for which we changed valuation techniques. This change in valuation technique was primarily from a change to a third-party-provided pricing model that did not use significant unobservable inputs. In 2021, transfers out of Level 3 included derivative instruments for which we changed valuation techniques. This change in valuation technique was primarily from unobservable inputs in counterparty models to a mathematical model provided by a third party. These updated valuation techniques are considered industry standard and provide us with greater visibility into the economic valuation inputs. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2022: Weighted Average Fair Valuation Significant Assumption or Input Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 201 Discounted cash flow Liquidity/duration adjustment (2) ( 0.2 ) % - 4.2 % 2.1 % State and municipal bonds 35 Discounted cash flow Liquidity/duration adjustment (2) 1.2 % - 2.4 % 2.3 % ABS 15 Discounted cash flow Liquidity/duration adjustment (2) 1.4 % - 1.4 % 1.4 % Hybrid and redeemable preferred securities 3 Discounted cash flow Liquidity/duration adjustment (2) 1.5 % - 1.5 % 1.5 % Equity securities 4 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 4.5 % 4.5 % Other assets: GLB direct and ceded embedded derivatives 1,726 Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.35 % - 2.41 % 1.73 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 14.47 % Indexed annuity ceded embedded derivatives 525 Discounted cash flow Lapse rate (3) 0 % - 9 % (10) Mortality rate (7) (9) (10) LPR ceded derivative 212 Discounted cash flow Long-term lapse rate (3) 0 % - 1.55 % (10) NPR (6) 0.35 % - 2.41 % 1.75 % Mortality rate (7) (9) (10) Liabilities Future contract benefits – indexed annuity contracts embedded derivatives $ ( 4,845 ) Discounted cash flow Lapse rate (3) 0 % - 9 % (10) Mortality rate (7) (9) (10) Other liabilities – GLB ceded embedded derivatives ( 1,721 ) Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.35 % - 2.41 % 1.73 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 14.47 % (1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (3) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapse rates during the surrender charge period. (4) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (6) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input for direct and ceded embedded derivatives was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. The NPR input for LPR ceded derivative was weighted using a simple average. (7) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (8) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index. (9) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate. From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement. Changes in any of the significant inputs presented in the table above would have resulted in a significant change in the fair value measurement of the asset or liability as follows: Investments – An increase in the liquidity/duration adjustment input would have resulted in a decrease in the fair value measurement. Indexed annuity contracts embedded derivatives – For direct embedded derivatives, an increase in the lapse rate or mortality rate inputs would have resulted in a decrease in the fair value measurement. LPR ceded derivative – Assuming our LPR ceded derivative is in an asset position: an increase in our lapse rate, NPR or mortality rate inputs would have resulted in an increase in the fair value measurement. GLB embedded derivatives – Assuming our GLB direct embedded derivatives are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would have resulted in a decrease in the fair value measurement; and an increase in the utilization of guaranteed withdrawal or volatility inputs would have resulted in an increase in the fair value measurement. For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input would not have affected the other inputs. As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary. For more information, see Note 1 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information [Abstract] | |
Segment Information | 21. Segment I nformation We provide products and services and report results through our Life Insurance, Annuities, Group Protection and Retirement Plan Services segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. The following is a brief description of these segments and Other Operations. The Life Insurance segment focuses on the creation and protection of wealth through life insurance products, including term insurance, both single (including UL, corporate-owned UL and VUL and bank-owned UL and VUL products) and survivorship versions of IUL and VUL products, linked-benefit products (which are UL and VUL with riders providing for long-term care costs), and critical illness and long-term care riders, which can be attached to IUL or VUL policies. The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering variable annuities, fixed (including indexed) annuities and indexed variable annuities. The Group Protection segment offers group non-medical insurance products and services, including short- and long-term disability, statutory disability and paid family medical leave administration and absence management services, term life, dental, vision and accident, critical illness and hospital indemnity benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. The Retirement Plan Services segment provides employer-sponsored defined benefit and individual retirement accounts, as well as individual and group variable annuities, group fixed annuities and mutual-fund based programs in the retirement plan marketplace. Other Operations includes investments related to our excess capital; benefit plan obligations; the results of certain disability income business; our run-off institutional pension business, the majority of which was sold on a group annuity basis; debt costs; Spark program expense; and other corporate investments. Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: Realized gains and losses associated with the following (“excluded realized gain (loss)”): Sales or disposals and impairments of financial assets; Changes in the fair value of equity securities; Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”); GLB rider fees ceded to LNBAR; The net valuation premium of the GLB attributed rider fees; and Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”); Changes in reserves resulting from benefit ratio unlocking on our GLB riders and VUL products with secondary guarantees (“benefit ratio unlocking”); Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; Gains (losses) on modification or early extinguishment of debt; Losses from the impairment of intangible assets; Income (loss) from discontinued operations; Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; and Income (loss) from the initial adoption of new accounting standards, regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act. Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable : Excluded realized gain (loss); Revenue adjustments from the initial adoption of new accounting standards; Amortization of DFEL arising from changes in benefit ratio unlocking; and Amortization of deferred gains arising from reserve changes on business sold through reinsurance. The tables below reconcile our segment measures of performance to the GAAP measures presented in the Consolidated Statements of Comprehensive Income (Loss) (in millions): As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Revenues Operating revenues: Life Insurance $ 6,694 $ 7,700 $ 7,086 Annuities 4,372 4,565 4,067 Group Protection 5,303 4,994 4,792 Retirement Plan Services 1,258 1,307 1,197 Other Operations 133 158 166 Excluded realized gain (loss), pre-tax 8 504 ( 742 ) Amortization of DFEL associated with benefit ratio unlocking, pre-tax 2 - - Total revenues $ 17,770 $ 19,228 $ 16,566 As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Net Income (Loss) Income (loss) from operations: Life Insurance $ ( 1,841 ) $ 530 $ ( 12 ) Annuities 1,308 1,325 1,125 Group Protection 101 ( 128 ) 42 Retirement Plan Services 198 223 157 Other Operations ( 376 ) ( 242 ) ( 161 ) Excluded realized gain (loss), after-tax 6 397 ( 586 ) Benefit ratio unlocking, after-tax ( 47 ) 15 4 Impairment of intangibles ( 634 ) - - Net impact from the Tax Cuts and Jobs Act - - 37 Transaction and integration costs related to mergers, acquisitions and divestitures, after-tax - ( 11 ) ( 15 ) Net income (loss) $ ( 1,285 ) $ 2,109 $ 591 Other segment information (in millions) was as follows: As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Net Investment Income Life Insurance $ 2,464 $ 3,054 $ 2,689 Annuities 1,386 1,314 1,192 Group Protection 333 364 329 Retirement Plan Services 966 982 924 Other Operations 125 125 130 Total net investment income $ 5,274 $ 5,839 $ 5,264 As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Amortization of DAC and VOBA, Net of Interest Life Insurance $ 537 $ 1,029 $ 768 Annuities 249 433 376 Group Protection 106 107 114 Retirement Plan Services 17 31 28 Total amortization of DAC and VOBA, net of interest $ 909 $ 1,600 $ 1,286 As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Federal Income Tax Expense (Benefit) Life Insurance $ ( 520 ) $ 120 $ ( 28 ) Annuities 224 252 187 Group Protection 28 ( 34 ) 11 Retirement Plan Services 32 46 21 Other Operations ( 85 ) ( 70 ) ( 51 ) Excluded realized gain (loss) 2 107 ( 155 ) Benefit ratio unlocking ( 12 ) 4 1 Net impact from the Tax Cuts and Jobs Act - - ( 37 ) Transaction and integration costs related to mergers, acquisitions and divestitures ( 1 ) ( 5 ) ( 5 ) Total federal income tax expense (benefit) $ ( 332 ) $ 420 $ ( 56 ) As Restated As of December 31, 2022 2021 Assets Life Insurance $ 98,540 $ 106,977 Annuities 166,261 200,833 Group Protection 9,802 10,519 Retirement Plan Services 41,909 47,633 Other Operations 21,754 25,556 Total assets $ 338,266 $ 391,518 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Data | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |
Supplemental Disclosures of Cash Flow Data | 22 . Supplem ental Disclosures of Cash Flow Data The following summarizes our supplemental cash flow data (in millions): As Restated For the For the For the Year Ended Year Ended Year Ended December 31, December 31, December 31, 2022 2021 2020 Interest paid $ 126 $ 115 $ 127 Income taxes paid (received) ( 61 ) 29 78 Significant non-cash investing transactions: Equity securities received in exchange of fixed maturity AFS securities - - 17 Significant non-cash financing transactions: Net increase (decrease) in fixed maturity AFS securities and accrued investment income in connection with reinsurance transactions 54 ( 3,700 ) 58 |
Transactions With Affiliates
Transactions With Affiliates | 12 Months Ended |
Dec. 31, 2022 | |
Transactions With Affiliates [Abstract] | |
Transactions With Affiliates | 23. Transactions with A ffiliates The following summarizes transactions with affiliates (in millions) and the associated line item on the Consolidated Balance Sheets: As Restated As of As of December 31, December 31, 2022 2021 Assets with affiliates: Inter-company notes $ 1,216 $ 1,474 Fixed maturity AFS securities Ceded reinsurance contracts ( 67 ) ( 150 ) Deferred acquisition costs and value of business acquired Accrued inter-company interest receivable 13 11 Accrued investment income Ceded reinsurance contracts 4,388 2,867 Reinsurance recoverables, net of allowance for credit losses Ceded reinsurance contracts 676 529 Other assets Cash management agreement 124 3,854 Other assets Service agreement receivable 6 64 Other assets Liabilities with affiliates: Assumed reinsurance contracts 16 21 Future contract benefits Assumed reinsurance contracts 361 364 Other contract holder funds Ceded reinsurance contracts ( 7 ) ( 37 ) Other contract holder funds Inter-company short-term debt 562 1,084 Short-term debt Inter-company long-term debt 2,269 2,334 Long-term debt Ceded reinsurance contracts 4,421 7,467 Other liabilities Accrued inter-company interest payable 15 4 Other liabilities Service agreement payable 41 35 Other liabilities The following summarizes transactions with affiliates (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss): As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Revenues with affiliates: Premiums received on assumed (paid on ceded) reinsurance contracts $ ( 449 ) $ ( 463 ) $ ( 439 ) Insurance premiums Fees for management of general account ( 140 ) ( 138 ) ( 140 ) Net investment income Net investment income on ceded funds withheld treaties ( 161 ) ( 113 ) ( 119 ) Net investment income Net investment income on inter-company notes 40 29 40 Net investment income Realized gains (losses) on ceded reinsurance contracts: GLB reserves embedded derivatives 282 ( 1,305 ) ( 30 ) Realized gain (loss) Other gains (losses) 631 94 ( 175 ) Realized gain (loss) Reinsurance-related settlements ( 1,068 ) 1,626 193 Realized gain (loss) Amortization of deferred gain (loss) on reinsurance contracts 3 3 3 Amortization of deferred gain (loss) on business sold through reinsurance Benefits and expenses with affiliates: Interest credited on assumed reinsurance contracts 47 48 45 Interest credited Reinsurance (recoveries) benefits on ceded reinsurance ( 1,715 ) ( 443 ) ( 585 ) Benefits Ceded reinsurance contracts ( 86 ) - ( 1 ) Commissions and other expenses Service agreement payments (receipts) ( 53 ) ( 29 ) ( 17 ) Commissions and other expenses Interest expense on inter-company debt 120 107 116 Interest and debt expense Inter-Company Notes LNC issues inter-company notes to us for a predetermined face value to be repaid by LNC at a predetermined maturity with a specified interest rate. Cash Management Agreement In order to manage our capital more efficiently, we participate in an inter-company cash management program where LNC can lend to or borrow from us to meet short-term borrowing needs. The cash management program is essentially a series of demand loans, which are permitted under applicable insurance laws, among LNC and its affiliates that reduces overall borrowing costs by allowing LNC and its subsidiaries to access internal resources instead of incurring third-party transaction costs. The borrowing and lending limit is currently 3 % of our admitted assets as of December 31, 2022. Service Agreements In accordance with service agreements with LNC and other subsidiaries of LNC for personnel and facilities usage, general management services and investment management services, we receive services from and provide services to affiliated companies and receive an allocation of corporate overhead. Corporate overhead expenses are allocated based on specific methodologies for each function. The majority of the expenses are allocated based on the following methodologies: headcount, capital, investments by product, account values, weighted policies in force and sales. Ceded Reinsurance Contracts As discussed in Note 8, we cede insurance contracts to LNBAR. We cede certain guaranteed benefit risks (including certain GDB and GWB benefits) to LNBAR. As discussed in Note 5, we cede the GLB reserves embedded derivatives and the related hedge results to LNBAR. Substantially all reinsurance ceded to affiliated companies is with unauthorized companies. To take reserve credit for such reinsurance: the reinsurer holds assets in trust for our potential benefit; we hold assets from the reinsurer, including funds withheld under reinsurance treaties; and/or we are the beneficiary of LOCs that are obtained by the affiliate reinsurer and issued by banks. As of December 31, 2022 and 2021, the LOCs of which we are the beneficiary aggregated to $ 1.5 billion and $ 1 million, respectively. |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Results of Operations [Abstract] | |
Quarterly Results of Operations | 24. Quarterly Results of Operations (Unaudited ) As further described in Note 1, the previously reported financial information for all quarters in 2022 and 2021 has been restated and is reflected in the tables that follow. See “Restatement of Previously Issued Consolidated Financial Statements – Description of Misstatements” in Note 1 for a description of the restatement adjustments. The unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Restated amounts are computed independently for each quarter presented; therefore, the sum of the quarterly amounts may not equal the total amount for the respective year due to rounding. THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As Restated As of As of As of March 31, June 30, September 30, 2021 2021 2021 ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: $ 104,684 , $ 105,530 and $ 106,752 at March 31, 2021, June 30, 2021 and September 30, 2021, respectively; allowance for credit losses: $ 14 , $ 9 and $ 17 at March 31, 2021, June 30, 2021 and September 30, 2021, respectively) $ 115,695 $ 120,452 $ 120,794 Trading securities 4,287 4,154 4,114 Equity securities 142 191 260 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: $ 874 , $ 818 and $ 792 at March 31, 2021, June 30, 2021 and September 30, 2021, respectively) 17,159 17,487 17,633 Policy loans 2,487 2,395 2,364 Derivative investments 3,482 4,729 5,075 Other investments 3,023 3,221 3,302 Total investments 146,275 152,629 153,542 Cash and invested cash 1,086 1,914 2,194 Deferred acquisition costs and value of business acquired 7,606 6,207 5,918 Accrued investment income 1,255 1,215 1,251 Reinsurance recoverables, net of allowance for credit losses 18,583 18,257 18,207 Goodwill 1,778 1,778 1,778 Other assets 21,930 22,871 22,941 Separate account assets 171,339 178,795 175,667 Total assets $ 369,852 $ 383,666 $ 381,498 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 38,941 $ 39,621 $ 40,016 Other contract holder funds 106,461 108,249 108,765 Short-term debt 568 457 483 Long-term debt 2,332 2,332 2,333 Payables for collateral on investments 7,593 8,192 8,378 Other liabilities 20,415 21,934 22,308 Separate account liabilities 171,339 178,795 175,667 Total liabilities 347,649 359,580 357,950 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,919 11,930 11,940 Retained earnings 4,444 4,595 4,664 Accumulated other comprehensive income (loss) 5,840 7,561 6,944 Total stockholder’s equity 22,203 24,086 23,548 Total liabilities and stockholder’s equity $ 369,852 $ 383,666 $ 381,498 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As Restated As of As of As of March 31, June 30, September 30, 2022 2022 2022 ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: $ 106,939 , $ 108,963 and $ 110,323 at March 31, 2022, June 30, 2022 and September 30, 2022, respectively; allowance for credit losses: $ 20 , $ 12 and $ 18 at March 31, 2022, June 30, 2022 and September 30, 2022, respectively) $ 109,889 $ 102,954 $ 97,391 Trading securities 4,313 3,760 3,527 Equity securities 393 412 427 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: $ 537 , $ 528 and $ 495 at March 31, 2022, June 30, 2022 and September 30, 2022, respectively) 17,795 17,830 17,975 Policy loans 2,325 2,355 2,333 Derivative investments 4,574 3,167 3,398 Other investments 3,521 3,782 3,620 Total investments 142,810 134,260 128,671 Cash and invested cash 1,722 1,277 1,291 Deferred acquisition costs and value of business acquired 8,689 11,832 13,765 Accrued investment income 1,209 1,196 1,238 Reinsurance recoverables, net of allowance for credit losses 22,870 23,554 24,256 Goodwill 1,778 1,778 1,144 Other assets 22,284 20,447 21,560 Separate account assets 168,879 145,791 137,295 Total assets $ 370,241 $ 340,135 $ 329,220 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 39,186 $ 38,735 $ 41,162 Other contract holder funds 112,399 114,652 117,756 Short-term debt 737 698 771 Long-term debt 2,311 2,267 2,267 Payables for collateral on investments 8,905 7,525 6,855 Other liabilities 19,524 17,378 16,635 Separate account liabilities 168,879 145,791 137,295 Total liabilities 351,941 327,046 322,741 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,948 12,020 12,114 Retained earnings 4,799 4,962 2,398 Accumulated other comprehensive income (loss) 1,553 ( 3,893 ) ( 8,033 ) Total stockholder’s equity 18,300 13,089 6,479 Total liabilities and stockholder’s equity $ 370,241 $ 340,135 $ 329,220 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) As Restated For the Three Months Ended March 31, June 30, September 30, December 31, 2021 2021 2021 2021 Revenues Insurance premiums $ 1,324 $ 1,334 $ 1,341 $ 1,360 Fee income 1,529 1,603 1,931 1,567 Net investment income 1,446 1,509 1,510 1,374 Realized gain (loss) 212 ( 169 ) ( 32 ) 700 Amortization of deferred gain on business sold through reinsurance 7 7 8 10 Other revenues 170 162 149 176 Total revenues 4,688 4,446 4,907 5,187 Expenses Interest credited 738 740 742 691 Benefits 2,183 1,848 1,839 2,169 Commissions and other expenses 1,171 1,260 1,841 1,276 Interest and debt expense 29 28 29 28 Spark program expense 13 21 22 31 Total expenses 4,134 3,897 4,473 4,195 Income (loss) before taxes 554 549 434 992 Federal income tax expense (benefit) 97 83 65 176 Net income (loss) 457 466 369 816 Other comprehensive income (loss), net of tax ( 3,181 ) 1,721 ( 617 ) ( 400 ) Comprehensive income (loss) $ ( 2,724 ) $ 2,187 $ ( 248 ) $ 416 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) As Restated For the Three Months Ended March 31, June 30, September 30, December 31, 2022 2022 2022 2022 Revenues Insurance premiums $ 1,406 $ 1,436 $ 1,496 $ 1,503 Fee income 1,502 1,446 1,438 1,397 Net investment income 1,352 1,338 1,241 1,343 Realized gain (loss) 257 70 11 ( 124 ) Amortization of deferred gain on business sold through reinsurance 10 10 9 8 Other revenues 154 133 162 172 Total revenues 4,681 4,433 4,357 4,299 Expenses Interest credited 691 701 717 740 Benefits 2,199 2,051 4,498 2,053 Commissions and other expenses 1,191 1,077 1,205 1,326 Interest and debt expense 29 31 36 41 Spark program expense 31 44 44 48 Impairment of intangibles - - 634 - Total expenses 4,141 3,904 7,134 4,208 Income (loss) before taxes 540 529 ( 2,777 ) 91 Federal income tax expense (benefit) 82 86 ( 488 ) ( 14 ) Net income (loss) 458 443 ( 2,289 ) 105 Other comprehensive income (loss), net of tax ( 4,991 ) ( 5,446 ) ( 4,140 ) 960 Comprehensive income (loss) $ ( 4,533 ) $ ( 5,003 ) $ ( 6,429 ) $ 1,065 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY (Unaudited, in millions) As Restated For the Three Months Ended March 31, June 30, September 30, 2021 2021 2021 Common Stock Balance as of beginning-of-period $ 11,853 $ 11,919 $ 11,930 Capital contribution from Lincoln National Corporation 65 - - Stock compensation/issued for benefit plans 1 11 10 Balance as of end-of-period 11,919 11,930 11,940 Retained Earnings Balance as of beginning-of-period 4,167 4,444 4,595 Net income (loss) 457 466 369 Dividends paid to Lincoln National Corporation ( 180 ) ( 315 ) ( 300 ) Balance as of end-of-period 4,444 4,595 4,664 Accumulated Other Comprehensive Income (Loss) Balance as of beginning-of-period 9,021 5,840 7,561 Other comprehensive income (loss), net of tax ( 3,181 ) 1,721 ( 617 ) Balance as of end-of-period 5,840 7,561 6,944 Total stockholder’s equity as of end-of-period $ 22,203 $ 24,086 $ 23,548 As Restated For the Three Months Ended March 31, June 30, September 30, 2022 2022 2022 Common Stock Balance as of beginning-of-period $ 11,950 $ 11,948 $ 12,020 Capital contribution from Lincoln National Corporation - 65 80 Stock compensation/issued for benefit plans ( 2 ) 7 14 Balance as of end-of-period 11,948 12,020 12,114 Retained Earnings Balance as of beginning-of-period 4,366 4,799 4,962 Net income (loss) 458 443 ( 2,289 ) Dividends paid to Lincoln National Corporation ( 25 ) ( 280 ) ( 275 ) Balance as of end-of-period 4,799 4,962 2,398 Accumulated Other Comprehensive Income (Loss) Balance as of beginning-of-period 6,544 1,553 ( 3,893 ) Other comprehensive income (loss), net of tax ( 4,991 ) ( 5,446 ) ( 4,140 ) Balance as of end-of-period 1,553 ( 3,893 ) ( 8,033 ) Total stockholder’s equity as of end-of-period $ 18,300 $ 13,089 $ 6,479 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions) As Restated Three Six Nine Months Months Months Ended Ended Ended March 31, June 30, September 30, 2021 2021 2021 Cash Flows from Operating Activities Net income (loss) $ 457 $ 923 $ 1,292 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss ( 212 ) ( 43 ) ( 11 ) Sales and maturities (purchases) of trading securities, net 118 230 239 Amortization of deferred gain (loss) on business sold through reinsurance ( 7 ) ( 14 ) ( 22 ) Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization 50 106 325 Premiums and fees receivable ( 163 ) ( 98 ) ( 99 ) Accrued investment income ( 51 ) ( 11 ) ( 44 ) Insurance liabilities and reinsurance-related balances ( 263 ) 5 ( 301 ) Accrued expenses ( 35 ) 35 200 Federal income tax accruals 97 167 233 Cash management agreement ( 182 ) ( 1,223 ) ( 1,367 ) Other ( 203 ) ( 219 ) ( 226 ) Net cash provided by (used in) operating activities ( 394 ) ( 142 ) 219 Cash Flows from Investing Activities Purchases of available-for-sale securities and equity securities ( 3,803 ) ( 8,212 ) ( 11,776 ) Sales of available-for-sale securities and equity securities 592 1,277 1,441 Maturities of available-for-sale securities 1,862 4,570 6,897 Purchases of alternative investments ( 163 ) ( 360 ) ( 504 ) Sales and repayments of alternative investments 54 128 258 Issuance of mortgage loans on real estate ( 868 ) ( 1,609 ) ( 2,188 ) Repayment and maturities of mortgage loans on real estate 398 846 1,267 Repayment (issuance) of policy loans, net ( 76 ) 16 47 Net change in collateral on investments, derivatives and related settlements 987 1,704 2,132 Other ( 30 ) ( 67 ) ( 181 ) Net cash provided by (used in) investing activities ( 1,047 ) ( 1,707 ) ( 2,607 ) Cash Flows from Financing Activities Capital contribution from Lincoln National Corporation 65 65 65 Payment of long-term debt, including current maturities ( 60 ) ( 60 ) ( 60 ) Issuance (payment) of short-term debt 71 ( 40 ) ( 14 ) Proceeds from certain financing arrangements - 50 50 Deposits of fixed account values, including the fixed portion of variable 3,136 6,370 9,138 Withdrawals of fixed account values, including the fixed portion of variable ( 1,764 ) ( 3,260 ) ( 4,935 ) Transfers from (to) separate accounts, net ( 130 ) ( 255 ) ( 254 ) Common stock issued for benefit plans ( 10 ) ( 11 ) ( 12 ) Dividends paid to Lincoln National Corporation ( 180 ) ( 495 ) ( 795 ) Other ( 63 ) ( 63 ) ( 63 ) Net cash provided by (used in) financing activities 1,065 2,301 3,120 Net increase (decrease) in cash, invested cash and restricted cash ( 376 ) 452 732 Cash, invested cash and restricted cash as of beginning-of-year 1,462 1,462 1,462 Cash, invested cash and restricted cash as of end-of-period $ 1,086 $ 1,914 $ 2,194 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions) As Restated Three Six Nine Months Months Months Ended Ended Ended March 31, June 30, September 30, 2022 2022 2022 Cash Flows from Operating Activities Net income (loss) $ 458 $ 900 $ ( 1,389 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss ( 257 ) ( 327 ) ( 338 ) Sales and maturities (purchases) of trading securities, net ( 189 ) 109 164 Amortization of deferred gain (loss) on business sold through reinsurance ( 10 ) ( 20 ) ( 29 ) Impairment of intangibles - - 634 Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization 24 ( 10 ) 3 Premiums and fees receivable ( 91 ) ( 71 ) ( 2 ) Accrued investment income ( 44 ) ( 40 ) ( 77 ) Insurance liabilities and reinsurance-related balances 299 81 2,311 Accrued expenses ( 229 ) ( 340 ) ( 375 ) Federal income tax accruals 82 192 ( 308 ) Cash management agreement 872 2,427 2,803 Other ( 3 ) 224 478 Net cash provided by (used in) operating activities 912 3,125 3,875 Cash Flows from Investing Activities Purchases of available-for-sale securities and equity securities ( 3,910 ) ( 8,090 ) ( 11,961 ) Sales of available-for-sale securities and equity securities 105 236 1,231 Maturities of available-for-sale securities 1,566 3,165 4,339 Purchases of alternative investments ( 141 ) ( 300 ) ( 453 ) Sales and repayments of alternative investments 130 181 380 Issuance of mortgage loans on real estate ( 539 ) ( 1,366 ) ( 1,924 ) Repayment and maturities of mortgage loans on real estate 716 1,422 1,866 Repayment (issuance) of policy loans, net 25 ( 6 ) 16 Net change in collateral on investments, derivatives and related settlements ( 242 ) ( 2,322 ) ( 3,667 ) Other ( 76 ) ( 93 ) ( 83 ) Net cash provided by (used in) investing activities ( 2,366 ) ( 7,173 ) ( 10,256 ) Cash Flows from Financing Activities Capital contribution from Lincoln National Corporation - 65 145 Payment of long-term debt, including current maturities - ( 40 ) ( 40 ) Issuance (payment) of short-term debt ( 347 ) ( 385 ) ( 313 ) Payment related to sale-leaseback transactions ( 4 ) ( 47 ) ( 52 ) Proceeds from certain financing arrangements - 53 53 Deposits of fixed account values, including the fixed portion of variable 3,041 6,892 11,049 Withdrawals of fixed account values, including the fixed portion of variable ( 1,873 ) ( 3,334 ) ( 4,970 ) Transfers from (to) separate accounts, net 70 116 71 Common stock issued for benefit plans ( 17 ) ( 21 ) ( 21 ) Dividends paid to Lincoln National Corporation ( 25 ) ( 305 ) ( 580 ) Other - - ( 1 ) Net cash provided by (used in) financing activities 845 2,994 5,341 Net increase (decrease) in cash, invested cash and restricted cash ( 609 ) ( 1,054 ) ( 1,040 ) Cash, invested cash and restricted cash as of beginning-of-year 2,331 2,331 2,331 Cash, invested cash and restricted cash as of end-of-period $ 1,722 $ 1,277 $ 1,291 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of March 31, 2021 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2021 - $ 104,684 ; allowance for credit losses: 2021 - $ 14 ) $ 115,695 $ - $ 115,695 Trading securities 4,308 ( 21 ) 4,287 Equity securities 121 21 142 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2021 - $ 874 ) 17,159 - 17,159 Policy loans 2,487 - 2,487 Derivative investments 3,453 29 3,482 Other investments 3,024 ( 1 ) 3,023 Total investments 146,247 28 146,275 Cash and invested cash 1,086 - 1,086 Deferred acquisition costs and value of business acquired 7,606 - 7,606 Accrued investment income 1,255 - 1,255 Reinsurance recoverables, net of allowance for credit losses 18,583 - 18,583 Goodwill 1,778 - 1,778 Other assets 22,344 ( 414 ) 21,930 Separate account assets 171,339 - 171,339 Total assets $ 370,238 $ ( 386 ) $ 369,852 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 38,940 $ 1 $ 38,941 Other contract holder funds 106,461 - 106,461 Short-term debt 568 - 568 Long-term debt 2,332 - 2,332 Payables for collateral on investments 7,593 - 7,593 Other liabilities 20,795 ( 380 ) 20,415 Separate account liabilities 171,339 - 171,339 Total liabilities 348,028 ( 379 ) 347,649 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,919 - 11,919 Retained earnings 4,451 ( 7 ) 4,444 Accumulated other comprehensive income (loss) 5,840 - 5,840 Total stockholder’s equity 22,210 ( 7 ) 22,203 Total liabilities and stockholder’s equity $ 370,238 $ ( 386 ) $ 369,852 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of June 30, 2021 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2021 - $ 105,530 ; allowance for credit losses: 2021 - $ 9 ) $ 120,452 $ - $ 120,452 Trading securities 4,175 ( 21 ) 4,154 Equity securities 170 21 191 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2021 - $ 818 ) 17,487 - 17,487 Policy loans 2,395 - 2,395 Derivative investments 4,547 182 4,729 Other investments 3,223 ( 2 ) 3,221 Total investments 152,449 180 152,629 Cash and invested cash 1,914 - 1,914 Deferred acquisition costs and value of business acquired 6,207 - 6,207 Accrued investment income 1,215 - 1,215 Reinsurance recoverables, net of allowance for credit losses 18,257 - 18,257 Goodwill 1,778 - 1,778 Other assets 23,513 ( 642 ) 22,871 Separate account assets 178,795 - 178,795 Total assets $ 384,128 $ ( 462 ) $ 383,666 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 39,620 $ 1 $ 39,621 Other contract holder funds 108,249 - 108,249 Short-term debt 457 - 457 Long-term debt 2,332 - 2,332 Payables for collateral on investments 8,192 - 8,192 Other liabilities 22,394 ( 460 ) 21,934 Separate account liabilities 178,795 - 178,795 Total liabilities 360,039 ( 459 ) 359,580 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,930 - 11,930 Retained earnings 4,598 ( 3 ) 4,595 Accumulated other comprehensive income (loss) 7,561 - 7,561 Total stockholder’s equity 24,089 ( 3 ) 24,086 Total liabilities and stockholder’s equity $ 384,128 $ ( 462 ) $ 383,666 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of September 30, 2021 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2021 - $ 106,752 ; allowance for credit losses: 2021 - $ 17 ) $ 120,794 $ - $ 120,794 Trading securities 4,135 ( 21 ) 4,114 Equity securities 239 21 260 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2021 - $ 792 ) 17,633 - 17,633 Policy loans 2,364 - 2,364 Derivative investments 4,828 247 5,075 Other investments 3,305 ( 3 ) 3,302 Total investments 153,298 244 153,542 Cash and invested cash 2,194 - 2,194 Deferred acquisition costs and value of business acquired 5,917 1 5,918 Accrued investment income 1,251 - 1,251 Reinsurance recoverables, net of allowance for credit losses 18,207 - 18,207 Goodwill 1,778 - 1,778 Other assets 23,564 ( 623 ) 22,941 Separate account assets 175,667 - 175,667 Total assets $ 381,876 $ ( 378 ) $ 381,498 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 40,016 $ - $ 40,016 Other contract holder funds 108,762 3 108,765 Short-term debt 483 - 483 Long-term debt 2,333 - 2,333 Payables for collateral on investments 8,378 - 8,378 Other liabilities 22,683 ( 375 ) 22,308 Separate account liabilities 175,667 - 175,667 Total liabilities 358,322 ( 372 ) 357,950 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,940 - 11,940 Retained earnings 4,670 ( 6 ) 4,664 Accumulated other comprehensive income (loss) 6,944 - 6,944 Total stockholder’s equity 23,554 ( 6 ) 23,548 Total liabilities and stockholder’s equity $ 381,876 $ ( 378 ) $ 381,498 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of March 31, 2022 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $ 106,939 ; allowance for credit losses: 2022 - $ 20 ) $ 109,921 $ ( 32 ) $ 109,889 Trading securities 4,334 ( 21 ) 4,313 Equity securities 340 53 393 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $ 537 ) 17,795 - 17,795 Policy loans 2,325 - 2,325 Derivative investments 4,840 ( 266 ) 4,574 Other investments 3,527 ( 6 ) 3,521 Total investments 143,082 ( 272 ) 142,810 Cash and invested cash 1,722 - 1,722 Deferred acquisition costs and value of business acquired 8,688 1 8,689 Accrued investment income 1,209 - 1,209 Reinsurance recoverables, net of allowance for credit losses 22,870 - 22,870 Goodwill 1,778 - 1,778 Other assets 22,490 ( 206 ) 22,284 Separate account assets 168,879 - 168,879 Total assets $ 370,718 $ ( 477 ) $ 370,241 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 39,186 $ - $ 39,186 Other contract holder funds 112,387 12 112,399 Short-term debt 737 - 737 Long-term debt 2,311 - 2,311 Payables for collateral on investments 8,905 - 8,905 Other liabilities 20,484 ( 960 ) 19,524 Separate account liabilities 168,879 - 168,879 Total liabilities 352,889 ( 948 ) 351,941 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,948 - 11,948 Retained earnings 4,330 469 4,799 Accumulated other comprehensive income (loss) 1,551 2 1,553 Total stockholder’s equity 17,829 471 18,300 Total liabilities and stockholder’s equity $ 370,718 $ ( 477 ) $ 370,241 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of June 30, 2022 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $ 108,963 ; allowance for credit losses: 2022 - $ 12 ) $ 103,002 $ ( 48 ) $ 102,954 Trading securities 3,778 ( 18 ) 3,760 Equity securities 345 67 412 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $ 528 ) 17,830 - 17,830 Policy loans 2,355 - 2,355 Derivative investments 3,370 ( 203 ) 3,167 Other investments 3,758 24 3,782 Total investments 134,438 ( 178 ) 134,260 Cash and invested cash 1,277 - 1,277 Deferred acquisition costs and value of business acquired 11,832 - 11,832 Accrued investment income 1,196 - 1,196 Reinsurance recoverables, net of allowance for credit losses 23,554 - 23,554 Goodwill 1,778 - 1,778 Other assets 20,569 ( 122 ) 20,447 Separate account assets 145,791 - 145,791 Total assets $ 340,435 $ ( 300 ) $ 340,135 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 38,735 $ - $ 38,735 Other contract holder funds 114,634 18 114,652 Short-term debt 698 - 698 Long-term debt 2,267 - 2,267 Payables for collateral on investments 7,525 - 7,525 Other liabilities 18,158 ( 780 ) 17,378 Separate account liabilities 145,791 - 145,791 Total liabilities 327,808 ( 762 ) 327,046 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 12,020 - 12,020 Retained earnings 4,506 456 4,962 Accumulated other comprehensive income (loss) ( 3,899 ) 6 ( 3,893 ) Total stockholder’s equity 12,627 462 13,089 Total liabilities and stockholder’s equity $ 340,435 $ ( 300 ) $ 340,135 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of September 30, 2022 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $ 110,323 ; allowance for credit losses: 2022 - $ 18 ) $ 97,391 $ - $ 97,391 Trading securities 3,527 - 3,527 Equity securities 427 - 427 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $ 495 ) 17,975 - 17,975 Policy loans 2,333 - 2,333 Derivative investments 3,624 ( 226 ) 3,398 Other investments 3,627 ( 7 ) 3,620 Total investments 128,904 ( 233 ) 128,671 Cash and invested cash 1,291 - 1,291 Deferred acquisition costs and value of business acquired 13,757 8 13,765 Accrued investment income 1,238 - 1,238 Reinsurance recoverables, net of allowance for credit losses 24,256 - 24,256 Goodwill 1,144 - 1,144 Other assets 21,848 ( 288 ) 21,560 Separate account assets 137,295 - 137,295 Total assets $ 329,733 $ ( 513 ) $ 329,220 LIABILITIES AND STOCKHOLDER'S EQUITY Liabilities Future contract benefits $ 41,162 $ - $ 41,162 Other contract holder funds 117,729 27 117,756 Short-term debt 771 - 771 Long-term debt 2,267 - 2,267 Payables for collateral on investments 6,855 - 6,855 Other liabilities 17,629 ( 994 ) 16,635 Separate account liabilities 137,295 - 137,295 Total liabilities 323,708 ( 967 ) 322,741 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 12,114 - 12,114 Retained earnings 1,944 454 2,398 Accumulated other comprehensive income (loss) ( 8,033 ) - ( 8,033 ) Total stockholder’s equity 6,025 454 6,479 Total liabilities and stockholder’s equity $ 329,733 $ ( 513 ) $ 329,220 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended March 31, 2021 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,330 $ ( 6 ) $ 1,324 Fee income 1,524 5 1,529 Net investment income 1,447 ( 1 ) 1,446 Realized gain (loss) 211 1 212 Amortization of deferred gain on business sold through reinsurance 7 - 7 Other revenues 170 - 170 Total revenues 4,689 ( 1 ) 4,688 Expenses Interest credited 731 7 738 Benefits 2,182 1 2,183 Commissions and other expenses 1,171 - 1,171 Interest and debt expense 29 - 29 Spark program expense 13 - 13 Total expenses 4,126 8 4,134 Income (loss) before taxes 563 ( 9 ) 554 Federal income tax expense (benefit) 99 ( 2 ) 97 Net income (loss) 464 ( 7 ) 457 Other comprehensive income (loss), net of tax ( 3,181 ) - ( 3,181 ) Comprehensive income (loss) $ ( 2,717 ) $ ( 7 ) $ ( 2,724 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended June 30, 2021 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,328 $ 6 $ 1,334 Fee income 1,600 3 1,603 Net investment income 1,510 ( 1 ) 1,509 Realized gain (loss) ( 172 ) 3 ( 169 ) Amortization of deferred gain on business sold through reinsurance 7 - 7 Other revenues 162 - 162 Total revenues 4,435 11 4,446 Expenses Interest credited 732 8 740 Benefits 1,848 - 1,848 Commissions and other expenses 1,262 ( 2 ) 1,260 Interest and debt expense 28 - 28 Spark program expense 21 - 21 Total expenses 3,891 6 3,897 Income (loss) before taxes 544 5 549 Federal income tax expense (benefit) 82 1 83 Net income (loss) 462 4 466 Other comprehensive income (loss), net of tax 1,721 - 1,721 Comprehensive income (loss) $ 2,183 $ 4 $ 2,187 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended September 30, 2021 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,341 $ - $ 1,341 Fee income 1,927 4 1,931 Net investment income 1,511 ( 1 ) 1,510 Realized gain (loss) ( 24 ) ( 8 ) ( 32 ) Amortization of deferred gain on business sold through reinsurance 8 - 8 Other revenues 149 - 149 Total revenues 4,912 ( 5 ) 4,907 Expenses Interest credited 744 ( 2 ) 742 Benefits 1,840 ( 1 ) 1,839 Commissions and other expenses 1,839 2 1,841 Interest and debt expense 29 - 29 Spark program expense 22 - 22 Total expenses 4,474 ( 1 ) 4,473 Income (loss) before taxes 438 ( 4 ) 434 Federal income tax expense (benefit) 66 ( 1 ) 65 Net income (loss) 372 ( 3 ) 369 Other comprehensive income (loss), net of tax ( 617 ) - ( 617 ) Comprehensive income (loss) $ ( 245 ) $ ( 3 ) $ ( 248 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended December 31, 2021 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,360 $ - $ 1,360 Fee income 1,561 6 1,567 Net investment income 1,376 ( 2 ) 1,374 Realized gain (loss) 74 626 700 Amortization of deferred gain on business sold through reinsurance 18 ( 8 ) 10 Other revenues 176 - 176 Total revenues 4,565 622 5,187 Expenses Interest credited 686 5 691 Benefits 2,169 - 2,169 Commissions and other expenses 1,274 2 1,276 Interest and debt expense 28 - 28 Spark program expense 31 - 31 Total expenses 4,188 7 4,195 Income (loss) before taxes 377 615 992 Federal income tax expense (benefit) 46 130 176 Net income (loss) 331 485 816 Other comprehensive income (loss), net of tax ( 400 ) - ( 400 ) Comprehensive income (loss) $ ( 69 ) $ 485 $ 416 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended March 31, 2022 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,406 $ - $ 1,406 Fee income 1,502 - 1,502 Net investment income 1,353 ( 1 ) 1,352 Realized gain (loss) 266 ( 9 ) 257 Amortization of deferred gain on business sold through reinsurance 18 ( 8 ) 10 Other revenues 151 3 154 Total revenues 4,696 ( 15 ) 4,681 Expenses Interest credited 691 - 691 Benefits 2,199 - 2,199 Commissions and other expenses 1,192 ( 1 ) 1,191 Interest and debt expense 29 - 29 Spark program expense 31 - 31 Total expenses 4,142 ( 1 ) 4,141 Income (loss) before taxes 554 ( 14 ) 540 Federal income tax expense (benefit) 85 ( 3 ) 82 Net income (loss) 469 ( 11 ) 458 Other comprehensive income (loss), net of tax ( 4,993 ) 2 ( 4,991 ) Comprehensive income (loss) $ ( 4,524 ) $ ( 9 ) $ ( 4,533 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended June 30, 2022 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,436 $ - $ 1,436 Fee income 1,446 - 1,446 Net investment income 1,309 29 1,338 Realized gain (loss) 82 ( 12 ) 70 Amortization of deferred gain on business sold through reinsurance 18 ( 8 ) 10 Other revenues 163 ( 30 ) 133 Total revenues 4,454 ( 21 ) 4,433 Expenses Interest credited 701 - 701 Benefits 2,051 - 2,051 Commissions and other expenses 1,081 ( 4 ) 1,077 Interest and debt expense 31 - 31 Spark program expense 44 - 44 Total expenses 3,908 ( 4 ) 3,904 Income (loss) before taxes 546 ( 17 ) 529 Federal income tax expense (benefit) 90 ( 4 ) 86 Net income (loss) 456 ( 13 ) 443 Other comprehensive income (loss), net of tax ( 5,450 ) 4 ( 5,446 ) Comprehensive income (loss) $ ( 4,994 ) $ ( 9 ) $ ( 5,003 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended September 30, 2022 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,496 $ - $ 1,496 Fee income 1,438 - 1,438 Net investment income 1,272 ( 31 ) 1,241 Realized gain (loss) 5 6 11 Amortization of deferred gain on business sold through reinsurance 17 ( 8 ) 9 Other revenues 135 27 162 Total revenues 4,363 ( 6 ) 4,357 Expenses Interest credited 717 - 717 Benefits 4,498 - 4,498 Commissions and other expenses 1,208 ( 3 ) 1,205 Interest and debt expense 36 - 36 Spark program expense 44 - 44 Impairment of intangibles 634 - 634 Total expenses 7,137 ( 3 ) 7,134 Income (loss) before taxes ( 2,774 ) ( 3 ) ( 2,777 ) Federal income tax expense (benefit) ( 487 ) ( 1 ) ( 488 ) Net income (loss) ( 2,287 ) ( 2 ) ( 2,289 ) Other comprehensive income (loss), net of tax ( 4,134 ) ( 6 ) ( 4,140 ) Comprehensi |
SCHEDULE I - CONSOLIDATED SUMMA
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES [Abstract] | |
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY SCHEDULE I – CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES (in millions) Column A Column B Column C Column D As Restated As of December 31, 2022 Fair Carrying Type of Investment Cost Value Value Fixed Maturity Available-For-Sale Securities (1) Bonds: U.S. government bonds $ 377 $ 351 $ 351 Foreign government bonds 339 311 311 State and municipal bonds 5,198 4,885 4,885 Public utilities 13,730 12,084 12,084 All other corporate bonds 75,220 67,082 67,082 Mortgage-backed and asset-backed securities 15,724 14,402 14,402 Hybrid and redeemable preferred securities 356 350 350 Total fixed maturity available-for-sale securities 110,944 99,465 99,465 Equity Securities Common stocks: Banks, trusts and insurance companies 48 47 47 Industrial, miscellaneous and all other 55 146 146 Non-redeemable preferred securities 285 234 234 Total equity securities 388 427 427 Trading securities 3,782 3,446 3,446 Mortgage loans on real estate (2) 18,336 16,477 18,211 Policy loans 2,345 N/A 2,345 Derivative investments 1,869 3,519 3,519 Other investments 3,577 3,577 3,577 Total investments $ 141,241 $ 130,990 (1) For investments deemed to have declines in value that are impairment-related, an allowance for credit losses is recorded to reduce the carrying value to their estimated realizable value. (2) Mortgage loans on real estate are generally carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of allowance for credit losses. We carry certain mortgage loans at fair value where the fair value option has been elected. |
SCHEDULE III _ CONDENSED SUPPLE
SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION [Abstract] | |
SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (in millions) Column A Column B Column C Column D Column E Column F Other Future Contract DAC and Contract Unearned Holder Insurance Segment VOBA Benefits Premiums (1) Funds Premiums (2) As Restated As of or For the Year Ended December 31, 2022 Life Insurance $ 8,346 $ 19,797 $ - $ 43,684 $ 908 Annuities 4,796 5,556 - 45,493 165 Group Protection 164 6,580 - 213 4,768 Retirement Plan Services 309 18 - 25,133 - Other Operations - 9,647 - 5,837 - Total $ 13,615 $ 41,598 $ - $ 120,360 $ 5,841 As Restated As of or For the Year Ended December 31, 2021 Life Insurance $ 1,514 $ 19,929 $ - $ 39,197 $ 783 Annuities 4,142 4,180 - 41,620 116 Group Protection 171 6,326 - 214 4,450 Retirement Plan Services 159 15 - 23,635 - Other Operations - 9,966 - 6,517 10 Total $ 5,986 $ 40,416 $ - $ 111,183 $ 5,359 As of or For the Year Ended December 31, 2020 Life Insurance $ 1,572 $ 19,621 $ - $ 39,233 $ 711 Annuities 3,939 4,183 - 35,234 121 Group Protection 187 5,986 - 213 4,280 Retirement Plan Services 126 11 - 22,912 - Other Operations - 10,345 - 7,266 10 Total $ 5,824 $ 40,146 $ - $ 104,858 $ 5,122 (1) Unearned premiums are included in Column C, future contract benefits. (2) Includes amounts ceded to LNBAR. THE LINCOLN NATIONAL LIFE INSURANCE COMPANY SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Continued) (in millions) Column A Column G Column H Column I Column J Column K Benefits Amortization Net and of DAC Other Investment Interest and Operating Premiums Segment Income Credited VOBA Expenses Written As Restated As of or For the Year Ended December 31, 2022 Life Insurance $ 2,464 $ 7,877 $ 537 $ 673 $ - Annuities 1,386 1,182 249 1,440 - Group Protection 333 3,847 106 1,219 - Retirement Plan Services 966 633 17 379 - Other Operations 125 111 - 347 - Total $ 5,274 $ 13,650 $ 909 $ 4,058 $ - As Restated As of or For the Year Ended December 31, 2021 Life Insurance $ 3,054 $ 5,327 $ 1,029 $ 693 $ - Annuities 1,314 990 433 1,547 - Group Protection 364 3,896 107 1,154 - Retirement Plan Services 982 620 31 387 - Other Operations 125 117 - 254 - Total $ 5,839 $ 10,950 $ 1,600 $ 4,035 $ - As of or For the Year Ended December 31, 2020 Life Insurance $ 2,689 $ 5,668 $ 768 $ 690 $ - Annuities 1,192 1,026 376 1,350 - Group Protection 329 3,505 114 1,120 - Retirement Plan Services 924 617 28 374 - Other Operations 130 133 - 140 - Total $ 5,264 $ 10,949 $ 1,286 $ 3,674 $ - |
SCHEDULE IV _ CONSOLIDATED REIN
SCHEDULE IV – CONSOLIDATED REINSURANCE | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE IV – CONSOLIDATED REINSURANCE [Abstract] | |
SCHEDULE IV – CONSOLIDATED REINSURANCE | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY SCHEDULE IV – CONSOLIDATED REINSURANCE (in millions) Column A Column B Column C Column D Column E Column F Ceded Assumed Percentage to from of Amount Gross Other Other Net Assumed Description Amount Companies Companies Amount to Net As of or For the Year Ended December 31, 2022 Individual life insurance in force (1) $ 1,997,539 $ 848,979 $ 9,010 $ 1,157,570 0.8 % Premiums: Life insurance and annuities (2) 10,564 2,247 98 8,415 1.2 % Accident and health insurance 3,243 38 4 3,209 0.1 % Total premiums $ 13,807 $ 2,285 $ 102 $ 11,624 As Restated As of or For the Year Ended December 31, 2021 Individual life insurance in force (1) $ 1,808,596 $ 789,638 $ 10,651 $ 1,029,609 1.0 % Premiums: Life insurance and annuities (2) 10,978 2,095 91 8,974 1.0 % Accident and health insurance 3,050 41 6 3,015 0.2 % Total premiums $ 14,028 $ 2,136 $ 97 $ 11,989 As of or For the Year Ended December 31, 2020 Individual life insurance in force (1) $ 1,611,276 $ 684,067 $ 11,141 $ 938,350 1.2 % Premiums: Life insurance and annuities (2) 10,329 1,977 94 8,446 1.1 % Accident and health insurance 2,830 41 7 2,796 0.3 % Total premiums $ 13,159 $ 2,018 $ 101 $ 11,242 (1) Includes Group Protection segment and Other Operations in-force amounts. (2) Includes insurance fees on universal life and other interest-sensitive products. |
Nature of Operations, Basis o_2
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Nature Of Operations | Nature of Operations The Lincoln National Life Insurance Company (“LNL” or the “Company,” which also may be referred to as “we,” “our” or “us”), a wholly-owned subsidiary of Lincoln National Corporation (“LNC” or the “Parent Company”), is domiciled in the state of Indiana. We own 100 % of the outstanding common stock of one insurance company subsidiary, Lincoln Life & Annuity Company of New York (“LLANY”). We also own several non-insurance companies, including Lincoln Financial Distributors, our wholesale distributor, and Lincoln Financial Advisors Corporation, part of LNC’s retail distributor, Lincoln Financial Network. LNL’s principal businesses consist of underwriting life insurance, annuities and deposit-type contracts through multiple distribution channels. LNL is licensed and sells its products throughout the U.S. and several U.S. territories. See Note 21 for additional information. |
