Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 333-65423 | |
Entity Registrant Name | EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA | |
Entity Incorporation, State or Country Code | AZ | |
Entity Tax Identification Number | 86-0222062 | |
Entity Address, Address Line One | 525 Washington Boulevard | |
Entity Address, City or Town | Jersey City | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07310 | |
City Area Code | 212 | |
Local Phone Number | 554-1234 | |
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 | 2,500,000 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Amendment Flag | false | |
Entity Central Index Key | 0000835357 | |
Current Fiscal Year End Date | --12-31 |
Balance Sheets
Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $2,683 and $2,444) (allowance for credit losses of $0 and $0 ) | $ 2,244 | $ 2,572 | |
Mortgage loans on real estate (net of allowance for credit losses of $0 and $0) | 17 | 17 | |
Policy loans | 250 | 238 | |
Other equity investments | 19 | 23 | |
Other invested assets | 20 | 19 | |
Total investments | 2,550 | 2,869 | |
Cash and cash equivalents | 30 | 127 | |
Deferred policy acquisition costs | 906 | 637 | |
Amounts due from reinsurers (allowance for credit losses of $0 and $0) | 1,096 | 1,123 | |
Current and deferred income taxes | 126 | 17 | |
Other assets | 134 | 46 | |
Separate Accounts assets | 3,017 | 3,394 | |
Total Assets | 7,859 | 8,213 | |
LIABILITIES | |||
Policyholders’ account balances | 3,504 | 3,504 | |
Future policy benefits and other policyholders' liabilities | 641 | 457 | |
Amounts due to reinsurers | 109 | 117 | |
Other liabilities | 204 | 42 | |
Separate Accounts liabilities | 3,017 | 3,394 | |
Total Liabilities | 7,475 | 7,514 | |
Commitments and contingent liabilities (1) | [1] | ||
EQUITY | |||
Common stock, $1.00 par value; 2,500,000 shares authorized, issued and outstanding | 3 | 3 | |
Additional paid-in capital | 783 | 680 | |
Accumulated deficit | (94) | (70) | |
Accumulated other comprehensive income (loss) | (308) | 86 | |
Total Equity | 384 | 699 | |
Total Liabilities and Equity | $ 7,859 | $ 8,213 | |
[1]See Note 10 of the Notes to these Financial Statements for details of commitments and contingent liabilities. |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed maturities available-for-sale, amortized cost | $ 2,683 | $ 2,444 |
Fixed maturities available-for-sale, allowance for credit losses | 0 | 0 |
Mortgage loans on real estate, valuation allowances | 0 | 0 |
Reinsurance recoverable, allowance for credit loss | $ 0 | $ 0 |
Common stock par value (in dollars per share) | $ 1 | $ 1 |
Common stock authorized (in shares) | 2,500,000 | 2,500,000 |
Common stock issued (in shares) | 2,500,000 | 2,500,000 |
Common stock outstanding (in shares) | 2,500,000 | 2,500,000 |
Statements of Income (Loss)
Statements of Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
REVENUES | ||||
Policy charges and fee income | $ 72 | $ 68 | $ 218 | $ 212 |
Premiums | 55 | 39 | 163 | 115 |
Net derivative gains (losses) | (12) | 0 | (12) | (3) |
Net investment income (loss) | 22 | 20 | 63 | 62 |
Investment gains (losses), net | 0 | 0 | (3) | 0 |
Investment management and service fees | 5 | 1 | 16 | 3 |
Other income | 2 | 1 | 3 | 7 |
Total revenues | 144 | 129 | 448 | 396 |
BENEFITS AND OTHER DEDUCTIONS | ||||
Policyholders’ benefits | 59 | 65 | 215 | 174 |
Interest credited to policyholders’ account balances | 25 | 22 | 67 | 62 |
Compensation and benefits | 10 | 10 | 30 | 28 |
Commissions | 20 | 20 | 62 | 54 |
Amortization of deferred policy acquisition costs | 0 | (13) | 35 | 30 |
Other operating costs and expenses | 22 | 27 | 67 | 71 |
Total benefits and other deductions | 136 | 131 | 476 | 419 |
Income (loss) from continuing operations, before income taxes | 8 | (2) | (28) | (23) |
Income tax (expense) benefit | 3 | 1 | 4 | 6 |
Net income (loss) | $ 11 | $ (1) | $ (24) | $ (17) |
Statements of Comprehensive Inc
Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
COMPREHENSIVE INCOME (LOSS) | |||||
Net income (loss) | $ 11 | $ (1) | $ (24) | $ (17) | |
Other comprehensive income (loss), net of income taxes: | |||||
Change in unrealized gains (losses), net of adjustment | [1] | (107) | (5) | (394) | (39) |
Other comprehensive income (loss), net of income taxes | (107) | (5) | (394) | (39) | |
Comprehensive income (loss) | $ (96) | $ (6) | $ (418) | $ (56) | |
[1]See Note 9 of the Notes to these Financial Statements for details of change in unrealized gains (losses), net of adjustments. |
Statements of Equity
Statements of Equity - USD ($) $ in Millions | Total | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2018 | $ 5 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ (45) | |||||
Ending balance at Dec. 31, 2019 | $ 414 | (40) | $ 48 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (10) | |||||
Other comprehensive income (loss) | 88 | |||||
Ending balance at Dec. 31, 2020 | 781 | 781 | $ 3 | $ 692 | (50) | 136 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (2) | |||||
Other comprehensive income (loss) | (71) | |||||
Ending balance at Mar. 31, 2021 | 709 | 693 | (52) | 65 | ||
Beginning balance at Dec. 31, 2020 | 781 | 781 | 3 | 692 | (50) | 136 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (17) | |||||
Other comprehensive income (loss) | (34) | |||||
Ending balance at Jun. 30, 2021 | 667 | 667 | 3 | 628 | (66) | 102 |
Beginning balance at Dec. 31, 2020 | 781 | 781 | 3 | 692 | (50) | 136 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividend | (64) | (64) | ||||
Net income (loss) | (17) | (17) | ||||
Other comprehensive income (loss) | (39) | (39) | ||||
Ending balance at Sep. 30, 2021 | 661 | 3 | 628 | (67) | 97 | |
Beginning balance at Dec. 31, 2020 | 781 | 781 | 3 | 692 | (50) | 136 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (20) | |||||
Other comprehensive income (loss) | (50) | |||||
Ending balance at Dec. 31, 2021 | 699 | 699 | 3 | 680 | (70) | 86 |
Beginning balance at Mar. 31, 2021 | 709 | 693 | (52) | 65 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (15) | |||||
Other comprehensive income (loss) | 37 | |||||
Ending balance at Jun. 30, 2021 | 667 | 667 | 3 | 628 | (66) | 102 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividend | 0 | 0 | ||||
Net income (loss) | (1) | (1) | ||||
Other comprehensive income (loss) | (5) | (5) | ||||
Other | 0 | 0 | ||||
Ending balance at Sep. 30, 2021 | 661 | 3 | 628 | (67) | 97 | |
Beginning balance at Dec. 31, 2021 | 699 | 699 | 3 | 680 | (70) | 86 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (20) | |||||
Other comprehensive income (loss) | (150) | |||||
Ending balance at Mar. 31, 2022 | 530 | 681 | (90) | (64) | ||
Beginning balance at Dec. 31, 2021 | 699 | 699 | 3 | 680 | (70) | 86 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (35) | |||||
Other comprehensive income (loss) | (287) | |||||
Ending balance at Jun. 30, 2022 | 379 | 379 | 3 | 682 | (105) | (201) |
Beginning balance at Dec. 31, 2021 | 699 | 699 | 3 | 680 | (70) | 86 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contribution from parent | 100 | 100 | ||||
Net income (loss) | (24) | (24) | ||||
Other comprehensive income (loss) | (394) | (394) | ||||
Other | 3 | 3 | ||||
Ending balance at Sep. 30, 2022 | 384 | 3 | 783 | (94) | (308) | |
Beginning balance at Mar. 31, 2022 | 530 | 681 | (90) | (64) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (15) | |||||
Ending balance at Jun. 30, 2022 | 379 | 379 | 3 | 682 | (105) | (201) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contribution from parent | 100 | $ 100 | ||||
Net income (loss) | 11 | 11 | ||||
Other comprehensive income (loss) | (107) | (107) | ||||
Other | 1 | 1 | ||||
Ending balance at Sep. 30, 2022 | $ 384 | $ 3 | $ 783 | $ (94) | $ (308) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ (24) | $ (17) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Interest credited to policyholders’ account balances | 67 | 62 |
Policy charges and fee income | (218) | (212) |
Net derivative (gains) losses | 12 | 3 |
Dividend from AB Units | 0 | 5 |
Equity in (income) loss from AB | 0 | (3) |
Investment (gains) losses, net | 3 | 1 |
Realized and unrealized (gains) losses on trading securities | 0 | 1 |
Non-cash long-term incentive compensation expense | 3 | (2) |
Amortization and depreciation | 51 | 33 |
Changes in: | ||
Reinsurance recoverable | (37) | (89) |
Capitalization of deferred policy acquisition costs | (84) | (84) |
Future policy benefits | 9 | 19 |
Current and deferred income taxes | (4) | 24 |
Other, net | 61 | 4 |
Net cash provided by (used in) operating activities | (161) | (255) |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 132 | 162 |
Short-term investments | 0 | 0 |
Other | 1 | 0 |
Payment for the purchase/origination of: | ||
Fixed maturities, available-for-sale | (376) | (412) |
Other | (2) | |
Other | 0 | |
Cash settlements related to derivative instruments, net | (123) | 46 |
Other, net | (11) | (5) |
Net cash provided by (used in) investing activities | (379) | (209) |
Cash flows from financing activities: | ||
Deposits | 540 | 467 |
Withdrawals | (72) | (63) |
Transfer (to) from Separate Accounts | (136) | (41) |
Change in collateralized pledged assets | (1) | 0 |
Change in collateralized pledged liabilities | (3) | (1) |
Cash contribution from parent company | 100 | 0 |
Other, net | 15 | 1 |
Net cash provided by (used in) financing activities | 443 | 363 |
Change in cash and cash equivalents | (97) | (101) |
Cash and cash equivalents, beginning of year | 127 | 161 |
Cash and cash equivalents, end of year | $ 30 | $ 60 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2022 | |
Organization [Abstract] | |
ORGANIZATION | ORGANIZATION Equitable America’s primary business is providing annuity, life insurance and employee benefit products to both individuals and businesses. The Company is an indirect, wholly-owned subsidiary of Holdings. Equitable America is a stock life insurance company organized under the laws of Arizona. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim financial statements (the “financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The terms “third quarter 2022” and ”third quarter 2021” refer to the three months ended September 30, 2022 and 2021, respectively. The terms “first nine months of 2022” and “first nine months of 2021” refer to the nine months ended September 30, 2022 and 2021, respectively. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of September 30, 2022, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12 : Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be a decrease to total equity as of September 30, 2022. The impact on total equity is mostly driven by the DAC and URR updates to amortize DAC and URR on a constant level basis, remove amortization associated with unrealized gains or losses, and excluding future deferrals in the calculation of the DAC and URR balances. Recognition of Investment Management and Service Fees Reported as investment management and service fees in the Company’s statements of income (loss) are administrative fees earned by the Company related to administrative services provided to EIMG and EIM related to the establishment and maintenance of the Separate Accounts, shareholder servicing, customer support, and other similar services. Accordingly, these administrative service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of AUM, are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. Assumption Updates and Model Changes The Company conducts its annual review of its assumptions and models during the third quarter of each year. The annual review encompasses assumptions underlying the valuation of unearned revenue liabilities, embedded derivatives for our insurance business, liabilities for future policyholder benefits, DAC and DSI assets. However, the Company updates its assumptions as needed in the event it becomes aware of economic conditions or events that could require a change in assumptions that it believes may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact its earnings in the period of the change. Impact of Assumption Updates The net impact of assumption changes in the three and nine months ended September 30, 2022 decreased policy charges and fee income by $7 million, decreased policyholders’ benefits by $10 million, and decreased amortization of DAC by $14 million. This resulted in an increase in income (loss) from operations, before income taxes of $17 million and increased net income (loss) by $13 million. The net impact of assumption changes in the three and nine months ended September 30, 2021 increased policy charges and fee income by $2 million, policyholders’ benefits by $10 million, and amortization of DAC by $4 million. This resulted in a decrease in income (loss) from operations, before income taxes of $12 million and decreased net income (loss) by $9 million. Revision of Previously Issued Financial Statements The Company identified an error in its previously issued financial statements specifically related to the amortization of the cost of reinsurance asset. The impact of this error to prior periods financial statements were not considered to be material. In addition, last quarter we identified an error in its previously issued financial statements specifically related to the preparation of the statement of cash flows. In order to improve the consistency and comparability of the financial statements, management revised the financial statements to include the revisions discussed herein. The impact of the errors to prior periods financial statements was not considered to be material. See Note 12 to the Notes to these Financial Statements for details of the revision. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Fixed Maturities AFS The components of fair value and amortized cost for fixed maturities classified as AFS on the balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of September 30, 2022 and December 31, 2021 was $24 million and $20 million. There was no accrued interest written off for AFS fixed maturities for the three and nine months ended September 30, 2022 and 2021. The following tables provide information relating to the Company’s fixed maturities classified as AFS. AFS Fixed Maturities by Classification Amortized Allowance for Credit Losses Gross Gross Fair Value (in millions) September 30, 2022: Fixed Maturities: Corporate (1) $ 2,492 $ — $ — $ 409 $ 2,083 U.S. Treasury, government and agency 15 — — 1 14 States and political subdivisions 41 — — 9 32 Foreign governments — — — — — Asset-backed (2) 54 — — 4 50 Commercial mortgage-backed 81 — — 16 65 Total at September 30, 2022 $ 2,683 $ — $ — $ 439 $ 2,244 December 31, 2021: Fixed Maturities: Corporate (1) $ 2,237 $ — $ 135 $ 10 $ 2,362 U.S. Treasury, government and agency 66 — 1 1 66 States and political subdivisions 31 — 3 — 34 Asset-backed (2) 30 — — — 30 Commercial mortgage-backed 80 — — — 80 Total at December 31, 2021 $ 2,444 $ — $ 139 $ 11 $ 2,572 ______________ (1) Corporate fixed maturities include both public and private issues. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities. and other asset types. The contractual maturities of AFS fixed maturities as of September 30, 2022 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Contractual Maturities of AFS Fixed Maturities Amortized Cost (Less Allowance for Credit Losses) Fair Value (in millions) September 30, 2022: Contractual maturities: Due in one year or less $ 34 $ 34 Due in years two through five 627 598 Due in years six through ten 908 772 Due after ten years 979 725 Subtotal 2,548 2,129 Asset-backed 54 50 Commercial mortgage-backed 81 65 Total at September 30, 2022 $ 2,683 $ 2,244 The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities for the three and nine months ended September 30, 2022 and 2021: Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Proceeds from sales $ — $ 71 $ 62 $ 100 Gross gains on sales $ — $ — $ — $ — Gross losses on sales $ — $ (1) $ 4 $ (1) Net change in Allowance for Credit and Intent to Sell losses $ — $ — $ — $ — The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts. AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Balance, beginning of period $ — $ 2 $ 2 $ 2 Previously recognized impairments on securities that matured, paid, prepaid or sold — — (2) — Recognized impairments on securities impaired to fair value this period (1) — — — — Credit losses recognized this period on securities for which credit losses were not previously recognized — — — Additional credit losses this period on securities previously impaired — — — — Increases due to passage of time on previously recorded credit losses — — — — Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) — — — — Balance at September 30, $ — $ 2 $ — $ 2 ______________ (1) Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI. Net Unrealized Gains (Losses) on AFS Fixed Maturities Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, July 1, 2022 $ (293) $ 119 $ (80) $ 53 $ (201) Net investment gains (losses) arising during the period (146) — — — (146) Reclassification adjustment: Included in net income (loss) — — — — — Other — — — — — Impact of net unrealized investment gains (losses) — 56 (45) 29 40 Net unrealized investment gains (losses) excluding credit losses (439) 175 (125) 82 (307) Net unrealized investment gains (losses) with credit losses — — — — — Balance, September 30, 2022 $ (439) $ 175 $ (125) $ 82 $ (307) Balance, July 1, 2021 $ 171 $ (82) $ 39 $ (27) $ 101 Net investment gains (losses) arising during the period (19) — — — (19) Reclassification adjustment: — — — — — Included in net income (loss) 1 — — — 1 Other (1) — — — — — Impact of net unrealized investment gains (losses) — 21 (10) 3 14 Net unrealized investment gains (losses) excluding credit losses 153 (61) 29 (24) 97 Net unrealized investment gains (losses) with credit losses — — — — — Balance, September 30, 2021 $ 153 $ (61) $ 29 $ (24) $ 97 Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2022 $ 128 $ (46) $ 28 $ (24) $ 86 Net investment gains (losses) arising during the period (570) — — — (570) Reclassification adjustment: Included in net income (loss) 3 — — — 3 Other — — — — — Impact of net unrealized investment gains (losses) — 221 (153) 106 174 Net unrealized investment gains (losses) excluding credit losses (439) 175 (125) 82 (307) Net unrealized investment gains (losses) with credit losses — — — — — Balance, September 30, 2022 $ (439) $ 175 $ (125) $ 82 $ (307) Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2021 $ 246 $ (111) $ 37 $ (37) $ 135 Net investment gains (losses) arising during the period (93) — — — (93) Reclassification adjustment: Included in net income (loss) 3 — — — 3 Other (3) — — — (3) Impact of net unrealized investment gains (losses) — 50 (8) 13 55 Net unrealized investment gains (losses) excluding credit losses 153 (61) 29 (24) 97 Net unrealized investment gains (losses) with credit losses — — — — — Balance, September 30, 2021 $ 153 $ (61) $ 29 $ (24) $ 97 The following tables disclose the fair values and gross unrealized losses of the 861 issues as of September 30, 2022 and the 119 issues as of December 31, 2021 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) September 30, 2022: Fixed Maturities: Corporate $ 1,854 $ 320 $ 212 $ 89 $ 2,066 $ 409 U.S. Treasury, government and agency 14 1 — — 14 1 States and political subdivisions 30 8 1 1 31 9 Asset-backed 49 4 1 — 50 4 Commercial mortgage-backed 61 15 4 1 65 16 Total at September 30, 2022 $ 2,008 $ 348 $ 218 $ 91 $ 2,226 $ 439 December 31, 2021: Fixed Maturities: Corporate $ 243 $ 4 $ 111 $ 6 $ 354 $ 10 U.S. Treasury, government and agency 45 1 2 — 47 1 States and political subdivisions — — — — — — Asset-backed — — — — — — Commercial mortgage-backed — — — — — — Total at December 31, 2021 $ 288 $ 5 $ 113 $ 6 $ 401 $ 11 The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 1.1% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of September 30, 2022 and December 31, 2021 were $24 million and $27 million, respectively, representing 6.2% and 3.8% of the equity of the Company. Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of September 30, 2022 and December 31, 2021, respectively, approximately $4 million and $10 million, or 0.1% and 0.4%, of the $2.7 billion and $2.4 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had no gross unrealized losses as of September 30, 2022 and December 31, 2021. As of September 30, 2022 and December 31, 2021, respectively, the $91 million and $6 million of gross unrealized losses of twelve months or more were concentrated in corporate securities. In accordance with the policy described in Note 2 of the Notes to these Financial Statements, the Company concluded that an allowance for credit losses for these securities was not warranted at either September 30, 2022 or December 31, 2021. As of September 30, 2022 and December 31, 2021, the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis. Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of September 30, 2022, the Company determined that the unrealized loss was primarily due to increases in interest rates, credit spreads and changes in credit ratings. Mortgage Loans on Real Estate The Company held two commercial mortgage loans with a carrying value of $17 million at September 30, 2022 and December 31, 2021. The loans were issued prior to 2017 for apartment complex properties located in the Mid-Atlantic region. The loans were current as of September 30, 2022 and December 31, 2021 with LTV ratios between 0%-50% and DSC ratios greater than 2.0x. Accrued interest receivable as of September 30, 2022 and December 31, 2021 was $0 million and no accrued interest was written off for the three and nine months ended September 30, 2022 and 2021. The allowance for credit losses was $0 million as of September 30, 2022 and 2021, with a change of $0 million for the periods ended. As of September 30, 2022 and 2021, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses. Equity Securities The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and nine months ended September 30, 2022 and 2021. Unrealized and Realized Gains (Losses) from Equity Securities Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (1) $ 1 $ (4) $ 3 Net investment gains (losses) recognized on securities sold during the period — — — — Unrealized and realized gains (losses) on equity securities $ (1) $ 1 $ (4) $ 3 |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by applicable states’ insurance law. The Company does not designate any derivatives as hedge accounting. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts can be used in these hedging programs, including exchange traded equity and interest rate futures contracts as well as equity options. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. Derivatives Utilized to Hedge Exposure to Variable Annuities with Guarantee Features The Company has issued and continues to offer variable annuity products with GMxB features. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with products that have a GMxB derivative features liability is that under-performance of the financial markets could result in the GMxB derivative features’ benefits being higher than what accumulated policyholders’ account balances would support. For GMxB features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual experience versus expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB features that result from financial markets movements. A portion of exposure to realized equity volatility is hedged using equity options and variance swaps and a portion of exposure to credit risk is hedged using total return swaps on fixed income indices. Derivatives Utilized to Hedge Crediting Rate Exposure on MSO and IUL Products/Investment Options The Company hedges crediting rates in the MSO that are in the variable life insurance products and IUL insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment. In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers, thereby substantially reducing any exposure to market-related earnings volatility. The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments: The following table presents the gross notional amount and estimated fair value of the Company’s derivatives: Derivative Instruments by Category September 30, 2022 December 31, 2021 Fair Value Fair Value Notional Derivative Assets Derivative Notional Derivative Assets Derivative (in millions) Derivatives: (1) Equity contracts: Futures $ 223 $ — $ — $ 295 $ — $ — Options 51 1 2 59 8 5 Interest rate contracts: Futures 156 — — 120 — — Other contracts: Margin — 18 — — 18 — Collateral — 1 — — — 3 Total: 430 20 2 474 26 8 Embedded derivatives: GMxB derivative features liability (2) — — (9) — — — MSO and IUL indexed features (3) — — 30 — — 132 Total embedded derivatives — — 21 — — 132 Total derivative instruments $ 430 $ 20 $ 23 $ 474 $ 26 $ 140 ______________ (1) Reported in other invested assets in the balance sheets. (2) Reported in future policy benefits and other policyholders’ liabilities in the balance sheets. (3) Reported in policyholders’ account balances in the balance sheets. The following table presents the effects of derivative instruments on the statements of income and comprehensive income (loss). Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (in millions) Derivatives: Equity contracts: Futures $ (12) $ (85) Swaps — — Options (1) (4) Interest rate contracts: Futures (16) (40) Swaps — — Swaptions — — Credit contracts: Credit default swaps — — Currency contracts: Currency swaps — — Currency forwards — — Other contracts: Margin — — Collateral — — Total: (29) (129) Embedded Derivatives: GMxB derivative features liability 2 11 MSO and IUL indexed features 15 106 Total Embedded Derivatives 17 117 Total Derivatives instruments (1) $ (12) $ (12) ________ (1) Reported in net derivative gains (losses) in the statements of income (loss). Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 (in millions) Derivatives: Equity contracts: Futures $ 2 $ 39 Swaps — — Options — 2 Interest rate contracts: Futures (1) (1) Swaps — — Swaptions — — Credit contracts: Credit default swaps — — Currency contracts: Currency swaps — — Currency forwards — — Other contracts: Margin — — Collateral — — Total: 1 40 GMxB derivative features liability — — MSO and IUL indexed features (1) (43) Total Embedded Derivatives (1) (43) Total Derivatives instruments (1) $ — (3) ________ (1) Reported in net derivative gains (losses) in the statements of income (loss). Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based futures contracts as of September 30, 2022 and December 31, 2021 are exchange-traded and net settled daily in cash. As of September 30, 2022 and December 31, 2021, respectively, the Company had open exchange-traded futures positions on: (i) the S&P 500, Nasdaq, Russell 2000 and Emerging Market indices, having initial margin requirements of $12 million and $14 million and (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $6 million and $3 million. Collateral Arrangements The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its OTC derivative counterparties that requires both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities, U.S. government and government agency securities and investment grade corporate bonds. The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. As of September 30, 2022 and December 31, 2021, respectively, the Company held $0 million and $3 million in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. The unrestricted cash collateral is reported in other invested assets. The Company posted collateral of $1 million and $0 million as of September 30, 2022 and December 31, 2021, respectively, in the normal operation of its collateral arrangements. The Company is exposed to losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreements, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. In addition, certain of the Company’s derivative agreements contain credit-risk related contingent features; if the credit rating of one of the parties to the derivative agreement is to fall below a certain level, the party with positive fair value could request termination at the then fair value or demand immediate full collateralization from the party whose credit rating fell and is in a net liability position. As of September 30, 2022, there were no net liability derivative positions with counterparties with credit risk-related contingent features whose credit rating has fallen. All derivatives have been appropriately collateralized by the Company or the counterparty in accordance with the terms of the derivative agreements. The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of September 30, 2022 and December 31, 2021: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of September 30, 2022 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (1) Net Amount (in millions) Assets: Derivative assets $ 20 $ 2 $ 18 $ — $ 18 Other financial assets 2 — 2 — 2 Other invested assets $ 22 $ 2 $ 20 $ — $ 20 Liabilities: Derivative liabilities $ 2 $ 2 $ — $ — $ — Other financial liabilities 204 — 204 — 204 Other liabilities $ 206 $ 2 $ 204 $ — $ 204 ______________ (1) Financial instruments sent (held). As of December 31, 2021 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (1) Net Amount (in millions) Assets: Derivative assets $ 26 $ 8 $ 18 $ — $ 18 Other financial assets 1 — 1 — 1 Other invested assets $ 27 $ 8 $ 19 $ — $ 19 Liabilities: Derivative liabilities $ 8 $ 8 $ — $ — $ — Other financial liabilities 42 — 42 — 42 Other liabilities $ 50 $ 8 $ 42 $ — $ 42 ______________ (1) Financial instruments sent (held). |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
INSURANCE LIABILITIES | INSURANCE LIABILITIES Variable Annuity Contracts – GMDB and GMIB Features The Company has certain variable annuity contracts with GMDB and GMIB features in-force that guarantee one of the following: • Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals); • Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals); • Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages; or • Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include an annual reset. Liabilities for Variable Annuity Contracts with GMDB and GMIB Features without NLG Rider Feature The change in the liabilities for variable annuity contracts with GMDB and GMIB features and without a NLG feature are summarized in the tables below. The amounts for the direct contracts (before reinsurance ceded) and assumed contracts are reflected in the balance sheets in future policy benefits and other policyholders’ liabilities. The amounts for the ceded contracts are reflected in the balance sheets in amounts due from reinsurers. Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature Three and Nine Months Ended September 30, 2022 and 2021 GMDB GMIB Direct Ceded Direct Ceded (in millions) Balance, July 1, 2022 $ 6 $ (6) $ 2 $ (1) Paid guarantee benefits — — — — Other changes in reserve 1 (1) — — Balance, September 30, 2022 $ 7 $ (7) $ 2 $ (1) Balance, July 1, 2021 $ 2 $ (2) $ 1 $ (1) Paid guarantee benefits — — — — Other changes in reserve — — (1) 1 Balance, September 30, 2021 $ 2 $ (2) $ — $ — GMDB GMIB Direct Ceded Direct Ceded (in millions) Balance, January 1, 2022 $ 5 $ (5) $ 1 $ (1) Paid guarantee benefits — — — — Other changes in reserve 2 (2) 1 — Balance, September 30, 2022 $ 7 $ (7) $ 2 $ (1) Balance, January 1, 2021 $ 4 $ (4) $ 1 $ (1) Paid guarantee benefits — — — — Other changes in reserve (2) 2 (1) 1 Balance, September 30, 2021 $ 2 $ (2) $ — $ — Liabilities for Embedded and Freestanding Insurance Related Derivatives The liability for the GMxB derivative features and the liability for MSO and IUL indexed features are considered embedded or freestanding insurance derivatives and are reported at fair value. For the fair value of the assets and liabilities associated with these embedded or freestanding insurance derivatives, see Note 6 of the Notes to these Financial Statements. Account Values and Net Amount at Risk Account Values and NAR for direct variable annuity contracts in force with GMDB and GMIB features as of September 30, 2022 are presented in the following tables by guarantee type. For contracts with the GMDB feature, the NAR in the event of death is the amount by which the GMDB feature exceeds the related Account Values. For contracts with the GMIB feature, the NAR in the event of annuitization is the amount by which the present value of the GMIB benefits exceed the related Account Values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB features may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive. Direct Variable Annuity Contracts with GMDB and GMIB Features as of September 30, 2022 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMDB features Account Values invested in: General Account $ — $ — $ — $ — $ — Separate Accounts 398 107 — — 505 Total Account Values $ 398 $ 107 $ — $ — $ 505 NAR, gross $ 68 $ 18 $ — $ — $ 86 NAR, net of amounts reinsured $ 68 $ 18 $ — $ — $ 86 Average attained age of policyholders (in years) 60.5 62.4 — — 60.9 Percentage of policyholders over age 70 12.3 % 16.0 % —% —% 13.1 % Range of contractually specified interest rates N/A N/A N/A T+ 200bps T+ 200bps Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ — $ — $ — Separate Accounts — — 497 — 497 Total Account Values $ — $ — $ 497 $ — $ 497 NAR, gross (1) $ — $ — $ — $ — $ — NAR, net of amounts reinsured (1) $ — $ — $ — $ — $ — Average attained age of policyholders (in years) N/A N/A 64.5 — 64.5 Weighted average years remaining until annuitization N/A N/A 9.7 — 9.7 Range of contractually specified interest rates N/A N/A T+200bp N/A T+ 200bps ____________ (1) Amounts reported for NAR are $0 million as the values are less than $1 million at September 30, 2022. Separate Accounts Investments by Investment Category Underlying Variable Annuity Contracts with GMDB and GMIB Features The total Account Values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option, which is part of the General Account and variable investment options that invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB features. The investment performance of the assets impacts the related Account Values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive. Investment in Variable Insurance Trust Mutual Funds September 30, 2022 December 31, 2021 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 37 $ 7 $ 27 $ 5 Fixed income 9 2 6 2 Balanced 456 488 238 263 Other 3 — 1 — Total $ 505 $ 497 $ 272 $ 270 Hedging Programs for GMDB and GMIB Features The Company has a program intended to hedge certain risks associated first with the GMDB feature and with the GMIB feature of the Retirement Cornerstone series of variable annuity products.This program utilizes derivative contracts, such as exchange-traded equity and interest rate futures contracts as well as equity options, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in the capital markets. At the present time, this program hedges certain economic risks on these products to the extent such risks are not externally reinsured. These programs do not qualify for hedge accounting treatment. Therefore, gains (losses) on the derivatives contracts used in these programs, including current period changes in fair value, are recognized in net derivative gains (losses) in the period in which they occur, and may contribute to income (loss) volatility. Variable and Interest-Sensitive Life Insurance Policies - NLG The NLG feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The NLG remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the balance sheets, is summarized in the table below. 2022 2021 Direct Liability Reinsurance Ceded Net Direct Liability Reinsurance Ceded Net (in millions) Balance, July 1, $ 7 $ (3) $ 4 $ 6 $ (3) $ 3 Paid guarantee benefits — — — — — — Other changes in reserve — — — — — — Balance, September 30, $ 7 $ (3) $ 4 $ 6 $ (3) $ 3 Balance, January 1, $ 6 $ (3) $ 3 $ 6 $ (3) $ 3 Paid guarantee benefits — — — — — — Other changes in reserve 1 — 1 — — — Balance, September 30, $ 7 $ (3) $ 4 $ 6 $ (3) $ 3 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Fair value measurements are required on a non-recurring basis for certain assets only when an impairment or other events occur. As of September 30, 2022 and December 31, 2021, no assets or liabilities were required to be measured at fair value on a non-recurring basis. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below. Fair Value Measurements as of September 30, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 2,066 $ 17 $ 2,083 U.S. Treasury, government and agency — 14 — 14 States and political subdivisions — 32 — 32 Foreign governments — — — — Asset-backed (2) — 50 — 50 Commercial mortgage-backed — 65 — 65 Total fixed maturities, AFS — 2,227 17 2,244 Other equity investments — 19 — 19 Other invested assets: Options — (1) — (1) Total other invested assets — (1) — (1) Cash equivalents 25 — — 25 Separate Accounts assets (3) 3,009 7 — 3,016 Total Assets $ 3,034 $ 2,252 $ 17 $ 5,303 Liabilities: GMxB derivative features’ liability $ — $ — $ (9) $ (9) MSO and IUL indexed features’ liability — 30 — 30 Total Liabilities $ — $ 30 $ (9) $ 21 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. (3) Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $1 million. Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 2,351 $ 11 $ 2,362 U.S. Treasury, government and agency — 66 — 66 States and political subdivisions — 34 — 34 Asset-backed (2) — 30 — 30 Commercial mortgage-backed — 80 — 80 Total fixed maturities, AFS — 2,561 11 2,572 Other equity investments — 23 — 23 Other invested assets: Options — 3 — 3 Total other invested assets — 3 — 3 Cash equivalents 107 — — 107 Separate Accounts assets 3,384 7 — 3,391 Total Assets $ 3,491 $ 2,594 $ 11 $ 6,096 Liabilities: GMxB derivative features’ liability $ — $ — $ — $ — MSO and IUL indexed features’ liability — 132 — 132 Total Liabilities $ — $ 132 $ — $ 132 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. Public Fixed Maturities The fair values of the Company’s public fixed maturities are generally based on prices obtained from independent valuation service providers and for which the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, the Company ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Private Fixed Maturities The fair values of the Company’s private fixed maturities are determined from prices obtained from independent valuation service providers. Prices not obtained from an independent valuation service provider are determined by using a discounted cash flow model or a market comparable company valuation technique. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model or a market comparable company valuation technique may also incorporate unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made. Freestanding Derivative Positions The net fair value of the Company’s freestanding derivative positions as disclosed in Note 4 of the Notes to these Financial Statements are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including overnight index swap curves, and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable. Level Classifications of the Company’s Financial Instruments Financial Instruments Classified as Level 1 Investments classified as Level 1 primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less and are carried at cost as a proxy for fair value measurement due to their short-term nature. Financial Instruments Classified as Level 2 Investments classified as Level 2 are measured at fair value on a recurring basis and primarily include U.S. government and agency securities and certain corporate debt securities, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. The Company’s AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors. Certain Company products, such as IUL and the MSO fund available in some life contracts offer investment options which permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options, which depending on the product and on the index selected can currently have one, three, five or six year terms, provide for participation in the performance of specified indices, ETF or commodity price movement up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g., holding these segments for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices, ETF or commodity prices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are accounted for as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers. Financial Instruments Classified as Level 3 The Company’s investments classified as Level 3 primarily include corporate debt securities, such as private fixed maturities and asset-backed securities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification are fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data. The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. The GMIB NLG feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates applied to the contract’s benefit base if and when the contract account value is depleted and the NLG feature is activated. The valuations of the GMxB derivative features liability incorporate significant non-observable assumptions related to policyholder behavior, risk margins and and equity projections of Separate Account funds. The credit risk of the Company is considered in determining the fair values of its GMxB derivative features liability positions. Incremental adjustment to the U.S. Treasury curve for non-performance risk is made to the fair values of the liabilities and GMIB NLG feature to reflect the claims-paying ratings of the Company. Equity and fixed income volatilities were modeled to reflect current market volatilities. Due to the unique, long duration of the GMIB NLG feature, adjustments were made to the equity volatilities to remove the illiquidity bias associated with the longer tenors and risk margins were applied to the non-capital markets inputs to the GMIB NLG valuations. Lapse rates are adjusted at the contract level based on a comparison of the actuarial calculated guaranteed values and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. For valuing the embedded derivative, lapse rates vary throughout the period over which cash flows are projected. Transfers of Financial Instruments Between Levels 2 and 3 During the nine months ended September 30, 2022, there were $5 million AFS fixed maturities transferred out of Level 3 and into Level 2 or AFS fixed maturities transferred out of Level 2 and into Level 3. These transfers in the aggregate represent approximately 1.3% of total equity as of September 30, 2022. During the nine months ended September 30, 2021, there were no fixed maturities transferred from Level 2 into the Level 3 classification. The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the three and nine months ended September 30, 2022 and 2021, respectively. Level 3 Instruments - Fair Value Measurements Corporate GMxB Derivative Features Liability (in millions) Balance, July 1, 2022 $ 16 $ 9 Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — Net derivative gains (losses) (1) — 2 Total realized and unrealized gains (losses) — 2 Other comprehensive income (loss) — — Purchases 1 (2) Sales — — Transfers into Level 3 (1) — — Transfers out of Level 3 (1) — — Balance, September 30, 2022 $ 17 $ 9 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period $ — $ 2 Corporate GMxB Derivative Features Liability (in millions) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period. $ — $ — Balance, July 1, 2021 $ 11 $ — Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — Net derivative gains (losses) (1) — — Total realized and unrealized gains (losses) — — Other comprehensive income (loss) — — Purchases 2 — Sales — — Transfers into Level 3 (1) — — Transfers out of Level 3 (1) — — Balance, September 30, 2021 $ 13 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period $ — $ — Corporate GMxB Derivative Features Liability (in millions) Balance, January 1, 2022 $ 11 $ — Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — Net derivative gains (losses) (1) — 12 Total realized and unrealized gains (losses) — 12 Other comprehensive income (loss) (1) — Purchases 13 (3) Sales (1) — Transfers into Level 3 (1) — — Transfers out of Level 3 (1) (5) — Balance, September 30, 2022 $ 17 $ 9 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period $ — $ 12 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period. $ (1) $ — Balance, January 1, 2021 $ 14 $ — Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — Net derivative gains (losses) (1) — — Total realized and unrealized gains (losses) — — Other comprehensive income (loss) — — Purchases 2 — Sales (3) — Transfers into Level 3 (1) — — Transfers out of Level 3 (1) — — Balance, September 30, 2021 $ 13 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period $ — $ — ____________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. Quantitative and Qualitative Information about Level 3 Fair Value Measurements The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of September 30, 2022 and December 31, 2021, respectively. Quantitative Information about Level 3 Fair Value Measurements as of September 30, 2022 Fair Valuation Technique Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, AFS: Fair Valuation Technique Significant Range Weighted Average (in millions) Corporate $ 4 Matrix pricing Spread over Benchmark 3 bps - 3 bps 3 bps Liabilities: GMxB Derivative Features Liability $ (9) Discounted cash flow Non-performance risk — — Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2021 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 9 Matrix pricing model Spread over benchmark 70 bps - 145 bps 104 bps Level 3 Financial Instruments for which Quantitative Inputs are Not Available Certain Privately Placed Debt Securities with Limited Trading Activity Excluded from the tables above as of September 30, 2022 and December 31, 2021, respectively, are approximately $13 million and $2 million of Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. These investments primarily consist of certain privately placed debt securities with limited trading activity, and their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. Significant increases or decreases in the fair value amounts received from these pricing sources may result in the Company’s reporting significantly higher or lower fair value measurements for these Level 3 investments. • The fair value of private placement securities is determined by application of a matrix pricing model or a market comparable company value technique. The significant unobservable input to the matrix pricing model valuation technique is the spread over the industry-specific benchmark yield curve. Generally, an increase or decrease in spreads would lead to directionally inverse movement in the fair value measurements of these securities. The significant unobservable input to the market comparable company valuation technique is the discount rate. Generally, a significant increase (decrease) in the discount rate would result in significantly lower (higher) fair value measurements of these securities. GMxB Derivative Features Liability Significant unobservable inputs with respect to the fair value measurement of the Level 3 liabilities identified in the table above are developed using Company data. Fair value measurement of the GMIB liabilities includes dynamic lapse and GMIB utilization assumptions whereby projected contractual lapses and GMIB utilization reflect the projected net amount of risks of the contract. As the net amount of risk of a contract increases, the assumed lapse rate decreases and the GMIB utilization increases. Increases in volatility would increase the asset and liabilities. The significant unobservable inputs used in the fair value measurement of the Company’s GMIB NLG liability are lapse rates, withdrawal rates, GMIB utilization rates, adjustment for non-performance risk and NLG forfeiture rates. NLG forfeiture rates are caused by excess withdrawals above the annual GMIB accrual rate that cause the NLG to expire. Significant decreases in lapse rates, NLG forfeiture rates, adjustment for non-performance risk and GMIB utilization rates would tend to increase the GMIB NLG liability, while decreases in withdrawal rates and volatility rates would tend to decrease the GMIB NLG liability. Carrying Value of Financial Instruments Not Otherwise Disclosed in Note 3 and Note 4 of the Notes to these Financial Statements The carrying values and fair values as of September 30, 2022 and December 31, 2021 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Financial Statements are presented in the table below. Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) September 30, 2022: Mortgage loans on real estate $ 17 $ — $ — $ 15 $ 15 Policy loans $ 250 $ — $ — $ 291 $ 291 Policyholders’ liabilities: Investment contracts $ 118 $ — $ — $ 108 $ 108 December 31, 2021: Mortgage loans on real estate $ 17 $ — $ — $ 18 $ 18 Policy loans $ 238 $ — $ — $ 292 $ 292 Policyholders’ liabilities: Investment contracts $ 120 $ — $ — $ 124 $ 124 Mortgage Loans on Real Estate Fair values for commercial mortgage loans on real estate are measured by discounting future contractual cash flows to be received on the mortgage loan using interest rates at which loans with similar characteristics and credit quality would be made. The discount rate is derived based on the appropriate U.S. Treasury rate with a like term to the remaining term of the loan to which a spread reflective of the risk premium associated with the specific loan is added. Fair values for mortgage loans anticipated to be foreclosed and problem mortgage loans are limited to the fair value of the underlying collateral, if lower. Policy Loans The fair value of policy loans is calculated by discounting expected cash flows based upon the U.S. Treasury yield curve and historical loan repayment patterns. Policyholder Liabilities - Investment Contracts and Separate Accounts Liabilities The fair values for deferred annuities and certain annuities, which are included in policyholders’ account balances and liabilities for investment contracts with fund investments in Separate Accounts are estimated using projected cash flows discounted at rates reflecting current market rates. Significant unobservable inputs reflected in the cash flows include lapse rates and withdrawal rates. Incremental adjustments may be made to the fair value to reflect non-performance risk. Certain other products such as the Company’s association plans contracts, supplementary contracts not involving life contingencies, Access Accounts and Escrow Shield Plus product reserves are held at book value. Financial Instruments Exempt from Fair Value Disclosure or Otherwise Not Required to be Disclosed Exempt from Fair Value Disclosure Requirements Certain financial instruments are exempt from the requirements for fair value disclosure, such as insurance liabilities other than financial guarantees and investment contracts and pension and other postretirement obligations. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESIncome tax expense for the three and nine months ended September 30, 2022 and 2021 was computed using an estimated annual effective tax rate (“ETR”), with discrete items recognized in the period in which they occur. The estimated ETR is revised, as necessary, at the end of successive interim reporting periods. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSThe Company did not enter into any new significant transactions with related parties during the three and nine months ended September 30, 2022. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
EQUITY | EQUITY AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of September 30, 2022 and December 31, 2021 follow: September 30, December 31, 2022 2021 (in millions) Unrealized gains (losses) on investments $ (308) $ 86 Accumulated other comprehensive income (loss) $ (308) $ 86 The components of OCI, net of taxes for the three and nine months ended September 30, 2022 and 2021, follow: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (116) $ (15) $ (451) $ (74) (Gains) losses reclassified into net income (loss) during the period (1) — 1 3 1 Net unrealized gains (losses) on investments (116) (14) (448) (73) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 9 9 54 34 Other comprehensive income (loss), net of adjustments (net of deferred income tax expense (benefit) of $(28), $(1), $(105), and $(11)) (107) (5) (394) (39) Other comprehensive income (loss) $ (107) $ (5) $ (394) $ (39) ____________ (1) See “Reclassification adjustment” in Note 3 of the Notes to these Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $0 million, $(1) million, $(1) million and $0 million for the three and nine months ended September 30, 2022 and 2021, respectively. Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and credit losses of AFS securities and are included in total investment gains (losses), net on the statements of income (loss). Amounts presented in the table above are net of tax. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Litigation Litigation, regulatory and other loss contingencies arise in the ordinary course of the Company’s activities. The Company is a defendant in litigation matters arising from the conduct of its business. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek, or they may be required only to state an amount sufficient to meet a court’s jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. The outcome of a litigation or regulatory matter is difficult to predict, and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period. For some matters, the Company is able to estimate a range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses . As of September 30, 2022 , the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $5 million. For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company’s accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews. Guarantees and Other Commitments The Company has no outstanding commitments under existing mortgage loans or mortgage loan commitment agreements at September 30, 2022. |
UNPAID CLAIM AND CLAIM EXPENSES
UNPAID CLAIM AND CLAIM EXPENSES | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
UNPAID CLAIM AND CLAIM EXPENSES | UNPAID CLAIM AND CLAIM EXPENSESThe liability for unpaid claims and claim expenses as of September 30, 2022 and 2021 is as follows: Liability for Unpaid Claims and Claim Expenses September 30, 2022 2021 (in millions) Gross Balance at January 1, $ 78 $ 40 Less Reinsurance 23 15 Net Balance at January 1, $ 55 $ 25 Incurred Claims (net) Related to: Current Period $ 144 $ 99 Prior Period (6) 16 Total Incurred $ 138 $ 115 Paid Claims (net) Related to: Current Period $ 91 $ 69 Prior Period 30 18 Total Paid $ 121 $ 87 Net balance at September 30, $ 72 $ 53 Add Reinsurance 32 19 Gross Balance at September 30, $ 104 $ 72 |
REVISION OF PREVIOUSLY ISSUED F
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS During the quarter ended June 30, 2022, the Company identified an error in its statement of cash flows for the years ended December 31, 2021 and 2020, respectively. Specifically, the Company incorrectly classified certain deposits and withdrawals of policyholders’ account balances as operating net cash inflows rather than financing net cash inflows. In connection with the Company’s evaluation of this cash flow error during the quarter ended June 30, 2022, management, in accordance SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements”, determined to revise previously issued financial statements to correctly present cash flows associated with deposits and withdrawals of policyholders’ account balances. In addition, during the quarter ended September 30, 2022, the Company identified additional errors primarily related to the calculation of the deferred cost of reinsurance amortization. Specifically, the deferred cost of reinsurance as reflected on the balance sheet was overstated and operating expenses (deferred cost amortization) was understated commencing in the quarter ended December 31, 2019 with a cumulative impact of $14 million pre-tax. In accordance SAB No. 108, management evaluated the impact of this error and concluded that previously issued financial statements were not materially misstated; however, the cumulative impact would be material to the quarter ended September 30, 2022 and annual period ending December 31, 2022 and accordingly, determined to revise previously reported financial statements for years ended December 31, 2021, 2020 and 2019 and for the three-month periods ended March 31, 2022 and 2021 and June 30, 2022 and 2021 and for the the six-months periods ended June 30, 2022 and June 2021. As a result of the determination to revise previously issued financial statements for the amortization matter discussed above, management also has corrected other previously identified but uncorrected errors and errors recorded in incorrect periods including, (a) balance sheet gross up errors resulting from incorrectly calculating reserves relating to business which has been 100% ceded to reinsurers resulting in corrections to Future policy benefits and other policyholders’ liabilities and Amounts due from reinsurers; (b) the classification of a preferred stock investment of $25M from available for sale debt securities to equity securities and present previously recorded unrealized losses as net investment income (loss) rather than as a component of other comprehensive income in the amount of $2M; and, (c) other immaterial errors. The following tables present line items for prior period impacted financial statements that have been affected by the errors discussed above: December 31, 2021 December 31, 2020 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) (in millions) Balance Sheets: Fixed maturities available for sale, at fair value 2,572 — 2,572 2,445 (25) 2,420 Other equity investments 23 — 23 — 25 25 Amounts due from reinsurers 1,136 (13) 1,123 1,186 (17) 1,169 Current and deferred income taxes 15 2 17 27 1 28 Other assets 57 (11) 46 81 (6) 75 Total Assets 8,235 (22) 8,213 7,306 (22) 7,284 Future policy benefits and other policyholders’ liabilities 470 (13) 457 415 (17) 398 Total Liabilities 7,527 (13) 7,514 6,520 (17) 6,503 Additional paid-in capital 679 1 680 692 — 692 Accumulated deficit (60) (10) (70) (47) (3) (50) Accumulated other comprehensive income (loss) 86 — 86 138 (2) 136 Total Equity 708 (9) 699 786 (5) 781 Total Liabilities and Equity 8,235 (22) 8,213 7,306 (22) 7,284 March 31, 2022 June 30, 2022 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) (in millions) Balance Sheets: Amounts due from reinsurers 1,117 3 1,120 1,101 3 1,104 Current and deferred income taxes 58 2 60 94 1 95 Other assets 67 (12) 55 55 (13) 42 Total Assets 8,145 (7) 8,138 7,706 (9) 7,697 Future policy benefits and other policyholders’ liabilities 527 3 530 592 3 595 Total Liabilities 7,605 3 7,608 7,315 3 7,318 Common Stock 3 — 3 3 — 3 Additional paid-in capital 680 1 681 681 1 682 Treasury shares, at cost — — — — — — Accumulated deficit (79) (11) (90) (92) (13) (105) Total Equity 540 (10) 530 391 (12) 379 Total Liabilities and Equity 8,145 (7) 8,138 7,706 (9) 7,697 Year Ended December 31, 2020 Year Ended December 31, 2019 