Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 07, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 8501 IBM Drive | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28262 | |
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 | Q1 | |
Document Fiscal Year Focus | 2024 | |
Amendment Flag | false | |
Entity Central Index Key | 0000835357 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
Investments: | |||
Fixed maturities available-for-sale, at fair value (amortized cost of $11,551 and $10,050) (allowance for credit losses of $0 and $0 ) | $ 11,306 | $ 9,891 | |
Mortgage loans on real estate (net of allowance for credit losses of $3 and $2) | 546 | 294 | |
Policy loans | 278 | 268 | |
Other equity investments | 24 | 19 | |
Other invested assets | 174 | 351 | |
Total investments | 12,328 | 10,823 | |
Cash and cash equivalents | 3,512 | 1,838 | |
Deferred policy acquisition costs | 1,348 | 1,212 | |
Amounts due from reinsurers (allowance for credit losses of $0 and $0) | 944 | 961 | |
Funds withheld receivable | 9,755 | 10,603 | |
Reinsurance deposit assets | 12,411 | 12,566 | |
Purchased market risk benefits | 7 | 9 | |
Other assets | 543 | 406 | |
Assets for market risk benefits | 34 | 24 | |
Separate Accounts assets | 6,830 | 5,754 | |
Total Assets | 47,712 | 44,196 | |
LIABILITIES | |||
Policyholders’ account balances | 28,256 | 24,963 | |
Liability for market risk benefits | 6,383 | 7,333 | |
Future policy benefits and other policyholders' liabilities | 1,801 | 1,653 | |
Amounts due to reinsurers | 105 | 110 | |
Current and deferred income taxes | 35 | 54 | |
Other liabilities | 2,228 | 2,169 | |
Separate Accounts liabilities | 6,830 | 5,754 | |
Total Liabilities | 45,638 | 42,036 | |
Commitments and contingent liabilities | [1] | ||
EQUITY | |||
Common stock, $1.00 par value; 2,500,000 shares authorized, issued and outstanding | 3 | 3 | |
Additional paid-in capital | 1,884 | 1,882 | |
Retained earnings (accumulated deficit) | 886 | 969 | |
Accumulated other comprehensive income (loss) | (699) | (694) | |
Total Equity | 2,074 | 2,160 | |
Total Liabilities and Equity | $ 47,712 | $ 44,196 | |
[1] See Note 13 of the Notes to these Consolidated Financial Statements for details of commitments and contingent liabilities. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Amortized cost of fixed maturities available-for-sale | $ 11,551 | $ 10,050 |
Allowance for credit losses of fixed maturities available-for-sale | 0 | 0 |
Valuation allowances for credit losses of mortgage loans on real estate | 3 | 2 |
Allowance for credit losses of reinsurance recoverable | $ 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 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUES | ||
Policy charges and fee income | $ 404 | $ 61 |
Premiums | 132 | 69 |
Net derivative gains (losses) | (1,055) | 6 |
Net investment income (loss) | 161 | 29 |
Investment gains (losses), net | (1) | (5) |
Investment management and service fees | 128 | 5 |
Other income | 35 | 6 |
Total revenues | (196) | 171 |
BENEFITS AND OTHER DEDUCTIONS | ||
Policyholders’ benefits | 291 | 79 |
Remeasurement of liability for future policy benefits | (9) | (1) |
Change in market risk benefits and purchased market risk benefits | (1,034) | 1 |
Interest credited to policyholders’ account balances | 262 | 23 |
Compensation and benefits | 19 | 13 |
Commissions | 107 | 31 |
Amortization of deferred policy acquisition costs | 27 | 12 |
Amortization of reinsurance deposit assets | 153 | 1 |
Other operating costs and expenses | 94 | 22 |
Total benefits and other deductions | (90) | 181 |
Income (loss) from continuing operations, before income taxes | (106) | (10) |
Income tax (expense) benefit | 23 | 72 |
Net income (loss) | $ (83) | $ 62 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ (83) | $ 62 | |
Other comprehensive income (loss), net of income taxes: | |||
Change in unrealized gains (losses), net of adjustments | [1] | (71) | 75 |
Change in market risk benefits - instrument-specific credit risk | 48 | 4 | |
Change in liability for future policy benefits - current discount rate | 18 | 0 | |
Other comprehensive income (loss), net of income taxes | (5) | 79 | |
Comprehensive income (loss) | $ (88) | $ 141 | |
[1] See Note 12 of the Notes to these Consolidated Financial Statements for details of change in unrealized gains (losses), net of adjustments. |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings/ Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period at Dec. 31, 2022 | $ 231 | $ 3 | $ 831 | $ (222) | $ (381) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 62 | 62 | |||
Other comprehensive income (loss) | 79 | 79 | |||
Balance at end of period at Mar. 31, 2023 | 372 | 3 | 831 | (160) | (302) |
Balance at beginning of period at Dec. 31, 2022 | 231 | 3 | 831 | (222) | (381) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 113 | 113 | |||
Other comprehensive income (loss) | 36 | ||||
Balance at end of period at Jun. 30, 2023 | 1,431 | (109) | (345) | ||
Balance at beginning of period at Dec. 31, 2022 | 231 | 3 | 831 | (222) | (381) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 594 | 594 | |||
Other comprehensive income (loss) | (368) | (368) | |||
Balance at end of period at Sep. 30, 2023 | 1,506 | 371 | (750) | ||
Balance at beginning of period at Mar. 31, 2023 | 372 | 3 | 831 | (160) | (302) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 51 | 51 | |||
Other comprehensive income (loss) | (43) | ||||
Balance at end of period at Jun. 30, 2023 | 1,431 | (109) | (345) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 481 | 481 | |||
Other comprehensive income (loss) | (404) | (404) | |||
Balance at end of period at Sep. 30, 2023 | 1,506 | 371 | (750) | ||
Balance at beginning of period at Dec. 31, 2023 | 2,160 | 3 | 1,882 | 969 | (694) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (83) | (83) | |||
Other comprehensive income (loss) | (5) | (5) | |||
Other | 2 | 2 | |||
Balance at end of period at Mar. 31, 2024 | $ 2,074 | $ 3 | $ 1,884 | $ 886 | $ (699) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | |
Cash flows from operating activities: | |||||
Net income (loss) | $ (83) | $ 51 | $ 62 | $ 113 | $ 594 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||
Interest credited to policyholders’ account balances | 262 | 23 | |||
Policy charges and fee income | (404) | (410) | (61) | (471) | (882) |
Net derivative (gains) losses | 1,055 | 699 | (6) | 693 | 1,029 |
Investment (gains) losses, net | 1 | 5 | |||
Realized and unrealized (gains) losses on trading securities | 0 | 2 | |||
Non-cash long-term incentive compensation expense | 1 | 1 | |||
Amortization and depreciation | 142 | 13 | |||
Remeasurement of liability for future policy benefits | (9) | (1) | (1) | (2) | 21 |
Change in market risk benefits | (1,034) | 1 | (838) | (1,830) | |
Changes in: | |||||
Reinsurance recoverable | (43) | (9) | |||
Funds withheld receivable | 18 | 0 | (161) | (219) | |
Capitalization of deferred policy acquisition costs | (163) | (76) | |||
Future policy benefits | 154 | 9 | 222 | 365 | |
Current and deferred income taxes | (23) | (72) | (63) | ||
Other, net | 360 | 89 | 455 | 984 | |
Net cash provided by (used in) operating activities | 234 | (20) | 888 | 452 | |
Proceeds from the sale/maturity/prepayment of: | |||||
Fixed maturities, available-for-sale | 346 | 58 | |||
Short-term investments | 2 | 0 | |||
Payment for the purchase/origination of: | |||||
Fixed maturities, available-for-sale | (1,818) | (963) | |||
Mortgage loans on real estate | (254) | 0 | |||
Trading account securities | 0 | (2) | |||
Short-term investments | (5) | 0 | |||
Other | (4) | 0 | |||
Cash settlements related to derivative instruments, net | (101) | (96) | |||
Other, net | (12) | (6) | |||
Net cash provided by (used in) investing activities | (1,846) | (1,009) | |||
Policyholders’ account balances: | |||||
Deposits | 3,088 | 1,202 | |||
Withdrawals | (435) | (13) | |||
Transfer (to) from Separate Accounts | 27 | (15) | |||
Payments of market risk benefits | (190) | 0 | |||
Change in collateralized pledged assets | 2 | 0 | |||
Change in collateralized pledged liabilities | 773 | 96 | |||
Changes in securities lending payable | 21 | 0 | |||
Net cash provided by (used in) financing activities | 3,286 | 1,270 | |||
Change in cash and cash equivalents | 1,674 | 241 | |||
Cash and cash equivalents, beginning of period | 1,838 | $ 535 | 294 | $ 294 | $ 294 |
Cash and cash equivalents, end of period | $ 3,512 | $ 535 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Equitable Financial Life Insurance Company of America’s (collectively with its consolidated subsidiary, “Equitable America” or “the Company”) primary business is providing variable annuity, life insurance and employee benefit products to both individuals and businesses. The Company is an indirect, wholly-owned subsidiary of Equitable Holdings, Inc. (“Holdings”). Equitable America is a stock life insurance company organized under the laws of Arizona. Equitable Financial Investment Management America, LLC (“EFIMA”) is a subsidiary of Equitable America and is a wholly-owned indirect subsidiary of Holdings. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The unaudited interim consolidated financial statements (the “consolidated 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 consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2023. The terms “first quarter 2024” and “first quarter 2023” refer to the three months ended March 31, 2024 and 2023, respectively. The terms “first three months of 2024” and “first three months of 2023” refer to the three months ended March 31, 2024 and 2023, respectively. Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2023-07: Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU provides improvements to reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple measures of segment profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. A calendar year public entity will adopt the ASU for its 2024 Form 10-K. The ASU should be adopted retrospectively to all periods presented in the financial statements unless it is impracticable to do so. The Company is currently assessing the additional required disclosures under the ASU including providing new segment disclosure requirements for entities with a single reportable segment. Management is evaluating the impact the adoption of this guidance will have on the Company’s consolidated financial statements. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2023-09: Income Taxes (Topic 740): Improvements to Income Tax Disclosures The ASU enhanced existing income tax disclosures primarily related to the rate reconciliation and income taxes paid information. With regard to the improvements to disclosures of rate reconciliation, a public business entity is required on an annual basis to (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. Similarly, a public entity is required to provide the amount of income taxes paid (net of refunds received) disaggregated by (1) federal, state, and foreign taxes and by(2) individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The ASU also includes certain other amendments to improve the effectiveness of income tax disclosures, for example, an entity is required to provide (1) pretax income (or loss) from continuing operations disaggregated between domestic and foreign, and (2) income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. The ASU will be effective for annual periods beginning after December 15, 2024. Entities are required to apply the ASU on a prospective basis. The adoption of ASU 2023-09 is not expected to materially impact the Company’s financial position, results of operation, or cash flows. SEC Release Nos. 33-11275; 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors The SEC adopted rules requiring registrants to disclose climate-related information in registration statements and annual reports. The new rules include disclosure of material climate-related risks, including descriptions of board oversight and risk management activities. the material impacts of these risks on a registrant’s strategy, business model and outlook and any material climate-related targets or goals. In addition, registrants will need to quantify certain effects of severe weather events and other natural conditions in a note to their audited financial statements. In April 2024, citing litigation challenging the rules that commenced immediately after they were issued, the SEC issued an order staying applicability of the rules while judicial review proceeds. Financial statement and all other disclosures are required at the beginning of the fiscal year 2027 with disclosures about material expenditure and impact required at the beginning of the fiscal year 2028. Disclosures are provided prospectively upon adoption. The Company is currently assessing the additional required disclosures under the SEC Release. Management is evaluating the impact of the adoption of this guidance will have on the Company’s consolidated financial statements. Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company, the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity is determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, the Company consolidates the entity. Quarterly, management of the Company reviews its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts, and limited partnerships. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. Consolidated VIEs As of March 31, 2024 and December 31, 2023, the Company consolidated limited partnerships and LLCs for which it was identified as the primary beneficiary under the VIEs model. Included in other invested assets and mortgage loans on real estate in the Company’s consolidated balance sheets at March 31, 2024 and December 31, 2023 are total assets of $149 million and $0 million, respectively related to these VIEs. Non-Consolidated VIEs As of March 31, 2024 and December 31, 2023, respectively, the Company held approximately $4 million and $0 million of investment assets in the form of equity interests issued by non-corporate legal entities determined under the guidance to be VIEs, such as limited partnerships and limited liability companies, including CLOs, hedge funds, private equity funds and real estate-related funds. As an equity investor, the Company is considered to have a variable interest in each of these VIEs as a result of its participation in the risks and/or rewards these funds were designed to create by their defined portfolio objectives and strategies. Primarily through qualitative assessment, including consideration of related party interests or other financial arrangements, if any, the Company was not identified as the primary beneficiary of any of these VIEs, largely due to its inability to direct the activities that most significantly impact their economic performance. Consequently, the Company continues to reflect these equity interests in the consolidated balance sheets as other equity investments and applies the equity method of accounting for these positions. The net assets of these non-consolidated VIEs are approximately $46 million and $0 million as of March 31, 2024 and December 31, 2023, respectively. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $4 million and $0 million and approximately $207 million and $147 million of unfunded commitments as of March 31, 2024 and December 31, 2023, respectively. The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. Revision of Previously Issued Financial Statements The Company identified certain errors in its previously issued financial statements primarily related to the initial and ongoing recording for the Reinsurance Treaty and coding errors impacting the inforce used to calculate actuarial reserves. The impact of these errors to prior periods’ financial statements was not considered to be material. In order to improve the consistency and comparability of the financial statements, management revised the financial statements to include the revisions discussed herein. See Note 16 of the Notes to these Financial Statements for details of the revision. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Fixed Maturities AFS The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of March 31, 2024 and December 31, 2023 was $89 million and $78 million, respectively. There was no accrued interest written off for AFS fixed maturities for the three months ended March 31, 2024 and 2023. 