Basis Of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. Restatement of Previously Issued Consolidated Financial Statements We have restated herein our audited consolidated financial statements for the years ended December 31, 2022, and December 31, 2021. We have also restated interim financial statement periods for the quarters of 2022 and 2021 and restated impacted amounts within the accompanying notes to the consolidated financial statements. Restatement Background Previously, we had entered into a block reinsurance agreement with Resolution Life to reinsure approximately $ 9.4 billion of in-force executive benefit and universal life reserves. A portion of the transaction was structured as coinsurance, and we paid as consideration investments with a book value of approximately $ 4.6 billion and a fair value of approximately $ 5.2 billion as of October 1, 2021, triggering a realized gain of $ 635 million. This contributed to a total deferred gain of $ 797 million. At the time of the transaction, we concluded that the $ 635 million realized gain would be deferred and amortized into income over the benefit period of the reinsurance treaty. The Company’s management has concluded that a gain or loss amount pertaining to the transfer of investments to the assuming company in a coinsurance transaction should be recorded as a realized gain or loss at the time of the transfer. As a result, it was determined that the $ 635 million deferred gain pertaining to the sale of investments should have been recognized immediately in the fourth quarter of 2021 when the investments were transferred to Resolution Life. This misstatement is described in more detail in “Description of Misstatements – Misstatement Associated with the Coinsurance Reinsurance Transaction” below. As part of the restatement, we also recorded adjustments to correct for previously identified other immaterial misstatements in the impacted periods that are described in more detail in “Description of Misstatements – Other Immaterial Misstatements” below. Accordingly, we have restated herein the consolidated financial statements for the years ended December 31, 2022 and December 31, 2021, in accordance with Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. The unaudited restated interim financial information for the quarterly periods in 2022 and 2021 is included in Note 24. The categories of misstatements and their impact on the previously issued consolidated financial statements are described in more detail below. Description of Misstatements Misstatement Associated with the Coinsurance Reinsurance Transaction We recorded adjustments to recognize the realized gain related to the transaction through net income in 2021 instead of deferring and amortizing this gain into net income. These adjustments, which are discussed below, are reflected in the restatement tables below and in Note 24. For the year ended December 31, 2021, the correction of the misstatement resulted in a $ 635 million increase to realized gain (loss), an $ 8 million decrease to amortization of deferred gain on business sold through reinsurance, a $ 4 million increase to commissions and other expenses related to state income taxes associated with the realized gain and a $ 131 million increase to federal income tax expense on our Consolidated Statements of Comprehensive Income (Loss). Additionally, the correction of the misstatement resulted in a $ 492 million decrease to other liabilities and a $ 492 million increase to retained earnings on our Consolidated Balance Sheets as of December 31, 2021. For the year ended December 31, 2022, the correction of the misstatement resulted in a $ 32 million decrease to amortization of deferred gain on business sold through reinsurance on our Consolidated Statements of Comprehensive Income (Loss). Additionally, the correction of the misstatement resulted in a $ 467 million increase to retained earnings on our Consolidated Balance Sheets as of December 31, 2022. Other Immaterial Misstatements As part of the restatement, we made corrections to previously identified errors that the Company determined to be immaterial, both individually and in the aggregate (the “Other Adjustments”) for the years ended December 31, 2022, and December 31, 2021. The Other Adjustments resulted in an increase of $ 16 million to income (loss) before taxes and a decrease of $ 16 million to income (loss) before taxes for the years ended December 31, 2022, and December 31, 2021, respectively. The Other Adjustments included adjustments and reclassifications on our Consolidated Balance Sheets as of December 31, 2022, and December 31, 2021, that had no impact on stockholder’s equity. We reclassified derivative investments that resulted in a decrease to derivative investments of $ 142 million, a decrease to other assets of $ 70 million and a decrease to other liabilities of $ 212 million as of December 31, 2022. We reclassified derivative investments that resulted in a decrease to other assets of $ 760 million, an increase to derivative investments of $ 260 million and a decrease to other liabilities of $ 500 million as of December 31, 2021. The combined impacts of the correction of the misstatement associated with the coinsurance reinsurance transaction and the Other Adjustments are reflected in the “restatement impacts” column of the restatement tables below and in Note 24. Description of Restatement Tables The following tables present the amounts previously reported and a reconciliation to the restated amounts reported on the restated Consolidated Balance Sheets as of December 31, 2022, and December 31, 2021, and the restated Consolidated Statements of Comprehensive Income (Loss), the restated Consolidated Statements of Stockholder’s Equity and the restated Consolidated Statements of Cash Flows for the years ended December 31, 2022, and December 31, 2021. The amounts as previously reported for the years ended December 31, 2022, and December 31, 2021, were derived from our Annual Report on Form 10-K for the year ended December 31, 2022, originally filed on March 7, 2023. THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (in millions, except share data) As of December 31, 2021 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2021 - $ 104,491 ; allowance for credit losses: 2021 - $ 19 ) $ 117,511 $ ( 35 ) $ 117,476 Trading securities 4,427 ( 22 ) 4,405 Equity securities 314 57 371 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2021 - $ 739 ) 17,893 - 17,893 Policy loans 2,349 - 2,349 Derivative investments 5,437 260 5,697 Other investments 3,449 ( 4 ) 3,445 Total investments 151,380 256 151,636 Cash and invested cash 2,331 - 2,331 Deferred acquisition costs and value of business acquired 5,985 1 5,986 Accrued investment income 1,157 - 1,157 Reinsurance recoverables, net of allowance for credit losses 22,755 - 22,755 Goodwill 1,778 - 1,778 Other assets 24,046 ( 754 ) 23,292 Separate account assets 182,583 - 182,583 Total assets $ 392,015 $ ( 497 ) $ 391,518 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 40,416 $ - $ 40,416 Other contract holder funds 111,174 9 111,183 Short-term debt 1,084 - 1,084 Long-term debt 2,334 - 2,334 Payables for collateral on investments 8,936 - 8,936 Other liabilities 23,108 ( 986 ) 22,122 Separate account liabilities 182,583 - 182,583 Total liabilities 369,635 ( 977 ) 368,658 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,950 - 11,950 Retained earnings 3,886 480 4,366 Accumulated other comprehensive income (loss) 6,544 - 6,544 Total stockholder’s equity 22,380 480 22,860 Total liabilities and stockholder’s equity $ 392,015 $ ( 497 ) $ 391,518 |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNL and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. We use the equity method of accounting to recognize all of our investments in limited liability partnerships. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in the consolidated financial statements. |
Accounting Estimates and Assumptions | Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. In applying these estimates and assumptions, management makes subjective and complex judgments that frequently require assumptions about matters that are uncertain and inherently subject to change, including matters related to or impacted by the COVID-19 pandemic. Actual results could differ from these estimates and assumptions. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain financial assets, derivatives, allowances for credit losses, deferred acquisition costs (“DAC”) , value of business acquired (“VOBA”) , deferred sales inducements (“DSI”), goodwill and other intangibles, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”) , pension plans, stock-based incentive compensation, income taxes including the recoverability of our deferred tax assets, and the potential effects of resolving litigated matters. |
Business Combinations | Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in the consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. |
Fair Value Measurement | Fair Value Measurement 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 (“NPR”), which would include our own credit risk. Our estimate of 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 in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our 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 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the 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. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. |
Fixed Maturity Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs | Fixed Maturity Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available-for-sale (“AFS”) consist of fixed maturity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI , future contract benefits, other contract holder funds and deferred income taxes. We measure the fair value of our securities classified as fixed maturity AFS 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 security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our fixed maturity AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all fixed maturity AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our fixed maturity AFS securities discussed above: Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”) and collateralized loan obligations (“CLOs”). State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. Hybrid and redeemable preferred securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred securities. In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. |
Fixed Maturity AFS Securities – Evaluation for Recovery of Amortized Cost | Fixed Maturity AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require a credit loss allowance. For our debt securities, we generally consider the following to determine whether our debt securities with unrealized losses are credit impaired: The estimated range and average period until recovery; The estimated range and average holding period to maturity; Remaining payment terms of the security; 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. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an impairment has occurred, and a credit loss allowance is recorded, with a corresponding charge to realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The remainder of the decline to fair value related to factors other than credit loss is recorded in other comprehensive income (“OCI”) to unrealized losses on fixed maturity AFS securities on the Consolidated Statements of Stockholder’s Equity, as this amount is considered a noncredit impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: The current economic environment and market conditions; Our business strategy and current business plans; The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; The capital risk limits approved by management; and Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: Historical and implied volatility of the security; The extent to which the fair value has been less than amortized cost; Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; Failure, if any, of the issuer of the security to make scheduled payments; and Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of a credit loss impairment through a credit loss allowance, we continue to reassess the expected cash flows of the debt security at each subsequent measurement date as necessary. If the measurement of credit loss changes, we recognize a provision for (or reversal of) credit loss expense through realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss), limited by the amount that amortized cost exceeds fair value. Losses are charged against the allowance for credit losses when management believes the uncollectibility of a debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on debt securities is written-off when deemed uncollectible. To determine the recovery value of a corporate bond or CLO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; Fundamentals of the industry in which the issuer operates; Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); Expectations regarding defaults and recovery rates; Changes to the rating of the security by a rating agency; and Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter, we review the cash flows for the MBS portfolio, including current credit enhancements and trends in the underlying collateral performance to determine whether or not they are sufficient to provide for the recovery of our amortized cost. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; Level of borrower creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; Susceptibility to fair value fluctuations for changes in the interest rate environment; Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security requires a credit loss allowance. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for a credit loss by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired through a credit loss allowance or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no credit loss allowance is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then an impairment through a credit loss allowance is recognized. We further monitor the cash flows of all of our debt securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our debt securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment through a credit loss allowance for the security. |
Trading Securities | Trading Securities Trading securities consist of fixed maturity securities in designated portfolios, some of which support modified coinsurance and coinsurance with funds withheld reinsurance agreements. Investment results for the portfolios that support modified coinsurance and coinsurance with funds withheld reinsurance agreements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance agreements. Trading securities are carried at fair value, and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance agreements are recorded in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss) as they occur. |
Equity Securities | Equity Securities Equity securities are carried at fair value, and changes in fair value are recorded in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity securities consist primarily of common stock of publicly-traded companies, privately placed securities and mutual fund shares. We measure the fair value of our equity 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 equity security. Fair values of publicly-traded equity securities are determined using quoted prices in active markets for identical or comparable securities. When quoted prices are not available, we use valuation methodologies most appropriate for the specific asset. Fair values for private placement securities are determined using discounted cash flow, earnings multiple and other valuation models. The fair values of mutual fund shares that transact regularly are based on transaction prices of identical fund shares. |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate Mortgage loans on real estate consist of commercial and residential mortgage loans and are generally carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of allowance for credit losses. We carry certain commercial mortgage loans at fair value where the fair value option has been elected. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on the Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our policy for commercial mortgage loans is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. Our policy for residential mortgage loans is to report loans that are 90 or more days past due, which equates to three or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on the Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are likewise credited to the allowance for credit losses. Accrued interest on mortgage loans is written-off when deemed uncollectible. In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. Our model estimates expected credit losses over the contractual terms of the loans, which are the periods over which we are exposed to credit risk, adjusted for expected prepayments. Credit loss estimates are segmented by commercial mortgage loans, residential mortgage loans, and unfunded commitments related to commercial mortgage loans. The allowance for credit losses for pooled loans of similar risk (i.e., commercial and residential mortgage loans) is estimated using relevant historical credit loss information adjusted for current conditions and reasonable and supportable forecasts of future conditions. Historical credit loss experience provides the basis for the estimation of expected credit losses with adjustments for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term lengths as well as adjustments for changes in environmental conditions, such as unemployment rates, property values, or other factors that management deems relevant. We apply probability weights to the positive, base and adverse scenarios we use. For periods beyond our reasonable and supportable forecast, we use implicit mean reversion over the remaining life of the recoverable, meaning our model will inherently revert to the baseline scenario as the baseline is representative of the historical average over a longer period of time. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a specific credit loss allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Allowance for credit losses are maintained at a level we believe is adequate to absorb current expected lifetime credit losses. Our periodic evaluation of the adequacy of the allowance for credit losses is based on historical loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions, reasonable and supportable forecasts about the future and other relevant factors. Mortgage loans on real estate are presented net of the allowance for credit losses on the Consolidated Balance Sheets. Changes in the allowance are reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). Mortgage loans on real estate deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are credited to the allowance for credit losses, limited to the aggregate of amounts previously charged-off and expected to be charged-off. Our commercial loan portfolio is primarily comprised of long-term loans secured by existing commercial real estate. We believe all of the commercial loans in our portfolio share three primary risks: borrower credit worthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods of monitoring and assessing credit risk are consistent for our entire portfolio. For our commercial mortgage loan portfolio, trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) an allowance for credit losses. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase a credit loss allowance for a specific loan based upon this analysis. We measure and assess the credit quality of our commercial mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100 % indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. These credit quality metrics are monitored and reviewed at least annually. We have off-balance sheet commitments related to commercial mortgage loans. As such, an allowance for credit losses is developed based on the commercial mortgage loan process outlined above, along with an internally developed conversion factor. Our residential loan portfolio is primarily comprised of first lien mortgages secured by existing residential real estate. In contrast to the commercial mortgage loan portfolio, residential mortgage loans are primarily smaller-balance homogenous loans that share similar risk characteristics. Therefore, these pools of loans are collectively evaluated for inherent credit losses. Such evaluations consider numerous factors, including, but not limited to borrower credit scores, collateral values, loss forecasts, geographic location, delinquency rates and economic trends. These evaluations and assessments are revised as conditions change and new information becomes available, including updated forecasts, which can cause the allowance for credit losses to increase or decrease over time as such evaluations are revised. Generally, residential mortgage loan pools exclude loans that are nonperforming, as those loans are evaluated individually using the evaluation framework for specific allowance for credit losses described above. For residential mortgage loans, our primary credit quality indicator is whether the loan is performing or nonperforming. We generally define nonperforming residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status. There is generally a higher risk of experiencing credit losses when a residential mortgage loan is nonperforming. We monitor and update aging schedules and nonaccrual status on a monthly basis. |
Policy Loans | Policy Loans Policy loans represent loans we issue to contract holders that use the cash surrender value of their life insurance policy as collateral. Policy loans are carried at unpaid principal balances. |
Derivative & Other Instruments | Derivative Instruments We hedge certain portions of our exposure to interest rate risk, foreign currency exchange risk, equity market risk and credit risk by entering into derivative transactions. Our derivative instruments are recognized as either assets or liabilities on the Consolidated Balance Sheets at estimated fair value. We have master netting agreements with each of our derivative counterparties that allow for the netting of our derivative asset and liability positions by counterparty. W e categorized derivatives into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique as discussed above in “Fair Value Measurement.” The accounting for changes in the estimated fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged: as a cash flow hedge or a fair value hedge. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into net income in the same period or periods during which the hedged transaction affects net income. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of designated future cash flows of the hedged item (hedge ineffectiveness), if any, is recognized in net income during the period of change. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in net income during the period of change in estimated fair values. For derivative instruments not designated as hedging instruments, but that are economic hedges, the gain or loss is recognized in net income. We purchase and issue financial instruments and products that contain embedded derivative instruments that are recorded with the associated host contract. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes and reported within other assets or other liabilities on the Consolidated Balance Sheets. The embedded derivative is carried at fair value with changes in fair value recognized in net income during the period of change. We employ several different methods for determining the fair value of our derivative instruments. The fair value of our derivative contracts are measured based on current settlement values, which are based on quoted market prices, industry standard models that are commercially available and broker quotes. These techniques project cash flows of the derivatives using current and implied future market conditions. We calculate the present value of the cash flows to measure the current fair market value of the derivative. Other Investments Other investments consist primarily of alternative investments, cash collateral receivables related to our derivative instruments, Federal Home Loan Bank (“FHLB”) common stock and short-term investments. Alternative investments consist primarily of investments in limited partnerships (“LPs”). We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our private equity investments are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. In uncleared derivative transactions, we and the counterparty enter into a credit support annex requiring either party to post collateral, which may be in the form of cash, equal to the net derivative exposure. Cash collateral we have posted to a counterparty is recorded within other investments. Cash collateral a counterparty has posted is recorded within payables for collateral on investments. We also have investments in FHLB common stock, carried at cost, that enable access to the FHLB lending program. For more information on our collateralized financing arrangements, see “Payables for Collateral on Investments” below. Short-term investments consist of securities with original maturities of one year or less, but greater than three months. Securities included in short-term investments are carried at fair value, with valuation methods and inputs consistent with those applied to fixed maturity AFS securities. |
Cash and Invested Cash | Cash and Invested Cash Cash and invested cash is carried at cost and includes all highly liquid debt instruments purchased with an original maturity of three months or less . |
DAC, VOBA, DSI and DFEL | DAC, VOBA, DSI and DFEL Acquisition costs directly related to successful contract acquisitions or renewals of universal life insurance (“UL”), variable universal life insurance (“VUL”), traditional life insurance, group life and disability insurance, annuities and other investment contracts have been deferred (i.e., DAC) to the extent recoverable. Such acquisition costs are capitalized in the period they are incurred and primarily include commissions, certain bonuses, portion of total compensation and benefits of certain employees involved in the acquisition process and medical and inspection fees. VOBA is an intangible asset that reflects the estimated fair value of in-force contracts in a life insurance company acquisition and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the business in force at the acquisition date. Bonus credits and excess interest for dollar cost averaging contracts are considered DSI, and the unamortized balance is reported within other assets on the Consolidated Balance Sheets. Contract sales charges that are collected in the early years of an insurance contract are deferred (i.e., DFEL), and the unamortized balance is reported in other contract holder funds on the Consolidated Balance Sheets. Both DAC and VOBA amortization, excluding amounts reported in realized gain (loss), is reported within commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). DSI amortization, excluding amounts reported in realized gain (loss), is reported in interest credited on the Consolidated Statements of Comprehensive Income (Loss). The amortization of DFEL, excluding amounts reported in realized gain (loss), is reported within fee income on the Consolidated Statements of Comprehensive Income (Loss). The methodology for determining the amortization of DAC, VOBA, DSI and DFEL varies by product type. Amortization is based on assumptions consistent with those used in the development of the underlying contract adjusted for emerging experience and expected trends. The carrying amounts of DAC, VOBA, DSI and DFEL are adjusted for the effects of realized and unrealized gains and losses on securities classified as fixed maturity AFS and certain derivatives and embedded derivatives. Amortization expense of DAC, VOBA, DSI and DFEL reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, we recognize a true-up to our DAC, VOBA, DSI and DFEL amortization within realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss) reflecting the incremental effect of actual versus expected credit-related investment losses. These actual to expected amortization adjustments can create volatility from period to period in realized gain (loss). We account for modifications of insurance contracts that result in a substantially unchanged contract as a continuation of the replaced contract. We account for modifications of insurance contracts that result in a substantially changed contract as an extinguishment of the replaced contract. For reinsurance transactions where we receive proceeds that represent recovery of our previously incurred acquisition costs, we reduce the applicable unamortized acquisition costs such that the net acquisition costs are capitalized and charged to commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). Acquisition costs for all traditional contracts, including term life insurance, individual whole life and group business, are amortized over the premium-paying period or level term period, depending on the contract, which generally results in amortization less than or equal to 30 years. Acquisition costs are either amortized on a straight-line basis or as a level percent of premium of the related policies depending on the block of business. There is currently no intangible balance or related amortization for fixed and variable payout annuities. Acquisition costs for UL and VUL insurance and investment-type products, which include fixed and variable deferred annuities, are generally amortized over the lives of the policies in relation to the incidence of estimated gross profits (“EGPs”) from surrender charges, investment, death benefits expected to be paid, net of reinsurance ceded and expense margins and actual realized gain (loss) on investments. Contract lives for UL and VUL policies are estimated to be 40 years based on the expected lives of the contracts. Contract lives for fixed and variable deferred annuities are generally between 15 and 30 years, while some of our fixed multi-year guarantee products have amortization periods equal to the guarantee period. The front-end load annuity product has an assumed life of 25 years. Longer lives are assigned to those blocks that have demonstrated lower lapse experience. During the third quarter of each year, we conduct our comprehensive review of the assumptions and the projection models used for our estimates of future gross profits underlying the amortization of DAC, VOBA, DSI and DFEL. These assumptions include, but are not limited to, capital markets, investment margins, mortality rates, retention, rider utilization and maintenance expenses (costs associated with maintaining records relating to insurance and individual and group annuity contracts, and with the processing of premium collections, deposits, withdrawals and commissions). Based on our review, the cumulative balances of DAC, VOBA, DSI and DFEL included on the Consolidated Balance Sheets are adjusted with an offsetting benefit or charge to revenue or amortization expense to reflect such change related to our expectations of future EGPs (“unlocking”). We may have unlocking in other quarters as we become aware of information that warrants updating assumptions outside of our comprehensive review. We may also identify and implement actuarial modeling refinements that result in increases or decreases to the carrying values of DAC, VOBA, DSI and DFEL. DAC, VOBA, DSI and DFEL are reviewed to ensure that the unamortized portion does not exceed the expected recoverable amounts. |
Reinsurance | Reinsurance We and LLANY enter into reinsurance agreements in the normal course of business to limit our exposure to the risk of loss and to enhance our capital management. In order for a reinsurance agreement to qualify for reinsurance accounting, the agreement must satisfy certain risk transfer conditions that include, among other items, a reasonable possibility of a significant loss for the assuming entity. When we apply reinsurance accounting, premiums, benefits and DAC amortization are reported net of reinsurance ceded on the Consolidated Statements of Comprehensive Income (Loss). Amounts currently recoverable, such as ceded reserves, are reported in reinsurance recoverables and amounts currently payable to the reinsurers, such as premiums, are included in other liabilities on the Consolidated Balance Sheets. Assets and liabilities and revenues and expenses from certain reinsurance contracts that grant statutory surplus relief to our insurance companies are netted on the Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss), respectively, if there is a contractual right of offset. We use deposit accounting to recognize reinsurance agreements that do not transfer significant insurance risk. This accounting treatment results in amounts paid or received by us to be considered on deposit with the reinsurer and such amounts are reported in other assets and other liabilities, respectively, on the Consolidated Balance Sheets. As amounts are paid or received, consistent with the underlying contracts, deposit assets or liabilities are adjusted. We estimated an allowance for credit losses for all reinsurance recoverables and related reinsurance deposit assets held by our subsidiaries. As such, we performed a quantitative analysis using a probability of loss model approach to estimate expected credit losses for reinsurance recoverables, inclusive of similar assets recognized using the deposit method of accounting. The credit loss allowance is a general allowance for pools of receivables with similar risk characteristics segmented by credit risk ratings and receivables assessed on an individual basis that do not share similar risk characteristics where we anticipate a credit loss over the life of reinsurance-related assets. Our model uses relevant internal or external historical loss information adjusted for current conditions and reasonable and supportable forecasts of future events and conditions in developing our credit loss estimate. We utilized historical credit rating data to form an estimation of probability of default of counterparties by means of a transition matrix that provides the rates of credit migration for credit ratings transitioning to impairment. We updated reinsurer credit ratings during the period to incorporate the most up-to-date information on the current state of the financial stability of our reinsurers. To simulate changes in economic conditions, we used positive, base and adverse scenarios that include varying levels of loss given default assumptions to reflect the impact of changes in severity of losses. We applied probability weights to the positive, base and adverse scenarios. For periods beyond our reasonable and supportable forecasts, we used implicit mean reversion over the remaining life of the recoverable. Additionally, we considered factors that impact our exposure at default that are driven by actuarial expectations around term assumptions rather than being directly driven by market or economic environment. Our model estimates the expected credit losses over the life of the reinsurance asset. Credit loss estimates are segmented based on counterparty credit risk. Our modeling process utilizes counterparty credit ratings, collateral types and amounts, and term and run-off assumptions. For reinsurance recoverables that do not share similar risk characteristics, we assessed on an individual basis to determine a specific credit loss allowance. We estimated expected credit losses over the contractual term of the recoverable, which is the period during which we are exposed to the credit risk. Reinsurance recoverables may not have explicit contractual lives, but are tied to the underlying insurance products; as a result, we estimated the contractual life by utilizing actuarial estimates of the timing of payouts related to those underlying products. Reinsurance agreements often require the reinsurer to collateralize the recoverable with funds in a trust account or with a letter of credit for the benefit of the ceding insurance entity that can reduce the expected credit losses on a given agreement. As such, we review reinsurance collateral by individual agreement to sensitize risk of loss based on level of collateralization. This review is driven by the assumption that non-collateralized reinsurance recoverables would have materially higher losses in times of default. Therefore, reinsurance recoverables are pooled as either fully-collateralized or non-collateralized. Reinsurance recoverables are presented net of the allowance for credit losses on the Consolidated Balance Sheets. Changes in the allowance for credit losses are reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). Reinsurance recoverables deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are credited to the allowance for credit losses, limited to the aggregate of amounts previously charged-off and expected to be charged-off. |
Goodwill | Goodwill We recognize the excess of the purchase price, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed for impairment annually as of October 1 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform a quantitative goodwill impairment test where the fair value of the reporting unit is determined and compared to the carrying value of the reporting unit. If the carrying value of the reporting unit is greater than the reporting unit’s fair value, goodwill is impaired and written down to the reporting unit’s fair value; and a charge is reported in impairment of intangibles on the Consolidated Statements of Comprehensive Income (Loss). The results of one goodwill impairment test on one reporting unit cannot subsidize the results of another reporting unit. |
Other Assets and Other Liabilities | Other Assets and Other Liabilities Other assets consist primarily of certain reinsurance assets, net of allowance for credit losses, certain guaranteed living benefit (“GLB”) features, current and deferred taxes, premiums and fees receivable, property and equipment owned by the Company, balances associated with corporate-owned and bank-owned life insurance, receivables resulting from sales of securities that had not yet settled as of the balance sheet date, specifically identifiable intangible assets, DSI, operating lease right-of-use (“ROU”) assets and other receivables and prepaid expenses. Other liabilities consist primarily of certain reinsurance payables, certain GLB features, current and deferred taxes, pension and other employee benefit liabilities, deferred gain on business sold through reinsurance, derivative instrument liabilities, payables resulting from purchases of securities that had not yet settled as of the balance sheet date, long-term operating lease liabilities, certain financing arrangements, finance lease liabilities and other accrued expenses. The carrying values of specifically identifiable intangible assets are reviewed at least annually for indicators of impairment in value that are related to credit loss or non-credit, including unexpected or adverse changes in the following: the economic or competitive environments in which the company operates; profitability analyses; cash flow analyses; and the fair value of the relevant business operation. If there was an indication of impairment, then the discounted cash flow method would be used to measure the impairment, and the carrying value would be adjusted as necessary and reported in impairment of intangibles on the Consolidated Statements of Comprehensive Income (Loss). Sales force intangibles are attributable to the value of the new business distribution system acquired through business combinations. These assets are amortized on a straight-line basis over their useful life of 25 years. Specifically identifiable intangible assets also includes the value of customer relationships acquired (“VOCRA”) and value of distribution agreements (“VODA”). The carrying values of VOCRA and VODA are amortized using a straight-line basis over their weighted average life of 20 years and 13 years, respectively. See Note 9 for more information regarding specifically identifiable intangible assets. Property and equipment owned for company use is carried at cost less allowances for depreciation. Provisions for depreciation of investment real estate and property and equipment owned for company use are computed principally on the straight-line method over the estimated useful lives of the assets, which include buildings, computer hardware and software and other property and equipment. Certain assets on the Consolidated Balance Sheets are related to finance leases and certain financing arrangements and are depreciated in a manner consistent with our current depreciation policy for owned assets. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Long-lived assets to be disposed of by abandonment or in an exchange for a similar productive long-lived asset are classified as held-for-use until they are disposed. Long-lived assets to be sold are classified as held-for-sale and are no longer depreciated. Certain criteria have to be met in order for the long-lived asset to be classified as held-for-sale, including that a sale is probable and expected to occur within one year. Long-lived assets classified as held-for-sale are recorded at the lower of their carrying amount or fair value less cost to sell. We lease office space and certain equipment under various long-term lease agreements. We determine if an arrangement is a lease at inception. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Our leases do not provide an implicit rate; therefore, we use our incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU asset is calculated using the lease liability carrying amount, plus or minus prepaid/accrued lease payments, minus the unamortized balance of lease incentives received, plus unamortized initial direct costs. Lease terms used to calculate our lease obligation include options when we are reasonably certain that we will exercise such options. Our lease agreements may contain both lease and non-lease components, which are accounted for separately. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Other assets includes deferred losses on business sold through reinsurance attributable to our 2012 and 2014 reinsurance transactions where we ceded closed blocks of UL contracts with secondary guarantees to Lincoln National Reinsurance Company (Barbados) Limited (“LNBAR”), a wholly-owned subsidiary of LNC. We are recognizing the losses related to these transactions over a period of 30 years. Other liabilities include deferred gains on business sold through reinsurance. During 2009, we completed a reinsurance transaction whereby we assumed a closed block of term contracts from First Penn-Pacific Life Insurance Company, a wholly-owned subsidiary of LNC. We are recognizing the gain related to this transaction over a period of 15 years. During 2012, we completed a reinsurance transaction whereby we ceded a closed block of UL contracts with secondary guarantees to LNBAR. We are recognizing the gain related to the transaction over a period of 30 years. During 2013, we completed a reinsurance transaction whereby we ceded a closed block of UL contracts with secondary guarantees to LNBAR. During 2019, we amended the 2013 reinsurance transaction by recapturing the underlying base policy from LNBAR while continuing to cede the associated riders. We are recognizing the gain related to this transaction over the expected life of the underlying business, or 20 years. Effective October 1, 2018, we entered into a reinsurance agreement with Athene Holding Ltd. (“Athene”). We are recognizing the gain related to this transaction over the period in which the majority of account values is expected to run off, or 20 years. Effective October 1, 2021, we entered into a reinsurance agreement with Security Life of Denver Insurance Company (a subsidiary of Resolution Life that we refer to herein as “Resolution Life”). We are recognizing the gain related to this transaction over the projected life of the policies, or 30 years. See Note 8 for additional information. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities Separate accounts represent segregated funds that are maintained to meet specific investment objectives of contract holders who direct the investments and bear the investment risk, except to the extent of minimum guarantees made by the Company with respect to certain accounts. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. We report separate account assets as a summary total on the Consolidated Balance Sheets based on the fair value of the underlying investments. The underlying investments consist primarily of mutual funds, fixed maturity AFS securities, short-term investments and cash. Investment income and net realized and unrealized gains (losses) of the separate accounts generally accrue directly to the contract holders; therefore, they are not reflected on the Consolidated Statements of Comprehensive Income (Loss), and the Consolidated Statements of Cash Flows do not reflect investment activity of the separate accounts. Asset-based fees and contract administration charges are assessed against the accounts and included within fee income on the Consolidated Statements of Comprehensive Income (Loss). An amount equivalent to the separate account assets is recorded as separate account liabilities, representing the account balance obligated to be returned to the contract holder. |
Future Contract Benefits and Other Contract Holder Funds | Future Contract Benefits Future contract benefits represent liability reserves that we have established and carry based on estimates of how much we will need to pay for future benefits and claims. We continually review overall reserve position, reserving techniques and reinsurance arrangements. As experience develops and new information becomes known, liabilities are adjusted as deemed necessary. The liabilities for future insurance contract benefits and claim reserves for traditional life policies are computed using assumptions for investment yields, mortality rates and withdrawals based principally on generally accepted actuarial methods and assumptions at the time of contract issue. Investment yield assumptions for traditional direct individual life reserves for all contracts range from 2.25 % to 7.75 % depending on the time of contract issue. The liabilities for future contract benefits and claims reserves for immediate and deferred paid- up annuities are computed using investment yield assumptions that range from 0.50 % to 12.15 %. These investment yield assumptions are intended to represent an estimation of the interest rate experience for the period that these contract benefits are payable. The liability for future claim reserves for long-term disability contracts for incurred and reported claims are calculated based on assumptions as to interest, claim resolution rates and offsets for other insurance including social security. Claim resolution rate assumptions and social security offsets are based on our actual experience. The interest rate assumptions used for discounting claim reserves are based on projected portfolio yield rates, after consideration for defaults and investment expenses, for assets supporting the liabilities. During the third quarter of each year, we conduct our comprehensive review of the assumptions and reserving models used in calculating these reserves. The incurred but not reported claim reserves are based on our experiences as to the reporting lags and ultimate loss experience. Claim reserves are subject to revision as current claim experience and projections of future factors affecting claim experience change. Claim reserves do not include a provision for adverse deviation. The business written or assumed by us includes participating life insurance contracts, under which the contract holder is entitled to share in the earnings of such contracts via receipt of dividends. The dividend scale for participating policies is reviewed annually and may be adjusted to reflect recent experience and future expectations. As of December 31, 2022, 2021 and 2020, participating policies comprised less than 1 % of the face amount of business in force, and dividend expenses were $ 49 million, $ 48 million and $ 53 million for the years ended December 31, 2022, 2021 and 2020, respectively. We issue variable annuity and life contracts through separate accounts that may include various types of guaranteed benefits. The liabilities for these guarantees are calculated by estimating the present value of total expected benefit payments over the life of the contract from inception divided by the present value of total expected assessments over the life of the contract (“benefit ratio”) multiplied by the cumulative assessments recorded from the contract inception through the balance sheet date less the cumulative payments plus interest on the liability. The change in the liability for a period is the benefit ratio multiplied by the assessments recorded for the period less payments made in the period plus interest. As experience or assumption changes result in a change in expected benefit payments or assessments, the benefit ratio is unlocked or, in other words, recalculated using the updated expected benefit payments and assessments over the life of the contract since inception. The revised benefit ratio is then applied to the liability calculation described above, with the resulting change in liability reported in benefits on the Consolidated Statements of Comprehensive Income (Loss). During the third quarter of each year, we conduct our comprehensive review of the assumptions and projection models used in estimating these reserves and unlock assumptions similar to the DAC discussion above. We may have unlocking in other quarters as we become aware of information that warrants updating assumptions outside of our comprehensive review. We may also identify and implement actuarial modeling refinements that result in increases or decreases to the carrying value of these reserves. The change in liability impacts EGPs used to calculate amortization of DAC, VOBA, DFEL and DSI. Certain of our variable annuity contracts reported within future contract benefits contain GLB reserves embedded derivatives, a portion of which may be reported in either other assets or other liabilities, and include guaranteed interest and similar contracts, that are carried at fair value on the Consolidated Balance Sheets, which represents approximate exit price including an estimate for our NPR. Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We report the insurance portion of the reserves in future contract benefits. We classify these GLB reserves embedded derivatives items in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” The “market consistent scenarios” used in the determination of the fair value of the GLB liability are similar to those used by an investment bank to value derivatives for which the pricing is not transparent and the aftermarket is nonexistent or illiquid. We use risk-neutral Monte Carlo simulations in our calculation to value the entire block of guarantees, which involve 100 unique scenarios per policy or approximately 44 million scenarios. The market consistent scenario assumptions, as of each valuation date, are those we view to be appropriate for a hypothetical market participant. The market consistent inputs include, but are not limited to, assumptions for capital markets (e.g., implied volatilities, correlation among indices, risk-free swap curve, etc.), policyholder behavior (e.g., policy lapse, rider utilization, etc.), mortality rates, risk margins, maintenance expenses and a margin for profit. We believe these assumptions are consistent with those that would be used by a market participant; however, as the related markets develop we will continue to reassess our assumptions. It is possible that different valuation techniques and assumptions could produce a materially different estimate of fair value. As discussed in Note 5, we use derivative instruments to hedge our exposure to the risks and earnings volatility that result from the embedded derivatives for living benefits in certain of our variable annuity products. The change in fair value of these instruments tends to move in the opposite direction of the change in the value of the associated reserves. The net impact of these changes is reported as a component of realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). Other Contract Holder Funds Other contract holder funds includes account values on UL and VUL insurance and investment-type annuity products where account values are equal to deposits plus interest credited less withdrawals, surrender charges, asset-based fees and contract administration charges, as well as amounts representing the fair value of embedded derivative instruments associated with our IUL and indexed annuity products. During the third quarter of each year, we conduct our comprehensive review of the assumptions and projection models used in estimating these embedded derivatives and unlock assumptions similar to the DAC discussion above. We may have unlocking in other quarters as we become aware of information that warrants updating assumptions outside of our comprehensive review. We may also identify and implement actuarial modeling refinements that result in increases or decreases to the carrying value of these embedded derivatives. Other contract holder funds also includes DFEL (see “DAC, VOBA, DFEL and DSI” above), dividends payable to contract holders and undistributed earnings on participating business. |