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Income (Loss) Net investment income (loss) 83 3 86 71 — 71 Total revenues 443 3 446 396 — 396 BENEFITS AND OTHER DEDUCTIONS Policyholders' benefits 184 — 184 107 (1) 106 Amortization of deferred policy acquisition costs 31 — 31 92 (1) 91 Other operating costs and expenses 83 4 87 99 2 101 Total benefits and deductions 481 4 485 454 — 454 Income (loss) from continuing operations, before income taxes (38) (1) (39) (58) — (58) Income tax (expense) benefit from continuing operations 29 — 29 13 — 13 Net income (loss) from continuing operations (9) (1) (10) (45) — (45) Net income (loss) $ (9) $ (1) $ (10) $ (45) $ — $ (45) Year Ended December 31, 2021 As Previously Impact of Revisions As Revised (in millions) Statements of Income (Loss) Net investment income (loss) 90 (2) 88 Total revenues 535 (2) 533 BENEFITS AND OTHER DEDUCTIONS Compensation and benefits 35 1 36 Other operating costs and expenses 96 6 102 Total benefits and deductions 553 7 560 Income (loss) from continuing operations, before income taxes (18) (9) (27) Income tax (expense) benefit from continuing operations 5 2 7 Net income (loss) from continuing operations (13) (7) (20) Net income (loss) $ (13) $ (7) $ (20) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Income (Loss) Net investment income (loss) 20 — 20 24 (2) 22 Total revenues 139 — 139 130 (2) 128 BENEFITS AND OTHER DEDUCTIONS Other operating costs and expenses 21 1 22 20 1 21 Total benefits and deductions 161 1 162 129 1 130 Income (loss) from continuing operations, before income taxes (22) (1) (23) 1 (3) (2) Income tax (expense) benefit from continuing operations 3 — 3 — — — Net income (loss) from continuing operations (19) (1) (20) 1 (3) (2) Net income (loss) $ (19) $ (1) $ (20) $ 1 $ (3) $ (2) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Income (Loss) Net investment income (loss) 20 — $ 20 44 (2) $ 42 Total revenues 139 — 139 269 (2) 267 BENEFITS AND OTHER DEDUCTIONS Other operating costs and expenses 22 1 23 42 2 44 Total benefits and deductions 157 1 158 286 2 288 Income (loss) from continuing operations, before income taxes (18) (1) (19) (17) (4) (21) Income tax (expense) benefit from continuing operations 4 — 4 4 — 4 Net income (loss) from continuing operations (14) (1) (15) (13) (4) (17) Net income (loss) $ (14) $ (1) $ (15) $ (13) $ (4) $ (17) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) BENEFITS AND OTHER DEDUCTIONS Other operating costs and expenses 22 1 23 43 2 45 Total benefits and deductions 177 1 178 338 2 340 Income (loss) from continuing operations, before income taxes (12) (1) (13) (34) (2) (36) Income tax (expense) benefit from continuing operations (1) (1) (2) 2 (1) 1 Net income (loss) from continuing operations (13) (2) (15) (32) (3) (35) Net income (loss) $ (13) $ (2) $ (15) $ (32) $ (3) $ (35) Year Ended December 31, 2021 2020 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ (13) $ (7) $ (20) $ (9) $ (1) $ (10) Change in unrealized gains (losses), net of reclassification adjustment (52) 2 (50) 90 (2) 88 Other comprehensive income (52) 2 (50) 90 (2) 88 Comprehensive income (loss) $ (65) $ (5) $ (70) $ 81 $ (3) $ 78 Three Months Ended March 31, 2022 2021 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ (19) $ (1) $ (20) $ 1 $ (3) $ (2) Change in unrealized gains (losses), net of reclassification adjustment (150) — (150) (73) 2 (71) Other comprehensive income (150) — (150) (73) 2 (71) Comprehensive income (loss) $ (169) $ (1) $ (170) $ (72) $ (1) $ (73) Three Months Ended June 30, Six Months Ended June 30, 2022 2022 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ (13) $ (2) $ (15) $ (32) $ (3) $ (35) Comprehensive income (loss) $ (150) $ (2) $ (152) $ (319) $ (3) $ (322) Three Months Ended June 30, Six Months Ended June 30, 2021 2021 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ (14) $ (1) $ (15) $ (13) $ (4) $ (17) Change in unrealized gains (losses), net of reclassification adjustment 37 — 37 (36) 2 (34) Other comprehensive income 37 — 37 (36) 2 (34) Comprehensive income (loss) $ 23 $ (1) $ 22 $ (49) $ (2) $ (51) Twelve Months Ended December 31, 2019 Statements of Equity: As Previously Impact of Revision As Revised (in millions) Accumulated Deficit, beginning of year 7 (2) 5 Accumulated Deficit, end of year (38) (2) (40) Total equity, end of year $ 416 $ (2) $ 414 Year Ended December 31, Year Ended December 31, 2021 2020 Statements of Equity: As Previously Impact of Revision As Revised As Previously Impact of Revision As Revised (in millions) Other (2) 1 (1) 4 — 4 Additional paid-in capital, end of year 679 1 680 — 692 — — — 692 Accumulated Deficit, beginning of year (47) (3) (50) (38) (2) (40) Net income (loss) (13) (7) (20) (9) (1) (10) Accumulated Deficit, end of year (60) (10) — (70) — (47) — (3) (50) Accumulated other comprehensive income (loss), beginning of year 138 (2) 136 48 — 48 Other comprehensive income (loss) (52) 2 (50) 90 (2) 88 Accumulated other comprehensive income (loss), end of year 86 — 86 138 (2) 136 Total equity, end of year $ 708 $ (9) $ 699 $ 786 $ (5) $ 781 Three Months Ended March 31, Three Months Ended March 31, 2022 2021 Statements of Equity: As Previously Impact of Revision As Revised As Previously Impact of Revision As Revised (in millions) Additional paid-in capital, beginning of year 679 1 680 692 — 692 Additional paid-in capital, end of period 680 1 681 — 693 — — — 693 Accumulated Deficit, beginning of year (60) (10) (70) (47) (3) (50) Net income (loss) (19) (1) (20) 1 (3) (2) Accumulated Deficit, end of period (79) (11) — (90) — (46) — (6) (52) Accumulated other comprehensive income (loss), beginning of year 86 — 86 138 (2) 136 Other comprehensive income (loss) (150) — (150) (73) 2 (71) Accumulated other comprehensive income (loss), end of period (64) — (64) 65 — 65 — Total equity, end of period $ 540 $ (10) $ 530 $ 715 $ (6) $ 709 Three Months Ended June 30, Three Months Ended June 30, 2022 2021 Statements of Equity: As Previously Impact of Revision As Revised As Previously Impact of Revision As Revised (in millions) Additional paid-in capital, beginning of year 680 1 681 693 — 693 Additional paid-in capital, end of period 681 1 682 628 — 628 Accumulated Deficit, beginning of year (79) (11) (90) (46) (6) (52) Net income (loss) (13) (2) (15) (14) (1) (15) Accumulated Deficit, end of period (92) (13) (105) (60) (6) -66228709 (66) Total equity, end of period $ 391 $ (12) $ 379 $ 673 $ (6) -60 $ 667 Six Months Ended June 30, Six Months Ended June 30, 2022 2021 Statements of Equity: As Previously Impact of Revision As Revised As Previously Impact of Revision As Revised (in millions) Additional paid-in capital, beginning of year 679 1 680 692 — 692 Additional paid-in capital, end of year 681 1 682 628 — 628 Accumulated Deficit, beginning of year (60) (10) (70) (47) (3) (50) Net income (loss) (32) (3) (35) (13) (4) (17) Accumulated Deficit, end of year (92) (13) (92) (105) (60) (6) (66) Accumulated other comprehensive income (loss), beginning of year 86 — 86 138 (2) 136 Other comprehensive income (loss) (287) — (287) (36) 2 (34) Total equity, end of year $ 391 $ (12) $ 379 $ 673 $ (6) $ 667 Year End Dec 31, 2019 As Reported Impact of Revision As Revised (in millions) Statement of Cash Flows: Cash flow from operating activities: Amortization and depreciation 99 (1) 98 Future policy benefits (20) (1) (21) Other, net $ 5 $ 2 7 Net cash provided by (used in) operating activities $ (341) $ — $ (341) Year End Dec 31, 2021 Year End Dec. 31, 2020 As Reported Impact of Revision As Revised As Reported Impact of Revision As Revised (in millions) Statements of Cash Flows: Cash flow from operating activities: Net income (loss) (13) (7) (20) (9) (1) (10) Future policy benefits 20 4 24 34 (17) 17 Reinsurance recoverable 19 (139) (120) 19 (127) (108) Current and deferred income taxes 25 (1) 24 (28) — (28) Other, net $ (13) $ 9 (4) $ (10) $ 1 (9) Net cash provided by (used in) operating activities $ (250) $ (135) $ (385) $ (204) $ (144) $ (348) Cash flows from financing activities: Deposits 776 (140) 636 712 (134) 578 Withdrawals (364) 275 (89) (357) 279 (78) Net cash provided by (used in) financing activities $ 415 $ 135 $ 550 $ 667 $ 144 $ 811 Three Months March 31, 2022 Three Months March 31, 2021 As Reported Impact of Revision As Revised As Reported Impact of Revision As Revised (in millions) Statement of Cash Flows: Cash flow from operating activities: Net income (loss) (19) (1) $ (20) 1 (3) $ (2) Current and deferred income taxes (3) — $ (3) 30 — 30 Other, net 73 1 $ 74 8 3 11 Net cash provided by (used in) operating activities $ 9 $ — $ 9 $ (11) $ — $ (11) Six Months June 30, 2022 Six Months June 30, 2021 As Reported Impact of Revision As Revised As Reported Impact of Revision As Revised (in millions) Statement of Cash Flows: Cash flow from operating activities: Net income (loss) (32) (3) (35) (13) (4) (17) Future policy benefits 4 13 17 12 17 29 Reinsurance recoverable 1 (13) (12) (58) (17) (75) Current and deferred income taxes (2) 1 (1) 26 — 26 Other, net $ 104 $ 2 106 $ (2) $ 4 2 Net cash provided by (used in) operating activities $ (39) $ — $ (39) $ (144) $ — $ (144) |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim financial statements (the “financial statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to the Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The terms “third quarter 2022” and ”third quarter 2021” refer to the three months ended September 30, 2022 and 2021, respectively. The terms “first nine months of 2022” and “first nine months of 2021” refer to the nine months ended September 30, 2022 and 2021, respectively. |
Recent Accounting Pronouncements and Future Adoption of New Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of September 30, 2022, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12 : Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be a decrease to total equity as of September 30, 2022. The impact on total equity is mostly driven by the DAC and URR updates to amortize DAC and URR on a constant level basis, remove amortization associated with unrealized gains or losses, and excluding future deferrals in the calculation of the DAC and URR balances. |
Recognition of Investment Management and Service Fees | Recognition of Investment Management and Service Fees Reported as investment management and service fees in the Company’s statements of income (loss) are administrative fees earned by the Company related to administrative services provided to EIMG and EIM related to the establishment and maintenance of the Separate Accounts, shareholder servicing, customer support, and other similar services. Accordingly, these administrative service base fees are recorded over time as services are performed and entitle the Company to variable consideration. Base fees, generally calculated as a percentage of AUM, are recognized as revenue at month-end when the transaction price no longer is variable and the value of the consideration is determined. These fees are not subject to claw back and there is minimal probability that a significant reversal of the revenue recorded will occur. |
Assumption Updates and Model Changes | Assumption Updates and Model Changes The Company conducts its annual review of its assumptions and models during the third quarter of each year. The annual review encompasses assumptions underlying the valuation of unearned revenue liabilities, embedded derivatives for our insurance business, liabilities for future policyholder benefits, DAC and DSI assets. However, the Company updates its assumptions as needed in the event it becomes aware of economic conditions or events that could require a change in assumptions that it believes may have a significant impact to the carrying value of product liabilities and assets and consequently materially impact its earnings in the period of the change. Impact of Assumption Updates The net impact of assumption changes in the three and nine months ended September 30, 2022 decreased policy charges and fee income by $7 million, decreased policyholders’ benefits by $10 million, and decreased amortization of DAC by $14 million. This resulted in an increase in income (loss) from operations, before income taxes of $17 million and increased net income (loss) by $13 million. The net impact of assumption changes in the three and nine months ended September 30, 2021 increased policy charges and fee income by $2 million, policyholders’ benefits by $10 million, and amortization of DAC by $4 million. This resulted in a decrease in income (loss) from operations, before income taxes of $12 million and decreased net income (loss) by $9 million. |
Revision of Prior Period Financial Statements | Revision of Previously Issued Financial Statements The Company identified an error in its previously issued financial statements specifically related to the amortization of the cost of reinsurance asset. The impact of this error to prior periods financial statements were not considered to be material. In addition, last quarter we identified an error in its previously issued financial statements specifically related to the preparation of the statement of cash flows. In order to improve the consistency and comparability of the financial statements, management revised the financial statements to include the revisions discussed herein. The impact of the errors to prior periods financial statements was not considered to be material. See Note 12 to the Notes to these Financial Statements for details of the revision. |
Fair Value Disclosures | U.S. GAAP establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2018-12 : Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be a decrease to total equity as of September 30, 2022. The impact on total equity is mostly driven by the DAC and URR updates to amortize DAC and URR on a constant level basis, remove amortization associated with unrealized gains or losses, and excluding future deferrals in the calculation of the DAC and URR balances. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Fixed Maturities by Classification | The following tables provide information relating to the Company’s fixed maturities classified as AFS. AFS Fixed Maturities by Classification Amortized Allowance for Credit Losses Gross Gross Fair Value (in millions) September 30, 2022: Fixed Maturities: Corporate (1) $ 2,492 $ — $ — $ 409 $ 2,083 U.S. Treasury, government and agency 15 — — 1 14 States and political subdivisions 41 — — 9 32 Foreign governments — — — — — Asset-backed (2) 54 — — 4 50 Commercial mortgage-backed 81 — — 16 65 Total at September 30, 2022 $ 2,683 $ — $ — $ 439 $ 2,244 December 31, 2021: Fixed Maturities: Corporate (1) $ 2,237 $ — $ 135 $ 10 $ 2,362 U.S. Treasury, government and agency 66 — 1 1 66 States and political subdivisions 31 — 3 — 34 Asset-backed (2) 30 — — — 30 Commercial mortgage-backed 80 — — — 80 Total at December 31, 2021 $ 2,444 $ — $ 139 $ 11 $ 2,572 ______________ (1) Corporate fixed maturities include both public and private issues. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities. and other asset types. |
Contractual Maturities of Available-for-Sale Fixed Maturities | The contractual maturities of AFS fixed maturities as of September 30, 2022 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Contractual Maturities of AFS Fixed Maturities Amortized Cost (Less Allowance for Credit Losses) Fair Value (in millions) September 30, 2022: Contractual maturities: Due in one year or less $ 34 $ 34 Due in years two through five 627 598 Due in years six through ten 908 772 Due after ten years 979 725 Subtotal 2,548 2,129 Asset-backed 54 50 Commercial mortgage-backed 81 65 Total at September 30, 2022 $ 2,683 $ 2,244 |
Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities for the three and nine months ended September 30, 2022 and 2021: Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Proceeds from sales $ — $ 71 $ 62 $ 100 Gross gains on sales $ — $ — $ — $ — Gross losses on sales $ — $ (1) $ 4 $ (1) Net change in Allowance for Credit and Intent to Sell losses $ — $ — $ — $ — |
AFS Fixed Maturities - Credit Loss Impairments | The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts. AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Balance, beginning of period $ — $ 2 $ 2 $ 2 Previously recognized impairments on securities that matured, paid, prepaid or sold — — (2) — Recognized impairments on securities impaired to fair value this period (1) — — — — Credit losses recognized this period on securities for which credit losses were not previously recognized — — — Additional credit losses this period on securities previously impaired — — — — Increases due to passage of time on previously recorded credit losses — — — — Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) — — — — Balance at September 30, $ — $ 2 $ — $ 2 ______________ (1) Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. |
Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities | The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI. Net Unrealized Gains (Losses) on AFS Fixed Maturities Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, July 1, 2022 $ (293) $ 119 $ (80) $ 53 $ (201) Net investment gains (losses) arising during the period (146) — — — (146) Reclassification adjustment: Included in net income (loss) — — — — — Other — — — — — Impact of net unrealized investment gains (losses) — 56 (45) 29 40 Net unrealized investment gains (losses) excluding credit losses (439) 175 (125) 82 (307) Net unrealized investment gains (losses) with credit losses — — — — — Balance, September 30, 2022 $ (439) $ 175 $ (125) $ 82 $ (307) Balance, July 1, 2021 $ 171 $ (82) $ 39 $ (27) $ 101 Net investment gains (losses) arising during the period (19) — — — (19) Reclassification adjustment: — — — — — Included in net income (loss) 1 — — — 1 Other (1) — — — — — Impact of net unrealized investment gains (losses) — 21 (10) 3 14 Net unrealized investment gains (losses) excluding credit losses 153 (61) 29 (24) 97 Net unrealized investment gains (losses) with credit losses — — — — — Balance, September 30, 2021 $ 153 $ (61) $ 29 $ (24) $ 97 Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2022 $ 128 $ (46) $ 28 $ (24) $ 86 Net investment gains (losses) arising during the period (570) — — — (570) Reclassification adjustment: Included in net income (loss) 3 — — — 3 Other — — — — — Impact of net unrealized investment gains (losses) — 221 (153) 106 174 Net unrealized investment gains (losses) excluding credit losses (439) 175 (125) 82 (307) Net unrealized investment gains (losses) with credit losses — — — — — Balance, September 30, 2022 $ (439) $ 175 $ (125) $ 82 $ (307) Net Unrealized Gains (Losses) on Investments DAC Policyholders’ Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2021 $ 246 $ (111) $ 37 $ (37) $ 135 Net investment gains (losses) arising during the period (93) — — — (93) Reclassification adjustment: Included in net income (loss) 3 — — — 3 Other (3) — — — (3) Impact of net unrealized investment gains (losses) — 50 (8) 13 55 Net unrealized investment gains (losses) excluding credit losses 153 (61) 29 (24) 97 Net unrealized investment gains (losses) with credit losses — — — — — Balance, September 30, 2021 $ 153 $ (61) $ 29 $ (24) $ 97 |
Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities | The following tables disclose the fair values and gross unrealized losses of the 861 issues as of September 30, 2022 and the 119 issues as of December 31, 2021 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded Less Than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) September 30, 2022: Fixed Maturities: Corporate $ 1,854 $ 320 $ 212 $ 89 $ 2,066 $ 409 U.S. Treasury, government and agency 14 1 — — 14 1 States and political subdivisions 30 8 1 1 31 9 Asset-backed 49 4 1 — 50 4 Commercial mortgage-backed 61 15 4 1 65 16 Total at September 30, 2022 $ 2,008 $ 348 $ 218 $ 91 $ 2,226 $ 439 December 31, 2021: Fixed Maturities: Corporate $ 243 $ 4 $ 111 $ 6 $ 354 $ 10 U.S. Treasury, government and agency 45 1 2 — 47 1 States and political subdivisions — — — — — — Asset-backed — — — — — — Commercial mortgage-backed — — — — — — Total at December 31, 2021 $ 288 $ 5 $ 113 $ 6 $ 401 $ 11 |