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) March 31, 2024: Fixed Maturities: Corporate (1) $ 6,281 $ — $ 60 $ 317 $ 6,024 U.S. Treasury, government and agency 15 — — 1 14 States and political subdivisions 51 — — 8 43 Foreign governments 49 — 1 1 49 Residential mortgage-backed 1,112 — 8 8 1,112 Asset-backed (2) 3,778 — 34 3 3,809 Commercial mortgage-backed 265 — 2 12 255 Total at March 31, 2024 $ 11,551 $ — $ 105 $ 350 $ 11,306 December 31, 2023: Fixed Maturities: Corporate (1) $ 5,842 $ — $ 96 $ 276 $ 5,662 U.S. Treasury, government and agency 15 — — — 15 States and political subdivisions 50 — — 7 43 Foreign governments 31 — 1 1 31 Residential mortgage-backed 961 — 15 4 972 Asset-backed (2) 2,956 — 32 2 2,986 Commercial mortgage-backed 195 — 1 14 182 Total at December 31, 2023 $ 10,050 $ — $ 145 $ 304 $ 9,891 ______________ (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 March 31, 2024 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) March 31, 2024: Contractual maturities: Due in one year or less $ 123 $ 123 Due in years two through five 1,599 1,587 Due in years six through ten 3,260 3,199 Due after ten years 1,414 1,221 Subtotal 6,396 6,130 Residential mortgage-backed 1,112 1,112 Asset-backed 3,778 3,809 Commercial mortgage-backed 265 255 Total at March 31, 2024 $ 11,551 $ 11,306 The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities: Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities Three Months Ended March 31, 2024 2023 (in millions) Proceeds from sales $ — $ 50 Gross gains on sales $ — $ — Gross losses on sales $ — $ (5) 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 March 31, 2024 2023 (in millions) Balance, beginning of period $ — $ — Previously recognized impairments on securities that matured, paid, prepaid or sold — — Balance, end of period $ — $ — The tables below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI: Net Unrealized Gains (Losses) on AFS Fixed Maturities Three Months Ended March 31, 2024 Net Unrealized Gains (Losses) on Investments Policyholders’ Liabilities Deferred Income Tax Asset (Liability) (1) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (1) (in millions) Balance, beginning of period $ (159) $ 8 $ (33) $ (184) Net investment gains (losses) arising during the period (85) — — (85) Reclassification adjustment: Included in net income (loss) — — — — Other — — (4) (4) Impact of net unrealized investment gains (losses) — 1 18 19 Net unrealized investment gains (losses) excluding credit losses (244) 9 (19) (254) Balance, end of period $ (244) $ 9 $ (19) $ (254) Three Months Ended March 31, 2023 Balance, beginning of period $ (388) $ 8 $ (1) $ (381) Net investment gains (losses) arising during the period 71 — — 71 Reclassification adjustment: Included in net income (loss) 5 — — 5 Other — — 16 16 Impact of net unrealized investment gains (losses) — (2) (16) (18) Net unrealized investment gains (losses) excluding credit losses (312) 6 (1) (307) Balance, end of period $ (312) $ 6 $ (1) $ (307) _____________ (1) Certain balances were revised from previously filed financial statements. The following tables disclose the fair values and gross unrealized losses of the 1,088 issues as of March 31, 2024 and the 891 issues as of December 31, 2023 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) March 31, 2024: Fixed Maturities: Corporate $ 1,237 $ 16 $ 1,974 $ 301 $ 3,211 $ 317 U.S. Treasury, government and agency — — 8 1 8 1 States and political subdivisions — — 32 8 32 8 Foreign governments 25 1 4 — 29 1 Residential mortgage-backed 396 4 19 4 415 8 Asset-backed 733 2 21 1 754 3 Commercial mortgage-backed 1 — 60 12 61 12 Total at March 31, 2024 $ 2,392 $ 23 $ 2,118 $ 327 $ 4,510 $ 350 December 31, 2023: Fixed Maturities: Corporate $ 505 $ 7 $ 1,900 $ 269 $ 2,405 $ 276 U.S. Treasury, government and agency — — 8 — 8 — States and political subdivisions — — 33 7 33 7 Foreign governments 7 1 4 — 11 1 Residential mortgage-backed 103 — 9 4 112 4 Asset-backed 290 1 23 1 313 2 Commercial mortgage-backed 29 — 61 14 90 14 Total at December 31, 2023 $ 934 $ 9 $ 2,038 $ 295 $ 2,972 $ 304 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 1.4% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of March 31, 2024 and December 31, 2023 were $83 million and $82 million, respectively, representing 4.0% and 3.8% of the consolidated equity of the Company. Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of March 31, 2024 and December 31, 2023, respectively, approximately $138 million and $92 million, or 1.2% and 0.9%, of the $11.6 billion and $10.1 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $0 million and $0 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, respectively, the $327 million and $295 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 Consolidated Financial Statements, the Company concluded that an allowance for credit losses for these securities was not warranted at either March 31, 2024 or December 31, 2023. As of March 31, 2024 and December 31, 2023, 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 March 31, 2024, the Company determined that the unrealized loss was primarily due to increases in interest rates and credit spreads. Securities Lending Beginning in 2023, the Company has entered into securities lending agreements with an agent bank whereby blocks of securities are loaned to third parties, primarily major brokerage firms. As of March 31, 2024 and December 31, 2023, the estimated fair value of loaned securities was $21 million and $23 million. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as cash collateral, calculated daily. To further minimize the credit risks related to these programs, the financial condition of counterparties is monitored on a regular basis. As of March 31, 2024 and December 31, 2023, cash collateral received in the amount of $21 million and $23 million was invested by the agent bank. A securities lending payable for the overnight and continuous loans is included in other liabilities in the amount of cash collateral received. Securities lending transactions are used to generate income. Income and expenses associated with these transactions are reported as net investment income and were not material for the March 31, 2024 and December 31, 2023. Mortgage Loans on Real Estate In 2024 the Company began investing in residential mortgage loans. Accrued interest receivable on commercial and residential mortgage loans was $3 million and $1 million as of March 31, 2024 and December 31, 2023 and no accrued interest was written off for the three months ended March 31, 2024 and 2023. As of March 31, 2024 and December 31, 2023, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses. Allowance for Credit Losses on Mortgage Loans The change in the allowance for credit losses for commercial and residential mortgage loans were as follows: Three Months Ended March 31, 2024 2023 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 2 $ — Current-period provision for expected credit losses 1 — Write-offs charged against the allowance — — Recoveries of amounts previously written off — — Net change in allowance 1 — Balance, end of period $ 3 $ — Residential mortgages: Balance, beginning of period $ — $ — Current-period provision for expected credit losses — — Write-offs charged against the allowance — — Recoveries of amounts previously written off — — Net change in allowance — — Balance, end of period $ — $ — Total allowance for credit losses $ 3 $ — The change in the allowance for credit losses is attributable to: • increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization and • changes in credit quality and economic assumptions. Credit Quality Information The Company’s commercial mortgage loans segregated by risk rating exposure were as follows: Loan to Value (“LTV”) Ratios (1) (3) March 31, 2024 Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial mortgage loans: 0% - 50% $ — $ 58 $ — $ — $ — $ 17 $ — $ — $ 75 50% - 70% 122 221 — — — — — — 343 70% - 90% — — — — — — — — — 90% plus — — — — — — — — — Total commercial $ 122 $ 279 $ — $ — $ — $ 17 $ — $ — $ 418 Debt Service Coverage (“DSC”) Ratios (2) (3) March 31, 2024 Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial mortgage loans: Greater than 2.0x $ — $ — $ — $ — $ — $ 17 $ — $ — $ 17 1.8x to 2.0x 40 — — — — — — — 40 1.5x to 1.8x — — — — — — — — — 1.2x to 1.5x 82 221 — — — — — — 303 1.0x to 1.2x — 58 — — — — — — 58 Less than 1.0x — — — — — — — — — Total commercial $ 122 $ 279 $ — $ — $ — $ 17 $ — $ — $ 418 _____________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Residential mortgage loans are excluded from the above tables. LTV Ratios (1) (3) December 31, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial mortgage loans: 0% - 50% $ 58 $ — $ — $ — $ — $ 17 $ — $ — $ 75 50% - 70% 221 — — — — — — — 221 70% - 90% — — — — — — — — — 90% plus — — — — — — — — — Total commercial $ 279 $ — $ — $ — $ — $ 17 $ — $ — $ 296 DSC Ratios (2) (3) December 31, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial mortgage loans: Greater than 2.0x $ — $ — $ — $ — $ — $ 17 $ — $ — $ 17 1.8x to 2.0x — — — — — — — — — 1.5x to 1.8x — — — — — — — — — 1.2x to 1.5x 221 — — — — — — — 221 1.0x to 1.2x 58 — — — — — — — 58 Less than 1.0x — — — — — — — — — Total commercial $ 279 $ — $ — $ — $ — $ 17 $ — $ — $ 296 _____________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Residential mortgage loans are excluded from the above tables. The amortized cost of residential mortgage loans by credit quality indicator and origination year was as follows: March 31, 2024 Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Total (in millions) Performance indicators: (1) Performing $ — $ 96 $ 18 $ 16 $ 1 $ — $ 131 Nonperforming — — — — — — — Total $ — $ 96 $ 18 $ 16 $ 1 $ — $ 131 _____________ (1) The Company began investing in residential mortgages in 2024. Therefore, 2023 comparative information is not applicable. Past-Due and Nonaccrual Mortgage Loan Status The aging analysis of past-due mortgage loans were as follows: Age Analysis of Past Due Mortgage Loans (1) Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Total (in millions) March 31, 2024: Mortgage loans: Commercial $ — 0 $ — $ — $ — $ 418 $ 418 $ — $ 418 $ — $ — Residential — 0 — — — 131 131 — 131 — — Total $ — $ — $ — $ — $ 549 $ 549 $ — $ 549 $ — $ — December 31, 2023: Mortgage loans: Commercial $ — $ — $ — $ — $ 296 $ 296 $ — $ 296 $ — $ — Residential — — — — — — — — — — Total $ — $ — $ — $ — $ 296 $ 296 $ — $ 296 $ — $ — ________________ (1) Amounts presented at amortized cost basis. As of March 31, 2024 and December 31, 2023, the amortized cost of problem mortgage loans that had been classified as non-accrual loans were $0 million and $0 million, respectively. Equity Securities The breakdown of unrealized and realized gains and (losses) on equity securities was as follows: Unrealized and Realized Gains (Losses) from Equity Securities Three Months Ended March 31, 2024 2023 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ — $ (1) Unrealized and realized gains (losses) on equity securities $ — $ (1) Trading Securities As of March 31, 2024 and December 31, 2023, respectively, the fair value of the Company’s trading securities was $0 million and $0 million. As of March 31, 2024 and December 31, 2023, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $1 million and $1 million. The breakdown of net investment income (loss) from trading securities was as follows: Net Investment Income (Loss) from Trading Securities Three Months Ended March 31, 2024 2023 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ — $ (2) Unrealized and realized gains (losses) on trading securities — (2) Net investment income (loss) from trading securities $ — $ (2) Net Investment Income The following tables provide the components of net investment income by investment type: Three Months Ended March 31, 2024 2023 (in millions) Fixed maturities $ 143 $ 29 Mortgage loans on real estate 7 — Policy loans 1 1 Other equity investments 1 (1) Trading securities — (2) Other investment income 13 3 Gross investment income (loss) 165 30 Investment expenses (4) (1) Net investment income (loss) $ 161 $ 29 Investment Gains (Losses), Net Investment gains (losses), net, including changes in the valuation allowances and credit losses were as follows: Three Months Ended March 31, 2024 2023 (in millions) Fixed maturities $ — $ (5) Mortgage loans on real estate (1) — Investment gains (losses), net $ (1) $ (5) |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2024 | |
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 which are accounted for as market risk benefits. 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 feature and are accounted for as market risk benefits is that under-performance of the financial markets could result in the GMxB 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. Derivatives Utilized to Hedge Crediting Rate Exposure on SCS, SIO, MSO and IUL Products/Investment Options The Company hedges crediting rates in the SCS variable annuity, SIO in the EQUI-VEST variable annuity series, MSO in the variable life insurance products and IUL insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment. In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers, thereby substantially reducing any exposure to market-related earnings volatility. 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 fair value of the Company’s derivatives: Derivative Instruments by Category March 31, 2024 December 31, 2023 Fair Value Fair Value Notional Derivative Assets Derivative Net Derivatives Notional Derivative Assets Derivative Net Derivatives (in millions) Derivatives: (1) Equity contracts: Futures $ 2,470 $ — $ — $ — $ 2,277 $ — $ — $ — Options 6,957 2,096 538 1,558 4,930 1,370 402 968 Interest rate contracts: Futures 719 — — — 522 — — — Other contracts: Margin — 138 — 138 — 133 — 133 Collateral — — 1,551 (1,551) — — 956 (956) Total: 10,146 2,234 2,089 145 7,729 1,503 1,358 145 Embedded derivatives: SCS, SIO, MSO and IUL indexed features (2) — — 11,222 (11,222) — — 8,804 (8,804) Funds withheld receivable (3) — (29) — (29) — 100 — 100 Modco receivable (2) — — (292) 292 — — (411) 411 Total embedded derivatives — (29) 10,930 (10,959) — 100 8,393 (8,293) Total derivative instruments $ 10,146 $ 2,205 $ 13,019 $ (10,814) $ 7,729 $ 1,603 $ 9,751 $ (8,148) ______________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in policyholders’ account balances in the consolidated balance sheets. (3) Reported in funds withheld receivable in the consolidated balance sheets. The following table presents the effects of derivative instruments on the consolidated statements of income (loss) and comprehensive income (loss): Three Months Ended March 31, 2024 2023 Net Derivatives Gains (Losses) (in millions) Derivatives: Equity contracts: Futures $ 157 $ 16 Options 394 6 Interest rate contracts: Futures (24) 20 Total: 527 42 Three Months Ended March 31, 2024 2023 Net Derivatives Gains (Losses) (in millions) Embedded Derivatives: SCS, SIO, MSO and IUL indexed features (2,537) (36) Funds withheld receivable (1,017) — Modco receivable 1,972 — Total Embedded Derivatives (1,582) (36) Total Derivatives instruments (1) $ (1,055) $ 6 ______________ (1) Reported in net derivative gains (losses) in the consolidated statements of income (loss). Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based futures contracts as of March 31, 2024 and December 31, 2023 are exchange-traded and net settled daily in cash. As of March 31, 2024 and December 31, 2023, 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 $113 million and $113 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 $26 million and $20 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 March 31, 2024 and December 31, 2023, respectively, the Company held $1,551 million and $956 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 $0 million and $0 million as of March 31, 2024 and December 31, 2023, 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 March 31, 2024 and December 31, 2023, 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 present information about the Company’s offsetting of financial assets and liabilities and derivative instruments: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of March 31, 2024 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 $ 2,235 $ 2,089 $ 146 $ — $ 146 Secured lending 21 — 21 — 21 Other financial assets 7 — 7 — 7 Other invested assets $ 2,263 $ 2,089 $ 174 $ — $ 174 Liabilities: Derivative liabilities $ 2,089 $ 2,089 $ — $ — $ — Secured lending 21 — 21 — 21 Other financial liabilities 2,207 — 2,207 — 2,207 Other liabilities $ 4,317 $ 2,089 $ 2,228 $ — $ 2,228 ______________ (1) Financial instruments sent (held). As of December 31, 2023 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 $ 1,503 $ 1,177 $ 326 $ (178) $ 148 Secured lending 6 — 6 — 6 Other financial assets 19 — 19 — 19 Other invested assets $ 1,528 $ 1,177 $ 351 $ (178) $ 173 Liabilities: Derivative liabilities $ 1,180 $ 1,177 $ 3 $ — $ 3 Secured lending 6 — 6 — 6 Other financial liabilities 2,160 — 2,160 — 2,160 Other liabilities $ 3,346 $ 1,177 $ 2,169 $ — $ 2,169 ______________ (1) Financial instruments sent (held). |
DAC AND OTHER DEFERRED ASSETS_L
DAC AND OTHER DEFERRED ASSETS/LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
Contract Holder Bonus Interest Credits [Abstract] | |
DAC AND OTHER DEFERRED ASSETS/LIABILITIES | DAC AND OTHER DEFERRED ASSETS/LIABILITIES The following table presents a reconciliation of DAC to the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) VUL $ 467 $ 457 IUL 290 293 GMxB Core 144 119 Investment Edge 31 22 SCS 375 289 Other 41 32 Total $ 1,348 $ 1,212 Annually, or as circumstances warrant, we review the associated decrements assumptions (i.e. mortality and lapse) based on our multi-year average of companies experience with actuarial judgements to reflect other observable industry trends. In addition to DAC, the Unearned Revenue Liability and Sales Inducement Asset (“SIA”) use similar techniques and quarterly update processes for balance amortization. Changes in the DAC asset were as follows: Three Months Ended March 31, 2024 VUL (1) IUL (2) GMxB Core IE (3) SCS Total (in millions) Balance, beginning of period $ 457 $ 293 $ 119 $ 22 $ 289 $ 1,180 Capitalization 16 2 28 10 98 154 Amortization (6) (5) (3) (1) (12) (27) Balance, end of period $ 467 $ 290 $ 144 $ 31 $ 375 $ 1,307 ______________ (1) “VUL” defined as Variable Universal Life. (2) “IUL” defined as Indexed Universal Life. (3) “IE” defined as Investment Edge. Three Months Ended March 31, 2023 VUL IUL GMxB Core IE SCS Total (in millions) Balance, beginning of period $ 410 $ 296 $ 40 $ 1 $ 13 $ 760 Capitalization 17 3 9 5 42 76 Amortization (6) (4) (1) — (1) (12) Balance, end of period $ 421 $ 295 $ 48 $ 6 $ 54 $ 824 Changes in the unearned revenue liability were as follows: Three Months Ended March 31, 2024 2023 VUL IUL VUL IUL (in millions) Balance, beginning of period $ 203 $ 210 $ 159 $ 157 Capitalization 15 14 13 17 Amortization (3) (3) (2) (3) Balance, end of period $ 215 $ 221 $ 170 $ 171 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2024 | |