Short-term and Long-term Debt | Short-Term and Long-Term Debt Short-term debt has contractual or expected maturities of one year or less. Long-term debt has contractual or expected maturities greater than one year. |
Payables for Collateral on Investments | Payables for Collateral on Investments When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash or non-cash collateral received. This liability is included within payables for collateral on investments on the Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on the Consolidated Statements of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on the Consolidated Statements of Cash Flows. |
Contingencies and Commitments | Contingencies and Commitments A loss contingency is an existing condition, situation or set of circumstances involving uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur. Contingencies arising from environmental remediation costs, regulatory judgments, claims, assessments, guarantees, litigation, recourse reserves, fines, penalties and other sources are recorded when deemed probable and reasonably estimable, based on our best estimate. |
Fee Income | Fee Income |
Insurance Premiums | Fee income for investment and interest-sensitive life insurance contracts consists of asset-based fees, percent of premium charges, contract administration charges and surrender charges that are assessed against contract holder account values. Investment products consist primarily of individual and group variable and fixed annuities. Interest-sensitive life insurance products include UL, VUL, linked-benefit UL and VUL and other interest-sensitive life insurance policies. These products include life insurance sold to individuals, corporate-owned life insurance and bank-owned life insurance. In bifurcating the embedded derivative of our GLB features on our variable annuity products, we attribute to the embedded derivative the portion of total fees collected from the contract holder that relate to the GLB riders (the “attributed fees”), which are not reported within fee income on the Consolidated Statements of Comprehensive Income (Loss). These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract plus a margin that a theoretical market participant would include for risk/profit and are reported within realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). The timing of revenue recognition as it relates to fees assessed on investment contracts is determined based on the nature of such fees. Asset-based fees and contract administration charges are assessed on a daily or monthly basis and recognized as revenue as performance obligations are met, over the period underlying customer assets are owned or advisory services are provided. Percent of premium charges are assessed at the time of premium payment and recognized as revenue when assessed and earned. Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are recognized upon surrender of a contract by the contract holder in accordance with contractual terms. For investment and interest-sensitive life insurance contracts, the amounts collected from contract holders are considered deposits and are not included in revenue. Wholesaling-related 12b-1 fees received from separate account fund sponsors as compensation for servicing the underlying mutual funds are recorded as revenues based on a contractual percentage of the market value of mutual fund assets over the period shares are owned by customers. Net investment advisory fees related to asset management of certain separate account funds are recorded as revenues based on a contractual percentage of the customer’s managed assets over the period advisory services are provided. Fee income related to 12b-1 fees and net investment advisory fees, reported primarily within our Annuities segment, was $ 743 million, $ 848 million and $ 732 million for the years ended December 31, 2022, 2021 and 2020, respectively. Insurance Premiums Insurance premiums consist primarily of group insurance products, traditional life insurance and payout annuities with life contingencies. These premiums are recognized as revenue when due. |
Net Investment Income | Insurance premiums consist primarily of group insurance products, traditional life insurance and payout annuities with life contingencies. These premiums are recognized as revenue when due. Net Investment Income We earn investment income on the underlying general account investments supporting our fixed products less related expenses. Dividends and interest income, recorded in net investment income, are recognized when earned. Amortization of premiums and accretion of discounts on investments in debt securities are reflected in net investment income over the contractual terms of the investments in a manner that produces a constant effective yield. For CLOs and MBS, included in the trading and fixed maturity AFS securities portfolios, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and a catch up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Any adjustments resulting from changes in effective yield are reflected in net investment income on the Consolidated Statements of Comprehensive Income (Loss). |
Realized Gain (Loss) | Realized Gain (Loss) Realized gain (loss) includes realized gains and losses from the sale of investments, write-downs for impairments of investments and changes in the allowance for credit losses for financial assets, changes in fair value of mortgage loans on real estate accounted for under the fair value option, changes in fair value of equity securities, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance-related embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements and certain modified coinsurance for which we have a contractual obligation. |
Other Revenues | Other Revenues |
Interest Credited | Interest Credited We credit interest to our contract holder account values based on the contractual terms supporting our products. |
Benefits | Benefits Benefits for UL and other interest-sensitive life insurance products include benefit claims incurred during the period in excess of contract account values. Benefits also include the change in reserves for life insurance products with secondary guarantee benefits, annuity products with guaranteed death and living benefits and certain annuities with life contingencies. For traditional life, group life and disability income products, benefits are recognized when incurred in a manner consistent with the related premium recognition policies. |
Spark and Strategic Digitization Expense | Spark Program Expense Spark program expense consists primarily of costs related to our Spark Initiative. |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans Pursuant to the accounting rules for our obligations to employees and agents under our various pension and other postretirement benefit plans, we are required to make a number of assumptions to estimate related liabilities and expenses. The mortality assumption is based on actual and anticipated plan experience, determined using acceptable actuarial methods. We use assumptions for the weighted-average discount rate and expected return on plan assets to estimate pension expense. The discount rate assumptions are determined using an analysis of current market information and the projected benefit flows associated with these plans. The expected long-term rate of return on plan assets is based on historical and projected future rates of return on the funds invested in the plan. The calculation of our accumulated postretirement benefit obligation also uses an assumption of weighted-average annual rate of increase in the per capita cost of covered benefits, which reflects a health care cost trend rate. |
Stock-Based Compensation | Stock-Based Compensation In general, we expense the fair value of stock awards included in our incentive compensation plans. As of the date LNC’s Board of Directors approves stock awards, the fair value of stock options is determined using a Black-Scholes options valuation methodology, and the fair value of other stock awards is based upon the market value of the stock. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to common stock in stockholder’s equity. We apply an estimated forfeiture rate to our accrual of compensation cost. We classify certain stock awards as liabilities. For these awards, the settlement value is classified as a liability on the Consolidated Balance Sheets, and the liability is marked-to-market through net income at the end of each reporting period. Stock-based compensation expense is reflected in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). |
Interest and Debt Expense | Interest and Debt Expense Interest expense on our short-term and long-term debt is recognized as due over the term of the related borrowing. |
Income Taxes | Income Taxes LNC files a U.S. consolidated income tax return that includes us and LNC’s other eligible subsidiaries. Ineligible subsidiaries file separate individual corporate tax returns. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. |
Nature of Operations, Basis o_3
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Summary of Restated Consolidated Statements | THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (in millions, except share data) As of December 31, 2021 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2021 - $ 104,491 ; allowance for credit losses: 2021 - $ 19 ) $ 117,511 $ ( 35 ) $ 117,476 Trading securities 4,427 ( 22 ) 4,405 Equity securities 314 57 371 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2021 - $ 739 ) 17,893 - 17,893 Policy loans 2,349 - 2,349 Derivative investments 5,437 260 5,697 Other investments 3,449 ( 4 ) 3,445 Total investments 151,380 256 151,636 Cash and invested cash 2,331 - 2,331 Deferred acquisition costs and value of business acquired 5,985 1 5,986 Accrued investment income 1,157 - 1,157 Reinsurance recoverables, net of allowance for credit losses 22,755 - 22,755 Goodwill 1,778 - 1,778 Other assets 24,046 ( 754 ) 23,292 Separate account assets 182,583 - 182,583 Total assets $ 392,015 $ ( 497 ) $ 391,518 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 40,416 $ - $ 40,416 Other contract holder funds 111,174 9 111,183 Short-term debt 1,084 - 1,084 Long-term debt 2,334 - 2,334 Payables for collateral on investments 8,936 - 8,936 Other liabilities 23,108 ( 986 ) 22,122 Separate account liabilities 182,583 - 182,583 Total liabilities 369,635 ( 977 ) 368,658 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,950 - 11,950 Retained earnings 3,886 480 4,366 Accumulated other comprehensive income (loss) 6,544 - 6,544 Total stockholder’s equity 22,380 480 22,860 Total liabilities and stockholder’s equity $ 392,015 $ ( 497 ) $ 391,518 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (in millions, except share data) As of December 31, 2022 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $ 110,944 ; allowance for credit losses: 2022 - $ 21 ) $ 99,465 $ - $ 99,465 Trading securities 3,446 - 3,446 Equity securities 427 - 427 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $ 487 ) 18,211 - 18,211 Policy loans 2,345 - 2,345 Derivative investments 3,662 ( 143 ) 3,519 Other investments 3,577 - 3,577 Total investments 131,133 ( 143 ) 130,990 Cash and invested cash 2,499 - 2,499 Deferred acquisition costs and value of business acquired 13,615 - 13,615 Accrued investment income 1,234 - 1,234 Reinsurance recoverables, net of allowance for credit losses 23,910 - 23,910 Goodwill 1,144 - 1,144 Other assets 21,523 ( 185 ) 21,338 Separate account assets 143,536 - 143,536 Total assets $ 338,594 $ ( 328 ) $ 338,266 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 41,598 $ - $ 41,598 Other contract holder funds 120,360 - 120,360 Short-term debt 562 - 562 Long-term debt 2,269 - 2,269 Payables for collateral on investments 6,638 - 6,638 Other liabilities 15,833 ( 796 ) 15,037 Separate account liabilities 143,536 - 143,536 Total liabilities 330,796 ( 796 ) 330,000 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 12,903 - 12,903 Retained earnings 1,968 468 2,436 Accumulated other comprehensive income (loss) ( 7,073 ) - ( 7,073 ) Total stockholder’s equity 7,798 468 8,266 Total liabilities and stockholder’s equity $ 338,594 $ ( 328 ) $ 338,266 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) For the Year Ended December 31, 2021 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 5,359 $ - $ 5,359 Fee income 6,612 18 6,630 Net investment income 5,844 ( 5 ) 5,839 Realized gain (loss) 89 622 711 Amortization of deferred gain on business sold through reinsurance 40 ( 8 ) 32 Other revenues 657 - 657 Total revenues 18,601 627 19,228 Expenses Interest credited 2,893 18 2,911 Benefits 8,039 - 8,039 Commissions and other expenses 5,546 2 5,548 Interest and debt expense 114 - 114 Spark program expense 87 - 87 Total expenses 16,679 20 16,699 Income (loss) before taxes 1,922 607 2,529 Federal income tax expense (benefit) 293 127 420 Net income (loss) 1,629 480 2,109 Other comprehensive income (loss), net of tax: Unrealized investment gains (losses) ( 2,480 ) - ( 2,480 ) Funded status of employee benefit plans 3 - 3 Total other comprehensive income (loss), net of tax ( 2,477 ) - ( 2,477 ) Comprehensive income (loss) $ ( 848 ) $ 480 $ ( 368 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) For the Year Ended December 31, 2022 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 5,841 $ - $ 5,841 Fee income 5,783 - 5,783 Net investment income 5,270 4 5,274 Realized gain (loss) 201 13 214 Amortization of deferred gain on business sold through reinsurance 69 ( 32 ) 37 Other revenues 621 - 621 Total revenues 17,785 ( 15 ) 17,770 Expenses Interest credited 2,849 - 2,849 Benefits 10,801 - 10,801 Commissions and other expenses 4,799 - 4,799 Interest and debt expense 137 - 137 Spark program expense 167 - 167 Impairment of intangibles 634 - 634 Total expenses 19,387 - 19,387 Income (loss) before taxes ( 1,602 ) ( 15 ) ( 1,617 ) Federal income tax expense (benefit) ( 329 ) ( 3 ) ( 332 ) Net income (loss) ( 1,273 ) ( 12 ) ( 1,285 ) Other comprehensive income (loss), net of tax: Unrealized investment gains (losses) ( 13,613 ) - ( 13,613 ) Funded status of employee benefit plans ( 4 ) - ( 4 ) Total other comprehensive income (loss), net of tax ( 13,617 ) - ( 13,617 ) Comprehensive income (loss) $ ( 14,890 ) $ ( 12 ) $ ( 14,902 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY (in millions) For the Year Ended December 31, 2021 As Previously Restatement As Reported Impacts Restated Common Stock Balance as of beginning-of-year $ 11,853 $ - $ 11,853 Capital contribution from Lincoln National Corporation 65 - 65 Stock compensation/issued for benefit plans 32 - 32 Balance as of end-of-year 11,950 - 11,950 Retained Earnings Balance as of beginning-of-year 4,167 - 4,167 Net income (loss) 1,629 480 2,109 Dividends paid to Lincoln National Corporation ( 1,910 ) - ( 1,910 ) Balance as of end-of-year 3,886 480 4,366 Accumulated Other Comprehensive Income (Loss) Balance as of beginning-of-year 9,021 - 9,021 Other comprehensive income (loss), net of tax ( 2,477 ) - ( 2,477 ) Balance as of end-of-year 6,544 - 6,544 Total stockholder’s equity as of end-of-year $ 22,380 $ 480 $ 22,860 For the Year Ended December 31, 2022 As Previously Restatement As Reported Impacts Restated Common Stock Balance as of beginning-of-year $ 11,950 $ - $ 11,950 Capital contribution from Lincoln National Corporation 925 - 925 Stock compensation/issued for benefit plans 28 - 28 Balance as of end-of-year 12,903 - 12,903 Retained Earnings Balance as of beginning-of-year 3,886 480 4,366 Net income (loss) ( 1,273 ) ( 12 ) ( 1,285 ) Dividends paid to Lincoln National Corporation ( 645 ) - ( 645 ) Balance as of end-of-year 1,968 468 2,436 Accumulated Other Comprehensive Income (Loss) Balance as of beginning-of-year 6,544 - 6,544 Other comprehensive income (loss), net of tax ( 13,617 ) - ( 13,617 ) Balance as of end-of-year ( 7,073 ) - ( 7,073 ) Total stockholder’s equity as of end-of-year $ 7,798 $ 468 $ 8,266 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) For the Year Ended December 31, 2021 As Previously Restatement As Reported Impacts Restated Cash Flows from Operating Activities Net income (loss) $ 1,629 $ 480 $ 2,109 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss ( 89 ) ( 622 ) ( 711 ) Sales and maturities (purchases) of trading securities, net ( 108 ) 21 ( 87 ) Amortization of deferred gain (loss) on business sold through reinsurance ( 40 ) 8 ( 32 ) Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization 292 ( 3 ) 289 Premiums and fees receivable ( 95 ) - ( 95 ) Accrued investment income 8 - 8 Insurance liabilities and reinsurance-related balances ( 585 ) 1 ( 584 ) Accrued expenses 367 3 370 Federal income tax accruals 264 127 391 Cash management agreement ( 1,286 ) - ( 1,286 ) Other ( 165 ) 2 ( 163 ) Net cash provided by (used in) operating activities 192 17 209 Cash Flows from Investing Activities Purchases of available-for-sale securities and equity securities ( 16,834 ) ( 22 ) ( 16,856 ) Sales of available-for-sale securities and equity securities 2,341 - 2,341 Maturities of available-for-sale securities 9,417 - 9,417 Purchases of alternative investments ( 754 ) - ( 754 ) Sales and repayments of alternative investments 377 - 377 Issuance of mortgage loans on real estate ( 3,062 ) 5 ( 3,057 ) Repayment and maturities of mortgage loans on real estate 1,873 - 1,873 Repayment (issuance) of policy loans, net 61 - 61 Net change in collateral on investments, derivatives and related settlements 3,095 - 3,095 Other ( 253 ) - ( 253 ) Net cash provided by (used in) investing activities ( 3,739 ) ( 17 ) ( 3,756 ) Cash Flows from Financing Activities Capital contribution from Lincoln National Corporation 65 - 65 Payment of long-term debt, including current maturities ( 60 ) - ( 60 ) Issuance (payment) of short-term debt 587 - 587 Payment related to sale-leaseback transactions ( 59 ) - ( 59 ) Proceeds from certain financing arrangements 159 - 159 Deposits of fixed account values, including the fixed portion of variable 12,622 4 12,626 Withdrawals of fixed account values, including the fixed portion of variable ( 6,575 ) 53 ( 6,522 ) Transfers from (to) separate accounts, net ( 340 ) ( 57 ) ( 397 ) Common stock issued for benefit plans ( 13 ) - ( 13 ) Dividends paid to Lincoln National Corporation ( 1,910 ) - ( 1,910 ) Other ( 60 ) - ( 60 ) Net cash provided by (used in) financing activities 4,416 - 4,416 Net increase (decrease) in cash, invested cash and restricted cash 869 - 869 Cash, invested cash and restricted cash as of beginning-of-year 1,462 - 1,462 Cash, invested cash and restricted cash as of end-of-year $ 2,331 $ - $ 2,331 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) For the Year Ended December 31, 2022 As Previously Restatement As Reported Impacts Restated Cash Flows from Operating Activities Net income (loss) $ ( 1,273 ) $ ( 12 ) $ ( 1,285 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss ( 201 ) ( 13 ) ( 214 ) Sales and maturities (purchases) of trading securities, net 301 - 301 Amortization of deferred gain (loss) on business sold through reinsurance ( 69 ) 32 ( 37 ) Impairment of intangibles 634 - 634 Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization 42 3 45 Premiums and fees receivable ( 53 ) - ( 53 ) Accrued investment income ( 41 ) - ( 41 ) Insurance liabilities and reinsurance-related balances 1,055 - 1,055 Accrued expenses ( 98 ) - ( 98 ) Federal income tax accruals ( 268 ) ( 3 ) ( 271 ) Cash management agreement 3,730 - 3,730 Other 531 ( 4 ) 527 Net cash provided by (used in) operating activities 4,290 3 4,293 Cash Flows from Investing Activities Purchases of available-for-sale securities and equity securities ( 14,768 ) - ( 14,768 ) Sales of available-for-sale securities and equity securities 2,347 - 2,347 Maturities of available-for-sale securities 5,487 - 5,487 Purchases of alternative investments ( 631 ) - ( 631 ) Sales and repayments of alternative investments 441 - 441 Issuance of mortgage loans on real estate ( 2,503 ) ( 4 ) ( 2,507 ) Repayment and maturities of mortgage loans on real estate 2,247 - 2,247 Repayment (issuance) of policy loans, net 4 - 4 Net change in collateral on investments, derivatives and related settlements ( 4,654 ) 1 ( 4,653 ) Other ( 40 ) - ( 40 ) Net cash provided by (used in) investing activities ( 12,070 ) ( 3 ) ( 12,073 ) Cash Flows from Financing Activities Capital contribution from Lincoln National Corporation 925 - 925 Payment of long-term debt, including current maturities ( 40 ) - ( 40 ) Issuance (payment) of short-term debt ( 522 ) - ( 522 ) Payment related to sale-leaseback transactions ( 70 ) - ( 70 ) Proceeds from certain financing arrangements 186 - 186 Deposits of fixed account values, including the fixed portion of variable 15,212 - 15,212 Withdrawals of fixed account values, including the fixed portion of variable ( 6,880 ) - ( 6,880 ) Transfers from (to) separate accounts, net ( 195 ) - ( 195 ) Common stock issued for benefit plans ( 21 ) - ( 21 ) Dividends paid to Lincoln National Corporation ( 645 ) - ( 645 ) Other ( 2 ) - ( 2 ) Net cash provided by (used in) financing activities 7,948 - 7,948 Net increase (decrease) in cash, invested cash and restricted cash 168 - 168 Cash, invested cash and restricted cash as of beginning-of-year 2,331 - 2,331 Cash, invested cash and restricted cash as of end-of-year $ 2,499 $ - $ 2,499 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of December 31, 2021 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 10,611 $ 230 $ 1,386 $ 96 $ 11,997 $ 326 U.S. government bonds 6 - 26 2 32 2 State and municipal bonds 498 10 19 1 517 11 Foreign government bonds 61 3 56 2 117 5 RMBS 261 3 20 1 281 4 CMBS 440 12 33 2 473 14 ABS 4,646 49 165 5 4,811 54 Hybrid and redeemable preferred securities 47 1 76 10 123 11 Total fixed maturity AFS securities $ 16,570 $ 308 $ 1,781 $ 119 $ 18,351 $ 427 Total number of fixed maturity AFS securities in an unrealized loss position 2,577 (1) As of December 31, 2022 and 2021, we recognized $ 6 million and $ 8 million of gross unrealized losses, respectively, in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded. |
Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost | (1) We may reflect a security in more than one aging category based on various purchase dates. |
Changes In Allowance For Credit Losses Of AFS | For the Year Ended December 31, 2020 Corporate Bonds RMBS Other Total Balance as of beginning-of-year $ - $ - $ - $ - Additions from purchases of PCD debt securities (1) - - - - Additions for securities for which credit losses were not previously recognized 40 1 1 42 Additions (reductions) for securities for which credit losses were previously recognized ( 1 ) - ( 1 ) ( 2 ) Reductions for securities disposed ( 15 ) - - ( 15 ) Reductions for securities charged-off ( 12 ) - - ( 12 ) Balance as of end-of-year (2) $ 12 $ 1 $ - $ 13 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) As of December 31, 2022, 2021 and 2020, accrued investment income on fixed maturity AFS securities totaled $ 1.1 billion, $ 944 million and $ 1.0 billion, respectively, and was excluded from the estimate of credit losses. |
Composition Of Current And Past Due Mortgage Loans On Real Estate | (1) Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 20 for additional information. |
Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate | (1) We did no t recognize any credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2022. We recognized $ 3 million and $( 2 ) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the years ended December 31, 2021 and 2020, respectively. (2) Accrued investment income on mortgage loans on real estate totaled $ 51 million, $ 48 million and $ 48 million as of December 31, 2022, 2021 and 2020, respectively, and was excluded from the estimate of credit losses. |
Payables For Collateral On Investments | (1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. This also includes interest payable on collateral. See Note 5 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102 % and 105 % of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Commercial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Mortgage Loans By Year Of Origination | The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows: As of December 31, 2022 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2022 $ 1,769 2.06 $ 105 1.50 $ 2 1.45 $ 1,876 2021 2,335 3.05 72 1.53 - - 2,407 2020 1,280 2.99 17 1.58 - - 1,297 2019 2,643 2.17 81 1.50 29 1.58 2,753 2018 2,222 2.17 67 1.62 - - 2,289 2017 and prior 6,170 2.44 131 1.75 - - 6,301 Total $ 16,419 $ 473 $ 31 $ 16,923 As of December 31, 2021 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2021 $ 2,361 3.05 $ 136 1.74 $ - - $ 2,497 2020 1,349 3.02 144 2.06 - - 1,493 2019 2,875 2.14 187 1.42 - - 3,062 2018 2,272 2.13 168 1.59 15 1.02 2,455 2017 1,648 2.33 149 1.74 27 0.83 1,824 2016 and prior 5,543 2.41 171 1.76 27 1.08 5,741 Total $ 16,048 $ 955 $ 69 $ 17,072 |
Residential [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Mortgage Loans By Year Of Origination | . The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows: As of December 31, 2022 Performing Nonperforming Total Origination Year 2022 $ 578 $ 5 $ 583 2021 527 6 533 2020 90 3 93 2019 119 18 137 2018 65 2 67 2017 and prior - - - Total $ 1,379 $ 34 $ 1,413 As of December 31, 2021 Performing Nonperforming Total Origination Year 2021 $ 467 $ 2 $ 469 2020 129 2 131 2019 189 21 210 2018 104 5 109 2017 - - - 2016 and prior - - - Total $ 889 $ 30 $ 919 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As Restated As of December 31, 2022 As of December 31, 2021 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1,377 $ 4 $ 232 $ 2,009 $ 98 $ 11 Foreign currency contracts (1) 4,383 643 18 3,979 283 51 Total cash flow hedges 5,760 647 250 5,988 381 62 Fair value hedges: Interest rate contracts (1) 524 2 44 526 - 210 Non-Qualifying Hedges Interest rate contracts (1) 105,977 709 935 82,786 897 176 Foreign currency contracts (1) 395 27 2 487 7 2 Equity market contracts (1) 142,653 5,135 2,035 107,151 8,490 3,909 Commodity contracts (1) 13 14 3 - - - Credit contracts (1) - - - 49 - - LPR ceded derivative (2) - 212 - - 318 - Embedded derivatives: GLB direct (3) - 1,697 - - 1,967 - GLB ceded (3) - 29 1,721 - 56 2,018 Reinsurance-related (3) - 681 - - - 578 Indexed annuity and IUL contracts (3) (4) - 525 4,783 - 528 6,131 Total derivative instruments $ 255,322 $ 9,678 $ 9,773 $ 196,987 $ 12,644 $ 13,086 (1) Reported in derivative investments and other liabilities on the Consolidated Balance Sheets. (2) Reported in other assets on the Consolidated Balance Sheets. (3) Reported in other assets and other liabilities on the Consolidated Balance Sheets. (4) Reported in future contract benefits on the Consolidated Balance Sheets. |
Maturity Of The Notional Amounts Of Derivative Financial Instruments | As Restated Remaining Life as of December 31, 2022 Less Than 1 – 5 6 – 10 11 – 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 31,463 $ 27,958 $ 24,892 $ 20,565 $ 3,000 $ 107,878 Foreign currency contracts (2) 261 730 1,681 2,037 69 4,778 Equity market contracts 94,841 28,952 7,796 9 11,055 142,653 Commodity contracts 13 - - - - 13 Total derivative instruments with notional amounts $ 126,578 $ 57,640 $ 34,369 $ 22,611 $ 14,124 $ 255,322 (1) As of December 31, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was December 18, 2024 . (2) As of December 31, 2022, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061 . |
Cumulative Basis Adjustments For Fair Value Hedges | Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Amortized Cost of the Hedged Hedged Assets / (Liabilities) Assets / (Liabilities) As of As of As of As of December 31, December 31, December 31, December 31, 2022 2021 2022 2021 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 587 $ 764 $ 44 $ 211 |
Change In Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Years Ended December 31, 2022 2021 2020 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 240 $ 42 $ 181 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cash flow hedges: Interest rate contracts ( 336 ) 11 ( 16 ) Foreign currency contracts 182 130 93 Change in foreign currency exchange rate adjustment 312 152 ( 174 ) Change in DAC, VOBA, DSI and DFEL ( 29 ) 7 ( 23 ) Income tax benefit (expense) ( 28 ) ( 65 ) 26 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 2 3 2 Foreign currency contracts (1) 62 48 56 Foreign currency contracts (2) 39 ( 2 ) 6 Associated amortization of DAC, VOBA, DSI and DFEL ( 62 ) ( 2 ) ( 7 ) Income tax benefit (expense) ( 9 ) ( 10 ) ( 12 ) Balance as of end-of-year $ 309 $ 240 $ 42 (1) The OCI offset is reported within net investment income on the Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). |
Effects Of Qualifying And Non-Qualifying Hedges | As Restated Gain (Loss) Recognized in Income For the Year Ended December 31, 2022 Realized Net Gain Investment (Loss) Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 214 $ 5,274 $ 10,801 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - ( 167 ) - Derivatives designated as hedging instruments - 167 - Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 2 - Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 39 62 - Non-Qualifying Hedges Interest rate contracts ( 2,113 ) - - Foreign currency contracts 2 - - Equity market contracts ( 2,075 ) - - Commodity contracts 11 - - Credit contracts ( 4 ) - - LPR ceded derivative - - 106 Embedded derivatives: Reinsurance-related 1,259 - - Indexed annuity and IUL contracts 1,760 - - As Restated Gain (Loss) Recognized in Income For the Year Ended December 31, 2021 Realized Net Gain Investment (Loss) Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ 711 $ 5,839 $ 8,039 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - ( 60 ) - Derivatives designated as hedging instruments - 60 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 3 - Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income ( 2 ) 48 - Non-Qualifying Hedges Interest rate contracts ( 957 ) - - Foreign currency contracts ( 1 ) - - Equity market contracts 3,355 - - Credit contracts ( 1 ) - - Embedded derivatives: GLB 4 - - Reinsurance-related 280 - - Indexed annuity and IUL contracts ( 2,622 ) - - Gain (Loss) Recognized in Income For the Year Ended December 31, 2020 Realized Net Gain Investment (Loss) Income Benefits Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ ( 526 ) $ 5,264 $ 8,050 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 69 - Derivatives designated as hedging instruments - ( 69 ) Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 2 - Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 6 56 - Non-Qualifying Hedges Interest rate contracts 1,287 - - Foreign currency contracts ( 3 ) - - Equity market contracts 971 - - Credit contracts ( 6 ) - - Embedded derivatives: GLB 1 - - Reinsurance-related ( 241 ) - - Indexed annuity and IUL contracts ( 471 ) - - |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of December 31, 2022 As of December 31, 2021 Collateral Collateral Collateral Collateral Posted by Posted by Posted by Posted by S&P Counter- LNL Counter- LNL Credit Party (Held by Party (Held by Rating of (Held by Counter- (Held by Counter- Counterparty LNL) Party) LNL) Party) AA- $ 383 $ ( 6 ) $ 2,346 $ - A+ 1,718 ( 151 ) 2,762 ( 44 ) A 1,099 - 456 - $ 3,200 $ ( 157 ) $ 5,564 $ ( 44 ) |
Schedule Of Offsetting Assets And Liabilities | As Restated As of December 31, 2022 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 6,483 $ 2,932 $ 9,415 Gross amounts offset ( 2,964 ) - ( 2,964 ) Net amount of assets 3,519 2,932 6,451 Gross amounts not offset: Cash collateral ( 3,200 ) - ( 3,200 ) Non-cash collateral (1) ( 319 ) - ( 319 ) Net amount $ - $ 2,932 $ 2,932 Financial Liabilities Gross amount of recognized liabilities $ 304 $ 6,504 $ 6,808 Gross amounts offset ( 50 ) - ( 50 ) Net amount of liabilities 254 6,504 6,758 Gross amounts not offset: Cash collateral ( 157 ) - ( 157 ) Non-cash collateral (1) ( 46 ) - ( 46 ) Net amount $ 51 $ 6,504 $ 6,555 (1) Excludes excess non-cash collateral received of $ 1.1 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. There was no excess non-cash collateral pledged as of December 31, 2022. As Restated As of December 31, 2021 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 9,705 $ 2,551 $ 12,256 Gross amounts offset ( 4,008 ) - ( 4,008 ) Net amount of assets 5,697 2,551 8,248 Gross amounts not offset: Cash collateral ( 5,564 ) - ( 5,564 ) Non-cash collateral (1) ( 133 ) - ( 133 ) Net amount $ - $ 2,551 $ 2,551 Financial Liabilities Gross amount of recognized liabilities $ 351 $ 8,727 $ 9,078 Gross amounts offset ( 70 ) - ( 70 ) Net amount of liabilities 281 8,727 9,008 Gross amounts not offset: Cash collateral ( 44 ) - ( 44 ) Non-cash collateral (1) - - - Net amount $ 237 $ 8,727 $ 8,964 (1) Excludes excess non-cash collateral received of $ 362 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements. There was no excess non-cash collateral pledged as of December 31, 2021 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Federal Income Taxes [Abstract] | |
Federal Income Tax Expense | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Current $ ( 24 ) $ 20 $ ( 59 ) Deferred ( 308 ) 400 3 Federal income tax expense (benefit) $ ( 332 ) $ 420 $ ( 56 ) |
Reconciliation Of The Effective Tax Rate Differences | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Income (loss) before taxes $ ( 1,617 ) $ 2,529 $ 535 Federal statutory rate 21 % 21 % 21 % Federal income tax expense (benefit) at federal statutory rate ( 340 ) 531 112 Effect of: Tax-preferred investment income (1) ( 90 ) ( 88 ) ( 98 ) Tax credits ( 42 ) ( 26 ) ( 39 ) Excess tax benefits from stock-based compensation ( 1 ) - 2 Goodwill impairment 133 - - Tax impact associated with the Tax Cuts and Jobs Act (2) - - ( 37 ) Other items 8 3 4 Federal income tax expense (benefit) $ ( 332 ) $ 420 $ ( 56 ) Effective tax rate 21 % 17 % - 10 % (1) Relates primarily to separate account dividends eligible for the dividends-received deduction. (2) In 2020, we recognized a $ 37 million tax benefit attributable to the carry back of a 2020 net operating loss under the provisions of the Coronavirus Aid, Relief, and Economic Security Act, which provides for a five-year carryback period. |
Federal Income Tax Asset (Liability) | As Restated As of December 31, 2022 2021 Current $ 353 $ 382 Deferred 824 ( 3,122 ) Total federal income tax asset (liability) $ 1,177 $ ( 2,740 ) |
Significant components of deferred tax assets and liabilities | As Restated As of December 31, 2022 2021 Deferred Tax Assets Future contract benefits and other contract holder funds $ 430 $ 297 Reinsurance-related embedded derivative liability - 121 Compensation and benefit plans 152 180 Intangibles 18 25 Net unrealized loss on fixed maturity AFS securities 2,161 - Net unrealized loss on trading securities 70 - Investment activity 296 - Net operating losses 278 292 Other 30 34 Total deferred tax assets $ 3,435 $ 949 Deferred Tax Liabilities DAC $ 1,827 $ 433 VOBA 275 147 Net unrealized gain on fixed maturity AFS securities - 2,706 Net unrealized gain on trading securities - 64 Investment activity - 421 Reinsurance-related embedded derivative asset 143 - Other 366 300 Total deferred tax liabilities $ 2,611 $ 4,071 Net deferred tax asset (liability) $ 824 $ ( 3,122 ) |
Reconciliation Of Unrecognized Tax Benefits | As Restated For the Years Ended December 31, 2022 2021 Balance as of beginning-of-year $ 45 $ 43 Increases for prior year tax positions - 2 Balance as of end-of-year $ 45 $ 45 |
DAC, VOBA, DSI and DFEL (Tables
DAC, VOBA, DSI and DFEL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DAC, VOBA, DSI and DFEL [Abstract] | |
DAC | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Balance as of beginning-of-year $ 5,802 $ 5,590 $ 7,418 Cumulative effect from adoption of new accounting standard - - 5 Business acquired (sold) through reinsurance - ( 362 ) ( 26 ) Deferrals 1,372 1,364 1,427 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 772 ) ( 977 ) ( 811 ) Unlocking ( 152 ) ( 558 ) ( 211 ) Adjustment related to realized (gains) losses ( 112 ) ( 47 ) ( 35 ) Adjustment related to unrealized (gains) losses 6,648 792 ( 2,177 ) Balance as of end-of-year $ 12,786 $ 5,802 $ 5,590 |
VOBA | For the Years Ended December 31, 2022 2021 2020 Balance as of beginning-of-year $ 184 $ 234 $ 327 Business acquired (sold) through reinsurance - ( 288 ) - Deferrals 2 - 3 Amortization: Amortization, excluding unlocking ( 76 ) ( 91 ) ( 107 ) Unlocking 70 ( 8 ) ( 201 ) Accretion of interest (1) 22 35 44 Adjustment related to realized (gains) losses ( 2 ) ( 3 ) - Adjustment related to unrealized (gains) losses 629 305 168 Balance as of end-of-year $ 829 $ 184 $ 234 (1) The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2 % to 6.9 %. |
Estimated Future Amortization Of VOBA | 2023 $ 33 2024 35 2025 34 2026 33 2027 31 |
DSI | For the Years Ended December 31, 2022 2021 2020 Balance as of beginning-of-year $ 245 $ 259 $ 281 Deferrals 6 5 7 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 14 ) ( 25 ) ( 20 ) Unlocking 2 - ( 1 ) Adjustment related to realized (gains) losses ( 1 ) ( 2 ) ( 2 ) Adjustment related to unrealized (gains) losses 20 8 ( 6 ) Balance as of end-of-year $ 258 $ 245 $ 259 |
DFEL | For the Years Ended December 31, 2022 2021 2020 Balance as of beginning-of-year $ 399 $ 396 $ 646 Cumulative effect from adoption of new accounting standard - - 4 Business acquired (sold) through reinsurance - ( 290 ) - Deferrals 1,083 1,014 1,002 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 531 ) ( 593 ) ( 529 ) Unlocking ( 48 ) ( 387 ) ( 275 ) Adjustment related to realized (gains) losses ( 28 ) ( 22 ) 16 Adjustment related to unrealized (gains) losses 4,820 281 ( 468 ) Balance as of end-of-year $ 5,695 $ 399 $ 396 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
Changes In Carrying Amount Of Goodwill, By Reportable Segment | For the Year Ended December 31, 2022 Gross Accumulated Net Goodwill Impairment Goodwill Net as of as of as of Goodwill Beginning- Beginning- Beginning- as of End- of-Year of-Year of-Year Impairment of-Year Life Insurance $ 2,186 $ ( 1,552 ) $ 634 $ ( 634 ) $ - Annuities 1,040 ( 600 ) 440 - 440 Group Protection 684 - 684 - 684 Retirement Plan Services 20 - 20 - 20 Total goodwill $ 3,930 $ ( 2,152 ) $ 1,778 $ ( 634 ) $ 1,144 For the Year Ended December 31, 2021 Gross Accumulated Net Goodwill Impairment Goodwill Net as of as of as of Goodwill Beginning- Beginning- Beginning- as of End- of-Year of-Year of-Year Impairment of-Year Life Insurance $ 2,186 $ ( 1,552 ) $ 634 $ - $ 634 Annuities 1,040 ( 600 ) 440 - 440 Group Protection 684 - 684 - 684 Retirement Plan Services 20 - 20 - 20 Total goodwill $ 3,930 $ ( 2,152 ) $ 1,778 $ - $ 1,778 |
Schedule Of Intangible Assets By Reportable Segment | As Restated As of December 31, 2022 As of December 31, 2021 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Life Insurance: Sales force $ 100 $ 67 $ 100 $ 63 Group Protection: VOCRA 576 115 576 85 VODA 31 10 31 7 Retirement Plan Services: Mutual fund contract rights (1) 5 - 5 - Total $ 712 $ 192 $ 712 $ 155 (1) No amortization recorded as the intangible asset has indefinite life. |
Future estimated amortization of specifically identifiable intangible assets | 2023 $ 37 2024 37 2025 37 2026 37 2027 37 Thereafter 330 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance [Abstract] | |
Reinsurance amounts recorded on Consolidated Statements of Comprehensive Income (Loss) | As Restated For the For the For the Year Ended Year Ended Year Ended December 31, December 31, December 31, 2022 2021 2020 Direct insurance premiums and fee income $ 13,807 $ 14,028 $ 13,159 Reinsurance assumed 102 97 101 Reinsurance ceded ( 2,285 ) ( 2,136 ) ( 2,018 ) Total insurance premiums and fee income $ 11,624 $ 11,989 $ 11,242 Direct insurance benefits $ 14,982 $ 10,578 $ 10,497 Reinsurance recoveries ( 4,181 ) ( 2,539 ) ( 2,447 ) Total benefits $ 10,801 $ 8,039 $ 8,050 |
Schedule Of Assets In Support Of Reserves | As of December 31, 2022 2021 Fixed maturity AFS securities $ 474 $ 744 Trading securities 2,644 3,399 Equity securities 60 54 Mortgage loans on real estate 487 739 Derivative investments 39 93 Other investments 42 227 Cash and invested cash 26 110 Accrued investment income 35 33 Other assets 2 5 Total $ 3,809 $ 5,404 |
Guaranteed Benefit Features (Ta
Guaranteed Benefit Features (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Guaranteed Benefit Features [Abstract] | |
Information On Guaranteed Death Benefit Features | As of December 31, 2022 (1) 2021 (1) Return of Net Deposits Total account value $ 94,297 $ 117,503 Net amount at risk (2) 1,376 84 Average attained age of contract holders 67 years 67 years Minimum Return Total account value $ 71 $ 102 Net amount at risk (2) 14 11 Average attained age of contract holders 79 years 79 years Guaranteed minimum return 5 % 5 % Anniversary Contract Value Total account value $ 21,730 $ 28,788 Net amount at risk (2) 3,699 400 Average attained age of contract holders 73 years 73 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account value that is subject to market fluctuations. |
Summary Of Guaranteed Death Benefit Liabilities | For the Years Ended December 31, 2022 2021 2020 Balance as of beginning-of-year $ 132 $ 121 $ 117 Changes in reserves 210 31 30 Benefits paid ( 58 ) ( 20 ) ( 26 ) Balance as of end-of-year $ 284 $ 132 $ 121 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | As of December 31, 2022 2021 Asset Type Domestic equity $ 58,640 $ 77,290 International equity 15,959 21,223 Fixed income 35,982 45,231 Total $ 110,581 $ 143,744 |
Liability For Unpaid Claims (Ta
Liability For Unpaid Claims (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Liability For Unpaid Claims [Abstract] | |
Changes In Liability For Unpaid Claims | For the Years Ended December 31, 2022 2021 2020 Balance as of beginning-of-year $ 6,280 $ 5,934 $ 5,552 Reinsurance recoverable 147 151 152 Net balance as of beginning-of-year 6,133 5,783 5,400 Incurred related to: Current year 3,875 4,026 3,517 Prior years: Interest 159 141 148 All other incurred (1) ( 190 ) ( 271 ) ( 209 ) Total incurred 3,844 3,896 3,456 Paid related to: Current year ( 1,951 ) ( 2,074 ) ( 1,707 ) Prior years ( 1,638 ) ( 1,472 ) ( 1,366 ) Total paid ( 3,589 ) ( 3,546 ) ( 3,073 ) Net balance as of end-of-year 6,388 6,133 5,783 Reinsurance recoverable 143 147 151 Balance as of end-of-year $ 6,531 $ 6,280 $ 5,934 (1) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably. |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Short-Term and Long-Term Debt [Abstract] | |
Schedule of Debt | As of December 31, 2022 2021 Short-Term Debt Short-term debt (1) $ 562 $ 1,084 Long-Term Debt, Excluding Current Portion 9.76 % surplus note, due 2024 $ 50 $ 50 6.56 % surplus note, due 2028 500 500 LIBOR + 111 bps surplus note, due 2028 71 71 LIBOR + 226 bps surplus note, due 2028 568 593 6.03 % surplus note, due 2028 750 750 LIBOR + 200 bps surplus note, due 2035 30 30 LIBOR + 155 bps surplus note, due 2037 25 25 4.20 % surplus note, due 2037 50 50 LIBOR + 100 bps surplus note, due 2037 154 194 4.225 % surplus note, due 2037 28 28 4.00 % surplus note, due 2037 30 30 4.50 % surplus note, due 2038 13 13 Total long-term debt $ 2,269 $ 2,334 (1) The short-term debt represents short-term notes payable to LNC. |
Future Principal Payments | 2023 $ - 2024 50 2025 - 2026 - 2027 - Thereafter 2,219 Total $ 2,269 |
Credit facilities and letters of credit | As of December 31, 2022 Expiration Maximum LOCs Date Available Issued Credit Facilities Five-year revolving credit facility June 19, 2026 $ 2,500 $ 1,635 LOC facility (1) August 26, 2031 979 948 LOC facility (1) October 1, 2031 891 891 Total $ 4,370 $ 3,474 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Contingencies and Commitments [Abstract] | |
Finance Lease Expense | For the Years Ended December 31, 2022 2021 2020 Amortization of finance lease assets (1) $ 23 $ 38 $ 53 Interest on finance lease liabilities (2) 4 3 6 Total $ 27 $ 41 $ 59 (1) Amortization of finance lease assets is reported in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss). (2) Interest on finance lease liabilities is reported in interest and debt expense on the Consolidated Statements of Comprehensive Income (Loss). |
Cash Flow Information Related To Leases | For the Years Ended December 31, 2022 2021 2020 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47 $ 40 $ 43 Financing cash flows from finance leases 74 62 53 Supplemental Non-Cash Information ROU assets obtained in exchange for new lease obligations: Operating leases $ 6 $ 8 $ 10 |
Future Minimum Lease Payments | Our future minimum lease payments (in millions) under non-cancellable leases as of December 31, 2022, were as follows: Operating Finance Leases Leases 2023 $ 34 $ 82 2024 32 18 2025 27 7 2026 23 4 2027 15 - Thereafter 16 - Total future minimum lease payments 147 111 Less: Amount representing interest 28 5 Present value of minimum lease payments $ 119 $ 106 As of December 31, 2022, we had no leases that had not yet commenced. Certain Financing Arrangements We periodically enter into sale-leaseback arrangements that do not meet the criteria of a sale for accounting purposes. As such, we account for these transactions as financing arrangements. As of December 31, 2022 and 2021, we had $ 558 million and $ 375 million, respectively, of financing obligations reported within other liabilities on the Consolidated Balance Sheets. Future payments due on certain financing arrangements (in millions) as of December 31, 2022, were as follows: 2023 $ 43 2024 95 2025 127 2026 175 2027 191 Thereafter - Total future minimum lease payments 631 Less: Amount representing interest 73 Present value of minimum lease payments $ 558 |
Shares and Stockholder's Equi_2
Shares and Stockholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Shares and Stockholder's Equity [Abstract] | |
Components And Changes In Accumulated OCI | As Restated For the For the For the Year Ended Year Ended Year Ended December 31, December 31, December 31, 2022 2021 2020 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Balance as of beginning-of-year $ 6,315 $ 8,993 $ 5,637 Cumulative effect from adoption of new accounting standards - - 40 Unrealized holding gains (losses) arising during the year ( 24,477 ) ( 4,475 ) 7,585 Change in foreign currency exchange rate adjustment ( 321 ) ( 146 ) 180 Change in DAC, VOBA, DSI, future contract benefits and other contract holder 7,426 1,818 ( 3,559 ) funds Income tax benefit (expense) 3,716 600 ( 901 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) ( 13 ) 624 ( 52 ) Associated amortization of DAC, VOBA, DSI and DFEL 44 ( 23 ) 38 Income tax benefit (expense) ( 7 ) ( 126 ) 3 Balance as of end-of-year $ ( 7,365 ) $ 6,315 $ 8,993 Unrealized OTTI on Fixed Maturity AFS Securities Balance as of beginning-of-year $ - $ - $ 40 (Increases) attributable to: Cumulative effect from adoption of new accounting standards - - ( 40 ) Balance as of end-of-year $ - $ - $ - Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 240 $ 42 $ 181 Unrealized holding gains (losses) arising during the year ( 154 ) 141 77 Change in foreign currency exchange rate adjustment 312 152 ( 174 ) Change in DAC, VOBA, DSI and DFEL ( 29 ) 7 ( 23 ) Income tax benefit (expense) ( 28 ) ( 65 ) 26 Less: Reclassification adjustment for gains (losses) included in net income (loss) 103 49 64 Associated amortization of DAC, VOBA, DSI and DFEL ( 62 ) ( 2 ) ( 7 ) Income tax benefit (expense) ( 9 ) ( 10 ) ( 12 ) Balance as of end-of-year $ 309 $ 240 $ 42 Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 11 ) $ ( 14 ) $ ( 22 ) Adjustment arising during the year ( 6 ) 4 10 Income tax benefit (expense) - ( 1 ) ( 2 ) Balance as of end-of-year $ ( 17 ) $ ( 11 ) $ ( 14 ) |
Schedule of Reclassifications Out Of AOCI | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other Investments Gross reclassification $ ( 13 ) $ 624 $ ( 52 ) Realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL 44 ( 23 ) 38 Realized gain (loss) Reclassification before income tax benefit (expense) 31 601 ( 14 ) Income (loss) before taxes Income tax benefit (expense) ( 7 ) ( 126 ) 3 Federal income tax expense (benefit) Reclassification, net of income tax $ 24 $ 475 $ ( 11 ) Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 2 $ 3 $ 2 Net investment income Foreign currency contracts 62 48 56 Net investment income Foreign currency contracts 39 ( 2 ) 6 Realized gain (loss) Total gross reclassifications 103 49 64 Associated amortization of DAC, VOBA, DSI and DFEL ( 62 ) ( 2 ) ( 7 ) Commissions and other expenses Reclassifications before income tax benefit (expense) 41 47 57 Income (loss) before taxes Income tax benefit (expense) ( 9 ) ( 10 ) ( 12 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 32 $ 37 $ 45 Net income (loss) |
Realized Gain (Loss) (Tables)
Realized Gain (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Realized Gain (Loss) [Abstract] | |
Schedule Of Realized Gain (Loss) | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Fixed maturity AFS securities: Gross gains $ 37 $ 660 $ 26 Gross losses ( 50 ) ( 36 ) ( 78 ) Credit loss benefit (expense) (1) ( 14 ) ( 11 ) ( 25 ) Realized gain (loss) on equity securities (2) 12 41 8 Credit loss benefit (expense) on mortgage loans on real estate ( 3 ) 111 ( 117 ) Credit loss benefit (expense) on reinsurance-related assets (3) ( 126 ) 2 - Realized gain (loss) on the mark-to-market on certain instruments (4)(5) 683 169 ( 142 ) Other gain (loss) on investments ( 35 ) - ( 7 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds ( 18 ) ( 25 ) 31 Total realized gain (loss) related to financial instruments and reinsurance-related assets 486 911 ( 304 ) Indexed annuity and IUL contracts net derivative results: (6) Gross gain (loss) 74 22 38 Associated amortization of DAC, VOBA, DSI and DFEL ( 56 ) 4 ( 26 ) GLB fees ceded to LNBAR and attributed fees: Gross gain (loss) ( 260 ) ( 192 ) ( 205 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 30 ) ( 34 ) ( 29 ) Total realized gain (loss) $ 214 $ 711 $ ( 526 ) (1) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (2) Includes mark-to-market adjustments on equity securities still held of $ 7 million (as restated), $ 44 million (as restated) and $ 8 million for the years ended December 31, 2022, 2021 and 2020, respectively. (3) See Note 8 for information on credit losses on reinsurance-related assets. (4) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance-related embedded derivatives, mortgage loans on real estate accounted for under the fair value option and trading securities. See Notes 1 and 8 for information regarding modified coinsurance . (5) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $( 24 ) million, $ 3 million and $( 24 ) million for the years ended December 31, 2022, 2021 and 2020, respectively. (6) Represents the net difference between the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. |
Commissions and Other Expenses
Commissions and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commissions and Other Expenses [Abstract] | |
Details underlying commissions and other expenses | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Commissions $ 2,201 $ 2,227 $ 2,193 General and administrative expenses 2,200 2,187 2,014 Expenses associated with reserve financing and LOCs 60 57 55 DAC and VOBA deferrals and interest, net of amortization ( 466 ) 235 ( 144 ) Broker-dealer expenses 419 441 378 Specifically identifiable intangible asset amortization 37 37 37 Taxes, licenses and fees 348 350 336 Transaction and integration costs related to mergers, acquisitions and divestitures - 14 20 Total $ 4,799 $ 5,548 $ 4,889 |
Retirement and Deferred Compe_2
Retirement and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement and Deferred Compensation Plans [Abstract] | |