Unrealized and Realized Gains (Losses) from Equity Securities | The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and nine months ended September 30, 2022 and 2021. Unrealized and Realized Gains (Losses) from Equity Securities Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ (1) $ 1 $ (4) $ 3 Net investment gains (losses) recognized on securities sold during the period — — — — Unrealized and realized gains (losses) on equity securities $ (1) $ 1 $ (4) $ 3 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments by Category | The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments: The following table presents the gross notional amount and estimated fair value of the Company’s derivatives: Derivative Instruments by Category September 30, 2022 December 31, 2021 Fair Value Fair Value Notional Derivative Assets Derivative Notional Derivative Assets Derivative (in millions) Derivatives: (1) Equity contracts: Futures $ 223 $ — $ — $ 295 $ — $ — Options 51 1 2 59 8 5 Interest rate contracts: Futures 156 — — 120 — — Other contracts: Margin — 18 — — 18 — Collateral — 1 — — — 3 Total: 430 20 2 474 26 8 Embedded derivatives: GMxB derivative features liability (2) — — (9) — — — MSO and IUL indexed features (3) — — 30 — — 132 Total embedded derivatives — — 21 — — 132 Total derivative instruments $ 430 $ 20 $ 23 $ 474 $ 26 $ 140 ______________ (1) Reported in other invested assets in the balance sheets. (2) Reported in future policy benefits and other policyholders’ liabilities in the balance sheets. (3) Reported in policyholders’ account balances in the balance sheets. The following table presents the effects of derivative instruments on the statements of income and comprehensive income (loss). Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (in millions) Derivatives: Equity contracts: Futures $ (12) $ (85) Swaps — — Options (1) (4) Interest rate contracts: Futures (16) (40) Swaps — — Swaptions — — Credit contracts: Credit default swaps — — Currency contracts: Currency swaps — — Currency forwards — — Other contracts: Margin — — Collateral — — Total: (29) (129) Embedded Derivatives: GMxB derivative features liability 2 11 MSO and IUL indexed features 15 106 Total Embedded Derivatives 17 117 Total Derivatives instruments (1) $ (12) $ (12) ________ (1) Reported in net derivative gains (losses) in the statements of income (loss). Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 (in millions) Derivatives: Equity contracts: Futures $ 2 $ 39 Swaps — — Options — 2 Interest rate contracts: Futures (1) (1) Swaps — — Swaptions — — Credit contracts: Credit default swaps — — Currency contracts: Currency swaps — — Currency forwards — — Other contracts: Margin — — Collateral — — Total: 1 40 GMxB derivative features liability — — MSO and IUL indexed features (1) (43) Total Embedded Derivatives (1) (43) Total Derivatives instruments (1) $ — (3) ________ (1) Reported in net derivative gains (losses) in the statements of income (loss). |
Offsetting Financial Assets and Liabilities and Derivative Instruments | The following tables presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments as of September 30, 2022 and December 31, 2021: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of September 30, 2022 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (1) Net Amount (in millions) Assets: Derivative assets $ 20 $ 2 $ 18 $ — $ 18 Other financial assets 2 — 2 — 2 Other invested assets $ 22 $ 2 $ 20 $ — $ 20 Liabilities: Derivative liabilities $ 2 $ 2 $ — $ — $ — Other financial liabilities 204 — 204 — 204 Other liabilities $ 206 $ 2 $ 204 $ — $ 204 ______________ (1) Financial instruments sent (held). As of December 31, 2021 Gross Amount Recognized Gross Amount Offset in the Balance Sheets Net Amount Presented in the Balance Sheets Gross Amount not Offset in the Balance Sheets (1) Net Amount (in millions) Assets: Derivative assets $ 26 $ 8 $ 18 $ — $ 18 Other financial assets 1 — 1 — 1 Other invested assets $ 27 $ 8 $ 19 $ — $ 19 Liabilities: Derivative liabilities $ 8 $ 8 $ — $ — $ — Other financial liabilities 42 — 42 — 42 Other liabilities $ 50 $ 8 $ 42 $ — $ 42 ______________ (1) Financial instruments sent (held). |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
GMDB and GMIB Liabilities and Other Policyholder's Liabilities | Change in Liability for Variable Annuity Contracts with GMDB and GMIB Features and No NLG Feature Three and Nine Months Ended September 30, 2022 and 2021 GMDB GMIB Direct Ceded Direct Ceded (in millions) Balance, July 1, 2022 $ 6 $ (6) $ 2 $ (1) Paid guarantee benefits — — — — Other changes in reserve 1 (1) — — Balance, September 30, 2022 $ 7 $ (7) $ 2 $ (1) Balance, July 1, 2021 $ 2 $ (2) $ 1 $ (1) Paid guarantee benefits — — — — Other changes in reserve — — (1) 1 Balance, September 30, 2021 $ 2 $ (2) $ — $ — GMDB GMIB Direct Ceded Direct Ceded (in millions) Balance, January 1, 2022 $ 5 $ (5) $ 1 $ (1) Paid guarantee benefits — — — — Other changes in reserve 2 (2) 1 — Balance, September 30, 2022 $ 7 $ (7) $ 2 $ (1) Balance, January 1, 2021 $ 4 $ (4) $ 1 $ (1) Paid guarantee benefits — — — — Other changes in reserve (2) 2 (1) 1 Balance, September 30, 2021 $ 2 $ (2) $ — $ — |
Variable Annuity Contracts with GMDB and GMIB Features | Account Values and NAR for direct variable annuity contracts in force with GMDB and GMIB features as of September 30, 2022 are presented in the following tables by guarantee type. For contracts with the GMDB feature, the NAR in the event of death is the amount by which the GMDB feature exceeds the related Account Values. For contracts with the GMIB feature, the NAR in the event of annuitization is the amount by which the present value of the GMIB benefits exceed the related Account Values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB features may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive. Direct Variable Annuity Contracts with GMDB and GMIB Features as of September 30, 2022 Guarantee Type Return of Premium Ratchet Roll-Up Combo Total (in millions, except age and interest rate) Variable annuity contracts with GMDB features Account Values invested in: General Account $ — $ — $ — $ — $ — Separate Accounts 398 107 — — 505 Total Account Values $ 398 $ 107 $ — $ — $ 505 NAR, gross $ 68 $ 18 $ — $ — $ 86 NAR, net of amounts reinsured $ 68 $ 18 $ — $ — $ 86 Average attained age of policyholders (in years) 60.5 62.4 — — 60.9 Percentage of policyholders over age 70 12.3 % 16.0 % —% —% 13.1 % Range of contractually specified interest rates N/A N/A N/A T+ 200bps T+ 200bps Variable annuity contracts with GMIB features Account Values invested in: General Account $ — $ — $ — $ — $ — Separate Accounts — — 497 — 497 Total Account Values $ — $ — $ 497 $ — $ 497 NAR, gross (1) $ — $ — $ — $ — $ — NAR, net of amounts reinsured (1) $ — $ — $ — $ — $ — Average attained age of policyholders (in years) N/A N/A 64.5 — 64.5 Weighted average years remaining until annuitization N/A N/A 9.7 — 9.7 Range of contractually specified interest rates N/A N/A T+200bp N/A T+ 200bps ____________ (1) Amounts reported for NAR are $0 million as the values are less than $1 million at September 30, 2022. |
Investment in Variable Insurance Trust Mutual Funds | The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB features. The investment performance of the assets impacts the related Account Values and, consequently, the NAR associated with the GMDB and GMIB benefits and guarantees. Because the Company’s variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive. Investment in Variable Insurance Trust Mutual Funds September 30, 2022 December 31, 2021 Mutual Fund Type GMDB GMIB GMDB GMIB (in millions) Equity $ 37 $ 7 $ 27 $ 5 Fixed income 9 2 6 2 Balanced 456 488 238 263 Other 3 — 1 — Total $ 505 $ 497 $ 272 $ 270 |
No Lapse Guarantee Liabilities | The change in the NLG liabilities, reflected in future policy benefits and other policyholders’ liabilities in the balance sheets, is summarized in the table below. 2022 2021 Direct Liability Reinsurance Ceded Net Direct Liability Reinsurance Ceded Net (in millions) Balance, July 1, $ 7 $ (3) $ 4 $ 6 $ (3) $ 3 Paid guarantee benefits — — — — — — Other changes in reserve — — — — — — Balance, September 30, $ 7 $ (3) $ 4 $ 6 $ (3) $ 3 Balance, January 1, $ 6 $ (3) $ 3 $ 6 $ (3) $ 3 Paid guarantee benefits — — — — — — Other changes in reserve 1 — 1 — — — Balance, September 30, $ 7 $ (3) $ 4 $ 6 $ (3) $ 3 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below. Fair Value Measurements as of September 30, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 2,066 $ 17 $ 2,083 U.S. Treasury, government and agency — 14 — 14 States and political subdivisions — 32 — 32 Foreign governments — — — — Asset-backed (2) — 50 — 50 Commercial mortgage-backed — 65 — 65 Total fixed maturities, AFS — 2,227 17 2,244 Other equity investments — 19 — 19 Other invested assets: Options — (1) — (1) Total other invested assets — (1) — (1) Cash equivalents 25 — — 25 Separate Accounts assets (3) 3,009 7 — 3,016 Total Assets $ 3,034 $ 2,252 $ 17 $ 5,303 Liabilities: GMxB derivative features’ liability $ — $ — $ (9) $ (9) MSO and IUL indexed features’ liability — 30 — 30 Total Liabilities $ — $ 30 $ (9) $ 21 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. (3) Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $1 million. Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 2,351 $ 11 $ 2,362 U.S. Treasury, government and agency — 66 — 66 States and political subdivisions — 34 — 34 Asset-backed (2) — 30 — 30 Commercial mortgage-backed — 80 — 80 Total fixed maturities, AFS — 2,561 11 2,572 Other equity investments — 23 — 23 Other invested assets: Options — 3 — 3 Total other invested assets — 3 — 3 Cash equivalents 107 — — 107 Separate Accounts assets 3,384 7 — 3,391 Total Assets $ 3,491 $ 2,594 $ 11 $ 6,096 Liabilities: GMxB derivative features’ liability $ — $ — $ — $ — MSO and IUL indexed features’ liability — 132 — 132 Total Liabilities $ — $ 132 $ — $ 132 ______________ (1) Corporate fixed maturities includes both public and private issues. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types. |
Reconciliation of Assets and Liabilities at Level 3 | The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the three and nine months ended September 30, 2022 and 2021, respectively. Level 3 Instruments - Fair Value Measurements Corporate GMxB Derivative Features Liability (in millions) Balance, July 1, 2022 $ 16 $ 9 Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — Net derivative gains (losses) (1) — 2 Total realized and unrealized gains (losses) — 2 Other comprehensive income (loss) — — Purchases 1 (2) Sales — — Transfers into Level 3 (1) — — Transfers out of Level 3 (1) — — Balance, September 30, 2022 $ 17 $ 9 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period $ — $ 2 Corporate GMxB Derivative Features Liability (in millions) Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period. $ — $ — Balance, July 1, 2021 $ 11 $ — Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — Net derivative gains (losses) (1) — — Total realized and unrealized gains (losses) — — Other comprehensive income (loss) — — Purchases 2 — Sales — — Transfers into Level 3 (1) — — Transfers out of Level 3 (1) — — Balance, September 30, 2021 $ 13 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period $ — $ — Corporate GMxB Derivative Features Liability (in millions) Balance, January 1, 2022 $ 11 $ — Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — Net derivative gains (losses) (1) — 12 Total realized and unrealized gains (losses) — 12 Other comprehensive income (loss) (1) — Purchases 13 (3) Sales (1) — Transfers into Level 3 (1) — — Transfers out of Level 3 (1) (5) — Balance, September 30, 2022 $ 17 $ 9 Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period $ — $ 12 Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period. $ (1) $ — Balance, January 1, 2021 $ 14 $ — Realized and unrealized gains (losses), included in Net income (loss) as: Investment gains (losses), reported in net investment income — — Net derivative gains (losses) (1) — — Total realized and unrealized gains (losses) — — Other comprehensive income (loss) — — Purchases 2 — Sales (3) — Transfers into Level 3 (1) — — Transfers out of Level 3 (1) — — Balance, September 30, 2021 $ 13 $ — Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period $ — $ — Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period $ — $ — ____________ (1) Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values. |
Quantitative Information About Level 3 Fair Value Measurement | The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of September 30, 2022 and December 31, 2021, respectively. Quantitative Information about Level 3 Fair Value Measurements as of September 30, 2022 Fair Valuation Technique Significant Range Weighted Average (in millions) Assets: Investments: Fixed maturities, AFS: Fair Valuation Technique Significant Range Weighted Average (in millions) Corporate $ 4 Matrix pricing Spread over Benchmark 3 bps - 3 bps 3 bps Liabilities: GMxB Derivative Features Liability $ (9) Discounted cash flow Non-performance risk — — Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2021 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 9 Matrix pricing model Spread over benchmark 70 bps - 145 bps 104 bps |
Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values as of September 30, 2022 and December 31, 2021 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Financial Statements are presented in the table below. Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) September 30, 2022: Mortgage loans on real estate $ 17 $ — $ — $ 15 $ 15 Policy loans $ 250 $ — $ — $ 291 $ 291 Policyholders’ liabilities: Investment contracts $ 118 $ — $ — $ 108 $ 108 December 31, 2021: Mortgage loans on real estate $ 17 $ — $ — $ 18 $ 18 Policy loans $ 238 $ — $ — $ 292 $ 292 Policyholders’ liabilities: Investment contracts $ 120 $ — $ — $ 124 $ 124 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of September 30, 2022 and December 31, 2021 follow: September 30, December 31, 2022 2021 (in millions) Unrealized gains (losses) on investments $ (308) $ 86 Accumulated other comprehensive income (loss) $ (308) $ 86 |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes for the three and nine months ended September 30, 2022 and 2021, follow: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (116) $ (15) $ (451) $ (74) (Gains) losses reclassified into net income (loss) during the period (1) — 1 3 1 Net unrealized gains (losses) on investments (116) (14) (448) (73) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other 9 9 54 34 Other comprehensive income (loss), net of adjustments (net of deferred income tax expense (benefit) of $(28), $(1), $(105), and $(11)) (107) (5) (394) (39) Other comprehensive income (loss) $ (107) $ (5) $ (394) $ (39) ____________ (1) See “Reclassification adjustment” in Note 3 of the Notes to these Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $0 million, $(1) million, $(1) million and $0 million for the three and nine months ended September 30, 2022 and 2021, respectively. |
UNPAID CLAIM AND CLAIM EXPENS_2
UNPAID CLAIM AND CLAIM EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Schedules of Liability for Unpaid Claims and Claims Adjustment Expense | The liability for unpaid claims and claim expenses as of September 30, 2022 and 2021 is as follows: Liability for Unpaid Claims and Claim Expenses September 30, 2022 2021 (in millions) Gross Balance at January 1, $ 78 $ 40 Less Reinsurance 23 15 Net Balance at January 1, $ 55 $ 25 Incurred Claims (net) Related to: Current Period $ 144 $ 99 Prior Period (6) 16 Total Incurred $ 138 $ 115 Paid Claims (net) Related to: Current Period $ 91 $ 69 Prior Period 30 18 Total Paid $ 121 $ 87 Net balance at September 30, $ 72 $ 53 Add Reinsurance 32 19 Gross Balance at September 30, $ 104 $ 72 |
REVISION OF PREVIOUSLY ISSUED_2
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Financial Information Affected by Revisions and Change in Accounting Principle | December 31, 2021 December 31, 2020 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) (in millions) Balance Sheets: Fixed maturities available for sale, at fair value 2,572 — 2,572 2,445 (25) 2,420 Other equity investments 23 — 23 — 25 25 Amounts due from reinsurers 1,136 (13) 1,123 1,186 (17) 1,169 Current and deferred income taxes 15 2 17 27 1 28 Other assets 57 (11) 46 81 (6) 75 Total Assets 8,235 (22) 8,213 7,306 (22) 7,284 Future policy benefits and other policyholders’ liabilities 470 (13) 457 415 (17) 398 Total Liabilities 7,527 (13) 7,514 6,520 (17) 6,503 Additional paid-in capital 679 1 680 692 — 692 Accumulated deficit (60) (10) (70) (47) (3) (50) Accumulated other comprehensive income (loss) 86 — 86 138 (2) 136 Total Equity 708 (9) 699 786 (5) 781 Total Liabilities and Equity 8,235 (22) 8,213 7,306 (22) 7,284 March 31, 2022 June 30, 2022 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) (in millions) Balance Sheets: Amounts due from reinsurers 1,117 3 1,120 1,101 3 1,104 Current and deferred income taxes 58 2 60 94 1 95 Other assets 67 (12) 55 55 (13) 42 Total Assets 8,145 (7) 8,138 7,706 (9) 7,697 Future policy benefits and other policyholders’ liabilities 527 3 530 592 3 595 Total Liabilities 7,605 3 7,608 7,315 3 7,318 Common Stock 3 — 3 3 — 3 Additional paid-in capital 680 1 681 681 1 682 Treasury shares, at cost — — — — — — Accumulated deficit (79) (11) (90) (92) (13) (105) Total Equity 540 (10) 530 391 (12) 379 Total Liabilities and Equity 8,145 (7) 8,138 7,706 (9) 7,697 Year Ended December 31, 2020 Year Ended December 31, 2019 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Income (Loss) Net investment income (loss) 83 3 86 71 — 71 Total revenues 443 3 446 396 — 396 BENEFITS AND OTHER DEDUCTIONS Policyholders' benefits 184 — 184 107 (1) 106 Amortization of deferred policy acquisition costs 31 — 31 92 (1) 91 Other operating costs and expenses 83 4 87 99 2 101 Total benefits and deductions 481 4 485 454 — 454 Income (loss) from continuing operations, before income taxes (38) (1) (39) (58) — (58) Income tax (expense) benefit from continuing operations 29 — 29 13 — 13 Net income (loss) from continuing operations (9) (1) (10) (45) — (45) Net income (loss) $ (9) $ (1) $ (10) $ (45) $ — $ (45) Year Ended December 31, 2021 As Previously Impact of Revisions As Revised (in millions) Statements of Income (Loss) Net investment income (loss) 90 (2) 88 Total revenues 535 (2) 533 BENEFITS AND OTHER DEDUCTIONS Compensation and benefits 35 1 36 Other operating costs and expenses 96 6 102 Total benefits and deductions 553 7 560 Income (loss) from continuing operations, before income taxes (18) (9) (27) Income tax (expense) benefit from continuing operations 5 2 7 Net income (loss) from continuing operations (13) (7) (20) Net income (loss) $ (13) $ (7) $ (20) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Income (Loss) Net investment income (loss) 20 — 20 24 (2) 22 Total revenues 139 — 139 130 (2) 128 BENEFITS AND OTHER DEDUCTIONS Other operating costs and expenses 21 1 22 20 1 21 Total benefits and deductions 161 1 162 129 1 130 Income (loss) from continuing operations, before income taxes (22) (1) (23) 1 (3) (2) Income tax (expense) benefit from continuing operations 3 — 3 — — — Net income (loss) from continuing operations (19) (1) (20) 1 (3) (2) Net income (loss) $ (19) $ (1) $ (20) $ 1 $ (3) $ (2) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Income (Loss) Net investment income (loss) 20 — $ 20 44 (2) $ 42 Total revenues 139 — 139 269 (2) 267 BENEFITS AND OTHER DEDUCTIONS Other operating costs and expenses 22 1 23 42 2 44 Total benefits and deductions 157 1 158 286 2 288 Income (loss) from continuing operations, before income taxes (18) (1) (19) (17) (4) (21) Income tax (expense) benefit from continuing operations 4 — 4 4 — 4 Net income (loss) from continuing operations (14) (1) (15) (13) (4) (17) Net income (loss) $ (14) $ (1) $ (15) $ (13) $ (4) $ (17) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) BENEFITS AND OTHER DEDUCTIONS Other operating costs and expenses 22 1 23 43 2 45 Total benefits and deductions 177 1 178 338 2 340 Income (loss) from continuing operations, before income taxes (12) (1) (13) (34) (2) (36) Income tax (expense) benefit from continuing operations (1) (1) (2) 2 (1) 1 Net income (loss) from continuing operations (13) (2) (15) (32) (3) (35) Net income (loss) $ (13) $ (2) $ (15) $ (32) $ (3) $ (35) Year Ended December 31, 2021 2020 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ (13) $ (7) $ (20) $ (9) $ (1) $ (10) Change in unrealized gains (losses), net of reclassification adjustment (52) 2 (50) 90 (2) 88 Other comprehensive income (52) 2 (50) 90 (2) 88 Comprehensive income (loss) $ (65) $ (5) $ (70) $ 81 $ (3) $ 78 Three Months Ended March 31, 2022 2021 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ (19) $ (1) $ (20) $ 1 $ (3) $ (2) Change in unrealized gains (losses), net of reclassification adjustment (150) — (150) (73) 2 (71) Other comprehensive income (150) — (150) (73) 2 (71) Comprehensive income (loss) $ (169) $ (1) $ (170) $ (72) $ (1) $ (73) Three Months Ended June 30, Six Months Ended June 30, 2022 2022 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ (13) $ (2) $ (15) $ (32) $ (3) $ (35) Comprehensive income (loss) $ (150) $ (2) $ (152) $ (319) $ (3) $ (322) Three Months Ended June 30, Six Months Ended June 30, 2021 2021 As Previously Impact of Revisions As Revised As Previously Impact of Revisions As Revised (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ (14) $ (1) $ (15) $ (13) $ (4) $ (17) Change in unrealized gains (losses), net of reclassification adjustment 37 — 37 (36) 2 (34) Other comprehensive income 37 — 37 (36) 2 (34) Comprehensive income (loss) $ 23 $ (1) $ 22 $ (49) $ (2) $ (51) Twelve Months Ended December 31, 2019 Statements of Equity: As Previously Impact of Revision As Revised (in millions) Accumulated Deficit, beginning of year 7 (2) 5 Accumulated Deficit, end of year (38) (2) (40) Total equity, end of year $ 416 $ (2) $ 414 Year Ended December 31, Year Ended December 31, 2021 2020 Statements of Equity: As Previously Impact of Revision As Revised As Previously Impact of Revision As Revised (in millions) Other (2) 1 (1) 4 — 4 Additional paid-in capital, end of year 679 1 680 — 692 — — — 692 Accumulated Deficit, beginning of year (47) (3) (50) (38) (2) (40) Net income (loss) (13) (7) (20) (9) (1) (10) Accumulated Deficit, end of year (60) (10) — (70) — (47) — (3) (50) Accumulated other comprehensive income (loss), beginning of year 138 (2) 136 48 — 48 Other comprehensive income (loss) (52) 2 (50) 90 (2) 88 Accumulated other comprehensive income (loss), end of year 86 — 86 138 (2) 136 Total equity, end of year $ 708 $ (9) $ 699 $ 786 $ (5) $ 781 Three Months Ended March 31, Three Months Ended March 31, 2022 2021 Statements of Equity: As Previously Impact of Revision As Revised As Previously Impact of Revision As Revised (in millions) Additional paid-in capital, beginning of year 679 1 680 692 — 692 Additional paid-in capital, end of period 680 1 681 — 693 — — — 693 Accumulated Deficit, beginning of year (60) (10) (70) (47) (3) (50) Net income (loss) (19) (1) (20) 1 (3) (2) Accumulated Deficit, end of period (79) (11) — (90) — (46) — (6) (52) Accumulated other comprehensive income (loss), beginning of year 86 — 86 138 (2) 136 Other comprehensive income (loss) (150) — (150) (73) 2 (71) Accumulated other comprehensive income (loss), end of period (64) — (64) 65 — 65 — Total equity, end of period $ 540 $ (10) $ 530 $ 715 $ (6) $ 709 Three Months Ended June 30, Three Months Ended June 30, 2022 2021 Statements of Equity: As Previously Impact of Revision As Revised As Previously Impact of Revision As Revised (in millions) Additional paid-in capital, beginning of year 680 1 681 693 — 693 Additional paid-in capital, end of period 681 1 682 628 — 628 Accumulated Deficit, beginning of year (79) (11) (90) (46) (6) (52) Net income (loss) (13) (2) (15) (14) (1) (15) Accumulated Deficit, end of period (92) (13) (105) (60) (6) -66228709 (66) Total equity, end of period $ 391 $ (12) $ 379 $ 673 $ (6) -60 $ 667 Six Months Ended June 30, Six Months Ended June 30, 2022 2021 Statements of Equity: As Previously Impact of Revision As Revised As Previously Impact of Revision As Revised (in millions) Additional paid-in capital, beginning of year 679 1 680 692 — 692 Additional paid-in capital, end of year 681 1 682 628 — 628 Accumulated Deficit, beginning of year (60) (10) (70) (47) (3) (50) Net income (loss) (32) (3) (35) (13) (4) (17) Accumulated Deficit, end of year (92) (13) (92) (105) (60) (6) (66) Accumulated other comprehensive income (loss), beginning of year 86 — 86 138 (2) 136 Other comprehensive income (loss) (287) — (287) (36) 2 (34) Total equity, end of year $ 391 $ (12) $ 379 $ 673 $ (6) $ 667 Year End Dec 31, 2019 As Reported Impact of Revision As Revised (in millions) Statement of Cash Flows: Cash flow from operating activities: Amortization and depreciation 99 (1) 98 Future policy benefits (20) (1) (21) Other, net $ 5 $ 2 7 Net cash provided by (used in) operating activities $ (341) $ — $ (341) Year End Dec 31, 2021 Year End Dec. 31, 2020 As Reported Impact of Revision As Revised As Reported Impact of Revision As Revised (in millions) Statements of Cash Flows: Cash flow from operating activities: Net income (loss) (13) (7) (20) (9) (1) (10) Future policy benefits 20 4 24 34 (17) 17 Reinsurance recoverable 19 (139) (120) 19 (127) (108) Current and deferred income taxes 25 (1) 24 (28) — (28) Other, net $ (13) $ 9 (4) $ (10) $ 1 (9) Net cash provided by (used in) operating activities $ (250) $ (135) $ (385) $ (204) $ (144) $ (348) Cash flows from financing activities: Deposits 776 (140) 636 712 (134) 578 Withdrawals (364) 275 (89) (357) 279 (78) Net cash provided by (used in) financing activities $ 415 $ 135 $ 550 $ 667 $ 144 $ 811 Three Months March 31, 2022 Three Months March 31, 2021 As Reported Impact of Revision As Revised As Reported Impact of Revision As Revised (in millions) Statement of Cash Flows: Cash flow from operating activities: Net income (loss) (19) (1) $ (20) 1 (3) $ (2) Current and deferred income taxes (3) — $ (3) 30 — 30 Other, net 73 1 $ 74 8 3 11 Net cash provided by (used in) operating activities $ 9 $ — $ 9 $ (11) $ — $ (11) Six Months June 30, 2022 Six Months June 30, 2021 As Reported Impact of Revision As Revised As Reported Impact of Revision As Revised (in millions) Statement of Cash Flows: Cash flow from operating activities: Net income (loss) (32) (3) (35) (13) (4) (17) Future policy benefits 4 13 17 12 17 29 Reinsurance recoverable 1 (13) (12) (58) (17) (75) Current and deferred income taxes (2) 1 (1) 26 — 26 Other, net $ 104 $ 2 106 $ (2) $ 4 2 Net cash provided by (used in) operating activities $ (39) $ — $ (39) $ (144) $ — $ (144) |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Assumption Updates and Model Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Accounting Estimate [Line Items] | |||||||||||||
Policy charges and fee income | $ 72 | $ 68 | $ 218 | $ 212 | |||||||||
Policyholders’ benefits | 59 | 65 | 215 | 174 | $ 184 | $ 106 | |||||||
Net derivative gains (losses) | (12) | 0 | (12) | (3) | |||||||||
Income (loss) from operations, before income taxes | 8 | $ (13) | $ (23) | (2) | $ (19) | $ (2) | $ (36) | $ (21) | (28) | (23) | $ (27) | (39) | (58) |
Net income (loss) | 11 | $ (15) | $ (20) | (1) | $ (15) | $ (2) | $ (35) | $ (17) | (24) | (17) | $ (20) | $ (10) | $ (45) |
Assumptions Updates | |||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||
Policy charges and fee income | (7) | 2 | (7) | 2 | |||||||||
Policyholders’ benefits | 10 | (10) | 10 | (10) | |||||||||
Amortization of deferred policy acquisition costs, net | 14 | (4) | 14 | (4) | |||||||||
Income (loss) from operations, before income taxes | 17 | (12) | 17 | (12) | |||||||||
Net income (loss) | $ 13 | (9) | $ 13 | $ (9) | |||||||||
Model Changes | |||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||
Income (loss) from operations, before income taxes | 21 | ||||||||||||
Net income (loss) | $ 17 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) security loan | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) security loan | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) loan security | |
Net Investment Income [Line Items] | |||||
Number of unrealized loss positions | security | 861 | 861 | 119 | ||
Debt securities exposure in single issuer greater than stated percentage of total investments | 1.10% | 1.10% | |||
Fixed maturities available-for-sale, amortized cost | $ 2,683,000,000 | $ 2,683,000,000 | $ 2,444,000,000 | ||
Unrealized loss on available for sale securities | 0 | 0 | 0 | ||
Gross unrealized losses | $ 91,000,000 | $ 91,000,000 | $ 6,000,000 | ||
Financing receivable, debt service ratio multiplier | 2 | 2 | 2 | ||
Financing receivable, allowance for credit loss, excluding accrued interest | $ 0 | $ 0 | $ 0 | ||
Minimum | |||||
Net Investment Income [Line Items] | |||||
Financing receivable, loan to value ratio percentage | 0% | 0% | 0% | ||
Maximum | |||||
Net Investment Income [Line Items] | |||||
Financing receivable, loan to value ratio percentage | 50% | 50% | 50% | ||
Fixed maturities | |||||
Net Investment Income [Line Items] | |||||
Accrued investment income receivable | $ 24,000,000 | $ 24,000,000 | $ 20,000,000 | ||
Accrued interest, written off | 0 | $ 0 | 0 | $ 0 | |
Fixed maturities available-for-sale, amortized cost | 2,700,000,000 | 2,700,000,000 | 2,400,000,000 | ||
Corporate | |||||
Net Investment Income [Line Items] | |||||
Debt securities exposure in single issuer of total investments | $ 24,000,000 | $ 24,000,000 | $ 27,000,000 | ||
Debt securities exposure in single issuer of total investments, percent | 6.20% | 6.20% | 3.80% | ||
Fixed maturities available-for-sale, amortized cost | $ 2,492,000,000 | $ 2,492,000,000 | $ 2,237,000,000 | ||
Gross unrealized losses | 89,000,000 | 89,000,000 | 6,000,000 | ||
Commercial Mortgage Loans | |||||
Net Investment Income [Line Items] | |||||
Accrued investment income receivable | $ 0 | $ 0 | $ 0 | ||
Number of loans held | loan | 2 | 2 | 2 | ||
Accrued interest, written off | $ 0 | 0 | $ 0 | 0 | |
Financing receivable, allowance for credit loss, excluding accrued interest | 0 | 0 | 0 | 0 | |
Financing receivable, allowance for credit loss, excluding accrued interest, period increase (decrease) | 0 | 0 | |||
Commercial Mortgage Loans | Greater than 2.0x | 0% - 50% | |||||
Net Investment Income [Line Items] | |||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 17,000,000 | 17,000,000 | $ 17,000,000 | ||
Individually Assessed Mortgage Loans | |||||
Net Investment Income [Line Items] | |||||
Financing receivable, allowance for credit loss, excluding accrued interest | 0 | 0 | 0 | 0 | |
Mortgage loans foreclosure probable | 0 | $ 0 | 0 | $ 0 | |
Other Than Investment Grade | External Credit Rating, Non Investment Grade | Fixed maturities | |||||
Net Investment Income [Line Items] | |||||
Available-for-sale securities, amortized cost | $ 4,000,000 | $ 4,000,000 | $ 10,000,000 | ||
Percentage of available for sale securities | 0.10% | 0.10% | 0.40% |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, amortized cost | $ 2,683 | $ 2,683 | $ 2,444 | |||
Fixed maturities, allowance for credit losses | 0 | 0 | 0 | |||
Fixed maturities, gross unrealized gains | 0 | 0 | 139 | |||
Fixed maturities, gross unrealized losses | 439 | 439 | 11 | |||
Fair Value | 2,244 | 2,244 | 2,572 | $ 2,420 | ||
Amortized Cost | ||||||
Due in one year or less | 34 | 34 | ||||
Due in years two through five | 627 | 627 | ||||
Due in years six through ten | 908 | 908 | ||||
Due after ten years | 979 | 979 | ||||
Subtotal | 2,548 | 2,548 | ||||
Amortized Cost | 2,683 | 2,683 | ||||
Fair Value | ||||||
Due in one year or less | 34 | 34 | ||||
Due in years two through five | 598 | 598 | ||||
Due in years six through ten | 772 | 772 | ||||
Due after ten years | 725 | 725 | ||||
Subtotal | 2,129 | 2,129 | ||||
Fair Value | 2,244 | 2,244 | 2,572 | $ 2,420 | ||
Available For Sale Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments [Abstract] | ||||||
Proceeds from sales | 0 | $ 71 | 62 | $ 100 | ||
Gross gains on sales | 0 | 0 | 0 | 0 | ||
Gross losses on sales | 0 | (1) | 4 | (1) | ||
Net change in Allowance for Credit and Intent to Sell losses | 0 | 0 | 0 | 0 | ||
Fixed Maturities - Credit Loss Impairments | ||||||
Balance, beginning of period | 0 | 2 | 2 | 2 | ||
Previously recognized impairments on securities that matured, paid, prepaid or sold | 0 | 0 | 2 | 0 | ||
Recognized impairments on securities impaired to fair value this period | 0 | 0 | 0 | 0 | ||
Credit losses recognized this period on securities for which credit losses were not previously recognized | 0 | 0 | 0 | |||
Additional credit losses this period on securities previously impaired | 0 | 0 | 0 | 0 | ||
Increases due to passage of time on previously recorded credit losses | 0 | 0 | 0 | 0 | ||
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) | 0 | 0 | 0 | 0 | ||
Balance, end of period | 0 | $ 2 | 0 | $ 2 | ||
Corporate | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, amortized cost | 2,492 | 2,492 | 2,237 | |||
Fixed maturities, allowance for credit losses | 0 | 0 | 0 | |||
Fixed maturities, gross unrealized gains | 0 | 0 | 135 | |||
Fixed maturities, gross unrealized losses | 409 | 409 | 10 | |||
Fair Value | 2,083 | 2,083 | 2,362 | |||
Fair Value | ||||||
Fair Value | 2,083 | 2,083 | 2,362 | |||
U.S. Treasury, government and agency | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, amortized cost | 15 | 15 | 66 | |||
Fixed maturities, allowance for credit losses | 0 | 0 | 0 | |||
Fixed maturities, gross unrealized gains | 0 | 0 | 1 | |||
Fixed maturities, gross unrealized losses | 1 | 1 | 1 | |||
Fair Value | 14 | 14 | 66 | |||
Fair Value | ||||||
Fair Value | 14 | 14 | 66 | |||
States and political subdivisions | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, amortized cost | 41 | 41 | 31 | |||
Fixed maturities, allowance for credit losses | 0 | 0 | 0 | |||
Fixed maturities, gross unrealized gains | 0 | 0 | 3 | |||
Fixed maturities, gross unrealized losses | 9 | 9 | 0 | |||
Fair Value | 32 | 32 | 34 | |||
Fair Value | ||||||
Fair Value | 32 | 32 | 34 | |||
Foreign governments | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, amortized cost | 0 | 0 | ||||
Fixed maturities, allowance for credit losses | 0 | 0 | ||||
Fixed maturities, gross unrealized gains | 0 | 0 | ||||
Fixed maturities, gross unrealized losses | 0 | 0 | ||||
Fair Value | 0 | 0 | ||||
Fair Value | ||||||
Fair Value | 0 | 0 | ||||
Asset-backed | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, amortized cost | 54 | 54 | 30 | |||
Fixed maturities, allowance for credit losses | 0 | 0 | 0 | |||
Fixed maturities, gross unrealized gains | 0 | 0 | 0 | |||
Fixed maturities, gross unrealized losses | 4 | 4 | 0 | |||
Fair Value | 50 | 50 | 30 | |||
Amortized Cost | ||||||
Without single maturity date | 54 | 54 | ||||
Fair Value | ||||||
Without single maturity date | 50 | 50 | ||||
Fair Value | 50 | 50 | 30 | |||
Commercial mortgage-backed | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturities, amortized cost | 81 | 81 | 80 | |||
Fixed maturities, allowance for credit losses | 0 | 0 | 0 | |||
Fixed maturities, gross unrealized gains | 0 | 0 | 0 | |||
Fixed maturities, gross unrealized losses | 16 | 16 | 0 | |||
Fair Value | 65 | 65 | 80 | |||
Amortized Cost | ||||||
Without single maturity date | 81 | 81 | ||||
Fair Value | ||||||
Without single maturity date | 65 | 65 | ||||
Fair Value | $ 65 | $ 65 | $ 80 |
INVESTMENTS - Net Unrealized In
INVESTMENTS - Net Unrealized Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 379 | $ 667 | $ 699 | $ 781 |
Impact of net unrealized investment gains (losses) | 2 | |||
Ending balance | 384 | 661 | 384 | 661 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Net Unrealized Gains (Losses) on Investments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (293) | 171 | 128 | 246 |
Net investment gains (losses) arising during the period | (146) | (19) | (570) | (93) |
Included in net income (loss) | 0 | 1 | 3 | 3 |
Other | 0 | (3) | ||
Impact of net unrealized investment gains (losses) | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses) excluding credit losses | (439) | 153 | (439) | 153 |
Net unrealized investment gains (losses) with credit losses | 0 | 0 | 0 | 0 |
Ending balance | (439) | 153 | (439) | 153 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | DAC | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 119 | (82) | (46) | (111) |
Impact of net unrealized investment gains (losses) | 56 | 21 | 221 | 50 |
Net unrealized investment gains (losses) excluding credit losses | 175 | (61) | 175 | (61) |
Ending balance | 175 | (61) | 175 | (61) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (80) | 39 | 28 | 37 |
Impact of net unrealized investment gains (losses) | (45) | (10) | (153) | (8) |
Net unrealized investment gains (losses) excluding credit losses | (125) | 29 | (125) | 29 |
Ending balance | (125) | 29 | (125) | 29 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 53 | (27) | (24) | (37) |
Impact of net unrealized investment gains (losses) | 29 | 3 | 106 | 13 |
Net unrealized investment gains (losses) excluding credit losses | 82 | (24) | 82 | (24) |
Ending balance | 82 | (24) | 82 | (24) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (201) | 101 | 86 | 135 |
Net investment gains (losses) arising during the period | (146) | (19) | (570) | (93) |
Included in net income (loss) | 0 | 1 | 3 | 3 |
Other | 0 | (3) | ||
Impact of net unrealized investment gains (losses) | 40 | 14 | 174 | 55 |
Net unrealized investment gains (losses) excluding credit losses | (307) | 97 | (307) | 97 |
Net unrealized investment gains (losses) with credit losses | 0 | 0 | 0 | 0 |
Ending balance | (307) | 97 | (307) | 97 |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | DAC | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Net unrealized investment gains (losses) with credit losses | 0 | 0 | 0 | 0 |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Net unrealized investment gains (losses) with credit losses | 0 | 0 | 0 | 0 |
Fixed maturities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Net unrealized investment gains (losses) with credit losses | $ 0 | $ 0 | $ 0 | $ 0 |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | $ 2,008 | $ 288 |
Less than 12 months, gross unrealized losses | 348 | 5 |
12 months or longer, fair value | 218 | 113 |
12 Months or Longer, gross unrealized Losses | 91 | 6 |
Fair value | 2,226 | 401 |
Gross unrealized losses | 439 | 11 |
Corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 1,854 | 243 |
Less than 12 months, gross unrealized losses | 320 | 4 |
12 months or longer, fair value | 212 | 111 |
12 Months or Longer, gross unrealized Losses | 89 | 6 |
Fair value | 2,066 | 354 |
Gross unrealized losses | 409 | 10 |
U.S. Treasury, government and agency | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 14 | 45 |
Less than 12 months, gross unrealized losses | 1 | 1 |