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 are also 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 March 31, 2024 and December 31, 2023, 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 March 31, 2024 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 5,924 $ 100 $ 6,024 U.S. Treasury, government and agency — 14 — 14 States and political subdivisions — 43 — 43 Foreign governments — 49 — 49 Residential mortgage-backed — 1,112 — 1,112 Asset-backed (2) — 3,771 38 3,809 Commercial mortgage-backed — 254 1 255 Total fixed maturities, AFS — 11,167 139 11,306 Other equity investments — 20 — 20 Other invested assets: Trading securities — — — — Short-term investments — 3 — 3 Options — 1,558 — 1,558 Total other invested assets — 1,561 — 1,561 Cash equivalents 3,174 — — 3,174 Funds withheld receivable (3) (5) — — (29) (29) Purchased market risk benefits — — 7 7 Assets for market risk benefits — — 34 34 Separate Accounts assets (4) 6,622 7 — 6,629 Total Assets $ 9,796 $ 12,755 $ 151 $ 22,702 Liabilities: Policyholders’ account balances: SCS, MSO and IUL indexed features’ liability — 11,222 — 11,222 Modco receivable (5) — — (292) (292) Liabilities for market risk benefits — — 6,383 6,383 Total Liabilities $ — $ 11,222 $ 6,091 $ 17,313 ______________ (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) As discussed in Note 2, the funds withheld receivable was created through a funds withheld and modified coinsurance agreement where the investments supporting the reinsurance agreement are withheld by and continue to reside on Equitable Financial’s consolidated balance sheet. This embedded derivative is valued as a total return swap with references to the fair value of the invested assets held by the Equitable Financial, which are primarily available for sale securities. (4) Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $201 million. (5) The embedded derivative is partially reflected in funds withheld receivable and policyholders’ account balance. The portion within Policyholders’ account balances relates to the non-insulated products assumed on a modified coinsurance basis and is reflected net of assumed liabilities on the balance sheet. Fair Value Measurements as of December 31, 2023 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 5,575 $ 87 $ 5,662 U.S. Treasury, government and agency — 15 — 15 States and political subdivisions — 43 — 43 Foreign governments — 31 — 31 Residential mortgage-backed — 972 — 972 Asset-backed (2) — 2,962 24 2,986 Commercial mortgage-backed — 181 1 182 Total fixed maturities, AFS — 9,779 112 9,891 Other equity investments — 19 — 19 Other invested assets: Options — 968 — 968 Total other invested assets — 968 — 968 Cash equivalents 1,654 — — 1,654 Funds withheld receivable (3) (5) — — 100 100 Purchased market risk benefits — — 9 9 Assets for market risk benefits — — 24 24 Separate Accounts assets (4) 5,747 7 — 5,754 Total Assets $ 7,401 $ 10,773 $ 245 $ 18,419 Liabilities: Policyholders’ account balances: SCS, SIO, MSO and IUL indexed features’ liability — 8,804 — 8,804 Modco receivable (5) — — (411) (411) Liabilities for market risk benefits — — 7,333 7,333 Total Liabilities $ — $ 8,804 $ 6,922 $ 15,726 ______________ (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) As discussed in Note 2, the funds withheld receivable was created through a funds withheld and modified coinsurance agreement where the investments supporting the reinsurance agreement are withheld by and continue to reside on Equitable Financial’s consolidated balance sheet. This embedded derivative is valued as a total return swap with references to the fair value of the invested assets held by the Equitable Financial, which are primarily available for sale securities. (4) Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $1 million. (5) The embedded derivative is partially reflected in funds withheld receivable and policyholders’ account balance. The portion within Policyholders’ account balances relates to the non-insulated products assumed on a modified coinsurance basis and is reflected net of assumed liabilities on the balance sheet. 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 Consolidated Financial Statements are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including overnight index swap curves, and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable. Funds Withheld Receivable Reinsurance agreements written on a funds withheld or modified coinsurance basis contain embedded derivatives. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by Equitable Financial. Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the reinsurance agreements that are held on Equitable Financial’s consolidated balance sheet. 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 has certain variable annuity contracts with GMDB, GMIB, GIB and GWBL and other features in-force that guarantee one of the following: • Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals); • Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals); • Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages; • Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include either a five year or an annual reset; or • Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life. The Company also issues certain benefits on its variable annuity products that are accounted for as market risk benefits carried at fair value and are also considered Level 3 for fair value leveling. The GMIBNLG 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 optional GMIB feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates. The GMWB feature allows the policyholder to withdraw at a minimum, over the life of the contract, an amount based on the contract’s benefit base. The GWBL feature allows the policyholder to withdraw, each year for the life of the contract, a specified annual percentage of an amount based on the contract’s benefit base. The GMAB feature increases the contract account value at the end of a specified period to a GMAB base. The GIB feature provides a lifetime annuity based on predetermined annuity purchase rates if and when the contract account value is depleted. This lifetime annuity is based on predetermined annuity purchase rates applied to a GIB base. The GMDB feature guarantees that the benefit paid upon death will not be less than a guaranteed benefit base. If the contract’s account value is less than the benefit base at the time a death claim is paid, the amount payable will be equal to the benefit base. The market risk benefits fair value will be equal to the present value of benefits less the present value of ascribed fees. Considerable judgment is utilized by management in determining the assumptions used in determining present value of benefits and ascribed fees related to lapse rates, withdrawal rates, utilization rates, non-performance risk, volatility rates, annuitization rates and mortality (collectively, the significant MRB assumptions). Purchased MRB assets, which are accounted for as market risk benefits carried at fair value are also considered Level 3 for fair value leveling. The purchased MRB asset fair value reflects the present value of reinsurance premiums, net of recoveries, adjusted for risk margins and nonperformance risk over a range of market consistent economic scenarios while the MRB asset and liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to the MRB asset and liability over a range of market-consistent economic scenarios. The valuations of the purchased MRB assets incorporate significant non-observable assumptions related to policyholder behavior, risk margins and projections of equity Separate Accounts funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its purchased MRB asset after taking into account the effects of collateral arrangements. Incremental adjustment to the risk free curve for counterparty non-performance risk is made to the fair values of the purchased MRB assets. Risk margins were applied to the non-capital markets inputs to the purchased MRB valuations. The Company also issues certain benefits on its variable annuity products that are accounted for as market risk benefits carried at fair value and are also considered Level 3. See Note 8 of the Notes to these Consolidated Financial Statements for further description of our market risk benefits fair value. The funds withheld embedded derivative receivable is determined based upon a total return swap technique referencing the fair value of the investments held under the reinsurance contract as collateral and requires certain unobservable inputs. The funds withheld embedded derivative are considered Level 3 in the fair value hierarchy. Transfers of Financial Instruments Between Levels 2 and 3 During the three months ended March 31, 2024, there were $0 million AFS fixed maturities transferred out of Level 3 and into Level 2 and no AFS fixed maturities transferred out of Level 2 and into Level 3. These transfers in the aggregate represent approximately 0.0% of total consolidated equity as of March 31, 2024. During the three months ended March 31, 2023, there were $10 million AFS fixed maturities transferred out of Level 3 and into Level 2 and no AFS fixed maturities transferred out of Level 2 and into Level 3. These transfers in the aggregate represent approximately 2.7% of total consolidated equity as of March 31, 2023. The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses). Not included below are the changes in balances related to market risk benefits and purchased market risk benefits level 3 assets and liabilities, which are included in Note 8 of the Notes to these Consolidated Financial Statements. Level 3 Instruments - Fair Value Measurements Three Months Ended March 31, 2024 Corporate Asset-backed CMBS Funds Withheld Receivable Modco Receivable (in millions) Balance, beginning of period $ 87 $ 24 $ 1 $ 100 $ (411) 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 15 25 — — — Sales (2) (11) — — — Change in fair value of funds withheld assets — — (129) 119 Transfers into Level 3 (1) — — — — — Transfers out of Level 3 (1) — — — — — Balance, end of period $ 100 $ 38 $ 1 $ (29) $ (292) Three Months Ended March 31, 2024 Corporate Asset-backed CMBS Funds Withheld Receivable Modco Receivable (in millions) 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. $ — $ — $ — $ — $ — Three Months Ended March 31, 2023 Corporate Asset-backed CMBS Funds Withheld Receivable Modco Receivable (in millions) Balance, beginning of period $ 18 $ — $ — $ — $ — 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 29 — — — — Sales — — — — — Transfers into Level 3 (1) — — — — — Transfers out of Level 3 (1) (10) — — — — Balance, end of period $ 37 $ — $ — $ — $ — 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: Quantitative Information about Level 3 Fair Value Measurements as of March 31, 2024 Fair Valuation Technique Significant Range Weighted Average (Dollars in millions) Assets:(5) Investments: Fixed maturities, AFS: Corporate $ 42 Matrix pricing model Spread over benchmark 95 bps - 270 bps 132 bps $ 17 Market comparable companies EBITDA multiples Discount Rate Cashflow Multiples Loan to Value 3.3x - 30.5x 0.0% - 19.2% 0.8x - 9.3x 0.0% - 61.4% 0.0x 0.0% 0.0x 0.00% Other equity investments — Discounted Cash Flow Earnings Multiple 3.9x - 7.0x 5.9x Purchased MRB asset (1) (2) (4) 7 Discounted cash flow Lapse rates Withdrawal rates Annuitization rates Non-performance risk (bps) Mortality: Ages 0-40 Ages 41-60 Ages 61-115 N/A N/A Liabilities: Direct MRB (1) (2) (3) (4) $ 6,349 Discounted cash flow Non-performance risk (bps) Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115 22 bps - 117 bps 0.21% - 29.37% 0.00% - 14.97% 0.04% - 100.00% 0.01% - 0.18% 0.07% - 0.53% 0.33% - 42.00% 22 bps 3.97% 0.69% 3.09% 2.65% (same for all ages) (same for all ages) ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. (2) Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. GMIB utilization rates were developed as a function of the GMIB benefit base (3) MRB liabilities are shown net of MRB assets. Net amount is made up of $6,383 million of MRB liabilities and $34 million of MRB asset. (4) Includes Core products. (5) Funds withheld and modco receivable that contain embedded derivatives held at fair value are excluded from the tables above. The funds withheld receivable embedded derivative utilizes a total return swap technique which incorporates the fair value of the invested assets supporting the reinsurance agreement as a component of the valuation. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2023 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (Dollars in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 39 Matrix pricing model Spread over benchmark 95 bps - 120 bps 118 bps Purchased MRB asset (1) (2) (4) 9 Discounted cash flow Lapse rates Withdrawal rates Annuitization Non-performance risk (bps) Mortality: Ages 0-40 Ages 41-60 Ages 61-115 N/A N/A Liabilities: Direct MRB (1) (2) (3) (4) $ 7,309 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115 23 bps - 118 bps 0.21% - 29.37% 0.00% - 14.97% 0.04% - 100.00% 0.01% - 0.18% 0.07% - 0.53% 0.33% - 42.00% 23 bps 3.99% 0.67% 3.04% 2.62% (same for all ages) (same for all ages) ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. (2) Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. GMIB utilization rates were developed as a function of the GMIB benefit base. (3) MRB liabilities are shown net of MRB assets. Net amount is made up of $7,333 million of MRB liabilities and $24 million of MRB assets. (4) Includes Core products. 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 March 31, 2024 and December 31, 2023, respectively, are approximately $80 million and $73 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 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. Market Risk Benefits Significant unobservable inputs with respect to the fair value measurement of the purchased MRB assets and MRB liabilities identified in the table above are developed using Company data. Future policyholder behavior is an unobservable market assumption and as such all aspects of policyholder behavior are derived based on recent historical experience. These policyholder behaviors include lapses, pro-rata withdrawals, dollar for dollar withdrawals, GMIB utilization, deferred mortality and payout phase mortality. Many of these policyholder behaviors have dynamic adjustment factors based on the relative value of the rider as compared to the account value in different economic environments. This applies to all variable annuity related products; products with GMxB riders including but not limited to GMIB, GMDB and GWL. Lapse rates are adjusted at the contract level based on a comparison of the value of the embedded GMxB rider 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 purchased MRB assets and MRB liabilities, lapse rates vary throughout the period over which cash flows are projected. Carrying Value of Financial Instruments Not Otherwise Disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements The carrying values and fair values for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements were as follows. Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) March 31, 2024: Mortgage loans on real estate $ 546 $ — $ — $ 414 $ 414 Policy loans $ 278 $ — $ — $ 281 $ 281 Funds withheld receivable $ 9,784 $ — $ — $ 9,784 $ 9,784 Modco receivable $ 31,045 $ — $ — $ 31,045 $ 31,045 Policyholders’ liabilities: Investment contracts $ 106 $ — $ — $ 103 $ 103 Separate Accounts liabilities $ 434 $ — $ — $ 434 $ 434 December 31, |
LIABILITIES FOR FUTURE POLICYHO