Benefit Plans' Assets And Obligations | As of or For the Years Ended December 31, 2022 2021 2022 2021 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 77 $ 108 $ 9 $ 8 Projected benefit obligation 82 107 6 9 Funded status $ ( 5 ) $ 1 $ 3 $ ( 1 ) Amounts Recognized on the Consolidated Balance Sheets Other assets $ - $ 4 $ 3 $ - Other liabilities ( 5 ) ( 3 ) - ( 1 ) Net amount recognized $ ( 5 ) $ 1 $ 3 $ ( 1 ) Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 5.66 % 3.07 % 5.70 % 3.10 % Net periodic benefit cost: Weighted-average discount rate 3.07 % 2.95 % 3.73 % 2.96 % Expected return on plan assets 5.00 % 4.25 % 6.50 % 6.50 % |
Fair Value Of Benefit Plan Assets | As of December 31, 2022 2021 Fixed maturity securities: Corporate bonds $ 33 $ 49 U.S. government bonds 17 20 CMBS 2 2 Common stock 22 32 Cash and invested cash 3 5 Other investments 9 8 Total $ 86 $ 116 |
Deferred Compensation Plans Liabilities And Investments | As of December 31, 2022 2021 Total liabilities (1) $ 623 $ 755 Investments dedicated to fund liabilities (2) 206 254 (1) Reported in other liabilities on the Consolidated Balance Sheets. (2) Reported in other assets on the Consolidated Balance Sheets. |
Stock-Based Incentive Compens_2
Stock-Based Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Incentive Compensation Plans [Abstract] | |
Compensation Expense By Award Type | For the Years Ended December 31, 2022 2021 2020 Stock options $ 6 $ 8 $ 9 Performance shares 9 17 5 RSUs 33 33 34 Total $ 48 $ 58 $ 48 Recognized tax benefit $ 11 $ 12 $ 10 |
Statutory Information and Res_2
Statutory Information and Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statutory Information and Restrictions [Abstract] | |
Statutory Financial Information | As of December 31, 2022 2021 U.S. capital and surplus $ 8,507 $ 8,647 For the Years Ended December 31, 2022 2021 2020 U.S. net gain (loss) from operations, after-tax $ 1,708 $ ( 1,285 ) $ ( 247 ) U.S. net income (loss) 1,965 ( 569 ) 53 U.S. dividends to LNC holding company 645 1,910 660 |
Effects On statutory Surplus Compared To NAIC Statutory Surplus | As of December 31, 2022 2021 State Prescribed Practices Calculation of reserves using the Indiana universal life method $ 3 $ 6 Conservative valuation rate on certain annuities ( 36 ) ( 40 ) Calculation of reserves using continuous CARVM ( 1 ) - Conservative Reg 213 reserves on variable annuity and individual life contracts ( 37 ) ( 27 ) State Permitted Practice Derivative instruments and equity indexed reserves 14 ( 113 ) Assets in group fixed annuity contracts held at general account values 436 - Vermont Subsidiaries Permitted Practices Lesser of LOC and XXX additional reserve as surplus 1,838 1,847 LLC notes and variable value surplus notes 1,547 1,616 Excess of loss reinsurance agreements 549 493 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As Restated As of December 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 99,465 $ 99,465 $ 117,476 $ 117,476 Trading securities 3,446 3,446 4,405 4,405 Equity securities 427 427 371 371 Mortgage loans on real estate 18,211 16,477 17,893 18,599 Derivative investments 3,519 3,519 5,697 5,697 Other investments 3,577 3,577 3,435 3,435 Cash and invested cash 2,499 2,499 2,331 2,331 Other assets: GLB direct embedded derivatives 1,697 1,697 1,967 1,967 GLB ceded embedded derivatives 29 29 56 56 Reinsurance-related embedded derivatives 681 681 - - Indexed annuity ceded embedded derivatives 525 525 528 528 LPR ceded derivative 212 212 318 318 Separate account assets 143,536 143,536 182,583 182,583 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 4,783 ) ( 4,783 ) ( 6,131 ) ( 6,131 ) Other contract holder funds: Remaining guaranteed interest and similar contracts ( 1,686 ) ( 1,686 ) ( 1,788 ) ( 1,788 ) Account values of certain investment contracts ( 43,545 ) ( 34,244 ) ( 41,164 ) ( 47,828 ) Short-term debt ( 562 ) ( 562 ) ( 1,084 ) ( 1,084 ) Long-term debt ( 2,269 ) ( 2,166 ) ( 2,334 ) ( 2,675 ) Other liabilities: Reinsurance-related embedded derivatives - - ( 578 ) ( 578 ) Derivative liabilities ( 254 ) ( 254 ) ( 281 ) ( 281 ) GLB ceded embedded derivatives ( 1,721 ) ( 1,721 ) ( 2,018 ) ( 2,018 ) |
Schedule Of Mortgage Loans With Election Of Fair Value Option | As of December 31, 2022 2021 Fair value $ 487 $ 739 Aggregate contractual principal 514 742 |
Fair Value Of Assets And Liabilities On A Recurring Basis | As Restated As of December 31, 2022 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 73,980 $ 5,186 $ 79,166 U.S. government bonds 332 19 - 351 State and municipal bonds - 4,850 35 4,885 Foreign government bonds - 311 - 311 RMBS - 1,835 1 1,836 CMBS - 1,667 - 1,667 ABS - 9,782 1,117 10,899 Hybrid and redeemable preferred securities 40 261 49 350 Trading securities - 2,865 581 3,446 Equity securities - 274 153 427 Mortgage loans on real estate - - 487 487 Derivative investments (1) - 5,929 605 6,534 Other investments – short-term investments - 30 - 30 Cash and invested cash - 2,499 - 2,499 Other assets: GLB direct embedded derivatives - - 1,697 1,697 GLB ceded embedded derivatives - - 29 29 Reinsurance-related embedded derivatives - 681 - 681 Indexed annuity ceded embedded derivatives - - 525 525 LPR ceded derivative - - 212 212 Separate account assets 412 143,124 - 143,536 Total assets $ 784 $ 248,107 $ 10,677 $ 259,568 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 4,783 ) $ ( 4,783 ) Other liabilities: Derivative liabilities (1) - ( 2,666 ) ( 603 ) ( 3,269 ) GLB ceded embedded derivatives - - ( 1,721 ) ( 1,721 ) Total liabilities $ - $ ( 2,666 ) $ ( 7,107 ) $ ( 9,773 ) As Restated As of December 31, 2021 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 88,622 $ 8,801 $ 97,423 U.S. government bonds 395 5 - 400 State and municipal bonds - 6,377 - 6,377 Foreign government bonds - 382 41 423 RMBS - 2,302 3 2,305 CMBS - 1,590 - 1,590 ABS - 7,636 870 8,506 Hybrid and redeemable preferred securities 53 309 90 452 Trading securities 32 3,545 828 4,405 Equity securities 7 273 91 371 Mortgage loans on real estate - - 739 739 Derivative investments (1) - 9,626 149 9,775 Other investments – short-term investments - 114 - 114 Cash and invested cash - 2,331 - 2,331 Other assets: GLB direct embedded derivatives - - 1,967 1,967 GLB ceded embedded derivatives - - 56 56 Indexed annuity ceded embedded derivatives - - 528 528 LPR ceded derivative - - 318 318 Separate account assets 646 181,929 - 182,575 Total assets $ 1,133 $ 305,041 $ 14,481 $ 320,655 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 6,131 ) $ ( 6,131 ) Other liabilities: Reinsurance-related embedded derivatives - ( 578 ) - ( 578 ) Derivative liabilities (1) - ( 4,231 ) ( 128 ) ( 4,359 ) GLB ceded embedded derivatives - - ( 2,018 ) ( 2,018 ) Total liabilities $ - $ ( 4,809 ) $ ( 8,277 ) $ ( 13,086 ) (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. |
Fair Value Measured On A Recurring Basis Reconciliation | As Restated For the Year Ended December 31, 2022 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 8,801 $ 1 $ ( 1,542 ) $ 592 $ ( 2,666 ) $ 5,186 State and municipal bonds - - ( 1 ) - 36 35 Foreign government bonds 41 - ( 6 ) ( 30 ) ( 5 ) - RMBS 3 - 1 21 ( 24 ) 1 CMBS - - - 17 ( 17 ) - ABS 870 - ( 113 ) 676 ( 316 ) 1,117 Hybrid and redeemable preferred securities 90 ( 4 ) ( 21 ) ( 12 ) ( 4 ) 49 Trading securities 828 ( 80 ) - ( 152 ) ( 15 ) 581 Equity securities 91 52 - 25 ( 15 ) 153 Mortgage loans on real estate 739 ( 20 ) ( 5 ) ( 227 ) - 487 Derivative investments 21 2 ( 6 ) - ( 15 ) 2 Other assets: GLB direct embedded derivatives (3) 1,967 ( 270 ) - - - 1,697 GLB ceded embedded derivatives (3) 56 ( 27 ) - - - 29 Indexed annuity ceded embedded derivatives (3) 528 ( 215 ) - 212 - 525 LPR ceded derivative (4) 318 ( 106 ) - - - 212 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (3) ( 6,131 ) 1,975 - ( 627 ) - ( 4,783 ) Other liabilities – GLB ceded embedded derivatives (3) ( 2,018 ) 297 - - - ( 1,721 ) Total, net $ 6,204 $ 1,605 $ ( 1,693 ) $ 495 $ ( 3,041 ) $ 3,570 As Restated For the Year Ended December 31, 2021 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 7,761 $ 3 $ ( 182 ) $ 1,189 $ 30 $ 8,801 U.S. government bonds 5 - - ( 5 ) - - Foreign government bonds 74 - ( 11 ) 80 ( 102 ) 41 RMBS 2 - - 2 ( 1 ) 3 CMBS 1 ( 1 ) - 8 ( 8 ) - ABS 570 1 ( 9 ) 602 ( 294 ) 870 Hybrid and redeemable preferred securities 103 - 25 ( 38 ) - 90 Trading securities 643 ( 3 ) - 210 ( 22 ) 828 Equity securities 57 38 - ( 4 ) - 91 Mortgage loans on real estate 832 11 5 ( 109 ) - 739 Derivative investments 1,542 1,255 ( 3 ) ( 139 ) ( 2,634 ) 21 Other assets: GLB direct embedded derivatives (3) 450 1,517 - - - 1,967 GLB ceded embedded derivatives (3) 82 ( 26 ) - - - 56 Indexed annuity ceded embedded derivatives (3) 550 87 - ( 109 ) - 528 LPR ceded derivative (4) - - - - 318 318 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (3) ( 3,594 ) ( 2,709 ) - 172 - ( 6,131 ) Other liabilities – GLB ceded embedded derivatives (3) ( 531 ) ( 1,487 ) - - - ( 2,018 ) Total, net $ 8,547 $ ( 1,314 ) $ ( 175 ) $ 1,859 $ ( 2,713 ) $ 6,204 For the Year Ended December 31, 2020 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net Value Investments: (2) Fixed maturity AFS securities: Corporate bonds $ 6,978 $ ( 7 ) $ 281 $ 435 $ 74 $ 7,761 U.S. government bonds 5 - - - - 5 Foreign government bonds 90 - 3 ( 19 ) - 74 RMBS 11 - - - ( 9 ) 2 CMBS 1 - - - - 1 ABS 268 - 10 495 ( 203 ) 570 Hybrid and redeemable preferred securities 78 - ( 2 ) 9 18 103 Trading securities 666 10 - ( 32 ) ( 1 ) 643 Equity securities 30 4 - 18 5 57 Mortgage loans on real estate - ( 1 ) ( 10 ) 56 787 832 Derivative investments 868 986 267 ( 363 ) ( 216 ) 1,542 Other assets: (3) GLB direct embedded derivatives 450 - - - - 450 GLB ceded embedded derivatives 60 22 - - - 82 Indexed annuity ceded embedded derivatives 927 538 - ( 915 ) - 550 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (3) ( 2,585 ) ( 1,009 ) - - - ( 3,594 ) Other liabilities – GLB ceded embedded derivatives (3) ( 510 ) ( 21 ) - - - ( 531 ) Total, net $ 7,337 $ 522 $ 549 $ ( 316 ) $ 455 $ 8,547 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5). (2) Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (3) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (4) Gains (losses) from the changes in fair value are included in benefits on the Consolidated Statements of Comprehensive Income (Loss). |
Schedule Of Investment Holdings Movements | For the Year Ended December 31, 2022 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,335 $ ( 398 ) $ ( 81 ) $ ( 231 ) $ ( 33 ) $ 592 Foreign government bonds - - ( 30 ) - - ( 30 ) RMBS 21 - - - - 21 CMBS 17 - - - - 17 ABS 918 - - ( 235 ) ( 7 ) 676 Hybrid and redeemable preferred securities - - - - ( 12 ) ( 12 ) Trading securities 287 ( 229 ) - ( 210 ) - ( 152 ) Equity securities 34 ( 9 ) - - - 25 Mortgage loans on real estate 15 - - ( 242 ) - ( 227 ) Other assets – indexed annuity ceded embedded derivatives 124 - - 88 - 212 Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 710 ) - - 83 - ( 627 ) Total, net $ 2,041 $ ( 636 ) $ ( 111 ) $ ( 747 ) $ ( 52 ) $ 495 For the Year Ended December 31, 2021 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,861 $ ( 110 ) $ ( 109 ) $ ( 423 ) $ ( 30 ) $ 1,189 U.S. government bonds - - ( 5 ) - - ( 5 ) Foreign government bonds 80 - - - - 80 RMBS 2 - - - - 2 CMBS 8 - - - - 8 ABS 835 - - ( 233 ) - 602 Hybrid and redeemable preferred securities 12 ( 20 ) - - ( 30 ) ( 38 ) Trading securities 383 ( 25 ) - ( 148 ) - 210 Equity securities 6 ( 10 ) - - - ( 4 ) Mortgage loans on real estate 96 ( 101 ) ( 26 ) ( 78 ) - ( 109 ) Derivative investments 174 ( 124 ) ( 189 ) - - ( 139 ) Other assets – indexed annuity ceded embedded derivatives 55 - - ( 164 ) - ( 109 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 400 ) - - 572 - 172 Total, net $ 3,112 $ ( 390 ) $ ( 329 ) $ ( 474 ) $ ( 60 ) $ 1,859 For the Year Ended December 31, 2020 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,123 $ ( 318 ) $ ( 43 ) $ ( 195 ) $ ( 132 ) $ 435 Foreign government bonds - - ( 19 ) - - ( 19 ) ABS 571 - - ( 76 ) - 495 Hybrid and redeemable preferred securities 13 ( 4 ) - - - 9 Trading securities 300 ( 126 ) ( 40 ) ( 166 ) - ( 32 ) Equity securities 20 ( 2 ) - - - 18 Mortgage loans on real estate 71 ( 15 ) - - - 56 Derivative investments 520 ( 412 ) ( 471 ) - - ( 363 ) Other assets – indexed annuity ceded embedded derivatives 25 - - ( 940 ) - ( 915 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 284 ) - - 284 - - Total, net $ 2,359 $ ( 877 ) $ ( 573 ) $ ( 1,093 ) $ ( 132 ) $ ( 316 ) |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Trading securities (1) $ ( 81 ) $ 4 $ - Equity securities (1) 54 40 - Mortgage loans on real estate (1) ( 20 ) 12 - Derivative investments (1) 2 1,051 536 Other assets – LPR ceded derivative (2) ( 106 ) - - Embedded derivatives: (1) Indexed annuity and IUL contracts ( 95 ) 44 634 Other assets – GLB direct and ceded 486 2,315 671 Other liabilities – GLB ceded ( 483 ) ( 2,310 ) ( 671 ) Total, net $ (243 ) $ 1,156 $ 1,170 (1) Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss). (2) Included in benefits on the Consolidated Statements of Comprehensive Income (Loss). |
Changes in Unrealized Gains (Losses) Included in OCI | For the Years Ended December 31, 2022 2021 2020 Fixed maturity AFS securities: Corporate bonds $ ( 1,553 ) $ ( 183 ) $ 60 State and municipal bonds ( 1 ) - - Foreign government bonds ( 7 ) ( 10 ) 4 ABS ( 115 ) ( 9 ) 5 Hybrid and redeemable preferred securities ( 21 ) 26 ( 3 ) Mortgage loans on real estate ( 5 ) 4 - Total, net $ ( 1,702 ) $ ( 172 ) $ 66 |
Components Of The Transfers In And Out Of Level 3 | 1 For the Year Ended December 31, 2022 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 296 $ ( 2,962 ) $ ( 2,666 ) State and municipal bonds 36 - 36 Foreign government bonds - ( 5 ) ( 5 ) RMBS - ( 24 ) ( 24 ) CMBS - ( 17 ) ( 17 ) ABS 16 ( 332 ) ( 316 ) Hybrid and redeemable preferred securities - ( 4 ) ( 4 ) Trading securities 4 ( 19 ) ( 15 ) Equity securities - ( 15 ) ( 15 ) Derivative investments - ( 15 ) ( 15 ) Total, net $ 352 $ ( 3,393 ) $ ( 3,041 ) For the Year Ended December 31, 2021 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 164 $ ( 134 ) $ 30 Foreign government bonds - ( 102 ) ( 102 ) RMBS - ( 1 ) ( 1 ) CMBS - ( 8 ) ( 8 ) ABS 36 ( 330 ) ( 294 ) Trading securities 12 ( 34 ) ( 22 ) Derivative investments 24 ( 2,658 ) ( 2,634 ) Other assets – LPR ceded derivative 318 - 318 Total, net $ 554 $ ( 3,267 ) $ ( 2,713 ) For the Year Ended December 31, 2020 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 290 $ ( 216 ) $ 74 RMBS 1 ( 10 ) ( 9 ) ABS - ( 203 ) ( 203 ) Hybrid and redeemable preferred securities 18 - 18 Trading securities 1 ( 2 ) ( 1 ) Equity securities 5 - 5 Mortgage loans on real estate 787 - 787 Derivative investments - ( 216 ) ( 216 ) Total, net $ 1,102 $ ( 647 ) $ 455 |
Fair Value Inputs Quantitative Information | Weighted Average Fair Valuation Significant Assumption or Input Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 201 Discounted cash flow Liquidity/duration adjustment (2) ( 0.2 ) % - 4.2 % 2.1 % State and municipal bonds 35 Discounted cash flow Liquidity/duration adjustment (2) 1.2 % - 2.4 % 2.3 % ABS 15 Discounted cash flow Liquidity/duration adjustment (2) 1.4 % - 1.4 % 1.4 % Hybrid and redeemable preferred securities 3 Discounted cash flow Liquidity/duration adjustment (2) 1.5 % - 1.5 % 1.5 % Equity securities 4 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 4.5 % 4.5 % Other assets: GLB direct and ceded embedded derivatives 1,726 Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.35 % - 2.41 % 1.73 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 14.47 % Indexed annuity ceded embedded derivatives 525 Discounted cash flow Lapse rate (3) 0 % - 9 % (10) Mortality rate (7) (9) (10) LPR ceded derivative 212 Discounted cash flow Long-term lapse rate (3) 0 % - 1.55 % (10) NPR (6) 0.35 % - 2.41 % 1.75 % Mortality rate (7) (9) (10) Liabilities Future contract benefits – indexed annuity contracts embedded derivatives $ ( 4,845 ) Discounted cash flow Lapse rate (3) 0 % - 9 % (10) Mortality rate (7) (9) (10) Other liabilities – GLB ceded embedded derivatives ( 1,721 ) Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) Premiums utilization factor (5) 80 % - 115 % (10) NPR (6) 0.35 % - 2.41 % 1.73 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 14.47 % (1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (3) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapse rates during the surrender charge period. (4) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (6) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input for direct and ceded embedded derivatives was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. The NPR input for LPR ceded derivative was weighted using a simple average. (7) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (8) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index. (9) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Revenues Operating revenues: Life Insurance $ 6,694 $ 7,700 $ 7,086 Annuities 4,372 4,565 4,067 Group Protection 5,303 4,994 4,792 Retirement Plan Services 1,258 1,307 1,197 Other Operations 133 158 166 Excluded realized gain (loss), pre-tax 8 504 ( 742 ) Amortization of DFEL associated with benefit ratio unlocking, pre-tax 2 - - Total revenues $ 17,770 $ 19,228 $ 16,566 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Net Income (Loss) Income (loss) from operations: Life Insurance $ ( 1,841 ) $ 530 $ ( 12 ) Annuities 1,308 1,325 1,125 Group Protection 101 ( 128 ) 42 Retirement Plan Services 198 223 157 Other Operations ( 376 ) ( 242 ) ( 161 ) Excluded realized gain (loss), after-tax 6 397 ( 586 ) Benefit ratio unlocking, after-tax ( 47 ) 15 4 Impairment of intangibles ( 634 ) - - Net impact from the Tax Cuts and Jobs Act - - 37 Transaction and integration costs related to mergers, acquisitions and divestitures, after-tax - ( 11 ) ( 15 ) Net income (loss) $ ( 1,285 ) $ 2,109 $ 591 |
Reconciliation of Net Investment Income From Segments to Consolidated | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Net Investment Income Life Insurance $ 2,464 $ 3,054 $ 2,689 Annuities 1,386 1,314 1,192 Group Protection 333 364 329 Retirement Plan Services 966 982 924 Other Operations 125 125 130 Total net investment income $ 5,274 $ 5,839 $ 5,264 |
Reconciliation of DAC VOBA Amortization From Segments to Consolidated | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Amortization of DAC and VOBA, Net of Interest Life Insurance $ 537 $ 1,029 $ 768 Annuities 249 433 376 Group Protection 106 107 114 Retirement Plan Services 17 31 28 Total amortization of DAC and VOBA, net of interest $ 909 $ 1,600 $ 1,286 |
Reconciliation of Federal Income Tax Expense (Benefit) From Segments to Consolidated | As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Federal Income Tax Expense (Benefit) Life Insurance $ ( 520 ) $ 120 $ ( 28 ) Annuities 224 252 187 Group Protection 28 ( 34 ) 11 Retirement Plan Services 32 46 21 Other Operations ( 85 ) ( 70 ) ( 51 ) Excluded realized gain (loss) 2 107 ( 155 ) Benefit ratio unlocking ( 12 ) 4 1 Net impact from the Tax Cuts and Jobs Act - - ( 37 ) Transaction and integration costs related to mergers, acquisitions and divestitures ( 1 ) ( 5 ) ( 5 ) Total federal income tax expense (benefit) $ ( 332 ) $ 420 $ ( 56 ) |
Reconciliation of Assets From Segments to Consolidated Balance Sheet | As Restated As of December 31, 2022 2021 Assets Life Insurance $ 98,540 $ 106,977 Annuities 166,261 200,833 Group Protection 9,802 10,519 Retirement Plan Services 41,909 47,633 Other Operations 21,754 25,556 Total assets $ 338,266 $ 391,518 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |
Summary of supplemental cash flow data | As Restated For the For the For the Year Ended Year Ended Year Ended December 31, December 31, December 31, 2022 2021 2020 Interest paid $ 126 $ 115 $ 127 Income taxes paid (received) ( 61 ) 29 78 Significant non-cash investing transactions: Equity securities received in exchange of fixed maturity AFS securities - - 17 Significant non-cash financing transactions: Net increase (decrease) in fixed maturity AFS securities and accrued investment income in connection with reinsurance transactions 54 ( 3,700 ) 58 |
Transactions With Affiliates (T
Transactions With Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transactions With Affiliates [Abstract] | |
Schedule Of Transactions With Affiliates | The following summarizes transactions with affiliates (in millions) and the associated line item on the Consolidated Balance Sheets: As Restated As of As of December 31, December 31, 2022 2021 Assets with affiliates: Inter-company notes $ 1,216 $ 1,474 Fixed maturity AFS securities Ceded reinsurance contracts ( 67 ) ( 150 ) Deferred acquisition costs and value of business acquired Accrued inter-company interest receivable 13 11 Accrued investment income Ceded reinsurance contracts 4,388 2,867 Reinsurance recoverables, net of allowance for credit losses Ceded reinsurance contracts 676 529 Other assets Cash management agreement 124 3,854 Other assets Service agreement receivable 6 64 Other assets Liabilities with affiliates: Assumed reinsurance contracts 16 21 Future contract benefits Assumed reinsurance contracts 361 364 Other contract holder funds Ceded reinsurance contracts ( 7 ) ( 37 ) Other contract holder funds Inter-company short-term debt 562 1,084 Short-term debt Inter-company long-term debt 2,269 2,334 Long-term debt Ceded reinsurance contracts 4,421 7,467 Other liabilities Accrued inter-company interest payable 15 4 Other liabilities Service agreement payable 41 35 Other liabilities The following summarizes transactions with affiliates (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss): As Restated For the For the Years Ended Year Ended December 31, December 31, 2022 2021 2020 Revenues with affiliates: Premiums received on assumed (paid on ceded) reinsurance contracts $ ( 449 ) $ ( 463 ) $ ( 439 ) Insurance premiums Fees for management of general account ( 140 ) ( 138 ) ( 140 ) Net investment income Net investment income on ceded funds withheld treaties ( 161 ) ( 113 ) ( 119 ) Net investment income Net investment income on inter-company notes 40 29 40 Net investment income Realized gains (losses) on ceded reinsurance contracts: GLB reserves embedded derivatives 282 ( 1,305 ) ( 30 ) Realized gain (loss) Other gains (losses) 631 94 ( 175 ) Realized gain (loss) Reinsurance-related settlements ( 1,068 ) 1,626 193 Realized gain (loss) Amortization of deferred gain (loss) on reinsurance contracts 3 3 3 Amortization of deferred gain (loss) on business sold through reinsurance Benefits and expenses with affiliates: Interest credited on assumed reinsurance contracts 47 48 45 Interest credited Reinsurance (recoveries) benefits on ceded reinsurance ( 1,715 ) ( 443 ) ( 585 ) Benefits Ceded reinsurance contracts ( 86 ) - ( 1 ) Commissions and other expenses Service agreement payments (receipts) ( 53 ) ( 29 ) ( 17 ) Commissions and other expenses Interest expense on inter-company debt 120 107 116 Interest and debt expense |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Results of Operations [Abstract] | |
Quarterly Results Of Operations | CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As Restated As of As of As of March 31, June 30, September 30, 2021 2021 2021 ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: $ 104,684 , $ 105,530 and $ 106,752 at March 31, 2021, June 30, 2021 and September 30, 2021, respectively; allowance for credit losses: $ 14 , $ 9 and $ 17 at March 31, 2021, June 30, 2021 and September 30, 2021, respectively) $ 115,695 $ 120,452 $ 120,794 Trading securities 4,287 4,154 4,114 Equity securities 142 191 260 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: $ 874 , $ 818 and $ 792 at March 31, 2021, June 30, 2021 and September 30, 2021, respectively) 17,159 17,487 17,633 Policy loans 2,487 2,395 2,364 Derivative investments 3,482 4,729 5,075 Other investments 3,023 3,221 3,302 Total investments 146,275 152,629 153,542 Cash and invested cash 1,086 1,914 2,194 Deferred acquisition costs and value of business acquired 7,606 6,207 5,918 Accrued investment income 1,255 1,215 1,251 Reinsurance recoverables, net of allowance for credit losses 18,583 18,257 18,207 Goodwill 1,778 1,778 1,778 Other assets 21,930 22,871 22,941 Separate account assets 171,339 178,795 175,667 Total assets $ 369,852 $ 383,666 $ 381,498 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 38,941 $ 39,621 $ 40,016 Other contract holder funds 106,461 108,249 108,765 Short-term debt 568 457 483 Long-term debt 2,332 2,332 2,333 Payables for collateral on investments 7,593 8,192 8,378 Other liabilities 20,415 21,934 22,308 Separate account liabilities 171,339 178,795 175,667 Total liabilities 347,649 359,580 357,950 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,919 11,930 11,940 Retained earnings 4,444 4,595 4,664 Accumulated other comprehensive income (loss) 5,840 7,561 6,944 Total stockholder’s equity 22,203 24,086 23,548 Total liabilities and stockholder’s equity $ 369,852 $ 383,666 $ 381,498 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As Restated As of As of As of March 31, June 30, September 30, 2022 2022 2022 ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: $ 106,939 , $ 108,963 and $ 110,323 at March 31, 2022, June 30, 2022 and September 30, 2022, respectively; allowance for credit losses: $ 20 , $ 12 and $ 18 at March 31, 2022, June 30, 2022 and September 30, 2022, respectively) $ 109,889 $ 102,954 $ 97,391 Trading securities 4,313 3,760 3,527 Equity securities 393 412 427 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: $ 537 , $ 528 and $ 495 at March 31, 2022, June 30, 2022 and September 30, 2022, respectively) 17,795 17,830 17,975 Policy loans 2,325 2,355 2,333 Derivative investments 4,574 3,167 3,398 Other investments 3,521 3,782 3,620 Total investments 142,810 134,260 128,671 Cash and invested cash 1,722 1,277 1,291 Deferred acquisition costs and value of business acquired 8,689 11,832 13,765 Accrued investment income 1,209 1,196 1,238 Reinsurance recoverables, net of allowance for credit losses 22,870 23,554 24,256 Goodwill 1,778 1,778 1,144 Other assets 22,284 20,447 21,560 Separate account assets 168,879 145,791 137,295 Total assets $ 370,241 $ 340,135 $ 329,220 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 39,186 $ 38,735 $ 41,162 Other contract holder funds 112,399 114,652 117,756 Short-term debt 737 698 771 Long-term debt 2,311 2,267 2,267 Payables for collateral on investments 8,905 7,525 6,855 Other liabilities 19,524 17,378 16,635 Separate account liabilities 168,879 145,791 137,295 Total liabilities 351,941 327,046 322,741 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,948 12,020 12,114 Retained earnings 4,799 4,962 2,398 Accumulated other comprehensive income (loss) 1,553 ( 3,893 ) ( 8,033 ) Total stockholder’s equity 18,300 13,089 6,479 Total liabilities and stockholder’s equity $ 370,241 $ 340,135 $ 329,220 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) As Restated For the Three Months Ended March 31, June 30, September 30, December 31, 2021 2021 2021 2021 Revenues Insurance premiums $ 1,324 $ 1,334 $ 1,341 $ 1,360 Fee income 1,529 1,603 1,931 1,567 Net investment income 1,446 1,509 1,510 1,374 Realized gain (loss) 212 ( 169 ) ( 32 ) 700 Amortization of deferred gain on business sold through reinsurance 7 7 8 10 Other revenues 170 162 149 176 Total revenues 4,688 4,446 4,907 5,187 Expenses Interest credited 738 740 742 691 Benefits 2,183 1,848 1,839 2,169 Commissions and other expenses 1,171 1,260 1,841 1,276 Interest and debt expense 29 28 29 28 Spark program expense 13 21 22 31 Total expenses 4,134 3,897 4,473 4,195 Income (loss) before taxes 554 549 434 992 Federal income tax expense (benefit) 97 83 65 176 Net income (loss) 457 466 369 816 Other comprehensive income (loss), net of tax ( 3,181 ) 1,721 ( 617 ) ( 400 ) Comprehensive income (loss) $ ( 2,724 ) $ 2,187 $ ( 248 ) $ 416 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) As Restated For the Three Months Ended March 31, June 30, September 30, December 31, 2022 2022 2022 2022 Revenues Insurance premiums $ 1,406 $ 1,436 $ 1,496 $ 1,503 Fee income 1,502 1,446 1,438 1,397 Net investment income 1,352 1,338 1,241 1,343 Realized gain (loss) 257 70 11 ( 124 ) Amortization of deferred gain on business sold through reinsurance 10 10 9 8 Other revenues 154 133 162 172 Total revenues 4,681 4,433 4,357 4,299 Expenses Interest credited 691 701 717 740 Benefits 2,199 2,051 4,498 2,053 Commissions and other expenses 1,191 1,077 1,205 1,326 Interest and debt expense 29 31 36 41 Spark program expense 31 44 44 48 Impairment of intangibles - - 634 - Total expenses 4,141 3,904 7,134 4,208 Income (loss) before taxes 540 529 ( 2,777 ) 91 Federal income tax expense (benefit) 82 86 ( 488 ) ( 14 ) Net income (loss) 458 443 ( 2,289 ) 105 Other comprehensive income (loss), net of tax ( 4,991 ) ( 5,446 ) ( 4,140 ) 960 Comprehensive income (loss) $ ( 4,533 ) $ ( 5,003 ) $ ( 6,429 ) $ 1,065 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY (Unaudited, in millions) As Restated For the Three Months Ended March 31, June 30, September 30, 2021 2021 2021 Common Stock Balance as of beginning-of-period $ 11,853 $ 11,919 $ 11,930 Capital contribution from Lincoln National Corporation 65 - - Stock compensation/issued for benefit plans 1 11 10 Balance as of end-of-period 11,919 11,930 11,940 Retained Earnings Balance as of beginning-of-period 4,167 4,444 4,595 Net income (loss) 457 466 369 Dividends paid to Lincoln National Corporation ( 180 ) ( 315 ) ( 300 ) Balance as of end-of-period 4,444 4,595 4,664 Accumulated Other Comprehensive Income (Loss) Balance as of beginning-of-period 9,021 5,840 7,561 Other comprehensive income (loss), net of tax ( 3,181 ) 1,721 ( 617 ) Balance as of end-of-period 5,840 7,561 6,944 Total stockholder’s equity as of end-of-period $ 22,203 $ 24,086 $ 23,548 As Restated For the Three Months Ended March 31, June 30, September 30, 2022 2022 2022 Common Stock Balance as of beginning-of-period $ 11,950 $ 11,948 $ 12,020 Capital contribution from Lincoln National Corporation - 65 80 Stock compensation/issued for benefit plans ( 2 ) 7 14 Balance as of end-of-period 11,948 12,020 12,114 Retained Earnings Balance as of beginning-of-period 4,366 4,799 4,962 Net income (loss) 458 443 ( 2,289 ) Dividends paid to Lincoln National Corporation ( 25 ) ( 280 ) ( 275 ) Balance as of end-of-period 4,799 4,962 2,398 Accumulated Other Comprehensive Income (Loss) Balance as of beginning-of-period 6,544 1,553 ( 3,893 ) Other comprehensive income (loss), net of tax ( 4,991 ) ( 5,446 ) ( 4,140 ) Balance as of end-of-period 1,553 ( 3,893 ) ( 8,033 ) Total stockholder’s equity as of end-of-period $ 18,300 $ 13,089 $ 6,479 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions) As Restated Three Six Nine Months Months Months Ended Ended Ended March 31, June 30, September 30, 2021 2021 2021 Cash Flows from Operating Activities Net income (loss) $ 457 $ 923 $ 1,292 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss ( 212 ) ( 43 ) ( 11 ) Sales and maturities (purchases) of trading securities, net 118 230 239 Amortization of deferred gain (loss) on business sold through reinsurance ( 7 ) ( 14 ) ( 22 ) Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization 50 106 325 Premiums and fees receivable ( 163 ) ( 98 ) ( 99 ) Accrued investment income ( 51 ) ( 11 ) ( 44 ) Insurance liabilities and reinsurance-related balances ( 263 ) 5 ( 301 ) Accrued expenses ( 35 ) 35 200 Federal income tax accruals 97 167 233 Cash management agreement ( 182 ) ( 1,223 ) ( 1,367 ) Other ( 203 ) ( 219 ) ( 226 ) Net cash provided by (used in) operating activities ( 394 ) ( 142 ) 219 Cash Flows from Investing Activities Purchases of available-for-sale securities and equity securities ( 3,803 ) ( 8,212 ) ( 11,776 ) Sales of available-for-sale securities and equity securities 592 1,277 1,441 Maturities of available-for-sale securities 1,862 4,570 6,897 Purchases of alternative investments ( 163 ) ( 360 ) ( 504 ) Sales and repayments of alternative investments 54 128 258 Issuance of mortgage loans on real estate ( 868 ) ( 1,609 ) ( 2,188 ) Repayment and maturities of mortgage loans on real estate 398 846 1,267 Repayment (issuance) of policy loans, net ( 76 ) 16 47 Net change in collateral on investments, derivatives and related settlements 987 1,704 2,132 Other ( 30 ) ( 67 ) ( 181 ) Net cash provided by (used in) investing activities ( 1,047 ) ( 1,707 ) ( 2,607 ) Cash Flows from Financing Activities Capital contribution from Lincoln National Corporation 65 65 65 Payment of long-term debt, including current maturities ( 60 ) ( 60 ) ( 60 ) Issuance (payment) of short-term debt 71 ( 40 ) ( 14 ) Proceeds from certain financing arrangements - 50 50 Deposits of fixed account values, including the fixed portion of variable 3,136 6,370 9,138 Withdrawals of fixed account values, including the fixed portion of variable ( 1,764 ) ( 3,260 ) ( 4,935 ) Transfers from (to) separate accounts, net ( 130 ) ( 255 ) ( 254 ) Common stock issued for benefit plans ( 10 ) ( 11 ) ( 12 ) Dividends paid to Lincoln National Corporation ( 180 ) ( 495 ) ( 795 ) Other ( 63 ) ( 63 ) ( 63 ) Net cash provided by (used in) financing activities 1,065 2,301 3,120 Net increase (decrease) in cash, invested cash and restricted cash ( 376 ) 452 732 Cash, invested cash and restricted cash as of beginning-of-year 1,462 1,462 1,462 Cash, invested cash and restricted cash as of end-of-period $ 1,086 $ 1,914 $ 2,194 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions) As Restated Three Six Nine Months Months Months Ended Ended Ended March 31, June 30, September 30, 2022 2022 2022 Cash Flows from Operating Activities Net income (loss) $ 458 $ 900 $ ( 1,389 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized (gain) loss ( 257 ) ( 327 ) ( 338 ) Sales and maturities (purchases) of trading securities, net ( 189 ) 109 164 Amortization of deferred gain (loss) on business sold through reinsurance ( 10 ) ( 20 ) ( 29 ) Impairment of intangibles - - 634 Change in: Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization 24 ( 10 ) 3 Premiums and fees receivable ( 91 ) ( 71 ) ( 2 ) Accrued investment income ( 44 ) ( 40 ) ( 77 ) Insurance liabilities and reinsurance-related balances 299 81 2,311 Accrued expenses ( 229 ) ( 340 ) ( 375 ) Federal income tax accruals 82 192 ( 308 ) Cash management agreement 872 2,427 2,803 Other ( 3 ) 224 478 Net cash provided by (used in) operating activities 912 3,125 3,875 Cash Flows from Investing Activities Purchases of available-for-sale securities and equity securities ( 3,910 ) ( 8,090 ) ( 11,961 ) Sales of available-for-sale securities and equity securities 105 236 1,231 Maturities of available-for-sale securities 1,566 3,165 4,339 Purchases of alternative investments ( 141 ) ( 300 ) ( 453 ) Sales and repayments of alternative investments 130 181 380 Issuance of mortgage loans on real estate ( 539 ) ( 1,366 ) ( 1,924 ) Repayment and maturities of mortgage loans on real estate 716 1,422 1,866 Repayment (issuance) of policy loans, net 25 ( 6 ) 16 Net change in collateral on investments, derivatives and related settlements ( 242 ) ( 2,322 ) ( 3,667 ) Other ( 76 ) ( 93 ) ( 83 ) Net cash provided by (used in) investing activities ( 2,366 ) ( 7,173 ) ( 10,256 ) Cash Flows from Financing Activities Capital contribution from Lincoln National Corporation - 65 145 Payment of long-term debt, including current maturities - ( 40 ) ( 40 ) Issuance (payment) of short-term debt ( 347 ) ( 385 ) ( 313 ) Payment related to sale-leaseback transactions ( 4 ) ( 47 ) ( 52 ) Proceeds from certain financing arrangements - 53 53 Deposits of fixed account values, including the fixed portion of variable 3,041 6,892 11,049 Withdrawals of fixed account values, including the fixed portion of variable ( 1,873 ) ( 3,334 ) ( 4,970 ) Transfers from (to) separate accounts, net 70 116 71 Common stock issued for benefit plans ( 17 ) ( 21 ) ( 21 ) Dividends paid to Lincoln National Corporation ( 25 ) ( 305 ) ( 580 ) Other - - ( 1 ) Net cash provided by (used in) financing activities 845 2,994 5,341 Net increase (decrease) in cash, invested cash and restricted cash ( 609 ) ( 1,054 ) ( 1,040 ) Cash, invested cash and restricted cash as of beginning-of-year 2,331 2,331 2,331 Cash, invested cash and restricted cash as of end-of-period $ 1,722 $ 1,277 $ 1,291 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of March 31, 2021 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2021 - $ 104,684 ; allowance for credit losses: 2021 - $ 14 ) $ 115,695 $ - $ 115,695 Trading securities 4,308 ( 21 ) 4,287 Equity securities 121 21 142 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2021 - $ 874 ) 17,159 - 17,159 Policy loans 2,487 - 2,487 Derivative investments 3,453 29 3,482 Other investments 3,024 ( 1 ) 3,023 Total investments 146,247 28 146,275 Cash and invested cash 1,086 - 1,086 Deferred acquisition costs and value of business acquired 7,606 - 7,606 Accrued investment income 1,255 - 1,255 Reinsurance recoverables, net of allowance for credit losses 18,583 - 18,583 Goodwill 1,778 - 1,778 Other assets 22,344 ( 414 ) 21,930 Separate account assets 171,339 - 171,339 Total assets $ 370,238 $ ( 386 ) $ 369,852 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 38,940 $ 1 $ 38,941 Other contract holder funds 106,461 - 106,461 Short-term debt 568 - 568 Long-term debt 2,332 - 2,332 Payables for collateral on investments 7,593 - 7,593 Other liabilities 20,795 ( 380 ) 20,415 Separate account liabilities 171,339 - 171,339 Total liabilities 348,028 ( 379 ) 347,649 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,919 - 11,919 Retained earnings 4,451 ( 7 ) 4,444 Accumulated other comprehensive income (loss) 5,840 - 5,840 Total stockholder’s equity 22,210 ( 7 ) 22,203 Total liabilities and stockholder’s equity $ 370,238 $ ( 386 ) $ 369,852 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of June 30, 2021 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2021 - $ 105,530 ; allowance for credit losses: 2021 - $ 9 ) $ 120,452 $ - $ 120,452 Trading securities 4,175 ( 21 ) 4,154 Equity securities 170 21 191 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2021 - $ 818 ) 17,487 - 17,487 Policy loans 2,395 - 2,395 Derivative investments 4,547 182 4,729 Other investments 3,223 ( 2 ) 3,221 Total investments 152,449 180 152,629 Cash and invested cash 1,914 - 1,914 Deferred acquisition costs and value of business acquired 6,207 - 6,207 Accrued investment income 1,215 - 1,215 Reinsurance recoverables, net of allowance for credit losses 18,257 - 18,257 Goodwill 1,778 - 1,778 Other assets 23,513 ( 642 ) 22,871 Separate account assets 178,795 - 178,795 Total assets $ 384,128 $ ( 462 ) $ 383,666 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 39,620 $ 1 $ 39,621 Other contract holder funds 108,249 - 108,249 Short-term debt 457 - 457 Long-term debt 2,332 - 2,332 Payables for collateral on investments 8,192 - 8,192 Other liabilities 22,394 ( 460 ) 21,934 Separate account liabilities 178,795 - 178,795 Total liabilities 360,039 ( 459 ) 359,580 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,930 - 11,930 Retained earnings 4,598 ( 3 ) 4,595 Accumulated other comprehensive income (loss) 7,561 - 7,561 Total stockholder’s equity 24,089 ( 3 ) 24,086 Total liabilities and stockholder’s equity $ 384,128 $ ( 462 ) $ 383,666 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of September 30, 2021 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2021 - $ 106,752 ; allowance for credit losses: 2021 - $ 17 ) $ 120,794 $ - $ 120,794 Trading securities 4,135 ( 21 ) 4,114 Equity securities 239 21 260 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2021 - $ 792 ) 17,633 - 17,633 Policy loans 2,364 - 2,364 Derivative investments 4,828 247 5,075 Other investments 3,305 ( 3 ) 3,302 Total investments 153,298 244 153,542 Cash and invested cash 2,194 - 2,194 Deferred acquisition costs and value of business acquired 5,917 1 5,918 Accrued investment income 1,251 - 1,251 Reinsurance recoverables, net of allowance for credit losses 18,207 - 18,207 Goodwill 1,778 - 1,778 Other assets 23,564 ( 623 ) 22,941 Separate account assets 175,667 - 175,667 Total assets $ 381,876 $ ( 378 ) $ 381,498 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 40,016 $ - $ 40,016 Other contract holder funds 108,762 3 108,765 Short-term debt 483 - 483 Long-term debt 2,333 - 2,333 Payables for collateral on investments 8,378 - 8,378 Other liabilities 22,683 ( 375 ) 22,308 Separate account liabilities 175,667 - 175,667 Total liabilities 358,322 ( 372 ) 357,950 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,940 - 11,940 Retained earnings 4,670 ( 6 ) 4,664 Accumulated other comprehensive income (loss) 6,944 - 6,944 Total stockholder’s equity 23,554 ( 6 ) 23,548 Total liabilities and stockholder’s equity $ 381,876 $ ( 378 ) $ 381,498 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of March 31, 2022 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $ 106,939 ; allowance for credit losses: 2022 - $ 20 ) $ 109,921 $ ( 32 ) $ 109,889 Trading securities 4,334 ( 21 ) 4,313 Equity securities 340 53 393 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $ 537 ) 17,795 - 17,795 Policy loans 2,325 - 2,325 Derivative investments 4,840 ( 266 ) 4,574 Other investments 3,527 ( 6 ) 3,521 Total investments 143,082 ( 272 ) 142,810 Cash and invested cash 1,722 - 1,722 Deferred acquisition costs and value of business acquired 8,688 1 8,689 Accrued investment income 1,209 - 1,209 Reinsurance recoverables, net of allowance for credit losses 22,870 - 22,870 Goodwill 1,778 - 1,778 Other assets 22,490 ( 206 ) 22,284 Separate account assets 168,879 - 168,879 Total assets $ 370,718 $ ( 477 ) $ 370,241 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 39,186 $ - $ 39,186 Other contract holder funds 112,387 12 112,399 Short-term debt 737 - 737 Long-term debt 2,311 - 2,311 Payables for collateral on investments 8,905 - 8,905 Other liabilities 20,484 ( 960 ) 19,524 Separate account liabilities 168,879 - 168,879 Total liabilities 352,889 ( 948 ) 351,941 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 11,948 - 11,948 Retained earnings 4,330 469 4,799 Accumulated other comprehensive income (loss) 1,551 2 1,553 Total stockholder’s equity 17,829 471 18,300 Total liabilities and stockholder’s equity $ 370,718 $ ( 477 ) $ 370,241 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of June 30, 2022 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $ 108,963 ; allowance for credit losses: 2022 - $ 12 ) $ 103,002 $ ( 48 ) $ 102,954 Trading securities 3,778 ( 18 ) 3,760 Equity securities 345 67 412 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $ 528 ) 17,830 - 17,830 Policy loans 2,355 - 2,355 Derivative investments 3,370 ( 203 ) 3,167 Other investments 3,758 24 3,782 Total investments 134,438 ( 178 ) 134,260 Cash and invested cash 1,277 - 1,277 Deferred acquisition costs and value of business acquired 11,832 - 11,832 Accrued investment income 1,196 - 1,196 Reinsurance recoverables, net of allowance for credit losses 23,554 - 23,554 Goodwill 1,778 - 1,778 Other assets 20,569 ( 122 ) 20,447 Separate account assets 145,791 - 145,791 Total assets $ 340,435 $ ( 300 ) $ 340,135 LIABILITIES AND STOCKHOLDER’S EQUITY Liabilities Future contract benefits $ 38,735 $ - $ 38,735 Other contract holder funds 114,634 18 114,652 Short-term debt 698 - 698 Long-term debt 2,267 - 2,267 Payables for collateral on investments 7,525 - 7,525 Other liabilities 18,158 ( 780 ) 17,378 Separate account liabilities 145,791 - 145,791 Total liabilities 327,808 ( 762 ) 327,046 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 12,020 - 12,020 Retained earnings 4,506 456 4,962 Accumulated other comprehensive income (loss) ( 3,899 ) 6 ( 3,893 ) Total stockholder’s equity 12,627 462 13,089 Total liabilities and stockholder’s equity $ 340,435 $ ( 300 ) $ 340,135 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except share data) As of September 30, 2022 As Previously Restatement As Reported Impacts Restated ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $ 110,323 ; allowance for credit losses: 2022 - $ 18 ) $ 97,391 $ - $ 97,391 Trading securities 3,527 - 3,527 Equity securities 427 - 427 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $ 495 ) 17,975 - 17,975 Policy loans 2,333 - 2,333 Derivative investments 3,624 ( 226 ) 3,398 Other investments 3,627 ( 7 ) 3,620 Total investments 128,904 ( 233 ) 128,671 Cash and invested cash 1,291 - 1,291 Deferred acquisition costs and value of business acquired 13,757 8 13,765 Accrued investment income 1,238 - 1,238 Reinsurance recoverables, net of allowance for credit losses 24,256 - 24,256 Goodwill 1,144 - 1,144 Other assets 21,848 ( 288 ) 21,560 Separate account assets 137,295 - 137,295 Total assets $ 329,733 $ ( 513 ) $ 329,220 LIABILITIES AND STOCKHOLDER'S EQUITY Liabilities Future contract benefits $ 41,162 $ - $ 41,162 Other contract holder funds 117,729 27 117,756 Short-term debt 771 - 771 Long-term debt 2,267 - 2,267 Payables for collateral on investments 6,855 - 6,855 Other liabilities 17,629 ( 994 ) 16,635 Separate account liabilities 137,295 - 137,295 Total liabilities 323,708 ( 967 ) 322,741 Contingencies and Commitments (See Note 13) Stockholder’s Equity Common stock – 10,000,000 shares authorized, issued and outstanding 12,114 - 12,114 Retained earnings 1,944 454 2,398 Accumulated other comprehensive income (loss) ( 8,033 ) - ( 8,033 ) Total stockholder’s equity 6,025 454 6,479 Total liabilities and stockholder’s equity $ 329,733 $ ( 513 ) $ 329,220 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended March 31, 2021 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,330 $ ( 6 ) $ 1,324 Fee income 1,524 5 1,529 Net investment income 1,447 ( 1 ) 1,446 Realized gain (loss) 211 1 212 Amortization of deferred gain on business sold through reinsurance 7 - 7 Other revenues 170 - 170 Total revenues 4,689 ( 1 ) 4,688 Expenses Interest credited 731 7 738 Benefits 2,182 1 2,183 Commissions and other expenses 1,171 - 1,171 Interest and debt expense 29 - 29 Spark program expense 13 - 13 Total expenses 4,126 8 4,134 Income (loss) before taxes 563 ( 9 ) 554 Federal income tax expense (benefit) 99 ( 2 ) 97 Net income (loss) 464 ( 7 ) 457 Other comprehensive income (loss), net of tax ( 3,181 ) - ( 3,181 ) Comprehensive income (loss) $ ( 2,717 ) $ ( 7 ) $ ( 2,724 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended June 30, 2021 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,328 $ 6 $ 1,334 Fee income 1,600 3 1,603 Net investment income 1,510 ( 1 ) 1,509 Realized gain (loss) ( 172 ) 3 ( 169 ) Amortization of deferred gain on business sold through reinsurance 7 - 7 Other revenues 162 - 162 Total revenues 4,435 11 4,446 Expenses Interest credited 732 8 740 Benefits 1,848 - 1,848 Commissions and other expenses 1,262 ( 2 ) 1,260 Interest and debt expense 28 - 28 Spark program expense 21 - 21 Total expenses 3,891 6 3,897 Income (loss) before taxes 544 5 549 Federal income tax expense (benefit) 82 1 83 Net income (loss) 462 4 466 Other comprehensive income (loss), net of tax 1,721 - 1,721 Comprehensive income (loss) $ 2,183 $ 4 $ 2,187 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended September 30, 2021 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,341 $ - $ 1,341 Fee income 1,927 4 1,931 Net investment income 1,511 ( 1 ) 1,510 Realized gain (loss) ( 24 ) ( 8 ) ( 32 ) Amortization of deferred gain on business sold through reinsurance 8 - 8 Other revenues 149 - 149 Total revenues 4,912 ( 5 ) 4,907 Expenses Interest credited 744 ( 2 ) 742 Benefits 1,840 ( 1 ) 1,839 Commissions and other expenses 1,839 2 1,841 Interest and debt expense 29 - 29 Spark program expense 22 - 22 Total expenses 4,474 ( 1 ) 4,473 Income (loss) before taxes 438 ( 4 ) 434 Federal income tax expense (benefit) 66 ( 1 ) 65 Net income (loss) 372 ( 3 ) 369 Other comprehensive income (loss), net of tax ( 617 ) - ( 617 ) Comprehensive income (loss) $ ( 245 ) $ ( 3 ) $ ( 248 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended December 31, 2021 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,360 $ - $ 1,360 Fee income 1,561 6 1,567 Net investment income 1,376 ( 2 ) 1,374 Realized gain (loss) 74 626 700 Amortization of deferred gain on business sold through reinsurance 18 ( 8 ) 10 Other revenues 176 - 176 Total revenues 4,565 622 5,187 Expenses Interest credited 686 5 691 Benefits 2,169 - 2,169 Commissions and other expenses 1,274 2 1,276 Interest and debt expense 28 - 28 Spark program expense 31 - 31 Total expenses 4,188 7 4,195 Income (loss) before taxes 377 615 992 Federal income tax expense (benefit) 46 130 176 Net income (loss) 331 485 816 Other comprehensive income (loss), net of tax ( 400 ) - ( 400 ) Comprehensive income (loss) $ ( 69 ) $ 485 $ 416 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended March 31, 2022 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,406 $ - $ 1,406 Fee income 1,502 - 1,502 Net investment income 1,353 ( 1 ) 1,352 Realized gain (loss) 266 ( 9 ) 257 Amortization of deferred gain on business sold through reinsurance 18 ( 8 ) 10 Other revenues 151 3 154 Total revenues 4,696 ( 15 ) 4,681 Expenses Interest credited 691 - 691 Benefits 2,199 - 2,199 Commissions and other expenses 1,192 ( 1 ) 1,191 Interest and debt expense 29 - 29 Spark program expense 31 - 31 Total expenses 4,142 ( 1 ) 4,141 Income (loss) before taxes 554 ( 14 ) 540 Federal income tax expense (benefit) 85 ( 3 ) 82 Net income (loss) 469 ( 11 ) 458 Other comprehensive income (loss), net of tax ( 4,993 ) 2 ( 4,991 ) Comprehensive income (loss) $ ( 4,524 ) $ ( 9 ) $ ( 4,533 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended June 30, 2022 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,436 $ - $ 1,436 Fee income 1,446 - 1,446 Net investment income 1,309 29 1,338 Realized gain (loss) 82 ( 12 ) 70 Amortization of deferred gain on business sold through reinsurance 18 ( 8 ) 10 Other revenues 163 ( 30 ) 133 Total revenues 4,454 ( 21 ) 4,433 Expenses Interest credited 701 - 701 Benefits 2,051 - 2,051 Commissions and other expenses 1,081 ( 4 ) 1,077 Interest and debt expense 31 - 31 Spark program expense 44 - 44 Total expenses 3,908 ( 4 ) 3,904 Income (loss) before taxes 546 ( 17 ) 529 Federal income tax expense (benefit) 90 ( 4 ) 86 Net income (loss) 456 ( 13 ) 443 Other comprehensive income (loss), net of tax ( 5,450 ) 4 ( 5,446 ) Comprehensive income (loss) $ ( 4,994 ) $ ( 9 ) $ ( 5,003 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended September 30, 2022 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,496 $ - $ 1,496 Fee income 1,438 - 1,438 Net investment income 1,272 ( 31 ) 1,241 Realized gain (loss) 5 6 11 Amortization of deferred gain on business sold through reinsurance 17 ( 8 ) 9 Other revenues 135 27 162 Total revenues 4,363 ( 6 ) 4,357 Expenses Interest credited 717 - 717 Benefits 4,498 - 4,498 Commissions and other expenses 1,208 ( 3 ) 1,205 Interest and debt expense 36 - 36 Spark program expense 44 - 44 Impairment of intangibles 634 - 634 Total expenses 7,137 ( 3 ) 7,134 Income (loss) before taxes ( 2,774 ) ( 3 ) ( 2,777 ) Federal income tax expense (benefit) ( 487 ) ( 1 ) ( 488 ) Net income (loss) ( 2,287 ) ( 2 ) ( 2,289 ) Other comprehensive income (loss), net of tax ( 4,134 ) ( 6 ) ( 4,140 ) Comprehensive income (loss) $ ( 6,421 ) $ ( 8 ) $ ( 6,429 ) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited, in millions) For the Three Months Ended December 31, 2022 As Previously Restatement As Reported Impacts Restated Revenues Insurance premiums $ 1,503 $ - $ 1,503 Fee income 1,397 - 1,397 Net investment income 1,336 7 1,343 Realized gain (loss) ( 152 ) 28 ( 124 ) Amortization of deferred gain on business sold through reinsurance 16 ( 8 ) 8 Other revenues 172 - 172 Total revenues 4,272 27 4,299 Expenses Interest credited 740 - 740 Benefits 2,053 - 2,053 Commissions and other expenses 1,318 8 1,326 Interest and debt expense 41 - 41 Spark program expense 48 - 48 Total expenses 4,200 8 4,208 Income (loss) before taxes 72 19 91 Federal income tax |
Nature of Operations, Basis o_4
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Oct. 01, 2021 USD ($) | Dec. 31, 2022 USD ($) item | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Product Information [Line Items] | ||||||||||||||||
Number of wholly owned subsidiaries | item | 1 | |||||||||||||||
Estimated Contract Life UL Policies (In Years) | 40 years | |||||||||||||||