12 months or longer, fair value | 0 | 2 |
12 Months or Longer, gross unrealized Losses | 0 | 0 |
Fair value | 14 | 47 |
Gross unrealized losses | 1 | 1 |
States and political subdivisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 30 | 0 |
Less than 12 months, gross unrealized losses | 8 | 0 |
12 months or longer, fair value | 1 | 0 |
12 Months or Longer, gross unrealized Losses | 1 | 0 |
Fair value | 31 | 0 |
Gross unrealized losses | 9 | 0 |
Asset-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 49 | 0 |
Less than 12 months, gross unrealized losses | 4 | 0 |
12 months or longer, fair value | 1 | 0 |
12 Months or Longer, gross unrealized Losses | 0 | 0 |
Fair value | 50 | 0 |
Gross unrealized losses | 4 | 0 |
Commercial mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 61 | 0 |
Less than 12 months, gross unrealized losses | 15 | 0 |
12 months or longer, fair value | 4 | 0 |
12 Months or Longer, gross unrealized Losses | 1 | 0 |
Fair value | 65 | 0 |
Gross unrealized losses | $ 16 | $ 0 |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ (1) | $ 1 | $ (4) | $ 3 |
Net investment gains (losses) recognized on securities sold during the period | 0 | 0 | 0 | 0 |
Unrealized and realized gains (losses) on equity securities | $ (1) | $ 1 | $ (4) | $ 3 |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 430 | $ 474 |
Derivative Assets | 20 | 26 |
Derivative Liabilities | 23 | 140 |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 223 | 295 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 51 | 59 |
Derivative Assets | 1 | 8 |
Derivative Liabilities | 2 | 5 |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 156 | 120 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Margin | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 18 | 18 |
Derivative Liabilities | 0 | 0 |
Collateral | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 1 | 0 |
Derivative Liabilities | 0 | 3 |
Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 430 | 474 |
Derivative Assets | 20 | 26 |
Derivative Liabilities | 2 | 8 |
GMxB derivative features’ liability | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | (9) | 0 |
MSO and IUL indexed features | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 30 | 132 |
Embedded derivative | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 21 | $ 132 |
DERIVATIVES - Financial Stateme
DERIVATIVES - Financial Statement Impact of Derivatives By Category (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | $ (12) | $ 0 | $ (12) | $ (3) |
Futures | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (12) | 2 | (85) | 39 |
Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Options | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (1) | 0 | (4) | 2 |
Futures | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (16) | (1) | (40) | (1) |
Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Swaptions | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Credit default swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Currency swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Currency forwards | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Margin | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Collateral | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Derivatives | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | (29) | 1 | (129) | 40 |
GMxB derivative features’ liability | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 2 | 0 | 11 | 0 |
MSO and IUL indexed features | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | 15 | (1) | 106 | (43) |
Embedded derivative | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative gains (losses) | $ 17 | $ (1) | $ 117 | $ (43) |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Cash and securities collateral for derivative contract | $ 0 | $ 3 |
Collateral | 1 | 0 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Derivative [Line Items] | ||
Initial margin requirements | 12 | 14 |
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||
Derivative [Line Items] | ||
Initial margin requirements | $ 6 | $ 3 |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Net Amount Presented in the Balance Sheets | $ 20 | $ 26 |
Liabilities | ||
Net Amount Presented in the Balance Sheets | 23 | 140 |
Derivative | ||
Assets | ||
Gross Amount Recognized | 20 | 26 |
Gross Amount Offset in the Balance Sheets | 2 | 8 |
Net Amount Presented in the Balance Sheets | 18 | 18 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 18 | 18 |
Liabilities | ||
Gross Amount Recognized | 2 | 8 |
Gross Amount Offset in the Balance Sheets | 2 | 8 |
Net Amount Presented in the Balance Sheets | 0 | 0 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 0 | 0 |
Other financial instruments | ||
Assets | ||
Gross Amount Recognized | 2 | 1 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 2 | 1 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 2 | 1 |
Other invested assets | ||
Assets | ||
Gross Amount Recognized | 22 | 27 |
Gross Amount Offset in the Balance Sheets | 2 | 8 |
Net Amount Presented in the Balance Sheets | 20 | 19 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 20 | 19 |
Other financial liabilities | ||
Liabilities | ||
Gross Amount Recognized | 204 | 42 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 204 | 42 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 204 | 42 |
Other liabilities | ||
Liabilities | ||
Gross Amount Recognized | 206 | 50 |
Gross Amount Offset in the Balance Sheets | 2 | 8 |
Net Amount Presented in the Balance Sheets | 204 | 42 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | $ 204 | $ 42 |
INSURANCE LIABILITIES - Rollfor
INSURANCE LIABILITIES - Rollforward of Liability and Reinsurance Ceded (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
GMDB Direct | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, beginning of period | $ 6 | $ 2 | $ 5 | $ 4 |
Paid guarantee benefits | 0 | 0 | 0 | 0 |
Other changes in reserve | 1 | 0 | 2 | (2) |
Balance, end of period | 7 | 2 | 7 | 2 |
GMDB Ceded | ||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||
Balance, beginning of period | (6) | (2) | (5) | (4) |
Paid guarantee benefits | 0 | 0 | 0 | 0 |
Other changes in reserve | (1) | 0 | (2) | 2 |
Balance, end of period | (7) | (2) | (7) | (2) |
GMIB Direct | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | ||||
Balance, beginning of period | 2 | 1 | 1 | 1 |
Paid guarantee benefits | 0 | 0 | 0 | 0 |
Other changes in reserve | 0 | (1) | 1 | (1) |
Balance, end of period | 2 | 0 | 2 | 0 |
GMIB Ceded | ||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Roll Forward] | ||||
Balance, beginning of period | (1) | (1) | (1) | (1) |
Paid guarantee benefits | 0 | 0 | 0 | 0 |
Other changes in reserve | 0 | 1 | 0 | 1 |
Balance, end of period | $ (1) | $ 0 | $ (1) | $ 0 |
INSURANCE LIABILITIES - Variabl
INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
NAR, gross | $ 0 | |
Maximum | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
NAR, net of amounts reinsured | 1 | |
GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 0 | |
Separate Accounts | 505 | $ 272 |
Net Amount At Risk By Product And Guarantee, Account Value | 505 | |
NAR, gross | 86 | |
NAR, net of amounts reinsured | $ 86 | |
Percentage of policyholders over age 70 | 13.10% | |
GMDB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 398 | |
Net Amount At Risk By Product And Guarantee, Account Value | 398 | |
NAR, gross | 68 | |
NAR, net of amounts reinsured | $ 68 | |
Percentage of policyholders over age 70 | 12.30% | |
GMDB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 107 | |
Net Amount At Risk By Product And Guarantee, Account Value | 107 | |
NAR, gross | 18 | |
NAR, net of amounts reinsured | $ 18 | |
Percentage of policyholders over age 70 | 16% | |
GMDB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 0 | |
Net Amount At Risk By Product And Guarantee, Account Value | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | $ 0 | |
Percentage of policyholders over age 70 | 0% | |
GMDB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 0 | |
Net Amount At Risk By Product And Guarantee, Account Value | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | $ 0 | |
Percentage of policyholders over age 70 | 0% | |
GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate Accounts | $ 497 | $ 270 |
Immediate Variable Annuity | GMDB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Average attained age of policyholders (in years) | 60 years 10 months 24 days | |
Range of contractually specified interest rates (as a percent) | 2% | |
Immediate Variable Annuity | GMDB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Average attained age of policyholders (in years) | 60 years 6 months | |
Immediate Variable Annuity | GMDB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Average attained age of policyholders (in years) | 62 years 4 months 24 days | |
Immediate Variable Annuity | GMDB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Range of contractually specified interest rates (as a percent) | 2% | |
Immediate Variable Annuity | GMIB | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 497 | |
Net Amount At Risk By Product And Guarantee, Account Value | 497 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | $ 0 | |
Average attained age of policyholders (in years) | 64 years 6 months | |
Weighted average years remaining until annuitization (in years) | 9 years 8 months 12 days | |
Range of contractually specified interest rates (as a percent) | 2% | |
Immediate Variable Annuity | GMIB | Return of Premium | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 0 | |
Net Amount At Risk By Product And Guarantee, Account Value | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | 0 | |
Immediate Variable Annuity | GMIB | Ratchet | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 0 | |
Separate Accounts | 0 | |
Net Amount At Risk By Product And Guarantee, Account Value | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | 0 | |
Immediate Variable Annuity | GMIB | Roll-Up | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | 0 | |
Separate Accounts | 497 | |
Net Amount At Risk By Product And Guarantee, Account Value | 497 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | $ 0 | |
Average attained age of policyholders (in years) | 64 years 6 months | |
Weighted average years remaining until annuitization (in years) | 9 years 8 months 12 days | |
Immediate Variable Annuity | GMIB | Combo | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account | $ 0 | |
Separate Accounts | 0 | |
Net Amount At Risk By Product And Guarantee, Account Value | 0 | |
NAR, gross | 0 | |
NAR, net of amounts reinsured | $ 0 | |
Range of contractually specified interest rates (as a percent) | 2% |
INSURANCE LIABILITIES - Separat
INSURANCE LIABILITIES - Separate Account Investments, Hedging Programs and Variable and Interest-Sensitive Live Insurance Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Reinsurance Ceded | |||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||||
Balance, beginning of period | $ (3) | $ (3) | $ (3) | $ (3) | |
Paid guaranteed benefits | 0 | 0 | 0 | 0 | |
Other changes in reserve | 0 | 0 | 0 | 0 | |
Balance, end of period | (3) | (3) | (3) | (3) | |
Net | |||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||||
Balance, beginning of period | 4 | 3 | 3 | 3 | |
Paid guaranteed benefits | 0 | 0 | 0 | 0 | |
Other changes in reserve | 0 | 0 | 1 | 0 | |
Balance, end of period | 4 | 3 | 4 | 3 | |
GMDB | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 505 | 505 | $ 272 | ||
GMDB | Equity | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 37 | 37 | 27 | ||
GMDB | Fixed income | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 9 | 9 | 6 | ||
GMDB | Balanced | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 456 | 456 | 238 | ||
GMDB | Other | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 3 | 3 | 1 | ||
GMIB | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 497 | 497 | 270 | ||
GMIB | Equity | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 7 | 7 | 5 | ||
GMIB | Fixed income | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 2 | 2 | 2 | ||
GMIB | Balanced | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 488 | 488 | 263 | ||
GMIB | Other | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Separate Accounts | 0 | 0 | $ 0 | ||
Direct Liability | |||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | |||||
Balance, beginning of period | 7 | 6 | 6 | 6 | |
Paid guaranteed benefits | 0 | 0 | 0 | 0 | |
Other changes in reserve | 0 | 0 | 1 | 0 | |
Balance, end of period | $ 7 | $ 6 | $ 7 | $ 6 |
FAIR VALUE DISCLOSURES - Schedu
FAIR VALUE DISCLOSURES - Schedules Of Assets And Liabilities Measured On Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | $ 2,244 | $ 2,572 | $ 2,420 |
Fair Value, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 2,244 | 2,572 | |
Other equity investments | 19 | 23 | |
Other invested assets: | (1) | 3 | |
Cash equivalents | 25 | 107 | |
Separate Accounts assets | 3,016 | 3,391 | |
Total Assets | 5,303 | 6,096 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total Liabilities | 21 | 132 | |
Fair Value, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Other equity investments | 0 | 0 | |
Other invested assets: | 0 | 0 | |
Cash equivalents | 25 | 107 | |
Separate Accounts assets | 3,009 | 3,384 | |
Total Assets | 3,034 | 3,491 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total Liabilities | 0 | 0 | |
Fair Value, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 2,227 | 2,561 | |
Other equity investments | 19 | 23 | |
Other invested assets: | (1) | 3 | |
Cash equivalents | 0 | 0 | |
Separate Accounts assets | 7 | 7 | |
Total Assets | 2,252 | 2,594 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total Liabilities | 30 | 132 | |
Fair Value, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 17 | 11 | |
Other equity investments | 0 | 0 | |
Other invested assets: | 0 | 0 | |
Cash equivalents | 0 | 0 | |
Separate Accounts assets | 0 | 0 | |
Total Assets | 17 | 11 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total Liabilities | (9) | 0 | |
Corporate | Fair Value, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 2,083 | 2,362 | |
Corporate | Fair Value, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Corporate | Fair Value, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 2,066 | 2,351 | |
Corporate | Fair Value, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 17 | 11 | |
U.S. Treasury, government and agency | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 14 | 66 | |
U.S. Treasury, government and agency | Fair Value, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 14 | 66 | |
U.S. Treasury, government and agency | Fair Value, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
U.S. Treasury, government and agency | Fair Value, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 14 | 66 | |
U.S. Treasury, government and agency | Fair Value, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
States and political subdivisions | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 32 | 34 | |
States and political subdivisions | Fair Value, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 32 | 34 | |
States and political subdivisions | Fair Value, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
States and political subdivisions | Fair Value, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 32 | 34 | |
States and political subdivisions | Fair Value, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Foreign governments | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | ||
Foreign governments | Fair Value, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | ||
Foreign governments | Fair Value, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | ||
Foreign governments | Fair Value, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | ||
Foreign governments | Fair Value, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | ||
Asset-backed | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 50 | 30 | |
Asset-backed | Fair Value, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 50 | 30 | |
Asset-backed | Fair Value, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Asset-backed | Fair Value, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 50 | 30 | |
Asset-backed | Fair Value, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Commercial mortgage-backed | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 65 | 80 | |
Commercial mortgage-backed | Fair Value, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 65 | 80 | |
Commercial mortgage-backed | Fair Value, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Commercial mortgage-backed | Fair Value, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 65 | 80 | |
Commercial mortgage-backed | Fair Value, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Fixed maturities available for sale, at fair value | 0 | 0 | |
Options | Fair Value, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Other invested assets: | (1) | 3 | |
Options | Fair Value, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Other invested assets: | 0 | 0 | |
Options | Fair Value, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Other invested assets: | (1) | 3 | |
Options | Fair Value, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Other invested assets: | 0 | 0 | |
GMxB derivative features’ liability | Fair Value, Recurring | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities | (9) | 0 | |
GMxB derivative features’ liability | Fair Value, Recurring | Level 1 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities | 0 | 0 | |
GMxB derivative features’ liability | Fair Value, Recurring | Level 2 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities | 0 | 0 | |
GMxB derivative features’ liability | Fair Value, Recurring | Level 3 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities | (9) | 0 | |
MSO and IUL indexed features’ liability | Fair Value, Recurring | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities | 30 | 132 | |
MSO and IUL indexed features’ liability | Fair Value, Recurring | Level 1 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities | 0 | 0 | |
MSO and IUL indexed features’ liability | Fair Value, Recurring | Level 2 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities | 30 | 132 | |
MSO and IUL indexed features’ liability | Fair Value, Recurring | Level 3 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||
AFS fixed maturities transferred between Level 2 and 3 (percentage) | 1.30% | ||||
Level 3 | Corporate | |||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||
Transfers out of Level 3 | $ 0 | $ 0 | $ (5) | $ 0 | |
AFS fixed maturities transferred from Level 3 to Level 2 | 0 | $ 0 | 0 | $ 0 | |
Level 3 | Fair Value, Nonrecurring | |||||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | |||||
Fair value measurements not included in quantitative information about level 3 fair value measurements | $ 13 | $ 13 | $ 2 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation For All Levels (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Net derivative gains (losses) | $ (3) | $ (1) | ||
Level 3 | Corporate | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Beginning Balance | $ 16 | $ 11 | 11 | 14 |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | (1) | 0 |
Purchases | 1 | 2 | 13 | 2 |
Sales | 0 | 0 | (1) | (3) |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | (5) | 0 |
Closing Balance | 17 | 13 | 17 | 13 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 | 0 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period. | 0 | 0 | (1) | 0 |
Level 3 | GMxB Derivative Features Liability | ||||