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS | LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS The following tables reconcile the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) Reconciliation Payout - Legacy $ 447 $ 340 UL (1) 347 344 Other (2) 371 365 Subtotal 1,165 1,049 Other policy funds (3) 636 604 Grand total $ 1,801 $ 1,653 ______________ (1) Represents the SOP NLG Rider on UL contracts assumed from Equitable Financial. (2) Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits. (3) Includes $439 million of URL of which $436 million is covered in Note 5 of the Notes to these Consolidated Financial Statements. The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts. The payout annuities result from annuitization of current contracts. Inflows are the liquidation of the account values not premiums: Three Months Ended March 31, Payout-Legacy 2024 2023 (Dollars in millions) Present Value of Expected Future Policy Benefits Balance, beginning of period $ 340 $ — Beginning balance of original discount rate 333 — Effect of changes in cash flow assumptions — — Effect of actual variances from expected experience — — Adjusted beginning of period balance 333 — Issuances 119 — Interest accrual 4 — Benefits payments (8) — Ending balance at original discount rate 448 — Effect of changes in discount rate assumptions (1) — Balance, end of period $ 447 $ — Net liability for future policy benefits $ 447 $ — Less: Reinsurance recoverable — — Net liability for future policy benefits, after reinsurance recoverable $ 447 $ — Weighted-average duration of liability for future policyholder benefits (years) 7.7 — The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts: March 31, 2024 December 31, 2023 (in millions) Payout-Legacy Expected future benefit payments and expenses (undiscounted) $ 686 $ 508 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted) 447 340 Expected future gross premiums (discounted) — — The following table provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities : Three Months Ended March 31, 2024 2023 2024 2023 Gross Premium Interest Accretion (in millions) Revenue and Interest Accretion Payout - Legacy (1) $ 27 $ — $ 6 $ — Total $ 27 $ — $ 6 $ — ______________ (1) Gross premium reflected is the liquidation of Account Value at time of annuitization. The following table provides the weighted average interest rates for the liability for future policy benefits: March 31, 2024 December 31, 2023 Weighted Average Interest Rate Payout-Legacy Interest accretion rate 5.1 % 5.3 % Current discount rate 5.2 % 5.0 % The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities: Three Months Ended March 31, 2024 2023 UL (1) Universal Life (2) (Dollars in millions) Balance, beginning of period $ 344 $ 58 Beginning balance before AOCI adjustments 344 66 Effect of changes in interest rate and cash flow assumptions and model changes — — Effect of actual variances from expected experience (1) (1) Adjusted beginning of period balance 343 65 Issuances — — Interest accrual 4 1 Net assessments collected 4 2 Benefit payments (4) — Ending balance before shadow reserve adjustments 347 68 Effect of shadow reserve adjustment — (6) Balance, end of period $ 347 $ 62 Net liability for additional liability $ 347 $ 62 Effect of reserve adjustment recorded in AOCI — — Net liability for additional liability, after reinsurance recoverable $ 347 $ 62 Weighted-average duration of additional liability - death benefit (years) 17.5 32.3 ______________ (1) The 2024 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial. (2) The 2023 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 16 of the Notes to these Consolidated Financial Statements, these are no longer material and are not disclosed separately. The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Assessments Interest Accretion Assessments Interest Accretion (in millions) Revenue and Interest Accretion UL (1) $ 124 $ 4 $ 5 $ — Total $ 124 $ 4 $ 5 $ — _____________ (1) The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial. Three Months Ended March 31, 2024 2023 Universal Life Weighted Average Interest Rate UL 4.5 % 5.5 % Interest accretion rate 4.5 % 5.5 % Prescribed and Permitted Accounting Practices As of March 31, 2024, the following two prescribed and permitted practices resulted in surplus that is different from the statutory surplus that would have been reported had NAIC statutory accounting practices been applied. During 2022, Equitable Life Financial Insurance Company of America received approval from the Arizona Department of Insurance and Financial Institutions pursuant to A.R.S. 20-515 for Separate Account No. 68A (“SA 68A”) for our Structured Capital Strategies product, Separate Account No. 69A (“SA 69A”) for our EQUI-VEST product Structured Investment Option and Separate Account No. 71A (“SA 71A”) for our Investment Edge Structured Investment Option, to permit us to use book value as the accounting basis of these three non-insulated Separate Accounts instead of fair value in accordance with the NAIC Accounting and Practices and Procedures Manual to align with how we manage and measure our overall general account asset portfolio. The impact of the application is an decrease of approximately $72 million in statutory surplus as of March 31, 2024. The Arizona Department of Insurance and Financial Institutions granted to Equitable America a permitted practice to deviate from SSAP No. 108 by applying special accounting treatment for specific derivatives hedging variable annuity benefits subject to fluctuations as a result of interest rate sensitivities. The permitted practice expands on SSAP No. 108 hedge accounting to include equity risks for the full scope of Variable Annuity (VA) contracts (i.e., not just the rider guarantees but for the VA total contract). The permitted practice allows Equitable America to adopt SSAP 108 retroactively from October 1, 2023 and applies to both directly held VA hedges as well as VA hedges in the Equitable America funds withheld asset that resulted from the Reinsurance Treaty. In the calculation of the amount of excess VA equity and interest rate derivative hedging gains/losses to defer (including Net Investment Income on our Equity Total Return Swaps), the permitted practice allows us to compare our total equity and interest derivatives gains and losses to 100% of our target liability change. Any hedge gain or loss deferrals will follow SSAP No. 108 amortization rules (i.e. 10-year straight line). The impact of applying this revised permitted practice relative to SSAP 108 was an increase of approximately $942 million in statutory special surplus funds as of March 31, 2024. |
MARKET RISK BENEFITS
MARKET RISK BENEFITS | 3 Months Ended |
Mar. 31, 2024 | |
Market Risk Benefit [Abstract] | |
MARKET RISK BENEFITS | MARKET RISK BENEFITS The following table presents the balances and changes to the balances for the market risk benefits for the GMxB benefits on deferred variable annuities: Three Months Ended March 31, 2024 2023 GMxB Core GMxB Legacy GMxB Core GMxB Legacy (Dollars in millions) Balance, beginning of period $ 1,191 $ 6,082 $ (6) $ — Balance BOP before changes in the instrument specific credit risk 934 5,695 (5) — Model changes and effect of changes in cash flow assumptions — — — — Actual market movement effect (150) (333) (5) — Interest accrual 9 58 — — Attributed fees accrued (1) 85 73 1 — Benefit payments (10) (145) — — Actual policyholder behavior different from expected behavior 2 (3) 2 — Changes in future economic assumptions (213) (408) 3 — Issuances (2) (2) 163 — — Balance EOP before changes in the instrument-specific credit risk 655 5,100 (4) — Changes in the instrument-specific credit risk (3) 232 350 (7) — Balance, end of period $ 887 $ 5,450 $ (11) $ — Weighted-average age of policyholders (years) 64.9 73.9 61.3 — Net amount at risk $ 2,731 $ 9,405 $ 9 $ — _______________ (1) Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims. (2) GMxB Legacy issuances are related to the Reinsurance Treaty with Equitable Financial. Equitable Financial completed in Q1 2024 a non-affiliated recapture of reinsurance. The Company assumed in MRBs related to the policies recaptured. (3) Changes are recorded in OCI. The following table reconciles market risk benefits by the amounts in an asset position and amounts in a liability position to the market risk benefit amounts in the consolidated balance sheets: March 31, 2024 December 31, 2023 MRB Asset MRB Liability Net MRB Purchased MRB Total MRB Asset MRB Liability Net MRB Purchased MRB Total (in millions) GMxB Core $ (25) $ 912 $ 887 $ — $ 887 $ (14) $ 1,205 $ 1,191 $ — $ 1,191 GMxB Legacy — 5,450 5,450 — 5,450 — 6,082 6,082 — 6,082 Other (9) 21 12 (7) 5 (10) 46 36 (9) 27 Total $ (34) $ 6,383 $ 6,349 $ (7) $ 6,342 $ (24) $ 7,333 $ 7,309 $ (9) $ 7,300 |
POLICYHOLDER ACCOUNT BALANCES
POLICYHOLDER ACCOUNT BALANCES | 3 Months Ended |
Mar. 31, 2024 | |
Policyholder Account Balance [Abstract] | |
POLICYHOLDER ACCOUNT BALANCES | POLICYHOLDER ACCOUNT BALANCES The following tables reconcile the policyholders account balances to the policyholders’ account balance liability in the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) Policyholders’ account balance reconciliation UL $ 1,180 $ 1,186 IUL 2,460 2,431 EI 1,893 1,964 EG 6,544 6,619 SCS 44,594 40,353 Other (1) (28,415) (27,590) Total $ 28,256 $ 24,963 ______________ (1) Includes $(31.3) billion of assumed fair value of the modco reinsurance with Equitable Financial. The following tables summarize the balances and changes in policyholders’ account balances: Three Months Ended March 31, 2024 UL IUL EI EG SCS (1) (Dollars in millions) Balance, beginning of period $ 1,186 $ 2,431 $ 1,964 $ 6,619 40,353 Issuances — — — — — Premiums received 115 61 3 78 1 Policy charges (121) (49) — (1) (3) Surrenders and withdrawals (4) (31) (78) (249) (777) Benefit payments (5) (5) (6) (4) (62) Net transfers from (to) separate account — — (4) 43 2,483 Interest credited (2) 9 53 14 58 2,599 Balance, end of period $ 1,180 $ 2,460 $ 1,893 $ 6,544 $ 44,594 Weighted-average crediting rate 3.56% 2.46% 2.89% 2.37% —% Net amount at risk (3) $ 15,806 $ 18,940 $ 94 $ 4 $ — Cash surrender value $ 1,034 $ 1,872 $ 1,889 $ 6,496 $ 41,487 ______________ (1) SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate. (2) SCS includes amounts related to the change in embedded derivative. (3) For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder. Three Months Ended March 31, 2023 IUL VUL GMxB Core IE SCS (1) Reinsured (2) (Dollars in millions) Balance, beginning of period $ 1,962 $ 655 $ 27 $ 7 $ 242 $ 819 Issuances — — — — — — Premiums received 58 5 29 — — 6 Policy charges (44) (9) (2) — — (9) Surrenders and withdrawals (7) — — — (1) (23) Benefit payments (3) (2) — — — (2) Net transfers from (to) separate account — 11 (26) 77 1,031 — Three Months Ended March 31, 2023 IUL VUL GMxB Core IE SCS (1) Reinsured (2) (Dollars in millions) Interest credited (3) 30 9 — 1 24 8 Other — — — — — 1 Balance, end of period $ 1,996 $ 669 $ 28 $ 85 $ 1,296 $ 800 Weighted-average crediting rate 2.23% 3.52% 1.00% 1.00% 1.00% 4.12% Net amount at risk (4) $ 18,004 $ 30,589 $ 9 $ — $ — $ 4,011 Cash surrender value $ 1,505 $ 535 $ 32 $ 81 $ 1,208 $ 799 ___________ (1) SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account. (2) Reinsured primarily reflects Protective Life reinsured business. (3) SCS includes amounts related to the change in embedded derivative. (4) For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder. The following table presents the account values by range of guaranteed minimum crediting rates and the related range of the difference in basis points, between rates being credited policyholders and the respective guaranteed minimums: March 31, 2024 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total (in millions) Universal Life 0.00% - 1.50% $ — $ — $ — $ — $ — 1.51% - 2.50% 31 23 300 341 695 Greater than 2.50% — 486 — — 486 Total $ 31 $ 509 $ 300 $ 341 $ 1,181 Indexed Universal Life 0.00% - 1.50% — — — — — 1.51% - 2.50% 1,116 152 1,076 — 2,344 Greater than 2.50% — — — — — Total $ 1,116 $ 152 $ 1,076 $ — $ 2,344 EQUI-VEST Individual 0.00% - 1.50% 45 201 — — 246 1.51% - 2.50% 39 — — — 39 Greater than 2.50% 1,608 — — — 1,608 Total 1,692 201 — — 1,893 SCS Products with either a fixed rate or no guaranteed minimum N/A N/A N/A N/A N/A March 31, 2024 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total (in millions) EQUI-VEST Group 0.00% - 1.50% $ 464 $ 2,035 $ 23 $ 253 $ 2,775 1.51% - 2.50% $ 271 $ — $ — $ — $ 271 Greater than 2.50% $ 2,556 $ — $ — $ — $ 2,556 Total $ 3,291 $ 2,035 $ 23 $ 253 $ 5,602 December 31, 2023 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total (in millions) Universal Life 0.00% - 1.50% $ — $ — $ — $ — $ — 1.51% - 2.50% 47 9 339 298 693 Greater than 2.50% — 492 — — 492 Total $ 47 $ 501 $ 339 $ 298 $ 1,185 Indexed Universal Life 0.00% - 1.50% $ — $ — $ — $ — $ — 1.51% - 2.50% 1,112 218 1,001 — 2,331 Greater than 2.50% — — — — — Total $ 1,112 $ 218 $ 1,001 $ — $ 2,331 EQUI-VEST Individual 0.00% - 1.50% $ 47 $ 205 $ — $ — $ 252 1.51% - 2.50% 42 — — — 42 Greater than 2.50% 1,670 — — — 1,670 Total $ 1,759 $ 205 $ — $ — $ 1,964 SCS Products with either a fixed rate or no guaranteed minimum N/A N/A N/A N/A N/A EQUI-VEST Group 0.00% - 1.50% $ 488 $ 2,020 $ 11 $ 277 $ 2,796 1.51% - 1.51% 269 — — — 269 Greater than 2.50% 2,642 — — — 2,642 Total $ 3,399 $ 2,020 $ 11 $ 277 $ 5,707 Separate Account - Summary The following tables reconcile the Separate Account liabilities to the Separate Account liability balance in the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) Separate Account Reconciliation VUL $ 2,317 $ 2,128 GMxB Core 2,710 2,166 IE 319 226 Reinsured 1,085 1,022 Other 399 212 Total $ 6,830 $ 5,754 The following tables present the balances of and changes in Separate Account liabilities: Three Months Ended March 31, 2024 VUL GMxB Core IE Reinsured (2) (in millions) Balance, beginning of period $ 2,128 $ 2,166 $ 226 $ 1,022 Premiums and deposits 105 388 245 5 Policy charges (36) (4) — (7) Surrenders and withdrawals (13) (17) (4) (22) Benefit payments (5) (2) — (4) Investment performance (1) 151 129 14 — Net transfers from (to) general account (13) 50 (162) 91 Other charges — — — — Balance, end of period $ 2,317 $ 2,710 $ 319 $ 1,085 Cash surrender value $ 1,982 $ 2,522 $ 305 $ — __ _____________ (1) Investment performance is reflected net of mortality and expense fees. (2) Reinsured primarily reflects Protective Life reinsured ceded business. Three Months Ended March 31, 2023 VUL GMxB Core IE Reinsured (1) (in millions) Balance, beginning of period $ 1,653 $ 756 $ 26 $ 913 Premiums and deposits 96 139 138 5 Policy charges (32) (2) — (8) Surrenders and withdrawals (10) (5) — (14) Benefit payments (2) (2) — (4) Investment performance (2) 98 38 1 74 Net transfers from (to) general account (11) 26 (77) — Other charges — — — — Balance, end of period $ 1,792 $ 950 $ 88 $ 966 Cash surrender value $ 1,468 $ 874 $ 84 $ — __ ____________ (1) Reinsured primarily reflects Protective Life reinsured ceded business. (2) Investment performance is reflected net of mortality and expense fees. The following tables present the aggregate fair value of Separate Account assets by major asset category: March 31, 2024 Life Insurance & Employee Benefits Products Individual Variable Annuity Products Employer - Sponsored Products Other Total (in millions) Asset Type Mutual Funds $ 2,869 $ 3,911 $ 38 $ 12 $ 6,830 Total $ 2,869 $ 3,911 $ 38 $ 12 $ 6,830 December 31, 2023 Life Insurance & Employee Benefits Products Individual Variable Annuity Products Other Total (in millions) Asset Type Mutual Funds $ 2,642 $ 3,100 $ 12 $ 5,754 Total $ 2,642 $ 3,100 $ 12 $ 5,754 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the three months ended March 31, 2024 and 2023 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. During the fourth quarter of 2022, the Company established a valuation allowance against its deferred tax asset related to unrealized capital losses in the available for sale securities portfolio. During the year ended December 31, 2023, management took actions to increase its available liquidity so that the Company has the ability and intent to hold the majority of securities in its available for sale portfolio to recovery. For liquidity and other purposes, the Company maintains a smaller pool of securities that it does not intend to hold to recovery. The Company maintains a valuation allowance against the deferred tax asset on available for sale securities that will not be held to recovery. For the three months ended March 31, 2024, the Company recorded an increase to the valuation allowance of $5 million due to changes in the value of unrealized losses in the available for sale portfolio that will not be held to recovery. This adjustment was recorded in other comprehensive income. A valuation allowance of $10 million remains against the portion of the deferred tax asset that is still not more-likely-than-not to be realized. The Company uses the aggregate portfolio approach related to the stranded or disproportionate income tax effects in accumulated other comprehensive income related to available for sale securities. Under this approach, the disproportionate tax effect remains intact as long as the investment portfolio remains. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company did not enter into any new significant transactions with related parties during the three months ended March 31, 2024. On May 17, 2023, the Company entered into a reinsurance agreement with Equitable Financial, effective April 1, 2023. See Note 16 of the Notes to these Consolidated Financial Statements for further details. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
EQUITY | EQUITY AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances were as follows: March 31, 2024 December 31, 2023 (in millions) Unrealized gains (losses) on investments $ (140) $ (51) Market risk benefits - instrument-specific credit risk component (587) (649) Liability or future policy benefits - current discount rate component 28 6 Accumulated other comprehensive income (loss) $ (699) $ (694) The components of OCI, net of taxes were as follows: Three Months Ended March 31, 2024 2023 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (72) $ 72 (Gains) losses reclassified into net income (loss) during the period (1) — 4 Net unrealized gains (losses) on investments (72) 76 Adjustments for policyholders’ liabilities, insurance liability loss recognition and other 1 (1) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(13) and $16) (71) 75 Change in LFPB discount rate and MRB credit risk Change in market risk benefits - instrument-specific credit risk (net of deferred income tax expense (benefit) of $13 and $1) 48 4 Changes in liability for future policy benefits - current discount rate (net of deferred income tax expense (benefit) of $5 and $0) 18 — Other comprehensive income (loss) $ (5) $ 79 ______________ (1) See “Reclassification adjustment” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $0 million and $1 million and for the three months ended March 31, 2024 and 2023, 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 consolidated statements of income (loss). Amounts presented in the table above are net of tax. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 , 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. FHLB As a member of the FHLB, the Company has access to collateralized borrowings. Collateralized borrowings require the Company to pledge qualified mortgage-backed assets and/or government securities as collateral, and are reported in policyholders’ account balances in the balance sheets. The Company had no collateralized borrowings outstanding at March 31, 2024 or December 31, 2023. Funding Agreement-Backed Commercial Paper Program In May 2023, the Company established a funding agreement-backed commercial paper program (the “FABCP Program”), pursuant to which a special purpose limited liability company (the “SPLLC”) may issue commercial paper and deposit the proceeds with the Company pursuant to a funding agreement issued by the Company to the SPLLC. The current maximum aggregate principal amount permitted to be outstanding at any one time under the FABCP Program is $1.0 billion. The Company had $0 outstanding as of March 31, 2024 and December 31, 2023. Guarantees and Other Commitments The Company provides certain guarantees or commitments to affiliates and others. As of March 31, 2024, these arrangements include commitments by the Company to provide equity financing of $207 million to certain limited partnerships and real estate joint ventures under certain conditions. Management believes the Company will not incur material losses as a result of these commitments. The Company had $73 million of commitments under existing mortgage loans or mortgage loan commitment agreements at March 31, 2024. |