Estimated Contract Life VUL Policies (In Years) | 40 years | |||||||||||||||
Front End Load Annuity Products Assumed Life (In Years) | 25 years | |||||||||||||||
Number Of Scenarios Used Per Policy To Value A Block Of Guarantees | 100 | 100 | ||||||||||||||
Total Scenarios To Value GLB liability | item | 44,000,000 | 44,000,000 | ||||||||||||||
Participating Policies as a Percentage of the Face Amount of the Insurance In Force | 1% | 1% | 1% | 1% | ||||||||||||
Dividend Expenses | $ 49 | $ 48 | $ 53 | |||||||||||||
Other revenues | $ 172 | $ 162 | $ 133 | $ 154 | $ 176 | $ 149 | $ 162 | $ 170 | 621 | 657 | 553 | |||||
Insurance fees | 1,397 | 1,438 | 1,446 | 1,502 | 1,567 | 1,931 | 1,603 | 1,529 | 5,783 | 6,630 | 6,120 | |||||
Reinsurance amount of in-force executive benefit and universal life reserves | 9,400 | 9,400 | ||||||||||||||
Coinsurance investments book value | $ 4,600 | |||||||||||||||
Coinsurance investments fair value | 5,200 | |||||||||||||||
Realized gain on coinsurance investments | 635 | |||||||||||||||
Deferred gain on coinsurance investments | $ 797 | |||||||||||||||
Amortization of deferred gain on business sold through reinsurance | 8 | 9 | 10 | 10 | 10 | 8 | 7 | 7 | $ 20 | $ 14 | $ 29 | $ 22 | 37 | 32 | 33 | |
Realized gains (losses) | (124) | 11 | 70 | 257 | 700 | (32) | (169) | 212 | 327 | 43 | 338 | 11 | 214 | 711 | (526) | |
Commissions and other expenses | 1,326 | 1,205 | 1,077 | 1,191 | 1,276 | 1,841 | 1,260 | 1,171 | 4,799 | 5,548 | 4,889 | |||||
Retained earnings | 2,436 | 2,398 | 4,962 | 4,799 | 4,366 | 4,664 | 4,595 | 4,444 | 4,962 | 4,595 | 2,398 | 4,664 | 2,436 | 4,366 | ||
Income (loss) before taxes | 91 | (2,777) | 529 | 540 | 992 | 434 | 549 | 554 | (1,617) | 2,529 | 535 | |||||
Other assets | 21,338 | 21,560 | 20,447 | 22,284 | 23,292 | 22,941 | 22,871 | 21,930 | 20,447 | 22,871 | 21,560 | 22,941 | 21,338 | 23,292 | ||
Other liabilities | 15,037 | 16,635 | 17,378 | 19,524 | 22,122 | 22,308 | 21,934 | 20,415 | 17,378 | 21,934 | 16,635 | 22,308 | 15,037 | 22,122 | ||
Federal income tax benefit | (14) | (488) | 86 | 82 | 176 | 65 | 83 | 97 | (332) | 420 | (56) | |||||
Derivative assets | 3,519 | 3,398 | 3,167 | 4,574 | 5,697 | 5,075 | 4,729 | 3,482 | 3,167 | 4,729 | 3,398 | 5,075 | 3,519 | 5,697 | ||
Other Adjustment [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Income (loss) before taxes | 16 | (16) | ||||||||||||||
Other assets | (70) | (760) | (70) | (760) | ||||||||||||
Other liabilities | (212) | (500) | (212) | (500) | ||||||||||||
Derivative assets | $ (142) | 260 | $ (142) | 260 | ||||||||||||
Sales Force [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Useful life | 25 years | |||||||||||||||
VOCRA [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Useful life | 20 years | |||||||||||||||
VODA [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Useful life | 13 years | |||||||||||||||
Commercial [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Loans Reported As Delinquent In Days | 60 days | |||||||||||||||
Number of missed payments to qualify as delinqent | item | 2 | |||||||||||||||
Period In Which Loans No Longer Accrue Interest In Days | 90 days | |||||||||||||||
Number of missed payments to qualify loans as non-accrual | item | 3 | |||||||||||||||
Loan-to-value ratio indicating principal is greater than collateral | 100% | |||||||||||||||
Residential [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Period In Which Loans No Longer Accrue Interest In Days | 90 days | |||||||||||||||
Lincoln Life & Annuity Company of New York [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Ownership percentage | 100% | |||||||||||||||
Lincoln Life Assurance Company of Boston ("LLACB") [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Ownership percentage | 100% | |||||||||||||||
Maximum [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Estimated Contract Life Fixed and Variable Deferred Annuities (In Years) | 30 years | |||||||||||||||
Maximum [Member] | Commercial [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Debt-service coverage ratio indicating property income not covering debt payments | 1 | |||||||||||||||
Minimum [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Estimated Contract Life Fixed and Variable Deferred Annuities (In Years) | 15 years | |||||||||||||||
Life Insurance Segment [Member] | Maximum [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Investment Yield Assumptions for Traditional Direct Individual Life Reserves | 7.75% | 7.75% | ||||||||||||||
Life Insurance Segment [Member] | Minimum [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Investment Yield Assumptions for Traditional Direct Individual Life Reserves | 2.25% | 2.25% | ||||||||||||||
Annuities Segment [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Other revenues | $ 468 | 497 | 404 | |||||||||||||
Fee income | $ 743 | 848 | 732 | |||||||||||||
Annuities Segment [Member] | Maximum [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Investment Yield Assumptions for Immediate and Deferred Paid-Up Annuities | 12.15% | 12.15% | ||||||||||||||
Annuities Segment [Member] | Minimum [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Investment Yield Assumptions for Immediate and Deferred Paid-Up Annuities | 0.50% | 0.50% | ||||||||||||||
Group Protection Segment [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Other revenues | $ 203 | 180 | $ 177 | |||||||||||||
Reinsurance Transactions, First Penn-Pacific Life Insurance [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 15 years | |||||||||||||||
Reinsurance Transactions, LNBAR [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 30 years | |||||||||||||||
Reinsurance Transactions, LNBAR, Amended [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 20 years | |||||||||||||||
Reinsurance Transactions, Athene [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 20 years | |||||||||||||||
Reinsurance Transactions, Security Life Of Denver Insurance Company [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Gain Loss On Ceded Contracts, Recognition Period | 30 years | |||||||||||||||
Restatement Impacts [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Other revenues | 27 | (30) | 3 | |||||||||||||
Insurance fees | 6 | 4 | 3 | 5 | 18 | |||||||||||
Amortization of deferred gain on business sold through reinsurance | $ (8) | (8) | (8) | (8) | (8) | (15) | (23) | $ (32) | (8) | |||||||
Realized gains (losses) | 28 | 6 | (12) | (9) | 626 | (8) | 3 | 1 | (20) | 4 | (15) | (5) | 13 | 622 | ||
Commissions and other expenses | 8 | (3) | (4) | (1) | 2 | 2 | (2) | 2 | ||||||||
Retained earnings | 468 | 454 | 456 | 469 | 480 | (6) | (3) | (7) | 456 | (3) | 454 | (6) | 468 | 480 | ||
Income (loss) before taxes | 19 | (3) | (17) | (14) | 615 | (4) | 5 | (9) | (15) | 607 | ||||||
Other assets | (185) | (288) | (122) | (206) | (754) | (623) | (642) | (414) | (122) | (642) | (288) | (623) | (185) | (754) | ||
Other liabilities | (796) | (994) | (780) | (960) | (986) | (375) | (460) | (380) | (780) | (460) | (994) | (375) | (796) | (986) | ||
Federal income tax benefit | 3 | (1) | (4) | (3) | 130 | (1) | 1 | (2) | (3) | 127 | ||||||
Derivative assets | (143) | $ (226) | $ (203) | $ (266) | 260 | $ 247 | $ 182 | $ 29 | $ (203) | $ 182 | $ (226) | $ 247 | (143) | 260 | ||
Restatement Impacts [Member] | Misstatement Associated With The Coinsurance Reinsurance Transaction [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Amortization of deferred gain on business sold through reinsurance | (32) | (8) | ||||||||||||||
Realized gains (losses) | 635 | |||||||||||||||
Commissions and other expenses | 4 | |||||||||||||||
Retained earnings | $ 467 | 492 | $ 467 | 492 | ||||||||||||
Other liabilities | 492 | $ 492 | ||||||||||||||
Federal income tax benefit | $ 131 |
Nature of Operations, Basis o_5
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Summary of Restated Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||||||||||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $110,944; 2021 - $104,491; allowance for credit losses: 2022 - $21; 2021 - $19) | $ 99,465 | $ 97,391 | $ 102,954 | $ 109,889 | $ 117,476 | $ 120,794 | $ 120,452 | $ 115,695 | ||
Trading securities | 3,446 | 3,527 | 3,760 | 4,313 | 4,405 | 4,114 | 4,154 | 4,287 | ||
Equity securities | 427 | 427 | 412 | 393 | 371 | 260 | 191 | 142 | ||
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $487; 2021 - $739) | 18,211 | 17,975 | 17,830 | 17,795 | 17,893 | 17,633 | 17,487 | 17,159 | ||
Policy loans | 2,345 | 2,333 | 2,355 | 2,325 | 2,349 | 2,364 | 2,395 | 2,487 | ||
Derivative investments | 3,519 | 3,398 | 3,167 | 4,574 | 5,697 | 5,075 | 4,729 | 3,482 | ||
Other investments | 3,577 | 3,620 | 3,782 | 3,521 | 3,445 | 3,302 | 3,221 | 3,023 | ||
Total investments | 130,990 | 128,671 | 134,260 | 142,810 | 151,636 | 153,542 | 152,629 | 146,275 | ||
Cash and invested cash | 2,499 | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | $ 1,462 | $ 1,879 |
Deferred acquisition costs and value of business acquired | 13,615 | 13,765 | 11,832 | 8,689 | 5,986 | 5,918 | 6,207 | 7,606 | 5,824 | |
Accrued investment income | 1,234 | 1,238 | 1,196 | 1,209 | 1,157 | 1,251 | 1,215 | 1,255 | ||
Reinsurance recoverables, net of allowance for credit losses | 23,910 | 24,256 | 23,554 | 22,870 | 22,755 | 18,207 | 18,257 | 18,583 | ||
Goodwill | 1,144 | 1,144 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | |
Other assets | 21,338 | 21,560 | 20,447 | 22,284 | 23,292 | 22,941 | 22,871 | 21,930 | ||
Separate account assets | 143,536 | 137,295 | 145,791 | 168,879 | 182,583 | 175,667 | 178,795 | 171,339 | ||
Total assets | 338,266 | 329,220 | 340,135 | 370,241 | 391,518 | 381,498 | 383,666 | 369,852 | ||
Liabilities | ||||||||||
Future contract benefits | 41,598 | 41,162 | 38,735 | 39,186 | 40,416 | 40,016 | 39,621 | 38,941 | ||
Other contract holder funds | 120,360 | 117,756 | 114,652 | 112,399 | 111,183 | 108,765 | 108,249 | 106,461 | ||
Short-term debt | 562 | 771 | 698 | 737 | 1,084 | 483 | 457 | 568 | ||
Long-term debt | 2,269 | 2,267 | 2,267 | 2,311 | 2,334 | 2,333 | 2,332 | 2,332 | ||
Payables for collateral on investments | 6,638 | 6,855 | 7,525 | 8,905 | 8,936 | 8,378 | 8,192 | 7,593 | ||
Other liabilities | 15,037 | 16,635 | 17,378 | 19,524 | 22,122 | 22,308 | 21,934 | 20,415 | ||
Separate account liabilities | 143,536 | 137,295 | 145,791 | 168,879 | 182,583 | 175,667 | 178,795 | 171,339 | ||
Total liabilities | 330,000 | 322,741 | 327,046 | 351,941 | 368,658 | 357,950 | 359,580 | 347,649 | ||
Contingencies and Commitments (See Note 13) | ||||||||||
Stockholder’s Equity | ||||||||||
Common stock – 10,000,000 shares authorized, issued and outstanding | 12,903 | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | ||
Retained earnings | 2,436 | 2,398 | 4,962 | 4,799 | 4,366 | 4,664 | 4,595 | 4,444 | ||
Accumulated other comprehensive income (loss) | (7,073) | (8,033) | (3,893) | 1,553 | 6,544 | 6,944 | 7,561 | 5,840 | ||
Total stockholder’s equity | 8,266 | 6,479 | 13,089 | 18,300 | 22,860 | 23,548 | 24,086 | 22,203 | 25,041 | |
Total liabilities and stockholder’s equity | 338,266 | 329,220 | 340,135 | 370,241 | 391,518 | 381,498 | 383,666 | 369,852 | ||
Fixed maturity available-for-sale securities (amortized cost) | 110,944 | 110,323 | 108,963 | 106,939 | 104,491 | 106,752 | 105,530 | 104,684 | ||
Fixed maturity, ACL | 21 | 18 | 12 | 20 | 19 | 17 | 9 | 14 | 13 | |
Mortgage loans on real estate, fair value | $ 487 | $ 495 | $ 528 | $ 537 | $ 739 | $ 792 | $ 818 | $ 874 | ||
Common stock - shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||
Common stock - shares issued (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||
Common stock - shares outstanding (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||
As Previously Reported [Member] | ||||||||||
Investments: | ||||||||||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $110,944; 2021 - $104,491; allowance for credit losses: 2022 - $21; 2021 - $19) | $ 99,465 | $ 97,391 | $ 103,002 | $ 109,921 | $ 117,511 | $ 120,794 | $ 120,452 | $ 115,695 | ||
Trading securities | 3,446 | 3,527 | 3,778 | 4,334 | 4,427 | 4,135 | 4,175 | 4,308 | ||
Equity securities | 427 | 427 | 345 | 340 | 314 | 239 | 170 | 121 | ||
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $487; 2021 - $739) | 18,211 | 17,975 | 17,830 | 17,795 | 17,893 | 17,633 | 17,487 | 17,159 | ||
Policy loans | 2,345 | 2,333 | 2,355 | 2,325 | 2,349 | 2,364 | 2,395 | 2,487 | ||
Derivative investments | 3,662 | 3,624 | 3,370 | 4,840 | 5,437 | 4,828 | 4,547 | 3,453 | ||
Other investments | 3,577 | 3,627 | 3,758 | 3,527 | 3,449 | 3,305 | 3,223 | 3,024 | ||
Total investments | 131,133 | 128,904 | 134,438 | 143,082 | 151,380 | 153,298 | 152,449 | 146,247 | ||
Cash and invested cash | 2,499 | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | $ 1,462 | |
Deferred acquisition costs and value of business acquired | 13,615 | 13,757 | 11,832 | 8,688 | 5,985 | 5,917 | 6,207 | 7,606 | ||
Accrued investment income | 1,234 | 1,238 | 1,196 | 1,209 | 1,157 | 1,251 | 1,215 | 1,255 | ||
Reinsurance recoverables, net of allowance for credit losses | 23,910 | 24,256 | 23,554 | 22,870 | 22,755 | 18,207 | 18,257 | 18,583 | ||
Goodwill | 1,144 | 1,144 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | ||
Other assets | 21,523 | 21,848 | 20,569 | 22,490 | 24,046 | 23,564 | 23,513 | 22,344 | ||
Separate account assets | 143,536 | 137,295 | 145,791 | 168,879 | 182,583 | 175,667 | 178,795 | 171,339 | ||
Total assets | 338,594 | 329,733 | 340,435 | 370,718 | 392,015 | 381,876 | 384,128 | 370,238 | ||
Liabilities | ||||||||||
Future contract benefits | 41,598 | 41,162 | 38,735 | 39,186 | 40,416 | 40,016 | 39,620 | 38,940 | ||
Other contract holder funds | 120,360 | 117,729 | 114,634 | 112,387 | 111,174 | 108,762 | 108,249 | 106,461 | ||
Short-term debt | 562 | 771 | 698 | 737 | 1,084 | 483 | 457 | 568 | ||
Long-term debt | 2,269 | 2,267 | 2,267 | 2,311 | 2,334 | 2,333 | 2,332 | 2,332 | ||
Payables for collateral on investments | 6,638 | 6,855 | 7,525 | 8,905 | 8,936 | 8,378 | 8,192 | 7,593 | ||
Other liabilities | 15,833 | 17,629 | 18,158 | 20,484 | 23,108 | 22,683 | 22,394 | 20,795 | ||
Separate account liabilities | 143,536 | 137,295 | 145,791 | 168,879 | 182,583 | 175,667 | 178,795 | 171,339 | ||
Total liabilities | 330,796 | 323,708 | 327,808 | 352,889 | 369,635 | 358,322 | 360,039 | 348,028 | ||
Contingencies and Commitments (See Note 13) | ||||||||||
Stockholder’s Equity | ||||||||||
Common stock – 10,000,000 shares authorized, issued and outstanding | 12,903 | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | ||
Retained earnings | 1,968 | 1,944 | 4,506 | 4,330 | 3,886 | 4,670 | 4,598 | 4,451 | ||
Accumulated other comprehensive income (loss) | (7,073) | (8,033) | (3,899) | 1,551 | 6,544 | 6,944 | 7,561 | 5,840 | ||
Total stockholder’s equity | 7,798 | 6,025 | 12,627 | 17,829 | 22,380 | 23,554 | 24,089 | 22,210 | ||
Total liabilities and stockholder’s equity | 338,594 | 329,733 | 340,435 | 370,718 | 392,015 | 381,876 | 384,128 | 370,238 | ||
Restatement Impacts [Member] | ||||||||||
Investments: | ||||||||||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $110,944; 2021 - $104,491; allowance for credit losses: 2022 - $21; 2021 - $19) | (48) | (32) | (35) | |||||||
Trading securities | (18) | (21) | (22) | (21) | (21) | (21) | ||||
Equity securities | 67 | 53 | 57 | 21 | 21 | 21 | ||||
Derivative investments | (143) | (226) | (203) | (266) | 260 | 247 | 182 | 29 | ||
Other investments | (7) | 24 | (6) | (4) | (3) | (2) | (1) | |||
Total investments | (143) | (233) | (178) | (272) | 256 | 244 | 180 | 28 | ||
Deferred acquisition costs and value of business acquired | 8 | 1 | 1 | 1 | ||||||
Other assets | (185) | (288) | (122) | (206) | (754) | (623) | (642) | (414) | ||
Total assets | (328) | (513) | (300) | (477) | (497) | (378) | (462) | (386) | ||
Liabilities | ||||||||||
Future contract benefits | 1 | 1 | ||||||||
Other contract holder funds | 27 | 18 | 12 | 9 | 3 | |||||
Other liabilities | (796) | (994) | (780) | (960) | (986) | (375) | (460) | (380) | ||
Total liabilities | (796) | (967) | (762) | (948) | (977) | (372) | (459) | (379) | ||
Contingencies and Commitments (See Note 13) | ||||||||||
Stockholder’s Equity | ||||||||||
Retained earnings | 468 | 454 | 456 | 469 | 480 | (6) | (3) | (7) | ||
Accumulated other comprehensive income (loss) | 6 | 2 | ||||||||
Total stockholder’s equity | 468 | 454 | 462 | 471 | 480 | (6) | (3) | (7) | ||
Total liabilities and stockholder’s equity | $ (328) | $ (513) | $ (300) | $ (477) | $ (497) | $ (378) | $ (462) | $ (386) |
Nature of Operations, Basis o_6
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Summary of Restated Consolidated Statements of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||||||||||||||
Insurance premiums | $ 1,503 | $ 1,496 | $ 1,436 | $ 1,406 | $ 1,360 | $ 1,341 | $ 1,334 | $ 1,324 | $ 5,841 | $ 5,359 | $ 5,122 | ||||
Fee income | 1,397 | 1,438 | 1,446 | 1,502 | 1,567 | 1,931 | 1,603 | 1,529 | 5,783 | 6,630 | 6,120 | ||||
Net investment income | 1,343 | 1,241 | 1,338 | 1,352 | 1,374 | 1,510 | 1,509 | 1,446 | 5,274 | 5,839 | 5,264 | ||||
Realized gain (loss) | (124) | 11 | 70 | 257 | 700 | (32) | (169) | 212 | $ 327 | $ 43 | $ 338 | $ 11 | 214 | 711 | (526) |
Amortization of deferred gain (loss) on business sold through reinsurance | 8 | 9 | 10 | 10 | 10 | 8 | 7 | 7 | 20 | 14 | 29 | 22 | 37 | 32 | 33 |
Other revenues | 172 | 162 | 133 | 154 | 176 | 149 | 162 | 170 | 621 | 657 | 553 | ||||
Total revenues | 4,299 | 4,357 | 4,433 | 4,681 | 5,187 | 4,907 | 4,446 | 4,688 | 17,770 | 19,228 | 16,566 | ||||
Expenses | |||||||||||||||
Interest credited | 740 | 717 | 701 | 691 | 691 | 742 | 740 | 738 | 2,849 | 2,911 | 2,899 | ||||
Benefits | 2,053 | 4,498 | 2,051 | 2,199 | 2,169 | 1,839 | 1,848 | 2,183 | 10,801 | 8,039 | 8,050 | ||||
Commissions and other expenses | 1,326 | 1,205 | 1,077 | 1,191 | 1,276 | 1,841 | 1,260 | 1,171 | 4,799 | 5,548 | 4,889 | ||||
Interest and debt expense | 41 | 36 | 31 | 29 | 28 | 29 | 28 | 29 | 137 | 114 | 125 | ||||
Spark program expense | 48 | 44 | 44 | 31 | 31 | 22 | 21 | 13 | 167 | 87 | 68 | ||||
Impairment of intangibles | 634 | 634 | 634 | ||||||||||||
Total expenses | 4,208 | 7,134 | 3,904 | 4,141 | 4,195 | 4,473 | 3,897 | 4,134 | 19,387 | 16,699 | 16,031 | ||||
Income (loss) before taxes | 91 | (2,777) | 529 | 540 | 992 | 434 | 549 | 554 | (1,617) | 2,529 | 535 | ||||
Federal income tax expense (benefit) | (14) | (488) | 86 | 82 | 176 | 65 | 83 | 97 | (332) | 420 | (56) | ||||
Net income (loss) | 105 | (2,289) | 443 | 458 | 816 | 369 | 466 | 457 | 900 | 923 | (1,389) | 1,292 | (1,285) | 2,109 | 591 |
Other comprehensive income (loss), net of tax: | |||||||||||||||
Unrealized investment gains (losses) | (13,613) | (2,480) | 3,177 | ||||||||||||
Funded status of employee benefit plans | (4) | 3 | 8 | ||||||||||||
Other comprehensive income (loss), net of tax | 960 | (4,140) | (5,446) | (4,991) | (400) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | 3,185 | ||||
Comprehensive income (loss) | 1,065 | (6,429) | (5,003) | (4,533) | 416 | (248) | 2,187 | (2,724) | (14,902) | (368) | $ 3,776 | ||||
As Previously Reported [Member] | |||||||||||||||
Revenues | |||||||||||||||
Insurance premiums | 1,503 | 1,496 | 1,436 | 1,406 | 1,360 | 1,341 | 1,328 | 1,330 | 5,841 | 5,359 | |||||
Fee income | 1,397 | 1,438 | 1,446 | 1,502 | 1,561 | 1,927 | 1,600 | 1,524 | 5,783 | 6,612 | |||||
Net investment income | 1,336 | 1,272 | 1,309 | 1,353 | 1,376 | 1,511 | 1,510 | 1,447 | 5,270 | 5,844 | |||||
Realized gain (loss) | (152) | 5 | 82 | 266 | 74 | (24) | (172) | 211 | 347 | 39 | 353 | 16 | 201 | 89 | |
Amortization of deferred gain (loss) on business sold through reinsurance | 16 | 17 | 18 | 18 | 18 | 8 | 7 | 7 | 35 | 14 | 52 | 22 | 69 | 40 | |
Other revenues | 172 | 135 | 163 | 151 | 176 | 149 | 162 | 170 | 621 | 657 | |||||
Total revenues | 4,272 | 4,363 | 4,454 | 4,696 | 4,565 | 4,912 | 4,435 | 4,689 | 17,785 | 18,601 | |||||
Expenses | |||||||||||||||
Interest credited | 740 | 717 | 701 | 691 | 686 | 744 | 732 | 731 | 2,849 | 2,893 | |||||
Benefits | 2,053 | 4,498 | 2,051 | 2,199 | 2,169 | 1,840 | 1,848 | 2,182 | 10,801 | 8,039 | |||||
Commissions and other expenses | 1,318 | 1,208 | 1,081 | 1,192 | 1,274 | 1,839 | 1,262 | 1,171 | 4,799 | 5,546 | |||||
Interest and debt expense | 41 | 36 | 31 | 29 | 28 | 29 | 28 | 29 | 137 | 114 | |||||
Spark program expense | 48 | 44 | 44 | 31 | 31 | 22 | 21 | 13 | 167 | 87 | |||||
Impairment of intangibles | 634 | 634 | 634 | ||||||||||||
Total expenses | 4,200 | 7,137 | 3,908 | 4,142 | 4,188 | 4,474 | 3,891 | 4,126 | 19,387 | 16,679 | |||||
Income (loss) before taxes | 72 | (2,774) | 546 | 554 | 377 | 438 | 544 | 563 | (1,602) | 1,922 | |||||
Federal income tax expense (benefit) | (17) | (487) | 90 | 85 | 46 | 66 | 82 | 99 | (329) | 293 | |||||
Net income (loss) | 89 | (2,287) | 456 | 469 | 331 | 372 | 462 | 464 | 925 | 926 | (1,362) | 1,298 | (1,273) | 1,629 | |
Other comprehensive income (loss), net of tax: | |||||||||||||||
Unrealized investment gains (losses) | (13,613) | (2,480) | |||||||||||||
Funded status of employee benefit plans | (4) | 3 | |||||||||||||
Other comprehensive income (loss), net of tax | 960 | (4,134) | (5,450) | (4,993) | (400) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | |||||
Comprehensive income (loss) | 1,049 | (6,421) | (4,994) | (4,524) | (69) | (245) | 2,183 | (2,717) | (14,890) | (848) | |||||
Restatement Impacts [Member] | |||||||||||||||
Revenues | |||||||||||||||
Insurance premiums | 6 | (6) | |||||||||||||
Fee income | 6 | 4 | 3 | 5 | 18 | ||||||||||
Net investment income | 7 | (31) | 29 | (1) | (2) | (1) | (1) | (1) | 4 | (5) | |||||
Realized gain (loss) | 28 | 6 | (12) | (9) | 626 | (8) | 3 | 1 | (20) | 4 | (15) | (5) | 13 | 622 | |
Amortization of deferred gain (loss) on business sold through reinsurance | (8) | (8) | (8) | (8) | (8) | (15) | (23) | (32) | (8) | ||||||
Other revenues | 27 | (30) | 3 | ||||||||||||
Total revenues | 27 | (6) | (21) | (15) | 622 | (5) | 11 | (1) | (15) | 627 | |||||
Expenses | |||||||||||||||
Interest credited | 5 | (2) | 8 | 7 | 18 | ||||||||||
Benefits | (1) | 1 | |||||||||||||
Commissions and other expenses | 8 | (3) | (4) | (1) | 2 | 2 | (2) | 2 | |||||||
Total expenses | 8 | (3) | (4) | (1) | 7 | (1) | 6 | 8 | 20 | ||||||
Income (loss) before taxes | 19 | (3) | (17) | (14) | 615 | (4) | 5 | (9) | (15) | 607 | |||||
Federal income tax expense (benefit) | 3 | (1) | (4) | (3) | 130 | (1) | 1 | (2) | (3) | 127 | |||||
Net income (loss) | 16 | (2) | (13) | (11) | 485 | (3) | 4 | (7) | $ (25) | $ (3) | $ (27) | $ (6) | (12) | 480 | |
Other comprehensive income (loss), net of tax: | |||||||||||||||
Other comprehensive income (loss), net of tax | (6) | 4 | 2 | ||||||||||||
Comprehensive income (loss) | $ 16 | $ (8) | $ (9) | $ (9) | $ 485 | $ (3) | $ 4 | $ (7) | $ (12) | $ 480 |
Nature of Operations, Basis o_7
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Summary of Restated Consolidated Statments of Stockholder's Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 6,479 | $ 13,089 | $ 18,300 | $ 22,860 | $ 23,548 | $ 24,086 | $ 22,203 | $ 25,041 | $ 22,860 | $ 25,041 | $ 22,860 | $ 25,041 | $ 22,860 | $ 25,041 | |
Net income (loss) | 105 | (2,289) | 443 | 458 | 816 | 369 | 466 | 457 | 900 | 923 | (1,389) | 1,292 | (1,285) | 2,109 | $ 591 |
Other comprehensive income (loss), net of tax | 960 | (4,140) | (5,446) | (4,991) | (400) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | 3,185 | ||||
Balance | 8,266 | 6,479 | 13,089 | 18,300 | 22,860 | 23,548 | 24,086 | 22,203 | 13,089 | 24,086 | 6,479 | 23,548 | 8,266 | 22,860 | 25,041 |
Common Stock [Member] | |||||||||||||||
Balance | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | 11,853 | 11,950 | 11,853 | 11,950 | 11,853 | 11,950 | 11,853 | 11,312 |
Capital contribution from Lincoln National Corporation | 80 | 65 | 65 | 925 | 65 | 510 | |||||||||
Stock compensation/issued for benefit plans | 14 | 7 | (2) | 10 | 11 | 1 | 28 | 32 | 31 | ||||||
Balance | 12,903 | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | 12,020 | 11,930 | 12,114 | 11,940 | 12,903 | 11,950 | 11,853 |
Retained Earnings [Member] | |||||||||||||||
Balance | 2,398 | 4,962 | 4,799 | 4,366 | 4,664 | 4,595 | 4,444 | 4,167 | 4,366 | 4,167 | 4,366 | 4,167 | 4,366 | 4,167 | 4,437 |
Net income (loss) | (2,289) | 443 | 458 | 369 | 466 | 457 | (1,285) | 2,109 | 591 | ||||||
Dividends paid to Lincoln National Corporation | (275) | (280) | (25) | (300) | (315) | (180) | (645) | (1,910) | (660) | ||||||
Balance | 2,436 | 2,398 | 4,962 | 4,799 | 4,366 | 4,664 | 4,595 | 4,444 | 4,962 | 4,595 | 2,398 | 4,664 | 2,436 | 4,366 | 4,167 |
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||||||||||
Balance | (201) | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||||||
Balance | (8,033) | (3,893) | 1,553 | 6,544 | 6,944 | 7,561 | 5,840 | 9,021 | 6,544 | 9,021 | 6,544 | 9,021 | 6,544 | 9,021 | 5,836 |
Other comprehensive income (loss), net of tax | (4,140) | (5,446) | (4,991) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | 3,185 | ||||||
Balance | (7,073) | (8,033) | (3,893) | 1,553 | 6,544 | 6,944 | 7,561 | 5,840 | (3,893) | 7,561 | (8,033) | 6,944 | (7,073) | 6,544 | 9,021 |
As Previously Reported [Member] | |||||||||||||||
Balance | 6,025 | 12,627 | 17,829 | 22,380 | 23,554 | 24,089 | 22,210 | 22,380 | 22,380 | 22,380 | |||||
Net income (loss) | 89 | (2,287) | 456 | 469 | 331 | 372 | 462 | 464 | 925 | 926 | (1,362) | 1,298 | (1,273) | 1,629 | |
Other comprehensive income (loss), net of tax | 960 | (4,134) | (5,450) | (4,993) | (400) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | |||||
Balance | 7,798 | 6,025 | 12,627 | 17,829 | 22,380 | 23,554 | 24,089 | 22,210 | 12,627 | 24,089 | 6,025 | 23,554 | 7,798 | 22,380 | |
As Previously Reported [Member] | Common Stock [Member] | |||||||||||||||
Balance | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | 11,853 | 11,950 | 11,853 | 11,950 | 11,853 | 11,950 | 11,853 | |
Capital contribution from Lincoln National Corporation | 80 | 65 | 65 | 925 | 65 | ||||||||||
Stock compensation/issued for benefit plans | 14 | 7 | (2) | 10 | 11 | 1 | 28 | 32 | |||||||
Balance | 12,903 | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | 12,020 | 11,930 | 12,114 | 11,940 | 12,903 | 11,950 | 11,853 |
As Previously Reported [Member] | Retained Earnings [Member] | |||||||||||||||
Balance | 1,944 | 4,506 | 4,330 | 3,886 | 4,670 | 4,598 | 4,451 | 4,167 | 3,886 | 4,167 | 3,886 | 4,167 | 3,886 | 4,167 | |
Net income (loss) | (2,287) | 456 | 469 | 372 | 462 | 464 | (1,273) | 1,629 | |||||||
Dividends paid to Lincoln National Corporation | (275) | (280) | (25) | (300) | (315) | (180) | (645) | (1,910) | |||||||
Balance | 1,968 | 1,944 | 4,506 | 4,330 | 3,886 | 4,670 | 4,598 | 4,451 | 4,506 | 4,598 | 1,944 | 4,670 | 1,968 | 3,886 | 4,167 |
As Previously Reported [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||||||
Balance | (8,033) | (3,899) | 1,551 | 6,544 | 6,944 | 7,561 | 5,840 | 9,021 | 6,544 | 9,021 | 6,544 | 9,021 | 6,544 | 9,021 | |
Other comprehensive income (loss), net of tax | (4,134) | (5,450) | (4,993) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | |||||||
Balance | (7,073) | (8,033) | (3,899) | 1,551 | 6,544 | 6,944 | 7,561 | 5,840 | (3,899) | 7,561 | (8,033) | 6,944 | (7,073) | 6,544 | $ 9,021 |
Restatement Impacts [Member] | |||||||||||||||
Balance | 454 | 462 | 471 | 480 | (6) | (3) | (7) | 480 | 480 | 480 | |||||
Net income (loss) | 16 | (2) | (13) | (11) | 485 | (3) | 4 | (7) | (25) | (3) | (27) | (6) | (12) | 480 | |
Other comprehensive income (loss), net of tax | (6) | 4 | 2 | ||||||||||||
Balance | 468 | 454 | 462 | 471 | 480 | (6) | (3) | (7) | 462 | (3) | 454 | (6) | 468 | 480 | |
Restatement Impacts [Member] | Retained Earnings [Member] | |||||||||||||||
Balance | 454 | 456 | 469 | 480 | (6) | (3) | (7) | 480 | 480 | 480 | |||||
Net income (loss) | (2) | (13) | (11) | (3) | 4 | (7) | (12) | 480 | |||||||
Balance | $ 468 | 454 | 456 | 469 | $ 480 | $ (6) | $ (3) | $ (7) | 456 | $ (3) | $ 454 | $ (6) | $ 468 | $ 480 | |
Restatement Impacts [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||||||
Balance | 6 | 2 | |||||||||||||
Other comprehensive income (loss), net of tax | $ (6) | 4 | 2 | ||||||||||||
Balance | $ 6 | $ 2 | $ 6 |
Nature of Operations, Basis o_8
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Summary of Restated Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | $ 105 | $ (2,289) | $ 443 | $ 458 | $ 816 | $ 369 | $ 466 | $ 457 | $ 900 | $ 923 | $ (1,389) | $ 1,292 | $ (1,285) | $ 2,109 | $ 591 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
Realized (gain) loss | 124 | (11) | (70) | (257) | (700) | 32 | 169 | (212) | (327) | (43) | (338) | (11) | (214) | (711) | 526 |
Sales and maturities (purchases) of trading securities, net | (189) | 118 | 109 | 230 | 164 | 239 | 301 | (87) | 253 | ||||||
Amortization of deferred gain (loss) on business sold through reinsurance | (8) | (9) | (10) | (10) | (10) | (8) | (7) | (7) | (20) | (14) | (29) | (22) | (37) | (32) | (33) |
Impairment of intangibles | 634 | 634 | 634 | ||||||||||||
Change in: | |||||||||||||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | 24 | 50 | (10) | 106 | 3 | 325 | 45 | 289 | 68 | ||||||
Premiums and fees receivable | (91) | (163) | (71) | (98) | (2) | (99) | (53) | (95) | (20) | ||||||
Accrued investment income | (44) | (51) | (40) | (11) | (77) | (44) | (41) | 8 | (88) | ||||||
Insurance liabilities and reinsurance-related balances | 299 | (263) | 81 | 5 | 2,311 | (301) | 1,055 | (584) | 392 | ||||||
Accrued expenses | (229) | (35) | (340) | 35 | (375) | 200 | (98) | 370 | (21) | ||||||
Federal income tax accruals | 82 | 97 | 192 | 167 | (308) | 233 | (271) | 391 | (134) | ||||||
Cash management agreement | 872 | (182) | 2,427 | (1,223) | 2,803 | (1,367) | 3,730 | (1,286) | (1,341) | ||||||
Other | (3) | (203) | 224 | (219) | 478 | (226) | 527 | (163) | 92 | ||||||
Net cash provided by (used in) operating activities | 912 | (394) | 3,125 | (142) | 3,875 | 219 | 4,293 | 209 | 285 | ||||||
Cash Flows from Investing Activities | |||||||||||||||
Purchases of available-for-sale securities and equity securities | (3,910) | (3,803) | (8,090) | (8,212) | (11,961) | (11,776) | (14,768) | (16,856) | (16,149) | ||||||
Sales of available-for-sale securities and equity securities | 105 | 592 | 236 | 1,277 | 1,231 | 1,441 | 2,347 | 2,341 | 1,214 | ||||||
Maturities of available-for-sale securities | 1,566 | 1,862 | 3,165 | 4,570 | 4,339 | 6,897 | 5,487 | 9,417 | 5,180 | ||||||
Purchases of other investments | (631) | (754) | (395) | ||||||||||||
Sales or maturities of other investments | 441 | 377 | 171 | ||||||||||||
Purchases of alternative investments | (141) | (163) | (300) | (360) | (453) | (504) | |||||||||
Sales and repayments of alternative investments | 130 | 54 | 181 | 128 | 380 | 258 | |||||||||
Issuance of mortgage loans on real estate | (539) | (868) | (1,366) | (1,609) | (1,924) | (2,188) | (2,507) | (3,057) | (1,790) | ||||||
Repayment and maturities of mortgage loans on real estate | 716 | 398 | 1,422 | 846 | 1,866 | 1,267 | 2,247 | 1,873 | 1,133 | ||||||
Repayment (issuance) of policy loans, net | 25 | (76) | (6) | 16 | 16 | 47 | 4 | 61 | 49 | ||||||
Net change in collateral on investments, derivatives and related settlements | (242) | 987 | (2,322) | 1,704 | (3,667) | 2,132 | (4,653) | 3,095 | 1,775 | ||||||
Other | (76) | (30) | (93) | (67) | (83) | (181) | (40) | (253) | (149) | ||||||
Net cash provided by (used in) investing activities | (2,366) | (1,047) | (7,173) | (1,707) | (10,256) | (2,607) | (12,073) | (3,756) | (8,961) | ||||||
Cash Flows from Financing Activities | |||||||||||||||
Capital contribution from Lincoln National Corporation | 65 | 65 | 65 | 145 | 65 | 925 | 65 | 510 | |||||||
Payment of long-term debt, including current maturities | (60) | (40) | (60) | (40) | (60) | (40) | (60) | (30) | |||||||
Issuance of long-term debt, net of issuance costs | 30 | ||||||||||||||
Issuance (payment) of short-term debt | (347) | 71 | (385) | (40) | (313) | (14) | (522) | 587 | (112) | ||||||
Payment related to sale-leaseback transactions | (4) | (47) | (52) | (70) | (59) | (47) | |||||||||
Proceeds from certain financing arrangements | 53 | 50 | 53 | 50 | 186 | 159 | 109 | ||||||||
Deposits of fixed account values, including the fixed portion of variable | 3,041 | 3,136 | 6,892 | 6,370 | 11,049 | 9,138 | 15,212 | 12,626 | 14,009 | ||||||
Withdrawals of fixed account values, including the fixed portion of variable | (1,873) | (1,764) | (3,334) | (3,260) | (4,970) | (4,935) | (6,880) | (6,522) | (6,069) | ||||||
Transfers from (to) separate accounts, net | 70 | (130) | 116 | (255) | 71 | (254) | (195) | (397) | 528 | ||||||
Common stock issued for benefit plans | (17) | (10) | (21) | (11) | (21) | (12) | (21) | (13) | (9) | ||||||
Dividends paid to Lincoln National Corporation | (25) | (180) | (305) | (495) | (580) | (795) | (645) | (1,910) | (660) | ||||||
Other | (63) | (63) | (1) | (63) | (2) | (60) | |||||||||
Net cash provided by (used in) financing activities | 845 | 1,065 | 2,994 | 2,301 | 5,341 | 3,120 | 7,948 | 4,416 | 8,259 | ||||||
Net increase (decrease) in cash, invested cash and restricted cash | (609) | (376) | (1,054) | 452 | (1,040) | 732 | 168 | 869 | (417) | ||||||
Cash, invested cash and restricted cash as of beginning-of-year | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | 1,462 | 2,331 | 1,462 | 2,331 | 1,462 | 2,331 | 1,462 | 1,879 |
Cash, invested cash and restricted cash as of end-of-period | 2,499 | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | 1,277 | 1,914 | 1,291 | 2,194 | 2,499 | 2,331 | 1,462 |
As Previously Reported [Member] | |||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | 89 | (2,287) | 456 | 469 | 331 | 372 | 462 | 464 | 925 | 926 | (1,362) | 1,298 | (1,273) | 1,629 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
Realized (gain) loss | 152 | (5) | (82) | (266) | (74) | 24 | 172 | (211) | (347) | (39) | (353) | (16) | (201) | (89) | |
Sales and maturities (purchases) of trading securities, net | (189) | 98 | 109 | 210 | 164 | 219 | 301 | (108) | |||||||
Amortization of deferred gain (loss) on business sold through reinsurance | (16) | (17) | (18) | (18) | (18) | (8) | (7) | (7) | (35) | (14) | (52) | (22) | (69) | (40) | |
Impairment of intangibles | 634 | 634 | 634 | ||||||||||||
Change in: | |||||||||||||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | 24 | 50 | (8) | 109 | 9 | 325 | 42 | 292 | |||||||
Premiums and fees receivable | (91) | (169) | (71) | (98) | (2) | (99) | (53) | (95) | |||||||
Accrued investment income | (44) | (51) | (40) | (11) | (77) | (44) | (41) | 8 | |||||||
Insurance liabilities and reinsurance-related balances | 303 | (265) | 54 | (3) | 2,311 | (300) | 1,055 | (585) | |||||||
Accrued expenses | (229) | (35) | (340) | 35 | (375) | 200 | (98) | 367 | |||||||
Federal income tax accruals | 85 | 99 | 198 | 167 | (301) | 234 | (268) | 264 | |||||||
Cash management agreement | 872 | (182) | 2,427 | (1,223) | 2,803 | (1,367) | 3,730 | (1,286) | |||||||
Other | (204) | 258 | (219) | 480 | (226) | 531 | (165) | ||||||||
Net cash provided by (used in) operating activities | 916 | (413) | 3,130 | (160) | 3,879 | 202 | 4,290 | 192 | |||||||
Cash Flows from Investing Activities | |||||||||||||||
Purchases of available-for-sale securities and equity securities | (3,910) | (3,783) | (8,091) | (8,192) | (11,961) | (11,756) | (14,768) | (16,834) | |||||||
Sales of available-for-sale securities and equity securities | 105 | 592 | 236 | 1,277 | 1,231 | 1,441 | 2,347 | 2,341 | |||||||
Maturities of available-for-sale securities | 1,566 | 1,862 | 3,165 | 4,570 | 4,339 | 6,897 | 5,487 | 9,417 | |||||||
Purchases of other investments | (631) | (754) | |||||||||||||
Sales or maturities of other investments | 441 | 377 | |||||||||||||
Purchases of alternative investments | (141) | (163) | (300) | (360) | (453) | (504) | |||||||||
Sales and repayments of alternative investments | 130 | 54 | 181 | 128 | 380 | 258 | |||||||||
Issuance of mortgage loans on real estate | (540) | (869) | (1,368) | (1,611) | (1,928) | (2,191) | (2,503) | (3,062) | |||||||
Repayment and maturities of mortgage loans on real estate | 716 | 398 | 1,422 | 846 | 1,866 | 1,267 | 2,247 | 1,873 | |||||||
Repayment (issuance) of policy loans, net | 25 | (76) | (6) | 16 | 16 | 47 | 4 | 61 | |||||||
Net change in collateral on investments, derivatives and related settlements | (242) | 987 | (2,321) | 1,704 | (3,667) | 2,132 | (4,654) | 3,095 | |||||||
Other | (79) | (30) | (96) | (67) | (83) | (181) | (40) | (253) | |||||||
Net cash provided by (used in) investing activities | (2,370) | (1,028) | (7,178) | (1,689) | (10,260) | (2,590) | (12,070) | (3,739) | |||||||
Cash Flows from Financing Activities | |||||||||||||||
Capital contribution from Lincoln National Corporation | 65 | 65 | 65 | 145 | 65 | 925 | 65 | ||||||||
Payment of long-term debt, including current maturities | (60) | (40) | (60) | (40) | (60) | (40) | (60) | ||||||||
Issuance (payment) of short-term debt | (347) | 71 | (385) | (40) | (313) | (14) | (522) | 587 | |||||||
Payment related to sale-leaseback transactions | (4) | (47) | (52) | (70) | (59) | ||||||||||
Proceeds from certain financing arrangements | 53 | 50 | 53 | 50 | 186 | 159 | |||||||||
Deposits of fixed account values, including the fixed portion of variable | 3,043 | 3,132 | 6,892 | 6,367 | 11,054 | 9,136 | 15,212 | 12,622 | |||||||
Withdrawals of fixed account values, including the fixed portion of variable | (1,819) | (1,768) | (3,280) | (3,283) | (4,916) | (4,935) | (6,880) | (6,575) | |||||||
Transfers from (to) separate accounts, net | 14 | (122) | 62 | (229) | 12 | (252) | (195) | (340) | |||||||
Common stock issued for benefit plans | (17) | (10) | (21) | (11) | (21) | (12) | (21) | (13) | |||||||
Dividends paid to Lincoln National Corporation | (25) | (180) | (305) | (495) | (580) | (795) | (645) | (1,910) | |||||||
Other | (63) | (63) | (1) | (63) | (2) | (60) | |||||||||
Net cash provided by (used in) financing activities | 845 | 1,065 | 2,994 | 2,301 | 5,341 | 3,120 | 7,948 | 4,416 | |||||||
Net increase (decrease) in cash, invested cash and restricted cash | (609) | (376) | (1,054) | 452 | (1,040) | 732 | 168 | 869 | |||||||
Cash, invested cash and restricted cash as of beginning-of-year | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | 1,462 | 2,331 | 1,462 | 2,331 | 1,462 | 2,331 | 1,462 | |
Cash, invested cash and restricted cash as of end-of-period | 2,499 | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | 1,277 | 1,914 | 1,291 | 2,194 | 2,499 | 2,331 | $ 1,462 |
Restatement Impacts [Member] | |||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | 16 | (2) | (13) | (11) | 485 | (3) | 4 | (7) | (25) | (3) | (27) | (6) | (12) | 480 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
Realized (gain) loss | (28) | (6) | 12 | 9 | (626) | $ 8 | $ (3) | (1) | 20 | (4) | 15 | 5 | (13) | (622) | |
Sales and maturities (purchases) of trading securities, net | 20 | 20 | 20 | 21 | |||||||||||
Amortization of deferred gain (loss) on business sold through reinsurance | $ 8 | $ 8 | $ 8 | 8 | $ 8 | 15 | 23 | 32 | 8 | ||||||
Change in: | |||||||||||||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | (2) | (3) | (6) | 3 | (3) | ||||||||||
Premiums and fees receivable | 6 | ||||||||||||||
Insurance liabilities and reinsurance-related balances | (4) | 2 | 27 | 8 | (1) | 1 | |||||||||
Accrued expenses | 3 | ||||||||||||||
Federal income tax accruals | (3) | (2) | (6) | (7) | (1) | (3) | 127 | ||||||||
Other | (3) | 1 | (34) | (2) | (4) | 2 | |||||||||
Net cash provided by (used in) operating activities | (4) | 19 | (5) | 18 | (4) | 17 | 3 | 17 | |||||||
Cash Flows from Investing Activities | |||||||||||||||
Purchases of available-for-sale securities and equity securities | (20) | 1 | (20) | (20) | (22) | ||||||||||
Issuance of mortgage loans on real estate | 1 | 1 | 2 | 2 | 4 | 3 | (4) | 5 | |||||||
Net change in collateral on investments, derivatives and related settlements | (1) | 1 | |||||||||||||
Other | 3 | 3 | |||||||||||||
Net cash provided by (used in) investing activities | 4 | (19) | 5 | (18) | 4 | (17) | $ (3) | (17) | |||||||
Cash Flows from Financing Activities | |||||||||||||||
Deposits of fixed account values, including the fixed portion of variable | (2) | 4 | 3 | (5) | 2 | 4 | |||||||||
Withdrawals of fixed account values, including the fixed portion of variable | (54) | 4 | (54) | 23 | (54) | 53 | |||||||||
Transfers from (to) separate accounts, net | $ 56 | $ (8) | $ 54 | $ (26) | $ 59 | $ (2) | $ (57) |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Retained earnings | $ 2,436 | $ 2,398 | $ 4,962 | $ 4,799 | $ 4,366 | $ 4,664 | $ 4,595 | $ 4,444 | |
Accumulated other comprehensive income (loss) | (7,073) | (8,033) | (3,893) | 1,553 | 6,544 | 6,944 | 7,561 | 5,840 | |
Stockholders equity | $ 8,266 | $ 6,479 | $ 13,089 | $ 18,300 | $ 22,860 | $ 23,548 | $ 24,086 | $ 22,203 | $ 25,041 |
Accounting Standards Update 2018-12 [Member] | Maximum [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Retained earnings | 2,100 | ||||||||
Accumulated other comprehensive income (loss) | 5,100 | ||||||||
Stockholders equity | 3,200 | ||||||||
Accounting Standards Update 2018-12 [Member] | Minimum [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Retained earnings | 1,600 | ||||||||
Accumulated other comprehensive income (loss) | 4,600 | ||||||||
Stockholders equity | $ 2,700 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Variable Interest Entity [Line Items] | ||||||||
Long-Term Senior Note Issued In Exchange For Corporate Bond Afs Security | $ 275 | |||||||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | 3,577 | $ 3,620 | $ 3,782 | $ 3,521 | $ 3,445 | $ 3,302 | $ 3,221 | $ 3,023 |
Surplus notes | 0 | |||||||
Maximum exposure to loss related to unconsolidated VIE's | 0 | |||||||
Limited Partnerships and Limited Liability Companies [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | $ 3,000 | $ 2,800 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2022 USD ($) loan item security | Dec. 31, 2021 USD ($) item loan security | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) loan item security | |
Schedule of Investments [Line Items] | ||||
Decrease in gross AFS securities unrealized gains (losses) | $ (12,100) | |||
Unrealized gain (loss), trading securities | $ (628) | $ (47) | $ 117 | |
Number of partnerships in alternative investment portfolio | security | 328 | 305 | 328 | |
Alternative investments as a percentage of overall invested assets | 2% | |||
Fair value of collateral received that we are permitted to sell or re-pledge | $ 25 | $ 25 | ||
Investment commitments | 2,300 | 2,300 | ||
Investment commitments for limited partnerships | 1,800 | 1,800 | ||
Investment commitments for private placements | 298 | 298 | ||
Investment commitments for mortgage loans on real estate | $ 226 | $ 226 | ||
Minimum [Member] | ||||
Schedule of Investments [Line Items] | ||||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 80% | 80% | ||
Maximum [Member] | ||||
Schedule of Investments [Line Items] | ||||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 95% | 95% | ||
Commercial [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of impaired loans | item | 2 | 4 | 2 | |
Impaired financing receivable, principal balance | $ 1 | $ 1 | $ 1 | |
Residential [Member] | ||||
Schedule of Investments [Line Items] | ||||
Financing Receivable, Number of Loans In Foreclosure | 49 | 34 | 49 | |
Number of impaired loans | loan | 37 | 50 | 37 | |
Impaired financing receivable, principal balance | $ 16 | $ 22 | $ 16 | |
Mortgage Loans in Process of Foreclosure, Amount | 21 | 15 | 21 | |
Financial Service [Member] | Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Fair value | $ 19,200 | $ 21,700 | $ 19,200 | |
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Commercial [Member] | California [Member] | ||||
Schedule of Investments [Line Items] | ||||
Concentration risk, percentage | 28% | 26% | ||
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Commercial [Member] | Texas [Member] | ||||
Schedule of Investments [Line Items] | ||||
Concentration risk, percentage | 9% | |||
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Residential [Member] | California [Member] | ||||
Schedule of Investments [Line Items] | ||||
Concentration risk, percentage | 22% | 14% | ||
Mortgage Loans On Real Estate [Member] | Geographic Concentration [Member] | Residential [Member] | NEW JERSEY | ||||
Schedule of Investments [Line Items] | ||||
Concentration risk, percentage | 17% | 12% | ||
Corporate Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Percentage of fair value rated as investment grade | 96% | 96% | 96% | |
Amortized cost of portfolio rated below investment grade | $ 3,500 | $ 3,500 | ||
Fair value of portfolio rated below investment grade | $ 3,300 | $ 3,700 | $ 3,300 | |
Mortgage Loans On Real Estate [Member] | Residential [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of loans past due | loan | 73 | 65 | 73 | |
Fixed Maturity AFS Securities [Member] | Federal Home Loan Mortgage Corporation [Member] | Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Fair value | $ 995 | $ 910 | $ 995 | |
Concentration risk, percentage | 1% | |||
Fixed Maturity AFS Securities [Member] | Financial Service [Member] | Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Concentration risk, percentage | 15% | 14% | ||
Securities [Member] | Federal Home Loan Mortgage Corporation [Member] | Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Fair value | $ 702 | 702 | ||
Concentration risk, percentage | 1% | |||
Securities [Member] | White Chapel LLC [Member] | Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Fair value | $ 1 | 1 | ||
Concentration risk, percentage | 1% | |||
Securities [Member] | Consumer Non-Cyclical Industry [Member] | Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Fair value | $ 14,300 | $ 18,600 | $ 14,300 | |
Concentration risk, percentage | 11% | 12% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||||||||
Amortized Cost | $ 110,944 | $ 110,323 | $ 108,963 | $ 106,939 | $ 104,491 | $ 106,752 | $ 105,530 | $ 104,684 | |
Gross Unrealized Gains | 1,041 | 13,431 | |||||||
Gross Unrealized Losses | 12,499 | 427 | |||||||
Allowance for Credit Losses | 21 | 18 | 12 | 20 | 19 | 17 | 9 | 14 | $ 13 |
Fair Value | 99,465 | $ 97,391 | $ 102,954 | $ 109,889 | 117,476 | $ 120,794 | $ 120,452 | $ 115,695 | |
Corporate Bonds [Member] | |||||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||||||||
Amortized Cost | 88,950 | 86,197 | |||||||
Gross Unrealized Gains | 763 | 11,569 | |||||||
Gross Unrealized Losses | 10,538 | 326 | |||||||
Allowance for Credit Losses | 9 | 17 | 12 | ||||||
Fair Value | 79,166 | 97,423 | |||||||
ABS [Member] | |||||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||||||||
Amortized Cost | 11,791 | 8,433 | |||||||
Gross Unrealized Gains | 37 | 127 | |||||||
Gross Unrealized Losses | 925 | 54 | |||||||
Allowance for Credit Losses | 4 | ||||||||
Fair Value | 10,899 | 8,506 | |||||||
U.S. Government Bonds [Member] | |||||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||||||||
Amortized Cost | 377 | 348 | |||||||
Gross Unrealized Gains | 5 | 54 | |||||||
Gross Unrealized Losses | 31 | 2 | |||||||
Fair Value | 351 | 400 | |||||||
Foreign Government Bonds [Member] | |||||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||||||||
Amortized Cost | 339 | 365 | |||||||
Gross Unrealized Gains | 17 | 63 | |||||||
Gross Unrealized Losses | 45 | 5 | |||||||
Fair Value | 311 | 423 | |||||||
RMBS [Member] | |||||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||||||||
Amortized Cost | 2,025 | 2,132 | |||||||
Gross Unrealized Gains | 21 | 178 | |||||||
Gross Unrealized Losses | 203 | 4 | |||||||
Allowance for Credit Losses | 7 | 1 | $ 1 | ||||||
Fair Value | 1,836 | 2,305 | |||||||
CMBS [Member] | |||||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||||||||
Amortized Cost | 1,908 | 1,542 | |||||||
Gross Unrealized Gains | 3 | 62 | |||||||
Gross Unrealized Losses | 244 | 14 | |||||||
Fair Value | 1,667 | 1,590 | |||||||
State And Municipal Bonds [Member] | |||||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||||||||
Amortized Cost | 5,198 | 5,113 | |||||||
Gross Unrealized Gains | 170 | 1,275 | |||||||
Gross Unrealized Losses | 483 | 11 | |||||||
Fair Value | 4,885 | 6,377 | |||||||
Hybrid And Redeemable Preferred Securities [Member] | |||||||||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||||||||
Amortized Cost | 356 | 361 | |||||||
Gross Unrealized Gains | 25 | 103 | |||||||
Gross Unrealized Losses | 30 | 11 | |||||||
Allowance for Credit Losses | 1 | 1 | |||||||
Fair Value | $ 350 | $ 452 |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities By Contractual Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||||||||
Amortized Cost | $ 110,944 | $ 110,323 | $ 108,963 | $ 106,939 | $ 104,491 | $ 106,752 | $ 105,530 | $ 104,684 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||||||||
Available-for-sale Securities, Debt Securities, Total | 99,465 | $ 97,391 | $ 102,954 | $ 109,889 | $ 117,476 | $ 120,794 | $ 120,452 | $ 115,695 |
Fixed Maturity AFS Securities Excluding Structured Securities [Member] | ||||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||||||||
Due in one year or less | 3,239 | |||||||
Due after one year through five years | 17,545 | |||||||
Due after five years through ten years | 18,985 | |||||||
Due after ten years | 55,451 | |||||||
Amortized Cost | 95,220 | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value | ||||||||
Due in one year or less | 3,205 | |||||||
Due after one year through five years | 16,716 | |||||||
Due after five years through ten years | 17,177 | |||||||
Due after ten years | 47,965 | |||||||
Available-for-sale Securities, Debt Securities, Total | 85,063 | |||||||
Structured Securities [Member] | ||||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||||||||
Amortized Cost | 15,724 | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value | ||||||||
Available-for-sale Securities, Debt Securities, Total | $ 14,402 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 69,198 | $ 16,570 |
Greater Than Twelve Months | 11,105 | 1,781 |
Fair Value - Total | 80,303 | 18,351 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 10,013 | 308 |
Greater Than Twelve Months | 2,486 | 119 |
Gross Unrealized Losses - Total | 12,499 | 427 |
Unrealized holding gains (losses) arising during the period | 8,106 | 2,577 |
Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Unrealized holding gains (losses) arising during the period | (6) | (8) |
Corporate Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 57,656 | 10,611 |
Greater Than Twelve Months | 6,867 | 1,386 |
Fair Value - Total | 64,523 | 11,997 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 8,684 | 230 |
Greater Than Twelve Months | 1,854 | 96 |
Gross Unrealized Losses - Total | 10,538 | 326 |
U.S. Government Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 236 | 6 |
Greater Than Twelve Months | 27 | 26 |
Fair Value - Total | 263 | 32 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 25 | |
Greater Than Twelve Months | 6 | 2 |
Gross Unrealized Losses - Total | 31 | 2 |
State And Municipal Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 1,850 | 498 |
Greater Than Twelve Months | 227 | 19 |
Fair Value - Total | 2,077 | 517 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 414 | 10 |
Greater Than Twelve Months | 69 | 1 |
Gross Unrealized Losses - Total | 483 | 11 |
Foreign Government Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 122 | 61 |
Greater Than Twelve Months | 58 | 56 |
Fair Value - Total | 180 | 117 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 18 | 3 |
Greater Than Twelve Months | 27 | 2 |
Gross Unrealized Losses - Total | 45 | 5 |
RMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 1,337 | 261 |
Greater Than Twelve Months | 191 | 20 |
Fair Value - Total | 1,528 | 281 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 160 | 3 |
Greater Than Twelve Months | 43 | 1 |
Gross Unrealized Losses - Total | 203 | 4 |
CMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 1,224 | 440 |
Greater Than Twelve Months | 312 | 33 |
Fair Value - Total | 1,536 | 473 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 156 | 12 |
Greater Than Twelve Months | 88 | 2 |