Total Gains Losses Realized Unrealized Included In [Abstract] | ||||
Beginning Balance | 9 | 0 | 0 | 0 |
Investment gains (losses), reported in net investment income | 0 | 0 | 0 | |
Net derivative gains (losses) | 2 | 0 | 12 | 0 |
Total realized and unrealized gains (losses) | 2 | 0 | 12 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases | (2) | 0 | (3) | 0 |
Sales | 0 | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Closing Balance | 9 | 0 | 9 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 2 | 0 | 12 | 0 |
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period. | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information About Level 3 (Details) - Level 3 $ in Millions | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Corporate | Matrix pricing model | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 4 | $ 9 |
Corporate | Spread over Benchmark | Matrix pricing model | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, measurement input | 0.0003 | 0.0070 |
Corporate | Spread over Benchmark | Matrix pricing model | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, measurement input | 0.0003 | 0.0145 |
Corporate | Spread over Benchmark | Matrix pricing model | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, measurement input | 0.0003 | 0.0104 |
GMIBNLG | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset, fair value | $ (9) |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Values And Fair Values Of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Consolidated Amounts [Abstract] | ||
Policy loans | $ 250 | $ 238 |
Policyholders’ liabilities: Investment contracts | 3,504 | 3,504 |
Carrying Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 17 | 17 |
Policy loans | 250 | 238 |
Policyholders’ liabilities: Investment contracts | 118 | 120 |
Fair Value | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 15 | 18 |
Policy loans | 291 | 292 |
Policyholders’ liabilities: Investment contracts | 108 | 124 |
Fair Value | Level 1 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 0 | 0 |
Policy loans | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
Fair Value | Level 2 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 0 | 0 |
Policy loans | 0 | 0 |
Policyholders’ liabilities: Investment contracts | 0 | 0 |
Fair Value | Level 3 | ||
Consolidated Amounts [Abstract] | ||
Mortgage loans on real estate | 15 | 18 |
Policy loans | 291 | 292 |
Policyholders’ liabilities: Investment contracts | $ 108 | $ 124 |
EQUITY - Components of AOCI (De
EQUITY - Components of AOCI (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Equity [Abstract] | |||
Unrealized gains (losses) on investments | $ (308) | $ 86 | |
Accumulated other comprehensive income (loss) | $ (308) | $ 86 | $ 136 |
EQUITY - Changes in AOCI (Detai
EQUITY - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Net unrealized gains (losses) arising during the period | $ (116) | $ (15) | $ (451) | $ (74) |
(Gains) losses reclassified into net income (loss) during the period | 0 | 1 | 3 | 1 |
Net unrealized gains (losses) on investments | (116) | (14) | (448) | (73) |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 9 | 9 | 54 | 34 |
Other comprehensive income (loss), net of adjustments (net of deferred income tax expense (benefit) of $(28), $(1), $(105), and $(11)) | (107) | (5) | (394) | (39) |
Other comprehensive income (loss) | (107) | (5) | (394) | (39) |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ||||
Other comprehensive income (loss), deferred income tax expense (benefit) | (28) | (1) | (105) | (11) |
Unrealized gains (losses) on investments | ||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Reclassification from AOCI, current period, tax | $ 0 | $ (1) | $ (1) | $ 0 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unaccrued amounts of reasonably possible range of losses | $ 5 |
UNPAID CLAIM AND CLAIM EXPENS_3
UNPAID CLAIM AND CLAIM EXPENSES - Rollforward of the Unpaid Claims and Claim Expenses (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense, [Roll Forward] | ||
Gross balance | $ 78 | $ 40 |
Less Reinsurance | 23 | 15 |
Net balance | 55 | 25 |
Incurred Claims (net) Related to: | ||
Current Period | 144 | 99 |
Prior Period | (6) | 16 |
Total Incurred | 138 | 115 |
Paid Claims (net) Related to: | ||
Current Period | 91 | 69 |
Prior Period | 30 | 18 |
Total Paid | 121 | 87 |
Net balance | 72 | 53 |
Add Reinsurance | 32 | 19 |
Gross balance | $ 104 | $ 72 |
REVISION OF PREVIOUSLY ISSUED_3
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | ||
Deferred cost amortization | $ 14 | |
Reinsured risk, percent | 100% | |
Total investments | $ 25 | |
Impact of net unrealized investment gains (losses) | $ 2 |
REVISION OF PREVIOUSLY ISSUED_4
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Investments: | |||||
Fixed maturities available for sale, at fair value | $ 2,244 | $ 2,572 | $ 2,420 | ||
Other equity investments | 19 | 23 | 25 | ||
Total investments | 2,550 | 2,869 | |||
Amounts due from reinsurers | 1,096 | $ 1,104 | $ 1,120 | 1,123 | 1,169 |
Current and deferred income taxes | 126 | 95 | 60 | 17 | 28 |
Other assets | 134 | 42 | 55 | 46 | 75 |
Total Assets | 7,859 | 7,697 | 8,138 | 8,213 | 7,284 |
LIABILITIES | |||||
Future policy benefits and other policyholders' liabilities | 641 | 595 | 530 | 457 | 398 |
Total Liabilities | 7,475 | 7,318 | 7,608 | 7,514 | 6,503 |
Equity: | |||||
Common Stock | 3 | 3 | 3 | 3 | |
Additional paid-in capital | 783 | 682 | 681 | 680 | 692 |
Treasury shares, at cost | 0 | 0 | |||
Accumulated deficit | (94) | (105) | (90) | (70) | (50) |
Accumulated other comprehensive income (loss) | (308) | 86 | 136 | ||
Total Equity | 384 | 379 | 530 | 699 | 781 |
Total Liabilities and Equity | $ 7,859 | 7,697 | 8,138 | 8,213 | 7,284 |
As Previously Reported | |||||
Investments: | |||||
Fixed maturities available for sale, at fair value | 2,572 | 2,445 | |||
Other equity investments | 23 | 0 | |||
Amounts due from reinsurers | 1,101 | 1,117 | 1,136 | 1,186 | |
Current and deferred income taxes | 94 | 58 | 15 | 27 | |
Other assets | 55 | 67 | 57 | 81 | |
Total Assets | 7,706 | 8,145 | 8,235 | 7,306 | |
LIABILITIES | |||||
Future policy benefits and other policyholders' liabilities | 592 | 527 | 470 | 415 | |
Total Liabilities | 7,315 | 7,605 | 7,527 | 6,520 | |
Equity: | |||||
Common Stock | 3 | 3 | |||
Additional paid-in capital | 681 | 680 | 679 | 692 | |
Treasury shares, at cost | 0 | 0 | |||
Accumulated deficit | (92) | (79) | (60) | (47) | |
Accumulated other comprehensive income (loss) | 86 | 138 | |||
Total Equity | 391 | 540 | 708 | 786 | |
Total Liabilities and Equity | 7,706 | 8,145 | 8,235 | 7,306 | |
Impact of Revisions | |||||
Investments: | |||||
Fixed maturities available for sale, at fair value | 0 | (25) | |||
Other equity investments | 0 | 25 | |||
Amounts due from reinsurers | 3 | 3 | (13) | (17) | |
Current and deferred income taxes | 1 | 2 | 2 | 1 | |
Other assets | (13) | (12) | (11) | (6) | |
Total Assets | (9) | (7) | (22) | (22) | |
LIABILITIES | |||||
Future policy benefits and other policyholders' liabilities | 3 | 3 | (13) | (17) | |
Total Liabilities | 3 | 3 | (13) | (17) | |
Equity: | |||||
Common Stock | 0 | 0 | |||
Additional paid-in capital | 1 | 1 | 1 | 0 | |
Treasury shares, at cost | 0 | 0 | |||
Accumulated deficit | (13) | (11) | (10) | (3) | |
Accumulated other comprehensive income (loss) | 0 | (2) | |||
Total Equity | (12) | (10) | (9) | (5) | |
Total Liabilities and Equity | $ (9) | $ (7) | $ (22) | $ (22) |
REVISION OF PREVIOUSLY ISSUED_5
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUES | |||||||||||||
Net investment income (loss) | $ 22 | $ 20 | $ 20 | $ 20 | $ 22 | $ 42 | $ 63 | $ 62 | $ 88 | $ 86 | $ 71 | ||
Total revenues | 144 | 139 | 129 | 139 | 128 | 267 | 448 | 396 | 533 | 446 | 396 | ||
BENEFITS AND OTHER DEDUCTIONS | |||||||||||||
Compensation and benefits | 10 | 10 | 30 | 28 | 36 | ||||||||
Policyholders’ benefits | 59 | 65 | 215 | 174 | 184 | 106 | |||||||
Amortization of deferred policy acquisition costs | 0 | (13) | 35 | 30 | 31 | 91 | |||||||
Other operating costs and expenses | 22 | $ 23 | 22 | 27 | 23 | 21 | $ 45 | 44 | 67 | 71 | 102 | 87 | 101 |
Total benefits and other deductions | 136 | 178 | 162 | 131 | 158 | 130 | 340 | 288 | 476 | 419 | 560 | 485 | 454 |
Income (loss) from continuing operations, before income taxes | 8 | (13) | (23) | (2) | (19) | (2) | (36) | (21) | (28) | (23) | (27) | (39) | (58) |
Income tax (expense) benefit from continuing operations | 3 | (2) | 3 | 1 | 4 | 0 | 1 | 4 | 4 | 6 | 7 | 29 | 13 |
Net income (loss) from continuing operations | (15) | (20) | (15) | (2) | (35) | (17) | (20) | (10) | (45) | ||||
Net income (loss) | $ 11 | (15) | (20) | $ (1) | (15) | (2) | (35) | (17) | $ (24) | $ (17) | (20) | (10) | (45) |
As Previously Reported | |||||||||||||
REVENUES | |||||||||||||
Net investment income (loss) | 20 | 20 | 24 | 44 | 90 | 83 | 71 | ||||||
Total revenues | 139 | 139 | 130 | 269 | 535 | 443 | 396 | ||||||
BENEFITS AND OTHER DEDUCTIONS | |||||||||||||
Compensation and benefits | 35 | ||||||||||||
Policyholders’ benefits | 184 | 107 | |||||||||||
Amortization of deferred policy acquisition costs | 31 | 92 | |||||||||||
Other operating costs and expenses | 22 | 21 | 22 | 20 | 43 | 42 | 96 | 83 | 99 | ||||
Total benefits and other deductions | 177 | 161 | 157 | 129 | 338 | 286 | 553 | 481 | 454 | ||||
Income (loss) from continuing operations, before income taxes | (12) | (22) | (18) | 1 | (34) | (17) | (18) | (38) | (58) | ||||
Income tax (expense) benefit from continuing operations | (1) | 3 | 4 | 0 | 2 | 4 | 5 | 29 | 13 | ||||
Net income (loss) from continuing operations | (13) | (19) | (14) | 1 | (32) | (13) | (13) | (9) | (45) | ||||
Net income (loss) | (13) | (19) | (14) | 1 | (32) | (13) | (13) | (9) | (45) | ||||
Impact of Revisions | |||||||||||||
REVENUES | |||||||||||||
Net investment income (loss) | 0 | 0 | (2) | (2) | (2) | 3 | 0 | ||||||
Total revenues | 0 | 0 | (2) | (2) | (2) | 3 | 0 | ||||||
BENEFITS AND OTHER DEDUCTIONS | |||||||||||||
Compensation and benefits | 1 | ||||||||||||
Policyholders’ benefits | 0 | (1) | |||||||||||
Amortization of deferred policy acquisition costs | 0 | (1) | |||||||||||
Other operating costs and expenses | 1 | 1 | 1 | 1 | 2 | 2 | 6 | 4 | 2 | ||||
Total benefits and other deductions | 1 | 1 | 1 | 1 | 2 | 2 | 7 | 4 | 0 | ||||
Income (loss) from continuing operations, before income taxes | (1) | (1) | (1) | (3) | (2) | (4) | (9) | (1) | 0 | ||||
Income tax (expense) benefit from continuing operations | (1) | 0 | 0 | 0 | (1) | 0 | 2 | 0 | 0 | ||||
Net income (loss) from continuing operations | (2) | (1) | (1) | (3) | (3) | (4) | (7) | (1) | 0 | ||||
Net income (loss) | $ (2) | $ (1) | $ (1) | $ (3) | $ (3) | $ (4) | $ (7) | $ (1) | $ 0 |
REVISION OF PREVIOUSLY ISSUED_6
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Statements of Comprehensive Income (Loss): | ||||||||||||||||
Net income (loss) | $ (15) | $ (20) | $ (15) | $ (2) | $ (35) | $ (17) | $ (20) | $ (10) | ||||||||
Change in unrealized gains (losses), net of reclassification adjustment | $ (107) | [1] | (150) | $ (5) | [1] | 37 | (71) | (34) | $ (394) | [1] | $ (39) | [1] | (50) | 88 | ||
Other comprehensive income (loss) | $ (107) | (150) | $ (5) | 37 | (71) | (287) | (34) | $ (394) | $ (39) | (50) | 88 | |||||
Comprehensive income (loss) | (152) | (170) | 22 | (73) | (322) | (51) | (70) | 78 | ||||||||
As Previously Reported | ||||||||||||||||
Statements of Comprehensive Income (Loss): | ||||||||||||||||
Net income (loss) | (13) | (19) | (14) | 1 | (32) | (13) | (13) | (9) | ||||||||
Change in unrealized gains (losses), net of reclassification adjustment | (150) | 37 | (73) | (36) | (52) | 90 | ||||||||||
Other comprehensive income (loss) | (150) | 37 | (73) | (287) | (36) | (52) | 90 | |||||||||
Comprehensive income (loss) | (150) | (169) | 23 | (72) | (319) | (49) | (65) | 81 | ||||||||
Impact of Revisions | ||||||||||||||||
Statements of Comprehensive Income (Loss): | ||||||||||||||||
Net income (loss) | (2) | (1) | (1) | (3) | (3) | (4) | (7) | (1) | ||||||||
Change in unrealized gains (losses), net of reclassification adjustment | 0 | 0 | 2 | 2 | 2 | (2) | ||||||||||
Other comprehensive income (loss) | 0 | 0 | 2 | 0 | 2 | 2 | (2) | |||||||||
Comprehensive income (loss) | $ (2) | $ (1) | $ (1) | $ (1) | $ (3) | $ (2) | $ (5) | $ (3) | ||||||||
[1]See Note 9 of the Notes to these Financial Statements for details of change in unrealized gains (losses), net of adjustments. |
REVISION OF PREVIOUSLY ISSUED_7
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | $ 379 | $ 699 | $ 667 | $ 781 | $ 699 | $ 781 | $ 699 | $ 781 | $ 781 | ||||
Net income (loss) | 11 | $ (15) | (20) | (1) | $ (15) | (2) | (35) | (17) | (24) | (17) | (20) | $ (10) | $ (45) |
Other comprehensive income (loss) | (107) | (150) | (5) | 37 | (71) | (287) | (34) | (394) | (39) | (50) | 88 | ||
Ending balance | 384 | 379 | 661 | 667 | 379 | 667 | 384 | 661 | 699 | 781 | |||
As Previously Reported | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (13) | (19) | (14) | 1 | (32) | (13) | (13) | (9) | (45) | ||||
Other comprehensive income (loss) | (150) | 37 | (73) | (287) | (36) | (52) | 90 | ||||||
Impact of Revisions | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (2) | (1) | (1) | (3) | (3) | (4) | (7) | (1) | 0 | ||||
Other comprehensive income (loss) | 0 | 0 | 2 | 0 | 2 | 2 | (2) | ||||||
Accumulated Deficit | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | (105) | (90) | (70) | (66) | (52) | (50) | (70) | (50) | (70) | (50) | (50) | (40) | 5 |
Net income (loss) | 11 | (1) | (24) | (17) | |||||||||
Ending balance | (94) | (105) | (90) | (67) | (66) | (52) | (105) | (66) | (94) | (67) | (70) | (50) | (40) |
Accumulated Deficit | As Previously Reported | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | (92) | (79) | (60) | (60) | (46) | (47) | (60) | (47) | (60) | (47) | (47) | (38) | 7 |
Ending balance | (92) | (79) | (60) | (46) | (92) | (60) | (60) | (47) | (38) | ||||
Accumulated Deficit | Impact of Revisions | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | (13) | (11) | (10) | (6) | (6) | (3) | (10) | (3) | (10) | (3) | (3) | (2) | (2) |
Ending balance | (13) | (11) | (6) | (6) | (13) | (6) | (10) | (3) | (2) | ||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | (201) | (64) | 86 | 102 | 65 | 136 | 86 | 136 | 86 | 136 | 136 | 48 | |
Other comprehensive income (loss) | (107) | (5) | (394) | (39) | |||||||||
Ending balance | (308) | (201) | (64) | 97 | 102 | 65 | (201) | 102 | (308) | 97 | 86 | 136 | 48 |
Accumulated Other Comprehensive Income (Loss) | As Previously Reported | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | (64) | 86 | 65 | 138 | 86 | 138 | 86 | 138 | 138 | 48 | |||
Ending balance | (64) | 65 | 86 | 138 | 48 | ||||||||
Accumulated Other Comprehensive Income (Loss) | Impact of Revisions | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | 0 | 0 | 0 | (2) | 0 | (2) | 0 | (2) | (2) | 0 | |||
Ending balance | 0 | 0 | 0 | (2) | 0 | ||||||||
Other | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | (1) | 4 | (1) | 4 | (1) | 4 | 4 | ||||||
Ending balance | (1) | 4 | |||||||||||
Other | As Previously Reported | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | (2) | 4 | (2) | 4 | (2) | 4 | 4 | ||||||
Ending balance | (2) | 4 | |||||||||||
Other | Impact of Revisions | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | 1 | 0 | 1 | 0 | 1 | 0 | 0 | ||||||
Ending balance | 1 | 0 | |||||||||||
Additional Paid-in Capital | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | 682 | 681 | 680 | 628 | 693 | 692 | 680 | 692 | 680 | 692 | 692 | ||
Ending balance | 783 | 682 | 681 | 628 | 628 | 693 | 682 | 628 | 783 | 628 | 680 | 692 | |
Additional Paid-in Capital | As Previously Reported | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | 681 | 680 | 679 | 628 | 693 | 692 | 679 | 692 | 679 | 692 | 692 | ||
Ending balance | 681 | 680 | 628 | 693 | 681 | 628 | 679 | 692 | |||||
Additional Paid-in Capital | Impact of Revisions | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | 1 | 1 | 1 | 0 | 0 | 0 | 1 | 0 | 1 | 0 | 0 | ||
Ending balance | 1 | 1 | 0 | 0 | 1 | 0 | 1 | 0 | |||||
Total | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | 379 | 530 | 699 | 667 | 709 | 781 | 699 | 781 | 699 | 781 | 781 | 414 | |
Ending balance | 379 | 530 | 667 | 709 | 379 | 667 | 699 | 781 | 414 | ||||
Total | As Previously Reported | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | 391 | 540 | 708 | 673 | 715 | 786 | 708 | 786 | 708 | 786 | 786 | 416 | |
Ending balance | 391 | 540 | 673 | 715 | 391 | 673 | 708 | 786 | 416 | ||||
Total | Impact of Revisions | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Beginning balance | $ (12) | (10) | (9) | $ (6) | (6) | (5) | (9) | (5) | $ (9) | $ (5) | (5) | (2) | |
Ending balance | $ (12) | $ (10) | $ (6) | $ (6) | $ (12) | $ (6) | $ (9) | $ (5) | $ (2) |
REVISION OF PREVIOUSLY ISSUED_8
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||||||||||
Net income (loss) | $ (15) | $ (20) | $ (15) | $ (2) | $ (35) | $ (17) | $ (20) | $ (10) | |||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||||||||||
Amortization and depreciation | $ 51 | $ 33 | $ 98 | ||||||||
Changes in: | |||||||||||
Future policy benefits | 17 | 29 | 9 | 19 | (24) | (17) | (21) | ||||
Reinsurance recoverable | (12) | (75) | (37) | (89) | (120) | (108) | |||||
Current and deferred income taxes | (3) | 30 | (1) | 26 | (4) | 24 | 24 | (28) | |||
Other, net | 74 | 11 | 106 | 2 | (4) | (9) | 7 | ||||
Net cash provided by (used in) operating activities | 9 | (11) | (39) | (144) | (161) | (255) | (385) | (348) | (341) | ||
Proceeds from the sale/maturity/prepayment of: | |||||||||||
Other | 1 | 0 | |||||||||
Net cash provided by (used in) investing activities | (379) | (209) | |||||||||
Cash flows from financing activities: | |||||||||||
Deposits | 540 | 467 | 636 | 578 | |||||||
Withdrawals | (72) | (63) | (89) | (78) | |||||||
Net cash provided by (used in) financing activities | $ 443 | $ 363 | 550 | 811 | |||||||
As Previously Reported | |||||||||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||||||||||
Net income (loss) | (13) | (19) | (14) | 1 | (32) | (13) | (13) | (9) | |||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||||||||||
Amortization and depreciation | 99 | ||||||||||
Changes in: | |||||||||||
Future policy benefits | 4 | 12 | (20) | (34) | (20) | ||||||
Reinsurance recoverable | 1 | (58) | 19 | 19 | |||||||
Current and deferred income taxes | (3) | 30 | (2) | 26 | 25 | (28) | |||||
Other, net | 73 | 8 | 104 | (2) | (13) | (10) | 5 | ||||
Net cash provided by (used in) operating activities | 9 | (11) | (39) | (144) | (250) | (204) | (341) | ||||
Cash flows from financing activities: | |||||||||||
Deposits | 776 | 712 | |||||||||
Withdrawals | (364) | (357) | |||||||||
Net cash provided by (used in) financing activities | 415 | 667 | |||||||||
Impact of Revisions | |||||||||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||||||||||
Net income (loss) | $ (2) | (1) | $ (1) | (3) | (3) | (4) | (7) | (1) | |||
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||||||||||
Amortization and depreciation | (1) | ||||||||||
Changes in: | |||||||||||
Future policy benefits | 13 | 17 | (4) | 17 | (1) | ||||||
Reinsurance recoverable | (13) | (17) | (139) | (127) | |||||||
Current and deferred income taxes | 0 | 0 | 1 | 0 | (1) | 0 | |||||
Other, net | 1 | 3 | 2 | 4 | 9 | 1 | 2 | ||||
Net cash provided by (used in) operating activities | $ 0 | $ 0 | $ 0 | $ 0 | (135) | (144) | $ 0 | ||||
Cash flows from financing activities: | |||||||||||
Deposits | (140) | (134) | |||||||||
Withdrawals | 275 | 279 | |||||||||
Net cash provided by (used in) financing activities | $ 135 | $ 144 |