INSURANCE STATUTORY FINANCIAL I
INSURANCE STATUTORY FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
Insurance Statutory Financial Information [Abstract] | |
INSURANCE STATUTORY FINANCIAL INFORMATION | LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS The following tables reconcile the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) Reconciliation Payout - Legacy $ 447 $ 340 UL (1) 347 344 Other (2) 371 365 Subtotal 1,165 1,049 Other policy funds (3) 636 604 Grand total $ 1,801 $ 1,653 ______________ (1) Represents the SOP NLG Rider on UL contracts assumed from Equitable Financial. (2) Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits. (3) Includes $439 million of URL of which $436 million is covered in Note 5 of the Notes to these Consolidated Financial Statements. The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts. The payout annuities result from annuitization of current contracts. Inflows are the liquidation of the account values not premiums: Three Months Ended March 31, Payout-Legacy 2024 2023 (Dollars in millions) Present Value of Expected Future Policy Benefits Balance, beginning of period $ 340 $ — Beginning balance of original discount rate 333 — Effect of changes in cash flow assumptions — — Effect of actual variances from expected experience — — Adjusted beginning of period balance 333 — Issuances 119 — Interest accrual 4 — Benefits payments (8) — Ending balance at original discount rate 448 — Effect of changes in discount rate assumptions (1) — Balance, end of period $ 447 $ — Net liability for future policy benefits $ 447 $ — Less: Reinsurance recoverable — — Net liability for future policy benefits, after reinsurance recoverable $ 447 $ — Weighted-average duration of liability for future policyholder benefits (years) 7.7 — The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts: March 31, 2024 December 31, 2023 (in millions) Payout-Legacy Expected future benefit payments and expenses (undiscounted) $ 686 $ 508 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted) 447 340 Expected future gross premiums (discounted) — — The following table provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities : Three Months Ended March 31, 2024 2023 2024 2023 Gross Premium Interest Accretion (in millions) Revenue and Interest Accretion Payout - Legacy (1) $ 27 $ — $ 6 $ — Total $ 27 $ — $ 6 $ — ______________ (1) Gross premium reflected is the liquidation of Account Value at time of annuitization. The following table provides the weighted average interest rates for the liability for future policy benefits: March 31, 2024 December 31, 2023 Weighted Average Interest Rate Payout-Legacy Interest accretion rate 5.1 % 5.3 % Current discount rate 5.2 % 5.0 % The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities: Three Months Ended March 31, 2024 2023 UL (1) Universal Life (2) (Dollars in millions) Balance, beginning of period $ 344 $ 58 Beginning balance before AOCI adjustments 344 66 Effect of changes in interest rate and cash flow assumptions and model changes — — Effect of actual variances from expected experience (1) (1) Adjusted beginning of period balance 343 65 Issuances — — Interest accrual 4 1 Net assessments collected 4 2 Benefit payments (4) — Ending balance before shadow reserve adjustments 347 68 Effect of shadow reserve adjustment — (6) Balance, end of period $ 347 $ 62 Net liability for additional liability $ 347 $ 62 Effect of reserve adjustment recorded in AOCI — — Net liability for additional liability, after reinsurance recoverable $ 347 $ 62 Weighted-average duration of additional liability - death benefit (years) 17.5 32.3 ______________ (1) The 2024 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial. (2) The 2023 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 16 of the Notes to these Consolidated Financial Statements, these are no longer material and are not disclosed separately. The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Assessments Interest Accretion Assessments Interest Accretion (in millions) Revenue and Interest Accretion UL (1) $ 124 $ 4 $ 5 $ — Total $ 124 $ 4 $ 5 $ — _____________ (1) The 2023 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial. Three Months Ended March 31, 2024 2023 Universal Life Weighted Average Interest Rate UL 4.5 % 5.5 % Interest accretion rate 4.5 % 5.5 % Prescribed and Permitted Accounting Practices As of March 31, 2024, the following two prescribed and permitted practices resulted in surplus that is different from the statutory surplus that would have been reported had NAIC statutory accounting practices been applied. During 2022, Equitable Life Financial Insurance Company of America received approval from the Arizona Department of Insurance and Financial Institutions pursuant to A.R.S. 20-515 for Separate Account No. 68A (“SA 68A”) for our Structured Capital Strategies product, Separate Account No. 69A (“SA 69A”) for our EQUI-VEST product Structured Investment Option and Separate Account No. 71A (“SA 71A”) for our Investment Edge Structured Investment Option, to permit us to use book value as the accounting basis of these three non-insulated Separate Accounts instead of fair value in accordance with the NAIC Accounting and Practices and Procedures Manual to align with how we manage and measure our overall general account asset portfolio. The impact of the application is an decrease of approximately $72 million in statutory surplus as of March 31, 2024. The Arizona Department of Insurance and Financial Institutions granted to Equitable America a permitted practice to deviate from SSAP No. 108 by applying special accounting treatment for specific derivatives hedging variable annuity benefits subject to fluctuations as a result of interest rate sensitivities. The permitted practice expands on SSAP No. 108 hedge accounting to include equity risks for the full scope of Variable Annuity (VA) contracts (i.e., not just the rider guarantees but for the VA total contract). The permitted practice allows Equitable America to adopt SSAP 108 retroactively from October 1, 2023 and applies to both directly held VA hedges as well as VA hedges in the Equitable America funds withheld asset that resulted from the Reinsurance Treaty. In the calculation of the amount of excess VA equity and interest rate derivative hedging gains/losses to defer (including Net Investment Income on our Equity Total Return Swaps), the permitted practice allows us to compare our total equity and interest derivatives gains and losses to 100% of our target liability change. Any hedge gain or loss deferrals will follow SSAP No. 108 amortization rules (i.e. 10-year straight line). The impact of applying this revised permitted practice relative to SSAP 108 was an increase of approximately $942 million in statutory special surplus funds as of March 31, 2024. |
UNPAID CLAIM AND CLAIM EXPENSES
UNPAID CLAIM AND CLAIM EXPENSES | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
UNPAID CLAIM AND CLAIM EXPENSES | UNPAID CLAIM AND CLAIM EXPENSES The following summarizes the change in liability for unpaid claims and claim expenses: Liability for Unpaid Claims and Claim Expenses Three Months Ended March 31, 2024 2023 (in millions) Gross Balance, beginning of period $ 141 $ 110 Less Reinsurance 48 36 Net Balance, beginning of period 93 74 Incurred Claims (net) Related to: Current Period 83 67 Prior Period (13) (16) Total Incurred 70 51 Paid Claims (net) Related to: Current Period 25 23 Prior Period 35 26 Total Paid 60 49 Net Balance, end of period 103 76 Add Reinsurance 47 38 Gross Balance, end of period $ 150 $ 114 |
REINSURANCE
REINSURANCE | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE The Company assumes and cedes reinsurance with other insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability. The following table summarizes the effect of reinsurance: Three Months Ended March 31, 2024 2023 (in millions) Direct charges and fee income $ 106 $ 85 Reinsurance assumed - Equitable Financial 327 — Reinsurance ceded (29) (24) Policy charges and fee income $ 404 $ 61 Direct premiums $ 101 $ 85 Reinsurance assumed - Equitable Financial 45 — Reinsurance ceded (14) (16) Premiums $ 132 $ 69 Direct policyholders’ benefits $ 136 $ 100 Reinsurance assumed - Equitable Financial 186 — Reinsurance ceded (31) (21) Policyholders’ benefits $ 291 $ 79 Direct interest credited to policyholders’ account balances $ 116 $ 31 Reinsurance assumed - Equitable Financial 154 — Reinsurance ceded (8) (8) Interest credited to policyholders’ account balances $ 262 $ 23 Ceded Reinsurance In 2013, the Company entered into the Reinsurance Agreement with Protective to reinsure an in-force book of life insurance and annuity policies written prior to 2004. In addition to the Reinsurance Agreement, the Company entered into a long-term administrative services agreement with Protective whereby Protective will provide all administrative and other services with respect to the reinsured business. For business not reinsured with Protective, the Company generally reinsures its variable life and interest-sensitive life insurance policies on an excess of retention basis. The Company generally retains up to a maximum of $4 million of mortality risk on single-life policies and up to a maximum of $6 million of mortality risk on second-to die policies. For amounts applied for in excess of those limits, reinsurance is ceded to Equitable Financial up to a combined maximum of $20 million of risk on single-life policies and up to a maximum of $25 million on second-to die policies. For amounts issued in excess of these limits, reinsurance is typically obtained from unaffiliated third parties. These reinsurance arrangements obligate the reinsurers to pay a portion of any death claim in excess of the amount the Company retains in exchange for an agreed-upon premium. Equitable America had a quota share arrangement with AXA Global Re (formerly AXA Cessions), assuming a percentage of excess Life/Disability/A&H business. The contract is now closed to new business. Beginning in 2015, group short and long-term disability is being reinsured with Group Reinsurance Plus (GRP) via a quota share arrangement. Assumed Reinsurance On May 17, 2023, Equitable Financial entered into a reinsurance agreement with Equitable America, effective April 1, 2023. Pursuant to the Reinsurance Treaty, virtually all of Equitable Financial’s net retained General Account liabilities, including all of its net retained liabilities relating to the living benefit and death riders related to (i) its variable annuity contracts issued outside the State of New York prior to October 1, 2022 (and with respect to its EQUI-VEST variable annuity contracts, issued outside the State of New York prior to February 1, 2023) and (ii) certain universal life insurance policies issued outside the State of New York prior to October 1, 2022, were reinsured to Equitable America on a coinsurance funds withheld basis. In addition, all of the Separate Accounts liabilities relating to such variable annuity contracts were reinsured to Equitable America on a modified coinsurance basis. Equitable America’s obligations under the Reinsurance Treaty are secured through Equitable Financial’s retention of certain assets supporting the reinsured liabilities. There is a diverse pool of assets supporting the funds withheld and NI modco arrangement with Equitable Financial. The following table summarizes the composition of the pool of assets: March 31, 2024 Carrying Value Fair Value (in millions) Fixed maturities $ 23,765 $ 23,765 Mortgage loans on real estate 8,291 7,270 Policy loans 253 254 Other equity investments 231 231 Other invested assets (1) 9,811 9,811 Total assets supporting funds withheld $ 42,351 $ 41,331 ______________ (1) Other invested assets includes derivatives and cash and cash equivalents. |
REVISION OF PREVIOUSLY ISSUED F
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The Company identified certain errors in its previously issued September 30 and June 30, 2023 interim financial statements primarily related to the initial and ongoing recording for the Reinsurance Treaty. Management evaluated these errors in accordance with SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in Accounting Standards Codification ("ASC" 250, Accounting Changes and Error Corrections) and concluded they were not material to any previously reported quarterly financial statements. However, in order to improve the consistency and comparability of the financial statements, management will revise the financial statements and related disclosures to correct these errors in future interim filings. As part of correcting the errors associated with the Reinsurance Treaty, other immaterial errors, including coding errors impacting the inforce used to calculate actuarial reserves, which were previously recorded as out of period misstatements in previously issued 2023 interim financial statements were also corrected and properly reflected in the financial statements as of and for the period ended December 31, 2022. Impacted financial statements include the previously issued September 30, June 30 and March 31, 2023 interim financial statements and December 31, 2022 annual financial statements. The following tables present line items for the previously issued September 30, June 30 and March 31, 2023 interim financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact of the errors, and the amounts as revised. The following interim financial statements are unaudited. March 31, 2023 As Previously Adjustments As Revised (in millions) (unaudited) Balance Sheets Other assets 131 1 132 Assets for Market Risk Benefits 17 (2) 15 Total Assets 10,164 (1) 10,163 Liability for Market Risk Benefits 14 2 16 Total Liabilities 9,789 2 9,791 Accumulated deficit (157) (3) (160) Total Equity 375 (3) 372 Total Liabilities and Equity 10,164 (1) 10,163 Three Months Ended March 31, 2023 As Previously Adjustments As Revised (unaudited) (in millions) Statements of Income (Loss) Benefits and other deductions Change in Market Risk Benefits and Purchased Market Risk Benefits — 1 1 Total benefits and deductions 180 1 181 Income (loss) from continuing operations, before income taxes (9) (1) (10) Net income (loss) from continuing operations 63 (1) 62 Net income (loss) 63 (1) 62 Three Months Ended March 31, 2023 As Previously Adjustments As Revised (in millions) (unaudited) Statements of Comprehensive Income (Loss) Net income (loss) $ 63 $ (1) $ 62 Changes in market risk benefits - instrument-specific credit risk 5 (1) 4 Other comprehensive income 80 (1) 79 Comprehensive income (loss) 143 (2) 141 Three Months Ended March 31, 2023 As Previously Adjustments As Revised (unaudited) (in millions) Statements of Equity Accumulated Deficit, beginning of year (220) (2) (222) Net income (loss) 63 (1) 62 Accumulated Deficit, end of year (157) (3) (160) Accumulated other comprehensive income (loss), beginning of year (382) 1 (381) Other comprehensive income (loss) 80 (1) 79 Accumulated other comprehensive income (loss), end of year (302) — (302) Total equity, end of year 375 (3) 372 Three Months Ended March 31, 2023 As Reported Adjustments As Revised (unaudited) (in millions) Statement of Cash Flows Cash flow from operating activities: Net income (loss) $ 63 $ (1) $ 62 Change in Market Risk Benefits — $ 1 1 Net cash provided by (used in) operating activities (20) $ — (20) June 30, 2023 As Previously Adjustments As Revised (in millions) (unaudited) Balance Sheets Funds withheld receivable 10,615 39 10,654 Reinsurance deposit assets 12,782 (26) 12,756 Current and deferred income taxes 151 (2) 149 Assets for Market Risk Benefits 26 (2) 24 Total Assets 37,721 9 37,730 Policyholders’ account balances 21,014 (125) 20,889 Liability for Market Risk Benefits 7,363 4 7,367 Future policy benefits and other policyholders’ liabilities 1,209 89 1,298 Other liabilities 2,124 7 2,131 Total Liabilities 36,324 (25) 36,299 Equity Accumulated deficit (143) 34 (109) Total Equity 1,397 34 1,431 Total Liabilities and Equity 37,721 9 37,730 Three Months Ended Six Months Ended June 30, 2023 As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Income (Loss) Policy charges and fee income 411 (1) 410 472 (1) 471 Premiums 112 20 132 181 20 201 Net derivative gains (losses) (700) 1 (699) (694) 1 (693) Investment management and service fees 105 17 122 110 17 127 Total revenues 22 37 59 193 37 230 Benefits and other