Gross Unrealized Losses - Total | 244 | 14 |
ABS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 6,712 | 4,646 |
Greater Than Twelve Months | 3,325 | 165 |
Fair Value - Total | 10,037 | 4,811 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 551 | 49 |
Greater Than Twelve Months | 374 | 5 |
Gross Unrealized Losses - Total | 925 | 54 |
Hybrid And Redeemable Preferred Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 61 | 47 |
Greater Than Twelve Months | 98 | 76 |
Fair Value - Total | 159 | 123 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 5 | 1 |
Greater Than Twelve Months | 25 | 10 |
Gross Unrealized Losses - Total | $ 30 | $ 11 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Nine months or greater, but less than twelve months | $ 69,198 | $ 16,570 |
Fair Value - Twelve months or greater | 11,105 | 1,781 |
Fair Value - Total | 80,303 | 18,351 |
Gross Unrealized Losses - Nine months or greater, but less than twelve months | 10,013 | 308 |
Gross Unrealized Losses - Twelve months or greater | 2,486 | 119 |
Gross Unrealized Losses - Total | 12,499 | 427 |
Fair Value Decline, Greater Than 20% [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less than six months | 10,895 | 12 |
Fair Value - Six months or greater, but less than nine months | 4,256 | |
Fair Value - Nine months or greater, but less than twelve months | 362 | |
Fair Value - Twelve months or greater | 2 | 58 |
Fair Value - Total | 15,515 | 70 |
Gross Unrealized Losses - Less than six months | 3,514 | 3 |
Gross Unrealized Losses - Six months or greater, but less than nine months | 2,150 | |
Gross Unrealized Losses - Nine months or greater, but less than twelve months | 243 | |
Gross Unrealized Losses - Twelve months or greater | 8 | |
Gross Unrealized Losses - Total | $ 5,907 | $ 11 |
Number of Securities - Less than six months | security | 1,489 | 6 |
Number of Securities - Six months or greater, but less than nine months | security | 640 | |
Number of Securities - Nine months or greater, but less than twelve months | security | 73 | |
Number of Securities - Twelve months or greater | security | 15 | 24 |
Number of Securities - Total | security | 2,217 | 30 |
Investments (Changes In Allowan
Investments (Changes In Allowance For Credit Losses Of AFS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Balance | $ 19 | $ 13 | |
Additions for securities for which credit losses were not previously recognized | 7 | 9 | $ 42 |
Additions (reductions) for securities for which credit losses were previously recognized | 9 | 5 | (2) |
Reductions for securities disposed | (2) | (2) | (15) |
Reductions for securities charged-off | (12) | (6) | (12) |
Balance | 21 | 19 | 13 |
Accrued investment income on fixed maturity AFS securities | 1,100 | 944 | 1,000 |
Corporate Bonds [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Balance | 17 | 12 | |
Additions for securities for which credit losses were not previously recognized | 4 | 8 | 40 |
Additions (reductions) for securities for which credit losses were previously recognized | 2 | 5 | (1) |
Reductions for securities disposed | (2) | (2) | (15) |
Reductions for securities charged-off | (12) | (6) | (12) |
Balance | 9 | 17 | 12 |
RMBS [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Balance | 1 | 1 | |
Additions for securities for which credit losses were not previously recognized | 3 | 1 | |
Additions (reductions) for securities for which credit losses were previously recognized | 3 | ||
Balance | 7 | 1 | 1 |
ABS [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Balance | 4 | ||
Other [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Balance | 1 | ||
Additions for securities for which credit losses were not previously recognized | 1 | 1 | |
Additions (reductions) for securities for which credit losses were previously recognized | 4 | $ (1) | |
Balance | $ 5 | $ 1 |
Investments (Fair Value of Trad
Investments (Fair Value of Trading Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||
Trading securities | $ 3,446 | $ 3,527 | $ 3,760 | $ 4,313 | $ 4,405 | $ 4,114 | $ 4,154 | $ 4,287 |
Fixed Maturity AFS Securities [Member] | ||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||
Trading securities | 3,446 | 4,405 | ||||||
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||
Trading securities | 2,196 | 2,679 | ||||||
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||
Trading securities | 32 | |||||||
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||
Trading securities | 21 | 27 | ||||||
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||
Trading securities | 49 | 73 | ||||||
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||
Trading securities | 99 | 95 | ||||||
CMBS [Member] | Fixed Maturity AFS Securities [Member] | ||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||
Trading securities | 137 | 137 | ||||||
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||
Trading securities | 919 | 1,338 | ||||||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | ||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||||
Trading securities | $ 25 | $ 24 |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | $ 16,923 | |||||||||
Allowance for credit losses | (98) | $ (95) | $ (203) | $ (2) | ||||||
Unamortized premium (discount) | 27 | 16 | ||||||||
Mark-to-market gains (losses) | (27) | (3) | ||||||||
Total carrying value | 18,211 | $ 17,975 | $ 17,830 | $ 17,795 | 17,893 | $ 17,633 | $ 17,487 | $ 17,159 | ||
Financial Asset Not Past Due [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 18,228 | 17,905 | ||||||||
30 to 59 Days Past Due [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 42 | 36 | ||||||||
60 to 89 Days Past Due [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 6 | 5 | ||||||||
90 Or More Days Past Due [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 33 | 29 | ||||||||
Commercial [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 17,072 | |||||||||
Allowance for credit losses | (83) | (78) | (186) | |||||||
Unamortized premium (discount) | (9) | (11) | ||||||||
Mark-to-market gains (losses) | (27) | (3) | ||||||||
Total carrying value | 16,813 | 16,991 | ||||||||
Commercial [Member] | Financial Asset Not Past Due [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 16,913 | 17,068 | ||||||||
Commercial [Member] | 30 to 59 Days Past Due [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 19 | 15 | ||||||||
Residential [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 1,413 | 919 | ||||||||
Allowance for credit losses | (15) | (17) | $ (17) | $ (2) | ||||||
Unamortized premium (discount) | 36 | 27 | ||||||||
Total carrying value | 1,398 | 902 | ||||||||
Residential [Member] | Financial Asset Not Past Due [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 1,315 | 837 | ||||||||
Residential [Member] | 30 to 59 Days Past Due [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 23 | 21 | ||||||||
Residential [Member] | 60 to 89 Days Past Due [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | 6 | 5 | ||||||||
Residential [Member] | 90 Or More Days Past Due [Member] | ||||||||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||||||||
Carrying amount of mortgages | $ 33 | $ 29 |
Investments (Schedule Of Averag
Investments (Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Information about impaired mortgage loans on real estate | |||
Average carrying value for impaired mortgage loans on real estate | $ 16 | $ 32 | $ 21 |
Investments (Amortized Cost Of
Investments (Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Residential [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 34 | $ 30 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators For Commercial Mortgage Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | $ 16,923 | |
Loan-to-value ratio, less than 65% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | 16,419 | |
Loan-to-value ratio, 65% to 75% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | 473 | |
Loan-to-value ratio, 75% to 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | $ 31 | |
Commercial [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | $ 17,072 | |
Commercial [Member] | Loan-to-value ratio, less than 65% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | 16,048 | |
Commercial [Member] | Loan-to-value ratio, 65% to 75% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | 955 | |
Commercial [Member] | Loan-to-value ratio, 75% to 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | $ 69 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage Loans By Year Of Origination) (Details) $ in Millions | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) item |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | $ 1,876 | |
Originated in prior year | 2,407 | |
Originated in two years prior | 1,297 | |
Originated in three years prior | 2,753 | |
Originated in four years prior | 2,289 | |
Originated in five years prior and prior | 6,301 | |
Total | 16,923 | |
Loan-to-value ratio, less than 65% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | 1,769 | |
Originated in prior year | 2,335 | |
Originated in two years prior | 1,280 | |
Originated in three years prior | 2,643 | |
Originated in four years prior | 2,222 | |
Originated in five years prior and prior | 6,170 | |
Total | $ 16,419 | |
Originated in current year | item | 2.06 | |
Originated in prior year | item | 3.05 | |
Originated in two years prior | item | 2.99 | |
Originated in three years prior | item | 2.17 | |
Originated in four years prior | item | 2.17 | |
Originated in five years prior and prior | item | 2.44 | |
Loan-to-value ratio, 65% to 75% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | $ 105 | |
Originated in prior year | 72 | |
Originated in two years prior | 17 | |
Originated in three years prior | 81 | |
Originated in four years prior | 67 | |
Originated in five years prior and prior | 131 | |
Total | $ 473 | |
Originated in current year | item | 1.50 | |
Originated in prior year | item | 1.53 | |
Originated in two years prior | item | 1.58 | |
Originated in three years prior | item | 1.50 | |
Originated in four years prior | item | 1.62 | |
Originated in five years prior and prior | item | 1.75 | |
Loan-to-value ratio, 75% to 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | $ 2 | |
Originated in three years prior | 29 | |
Total | $ 31 | |
Loan-To-Value Ratio, Greater Than 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | item | 1.45 | |
Originated in three years prior | item | 1.58 | |
Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | $ 2,497 | |
Originated in prior year | 1,493 | |
Originated in two years prior | 3,062 | |
Originated in three years prior | 2,455 | |
Originated in four years prior | 1,824 | |
Originated in five years prior and prior | 5,741 | |
Total | 17,072 | |
Commercial [Member] | Loan-to-value ratio, less than 65% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | 2,361 | |
Originated in prior year | 1,349 | |
Originated in two years prior | 2,875 | |
Originated in three years prior | 2,272 | |
Originated in four years prior | 1,648 | |
Originated in five years prior and prior | 5,543 | |
Total | $ 16,048 | |
Originated in current year | item | 3.05 | |
Originated in prior year | item | 3.02 | |
Originated in two years prior | item | 2.14 | |
Originated in three years prior | item | 2.13 | |
Originated in four years prior | item | 2.33 | |
Originated in five years prior and prior | item | 2.41 | |
Commercial [Member] | Loan-to-value ratio, 65% to 75% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | $ 136 | |
Originated in prior year | 144 | |
Originated in two years prior | 187 | |
Originated in three years prior | 168 | |
Originated in four years prior | 149 | |
Originated in five years prior and prior | 171 | |
Total | $ 955 | |
Originated in current year | item | 1.74 | |
Originated in prior year | item | 2.06 | |
Originated in two years prior | item | 1.42 | |
Originated in three years prior | item | 1.59 | |
Originated in four years prior | item | 1.74 | |
Originated in five years prior and prior | item | 1.76 | |
Commercial [Member] | Loan-to-value ratio, 75% to 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in three years prior | $ 15 | |
Originated in four years prior | 27 | |
Originated in five years prior and prior | 27 | |
Total | $ 69 | |
Originated in three years prior | item | 1.02 | |
Originated in four years prior | item | 0.83 | |
Originated in five years prior and prior | item | 1.08 |
Investments (Credit Quality I_2
Investments (Credit Quality Indicators For Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Amortized Cost | $ 16,923 | |||
Mortgage loans on real estate, ACL | 98 | $ 95 | $ 203 | $ 2 |
Residential [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Amortized Cost | 1,413 | 919 | ||
Mortgage loans on real estate, ACL | 15 | 17 | $ 17 | $ 2 |
Residential [Member] | Performing [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Amortized Cost | 1,379 | 889 | ||
Residential [Member] | Nonperforming [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Amortized Cost | $ 34 | $ 30 |
Investments (Residential Mortga
Investments (Residential Mortgage Loans By Year Of Origination) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | $ 1,876 | |
Originated in prior year | 2,407 | |
Originated in two years prior | 1,297 | |
Originated in three years prior | 2,753 | |
Originated in four years prior | 2,289 | |
Originated in five years prior and prior | 6,301 | |
Total | 16,923 | |
Residential [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | 583 | $ 469 |
Originated in prior year | 533 | 131 |
Originated in two years prior | 93 | 210 |
Originated in three years prior | 137 | 109 |
Originated in four years prior | 67 | |
Total | 1,413 | 919 |
Performing [Member] | Residential [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | 578 | 467 |
Originated in prior year | 527 | 129 |
Originated in two years prior | 90 | 189 |
Originated in three years prior | 119 | 104 |
Originated in four years prior | 65 | |
Total | 1,379 | 889 |
Nonperforming [Member] | Residential [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in current year | 5 | 2 |
Originated in prior year | 6 | 2 |
Originated in two years prior | 3 | 21 |
Originated in three years prior | 18 | 5 |
Originated in four years prior | 2 | |
Total | $ 34 | $ 30 |
Investments (Changes In Allow_2
Investments (Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Investments [Line Items] | |||
Balance as of beginning-of-year | $ 95,000,000 | $ 203,000,000 | $ 2,000,000 |
Additions (reductions) from provision for credit loss expense | 3,000,000 | (108,000,000) | 114,000,000 |
Balance as of end-of-year | 98,000,000 | 95,000,000 | 203,000,000 |
Accrued investment income excluded from credit losses | 51,000,000 | 48,000,000 | 48,000,000 |
Unfunded Loan Commitment [Member] | |||
Schedule of Investments [Line Items] | |||
Additions (reductions) from provision for credit loss expense | 0 | 3,000,000 | (2,000,000) |
Commercial [Member] | |||
Schedule of Investments [Line Items] | |||
Balance as of beginning-of-year | 78,000,000 | 186,000,000 | |
Additions (reductions) from provision for credit loss expense | 5,000,000 | (108,000,000) | 125,000,000 |
Balance as of end-of-year | 83,000,000 | 78,000,000 | 186,000,000 |
Residential [Member] | |||
Schedule of Investments [Line Items] | |||
Balance as of beginning-of-year | 17,000,000 | 17,000,000 | 2,000,000 |
Additions (reductions) from provision for credit loss expense | (2,000,000) | (11,000,000) | |
Balance as of end-of-year | $ 15,000,000 | $ 17,000,000 | 17,000,000 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Schedule of Investments [Line Items] | |||
Balance as of beginning-of-year | 87,000,000 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial [Member] | |||
Schedule of Investments [Line Items] | |||
Balance as of beginning-of-year | 61,000,000 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Residential [Member] | |||
Schedule of Investments [Line Items] | |||
Balance as of beginning-of-year | $ 26,000,000 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | $ 5,676 | $ 6,144 | $ 5,597 | ||||||||
Investment expense | (402) | (305) | (333) | ||||||||
Net investment income | $ 1,343 | $ 1,241 | $ 1,338 | $ 1,352 | $ 1,374 | $ 1,510 | $ 1,509 | $ 1,446 | 5,274 | 5,839 | 5,264 |
AFS Securities [Member] | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | 4,408 | 4,242 | 4,241 | ||||||||
Trading Securities [Member] | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | 179 | 165 | 198 | ||||||||
Equity Securities [Member] | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | 11 | 3 | 3 | ||||||||
Mortgage Loans On Real Estate [Member] | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | 687 | 677 | 674 | ||||||||
Policy loans [Member] | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | 100 | 115 | 125 | ||||||||
Cash And Cash [Member] | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | 12 | 13 | |||||||||
Commercial Mortgage Loan Prepayment And Bond Make Whole Premiums [Member] | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | 100 | 195 | 78 | ||||||||
Alternative investments [Member] | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | 96 | 677 | 218 | ||||||||
Consent fees [Member] | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | 8 | 10 | 5 | ||||||||
Other Investments [Member] | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Investment income | $ 75 | $ 60 | $ 42 |
Investments (Credit Loss Expens
Investments (Credit Loss Expense Incurred) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Gross credit loss benefit (expense) | $ (14) | $ (11) | $ (25) |
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | ||
Net credit loss benefit (expense) | (14) | (11) | (24) |
Corporate Bonds [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Gross credit loss benefit (expense) | (4) | (10) | (24) |
RMBS [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Gross credit loss benefit (expense) | (6) | $ (1) | |
ABS [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Gross credit loss benefit (expense) | $ (4) | ||
Hybrid And Redeemable Preferred Securities [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Gross credit loss benefit (expense) | $ (1) |
Investments (Payables For Colla
Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Carrying Value | ||||||||
Collateral payable for derivative investments | $ 3,210 | $ 5,565 | ||||||
Securities pledged under securities lending agreements | 298 | 241 | ||||||
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | 3,130 | 3,130 | ||||||
Total payables for collateral on investments | 6,638 | $ 6,855 | $ 7,525 | $ 8,905 | 8,936 | $ 8,378 | $ 8,192 | $ 7,593 |
Fair Value | ||||||||
Collateral payable for derivative investments | 3,210 | 5,565 | ||||||
Securities pledged under securities lending agreements | 287 | 235 | ||||||
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | 3,925 | 4,876 | ||||||
Total payables for collateral on investments | $ 7,422 | $ 10,676 | ||||||
Percentage of the fair value of domestic securities obtained as collateral under securities lending agreements. | 102% | |||||||
Percentage of the fair value of foreign securities obtained as collateral under securities lending agreements. | 105% | |||||||
Maximum [Member] | ||||||||
Fair Value | ||||||||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 115% | |||||||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 175% | |||||||
Minimum [Member] | ||||||||
Fair Value | ||||||||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 105% | |||||||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 155% |
Investments (Schedule Of Increa
Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (decrease) in payables for collateral on investments | |||
Collateral payable for derivative investments | $ (2,355) | $ 2,595 | $ 1,587 |
Securities pledged under securities lending agreements | 57 | 126 | 1 |
Investments pledged for FHLBI | (450) | ||
Total increase (decrease) in payables for collateral on investments | $ (2,298) | $ 2,721 | $ 1,138 |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 298 | |
Corporate Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 288 | $ 239 |
Equity Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 8 | 1 |
Foreign Government Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 2 | 1 |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 298 | 241 |
Overnight and Continuous [Member] | Corporate Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 288 | 239 |
Overnight and Continuous [Member] | Equity Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 8 | 1 |
Overnight and Continuous [Member] | Foreign Government Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 2 | $ 1 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Credit Derivatives [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 40 | |
Cash flow hedge, reclassified to earnings, net | 0 | $ 0 |
Exposure Associated With Collateralization Events | 0 | $ 0 |
Maximum [Member] | ||
Credit Derivatives [Line Items] | ||
Non-performance Risk Adjustment | $ 0 | |
Indexed Annuity [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative term | 6 years |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | $ 255,322 | $ 196,987 |
Asset Fair Value | 9,678 | 12,644 |
Liability Fair Value | 9,773 | 13,086 |
Interest Rate Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 107,878 | |
Foreign Currency Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 4,778 | |
Equity Market Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 142,653 | |
Commodity [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 13 | |
Derivative investments [Member] | Interest Rate Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 105,977 | 82,786 |
Asset Fair Value | 709 | 897 |
Liability Fair Value | 935 | 176 |
Derivative investments [Member] | Foreign Currency Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 395 | 487 |
Asset Fair Value | 27 | 7 |
Liability Fair Value | 2 | 2 |
Derivative investments [Member] | Equity Market Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 142,653 | 107,151 |
Asset Fair Value | 5,135 | 8,490 |
Liability Fair Value | 2,035 | 3,909 |
Derivative investments [Member] | Commodity [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 13 | |
Asset Fair Value | 14 | |
Liability Fair Value | 3 | |
Derivative investments [Member] | Credit Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 49 | |
Derivative investments [Member] | LPR Ceded Derivative [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 212 | 318 |
Derivative investments [Member] | GLB Direct Embedded Derivatives [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 1,697 | 1,967 |
Derivative investments [Member] | GLB Ceded Embedded Derivatives [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 29 | 56 |
Liability Fair Value | 1,721 | 2,018 |
Derivative investments [Member] | Reinsurance Related [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 681 | |
Liability Fair Value | 578 | |
Derivative investments [Member] | Indexed Annuity And IUL Contracts [Member] | Non-Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Asset Fair Value | 525 | 528 |
Liability Fair Value | 4,783 | 6,131 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 5,760 | 5,988 |
Asset Fair Value | 647 | 381 |
Liability Fair Value | 250 | 62 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 1,377 | 2,009 |
Asset Fair Value | 4 | 98 |
Liability Fair Value | 232 | 11 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 4,383 | 3,979 |
Asset Fair Value | 643 | 283 |
Liability Fair Value | 18 | 51 |
Derivative investments [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Qualifying Hedges [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 524 | 526 |
Asset Fair Value | 2 | |
Liability Fair Value | $ 44 | $ 210 |
Derivative Instruments (Maturit
Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 126,578 | |
Remaining Life - 1 - 5 Years | 57,640 | |
Remaining Life - 6 - 10 Years | 34,369 | |
Remaining Life - 11 - 30 Years | 22,611 | |
Remaining Life - Over 30 Years | 14,124 | |
Remaining Life - Total Years | 255,322 | $ 196,987 |
Interest Rate Contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | 31,463 | |
Remaining Life - 1 - 5 Years | 27,958 | |
Remaining Life - 6 - 10 Years | 24,892 | |
Remaining Life - 11 - 30 Years | 20,565 | |
Remaining Life - Over 30 Years | 3,000 | |
Remaining Life - Total Years | $ 107,878 | |
Derivative maturity date | Dec. 18, 2024 | |
Foreign Currency Contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 261 | |
Remaining Life - 1 - 5 Years | 730 | |
Remaining Life - 6 - 10 Years | 1,681 | |
Remaining Life - 11 - 30 Years | 2,037 | |
Remaining Life - Over 30 Years | 69 | |
Remaining Life - Total Years | $ 4,778 | |
Derivative maturity date | Jun. 16, 2061 | |
Equity Market Contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 94,841 | |
Remaining Life - 1 - 5 Years | 28,952 | |
Remaining Life - 6 - 10 Years | 7,796 | |
Remaining Life - 11 - 30 Years | 9 | |
Remaining Life - Over 30 Years | 11,055 | |
Remaining Life - Total Years | 142,653 | |
Commodity [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | 13 | |
Remaining Life - Total Years | $ 13 |
Derivative Instruments (Cumulat
Derivative Instruments (Cumulative Basis Adjustments For Fair Value Hedges) (Details) - Fixed Maturity AFS Securities [Member] - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Amortized cost of the hedged Assets / (Liabilities) | $ 587 | $ 764 |
Cumulative fair value hedging adjustments included in the amortized cost of the hedged Assets / (Liabilities) | $ 44 | $ 211 |
Derivative Instruments (Change
Derivative Instruments (Change In Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in our unrealized gain on derivative instruments in accumulated OCI | |||||||||||
Balance as of beginning-of-year | $ (8,033) | $ (3,893) | $ 1,553 | $ 6,544 | $ 6,944 | $ 7,561 | $ 5,840 | $ 6,544 | |||
Income tax benefit (expense) | 14 | 488 | (86) | (82) | (176) | (65) | (83) | $ (97) | 332 | $ (420) | $ 56 |
Balance as of end-of-year | (7,073) | $ (8,033) | $ (3,893) | 1,553 | 6,544 | $ 6,944 | $ 7,561 | 5,840 | (7,073) | 6,544 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||||||||||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||||||||||
Balance as of beginning-of-year | $ 240 | $ 42 | 240 | 42 | 181 | ||||||
Change in foreign currency exchange rate adjustment | 312 | 152 | (174) | ||||||||
Change in DAC, VOBA, DSI and DFEL | (29) | 7 | (23) | ||||||||
Income tax benefit (expense) | (28) | (65) | 26 | ||||||||
Associated amortization of DAC, VOBA, DSI and DFEL | (62) | (2) | (7) | ||||||||
Income tax benefit (expense) | (9) | (10) | (12) | ||||||||
Balance as of end-of-year | $ 309 | $ 240 | 309 | 240 | 42 | ||||||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | |||||||||||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||||||||||
Unrealized holding gains (losses) arising during the period | (336) | 11 | (16) | ||||||||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Net Investment Income [Member] | |||||||||||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||||||||||
Reclassification adjustment for gains (losses) included in net income (loss) | 2 | 3 | 2 | ||||||||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | |||||||||||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||||||||||
Unrealized holding gains (losses) arising during the period | 182 | 130 | 93 | ||||||||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Net Investment Income [Member] | |||||||||||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||||||||||
Reclassification adjustment for gains (losses) included in net income (loss) | 62 | 48 | 56 | ||||||||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Realized Gain (Loss) [Member] | |||||||||||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||||||||||
Reclassification adjustment for gains (losses) included in net income (loss) | $ 39 | $ (2) | $ 6 |
Derivative Instruments (Effects
Derivative Instruments (Effects Of Qualifying And Non-Qualifying Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Realized Gain (Loss) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total line items in which the effects of fair value or cash flow hedges are recorded | $ 214 | $ 711 | $ (526) |
Net Investment Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total line items in which the effects of fair value or cash flow hedges are recorded | 5,274 | 5,839 | 5,264 |
Benefits Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total line items in which the effects of fair value or cash flow hedges are recorded | 10,801 | 8,039 | 8,050 |
Interest Rate Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges gain (loss) | (2,113) | (957) | 1,287 |
Foreign Currency Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges gain (loss) | 2 | (1) | (3) |
Equity Market Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges gain (loss) | (2,075) | 3,355 | 971 |
Commodity [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges gain (loss) | 11 | ||
Credit Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges gain (loss) | (4) | (1) | (6) |
LPR Ceded Derivative [Member] | Benefits Expense [Member] | Non-Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges gain (loss) | 106 | ||
GLB Embedded Derivative [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges gain (loss) | 4 | 1 | |
Reinsurance Related [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges gain (loss) | 1,259 | 280 | (241) |
Indexed Annuity And IUL Contracts [Member] | Realized Gain (Loss) [Member] | Non-Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-qualifying hedges gain (loss) | 1,760 | (2,622) | (471) |
Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Net Investment Income [Member] | Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged items | (167) | (60) | 69 |
Derivatives designated as hedging instruments | 167 | 60 | (69) |
Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Net Investment Income [Member] | Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) reclassified from AOCI into income | 2 | 3 | 2 |
Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Realized Gain (Loss) [Member] | Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) reclassified from AOCI into income | 39 | (2) | 6 |
Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | Net Investment Income [Member] | Qualifying Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) reclassified from AOCI into income | $ 62 | $ 48 | $ 56 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | $ 3,200 | $ 5,564 |
Collateral Posted by LNL (Held by Counter-Party) | (157) | (44) |
AA- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 383 | 2,346 |
Collateral Posted by LNL (Held by Counter-Party) | (6) | |
A+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 1,718 | 2,762 |
Collateral Posted by LNL (Held by Counter-Party) | (151) | (44) |
A [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNL) | 1,099 | 456 |
Collateral Posted by LNL (Held by Counter-Party) |
Derivative Instruments (Sched_2
Derivative Instruments (Schedule Of Offsetting Assets And Liabilities) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 6,483,000,000 | $ 9,705,000,000 |
Derivative Instruments, Gross amounts offset | (2,964,000,000) | (4,008,000,000) |
Derivative Instruments, Net amount of assets | 3,519,000,000 | 5,697,000,000 |
Derivative Instruments, Cash collateral | (3,200,000,000) | (5,564,000,000) |
Derivative Instruments, Non-cash collateral | (319,000,000) | (133,000,000) |
Derivative Instruments, Net amount | ||
Embedded Derivative Instruments, Gross amount of recognized assets | 2,932,000,000 | 2,551,000,000 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | 2,932,000,000 | 2,551,000,000 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 2,932,000,000 | 2,551,000,000 |
Total, Gross amount of recognized assets | 9,415,000,000 | 12,256,000,000 |
Total, Gross amounts offset | (2,964,000,000) | (4,008,000,000) |
Total, Net amount of assets | 6,451,000,000 | 8,248,000,000 |
Total, Cash collateral | (3,200,000,000) | (5,564,000,000) |
Total, Non-cash collateral | (319,000,000) | (133,000,000) |
Total, Net amount | 2,932,000,000 | 2,551,000,000 |
Derivative Liability, Fair Value of Collateral | 1,100,000,000 | 362,000,000 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 304,000,000 | 351,000,000 |
Derivative Instruments, Gross amounts offset | (50,000,000) | (70,000,000) |
Derivative Instruments, Net amount of liabilities | 254,000,000 | 281,000,000 |
Derivative Instruments, Cash collateral | (157,000,000) | (44,000,000) |
Derivative Instruments, Non-cash collateral | (46,000,000) | 0 |
Derivative Instruments, Net amount | 51,000,000 | 237,000,000 |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 6,504,000,000 | 8,727,000,000 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | 6,504,000,000 | 8,727,000,000 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Net amount | 6,504,000,000 | 8,727,000,000 |
Total, Gross amount of recognized liabilities | 6,808,000,000 | 9,078,000,000 |
Total, Gross amounts offset | (50,000,000) | (70,000,000) |
Total, Net amount of liabilities | 6,758,000,000 | 9,008,000,000 |
Total, Cash collateral | (157,000,000) | (44,000,000) |
Total, Non-cash collateral | (46,000,000) | |
Total, Net amount | $ 6,555,000,000 | $ 8,964,000,000 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal Income Taxes [Abstract] | |||
Effective tax rate | 21% | 17% | (10.00%) |
Federal statutory rate | 21% | 21% | 21% |
Net operating loss carryforwards | $ 1,300 | ||
Tax credit carryforward, valuation allowance | 0 | ||
Unrecognized tax benefits, that, if recognized, would impact income tax expense and effective tax rate | 45 | ||
Possible decrease in unrecognized tax benefits | 8 | ||
Recognized interest and penalty expense related to uncertain tax positions | 0 | $ 0 | $ 0 |
Accrued interest and penalty expense related to unrecognized tax benefits | $ 0 | $ 0 |
Federal Income Taxes (Federal I
Federal Income Taxes (Federal Income Tax Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income tax expense (benefit), continuing operations [Abstract] | |||||||||||
Current | $ (24) | $ 20 | $ (59) | ||||||||
Deferred | (308) | 400 | 3 | ||||||||
Federal income tax expense (benefit) | $ (14) | $ (488) | $ 86 | $ 82 | $ 176 | $ 65 | $ 83 | $ 97 | $ (332) | $ 420 | $ (56) |
Federal Income Taxes (Reconcili
Federal Income Taxes (Reconciliation Of The Effective Tax Rate Differences) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of effective tax rate differences [Abstract] | |||||||||||
Income (loss) before taxes | $ 91 | $ (2,777) | $ 529 | $ 540 | $ 992 | $ 434 | $ 549 | $ 554 | $ (1,617) | $ 2,529 | $ 535 |
Federal statutory rate | 21% | 21% | 21% | ||||||||
Federal income tax expense (benefit) at federal statutory rate | $ (340) | $ 531 | $ 112 | ||||||||
Effect of: | |||||||||||
Tax-preferred investment income | (90) | (88) | (98) | ||||||||
Tax credits | (42) | (26) | (39) | ||||||||
Excess tax benefits from stock-based compensation | (1) | 2 | |||||||||
Goodwill impairment | 133 | ||||||||||
Tax impact | (37) | ||||||||||
Other items | 8 | 3 | 4 | ||||||||
Federal income tax expense (benefit) | (14) | $ (488) | $ 86 | $ 82 | 176 | $ 65 | $ 83 | $ 97 | $ (332) | $ 420 | $ (56) |
Effective tax rate | 21% | 17% | (10.00%) | ||||||||
Net operating loss carryforwards | $ 1,300 | $ 1,300 | |||||||||
Tax Year 2020 [Member] | |||||||||||
Effect of: | |||||||||||
Net operating loss carryforwards | $ 37 | $ 37 |
Federal Income Taxes (Federal_2
Federal Income Taxes (Federal Income Tax Asset (Liability)) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Federal income tax asset (liability) [Abstract] | ||
Current | $ 353 | $ 382 |
Deferred | 824 | (3,122) |
Total federal income tax asset (liability) | $ 1,177 | $ (2,740) |
Federal Income Taxes (Significa
Federal Income Taxes (Significant Components Of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets | ||
Future contract benefits and other contract holder funds | $ 430 | $ 297 |
Reinsurance related embedded derivative asset | 121 | |
Compensation and benefit plans | 152 | 180 |
Intangibles | 18 | 25 |
Net unrealized loss on fixed maturity AFS securities | 2,161 | |
Net unrealized loss on trading securities | 70 | |
Investment activity | 296 | |
Net operating losses | 278 | 292 |
Other | 30 | 34 |
Total deferred tax assets | 3,435 | 949 |
Deferred Tax Liabilities | ||
DAC | 1,827 | 433 |
VOBA | 275 | 147 |
Net unrealized gain on fixed maturity AFS securities | 2,706 | |
Net unrealized gain on trading securities | 64 | |
Investment activity | 421 | |
Reinsurance related embedded derivative asset | 143 | |
Other | 366 | 300 |
Total deferred tax liabilities | 2,611 | 4,071 |
Net deferred tax asset | $ 824 | |
Net deferred tax (liability) | $ (3,122) |
Federal Income Taxes (Reconci_2
Federal Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | ||
Balance as of beginning-of-year | $ 45 | $ 43 |
Increases for prior year tax positions | 2 | |
Balance as of end-of-year | $ 45 | $ 45 |
DAC, VOBA, DSI, and DFEL (DAC)
DAC, VOBA, DSI, and DFEL (DAC) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in DAC [Roll Forward] | |||
Balance as of beginning-of-year | $ 5,802 | $ 5,590 | $ 7,418 |
Business acquired (sold) through reinsurance | (362) | (26) | |
Deferrals | 1,372 | 1,364 | 1,427 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (772) | (977) | (811) |
Unlocking | (152) | (558) | (211) |
Adjustment related to realized gains (losses) | (112) | (47) | (35) |
Adjustment related to unrealized (gains) losses | 6,648 | 792 | (2,177) |
Balance as of end-of-year | $ 12,786 | 5,802 | 5,590 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Changes in DAC [Roll Forward] | |||
Balance as of beginning-of-year | $ 5 | ||
Amortization, net of interest: | |||
Balance as of end-of-year | $ 5 |
DAC, VOBA, DSI, and DFEL (VOBA)
DAC, VOBA, DSI, and DFEL (VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in VOBA [Roll Forward] | |||
Balance as of beginning-of-year | $ 184 | $ 234 | $ 327 |
Business acquired (sold) through reinsurance | (288) | ||
Deferrals | 2 | 3 | |
Amortization: | |||
Amortization, excluding unlocking | (76) | (91) | (107) |
Unlocking | 70 | (8) | (201) |
Accretion of interest | 22 | 35 | 44 |
Adjustment related to realized (gains) losses | (2) | (3) | |
Adjustment related to unrealized (gains) losses | 629 | 305 | 168 |
Balance as of end-of-year | $ 829 | $ 184 | $ 234 |
Maximum [Member] | |||
Amortization: | |||
Interest accrual rate | 6.90% | 6.90% | 6.90% |
Minimum [Member] | |||
Amortization: | |||
Interest accrual rate | 4.20% | 4.20% | 4.20% |
DAC, VOBA, DSI, and DFEL (Estim
DAC, VOBA, DSI, and DFEL (Estimated Future Amortization of VOBA) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Estimated future amortization of VOBA, net of interest [Abstract] | |
2023 | $ 33 |
2024 | 35 |
2025 | 34 |
2026 | 33 |
2027 | $ 31 |
DAC, VOBA, DSI, and DFEL (DSI)
DAC, VOBA, DSI, and DFEL (DSI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in DSI [Roll Forward] | |||
Balance as of beginning-of-year | $ 245 | $ 259 | $ 281 |
Deferrals | 6 | 5 | 7 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (14) | (25) | (20) |
Unlocking | 2 | (1) | |
Adjustment related to realized (gains) losses | (1) | (2) | (2) |
Adjustment related to unrealized (gains) losses | 20 | 8 | (6) |
Balance as of end-of-year | $ 258 | $ 245 | $ 259 |
DAC, VOBA, DSI, and DFEL (DFEL)
DAC, VOBA, DSI, and DFEL (DFEL) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in DFEL [Abstract] | |||
Balance as of beginning-of-year | $ 399 | $ 396 | $ 646 |
Business acquired (sold) through reinsurance | (290) | ||
Deferrals | 1,083 | 1,014 | 1,002 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (531) | (593) | (529) |
Unlocking | (48) | (387) | (275) |
Adjustment related to realized (gains) losses | (28) | (22) | 16 |
Adjustment related to unrealized (gains) losses | (4,820) | (281) | 468 |
Balance as of end-of-year | $ 5,695 | 399 | 396 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Changes in DFEL [Abstract] | |||
Balance as of beginning-of-year | $ 4 | ||
Amortization, net of interest: | |||
Balance as of end-of-year | $ 4 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Ceded Credit Risk [Line Items] | |||||||||||||||
Reinsurance ACL and deposit assets | $ 314 | $ 188 | $ 314 | $ 188 | |||||||||||
Maximum retention per single insured life on fixed and VUL insurance contracts | $ 20 | ||||||||||||||
Percent of mortality risk reinsured on newly issued non-term life insurance contracts | 21% | ||||||||||||||
Realized gains (losses) | (124) | $ 11 | $ 70 | $ 257 | 700 | $ (32) | $ (169) | $ 212 | $ 327 | $ 43 | $ 338 | $ 11 | $ 214 | 711 | $ (526) |
Swiss Re [Member] | |||||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||||
Reinsurance receivable | 1,100 | 1,100 | |||||||||||||
Trust funded to support reinsurance receivable | 710,000 | 1,000 | 710,000 | 1,000 | |||||||||||
LNBAR [Member] | |||||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||||
Reinsurance Recoverables, Gross | 23,900 | 22,800 | 23,900 | 22,800 | |||||||||||
Reinsurance receivable | 4,400 | 2,900 | 4,400 | 2,900 | |||||||||||
Trust funded to support reinsurance receivable | 2,200 | 3,000 | 2,200 | 3,000 | |||||||||||
Protective [Member] | |||||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||||
Reinsurance Recoverables, Gross | 10,100 | 10,700 | 10,100 | 10,700 | |||||||||||
Protective [Member] | Ceded Credit Risk, Secured [Member] | |||||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||||
Reinsurance Recoverables, Gross | 11,500 | 14,000 | 11,500 | 14,000 | |||||||||||
Athene Holding Ltd. [Member] | |||||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||||
Deposit assets | 3,800 | 5,000 | 3,800 | 5,000 | |||||||||||
Amount of amortization, after-tax, of deferred gain on business sold | 25 | 26 | $ 29 | ||||||||||||
Reserves associated with modified coinsurance reinsurance arrangements | 3,809 | 5,404 | 3,809 | 5,404 | |||||||||||
Letter of credit | 117 | 117 | |||||||||||||
Athene Holding Ltd. [Member] | Ceded Credit Risk, Secured [Member] | |||||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||||
Reserves associated with modified coinsurance reinsurance arrangements | 105 | 105 | |||||||||||||
Resolution Life [Member] | |||||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||||
Reinsurance receivable | 4,700 | 4,700 | |||||||||||||
Resolution Life [Member] | Ceded Credit Risk, Secured [Member] | |||||||||||||||
Ceded Credit Risk [Line Items] | |||||||||||||||
Reinsurance Recoverables, Gross | $ 4,100 | $ 4,100 | 4,100 | $ 4,100 | |||||||||||
Realized gains (losses) | $ 635 |
Reinsurance (Reinsurance amount
Reinsurance (Reinsurance amounts recorded on the Consolidated Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reinsurance [Abstract] | |||||||||||
Direct insurance premiums and fee income | $ 13,807 | $ 14,028 | $ 13,159 | ||||||||
Reinsurance assumed | 102 | 97 | 101 | ||||||||
Reinsurance ceded | (2,285) | (2,136) | (2,018) | ||||||||
Total insurance premiums and fee income | 11,624 | 11,989 | 11,242 | ||||||||
Direct insurance benefits | 14,982 | 10,578 | 10,497 | ||||||||
Reinsurance recoveries netted against benefits | (4,181) | (2,539) | (2,447) | ||||||||
Total benefits | $ 2,053 | $ 4,498 | $ 2,051 | $ 2,199 | $ 2,169 | $ 1,839 | $ 1,848 | $ 2,183 | $ 10,801 | $ 8,039 | $ 8,050 |
Reinsurance (Schedule Of Assets
Reinsurance (Schedule Of Assets In Support Of Reserves) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Ceded Credit Risk [Line Items] | ||||||||||
Fixed maturity AFS securities | $ 99,465 | $ 97,391 | $ 102,954 | $ 109,889 | $ 117,476 | $ 120,794 | $ 120,452 | $ 115,695 | ||
Trading securities | 3,446 | 3,527 | 3,760 | 4,313 | 4,405 | 4,114 | 4,154 | 4,287 | ||
Equity securities | 427 | 427 | 412 | 393 | 371 | 260 | 191 | 142 | ||
Mortgage loans on real estate | 18,211 | 17,975 | 17,830 | 17,795 | 17,893 | 17,633 | 17,487 | 17,159 | ||
Derivative investments | 3,519 | 3,398 | 3,167 | 4,574 | 5,697 | 5,075 | 4,729 | 3,482 | ||
Other investments | 3,577 | 3,620 | 3,782 | 3,521 | 3,445 | 3,302 | 3,221 | 3,023 | ||
Cash and invested cash | 2,499 | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | $ 1,462 | $ 1,879 |
Accrued investment income | 1,234 | 1,238 | 1,196 | 1,209 | 1,157 | 1,251 | 1,215 | 1,255 | ||
Other assets | 21,338 | $ 21,560 | $ 20,447 | $ 22,284 | 23,292 | $ 22,941 | $ 22,871 | $ 21,930 | ||
Athene Holding Ltd. [Member] | ||||||||||
Ceded Credit Risk [Line Items] | ||||||||||
Fixed maturity AFS securities | 474 | 744 | ||||||||
Trading securities | 2,644 | 3,399 | ||||||||
Equity securities | 60 | 54 | ||||||||
Mortgage loans on real estate | 487 | 739 | ||||||||
Derivative investments | 39 | 93 | ||||||||
Other investments | 42 | 227 | ||||||||
Cash and invested cash | 26 | 110 | ||||||||
Accrued investment income | 35 | 33 | ||||||||
Other assets | 2 | 5 | ||||||||
Total | $ 3,809 | $ 5,404 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | |
Term for new business cash flows | 10 years | ||
Impairment of intangibles | $ 634 | $ 634 | $ 634 |
Life Insurance Segment [Member] | |||
Impairment of intangibles | $ 634 | $ 634 |
Goodwill (Changes In Carrying A
Goodwill (Changes In Carrying Amount Of Goodwill, By Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||||||||||
Goodwill Gross | $ 3,930 | $ 3,930 | ||||||||
Accumulated impairment as of beginning-of-year | (2,152) | (2,152) | ||||||||
Impairment | $ (634) | $ (634) | $ (634) | |||||||
Net goodwill as of end-of-year | 1,144 | $ 1,144 | 1,144 | $ 1,778 | $ 1,778 | 1,778 | $ 1,778 | $ 1,778 | $ 1,778 | 1,778 |
Annuities Segment [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Goodwill Gross | 1,040 | 1,040 | ||||||||
Accumulated impairment as of beginning-of-year | (600) | (600) | ||||||||
Net goodwill as of end-of-year | 440 | 440 | 440 | |||||||
Retirement Plan Services Segment [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Goodwill Gross | 20 | 20 | ||||||||
Net goodwill as of end-of-year | 20 | 20 | 20 | |||||||
Life Insurance Segment [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Goodwill Gross | 2,186 | 2,186 | ||||||||
Accumulated impairment as of beginning-of-year | (1,552) | (1,552) | ||||||||
Impairment | $ (634) | (634) | ||||||||
Net goodwill as of end-of-year | 634 | 634 | ||||||||
Group Protection Segment [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Goodwill Gross | 684 | 684 | ||||||||
Net goodwill as of end-of-year | $ 684 | $ 684 | $ 684 |
Goodwill and Specifically Ident
Goodwill and Specifically Identifiable Intangible Assets (Schedule Of Intangible Assets By Reportable Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | $ 712 | $ 712 |
Accumulated amortization | 192 | 155 |
Mutual Fund Contract Rights [Member] | ||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | 5 | 5 |
Sales Force [Member] | ||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | 100 | 100 |
Accumulated amortization | 67 | 63 |
VOCRA [Member] | ||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | 576 | 576 |
Accumulated amortization | 115 | 85 |
VODA [Member] | ||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | 31 | 31 |
Accumulated amortization | $ 10 | $ 7 |
Goodwill and Specifically Ide_2
Goodwill and Specifically Identifiable Intangible Assets (Future estimated amortization of specifically identifiable intangible assets) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill [Abstract] | |
2023 | $ 37 |
2024 | 37 |
2025 | 37 |
2026 | 37 |
2027 | 37 |
Thereafter | $ 330 |
Guaranteed Benefit Features (Na
Guaranteed Benefit Features (Narrative) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Guaranteed Benefit Features [Abstract] | ||
Percent of permanent life insurance in force | 38% | 37% |
Guaranteed Benefit Features (In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Return of Net Deposits [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 94,297 | $ 117,503 |
Net amount at risk | $ 1,376 | $ 84 |
Average attained age of contract holders | 67 years | 67 years |
Minimum Return [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 71 | $ 102 |
Net amount at risk | $ 14 | $ 11 |
Average attained age of contract holders | 79 years | 79 years |
Guaranteed minimum return | 5% | 5% |
Anniversary Contract Value [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 21,730 | $ 28,788 |
Net amount at risk | $ 3,699 | $ 400 |
Average attained age of contract holders | 73 years | 73 years |
Guaranteed Benefit Features (Su
Guaranteed Benefit Features (Summary Of Guaranteed Death Benefit Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Guaranteed Benefit Features [Abstract] | |||
Balance as of beginning-of-year | $ 132 | $ 121 | $ 117 |
Changes in reserves | 210 | 31 | 30 |
Benefits paid | (58) | (20) | (26) |
Balance as of end-of-period | $ 284 | $ 132 | $ 121 |
Guaranteed Benefit Features (Ac
Guaranteed Benefit Features (Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts) (Details) - Variable Annuity [Member] - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 110,581 | $ 143,744 |
Domestic Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 58,640 | 77,290 |
International Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 15,959 | 21,223 |
Fixed Income [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 35,982 | $ 45,231 |
Liability For Unpaid Claims (Na
Liability For Unpaid Claims (Narrative) (Details) | Dec. 31, 2022 |
Minimum [Member] | |
Discount rate | 2.50% |
Maximum [Member] | |
Discount rate | 5% |
Liability For Unpaid Claims (Ch
Liability For Unpaid Claims (Changes In Liability For Unpaid Claims) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability For Unpaid Claims [Abstract] | |||
Balance as of beginning-of-year | $ 6,280 | $ 5,934 | $ 5,552 |
Reinsurance recoverable | 147 | 151 | 152 |
Net balance as of beginning-of-year | 6,133 | 5,783 | 5,400 |
Incurred related to: | |||
Current year | 3,875 | 4,026 | 3,517 |
Interest | 159 | 141 | 148 |
All other incurred | (190) | (271) | (209) |
Total incurred | 3,844 | 3,896 | 3,456 |
Paid related to: | |||
Current year | (1,951) | (2,074) | (1,707) |
Prior years | (1,638) | (1,472) | (1,366) |
Total paid | (3,589) | (3,546) | (3,073) |
Net balance as of end-of-period | 6,388 | 6,133 | 5,783 |
Reinsurance recoverable | 143 | 147 | 151 |
Balance as of end-of-period | $ 6,531 | $ 6,280 | $ 5,934 |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 4,370,000,000 |
Non-operating indebtedness of subsidiaries to total capitalization, maximum | 7.50% |
Five-year revolving credit facility [Member] | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 2,500,000,000 |
Minimum consolidated net worth | $ 10,000,000,000 |
Percentage of aggregate net proceeds of equity issuances | 50% |
Debt to capital ratio (low end of range) | 0.35% |
Debt to capital ratio (high end of range) | 1% |
LOC facility due August 2031 [Member] | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 979,000,000 |
LOC facility due October 2031 [Member] | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | 891,000,000 |
9.76% Surplus Note, Due 2024 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 50,000,000 |
Maturity date | Sep. 30, 2024 |
Interest rate | 9.76% |
6.56% Surplus Note, Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 500,000,000 |
Maturity date | Mar. 31, 2028 |
Interest rate | 6.56% |
Capital surplus repayment threshold | $ 2,300,000,000 |
111 bps Surplus Note, Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 71,000,000 |
Maturity date | Sep. 24, 2028 |
226 bps Surplus Note, Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 287,000,000 |
Surplus notes | $ 568,000,000 |
Maturity date | Oct. 01, 2028 |
6.03% Surplus Note, Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 750,000,000 |
Maturity date | Dec. 31, 2028 |
Interest rate | 6.03% |
Capital surplus repayment threshold | $ 2,400,000,000 |
200 bps Surplus Note, Due 2035 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 30,000,000 |
Maturity date | Sep. 28, 2035 |
100 bps Surplus Note, Due 2037 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 375,000,000 |
Surplus notes | $ 154,000,000 |
Maturity date | Oct. 09, 2037 |