deductions Policyholders' benefits 335 (57) 278 414 (57) 357 Remeasurement of Liability for Future Policy Benefits 1 (2) (1) — (2) (2) Change in Market Risk Benefits and Purchased Market Risk Benefits (862) 23 (839) (862) 24 (838) Commissions 90 (1) 89 121 (1) 120 Other operating costs and expenses 222 34 256 245 34 279 Total benefits and deductions 2 (3) (1) 182 (2) 180 Income (loss) from continuing operations, before income taxes 20 40 60 11 39 50 Income tax (expense) benefit from continuing operations (6) (3) (9) 66 (3) 63 Net income (loss) from continuing operations 14 37 51 77 36 113 Net income (loss) 14 37 51 77 36 113 Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ 14 $ 37 $ 51 $ 77 $ 36 $ 113 Comprehensive income (loss) (29) 37 8 114 35 149 Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Equity Accumulated Deficit, beginning of year (157) (3) (160) (220) (2) (222) Net income (loss) 14 37 51 77 36 113 Accumulated Deficit, end of year (143) 34 (109) (143) 34 (109) Accumulated other comprehensive income (loss), beginning of year (302) — (302) (382) 1 (381) Other comprehensive income (loss) (43) — (43) 37 (1) 36 Accumulated other comprehensive income (loss), end of year (345) — (345) (345) — (345) — — — — — — Total equity, end of year 1,397 34 1,431 1,397 34 1,431 Six Months Ended June 30, 2023 As Reported Adjustments As Revised (unaudited) (in millions) Statement of Cash Flows Cash flow from operating activities: Net income (loss) $ 77 $ 36 $ 113 Policy charges and fee income (472) 1 (471) Net derivative (gains) losses 694 (1) 693 Remeasurement of liability for future policy benefits — (2) (2) Change in Market Risk Benefits (862) 24 (838) Future policy benefits 133 89 222 Funds Withheld 13 (174) (161) Current and deferred income taxes (66) 3 (63) Other, net 431 24 455 Net cash provided by (used in) operating activities 888 — 888 September 30, 2023 As Previously Adjustments As Revised (unaudited) (in millions) Balance Sheets Funds withheld receivable 10,550 127 10,677 Reinsurance deposit assets 12,682 (19) 12,663 Current and deferred income taxes 131 (4) 127 Assets for Market Risk Benefits 24 (2) 22 Total Assets 39,861 102 39,963 Liability for Market Risk Benefits 6,731 (19) 6,712 Future policy benefits and other policyholders’ liabilities 1,352 98 1,450 Other liabilities 2,137 7 2,144 Total Liabilities 38,371 86 38,457 Retained earnings (accumulated deficit) 373 (2) 371 Accumulated other comprehensive income (loss) (768) 18 (750) Total Equity 1,490 16 1,506 Total Liabilities and Equity 39,861 102 39,963 Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Income (Loss) Policy charges and fee income 410 1 411 882 — 882 Premiums 152 (20) 132 333 — 333 Net derivative gains (losses) (340) 4 (336) (1,034) 5 (1,029) Investment management and service fees 143 (17) 126 253 — 253 Total revenues 502 (32) 470 695 5 700 Benefits and other deductions Policyholders' benefits 244 17 261 658 (40) 618 Remeasurement of Liability for Future Policy Benefits 10 13 23 10 11 21 Change in Market Risk Benefits and Purchased Market Risk Benefits (980) (12) (992) (1,842) 12 (1,830) Commissions 100 (1) 99 221 (2) 219 Other operating costs and expenses 210 (11) 199 455 23 478 Total benefits and deductions (148) 6 (142) 34 4 38 Income (loss) from continuing operations, before income taxes 650 (38) 612 661 1 662 Income tax (expense) benefit from continuing operations (134) 3 (131) (68) — (68) Net income (loss) from continuing operations 516 (35) 481 593 1 594 Net income (loss) 516 (35) 481 593 1 594 Three Months Ended Nine Months Ended As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ 516 $ (35) $ 481 $ 593 $ 1 $ 594 Changes in market risk benefits - instrument-specific credit risk (280) 18 (262) (268) 18 (250) Other comprehensive income (423) 19 (404) (386) 18 (368) Comprehensive income (loss) 93 (16) 77 207 19 226 Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Equity Accumulated Deficit, beginning of year (143) 34 (109) (220) (2) (222) Net income (loss) 516 (35) 481 593 1 594 Accumulated Deficit, end of year 373 (2) 371 373 (2) 371 Other comprehensive income (loss) (423) 19 (404) (386) 18 (368) Accumulated other comprehensive income (loss), end of year (768) 18 (750) (768) 18 (750) Total equity, end of year 1,490 16 1,506 1,490 16 1,506 Nine Months Ended September 30, 2023 As Reported Adjustments As Revised (unaudited) (in millions) Statement of Cash Flows Cash flow from operating activities Net income (loss) $ 593 $ 1 $ 594 Net derivative (gains) losses 1,034 (5) 1,029 Remeasurement of liability for future policy benefits\ 10 11 21 Change in Market Risk Benefits (1,842) 12 (1,830) Future policy benefits 264 101 365 Funds Withheld\ (87) (132) (219) Other, net 972 12 984 Net cash provided by (used in) operating activities 452 — 452 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income (loss) | $ (83) | $ 481 | $ 51 | $ 62 | $ 113 | $ 594 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The unaudited interim consolidated financial statements (the “consolidated 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 consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2023. The terms “first quarter 2024” and “first quarter 2023” refer to the three months ended March 31, 2024 and 2023, respectively. The terms “first three months of 2024” and “first three months of 2023” refer to the three months ended March 31, 2024 and 2023, respectively. |
Future Adoption of New Accounting Pronouncements | Future Adoption of New Accounting Pronouncements Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2023-07: Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU provides improvements to reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple measures of segment profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. A calendar year public entity will adopt the ASU for its 2024 Form 10-K. The ASU should be adopted retrospectively to all periods presented in the financial statements unless it is impracticable to do so. The Company is currently assessing the additional required disclosures under the ASU including providing new segment disclosure requirements for entities with a single reportable segment. Management is evaluating the impact the adoption of this guidance will have on the Company’s consolidated financial statements. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2023-09: Income Taxes (Topic 740): Improvements to Income Tax Disclosures The ASU enhanced existing income tax disclosures primarily related to the rate reconciliation and income taxes paid information. With regard to the improvements to disclosures of rate reconciliation, a public business entity is required on an annual basis to (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. Similarly, a public entity is required to provide the amount of income taxes paid (net of refunds received) disaggregated by (1) federal, state, and foreign taxes and by(2) individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The ASU also includes certain other amendments to improve the effectiveness of income tax disclosures, for example, an entity is required to provide (1) pretax income (or loss) from continuing operations disaggregated between domestic and foreign, and (2) income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. The ASU will be effective for annual periods beginning after December 15, 2024. Entities are required to apply the ASU on a prospective basis. The adoption of ASU 2023-09 is not expected to materially impact the Company’s financial position, results of operation, or cash flows. SEC Release Nos. 33-11275; 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors The SEC adopted rules requiring registrants to disclose climate-related information in registration statements and annual reports. The new rules include disclosure of material climate-related risks, including descriptions of board oversight and risk management activities. the material impacts of these risks on a registrant’s strategy, business model and outlook and any material climate-related targets or goals. In addition, registrants will need to quantify certain effects of severe weather events and other natural conditions in a note to their audited financial statements. In April 2024, citing litigation challenging the rules that commenced immediately after they were issued, the SEC issued an order staying applicability of the rules while judicial review proceeds. Financial statement and all other disclosures are required at the beginning of the fiscal year 2027 with disclosures about material expenditure and impact required at the beginning of the fiscal year 2028. Disclosures are provided prospectively upon adoption. The Company is currently assessing the additional required disclosures under the SEC Release. Management is evaluating the impact of the adoption of this guidance will have on the Company’s consolidated financial statements. |
Accounting and Consolidation of VIEs | Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company, the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity is determined to be a VIE, the Company then determines whether it is the primary beneficiary of the VIE based on its beneficial interests. If the Company is deemed to be the primary beneficiary of the VIE, the Company consolidates the entity. Quarterly, management of the Company reviews its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client AUM to determine the entities the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts, and limited partnerships. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. Consolidated VIEs As of March 31, 2024 and December 31, 2023, the Company consolidated limited partnerships and LLCs for which it was identified as the primary beneficiary under the VIEs model. Included in other invested assets and mortgage loans on real estate in the Company’s consolidated balance sheets at March 31, 2024 and December 31, 2023 are total assets of $149 million and $0 million, respectively related to these VIEs. Non-Consolidated VIEs |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements The Company identified certain errors in its previously issued financial statements primarily related to the initial and ongoing recording for the Reinsurance Treaty and coding errors impacting the inforce used to calculate actuarial reserves. The impact of these errors to prior periods’ financial statements was not considered to be material. In order to improve the consistency and comparability of the financial statements, management revised the financial statements to include the revisions discussed herein. See Note 16 of 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 are also 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) | 3 Months Ended |
Mar. 31, 2024 | |
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 2023-07: Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU provides improvements to reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple measures of segment profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. A calendar year public entity will adopt the ASU for its 2024 Form 10-K. The ASU should be adopted retrospectively to all periods presented in the financial statements unless it is impracticable to do so. The Company is currently assessing the additional required disclosures under the ASU including providing new segment disclosure requirements for entities with a single reportable segment. Management is evaluating the impact the adoption of this guidance will have on the Company’s consolidated financial statements. Description Effective Date and Method of Adoption Effect on the Financial Statement or Other Significant Matters ASU 2023-09: Income Taxes (Topic 740): Improvements to Income Tax Disclosures The ASU enhanced existing income tax disclosures primarily related to the rate reconciliation and income taxes paid information. With regard to the improvements to disclosures of rate reconciliation, a public business entity is required on an annual basis to (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. Similarly, a public entity is required to provide the amount of income taxes paid (net of refunds received) disaggregated by (1) federal, state, and foreign taxes and by(2) individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The ASU also includes certain other amendments to improve the effectiveness of income tax disclosures, for example, an entity is required to provide (1) pretax income (or loss) from continuing operations disaggregated between domestic and foreign, and (2) income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. The ASU will be effective for annual periods beginning after December 15, 2024. Entities are required to apply the ASU on a prospective basis. The adoption of ASU 2023-09 is not expected to materially impact the Company’s financial position, results of operation, or cash flows. SEC Release Nos. 33-11275; 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors The SEC adopted rules requiring registrants to disclose climate-related information in registration statements and annual reports. The new rules include disclosure of material climate-related risks, including descriptions of board oversight and risk management activities. the material impacts of these risks on a registrant’s strategy, business model and outlook and any material climate-related targets or goals. In addition, registrants will need to quantify certain effects of severe weather events and other natural conditions in a note to their audited financial statements. In April 2024, citing litigation challenging the rules that commenced immediately after they were issued, the SEC issued an order staying applicability of the rules while judicial review proceeds. Financial statement and all other disclosures are required at the beginning of the fiscal year 2027 with disclosures about material expenditure and impact required at the beginning of the fiscal year 2028. Disclosures are provided prospectively upon adoption. The Company is currently assessing the additional required disclosures under the SEC Release. Management is evaluating the impact of the adoption of this guidance will have on the Company’s consolidated financial statements. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Fixed Maturities by Classification | The following tables provide information relating to the Company’s fixed maturities classified as AFS: AFS Fixed Maturities by Classification Amortized Allowance for Credit Losses Gross Gross Fair Value (in millions) March 31, 2024: Fixed Maturities: Corporate (1) $ 6,281 $ — $ 60 $ 317 $ 6,024 U.S. Treasury, government and agency 15 — — 1 14 States and political subdivisions 51 — — 8 43 Foreign governments 49 — 1 1 49 Residential mortgage-backed 1,112 — 8 8 1,112 Asset-backed (2) 3,778 — 34 3 3,809 Commercial mortgage-backed 265 — 2 12 255 Total at March 31, 2024 $ 11,551 $ — $ 105 $ 350 $ 11,306 December 31, 2023: Fixed Maturities: Corporate (1) $ 5,842 $ — $ 96 $ 276 $ 5,662 U.S. Treasury, government and agency 15 — — — 15 States and political subdivisions 50 — — 7 43 Foreign governments 31 — 1 1 31 Residential mortgage-backed 961 — 15 4 972 Asset-backed (2) 2,956 — 32 2 2,986 Commercial mortgage-backed 195 — 1 14 182 Total at December 31, 2023 $ 10,050 $ — $ 145 $ 304 $ 9,891 ______________ (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. |
Schedule of Contractual Maturities of Available-for-Sale Fixed Maturities | The contractual maturities of AFS fixed maturities as of March 31, 2024 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) March 31, 2024: Contractual maturities: Due in one year or less $ 123 $ 123 Due in years two through five 1,599 1,587 Due in years six through ten 3,260 3,199 Due after ten years 1,414 1,221 Subtotal 6,396 6,130 Residential mortgage-backed 1,112 1,112 Asset-backed 3,778 3,809 Commercial mortgage-backed 265 255 Total at March 31, 2024 $ 11,551 $ 11,306 |
Schedule of Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities | The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities: Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities Three Months Ended March 31, 2024 2023 (in millions) Proceeds from sales $ — $ 50 Gross gains on sales $ — $ — Gross losses on sales $ — $ (5) |
Schedule of 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 March 31, 2024 2023 (in millions) Balance, beginning of period $ — $ — Previously recognized impairments on securities that matured, paid, prepaid or sold — — Balance, end of period $ — $ — |
Schedule of Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities | The tables below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI: Net Unrealized Gains (Losses) on AFS Fixed Maturities Three Months Ended March 31, 2024 Net Unrealized Gains (Losses) on Investments Policyholders’ Liabilities Deferred Income Tax Asset (Liability) (1) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (1) (in millions) Balance, beginning of period $ (159) $ 8 $ (33) $ (184) Net investment gains (losses) arising during the period (85) — — (85) Reclassification adjustment: Included in net income (loss) — — — — Other — — (4) (4) Impact of net unrealized investment gains (losses) — 1 18 19 Net unrealized investment gains (losses) excluding credit losses (244) 9 (19) (254) Balance, end of period $ (244) $ 9 $ (19) $ (254) Three Months Ended March 31, 2023 Balance, beginning of period $ (388) $ 8 $ (1) $ (381) Net investment gains (losses) arising during the period 71 — — 71 Reclassification adjustment: Included in net income (loss) 5 — — 5 Other — — 16 16 Impact of net unrealized investment gains (losses) — (2) (16) (18) Net unrealized investment gains (losses) excluding credit losses (312) 6 (1) (307) Balance, end of period $ (312) $ 6 $ (1) $ (307) _____________ (1) Certain balances were revised from previously filed financial statements. |