155 bps Surplus Note, Due 2037 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 25,000,000 |
Maturity date | Jun. 30, 2037 |
4.20% Surplus Note, Due 2037 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 50,000,000 |
Maturity date | Jul. 01, 2037 |
Interest rate | 4.20% |
4.50% Surplus Note, Due 2038 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 13,000,000 |
Maturity date | Jun. 30, 2038 |
Interest rate | 4.50% |
4.225% Surplus Notes, Due 2037 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 28,000,000 |
Maturity date | Oct. 09, 2037 |
Interest rate | 4.225% |
4.00% Surplus Notes, Due 2037 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 30,000,000 |
Maturity date | Oct. 09, 2037 |
Interest rate | 4% |
London Interbank Offered Rate (LIBOR) [Member] | 111 bps Surplus Note, Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Variable rate | 1.11% |
London Interbank Offered Rate (LIBOR) [Member] | 226 bps Surplus Note, Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Variable rate | 2.26% |
London Interbank Offered Rate (LIBOR) [Member] | 200 bps Surplus Note, Due 2035 [Member] | |
Debt Instrument [Line Items] | |
Variable rate | 2% |
London Interbank Offered Rate (LIBOR) [Member] | 100 bps Surplus Note, Due 2037 [Member] | |
Debt Instrument [Line Items] | |
Variable rate | 1% |
London Interbank Offered Rate (LIBOR) [Member] | 155 bps Surplus Note, Due 2037 [Member] | |
Debt Instrument [Line Items] | |
Variable rate | 1.55% |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt (Schedule Of Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | ||||||||
Short-term debt | $ 562 | $ 771 | $ 698 | $ 737 | $ 1,084 | $ 483 | $ 457 | $ 568 |
Total long-term debt | $ 2,269 | 2,334 | ||||||
9.76% Surplus Note, Due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 9.76% | |||||||
9.76% Surplus Note, Due 2024 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 50 | 50 | ||||||
Stated interest rate | 9.76% | |||||||
6.56% Surplus Note, Due 2028 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 6.56% | |||||||
6.56% Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 500 | 500 | ||||||
Stated interest rate | 6.56% | |||||||
111 bps Surplus Note, Due 2028 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 1.11% | |||||||
111 bps Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 71 | 71 | ||||||
111 bps Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 1.11% | |||||||
226 bps Surplus Note, Due 2028 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 568 | |||||||
226 bps Surplus Note, Due 2028 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 2.26% | |||||||
226 bps Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 568 | 593 | ||||||
226 bps Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 2.26% | |||||||
6.03% Surplus Note, Due 2028 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 6.03% | |||||||
6.03% Surplus Note, Due 2028 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 750 | 750 | ||||||
Stated interest rate | 6.03% | |||||||
200 bps Surplus Note, Due 2035 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 2% | |||||||
200 bps Surplus Note, Due 2035 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 30 | 30 | ||||||
200 bps Surplus Note, Due 2035 [Member] | Long-term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 2% | |||||||
155 bps Surplus Note, Due 2037 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 1.55% | |||||||
155 bps Surplus Note, Due 2037 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 25 | 25 | ||||||
155 bps Surplus Note, Due 2037 [Member] | Long-term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 1.55% | |||||||
4.20% Surplus Note, Due 2037 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.20% | |||||||
4.20% Surplus Note, Due 2037 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 50 | 50 | ||||||
Stated interest rate | 4.20% | |||||||
100 bps Surplus Note, Due 2037 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 154 | |||||||
100 bps Surplus Note, Due 2037 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 1% | |||||||
100 bps Surplus Note, Due 2037 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 154 | 194 | ||||||
100 bps Surplus Note, Due 2037 [Member] | Long-term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate | 1% | |||||||
4.225% Surplus Notes, Due 2037 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.225% | |||||||
4.225% Surplus Notes, Due 2037 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 28 | 28 | ||||||
Stated interest rate | 4.225% | |||||||
4.00% Surplus Notes, Due 2037 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4% | |||||||
4.00% Surplus Notes, Due 2037 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 30 | 30 | ||||||
Stated interest rate | 4% | |||||||
4.50% Surplus Note, Due 2038 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.50% | |||||||
4.50% Surplus Note, Due 2038 [Member] | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus notes | $ 13 | $ 13 | ||||||
Stated interest rate | 4.50% |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt (Future Principal Payments) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Future principal payments due on long-term debt [Abstract] | |
2023 | |
2024 | 50 |
2025 | |
2026 | |
2027 | |
Thereafter | 2,219 |
Total | $ 2,269 |
Short-Term and Long-Term Debt_5
Short-Term and Long-Term Debt (Credit Facilities and Letters of Credit) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |
Credit Facilities | Total |
Maximum Available | $ 4,370 |
LOCs issued | $ 3,474 |
Five-year revolving credit facility [Member] | |
Line of Credit Facility [Line Items] | |
Credit Facilities | Five-year revolving credit facility |
Expiration Date | Jun. 19, 2026 |
Maximum Available | $ 2,500 |
LOCs issued | $ 1,635 |
LOC facility due August 2031 [Member] | |
Line of Credit Facility [Line Items] | |
Credit Facilities | LOC facility (1) |
Expiration Date | Aug. 26, 2031 |
Maximum Available | $ 979 |
LOCs issued | $ 948 |
LOC facility due October 2031 [Member] | |
Line of Credit Facility [Line Items] | |
Credit Facilities | LOC facility (1) |
Expiration Date | Oct. 01, 2031 |
Maximum Available | $ 891 |
LOCs issued | $ 891 |
Contingencies and Commitments_2
Contingencies and Commitments (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Loss Contingencies [Line Items] | |||
Loss contingency, estimate | $ 190,000 | ||
Operating lease ROU asset | $ 110 | $ 134,000 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Operating lease liability | $ 119,000 | $ 140,000 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 458,000 | $ 436,000 | |
Weighted average discount rate, operating lease | 2.80% | 2.50% | |
Weighted average remaining operating lease term | 5 years | ||
Operating lease expense | $ 45,000 | $ 41,000 | $ 42,000 |
Finance lease, net book value | $ 14,000 | $ 37,000 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Separate account assets | Separate account assets | |
Weighted average discount rate, finance lease | 2.90% | 1.40% | |
Weighted average remaining finance lease term | 1 year | ||
Finance Lease, Liability | $ 106,000 | $ 175,000 | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Separate account liabilities | Separate account liabilities | |
Number of leases not yet commenced | item | 0 | ||
Loss contingency accrual, insurance-related assessment, premium tax offset | $ (3,000) | $ (7,000) | |
Sale-Leaseback Arrangements [Member] | |||
Loss Contingencies [Line Items] | |||
Finance Lease, Liability | $ 558,000 | $ 375,000 |
Contingencies and Commitments_3
Contingencies and Commitments (Finance Lease Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contingencies and Commitments [Abstract] | |||
Amortization of ROU assets | $ 23 | $ 38 | $ 53 |
Interest on lease liabilities | 4 | 3 | 6 |
Total | $ 27 | $ 41 | $ 59 |
Contingencies and Commitments_4
Contingencies and Commitments (Cash Flow Information Related To Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contingencies and Commitments [Abstract] | |||
Operating cash flows from operating leases | $ 47 | $ 40 | $ 43 |
Financing cash flows from finance leases | 74 | 62 | 53 |
Operating leases | $ 6 | $ 8 | $ 10 |
Contingencies and Commitments_5
Contingencies and Commitments (Future Minimum Lease Payments) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 34 | |
2024 | 32 | |
2025 | 27 | |
2026 | 23 | |
2027 | 15 | |
Thereafter | 16 | |
Total future minimum lease payments | 147 | |
Less: Amount representing interest | 28 | |
Present value of minimum lease payments | 119 | $ 140 |
Finance Leases | ||
2023 | 82 | |
2024 | 18 | |
2025 | 7 | |
2026 | 4 | |
Total future minimum lease payments | 111 | |
Less: Amount representing interest | 5 | |
Present value of minimum lease payments | 106 | 175 |
Sale-Leaseback Arrangements [Member] | ||
Finance Leases | ||
2023 | 43 | |
2024 | 95 | |
2025 | 127 | |
2026 | 175 | |
2027 | 191 | |
Total future minimum lease payments | 631 | |
Less: Amount representing interest | 73 | |
Present value of minimum lease payments | $ 558 | $ 375 |
Shares and Stockholder's Equi_3
Shares and Stockholder's Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ 22,860 | $ 25,041 | |
Balance | 8,266 | 22,860 | $ 25,041 |
Unrealized Gain (Loss) on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 6,315 | 8,993 | 5,637 |
Income tax benefit (expense) | 3,716 | 600 | (901) |
Reclassification adjustment for gains (losses) included in net income (loss) | (13) | 624 | (52) |
Associated amortization of DAC, VOBA, DSI, and DFEL | 44 | (23) | 38 |
Income tax benefit (expense) | (7) | (126) | 3 |
Balance | (7,365) | 6,315 | 8,993 |
Unrealized Gain (Loss) on AFS Securities [Member] | Gains (Losses) Arising During The Year [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications and taxes | (24,477) | (4,475) | 7,585 |
Unrealized Gain (Loss) on AFS Securities [Member] | Change in Foreign Currency Exchange Rate Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications and taxes | (321) | (146) | 180 |
Unrealized Gain (Loss) on AFS Securities [Member] | Change in Deferred Insurance Charges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications and taxes | 7,426 | 1,818 | (3,559) |
Unrealized OTTI on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 40 | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 240 | 42 | 181 |
Income tax benefit (expense) | (28) | (65) | 26 |
Reclassification adjustment for gains (losses) included in net income (loss) | 103 | 49 | 64 |
Associated amortization of DAC, VOBA, DSI, and DFEL | (62) | (2) | (7) |
Income tax benefit (expense) | (9) | (10) | (12) |
Balance | 309 | 240 | 42 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Gains (Losses) Arising During The Year [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications and taxes | (154) | 141 | 77 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Change in Foreign Currency Exchange Rate Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications and taxes | 312 | 152 | (174) |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Change in Deferred Insurance Charges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications and taxes | (29) | 7 | (23) |
Funded Status of Employee Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (11) | (14) | (22) |
Income tax benefit (expense) | (1) | (2) | |
Balance | (17) | (11) | (14) |
Funded Status of Employee Benefit Plans [Member] | Gains (Losses) Arising During The Year [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications and taxes | $ (6) | $ 4 | 10 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 40 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unrealized OTTI on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ (40) |
Shares and Stockholder's Equi_4
Shares and Stockholder's Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Net investment income | $ 1,343 | $ 1,241 | $ 1,338 | $ 1,352 | $ 1,374 | $ 1,510 | $ 1,509 | $ 1,446 | $ 5,274 | $ 5,839 | $ 5,264 | ||||
Realized gain (loss) | (124) | 11 | 70 | 257 | 700 | (32) | (169) | 212 | $ 327 | $ 43 | $ 338 | $ 11 | 214 | 711 | (526) |
Commissions and other expenses | (1,326) | (1,205) | (1,077) | (1,191) | (1,276) | (1,841) | (1,260) | (1,171) | (4,799) | (5,548) | (4,889) | ||||
Income (loss) from continuing operations before taxes | 91 | (2,777) | 529 | 540 | 992 | 434 | 549 | 554 | (1,617) | 2,529 | 535 | ||||
Income tax benefit (expense) | 14 | 488 | (86) | (82) | (176) | (65) | (83) | (97) | 332 | (420) | 56 | ||||
Net income (loss) | $ 105 | $ (2,289) | $ 443 | $ 458 | $ 816 | $ 369 | $ 466 | $ 457 | $ 900 | $ 923 | $ (1,389) | $ 1,292 | (1,285) | 2,109 | 591 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Income (loss) from continuing operations before taxes | 31 | 601 | (14) | ||||||||||||
Income tax benefit (expense) | (7) | (126) | 3 | ||||||||||||
Net income (loss) | 24 | 475 | (11) | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Commissions and other expenses | (62) | (2) | (7) | ||||||||||||
Income (loss) from continuing operations before taxes | 41 | 47 | 57 | ||||||||||||
Income tax benefit (expense) | (9) | (10) | (12) | ||||||||||||
Net income (loss) | 32 | 37 | 45 | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gross Reclassification [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Realized gain (loss) | (13) | 624 | (52) | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Total gross reclassifications | 103 | 49 | 64 | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Interest Rate Contracts [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Net investment income | 2 | 3 | 2 | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Foreign Currency Contracts [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Net investment income | 62 | 48 | 56 | ||||||||||||
Realized gain (loss) | 39 | (2) | 6 | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Associated Amortization of DAC, VOBA, DSI and DFEL [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Realized gain (loss) | $ 44 | $ (23) | $ 38 |
Realized Gain (Loss) (Details)
Realized Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Realized gain (loss) related to certain investments | |||||||||||||||
AFS securities. Gross gains | $ 37 | $ 660 | $ 26 | ||||||||||||
AFS securities. Gross losses | (50) | (36) | (78) | ||||||||||||
Credit loss benefit (expense) | (14) | (11) | (25) | ||||||||||||
Realized gain (loss) on equity securities | 12 | 41 | 8 | ||||||||||||
Other gain (loss) on investments | (35) | (7) | |||||||||||||
Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | (18) | (25) | 31 | ||||||||||||
Total realized gain (loss) related to financial instruments and reinsurance-related assets | 486 | 911 | (304) | ||||||||||||
Realized gain (loss) on the mark-to-market on certain instruments | 683 | 169 | (142) | ||||||||||||
Indexed annuity and IUL contracts net derivatives results: | |||||||||||||||
Gross gain (loss) | 74 | 22 | 38 | ||||||||||||
Associated amortization of DAC, VOBA, DSI, and DFEL | (56) | 4 | (26) | ||||||||||||
GLB fees ceded to LNBAR and attributed fees: | |||||||||||||||
Gross gain (loss) | (260) | (192) | (205) | ||||||||||||
Associated amortization of DAC, VOBA, DSI, and DFEL | (30) | (34) | (29) | ||||||||||||
Total realized gain (loss) | $ (124) | $ 11 | $ 70 | $ 257 | $ 700 | $ (32) | $ (169) | $ 212 | $ 327 | $ 43 | $ 338 | $ 11 | 214 | 711 | (526) |
Mortgage Loans On Real Estate [Member] | |||||||||||||||
Realized gain (loss) related to certain investments | |||||||||||||||
Credit loss benefit (expense) | (3) | 111 | (117) | ||||||||||||
Realized gain (loss) on the mark-to-market on certain instruments | (24) | 3 | (24) | ||||||||||||
Reinsurance Related Assets [Member] | |||||||||||||||
Realized gain (loss) related to certain investments | |||||||||||||||
Credit loss benefit (expense) | (126) | 2 | |||||||||||||
Equity Securities [Member] | |||||||||||||||
Realized gain (loss) related to certain investments | |||||||||||||||
Realized gain (loss) on equity securities | $ 7 | $ 44 | $ 8 |
Commissions and Other Expense_2
Commissions and Other Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Details underlying commissions and other expenses [Abstract] | |||||||||||
Commissions | $ 2,201 | $ 2,227 | $ 2,193 | ||||||||
General and administrative expenses | 2,200 | 2,187 | 2,014 | ||||||||
Expenses associated with reserve financing and LOCs | 60 | 57 | 55 | ||||||||
DAC and VOBA deferrals and interest, net of amortization | (466) | 235 | (144) | ||||||||
Broker-dealer expenses | 419 | 441 | 378 | ||||||||
Specifically identifiable intangible asset amortization | 37 | 37 | 37 | ||||||||
Taxes, licenses and fees | 348 | 350 | 336 | ||||||||
Acquisition and integration costs related to mergers and acquisitions | 14 | 20 | |||||||||
Total | $ 1,326 | $ 1,205 | $ 1,077 | $ 1,191 | $ 1,276 | $ 1,841 | $ 1,260 | $ 1,171 | $ 4,799 | $ 5,548 | $ 4,889 |
Retirement and Deferred Compe_3
Retirement and Deferred Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Abstract] | |||
Net periodic benefit expense (recovery) | $ (2) | $ 1 | $ 4 |
Expected benefit payments in the next fiscal year | 10 | ||
Defined contribution plans expense | 99 | 104 | 97 |
Deferred compensation plans expense | 12 | 18 | 35 |
Other Postretirement Benefit Plans [Member] | |||
Statement [Abstract] | |||
Benefit expense | $ (35) | $ (28) | $ (9) |
Retirement and Deferred Compe_4
Retirement and Deferred Compensation Plans (Benefit Plans' Assets and Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 86 | $ 116 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 77 | 108 |
Projected benefit obligation | 82 | 107 |
Funded status | (5) | 1 |
Amounts Recognized on the Consolidated Balance Sheets | ||
Other assets | 4 | |
Other liabilities | (5) | (3) |
Net amount recognized | $ (5) | $ 1 |
Weighted-Average Assumptions, Benefit obligations: | ||
Weighted-average discount rate | 5.66% | 3.07% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Weighted-average discount rate | 3.07% | 2.95% |
Expected return on plan assets | 5% | 4.25% |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 9 | $ 8 |
Projected benefit obligation | 6 | 9 |
Funded status | 3 | (1) |
Amounts Recognized on the Consolidated Balance Sheets | ||
Other assets | 3 | |
Other liabilities | (1) | |
Net amount recognized | $ 3 | $ (1) |
Weighted-Average Assumptions, Benefit obligations: | ||
Weighted-average discount rate | 5.70% | 3.10% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Weighted-average discount rate | 3.73% | 2.96% |
Expected return on plan assets | 6.50% | 6.50% |
Retirement and Deferred Compe_5
Retirement and Deferred Compensation Plans (Fair Value of Benefit Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | $ 86 | $ 116 |
Corporate Bonds [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 33 | 49 |
U.S. Government Bonds [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 17 | 20 |
CMBS [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 2 | 2 |
Common Stock, [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 22 | 32 |
Cash And Invested Cash [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 3 | 5 |
Other Investments [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | $ 9 | $ 8 |
Retirement and Deferred Compe_6
Retirement and Deferred Compensation Plans (Deferred Compensation Plans Liabilities and Investment) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement and Deferred Compensation Plans [Abstract] | ||
Total liabilities | $ 623 | $ 755 |
Investments dedicated to fund liabilities | $ 206 | $ 254 |
Stock-Based Incentive Compens_3
Stock-Based Incentive Compensation Plans (Compensation Expense By Award Type) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | $ 48 | $ 58 | $ 48 |
Recognized tax benefit | 11 | 12 | 10 |
Stock Options [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | 6 | 8 | 9 |
Performance Shares [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | 9 | 17 | 5 |
RSU's [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | $ 33 | $ 33 | $ 34 |
Statutory Information and Res_3
Statutory Information and Restrictions (Narrative) (Details) $ in Billions | Dec. 31, 2022 USD ($) |
Statutory accounting practices [Line Items] | |
RBC Ratio Company Action Level Low End | 75% |
RBC Ratio Company Action Level High End | 100% |
Amount of dividends that could be paid in the next year without prior approval | $ 1.7 |
INDIANA | |
Statutory accounting practices [Line Items] | |
Statutory limitation as percentage of insurer contract holder surplus | 10% |
NEW YORK | |
Statutory accounting practices [Line Items] | |
Statutory limitation as percentage of insurer contract holder surplus | 10% |
Statutory Information and Res_4
Statutory Information and Restrictions (Statutory Capital and Surplus) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statutory Information and Restrictions [Abstract] | ||
U.S. capital and surplus | $ 8,507 | $ 8,647 |
Statutory Information and Res_5
Statutory Information and Restrictions (Net Gain (Loss) From Operations, Net Income Loss, Dividends to LNC Holding Company) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Information and Restrictions [Abstract] | |||
U.S. net gain (loss) from operations, after-tax | $ 1,708 | $ (1,285) | $ (247) |
U.S. net income (loss) | 1,965 | (569) | 53 |
U.S. dividends to LNC holding company | $ 645 | $ 1,910 | $ 660 |
Statutory Information and Res_6
Statutory Information and Restrictions (Effects On statutory Surplus Compared To NAIC Statutory Surplus) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Calculation of reserves using the Indiana universal life method [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | $ 3 | $ 6 |
Conservative valuation rate on certain variable annuities [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | (36) | (40) |
Calculation of reserves using continuous CARVM [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | (1) | |
Conservative Reg 213 Reserves On VA Contracts [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | (37) | (27) |
Derivative Instruments And Equity Indexed Reserves [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | 14 | (113) |
Assets in Group Fixed Annuity Contracts Held at General Account Values [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | 436 | |
Lesser of LOC and XXX additional reserve as surplus [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | 1,838 | 1,847 |
LLC Notes And Variable Value Surplus Notes [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | 1,547 | 1,616 |
Excess Of Loss Reinsurance Treaties [Member] | ||
Statutory accounting practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | $ 549 | $ 493 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans with fair value option in non-accrual | $ 0 | |
Loans with fair value option, 90 days past due and still accruing | 0 | |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | $ 0 |
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Assets | ||||||||
Fixed maturity AFS securities | $ 99,465 | $ 97,391 | $ 102,954 | $ 109,889 | $ 117,476 | $ 120,794 | $ 120,452 | $ 115,695 |
Trading securities | 3,446 | 3,527 | 3,760 | 4,313 | 4,405 | 4,114 | 4,154 | 4,287 |
Equity securities | 427 | 427 | 412 | 393 | 371 | 260 | 191 | 142 |
Mortgage loans on real estate | 18,211 | 17,975 | 17,830 | 17,795 | 17,893 | 17,633 | 17,487 | 17,159 |
Derivative investments | 3,519 | 3,398 | 3,167 | 4,574 | 5,697 | 5,075 | 4,729 | 3,482 |
Other investments | 3,577 | $ 3,620 | $ 3,782 | $ 3,521 | 3,445 | $ 3,302 | $ 3,221 | $ 3,023 |
Other contract holder funds: | ||||||||
Benefit Plans' Assets | 86 | 116 | ||||||
Carrying Value [Member] | ||||||||
Assets | ||||||||
Trading securities | 3,446 | 4,405 | ||||||
Equity securities | 427 | 371 | ||||||
Mortgage loans on real estate | 18,211 | 17,893 | ||||||
Derivative investments | 3,519 | 5,697 | ||||||
Other investments | 3,577 | 3,435 | ||||||
Cash and invested cash | 2,499 | 2,331 | ||||||
Reinsurance related embedded derivatives | 681 | |||||||
Indexed annuity ceded embedded derivatives | 525 | 528 | ||||||
LPR ceded derivative | 212 | 318 | ||||||
Separate account assets | 143,536 | 182,583 | ||||||
Other contract holder funds: | ||||||||
Remaining guaranteed interest and similar contracts | (1,686) | (1,788) | ||||||
Account values of certain investment contracts | (43,545) | (41,164) | ||||||
Short-term debt | (562) | (1,084) | ||||||
Long-term debt | (2,269) | (2,334) | ||||||
Reinsurance related embedded derivatives | (578) | |||||||
Fair Value [Member] | ||||||||
Assets | ||||||||
Trading securities | 3,446 | 4,405 | ||||||
Equity securities | 427 | 371 | ||||||
Mortgage loans on real estate | 16,477 | 18,599 | ||||||
Derivative investments | 3,519 | 5,697 | ||||||
Other investments | 3,577 | 3,435 | ||||||
Cash and invested cash | 2,499 | 2,331 | ||||||
Reinsurance related embedded derivatives | 681 | |||||||
Indexed annuity ceded embedded derivatives | 525 | 528 | ||||||
LPR ceded derivative | 212 | 318 | ||||||
Separate account assets | 143,536 | 182,583 | ||||||
Other contract holder funds: | ||||||||
Remaining guaranteed interest and similar contracts | (1,686) | (1,788) | ||||||
Account values of certain investment contracts | (34,244) | (47,828) | ||||||
Short-term debt | (562) | (1,084) | ||||||
Long-term debt | (2,166) | (2,675) | ||||||
Reinsurance related embedded derivatives | (578) | |||||||
Fixed Maturity AFS Securities [Member] | ||||||||
Assets | ||||||||
Trading securities | 3,446 | 4,405 | ||||||
Fixed Maturity AFS Securities [Member] | Carrying Value [Member] | ||||||||
Assets | ||||||||
Fixed maturity AFS securities | 99,465 | 117,476 | ||||||
Fixed Maturity AFS Securities [Member] | Fair Value [Member] | ||||||||
Assets | ||||||||
Fixed maturity AFS securities | 99,465 | 117,476 | ||||||
GLB Direct Embedded Derivatives [Member] | Carrying Value [Member] | ||||||||
Assets | ||||||||
Other assets - GLB embedded derivatives | 1,697 | 1,967 | ||||||
GLB Direct Embedded Derivatives [Member] | Fair Value [Member] | ||||||||
Assets | ||||||||
Other assets - GLB embedded derivatives | 1,697 | 1,967 | ||||||
GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | ||||||||
Assets | ||||||||
Other assets - GLB embedded derivatives | 29 | 56 | ||||||
GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | ||||||||
Assets | ||||||||
Other assets - GLB embedded derivatives | 29 | 56 | ||||||
Future Contract Benefits [Member] | Carrying Value [Member] | ||||||||
Future contract benefits: | ||||||||
Indexed annuity and IUL contracts embedded derivatives | (4,783) | (6,131) | ||||||
Future Contract Benefits [Member] | Fair Value [Member] | ||||||||
Future contract benefits: | ||||||||
Indexed annuity and IUL contracts embedded derivatives | (4,783) | (6,131) | ||||||
Other Liabilities [Member] | Carrying Value [Member] | ||||||||
Other contract holder funds: | ||||||||
Other liabilities - derivative liabilities | (254) | (281) | ||||||
Other Liabilities [Member] | Fair Value [Member] | ||||||||
Other contract holder funds: | ||||||||
Other liabilities - derivative liabilities | (254) | (281) | ||||||
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | ||||||||
Other contract holder funds: | ||||||||
Other liabilities - GLB embedded derivatives | (1,721) | (2,018) | ||||||
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | ||||||||
Other contract holder funds: | ||||||||
Other liabilities - GLB embedded derivatives | $ (1,721) | $ (2,018) |
Fair Value Of Financial Instr_5
Fair Value Of Financial Instruments (Schedule of Mortgage Loans With Election Of Fair Value Option) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Fair value | $ 487 | $ 495 | $ 528 | $ 537 | $ 739 | $ 792 | $ 818 | $ 874 |
Commercial [Member] | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Fair value | 487 | 739 | ||||||
Aggregate contractual principal | $ 514 | $ 742 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Fair Value Of Assets And Liabilities On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Fair value of plan assets | $ 86 | $ 116 |
Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 259,568 | 320,655 |
Liabilities measured at fair value | (9,773) | (13,086) |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 784 | 1,133 |
Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 248,107 | 305,041 |
Liabilities measured at fair value | (2,666) | (4,809) |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 10,677 | 14,481 |
Liabilities measured at fair value | (7,107) | (8,277) |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 79,166 | 97,423 |
Corporate Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 73,980 | 88,622 |
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 5,186 | 8,801 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 10,899 | 8,506 |
ABS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 9,782 | 7,636 |
ABS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,117 | 870 |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 351 | 400 |
U.S. Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 332 | 395 |
U.S. Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 19 | 5 |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 311 | 423 |
Foreign Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 311 | 382 |
Foreign Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 41 | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,836 | 2,305 |
RMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,835 | 2,302 |
RMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1 | 3 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,667 | 1,590 |
CMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,667 | 1,590 |
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,885 | 6,377 |
State And Municipal Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,850 | 6,377 |
State And Municipal Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 35 | |
Hybrid And Redeemable Preferred Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 350 | |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 452 | |
Hybrid And Redeemable Preferred Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 40 | |
Hybrid And Redeemable Preferred Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 53 | |
Hybrid And Redeemable Preferred Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 261 | |
Hybrid And Redeemable Preferred Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 309 | |
Hybrid And Redeemable Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 49 | |
Hybrid And Redeemable Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 90 | |
Trading Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 3,446 | 4,405 |
Trading Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 32 | |
Trading Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,865 | 3,545 |
Trading Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 581 | 828 |
Equity Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 427 | 371 |
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 7 | |
Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 274 | 273 |
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 153 | 91 |
Mortgage Loans On Real Estate [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 487 | 739 |
Mortgage Loans On Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 487 | 739 |
Derivative Investments [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 6,534 | 9,775 |
Derivative Investments [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 5,929 | 9,626 |
Derivative Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 605 | 149 |
Other Investments [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 30 | 114 |
Other Investments [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 30 | 114 |
Cash And Cash [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,499 | 2,331 |
Cash And Cash [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 2,499 | 2,331 |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,697 | 1,967 |
GLB Direct Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,697 | 1,967 |
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 29 | 56 |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (2,018) | |
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 29 | 56 |
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (2,018) | |
LPR Ceded Derivative [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 212 | 318 |
LPR Ceded Derivative [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 212 | 318 |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 525 | |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (4,783) | (6,131) |
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 525 | |
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Future Contract Benefits [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (4,783) | (6,131) |
Separate Account Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 182,575 | |
Separate Account Assets [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 143,536 | |
Separate Account Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 646 | |
Separate Account Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 412 | |
Separate Account Assets [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 181,929 | |
Separate Account Assets [Member] | Significant Observable Inputs (Level 2) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 143,124 | |
Reinsurance Related Embedded Derivatives [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (578) | |
Reinsurance Related Embedded Derivatives [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 681 | |
Reinsurance Related Embedded Derivatives [Member] | Significant Observable Inputs (Level 2) [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (578) | |
Reinsurance Related Embedded Derivatives [Member] | Significant Observable Inputs (Level 2) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 681 | |
Derivative Liabilities [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (3,269) | (4,359) |
Derivative Liabilities [Member] | Significant Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (2,666) | (4,231) |
Derivative Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (603) | (128) |
GLB Embedded Derivative [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (1,721) | |
GLB Embedded Derivative [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | $ (1,721) | |
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 528 | |
Indexed Annuity Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 528 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | $ 6,204 | $ 8,547 | $ 7,337 |
Items Included in Net Income | 1,605 | (1,314) | 522 |
Gains (Losses) in OCI and Other | (1,693) | (175) | 549 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 495 | 1,859 | (316) |
Transfers Into or Out of Level 3, Net | (3,041) | (2,713) | 455 |
Ending Fair Value | 3,570 | 6,204 | 8,547 |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 8,801 | 7,761 | 6,978 |
Items Included in Net Income | 1 | 3 | (7) |
Gains (Losses) in OCI and Other | (1,542) | (182) | 281 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 592 | 1,189 | 435 |
Transfers Into or Out of Level 3, Net | (2,666) | 30 | 74 |
Ending Fair Value | 5,186 | 8,801 | 7,761 |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 5 | 5 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | (5) | ||
Ending Fair Value | 5 | ||
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 41 | 74 | 90 |
Gains (Losses) in OCI and Other | (6) | (11) | 3 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (30) | 80 | (19) |
Transfers Into or Out of Level 3, Net | (5) | (102) | |
Ending Fair Value | 41 | 74 | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 3 | 2 | 11 |
Items Included in Net Income | |||
Gains (Losses) in OCI and Other | 1 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 21 | 2 | |
Transfers Into or Out of Level 3, Net | (24) | (1) | (9) |
Ending Fair Value | 1 | 3 | 2 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 1 | 1 | |
Items Included in Net Income | (1) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 17 | 8 | |
Transfers Into or Out of Level 3, Net | (17) | (8) | |
Ending Fair Value | 1 | ||
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 870 | 570 | 268 |
Items Included in Net Income | 1 | ||
Gains (Losses) in OCI and Other | (113) | (9) | 10 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 676 | 602 | 495 |
Transfers Into or Out of Level 3, Net | (316) | (294) | (203) |
Ending Fair Value | 1,117 | 870 | 570 |
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Gains (Losses) in OCI and Other | (1) | ||
Transfers Into or Out of Level 3, Net | 36 | ||
Ending Fair Value | 35 | ||
Hybrid And Redeemable Preferred Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 90 | 103 | |
Items Included in Net Income | (4) | ||
Gains (Losses) in OCI and Other | (21) | 25 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | (12) | (38) | |
Transfers Into or Out of Level 3, Net | (4) | ||
Ending Fair Value | 49 | 90 | 103 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 103 | 78 | |
Gains (Losses) in OCI and Other | (2) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 9 | ||
Transfers Into or Out of Level 3, Net | 18 | ||
Ending Fair Value | 103 | ||
Trading Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 828 | 643 | 666 |
Items Included in Net Income | (80) | (3) | 10 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (152) | 210 | (32) |
Transfers Into or Out of Level 3, Net | (15) | (22) | (1) |
Ending Fair Value | 581 | 828 | 643 |
Equity Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 91 | 57 | 30 |
Items Included in Net Income | 52 | 38 | 4 |
Issuances, Sales, Maturities, Settlements, Calls, Net | 25 | (4) | 18 |
Transfers Into or Out of Level 3, Net | (15) | 5 | |
Ending Fair Value | 153 | 91 | 57 |
Mortgage Loans On Real Estate [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 739 | 832 | |
Items Included in Net Income | (20) | 11 | (1) |
Gains (Losses) in OCI and Other | (5) | 5 | (10) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (227) | (109) | 56 |
Transfers Into or Out of Level 3, Net | 787 | ||
Ending Fair Value | 487 | 739 | 832 |
Derivative Investments [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 21 | 1,542 | 868 |
Items Included in Net Income | 2 | 1,255 | 986 |
Gains (Losses) in OCI and Other | (6) | (3) | 267 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (139) | (363) | |
Transfers Into or Out of Level 3, Net | (15) | (2,634) | (216) |
Ending Fair Value | 2 | 21 | 1,542 |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 1,967 | 450 | 450 |
Items Included in Net Income | (270) | 1,517 | |
Ending Fair Value | 1,697 | 1,967 | 450 |
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | (531) | (510) | |
Items Included in Net Income | (21) | ||
Ending Fair Value | (531) | ||
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 56 | 82 | 60 |
Items Included in Net Income | (27) | (26) | 22 |
Ending Fair Value | 29 | 56 | 82 |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | (2,018) | (531) | |
Items Included in Net Income | 297 | (1,487) | |
Ending Fair Value | (1,721) | (2,018) | (531) |
Indexed Annuity Ceded Embedded Derivatives [Member] | Other Assets [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 528 | 550 | |
Items Included in Net Income | (215) | 87 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | 212 | (109) | |
Ending Fair Value | 525 | 528 | 550 |
LPR Ceded Derivative [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 318 | ||
Transfers Into or Out of Level 3, Net | 318 | ||
Ending Fair Value | 318 | ||
LPR Ceded Derivative [Member] | Other Assets [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 318 | ||
Items Included in Net Income | (106) | ||
Ending Fair Value | 212 | 318 | |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 550 | 927 | |
Items Included in Net Income | 538 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | (915) | ||
Ending Fair Value | 550 | ||
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | (6,131) | (3,594) | (2,585) |
Items Included in Net Income | 1,975 | (2,709) | (1,009) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (627) | 172 | |
Ending Fair Value | $ (4,783) | $ (6,131) | $ (3,594) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | $ 2,041 | $ 3,112 | $ 2,359 |
Sales | (636) | (390) | (877) |
Maturities | (111) | (329) | (573) |
Settlements | (747) | (474) | (1,093) |
Calls | (52) | (60) | (132) |
Total | 495 | 1,859 | (316) |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 1,335 | 1,861 | 1,123 |
Sales | (398) | (110) | (318) |
Maturities | (81) | (109) | (43) |
Settlements | (231) | (423) | (195) |
Calls | (33) | (30) | (132) |
Total | 592 | 1,189 | 435 |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Maturities | (5) | ||
Total | (5) | ||
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 80 | ||
Maturities | (30) | (19) | |
Total | (30) | 80 | (19) |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 21 | 2 | |
Total | 21 | 2 | |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 17 | 8 | |
Total | 17 | 8 | |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 918 | 835 | 571 |
Settlements | (235) | (233) | (76) |
Calls | (7) | ||
Total | 676 | 602 | 495 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 12 | 13 | |
Sales | (20) | (4) | |
Calls | (12) | (30) | |
Total | (12) | (38) | 9 |
Mortgage Loans On Real Estate [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 15 | 96 | 71 |
Sales | (101) | (15) | |
Maturities | (26) | ||
Settlements | (242) | (78) | |
Total | (227) | (109) | 56 |
Trading Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 287 | 383 | 300 |
Sales | (229) | (25) | (126) |
Maturities | (40) | ||
Settlements | (210) | (148) | (166) |
Total | (152) | 210 | (32) |
Equity Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 34 | 6 | 20 |
Sales | (9) | (10) | (2) |
Total | 25 | (4) | 18 |
Derivative Investments [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 174 | 520 | |
Sales | (124) | (412) | |
Maturities | (189) | (471) | |
Total | (139) | (363) | |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 124 | 55 | 25 |
Settlements | 88 | (164) | (940) |
Total | 212 | (109) | (915) |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | (710) | (400) | (284) |
Settlements | 83 | 572 | $ 284 |
Total | $ (627) | $ 172 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments (Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Trading Securities [Member] | Realized Gain (Loss) [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | $ (81) | $ 4 | |
Equity Securities [Member] | Realized Gain (Loss) [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | 54 | 40 | |
Mortgage Loans On Real Estate [Member] | Realized Gain (Loss) [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | (20) | 12 | |
Derivative Investments [Member] | Realized Gain (Loss) [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | 2 | 1,051 | $ 536 |
Indexed Annuity And IUL Contracts [Member] | Realized Gain (Loss) [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | (95) | 44 | 634 |
LPR Ceded Derivative [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | (106) | ||
Other Assets [Member] | GLB Direct And Ceded [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | 486 | 2,315 | 671 |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Realized Gain (Loss) [Member] | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | |||
Change in unrealized gains (losses) included in net income | $ (483) | $ (2,310) | $ (671) |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments (Changes in Unrealized Gains (Losses) Included in OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | $ (1,702) | $ (172) | $ 66 |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | (1,553) | (183) | 60 |
Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | (7) | (10) | 4 |
Fixed Maturity AFS Securities [Member] | ABS [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | (115) | (9) | 5 |
Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | (21) | 26 | $ (3) |
Fixed Maturity AFS Securities [Member] | Mortgage Loans On Real Estate [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | (5) | $ 4 | |
Fixed Maturity AFS Securities [Member] | State And Municipal Bonds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |||
Unrealized gains (losses) included in OCI, net | $ (1) |
Fair Value of Financial Inst_11
Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | $ 352 | $ 554 | $ 1,102 |
Transfers Out of Level 3 | (3,393) | (3,267) | (647) |
Total | (3,041) | (2,713) | 455 |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 296 | 164 | 290 |
Transfers Out of Level 3 | (2,962) | (134) | (216) |
Total | (2,666) | 30 | 74 |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (5) | (102) | |
Total | (5) | (102) | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 1 | ||
Transfers Out of Level 3 | (24) | (1) | (10) |
Total | (24) | (1) | (9) |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (17) | (8) | |
Total | (17) | (8) | |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 16 | 36 | |
Transfers Out of Level 3 | (332) | (330) | (203) |
Total | (316) | (294) | (203) |
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 36 | ||
Total | 36 | ||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 18 | ||
Transfers Out of Level 3 | (4) | ||
Total | (4) | 18 | |
Mortgage Loans On Real Estate [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 787 | ||
Total | 787 | ||
Trading Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 4 | 12 | 1 |
Transfers Out of Level 3 | (19) | (34) | (2) |
Total | (15) | (22) | (1) |
Equity Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 5 | ||
Transfers Out of Level 3 | (15) | ||
Total | (15) | 5 | |
Derivative Investments [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 24 | ||
Transfers Out of Level 3 | (15) | (2,658) | (216) |
Total | $ (15) | (2,634) | $ (216) |
LPR Ceded Derivative [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 318 | ||
Total | $ 318 |
Fair Value of Financial Inst_12
Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) - Significant Unobservable Inputs (Level 3) [Member] - Discounted Cash Flow Valuation Technique [Member] $ in Millions | Dec. 31, 2022 USD ($) item |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 201 |
Corporate Bonds [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | (0.002) |
Corporate Bonds [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.042 |
Corporate Bonds [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.021 |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 35 |
Foreign Government Bonds [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.012 |
Foreign Government Bonds [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.024 |
Foreign Government Bonds [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.023 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 15 |
ABS [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 1.4 |
ABS [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 1.4 |
ABS [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 1.4 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 3 |
Hybrid And Redeemable Preferred Securities [Member] | Minimum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.015 |
Hybrid And Redeemable Preferred Securities [Member] | Maximum [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.015 |
Hybrid And Redeemable Preferred Securities [Member] | Weighted Average [Member] | Fixed Maturity AFS Securities [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Fixed maturity AFS and trading securities, measurement input | 0.015 |
Equity Securities [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 4 |
Equity Securities [Member] | Minimum [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Equity securities, measurement input | 0.045 |
Equity Securities [Member] | Maximum [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Equity securities, measurement input | 0.045 |
Equity Securities [Member] | Weighted Average [Member] | Liquidity/Duration Adjustment [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Equity securities, measurement input | 0.045 |
Indexed Annuity Ceded Embedded Derivatives [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 525 |
Indexed Annuity Ceded Embedded Derivatives [Member] | Minimum [Member] | Long-term Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0 |
Indexed Annuity Ceded Embedded Derivatives [Member] | Maximum [Member] | Long-term Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.09 |
GLB Direct And Ceded Embedded Derivatives [Member] | Other Assets [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 1,726 |
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.01 |
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.85 |
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Measurement Input, Utilization Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.60 |
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.80 |
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0035 |
GLB Direct And Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Assets [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.01 |
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Long-term Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.30 |
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 1 |
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Measurement Input, Utilization Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 1 |
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 1.15 |
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0241 |
GLB Direct And Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Assets [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.28 |
GLB Direct And Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.94 |
GLB Direct And Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0173 |
GLB Direct And Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.1447 |
LPR Ceded Derivative [Member] | |
Assets Fair Value Disclosure [Abstract] | |
Assets Fair Value Disclosure | $ | $ 212 |
LPR Ceded Derivative [Member] | Minimum [Member] | Long-term Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0 |
LPR Ceded Derivative [Member] | Minimum [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0035 |
LPR Ceded Derivative [Member] | Maximum [Member] | Long-term Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0155 |
LPR Ceded Derivative [Member] | Maximum [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0241 |
LPR Ceded Derivative [Member] | Weighted Average [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative assets, measurement input | 0.0175 |
Indexed Annuity Embedded Derivatives [Member] | Future Contract Benefits [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Liabilities measured at fair value | $ | $ (4,845) |
Indexed Annuity Embedded Derivatives [Member] | Minimum [Member] | Future Contract Benefits [Member] | Long-term Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0 |
Indexed Annuity Embedded Derivatives [Member] | Maximum [Member] | Future Contract Benefits [Member] | Long-term Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.09 |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Liabilities measured at fair value | $ | $ (1,721) |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Long-term Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.01 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.85 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.60 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.80 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.0035 |
GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.01 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Long-term Lapse Rate [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.30 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 1 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 1 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 1.15 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.0241 |
GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.28 |
GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.94 |
GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | NPR [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.0173 |
GLB Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Liabilities [Member] | Volatility [Member] | |
Liabilities Fair Value Disclosure [Abstract] | |
Derivative liability, measurement input | 0.1447 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 4,299 | $ 4,357 | $ 4,433 | $ 4,681 | $ 5,187 | $ 4,907 | $ 4,446 | $ 4,688 | $ 17,770 | $ 19,228 | $ 16,566 |
Excluded Realized Gain (Loss), Pre-Tax [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 8 | 504 | (742) | ||||||||
Amortization of DFEL associated with benefit ratio unlocking, pre-tax [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 2 | ||||||||||
Life Insurance Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 6,694 | 7,700 | 7,086 | ||||||||
Annuities Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 4,372 | 4,565 | 4,067 | ||||||||
Group Protection Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 5,303 | 4,994 | 4,792 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1,258 | 1,307 | 1,197 | ||||||||
Other Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 133 | $ 158 | $ 166 |
Segment Information (Reconcil_2
Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | $ 105 | $ (2,289) | $ 443 | $ 458 | $ 816 | $ 369 | $ 466 | $ 457 | $ 900 | $ 923 | $ (1,389) | $ 1,292 | $ (1,285) | $ 2,109 | $ 591 |
Life Insurance Segment [Member] | |||||||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | (1,841) | 530 | (12) | ||||||||||||
Annuities Segment [Member] | |||||||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | 1,308 | 1,325 | 1,125 | ||||||||||||
Group Protection Segment [Member] | |||||||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | 101 | (128) | 42 | ||||||||||||
Retirement Plan Services Segment [Member] | |||||||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | 198 | 223 | 157 | ||||||||||||
Other Operations [Member] | |||||||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | (376) | (242) | (161) | ||||||||||||
Excluded Realized Gain (Loss), After-Tax [Member] | |||||||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | 6 | 397 | (586) | ||||||||||||
Benefit Ratio Unlocking, After-Tax [Member] | |||||||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | (47) | 15 | 4 | ||||||||||||
Impairment of Intangibles [Member] | |||||||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | $ (634) | ||||||||||||||
Net Impact From Tax Cuts And Jobs Act [Member] | |||||||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | 37 | ||||||||||||||
Acquisition And Integration Costs Related To Mergers And Acquisitions, After-Tax [Member] | |||||||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||||||
Net income (loss) | $ (11) | $ (15) |
Segment Information (Reconcil_3
Segment Information (Reconciliation of Net Investment Income From Segments to Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Income [Abstract] | |||||||||||
Total net investment income | $ 1,343 | $ 1,241 | $ 1,338 | $ 1,352 | $ 1,374 | $ 1,510 | $ 1,509 | $ 1,446 | $ 5,274 | $ 5,839 | $ 5,264 |
Life Insurance Segment [Member] | |||||||||||
Net Investment Income [Abstract] | |||||||||||
Total net investment income | 2,464 | 3,054 | 2,689 | ||||||||
Annuities Segment [Member] | |||||||||||
Net Investment Income [Abstract] | |||||||||||
Total net investment income | 1,386 | 1,314 | 1,192 | ||||||||
Group Protection Segment [Member] | |||||||||||
Net Investment Income [Abstract] | |||||||||||
Total net investment income | 333 | 364 | 329 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Net Investment Income [Abstract] | |||||||||||
Total net investment income | 966 | 982 | 924 | ||||||||
Other Operations [Member] | |||||||||||
Net Investment Income [Abstract] | |||||||||||
Total net investment income | $ 125 | $ 125 | $ 130 |
Segment Information (Reconcil_4
Segment Information (Reconciliation of DAC VOBA Amortization From Segments to Consolidated) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | $ 909 | $ 1,600 | $ 1,286 |
Life Insurance Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 537 | 1,029 | 768 |
Annuities Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 249 | 433 | 376 |
Group Protection Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 106 | 107 | 114 |
Retirement Plan Services Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | $ 17 | $ 31 | $ 28 |
Segment Information (Reconcil_5
Segment Information (Reconciliation of Federal Income Tax Expense (Benefit) From Segments to Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||||||||||
Income tax expense (benefit) | $ (14) | $ (488) | $ 86 | $ 82 | $ 176 | $ 65 | $ 83 | $ 97 | $ (332) | $ 420 | $ (56) |
Annuities Segment [Member] | |||||||||||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||||||||||
Income tax expense (benefit) | 224 | 252 | 187 | ||||||||
Life Insurance Segment [Member] | |||||||||||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||||||||||
Income tax expense (benefit) | (520) | 120 | (28) | ||||||||
Group Protection Segment [Member] | |||||||||||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||||||||||
Income tax expense (benefit) | 28 | (34) | 11 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||||||||||
Income tax expense (benefit) | 32 | 46 | 21 | ||||||||
Other Operations [Member] | |||||||||||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||||||||||
Income tax expense (benefit) | (85) | (70) | (51) | ||||||||
Excluded Realized Gain (Loss), After-Tax [Member] | |||||||||||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||||||||||
Income tax expense (benefit) | 2 | 107 | (155) | ||||||||
Benefit Ratio Unlocking, After-Tax [Member] | |||||||||||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||||||||||
Income tax expense (benefit) | (12) | 4 | 1 | ||||||||
Net Impact From Tax Cuts And Jobs Act [Member] | |||||||||||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||||||||||
Income tax expense (benefit) | (37) | ||||||||||
Acquisition And Integration Costs Related To Mergers And Acquisitions, After-Tax [Member] | |||||||||||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||||||||||
Income tax expense (benefit) | $ (1) | $ (5) | $ (5) |
Segment Information (Reconcil_6
Segment Information (Reconciliation of Assets From Segments to Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||||||||
Total assets | $ 338,266 | $ 329,220 | $ 340,135 | $ 370,241 | $ 391,518 | $ 381,498 | $ 383,666 | $ 369,852 |
Life Insurance Segment [Member] | ||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||||||||
Total assets | 98,540 | 106,977 | ||||||
Annuities Segment [Member] | ||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||||||||
Total assets | 166,261 | 200,833 | ||||||
Group Protection Segment [Member] | ||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||||||||
Total assets | 9,802 | 10,519 | ||||||
Retirement Plan Services Segment [Member] | ||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||||||||
Total assets | 41,909 | 47,633 | ||||||
Other Operations [Member] | ||||||||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ||||||||
Total assets | $ 21,754 | $ 25,556 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |||
Interest paid | $ 126 | $ 115 | $ 127 |
Income taxes paid (received) | (61) | 29 | 78 |
Significant non-cash investing and financing transactions: | |||
Equity securities received in exchange of fixed maturity AFS securities | 17 | ||
Net increase (decrease) in fixed maturity AFS securities and accrued investment income in connection with reinsurance transactions | $ 54 | $ (3,700) | $ 58 |
Transactions With Affiliates (N
Transactions With Affiliates (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transactions With Affiliates [Abstract] | ||
Borrowing and lending limit, percent of admitted assets | 3% | |
Line of credit beneficiary amount | $ 1,500 | $ 1 |
Transactions With Affiliates (B
Transactions With Affiliates (Balance Sheet Transactions With Affiliates) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Inter-Company Interest Receivable [Member] | Accrued Investment Income [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | $ 13 | $ 11 |
Accrued Inter-Company Interest Receivable [Member] | Other Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 15 | 4 |
Ceded Reinsurance Contracts [Member] | Deferred Acquisition Costs And Value Of Business Acquired [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | (67) | (150) |
Ceded Reinsurance Contracts [Member] | Reinsurance Recoverables [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 4,388 | 2,867 |
Ceded Reinsurance Contracts [Member] | Other Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 676 | 529 |
Ceded Reinsurance Contracts [Member] | Other Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 4,421 | 7,467 |
Ceded Reinsurance Contracts [Member] | Other Contract Holder Funds [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | (7) | (37) |
Cash Management Agreement [Member] | Other Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 124 | 3,854 |
Service Agreement [Member] | Other Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 6 | 64 |
Service Agreement [Member] | Other Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 41 | 35 |
Assumed Reinsurance Contracts [Member] | Future Contract Benefits [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 16 | 21 |
Assumed Reinsurance Contracts [Member] | Other Contract Holder Funds [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 361 | 364 |
Inter-Company Debt [Member] | Fixed Maturity AFS Securities [Member] | ||
Related Party Transaction [Line Items] | ||
Assets | 1,216 | 1,474 |
Inter-Company Debt [Member] | Short-term Debt [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | 562 | 1,084 |
Inter-Company Debt [Member] | Long-term Debt [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | $ 2,269 | $ 2,334 |
Transactions With Affiliates (C
Transactions With Affiliates (Comprehensive Income (Loss) Transactions With Affiliates) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||||||||||||
Insurance premiums | $ 1,503 | $ 1,496 | $ 1,436 | $ 1,406 | $ 1,360 | $ 1,341 | $ 1,334 | $ 1,324 | $ 5,841 | $ 5,359 | $ 5,122 | ||||
Net investment income | 1,343 | 1,241 | 1,338 | 1,352 | 1,374 | 1,510 | 1,509 | 1,446 | 5,274 | 5,839 | 5,264 | ||||
Realized gain (loss) | (124) | 11 | 70 | 257 | 700 | (32) | (169) | 212 | $ 327 | $ 43 | $ 338 | $ 11 | 214 | 711 | (526) |
Amortization of deferred gain on business sold through reinsurance | 8 | 9 | 10 | 10 | 10 | 8 | 7 | 7 | $ 20 | $ 14 | $ 29 | $ 22 | 37 | 32 | 33 |
Interest credited | 740 | 717 | 701 | 691 | 691 | 742 | 740 | 738 | 2,849 | 2,911 | 2,899 | ||||
Benefits | 2,053 | 4,498 | 2,051 | 2,199 | 2,169 | 1,839 | 1,848 | 2,183 | 10,801 | 8,039 | 8,050 | ||||
Interest and debt expense | $ 41 | $ 36 | $ 31 | $ 29 | $ 28 | $ 29 | $ 28 | $ 29 | 137 | 114 | 125 | ||||
Premiums Received On Assumed (Paid On Ceded) Reinsurance Contract [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Insurance premiums | (449) | (463) | (439) | ||||||||||||
Fees For Management Of General Account [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Net investment income | (140) | (138) | (140) | ||||||||||||
Net Investment Income On Ceded Funds Withheld Treaties [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Net investment income | (161) | (113) | (119) | ||||||||||||
Ceded Reinsurance Contracts [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Benefits | (1,715) | (443) | (585) | ||||||||||||
Commissions And Other Expenses | (86) | (1) | |||||||||||||
Ceded Reinsurance Contracts [Member] | Reinsurance Related Embedded Derivatives [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Realized gain (loss) | (1,068) | 1,626 | 193 | ||||||||||||
Ceded Reinsurance Contracts [Member] | GLB Reserves Embedded Derivative [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Realized gain (loss) | 282 | (1,305) | (30) | ||||||||||||
Ceded Reinsurance Contracts [Member] | Other Gains (Losses) [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Realized gain (loss) | 631 | 94 | (175) | ||||||||||||
Service Agreement [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Commissions And Other Expenses | (53) | (29) | (17) | ||||||||||||
Assumed Reinsurance Contracts [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Interest credited | 47 | 48 | 45 | ||||||||||||
Inter-Company Debt [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Net investment income | 40 | 29 | 40 | ||||||||||||
Interest and debt expense | 120 | 107 | 116 | ||||||||||||
Amortization Of Deferred Gain On Business Sold Through Reinsurance, Pre-Tax [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Amortization of deferred gain on business sold through reinsurance | $ 3 | $ 3 | $ 3 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||||||||||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $110,944; 2021 - $104,491; allowance for credit losses: 2022 - $21; 2021 - $19) | $ 99,465 | $ 97,391 | $ 102,954 | $ 109,889 | $ 117,476 | $ 120,794 | $ 120,452 | $ 115,695 | ||
Trading securities | 3,446 | 3,527 | 3,760 | 4,313 | 4,405 | 4,114 | 4,154 | 4,287 | ||
Equity securities | 427 | 427 | 412 | 393 | 371 | 260 | 191 | 142 | ||
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $487; 2021 - $739) | 18,211 | 17,975 | 17,830 | 17,795 | 17,893 | 17,633 | 17,487 | 17,159 | ||
Policy loans | 2,345 | 2,333 | 2,355 | 2,325 | 2,349 | 2,364 | 2,395 | 2,487 | ||
Derivative investments | 3,519 | 3,398 | 3,167 | 4,574 | 5,697 | 5,075 | 4,729 | 3,482 | ||
Other investments | 3,577 | 3,620 | 3,782 | 3,521 | 3,445 | 3,302 | 3,221 | 3,023 | ||
Total investments | 130,990 | 128,671 | 134,260 | 142,810 | 151,636 | 153,542 | 152,629 | 146,275 | ||
Cash and invested cash | 2,499 | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | $ 1,462 | $ 1,879 |
Deferred acquisition costs and value of business acquired | 13,615 | 13,765 | 11,832 | 8,689 | 5,986 | 5,918 | 6,207 | 7,606 | 5,824 | |
Accrued investment income | 1,234 | 1,238 | 1,196 | 1,209 | 1,157 | 1,251 | 1,215 | 1,255 | ||
Reinsurance recoverables, net of allowance for credit losses | 23,910 | 24,256 | 23,554 | 22,870 | 22,755 | 18,207 | 18,257 | 18,583 | ||
Goodwill | 1,144 | 1,144 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | |
Other assets | 21,338 | 21,560 | 20,447 | 22,284 | 23,292 | 22,941 | 22,871 | 21,930 | ||
Separate account assets | 143,536 | 137,295 | 145,791 | 168,879 | 182,583 | 175,667 | 178,795 | 171,339 | ||
Total assets | 338,266 | 329,220 | 340,135 | 370,241 | 391,518 | 381,498 | 383,666 | 369,852 | ||
Liabilities | ||||||||||
Future contract benefits | 41,598 | 41,162 | 38,735 | 39,186 | 40,416 | 40,016 | 39,621 | 38,941 | ||
Other contract holder funds | 120,360 | 117,756 | 114,652 | 112,399 | 111,183 | 108,765 | 108,249 | 106,461 | ||
Short-term debt | 562 | 771 | 698 | 737 | 1,084 | 483 | 457 | 568 | ||
Long-term debt | 2,269 | 2,267 | 2,267 | 2,311 | 2,334 | 2,333 | 2,332 | 2,332 | ||
Payables for collateral on investments | 6,638 | 6,855 | 7,525 | 8,905 | 8,936 | 8,378 | 8,192 | 7,593 | ||
Other liabilities | 15,037 | 16,635 | 17,378 | 19,524 | 22,122 | 22,308 | 21,934 | 20,415 | ||
Separate account liabilities | 143,536 | 137,295 | 145,791 | 168,879 | 182,583 | 175,667 | 178,795 | 171,339 | ||
Total liabilities | 330,000 | 322,741 | 327,046 | 351,941 | 368,658 | 357,950 | 359,580 | 347,649 | ||
Contingencies and Commitments (See Note 13) | ||||||||||
Stockholder’s Equity | ||||||||||
Common stock – 10,000,000 shares authorized, issued and outstanding | 12,903 | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | ||
Retained earnings | 2,436 | 2,398 | 4,962 | 4,799 | 4,366 | 4,664 | 4,595 | 4,444 | ||
Accumulated other comprehensive income (loss) | (7,073) | (8,033) | (3,893) | 1,553 | 6,544 | 6,944 | 7,561 | 5,840 | ||
Total stockholder’s equity | 8,266 | 6,479 | 13,089 | 18,300 | 22,860 | 23,548 | 24,086 | 22,203 | 25,041 | |
Total liabilities and stockholder’s equity | 338,266 | 329,220 | 340,135 | 370,241 | 391,518 | 381,498 | 383,666 | 369,852 | ||
As Previously Reported [Member] | ||||||||||
Investments: | ||||||||||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $110,944; 2021 - $104,491; allowance for credit losses: 2022 - $21; 2021 - $19) | 99,465 | 97,391 | 103,002 | 109,921 | 117,511 | 120,794 | 120,452 | 115,695 | ||
Trading securities | 3,446 | 3,527 | 3,778 | 4,334 | 4,427 | 4,135 | 4,175 | 4,308 | ||
Equity securities | 427 | 427 | 345 | 340 | 314 | 239 | 170 | 121 | ||
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2022 - $487; 2021 - $739) | 18,211 | 17,975 | 17,830 | 17,795 | 17,893 | 17,633 | 17,487 | 17,159 | ||
Policy loans | 2,345 | 2,333 | 2,355 | 2,325 | 2,349 | 2,364 | 2,395 | 2,487 | ||
Derivative investments | 3,662 | 3,624 | 3,370 | 4,840 | 5,437 | 4,828 | 4,547 | 3,453 | ||
Other investments | 3,577 | 3,627 | 3,758 | 3,527 | 3,449 | 3,305 | 3,223 | 3,024 | ||
Total investments | 131,133 | 128,904 | 134,438 | 143,082 | 151,380 | 153,298 | 152,449 | 146,247 | ||
Cash and invested cash | 2,499 | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | $ 1,462 | |
Deferred acquisition costs and value of business acquired | 13,615 | 13,757 | 11,832 | 8,688 | 5,985 | 5,917 | 6,207 | 7,606 | ||
Accrued investment income | 1,234 | 1,238 | 1,196 | 1,209 | 1,157 | 1,251 | 1,215 | 1,255 | ||
Reinsurance recoverables, net of allowance for credit losses | 23,910 | 24,256 | 23,554 | 22,870 | 22,755 | 18,207 | 18,257 | 18,583 | ||
Goodwill | 1,144 | 1,144 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | 1,778 | ||
Other assets | 21,523 | 21,848 | 20,569 | 22,490 | 24,046 | 23,564 | 23,513 | 22,344 | ||
Separate account assets | 143,536 | 137,295 | 145,791 | 168,879 | 182,583 | 175,667 | 178,795 | 171,339 | ||
Total assets | 338,594 | 329,733 | 340,435 | 370,718 | 392,015 | 381,876 | 384,128 | 370,238 | ||
Liabilities | ||||||||||
Future contract benefits | 41,598 | 41,162 | 38,735 | 39,186 | 40,416 | 40,016 | 39,620 | 38,940 | ||
Other contract holder funds | 120,360 | 117,729 | 114,634 | 112,387 | 111,174 | 108,762 | 108,249 | 106,461 | ||
Short-term debt | 562 | 771 | 698 | 737 | 1,084 | 483 | 457 | 568 | ||
Long-term debt | 2,269 | 2,267 | 2,267 | 2,311 | 2,334 | 2,333 | 2,332 | 2,332 | ||
Payables for collateral on investments | 6,638 | 6,855 | 7,525 | 8,905 | 8,936 | 8,378 | 8,192 | 7,593 | ||
Other liabilities | 15,833 | 17,629 | 18,158 | 20,484 | 23,108 | 22,683 | 22,394 | 20,795 | ||
Separate account liabilities | 143,536 | 137,295 | 145,791 | 168,879 | 182,583 | 175,667 | 178,795 | 171,339 | ||
Total liabilities | 330,796 | 323,708 | 327,808 | 352,889 | 369,635 | 358,322 | 360,039 | 348,028 | ||
Contingencies and Commitments (See Note 13) | ||||||||||
Stockholder’s Equity | ||||||||||
Common stock – 10,000,000 shares authorized, issued and outstanding | 12,903 | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | ||
Retained earnings | 1,968 | 1,944 | 4,506 | 4,330 | 3,886 | 4,670 | 4,598 | 4,451 | ||
Accumulated other comprehensive income (loss) | (7,073) | (8,033) | (3,899) | 1,551 | 6,544 | 6,944 | 7,561 | 5,840 | ||
Total stockholder’s equity | 7,798 | 6,025 | 12,627 | 17,829 | 22,380 | 23,554 | 24,089 | 22,210 | ||
Total liabilities and stockholder’s equity | 338,594 | 329,733 | 340,435 | 370,718 | 392,015 | 381,876 | 384,128 | 370,238 | ||
Restatement Impacts [Member] | ||||||||||
Investments: | ||||||||||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2022 - $110,944; 2021 - $104,491; allowance for credit losses: 2022 - $21; 2021 - $19) | (48) | (32) | (35) | |||||||
Trading securities | (18) | (21) | (22) | (21) | (21) | (21) | ||||
Equity securities | 67 | 53 | 57 | 21 | 21 | 21 | ||||
Derivative investments | (143) | (226) | (203) | (266) | 260 | 247 | 182 | 29 | ||
Other investments | (7) | 24 | (6) | (4) | (3) | (2) | (1) | |||
Total investments | (143) | (233) | (178) | (272) | 256 | 244 | 180 | 28 | ||
Deferred acquisition costs and value of business acquired | 8 | 1 | 1 | 1 | ||||||
Other assets | (185) | (288) | (122) | (206) | (754) | (623) | (642) | (414) | ||
Total assets | (328) | (513) | (300) | (477) | (497) | (378) | (462) | (386) | ||
Liabilities | ||||||||||
Future contract benefits | 1 | 1 | ||||||||
Other contract holder funds | 27 | 18 | 12 | 9 | 3 | |||||
Other liabilities | (796) | (994) | (780) | (960) | (986) | (375) | (460) | (380) | ||
Total liabilities | (796) | (967) | (762) | (948) | (977) | (372) | (459) | (379) | ||
Contingencies and Commitments (See Note 13) | ||||||||||
Stockholder’s Equity | ||||||||||
Retained earnings | 468 | 454 | 456 | 469 | 480 | (6) | (3) | (7) | ||
Accumulated other comprehensive income (loss) | 6 | 2 | ||||||||
Total stockholder’s equity | 468 | 454 | 462 | 471 | 480 | (6) | (3) | (7) | ||
Total liabilities and stockholder’s equity | $ (328) | $ (513) | $ (300) | $ (477) | $ (497) | $ (378) | $ (462) | $ (386) |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Balance Sheet II) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale securities, at fair value: | |||||||||
Fixed maturity available-for-sale securities (amortized cost) | $ 110,944 | $ 110,323 | $ 108,963 | $ 106,939 | $ 104,491 | $ 106,752 | $ 105,530 | $ 104,684 | |
Fixed maturity, ACL | 21 | 18 | 12 | 20 | 19 | 17 | 9 | 14 | $ 13 |
Mortgage loans on real estate, fair value | $ 487 | $ 495 | $ 528 | $ 537 | $ 739 | $ 792 | $ 818 | $ 874 | |
Stockholder’s Equity | |||||||||
Common stock - shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |
Common stock - shares issued (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |
Common stock - shares outstanding (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 |
Quarterly Results of Operatio_5
Quarterly Results of Operations (Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||||||||||||||
Insurance premiums | $ 1,503 | $ 1,496 | $ 1,436 | $ 1,406 | $ 1,360 | $ 1,341 | $ 1,334 | $ 1,324 | $ 5,841 | $ 5,359 | $ 5,122 | ||||
Fee income | 1,397 | 1,438 | 1,446 | 1,502 | 1,567 | 1,931 | 1,603 | 1,529 | 5,783 | 6,630 | 6,120 | ||||
Net investment income | 1,343 | 1,241 | 1,338 | 1,352 | 1,374 | 1,510 | 1,509 | 1,446 | 5,274 | 5,839 | 5,264 | ||||
Realized gain (loss) | (124) | 11 | 70 | 257 | 700 | (32) | (169) | 212 | $ 327 | $ 43 | $ 338 | $ 11 | 214 | 711 | (526) |
Amortization of deferred gain (loss) on business sold through reinsurance | 8 | 9 | 10 | 10 | 10 | 8 | 7 | 7 | 20 | 14 | 29 | 22 | 37 | 32 | 33 |
Other revenues | 172 | 162 | 133 | 154 | 176 | 149 | 162 | 170 | 621 | 657 | 553 | ||||
Total revenues | 4,299 | 4,357 | 4,433 | 4,681 | 5,187 | 4,907 | 4,446 | 4,688 | 17,770 | 19,228 | 16,566 | ||||
Expenses | |||||||||||||||
Interest credited | 740 | 717 | 701 | 691 | 691 | 742 | 740 | 738 | 2,849 | 2,911 | 2,899 | ||||
Benefits | 2,053 | 4,498 | 2,051 | 2,199 | 2,169 | 1,839 | 1,848 | 2,183 | 10,801 | 8,039 | 8,050 | ||||
Commissions and other expenses | 1,326 | 1,205 | 1,077 | 1,191 | 1,276 | 1,841 | 1,260 | 1,171 | 4,799 | 5,548 | 4,889 | ||||
Interest and debt expense | 41 | 36 | 31 | 29 | 28 | 29 | 28 | 29 | 137 | 114 | 125 | ||||
Spark program expense | 48 | 44 | 44 | 31 | 31 | 22 | 21 | 13 | 167 | 87 | 68 | ||||
Impairment of intangibles | 634 | 634 | 634 | ||||||||||||
Total expenses | 4,208 | 7,134 | 3,904 | 4,141 | 4,195 | 4,473 | 3,897 | 4,134 | 19,387 | 16,699 | 16,031 | ||||
Income (loss) before taxes | 91 | (2,777) | 529 | 540 | 992 | 434 | 549 | 554 | (1,617) | 2,529 | 535 | ||||
Federal income tax expense (benefit) | (14) | (488) | 86 | 82 | 176 | 65 | 83 | 97 | (332) | 420 | (56) | ||||
Net income (loss) | 105 | (2,289) | 443 | 458 | 816 | 369 | 466 | 457 | 900 | 923 | (1,389) | 1,292 | (1,285) | 2,109 | 591 |
Other comprehensive income (loss), net of tax | 960 | (4,140) | (5,446) | (4,991) | (400) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | 3,185 | ||||
Comprehensive income (loss) | 1,065 | (6,429) | (5,003) | (4,533) | 416 | (248) | 2,187 | (2,724) | (14,902) | (368) | $ 3,776 | ||||
As Previously Reported [Member] | |||||||||||||||
Revenues | |||||||||||||||
Insurance premiums | 1,503 | 1,496 | 1,436 | 1,406 | 1,360 | 1,341 | 1,328 | 1,330 | 5,841 | 5,359 | |||||
Fee income | 1,397 | 1,438 | 1,446 | 1,502 | 1,561 | 1,927 | 1,600 | 1,524 | 5,783 | 6,612 | |||||
Net investment income | 1,336 | 1,272 | 1,309 | 1,353 | 1,376 | 1,511 | 1,510 | 1,447 | 5,270 | 5,844 | |||||
Realized gain (loss) | (152) | 5 | 82 | 266 | 74 | (24) | (172) | 211 | 347 | 39 | 353 | 16 | 201 | 89 | |
Amortization of deferred gain (loss) on business sold through reinsurance | 16 | 17 | 18 | 18 | 18 | 8 | 7 | 7 | 35 | 14 | 52 | 22 | 69 | 40 | |
Other revenues | 172 | 135 | 163 | 151 | 176 | 149 | 162 | 170 | 621 | 657 | |||||
Total revenues | 4,272 | 4,363 | 4,454 | 4,696 | 4,565 | 4,912 | 4,435 | 4,689 | 17,785 | 18,601 | |||||
Expenses | |||||||||||||||
Interest credited | 740 | 717 | 701 | 691 | 686 | 744 | 732 | 731 | 2,849 | 2,893 | |||||
Benefits | 2,053 | 4,498 | 2,051 | 2,199 | 2,169 | 1,840 | 1,848 | 2,182 | 10,801 | 8,039 | |||||
Commissions and other expenses | 1,318 | 1,208 | 1,081 | 1,192 | 1,274 | 1,839 | 1,262 | 1,171 | 4,799 | 5,546 | |||||
Interest and debt expense | 41 | 36 | 31 | 29 | 28 | 29 | 28 | 29 | 137 | 114 | |||||
Spark program expense | 48 | 44 | 44 | 31 | 31 | 22 | 21 | 13 | 167 | 87 | |||||
Impairment of intangibles | 634 | 634 | 634 | ||||||||||||
Total expenses | 4,200 | 7,137 | 3,908 | 4,142 | 4,188 | 4,474 | 3,891 | 4,126 | 19,387 | 16,679 | |||||
Income (loss) before taxes | 72 | (2,774) | 546 | 554 | 377 | 438 | 544 | 563 | (1,602) | 1,922 | |||||
Federal income tax expense (benefit) | (17) | (487) | 90 | 85 | 46 | 66 | 82 | 99 | (329) | 293 | |||||
Net income (loss) | 89 | (2,287) | 456 | 469 | 331 | 372 | 462 | 464 | 925 | 926 | (1,362) | 1,298 | (1,273) | 1,629 | |
Other comprehensive income (loss), net of tax | 960 | (4,134) | (5,450) | (4,993) | (400) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | |||||
Comprehensive income (loss) | 1,049 | (6,421) | (4,994) | (4,524) | (69) | (245) | 2,183 | (2,717) | (14,890) | (848) | |||||
Restatement Impacts [Member] | |||||||||||||||
Revenues | |||||||||||||||
Insurance premiums | 6 | (6) | |||||||||||||
Fee income | 6 | 4 | 3 | 5 | 18 | ||||||||||
Net investment income | 7 | (31) | 29 | (1) | (2) | (1) | (1) | (1) | 4 | (5) | |||||
Realized gain (loss) | 28 | 6 | (12) | (9) | 626 | (8) | 3 | 1 | (20) | 4 | (15) | (5) | 13 | 622 | |
Amortization of deferred gain (loss) on business sold through reinsurance | (8) | (8) | (8) | (8) | (8) | (15) | (23) | (32) | (8) | ||||||
Other revenues | 27 | (30) | 3 | ||||||||||||
Total revenues | 27 | (6) | (21) | (15) | 622 | (5) | 11 | (1) | (15) | 627 | |||||
Expenses | |||||||||||||||
Interest credited | 5 | (2) | 8 | 7 | 18 | ||||||||||
Benefits | (1) | 1 | |||||||||||||
Commissions and other expenses | 8 | (3) | (4) | (1) | 2 | 2 | (2) | 2 | |||||||
Total expenses | 8 | (3) | (4) | (1) | 7 | (1) | 6 | 8 | 20 | ||||||
Income (loss) before taxes | 19 | (3) | (17) | (14) | 615 | (4) | 5 | (9) | (15) | 607 | |||||
Federal income tax expense (benefit) | 3 | (1) | (4) | (3) | 130 | (1) | 1 | (2) | (3) | 127 | |||||
Net income (loss) | 16 | (2) | (13) | (11) | 485 | (3) | 4 | (7) | $ (25) | $ (3) | $ (27) | $ (6) | (12) | 480 | |
Other comprehensive income (loss), net of tax | (6) | 4 | 2 | ||||||||||||
Comprehensive income (loss) | $ 16 | $ (8) | $ (9) | $ (9) | $ 485 | $ (3) | $ 4 | $ (7) | $ (12) | $ 480 |
Quarterly Results of Operatio_6
Quarterly Results of Operations (Stockholders' Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 6,479 | $ 13,089 | $ 18,300 | $ 22,860 | $ 23,548 | $ 24,086 | $ 22,203 | $ 25,041 | $ 22,860 | $ 25,041 | $ 22,860 | $ 25,041 | $ 22,860 | $ 25,041 | |
Net income (loss) | 105 | (2,289) | 443 | 458 | 816 | 369 | 466 | 457 | 900 | 923 | (1,389) | 1,292 | (1,285) | 2,109 | $ 591 |
Other comprehensive income (loss), net of tax | 960 | (4,140) | (5,446) | (4,991) | (400) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | 3,185 | ||||
Balance | 8,266 | 6,479 | 13,089 | 18,300 | 22,860 | 23,548 | 24,086 | 22,203 | 13,089 | 24,086 | 6,479 | 23,548 | 8,266 | 22,860 | 25,041 |
Common Stock [Member] | |||||||||||||||
Balance | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | 11,853 | 11,950 | 11,853 | 11,950 | 11,853 | 11,950 | 11,853 | 11,312 |
Capital contribution from Lincoln National Corporation | 80 | 65 | 65 | 925 | 65 | 510 | |||||||||
Stock compensation/issued for benefit plans | 14 | 7 | (2) | 10 | 11 | 1 | 28 | 32 | 31 | ||||||
Balance | 12,903 | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | 12,020 | 11,930 | 12,114 | 11,940 | 12,903 | 11,950 | 11,853 |
Retained Earnings [Member] | |||||||||||||||
Balance | 2,398 | 4,962 | 4,799 | 4,366 | 4,664 | 4,595 | 4,444 | 4,167 | 4,366 | 4,167 | 4,366 | 4,167 | 4,366 | 4,167 | 4,437 |
Net income (loss) | (2,289) | 443 | 458 | 369 | 466 | 457 | (1,285) | 2,109 | 591 | ||||||
Dividends paid to Lincoln National Corporation | (275) | (280) | (25) | (300) | (315) | (180) | (645) | (1,910) | (660) | ||||||
Balance | 2,436 | 2,398 | 4,962 | 4,799 | 4,366 | 4,664 | 4,595 | 4,444 | 4,962 | 4,595 | 2,398 | 4,664 | 2,436 | 4,366 | 4,167 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||||||
Balance | (8,033) | (3,893) | 1,553 | 6,544 | 6,944 | 7,561 | 5,840 | 9,021 | 6,544 | 9,021 | 6,544 | 9,021 | 6,544 | 9,021 | 5,836 |
Other comprehensive income (loss), net of tax | (4,140) | (5,446) | (4,991) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | 3,185 | ||||||
Balance | (7,073) | (8,033) | (3,893) | 1,553 | 6,544 | 6,944 | 7,561 | 5,840 | (3,893) | 7,561 | (8,033) | 6,944 | (7,073) | 6,544 | 9,021 |
As Previously Reported [Member] | |||||||||||||||
Balance | 6,025 | 12,627 | 17,829 | 22,380 | 23,554 | 24,089 | 22,210 | 22,380 | 22,380 | 22,380 | |||||
Net income (loss) | 89 | (2,287) | 456 | 469 | 331 | 372 | 462 | 464 | 925 | 926 | (1,362) | 1,298 | (1,273) | 1,629 | |
Other comprehensive income (loss), net of tax | 960 | (4,134) | (5,450) | (4,993) | (400) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | |||||
Balance | 7,798 | 6,025 | 12,627 | 17,829 | 22,380 | 23,554 | 24,089 | 22,210 | 12,627 | 24,089 | 6,025 | 23,554 | 7,798 | 22,380 | |
As Previously Reported [Member] | Common Stock [Member] | |||||||||||||||
Balance | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | 11,853 | 11,950 | 11,853 | 11,950 | 11,853 | 11,950 | 11,853 | |
Capital contribution from Lincoln National Corporation | 80 | 65 | 65 | 925 | 65 | ||||||||||
Stock compensation/issued for benefit plans | 14 | 7 | (2) | 10 | 11 | 1 | 28 | 32 | |||||||
Balance | 12,903 | 12,114 | 12,020 | 11,948 | 11,950 | 11,940 | 11,930 | 11,919 | 12,020 | 11,930 | 12,114 | 11,940 | 12,903 | 11,950 | 11,853 |
As Previously Reported [Member] | Retained Earnings [Member] | |||||||||||||||
Balance | 1,944 | 4,506 | 4,330 | 3,886 | 4,670 | 4,598 | 4,451 | 4,167 | 3,886 | 4,167 | 3,886 | 4,167 | 3,886 | 4,167 | |
Net income (loss) | (2,287) | 456 | 469 | 372 | 462 | 464 | (1,273) | 1,629 | |||||||
Dividends paid to Lincoln National Corporation | (275) | (280) | (25) | (300) | (315) | (180) | (645) | (1,910) | |||||||
Balance | 1,968 | 1,944 | 4,506 | 4,330 | 3,886 | 4,670 | 4,598 | 4,451 | 4,506 | 4,598 | 1,944 | 4,670 | 1,968 | 3,886 | 4,167 |
As Previously Reported [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||||||
Balance | (8,033) | (3,899) | 1,551 | 6,544 | 6,944 | 7,561 | 5,840 | 9,021 | 6,544 | 9,021 | 6,544 | 9,021 | 6,544 | 9,021 | |
Other comprehensive income (loss), net of tax | (4,134) | (5,450) | (4,993) | (617) | 1,721 | (3,181) | (13,617) | (2,477) | |||||||
Balance | (7,073) | (8,033) | (3,899) | 1,551 | 6,544 | 6,944 | 7,561 | 5,840 | (3,899) | 7,561 | (8,033) | 6,944 | (7,073) | 6,544 | $ 9,021 |
Restatement Impacts [Member] | |||||||||||||||
Balance | 454 | 462 | 471 | 480 | (6) | (3) | (7) | 480 | 480 | 480 | |||||
Net income (loss) | 16 | (2) | (13) | (11) | 485 | (3) | 4 | (7) | (25) | (3) | (27) | (6) | (12) | 480 | |
Other comprehensive income (loss), net of tax | (6) | 4 | 2 | ||||||||||||
Balance | 468 | 454 | 462 | 471 | 480 | (6) | (3) | (7) | 462 | (3) | 454 | (6) | 468 | 480 | |
Restatement Impacts [Member] | Retained Earnings [Member] | |||||||||||||||
Balance | 454 | 456 | 469 | 480 | (6) | (3) | (7) | 480 | 480 | 480 | |||||
Net income (loss) | (2) | (13) | (11) | (3) | 4 | (7) | (12) | 480 | |||||||
Balance | $ 468 | 454 | 456 | 469 | $ 480 | $ (6) | $ (3) | $ (7) | 456 | $ (3) | $ 454 | $ (6) | $ 468 | $ 480 | |
Restatement Impacts [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||||||
Balance | 6 | 2 | |||||||||||||
Other comprehensive income (loss), net of tax | $ (6) | 4 | 2 | ||||||||||||
Balance | $ 6 | $ 2 | $ 6 |
Quarterly Results of Operatio_7
Quarterly Results of Operations (Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | $ 105 | $ (2,289) | $ 443 | $ 458 | $ 816 | $ 369 | $ 466 | $ 457 | $ 900 | $ 923 | $ (1,389) | $ 1,292 | $ (1,285) | $ 2,109 | $ 591 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
Realized (gain) loss | 124 | (11) | (70) | (257) | (700) | 32 | 169 | (212) | (327) | (43) | (338) | (11) | (214) | (711) | 526 |
Sales and maturities (purchases) of trading securities, net | (189) | 118 | 109 | 230 | 164 | 239 | 301 | (87) | 253 | ||||||
Amortization of deferred gain (loss) on business sold through reinsurance | (8) | (9) | (10) | (10) | (10) | (8) | (7) | (7) | (20) | (14) | (29) | (22) | (37) | (32) | (33) |
Impairment of intangibles | 634 | 634 | 634 | ||||||||||||
Change in: | |||||||||||||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | 24 | 50 | (10) | 106 | 3 | 325 | 45 | 289 | 68 | ||||||
Premiums and fees receivable | (91) | (163) | (71) | (98) | (2) | (99) | (53) | (95) | (20) | ||||||
Accrued investment income | (44) | (51) | (40) | (11) | (77) | (44) | (41) | 8 | (88) | ||||||
Insurance liabilities and reinsurance-related balances | 299 | (263) | 81 | 5 | 2,311 | (301) | 1,055 | (584) | 392 | ||||||
Accrued expenses | (229) | (35) | (340) | 35 | (375) | 200 | (98) | 370 | (21) | ||||||
Federal income tax accruals | 82 | 97 | 192 | 167 | (308) | 233 | (271) | 391 | (134) | ||||||
Cash management agreement | 872 | (182) | 2,427 | (1,223) | 2,803 | (1,367) | 3,730 | (1,286) | (1,341) | ||||||
Other | (3) | (203) | 224 | (219) | 478 | (226) | 527 | (163) | 92 | ||||||
Net cash provided by (used in) operating activities | 912 | (394) | 3,125 | (142) | 3,875 | 219 | 4,293 | 209 | 285 | ||||||
Cash Flows from Investing Activities | |||||||||||||||
Purchases of available-for-sale securities and equity securities | (3,910) | (3,803) | (8,090) | (8,212) | (11,961) | (11,776) | (14,768) | (16,856) | (16,149) | ||||||
Sales of available-for-sale securities and equity securities | 105 | 592 | 236 | 1,277 | 1,231 | 1,441 | 2,347 | 2,341 | 1,214 | ||||||
Maturities of available-for-sale securities | 1,566 | 1,862 | 3,165 | 4,570 | 4,339 | 6,897 | 5,487 | 9,417 | 5,180 | ||||||
Purchases of alternative investments | (141) | (163) | (300) | (360) | (453) | (504) | |||||||||
Sales and repayments of alternative investments | 130 | 54 | 181 | 128 | 380 | 258 | |||||||||
Issuance of mortgage loans on real estate | (539) | (868) | (1,366) | (1,609) | (1,924) | (2,188) | (2,507) | (3,057) | (1,790) | ||||||
Repayment and maturities of mortgage loans on real estate | 716 | 398 | 1,422 | 846 | 1,866 | 1,267 | 2,247 | 1,873 | 1,133 | ||||||
Repayment (issuance) of policy loans, net | 25 | (76) | (6) | 16 | 16 | 47 | 4 | 61 | 49 | ||||||
Net change in collateral on investments, derivatives and related settlements | (242) | 987 | (2,322) | 1,704 | (3,667) | 2,132 | (4,653) | 3,095 | 1,775 | ||||||
Other | (76) | (30) | (93) | (67) | (83) | (181) | (40) | (253) | (149) | ||||||
Net cash provided by (used in) investing activities | (2,366) | (1,047) | (7,173) | (1,707) | (10,256) | (2,607) | (12,073) | (3,756) | (8,961) | ||||||
Cash Flows from Financing Activities | |||||||||||||||
Capital contribution from Lincoln National Corporation | 65 | 65 | 65 | 145 | 65 | 925 | 65 | 510 | |||||||
Payment of long-term debt, including current maturities | (60) | (40) | (60) | (40) | (60) | (40) | (60) | (30) | |||||||
Issuance (payment) of short-term debt | (347) | 71 | (385) | (40) | (313) | (14) | (522) | 587 | (112) | ||||||
Payment related to sale-leaseback transactions | (4) | (47) | (52) | (70) | (59) | (47) | |||||||||
Proceeds from certain financing arrangements | 53 | 50 | 53 | 50 | 186 | 159 | 109 | ||||||||
Deposits of fixed account values, including the fixed portion of variable | 3,041 | 3,136 | 6,892 | 6,370 | 11,049 | 9,138 | 15,212 | 12,626 | 14,009 | ||||||
Withdrawals of fixed account values, including the fixed portion of variable | (1,873) | (1,764) | (3,334) | (3,260) | (4,970) | (4,935) | (6,880) | (6,522) | (6,069) | ||||||
Transfers from (to) separate accounts, net | 70 | (130) | 116 | (255) | 71 | (254) | (195) | (397) | 528 | ||||||
Common stock issued for benefit plans | (17) | (10) | (21) | (11) | (21) | (12) | (21) | (13) | (9) | ||||||
Dividends paid to Lincoln National Corporation | (25) | (180) | (305) | (495) | (580) | (795) | (645) | (1,910) | (660) | ||||||
Other | (63) | (63) | (1) | (63) | (2) | (60) | |||||||||
Net cash provided by (used in) financing activities | 845 | 1,065 | 2,994 | 2,301 | 5,341 | 3,120 | 7,948 | 4,416 | 8,259 | ||||||
Net increase (decrease) in cash, invested cash and restricted cash | (609) | (376) | (1,054) | 452 | (1,040) | 732 | 168 | 869 | (417) | ||||||
Cash, invested cash and restricted cash as of beginning-of-year | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | 1,462 | 2,331 | 1,462 | 2,331 | 1,462 | 2,331 | 1,462 | 1,879 |
Cash, invested cash and restricted cash as of end-of-period | 2,499 | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | 1,277 | 1,914 | 1,291 | 2,194 | 2,499 | 2,331 | 1,462 |
As Previously Reported [Member] | |||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | 89 | (2,287) | 456 | 469 | 331 | 372 | 462 | 464 | 925 | 926 | (1,362) | 1,298 | (1,273) | 1,629 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
Realized (gain) loss | 152 | (5) | (82) | (266) | (74) | 24 | 172 | (211) | (347) | (39) | (353) | (16) | (201) | (89) | |
Sales and maturities (purchases) of trading securities, net | (189) | 98 | 109 | 210 | 164 | 219 | 301 | (108) | |||||||
Amortization of deferred gain (loss) on business sold through reinsurance | (16) | (17) | (18) | (18) | (18) | (8) | (7) | (7) | (35) | (14) | (52) | (22) | (69) | (40) | |
Impairment of intangibles | 634 | 634 | 634 | ||||||||||||
Change in: | |||||||||||||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | 24 | 50 | (8) | 109 | 9 | 325 | 42 | 292 | |||||||
Premiums and fees receivable | (91) | (169) | (71) | (98) | (2) | (99) | (53) | (95) | |||||||
Accrued investment income | (44) | (51) | (40) | (11) | (77) | (44) | (41) | 8 | |||||||
Insurance liabilities and reinsurance-related balances | 303 | (265) | 54 | (3) | 2,311 | (300) | 1,055 | (585) | |||||||
Accrued expenses | (229) | (35) | (340) | 35 | (375) | 200 | (98) | 367 | |||||||
Federal income tax accruals | 85 | 99 | 198 | 167 | (301) | 234 | (268) | 264 | |||||||
Cash management agreement | 872 | (182) | 2,427 | (1,223) | 2,803 | (1,367) | 3,730 | (1,286) | |||||||
Other | (204) | 258 | (219) | 480 | (226) | 531 | (165) | ||||||||
Net cash provided by (used in) operating activities | 916 | (413) | 3,130 | (160) | 3,879 | 202 | 4,290 | 192 | |||||||
Cash Flows from Investing Activities | |||||||||||||||
Purchases of available-for-sale securities and equity securities | (3,910) | (3,783) | (8,091) | (8,192) | (11,961) | (11,756) | (14,768) | (16,834) | |||||||
Sales of available-for-sale securities and equity securities | 105 | 592 | 236 | 1,277 | 1,231 | 1,441 | 2,347 | 2,341 | |||||||
Maturities of available-for-sale securities | 1,566 | 1,862 | 3,165 | 4,570 | 4,339 | 6,897 | 5,487 | 9,417 | |||||||
Purchases of alternative investments | (141) | (163) | (300) | (360) | (453) | (504) | |||||||||
Sales and repayments of alternative investments | 130 | 54 | 181 | 128 | 380 | 258 | |||||||||
Issuance of mortgage loans on real estate | (540) | (869) | (1,368) | (1,611) | (1,928) | (2,191) | (2,503) | (3,062) | |||||||
Repayment and maturities of mortgage loans on real estate | 716 | 398 | 1,422 | 846 | 1,866 | 1,267 | 2,247 | 1,873 | |||||||
Repayment (issuance) of policy loans, net | 25 | (76) | (6) | 16 | 16 | 47 | 4 | 61 | |||||||
Net change in collateral on investments, derivatives and related settlements | (242) | 987 | (2,321) | 1,704 | (3,667) | 2,132 | (4,654) | 3,095 | |||||||
Other | (79) | (30) | (96) | (67) | (83) | (181) | (40) | (253) | |||||||
Net cash provided by (used in) investing activities | (2,370) | (1,028) | (7,178) | (1,689) | (10,260) | (2,590) | (12,070) | (3,739) | |||||||
Cash Flows from Financing Activities | |||||||||||||||
Capital contribution from Lincoln National Corporation | 65 | 65 | 65 | 145 | 65 | 925 | 65 | ||||||||
Payment of long-term debt, including current maturities | (60) | (40) | (60) | (40) | (60) | (40) | (60) | ||||||||
Issuance (payment) of short-term debt | (347) | 71 | (385) | (40) | (313) | (14) | (522) | 587 | |||||||
Payment related to sale-leaseback transactions | (4) | (47) | (52) | (70) | (59) | ||||||||||
Proceeds from certain financing arrangements | 53 | 50 | 53 | 50 | 186 | 159 | |||||||||
Deposits of fixed account values, including the fixed portion of variable | 3,043 | 3,132 | 6,892 | 6,367 | 11,054 | 9,136 | 15,212 | 12,622 | |||||||
Withdrawals of fixed account values, including the fixed portion of variable | (1,819) | (1,768) | (3,280) | (3,283) | (4,916) | (4,935) | (6,880) | (6,575) | |||||||
Transfers from (to) separate accounts, net | 14 | (122) | 62 | (229) | 12 | (252) | (195) | (340) | |||||||
Common stock issued for benefit plans | (17) | (10) | (21) | (11) | (21) | (12) | (21) | (13) | |||||||
Dividends paid to Lincoln National Corporation | (25) | (180) | (305) | (495) | (580) | (795) | (645) | (1,910) | |||||||
Other | (63) | (63) | (1) | (63) | (2) | (60) | |||||||||
Net cash provided by (used in) financing activities | 845 | 1,065 | 2,994 | 2,301 | 5,341 | 3,120 | 7,948 | 4,416 | |||||||
Net increase (decrease) in cash, invested cash and restricted cash | (609) | (376) | (1,054) | 452 | (1,040) | 732 | 168 | 869 | |||||||
Cash, invested cash and restricted cash as of beginning-of-year | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | 1,462 | 2,331 | 1,462 | 2,331 | 1,462 | 2,331 | 1,462 | |
Cash, invested cash and restricted cash as of end-of-period | 2,499 | 1,291 | 1,277 | 1,722 | 2,331 | 2,194 | 1,914 | 1,086 | 1,277 | 1,914 | 1,291 | 2,194 | 2,499 | 2,331 | $ 1,462 |
Restatement Impacts [Member] | |||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | 16 | (2) | (13) | (11) | 485 | (3) | 4 | (7) | (25) | (3) | (27) | (6) | (12) | 480 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
Realized (gain) loss | (28) | (6) | 12 | 9 | (626) | $ 8 | $ (3) | (1) | 20 | (4) | 15 | 5 | (13) | (622) | |
Sales and maturities (purchases) of trading securities, net | 20 | 20 | 20 | 21 | |||||||||||
Amortization of deferred gain (loss) on business sold through reinsurance | $ 8 | $ 8 | $ 8 | 8 | $ 8 | 15 | 23 | 32 | 8 | ||||||
Change in: | |||||||||||||||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | (2) | (3) | (6) | 3 | (3) | ||||||||||
Premiums and fees receivable | 6 | ||||||||||||||
Insurance liabilities and reinsurance-related balances | (4) | 2 | 27 | 8 | (1) | 1 | |||||||||
Accrued expenses | 3 | ||||||||||||||
Federal income tax accruals | (3) | (2) | (6) | (7) | (1) | (3) | 127 | ||||||||
Other | (3) | 1 | (34) | (2) | (4) | 2 | |||||||||
Net cash provided by (used in) operating activities | (4) | 19 | (5) | 18 | (4) | 17 | 3 | 17 | |||||||
Cash Flows from Investing Activities | |||||||||||||||
Purchases of available-for-sale securities and equity securities | (20) | 1 | (20) | (20) | (22) | ||||||||||
Issuance of mortgage loans on real estate | 1 | 1 | 2 | 2 | 4 | 3 | (4) | 5 | |||||||
Net change in collateral on investments, derivatives and related settlements | (1) | 1 | |||||||||||||
Other | 3 | 3 | |||||||||||||
Net cash provided by (used in) investing activities | 4 | (19) | 5 | (18) | 4 | (17) | $ (3) | (17) | |||||||
Cash Flows from Financing Activities | |||||||||||||||
Deposits of fixed account values, including the fixed portion of variable | (2) | 4 | 3 | (5) | 2 | 4 | |||||||||
Withdrawals of fixed account values, including the fixed portion of variable | (54) | 4 | (54) | 23 | (54) | 53 | |||||||||
Transfers from (to) separate accounts, net | $ 56 | $ (8) | $ 54 | $ (26) | $ 59 | $ (2) | $ (57) |
SCHEDULE I - CONSOLIDATED SUM_2
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | $ 141,241 |
Carrying Value | 130,990 |
Fixed Maturity AFS Securities [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 110,944 |
Fair Value | 99,465 |
Carrying Value | 99,465 |
Equity Securities [Member] | Common Stock [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 388 |
Fair Value | 427 |
Carrying Value | 427 |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 377 |
Fair Value | 351 |
Carrying Value | 351 |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 339 |
Fair Value | 311 |
Carrying Value | 311 |
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 5,198 |
Fair Value | 4,885 |
Carrying Value | 4,885 |
Public Utilities [Member] | Fixed Maturity AFS Securities [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 13,730 |
Fair Value | 12,084 |
Carrying Value | 12,084 |
All other corporate bonds [Member] | Fixed Maturity AFS Securities [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 75,220 |
Fair Value | 67,082 |
Carrying Value | 67,082 |
Mortgage-Backed And Asset-Backed Securities [Member] | Fixed Maturity AFS Securities [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 15,724 |
Fair Value | 14,402 |
Carrying Value | 14,402 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 356 |
Fair Value | 350 |
Carrying Value | 350 |
Banks, Trusts, And Insurance Companies [Member] | Equity Securities [Member] | Common Stock [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 48 |
Fair Value | 47 |
Carrying Value | 47 |
Industrial, miscellaneous and all other [Member] | Equity Securities [Member] | Common Stock [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 55 |
Fair Value | 146 |
Carrying Value | 146 |
Nonredeemable preferred securities [Member] | Equity Securities [Member] | Common Stock [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 285 |
Fair Value | 234 |
Carrying Value | 234 |
Trading Securities [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 3,782 |
Fair Value | 3,446 |
Carrying Value | 3,446 |
Mortgage Loans On Real Estate [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 18,336 |
Fair Value | 16,477 |
Carrying Value | 18,211 |
Policy loans [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 2,345 |
Carrying Value | 2,345 |
Derivative Investments [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 1,869 |
Fair Value | 3,519 |
Carrying Value | 3,519 |
Other Investments [Member] | |
Summary of investments, other than investments in related parties [Line Items] | |
Cost | 3,577 |
Fair Value | 3,577 |
Carrying Value | $ 3,577 |
SCHEDULE III _ CONDENSED SUPP_2
SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Supplementary Insurance Information, by Segment [Line Items] | |||||||||
DAC and VOBA | $ 13,615 | $ 5,986 | $ 5,824 | $ 13,765 | $ 11,832 | $ 8,689 | $ 5,918 | $ 6,207 | $ 7,606 |
Future Contract Benefits | 41,598 | 40,416 | 40,146 | ||||||
Other Contract Holder Funds | 120,360 | 111,183 | 104,858 | ||||||
Insurance Premiums | 5,841 | 5,359 | 5,122 | ||||||
Net Investment Income | 5,274 | 5,839 | 5,264 | ||||||
Benefits and Interest Credited | 13,650 | 10,950 | 10,949 | ||||||
Amortization of DAC and VOBA | 909 | 1,600 | 1,286 | ||||||
Other Operating Expenses | 4,058 | 4,035 | 3,674 | ||||||
Annuities Segment [Member] | |||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||
DAC and VOBA | 4,796 | 4,142 | 3,939 | ||||||
Future Contract Benefits | 5,556 | 4,180 | 4,183 | ||||||
Other Contract Holder Funds | 45,493 | 41,620 | 35,234 | ||||||
Insurance Premiums | 165 | 116 | 121 | ||||||
Net Investment Income | 1,386 | 1,314 | 1,192 | ||||||
Benefits and Interest Credited | 1,182 | 990 | 1,026 | ||||||
Amortization of DAC and VOBA | 249 | 433 | 376 | ||||||
Other Operating Expenses | 1,440 | 1,547 | 1,350 | ||||||
Retirement Plan Services Segment [Member] | |||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||
DAC and VOBA | 309 | 159 | 126 | ||||||
Future Contract Benefits | 18 | 15 | 11 | ||||||
Other Contract Holder Funds | 25,133 | 23,635 | 22,912 | ||||||
Net Investment Income | 966 | 982 | 924 | ||||||
Benefits and Interest Credited | 633 | 620 | 617 | ||||||
Amortization of DAC and VOBA | 17 | 31 | 28 | ||||||
Other Operating Expenses | 379 | 387 | 374 | ||||||
Life Insurance Segment [Member] | |||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||
DAC and VOBA | 8,346 | 1,514 | 1,572 | ||||||
Future Contract Benefits | 19,797 | 19,929 | 19,621 | ||||||
Other Contract Holder Funds | 43,684 | 39,197 | 39,233 | ||||||
Insurance Premiums | 908 | 783 | 711 | ||||||
Net Investment Income | 2,464 | 3,054 | 2,689 | ||||||
Benefits and Interest Credited | 7,877 | 5,327 | 5,668 | ||||||
Amortization of DAC and VOBA | 537 | 1,029 | 768 | ||||||
Other Operating Expenses | 673 | 693 | 690 | ||||||
Group Protection Segment [Member] | |||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||
DAC and VOBA | 164 | 171 | 187 | ||||||
Future Contract Benefits | 6,580 | 6,326 | 5,986 | ||||||
Other Contract Holder Funds | 213 | 214 | 213 | ||||||
Insurance Premiums | 4,768 | 4,450 | 4,280 | ||||||
Net Investment Income | 333 | 364 | 329 | ||||||
Benefits and Interest Credited | 3,847 | 3,896 | 3,505 | ||||||
Amortization of DAC and VOBA | 106 | 107 | 114 | ||||||
Other Operating Expenses | 1,219 | 1,154 | 1,120 | ||||||
Other Operations [Member] | |||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||
Future Contract Benefits | 9,647 | 9,966 | 10,345 | ||||||
Other Contract Holder Funds | 5,837 | 6,517 | 7,266 | ||||||
Insurance Premiums | 10 | 10 | |||||||
Net Investment Income | 125 | 125 | 130 | ||||||
Benefits and Interest Credited | 111 | 117 | 133 | ||||||
Other Operating Expenses | $ 347 | $ 254 | $ 140 |
SCHEDULE IV _ CONSOLIDATED RE_2
SCHEDULE IV – CONSOLIDATED REINSURANCE (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated reinsurance, net [Abstract] | |||||||||||
Premiums Earned, Net, Total | $ 1,503 | $ 1,496 | $ 1,436 | $ 1,406 | $ 1,360 | $ 1,341 | $ 1,334 | $ 1,324 | $ 5,841 | $ 5,359 | $ 5,122 |
Reinsurance Related [Member] | |||||||||||
Consolidated reinsurance, net [Abstract] | |||||||||||
Gross Amount | 13,807 | 14,028 | 13,159 | ||||||||
Ceded to Other Companies | 2,285 | 2,136 | 2,018 | ||||||||
Assumed from Other Companies | 102 | 97 | 101 | ||||||||
Premiums Earned, Net, Total | 11,624 | 11,989 | 11,242 | ||||||||
Gross Amount, Life Insurance in Force | 1,997,539 | 1,808,596 | 1,997,539 | 1,808,596 | 1,611,276 | ||||||
Ceded to Other Companies, Life Insurance in Force | 848,979 | 789,638 | 848,979 | 789,638 | 684,067 | ||||||
Assumed from Other Companies, Life Insurance in Force | 9,010 | 10,651 | 9,010 | 10,651 | 11,141 | ||||||
Premiums, Net, Life Insurance in Force, Total | $ 1,157,570 | $ 1,029,609 | $ 1,157,570 | $ 1,029,609 | $ 938,350 | ||||||
Percentage of Amount Assumed to Net, Life Insurance in Force | 0.80% | 1% | 0.80% | 1% | 1.20% | ||||||
Life Insurance And Annuities [Member] | Reinsurance Related [Member] | |||||||||||
Consolidated reinsurance, net [Abstract] | |||||||||||
Gross Amount | $ 10,564 | $ 10,978 | $ 10,329 | ||||||||
Ceded to Other Companies | 2,247 | 2,095 | 1,977 | ||||||||
Assumed from Other Companies | 98 | 91 | 94 | ||||||||
Premiums Earned, Net, Total | $ 8,415 | $ 8,974 | $ 8,446 | ||||||||
Percentage of Amount Assumed to Net | 1.20% | 1% | 1.10% | ||||||||
Accident And Health Insurance [Member] | Reinsurance Related [Member] | |||||||||||
Consolidated reinsurance, net [Abstract] | |||||||||||
Gross Amount | $ 3,243 | $ 3,050 | $ 2,830 | ||||||||
Ceded to Other Companies | 38 | 41 | 41 | ||||||||
Assumed from Other Companies | 4 | 6 | 7 | ||||||||
Premiums Earned, Net, Total | $ 3,209 | $ 3,015 | $ 2,796 | ||||||||
Percentage of Amount Assumed to Net | 0.10% | 0.20% | 0.30% |