Schedule of Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities | The following tables disclose the fair values and gross unrealized losses of the 1,088 issues as of March 31, 2024 and the 891 issues as of December 31, 2023 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) March 31, 2024: Fixed Maturities: Corporate $ 1,237 $ 16 $ 1,974 $ 301 $ 3,211 $ 317 U.S. Treasury, government and agency — — 8 1 8 1 States and political subdivisions — — 32 8 32 8 Foreign governments 25 1 4 — 29 1 Residential mortgage-backed 396 4 19 4 415 8 Asset-backed 733 2 21 1 754 3 Commercial mortgage-backed 1 — 60 12 61 12 Total at March 31, 2024 $ 2,392 $ 23 $ 2,118 $ 327 $ 4,510 $ 350 December 31, 2023: Fixed Maturities: Corporate $ 505 $ 7 $ 1,900 $ 269 $ 2,405 $ 276 U.S. Treasury, government and agency — — 8 — 8 — States and political subdivisions — — 33 7 33 7 Foreign governments 7 1 4 — 11 1 Residential mortgage-backed 103 — 9 4 112 4 Asset-backed 290 1 23 1 313 2 Commercial mortgage-backed 29 — 61 14 90 14 Total at December 31, 2023 $ 934 $ 9 $ 2,038 $ 295 $ 2,972 $ 304 |
Schedule of Financing Receivable, Allowance for Credit Loss | The change in the allowance for credit losses for commercial and residential mortgage loans were as follows: Three Months Ended March 31, 2024 2023 (in millions) Allowance for credit losses on mortgage loans: Commercial mortgages: Balance, beginning of period $ 2 $ — Current-period provision for expected credit losses 1 — Write-offs charged against the allowance — — Recoveries of amounts previously written off — — Net change in allowance 1 — Balance, end of period $ 3 $ — Residential mortgages: Balance, beginning of period $ — $ — Current-period provision for expected credit losses — — Write-offs charged against the allowance — — Recoveries of amounts previously written off — — Net change in allowance — — Balance, end of period $ — $ — Total allowance for credit losses $ 3 $ — |
Schedule of Financing Receivable Credit Quality Indicators | The Company’s commercial mortgage loans segregated by risk rating exposure were as follows: Loan to Value (“LTV”) Ratios (1) (3) March 31, 2024 Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial mortgage loans: 0% - 50% $ — $ 58 $ — $ — $ — $ 17 $ — $ — $ 75 50% - 70% 122 221 — — — — — — 343 70% - 90% — — — — — — — — — 90% plus — — — — — — — — — Total commercial $ 122 $ 279 $ — $ — $ — $ 17 $ — $ — $ 418 Debt Service Coverage (“DSC”) Ratios (2) (3) March 31, 2024 Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial mortgage loans: Greater than 2.0x $ — $ — $ — $ — $ — $ 17 $ — $ — $ 17 1.8x to 2.0x 40 — — — — — — — 40 1.5x to 1.8x — — — — — — — — — 1.2x to 1.5x 82 221 — — — — — — 303 1.0x to 1.2x — 58 — — — — — — 58 Less than 1.0x — — — — — — — — — Total commercial $ 122 $ 279 $ — $ — $ — $ 17 $ — $ — $ 418 _____________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Residential mortgage loans are excluded from the above tables. LTV Ratios (1) (3) December 31, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial mortgage loans: 0% - 50% $ 58 $ — $ — $ — $ — $ 17 $ — $ — $ 75 50% - 70% 221 — — — — — — — 221 70% - 90% — — — — — — — — — 90% plus — — — — — — — — — Total commercial $ 279 $ — $ — $ — $ — $ 17 $ — $ — $ 296 DSC Ratios (2) (3) December 31, 2023 Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (in millions) Commercial mortgage loans: Greater than 2.0x $ — $ — $ — $ — $ — $ 17 $ — $ — $ 17 1.8x to 2.0x — — — — — — — — — 1.5x to 1.8x — — — — — — — — — 1.2x to 1.5x 221 — — — — — — — 221 1.0x to 1.2x 58 — — — — — — — 58 Less than 1.0x — — — — — — — — — Total commercial $ 279 $ — $ — $ — $ — $ 17 $ — $ — $ 296 _____________ (1) The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan. (2) The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (3) Residential mortgage loans are excluded from the above tables. The amortized cost of residential mortgage loans by credit quality indicator and origination year was as follows: March 31, 2024 Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Total (in millions) Performance indicators: (1) Performing $ — $ 96 $ 18 $ 16 $ 1 $ — $ 131 Nonperforming — — — — — — — Total $ — $ 96 $ 18 $ 16 $ 1 $ — $ 131 _____________ (1) The Company began investing in residential mortgages in 2024. Therefore, 2023 comparative information is not applicable. |
Schedule of Age Analysis of Past Due Mortgage Loans | The aging analysis of past-due mortgage loans were as follows: Age Analysis of Past Due Mortgage Loans (1) Accruing Loans Non-accruing Loans Total Loans Non-accruing Loans with No Allowance Interest Income on Non-accruing Loans Past Due Current Total 30-59 Days 60-89 Days 90 Total (in millions) March 31, 2024: Mortgage loans: Commercial $ — 0 $ — $ — $ — $ 418 $ 418 $ — $ 418 $ — $ — Residential — 0 — — — 131 131 — 131 — — Total $ — $ — $ — $ — $ 549 $ 549 $ — $ 549 $ — $ — December 31, 2023: Mortgage loans: Commercial $ — $ — $ — $ — $ 296 $ 296 $ — $ 296 $ — $ — Residential — — — — — — — — — — Total $ — $ — $ — $ — $ 296 $ 296 $ — $ 296 $ — $ — ________________ (1) Amounts presented at amortized cost basis. |
Schedule of Unrealized and Realized Gains (Losses) from Equity Securities | The breakdown of unrealized and realized gains and (losses) on equity securities was as follows: Unrealized and Realized Gains (Losses) from Equity Securities Three Months Ended March 31, 2024 2023 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ — $ (1) Unrealized and realized gains (losses) on equity securities $ — $ (1) The breakdown of net investment income (loss) from trading securities was as follows: Net Investment Income (Loss) from Trading Securities Three Months Ended March 31, 2024 2023 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ — $ (2) Unrealized and realized gains (losses) on trading securities — (2) Net investment income (loss) from trading securities $ — $ (2) |
Schedule of Net Investment Income (Loss) | The following tables provide the components of net investment income by investment type: Three Months Ended March 31, 2024 2023 (in millions) Fixed maturities $ 143 $ 29 Mortgage loans on real estate 7 — Policy loans 1 1 Other equity investments 1 (1) Trading securities — (2) Other investment income 13 3 Gross investment income (loss) 165 30 Investment expenses (4) (1) Net investment income (loss) $ 161 $ 29 |
Schedule of Investment Gains (Losses) Net Including Changes In Valuation Allowances and Credit Losses | Investment gains (losses), net, including changes in the valuation allowances and credit losses were as follows: Three Months Ended March 31, 2024 2023 (in millions) Fixed maturities $ — $ (5) Mortgage loans on real estate (1) — Investment gains (losses), net $ (1) $ (5) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of 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 fair value of the Company’s derivatives: Derivative Instruments by Category March 31, 2024 December 31, 2023 Fair Value Fair Value Notional Derivative Assets Derivative Net Derivatives Notional Derivative Assets Derivative Net Derivatives (in millions) Derivatives: (1) Equity contracts: Futures $ 2,470 $ — $ — $ — $ 2,277 $ — $ — $ — Options 6,957 2,096 538 1,558 4,930 1,370 402 968 Interest rate contracts: Futures 719 — — — 522 — — — Other contracts: Margin — 138 — 138 — 133 — 133 Collateral — — 1,551 (1,551) — — 956 (956) Total: 10,146 2,234 2,089 145 7,729 1,503 1,358 145 Embedded derivatives: SCS, SIO, MSO and IUL indexed features (2) — — 11,222 (11,222) — — 8,804 (8,804) Funds withheld receivable (3) — (29) — (29) — 100 — 100 Modco receivable (2) — — (292) 292 — — (411) 411 Total embedded derivatives — (29) 10,930 (10,959) — 100 8,393 (8,293) Total derivative instruments $ 10,146 $ 2,205 $ 13,019 $ (10,814) $ 7,729 $ 1,603 $ 9,751 $ (8,148) ______________ (1) Reported in other invested assets in the consolidated balance sheets. (2) Reported in policyholders’ account balances in the consolidated balance sheets. (3) Reported in funds withheld receivable in the consolidated balance sheets. The following table presents the effects of derivative instruments on the consolidated statements of income (loss) and comprehensive income (loss): Three Months Ended March 31, 2024 2023 Net Derivatives Gains (Losses) (in millions) Derivatives: Equity contracts: Futures $ 157 $ 16 Options 394 6 Interest rate contracts: Futures (24) 20 Total: 527 42 Three Months Ended March 31, 2024 2023 Net Derivatives Gains (Losses) (in millions) Embedded Derivatives: SCS, SIO, MSO and IUL indexed features (2,537) (36) Funds withheld receivable (1,017) — Modco receivable 1,972 — Total Embedded Derivatives (1,582) (36) Total Derivatives instruments (1) $ (1,055) $ 6 ______________ (1) |
Schedule of Offsetting Financial Assets and Liabilities and Derivative Instruments | The following tables present information about the Company’s offsetting of financial assets and liabilities and derivative instruments: Offsetting of Financial Assets and Liabilities and Derivative Instruments As of March 31, 2024 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 $ 2,235 $ 2,089 $ 146 $ — $ 146 Secured lending 21 — 21 — 21 Other financial assets 7 — 7 — 7 Other invested assets $ 2,263 $ 2,089 $ 174 $ — $ 174 Liabilities: Derivative liabilities $ 2,089 $ 2,089 $ — $ — $ — Secured lending 21 — 21 — 21 Other financial liabilities 2,207 — 2,207 — 2,207 Other liabilities $ 4,317 $ 2,089 $ 2,228 $ — $ 2,228 ______________ (1) Financial instruments sent (held). As of December 31, 2023 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 $ 1,503 $ 1,177 $ 326 $ (178) $ 148 Secured lending 6 — 6 — 6 Other financial assets 19 — 19 — 19 Other invested assets $ 1,528 $ 1,177 $ 351 $ (178) $ 173 Liabilities: Derivative liabilities $ 1,180 $ 1,177 $ 3 $ — $ 3 Secured lending 6 — 6 — 6 Other financial liabilities 2,160 — 2,160 — 2,160 Other liabilities $ 3,346 $ 1,177 $ 2,169 $ — $ 2,169 ______________ (1) Financial instruments sent (held). |
DAC AND OTHER DEFERRED ASSETS_2
DAC AND OTHER DEFERRED ASSETS/LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Contract Holder Bonus Interest Credits [Abstract] | |
Schedule of Reconciliation of Deferred Acquisition Cost | The following table presents a reconciliation of DAC to the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) VUL $ 467 $ 457 IUL 290 293 GMxB Core 144 119 Investment Edge 31 22 SCS 375 289 Other 41 32 Total $ 1,348 $ 1,212 |
Schedule of Deferred Policy Acquisition Costs | Changes in the DAC asset were as follows: Three Months Ended March 31, 2024 VUL (1) IUL (2) GMxB Core IE (3) SCS Total (in millions) Balance, beginning of period $ 457 $ 293 $ 119 $ 22 $ 289 $ 1,180 Capitalization 16 2 28 10 98 154 Amortization (6) (5) (3) (1) (12) (27) Balance, end of period $ 467 $ 290 $ 144 $ 31 $ 375 $ 1,307 ______________ (1) “VUL” defined as Variable Universal Life. (2) “IUL” defined as Indexed Universal Life. (3) “IE” defined as Investment Edge. Three Months Ended March 31, 2023 VUL IUL GMxB Core IE SCS Total (in millions) Balance, beginning of period $ 410 $ 296 $ 40 $ 1 $ 13 $ 760 Capitalization 17 3 9 5 42 76 Amortization (6) (4) (1) — (1) (12) Balance, end of period $ 421 $ 295 $ 48 $ 6 $ 54 $ 824 Changes in the unearned revenue liability were as follows: Three Months Ended March 31, 2024 2023 VUL IUL VUL IUL (in millions) Balance, beginning of period $ 203 $ 210 $ 159 $ 157 Capitalization 15 14 13 17 Amortization (3) (3) (2) (3) Balance, end of period $ 215 $ 221 $ 170 $ 171 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below. Fair Value Measurements as of March 31, 2024 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 5,924 $ 100 $ 6,024 U.S. Treasury, government and agency — 14 — 14 States and political subdivisions — 43 — 43 Foreign governments — 49 — 49 Residential mortgage-backed — 1,112 — 1,112 Asset-backed (2) — 3,771 38 3,809 Commercial mortgage-backed — 254 1 255 Total fixed maturities, AFS — 11,167 139 11,306 Other equity investments — 20 — 20 Other invested assets: Trading securities — — — — Short-term investments — 3 — 3 Options — 1,558 — 1,558 Total other invested assets — 1,561 — 1,561 Cash equivalents 3,174 — — 3,174 Funds withheld receivable (3) (5) — — (29) (29) Purchased market risk benefits — — 7 7 Assets for market risk benefits — — 34 34 Separate Accounts assets (4) 6,622 7 — 6,629 Total Assets $ 9,796 $ 12,755 $ 151 $ 22,702 Liabilities: Policyholders’ account balances: SCS, MSO and IUL indexed features’ liability — 11,222 — 11,222 Modco receivable (5) — — (292) (292) Liabilities for market risk benefits — — 6,383 6,383 Total Liabilities $ — $ 11,222 $ 6,091 $ 17,313 ______________ (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) As discussed in Note 2, the funds withheld receivable was created through a funds withheld and modified coinsurance agreement where the investments supporting the reinsurance agreement are withheld by and continue to reside on Equitable Financial’s consolidated balance sheet. This embedded derivative is valued as a total return swap with references to the fair value of the invested assets held by the Equitable Financial, which are primarily available for sale securities. (4) Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $201 million. (5) The embedded derivative is partially reflected in funds withheld receivable and policyholders’ account balance. The portion within Policyholders’ account balances relates to the non-insulated products assumed on a modified coinsurance basis and is reflected net of assumed liabilities on the balance sheet. Fair Value Measurements as of December 31, 2023 Level 1 Level 2 Level 3 Total (in millions) Assets: Investments: Fixed maturities, AFS: Corporate (1) $ — $ 5,575 $ 87 $ 5,662 U.S. Treasury, government and agency — 15 — 15 States and political subdivisions — 43 — 43 Foreign governments — 31 — 31 Residential mortgage-backed — 972 — 972 Asset-backed (2) — 2,962 24 2,986 Commercial mortgage-backed — 181 1 182 Total fixed maturities, AFS — 9,779 112 9,891 Other equity investments — 19 — 19 Other invested assets: Options — 968 — 968 Total other invested assets — 968 — 968 Cash equivalents 1,654 — — 1,654 Funds withheld receivable (3) (5) — — 100 100 Purchased market risk benefits — — 9 9 Assets for market risk benefits — — 24 24 Separate Accounts assets (4) 5,747 7 — 5,754 Total Assets $ 7,401 $ 10,773 $ 245 $ 18,419 Liabilities: Policyholders’ account balances: SCS, SIO, MSO and IUL indexed features’ liability — 8,804 — 8,804 Modco receivable (5) — — (411) (411) Liabilities for market risk benefits — — 7,333 7,333 Total Liabilities $ — $ 8,804 $ 6,922 $ 15,726 ______________ (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) As discussed in Note 2, the funds withheld receivable was created through a funds withheld and modified coinsurance agreement where the investments supporting the reinsurance agreement are withheld by and continue to reside on Equitable Financial’s consolidated balance sheet. This embedded derivative is valued as a total return swap with references to the fair value of the invested assets held by the Equitable Financial, which are primarily available for sale securities. (4) Separate Accounts assets included in the fair value hierarchy exclude investments not fair valued including other assets of $1 million. (5) |
Schedule of Reconciliation of Assets and Liabilities at Level 3 | The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses). Not included below are the changes in balances related to market risk benefits and purchased market risk benefits level 3 assets and liabilities, which are included in Note 8 of the Notes to these Consolidated Financial Statements. Level 3 Instruments - Fair Value Measurements Three Months Ended March 31, 2024 Corporate Asset-backed CMBS Funds Withheld Receivable Modco Receivable (in millions) Balance, beginning of period $ 87 $ 24 $ 1 $ 100 $ (411) 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 15 25 — — — Sales (2) (11) — — — Change in fair value of funds withheld assets — — (129) 119 Transfers into Level 3 (1) — — — — — Transfers out of Level 3 (1) — — — — — Balance, end of period $ 100 $ 38 $ 1 $ (29) $ (292) Three Months Ended March 31, 2024 Corporate Asset-backed CMBS Funds Withheld Receivable Modco Receivable (in millions) 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. $ — $ — $ — $ — $ — Three Months Ended March 31, 2023 Corporate Asset-backed CMBS Funds Withheld Receivable Modco Receivable (in millions) Balance, beginning of period $ 18 $ — $ — $ — $ — 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 29 — — — — Sales — — — — — Transfers into Level 3 (1) — — — — — Transfers out of Level 3 (1) (10) — — — — Balance, end of period $ 37 $ — $ — $ — $ — 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. |
Schedule of Quantitative Information About Level 3 Fair Value Measurement | The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities: Quantitative Information about Level 3 Fair Value Measurements as of March 31, 2024 Fair Valuation Technique Significant Range Weighted Average (Dollars in millions) Assets:(5) Investments: Fixed maturities, AFS: Corporate $ 42 Matrix pricing model Spread over benchmark 95 bps - 270 bps 132 bps $ 17 Market comparable companies EBITDA multiples Discount Rate Cashflow Multiples Loan to Value 3.3x - 30.5x 0.0% - 19.2% 0.8x - 9.3x 0.0% - 61.4% 0.0x 0.0% 0.0x 0.00% Other equity investments — Discounted Cash Flow Earnings Multiple 3.9x - 7.0x 5.9x Purchased MRB asset (1) (2) (4) 7 Discounted cash flow Lapse rates Withdrawal rates Annuitization rates Non-performance risk (bps) Mortality: Ages 0-40 Ages 41-60 Ages 61-115 N/A N/A Liabilities: Direct MRB (1) (2) (3) (4) $ 6,349 Discounted cash flow Non-performance risk (bps) Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115 22 bps - 117 bps 0.21% - 29.37% 0.00% - 14.97% 0.04% - 100.00% 0.01% - 0.18% 0.07% - 0.53% 0.33% - 42.00% 22 bps 3.97% 0.69% 3.09% 2.65% (same for all ages) (same for all ages) ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. (2) Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. GMIB utilization rates were developed as a function of the GMIB benefit base (3) MRB liabilities are shown net of MRB assets. Net amount is made up of $6,383 million of MRB liabilities and $34 million of MRB asset. (4) Includes Core products. (5) Funds withheld and modco receivable that contain embedded derivatives held at fair value are excluded from the tables above. The funds withheld receivable embedded derivative utilizes a total return swap technique which incorporates the fair value of the invested assets supporting the reinsurance agreement as a component of the valuation. Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2023 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average (Dollars in millions) Assets: Investments: Fixed maturities, AFS: Corporate $ 39 Matrix pricing model Spread over benchmark 95 bps - 120 bps 118 bps Purchased MRB asset (1) (2) (4) 9 Discounted cash flow Lapse rates Withdrawal rates Annuitization Non-performance risk (bps) Mortality: Ages 0-40 Ages 41-60 Ages 61-115 N/A N/A Liabilities: Direct MRB (1) (2) (3) (4) $ 7,309 Discounted cash flow Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality: Ages 0-40 Ages 41-60 Ages 61-115 23 bps - 118 bps 0.21% - 29.37% 0.00% - 14.97% 0.04% - 100.00% 0.01% - 0.18% 0.07% - 0.53% 0.33% - 42.00% 23 bps 3.99% 0.67% 3.04% 2.62% (same for all ages) (same for all ages) ______________ (1) Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives. (2) Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. GMIB utilization rates were developed as a function of the GMIB benefit base. (3) MRB liabilities are shown net of MRB assets. Net amount is made up of $7,333 million of MRB liabilities and $24 million of MRB assets. (4) Includes Core products. |
Schedule of Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements were as follows. Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) March 31, 2024: Mortgage loans on real estate $ 546 $ — $ — $ 414 $ 414 Policy loans $ 278 $ — $ — $ 281 $ 281 Funds withheld receivable $ 9,784 $ — $ — $ 9,784 $ 9,784 Modco receivable $ 31,045 $ — $ — $ 31,045 $ 31,045 Policyholders’ liabilities: Investment contracts $ 106 $ — $ — $ 103 $ 103 Separate Accounts liabilities $ 434 $ — $ — $ 434 $ 434 December 31, 2023: Mortgage loans on real estate $ 294 $ — $ — $ 297 $ 297 Policy loans $ 268 $ — $ — $ 275 $ 275 Funds withheld receivable $ 10,503 $ — $ — $ 10,503 $ 10,503 Modco receivable $ 29,912 $ — $ — $ 29,912 $ 29,912 Policyholders’ liabilities: Investment contracts $ 110 $ — $ — $ 108 $ 108 Separate Accounts liabilities $ 372 $ — $ — $ 372 $ 372 |
LIABILITIES FOR FUTURE POLICY_2
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Schedule of Policyholder Account Balance and Liability for Unpaid Claims and Claims Adjustment Expense | The following tables reconcile the net liability for future policy benefits and liability of death benefits to the liability for future policy benefits in the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) Reconciliation Payout - Legacy $ 447 $ 340 UL (1) 347 344 Other (2) 371 365 Subtotal 1,165 1,049 Other policy funds (3) 636 604 Grand total $ 1,801 $ 1,653 ______________ (1) Represents the SOP NLG Rider on UL contracts assumed from Equitable Financial. (2) Primarily future policy benefits related to Protective Life & Annuity and Employee Benefits. (3) Includes $439 million of URL of which $436 million is covered in Note 5 of the Notes to these Consolidated Financial Statements. |
Schedule of Policyholder Account Balance | The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts. The payout annuities result from annuitization of current contracts. Inflows are the liquidation of the account values not premiums: Three Months Ended March 31, Payout-Legacy 2024 2023 (Dollars in millions) Present Value of Expected Future Policy Benefits Balance, beginning of period $ 340 $ — Beginning balance of original discount rate 333 — Effect of changes in cash flow assumptions — — Effect of actual variances from expected experience — — Adjusted beginning of period balance 333 — Issuances 119 — Interest accrual 4 — Benefits payments (8) — Ending balance at original discount rate 448 — Effect of changes in discount rate assumptions (1) — Balance, end of period $ 447 $ — Net liability for future policy benefits $ 447 $ — Less: Reinsurance recoverable — — Net liability for future policy benefits, after reinsurance recoverable $ 447 $ — Weighted-average duration of liability for future policyholder benefits (years) 7.7 — The following tables reconcile the policyholders account balances to the policyholders’ account balance liability in the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) Policyholders’ account balance reconciliation UL $ 1,180 $ 1,186 IUL 2,460 2,431 EI 1,893 1,964 EG 6,544 6,619 SCS 44,594 40,353 Other (1) (28,415) (27,590) Total $ 28,256 $ 24,963 ______________ (1) Includes $(31.3) billion of assumed fair value of the modco reinsurance with Equitable Financial. The following tables summarize the balances and changes in policyholders’ account balances: Three Months Ended March 31, 2024 UL IUL EI EG SCS (1) (Dollars in millions) Balance, beginning of period $ 1,186 $ 2,431 $ 1,964 $ 6,619 40,353 Issuances — — — — — Premiums received 115 61 3 78 1 Policy charges (121) (49) — (1) (3) Surrenders and withdrawals (4) (31) (78) (249) (777) Benefit payments (5) (5) (6) (4) (62) Net transfers from (to) separate account — — (4) 43 2,483 Interest credited (2) 9 53 14 58 2,599 Balance, end of period $ 1,180 $ 2,460 $ 1,893 $ 6,544 $ 44,594 Weighted-average crediting rate 3.56% 2.46% 2.89% 2.37% —% Net amount at risk (3) $ 15,806 $ 18,940 $ 94 $ 4 $ — Cash surrender value $ 1,034 $ 1,872 $ 1,889 $ 6,496 $ 41,487 ______________ (1) SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate. (2) SCS includes amounts related to the change in embedded derivative. (3) For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder. Three Months Ended March 31, 2023 IUL VUL GMxB Core IE SCS (1) Reinsured (2) (Dollars in millions) Balance, beginning of period $ 1,962 $ 655 $ 27 $ 7 $ 242 $ 819 Issuances — — — — — — Premiums received 58 5 29 — — 6 Policy charges (44) (9) (2) — — (9) Surrenders and withdrawals (7) — — — (1) (23) Benefit payments (3) (2) — — — (2) Net transfers from (to) separate account — 11 (26) 77 1,031 — Three Months Ended March 31, 2023 IUL VUL GMxB Core IE SCS (1) Reinsured (2) (Dollars in millions) Interest credited (3) 30 9 — 1 24 8 Other — — — — — 1 Balance, end of period $ 1,996 $ 669 $ 28 $ 85 $ 1,296 $ 800 Weighted-average crediting rate 2.23% 3.52% 1.00% 1.00% 1.00% 4.12% Net amount at risk (4) $ 18,004 $ 30,589 $ 9 $ — $ — $ 4,011 Cash surrender value $ 1,505 $ 535 $ 32 $ 81 $ 1,208 $ 799 ___________ (1) SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account. (2) Reinsured primarily reflects Protective Life reinsured business. (3) SCS includes amounts related to the change in embedded derivative. (4) For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder. Separate Account - Summary The following tables reconcile the Separate Account liabilities to the Separate Account liability balance in the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) Separate Account Reconciliation VUL $ 2,317 $ 2,128 GMxB Core 2,710 2,166 IE 319 226 Reinsured 1,085 1,022 Other 399 212 Total $ 6,830 $ 5,754 The following tables present the balances of and changes in Separate Account liabilities: Three Months Ended March 31, 2024 VUL GMxB Core IE Reinsured (2) (in millions) Balance, beginning of period $ 2,128 $ 2,166 $ 226 $ 1,022 Premiums and deposits 105 388 245 5 Policy charges (36) (4) — (7) Surrenders and withdrawals (13) (17) (4) (22) Benefit payments (5) (2) — (4) Investment performance (1) 151 129 14 — Net transfers from (to) general account (13) 50 (162) 91 Other charges — — — — Balance, end of period $ 2,317 $ 2,710 $ 319 $ 1,085 Cash surrender value $ 1,982 $ 2,522 $ 305 $ — __ _____________ (1) Investment performance is reflected net of mortality and expense fees. (2) Reinsured primarily reflects Protective Life reinsured ceded business. Three Months Ended March 31, 2023 VUL GMxB Core IE Reinsured (1) (in millions) Balance, beginning of period $ 1,653 $ 756 $ 26 $ 913 Premiums and deposits 96 139 138 5 Policy charges (32) (2) — (8) Surrenders and withdrawals (10) (5) — (14) Benefit payments (2) (2) — (4) Investment performance (2) 98 38 1 74 Net transfers from (to) general account (11) 26 (77) — Other charges — — — — Balance, end of period $ 1,792 $ 950 $ 88 $ 966 Cash surrender value $ 1,468 $ 874 $ 84 $ — __ ____________ (1) Reinsured primarily reflects Protective Life reinsured ceded business. (2) Investment performance is reflected net of mortality and expense fees. |
Schedule of Liability for Future Policy Benefits, Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefits and Expenses | The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses related to nonparticipating traditional and limited payment contracts: March 31, 2024 December 31, 2023 (in millions) Payout-Legacy Expected future benefit payments and expenses (undiscounted) $ 686 $ 508 Expected future gross premiums (undiscounted) — — Expected future benefit payments and expenses (discounted) 447 340 Expected future gross premiums (discounted) — — |
Schedule of Liability for Future Policy Benefits, Revenue and Interest Accretion | The following table provides the revenue, interest and weighted average interest rates, related to the additional insurance liabilities : Three Months Ended March 31, 2024 2023 2024 2023 Gross Premium Interest Accretion (in millions) Revenue and Interest Accretion Payout - Legacy (1) $ 27 $ — $ 6 $ — Total $ 27 $ — $ 6 $ — ______________ (1) Gross premium reflected is the liquidation of Account Value at time of annuitization. |
Schedule of Liability for Future Policy Benefits, Weighted Average Interest Rates | The following table provides the weighted average interest rates for the liability for future policy benefits: March 31, 2024 December 31, 2023 Weighted Average Interest Rate Payout-Legacy Interest accretion rate 5.1 % 5.3 % Current discount rate 5.2 % 5.0 % Three Months Ended March 31, 2024 2023 Universal Life Weighted Average Interest Rate UL 4.5 % 5.5 % Interest accretion rate 4.5 % 5.5 % |
Schedule of Balances of and Changes in Additional Liabilities Related to Insurance Guarantees | The following table provides the balance, changes in and the weighted average durations of the additional insurance liabilities: Three Months Ended March 31, 2024 2023 UL (1) Universal Life (2) (Dollars in millions) Balance, beginning of period $ 344 $ 58 Beginning balance before AOCI adjustments 344 66 Effect of changes in interest rate and cash flow assumptions and model changes — — Effect of actual variances from expected experience (1) (1) Adjusted beginning of period balance 343 65 Issuances — — Interest accrual 4 1 Net assessments collected 4 2 Benefit payments (4) — Ending balance before shadow reserve adjustments 347 68 Effect of shadow reserve adjustment — (6) Balance, end of period $ 347 $ 62 Net liability for additional liability $ 347 $ 62 Effect of reserve adjustment recorded in AOCI — — Net liability for additional liability, after reinsurance recoverable $ 347 $ 62 Weighted-average duration of additional liability - death benefit (years) 17.5 32.3 ______________ (1) The 2024 additional insurance liabilities represent the SOP NLG Rider on UL contracts assumed from Equitable Financial. (2) The 2023 additional insurance liabilities represent the SOP LTC Rider on all Universal Life contracts inclusive of VL and UL sold by the Company. Subsequent to the Reinsurance Treaty described further in Note 16 of the Notes to these Consolidated Financial Statements, these are no longer material and are not disclosed separately. The following tables provide the revenue, interest and weighted average interest rates, related to the additional insurance liabilities: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Assessments Interest Accretion Assessments Interest Accretion (in millions) Revenue and Interest Accretion UL (1) $ 124 $ 4 $ 5 $ — Total $ 124 $ 4 $ 5 $ — _____________ (1) |
MARKET RISK BENEFITS (Tables)
MARKET RISK BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Market Risk Benefit [Abstract] | |
Schedule of Market Risk Benefit, Activity | The following table presents the balances and changes to the balances for the market risk benefits for the GMxB benefits on deferred variable annuities: Three Months Ended March 31, 2024 2023 GMxB Core GMxB Legacy GMxB Core GMxB Legacy (Dollars in millions) Balance, beginning of period $ 1,191 $ 6,082 $ (6) $ — Balance BOP before changes in the instrument specific credit risk 934 5,695 (5) — Model changes and effect of changes in cash flow assumptions — — — — Actual market movement effect (150) (333) (5) — Interest accrual 9 58 — — Attributed fees accrued (1) 85 73 1 — Benefit payments (10) (145) — — Actual policyholder behavior different from expected behavior 2 (3) 2 — Changes in future economic assumptions (213) (408) 3 — Issuances (2) (2) 163 — — Balance EOP before changes in the instrument-specific credit risk 655 5,100 (4) — Changes in the instrument-specific credit risk (3) 232 350 (7) — Balance, end of period $ 887 $ 5,450 $ (11) $ — Weighted-average age of policyholders (years) 64.9 73.9 61.3 — Net amount at risk $ 2,731 $ 9,405 $ 9 $ — _______________ (1) Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims. (2) GMxB Legacy issuances are related to the Reinsurance Treaty with Equitable Financial. Equitable Financial completed in Q1 2024 a non-affiliated recapture of reinsurance. The Company assumed in MRBs related to the policies recaptured. (3) Changes are recorded in OCI. The following table reconciles market risk benefits by the amounts in an asset position and amounts in a liability position to the market risk benefit amounts in the consolidated balance sheets: March 31, 2024 December 31, 2023 MRB Asset MRB Liability Net MRB Purchased MRB Total MRB Asset MRB Liability Net MRB Purchased MRB Total (in millions) GMxB Core $ (25) $ 912 $ 887 $ — $ 887 $ (14) $ 1,205 $ 1,191 $ — $ 1,191 GMxB Legacy — 5,450 5,450 — 5,450 — 6,082 6,082 — 6,082 Other (9) 21 12 (7) 5 (10) 46 36 (9) 27 Total $ (34) $ 6,383 $ 6,349 $ (7) $ 6,342 $ (24) $ 7,333 $ 7,309 $ (9) $ 7,300 |
POLICYHOLDER ACCOUNT BALANCES (
POLICYHOLDER ACCOUNT BALANCES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Policyholder Account Balance [Abstract] | |
Schedule of Policyholder Account Balance | The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited pay contracts. The payout annuities result from annuitization of current contracts. Inflows are the liquidation of the account values not premiums: Three Months Ended March 31, Payout-Legacy 2024 2023 (Dollars in millions) Present Value of Expected Future Policy Benefits Balance, beginning of period $ 340 $ — Beginning balance of original discount rate 333 — Effect of changes in cash flow assumptions — — Effect of actual variances from expected experience — — Adjusted beginning of period balance 333 — Issuances 119 — Interest accrual 4 — Benefits payments (8) — Ending balance at original discount rate 448 — Effect of changes in discount rate assumptions (1) — Balance, end of period $ 447 $ — Net liability for future policy benefits $ 447 $ — Less: Reinsurance recoverable — — Net liability for future policy benefits, after reinsurance recoverable $ 447 $ — Weighted-average duration of liability for future policyholder benefits (years) 7.7 — The following tables reconcile the policyholders account balances to the policyholders’ account balance liability in the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) Policyholders’ account balance reconciliation UL $ 1,180 $ 1,186 IUL 2,460 2,431 EI 1,893 1,964 EG 6,544 6,619 SCS 44,594 40,353 Other (1) (28,415) (27,590) Total $ 28,256 $ 24,963 ______________ (1) Includes $(31.3) billion of assumed fair value of the modco reinsurance with Equitable Financial. The following tables summarize the balances and changes in policyholders’ account balances: Three Months Ended March 31, 2024 UL IUL EI EG SCS (1) (Dollars in millions) Balance, beginning of period $ 1,186 $ 2,431 $ 1,964 $ 6,619 40,353 Issuances — — — — — Premiums received 115 61 3 78 1 Policy charges (121) (49) — (1) (3) Surrenders and withdrawals (4) (31) (78) (249) (777) Benefit payments (5) (5) (6) (4) (62) Net transfers from (to) separate account — — (4) 43 2,483 Interest credited (2) 9 53 14 58 2,599 Balance, end of period $ 1,180 $ 2,460 $ 1,893 $ 6,544 $ 44,594 Weighted-average crediting rate 3.56% 2.46% 2.89% 2.37% —% Net amount at risk (3) $ 15,806 $ 18,940 $ 94 $ 4 $ — Cash surrender value $ 1,034 $ 1,872 $ 1,889 $ 6,496 $ 41,487 ______________ (1) SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate. (2) SCS includes amounts related to the change in embedded derivative. (3) For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder. Three Months Ended March 31, 2023 IUL VUL GMxB Core IE SCS (1) Reinsured (2) (Dollars in millions) Balance, beginning of period $ 1,962 $ 655 $ 27 $ 7 $ 242 $ 819 Issuances — — — — — — Premiums received 58 5 29 — — 6 Policy charges (44) (9) (2) — — (9) Surrenders and withdrawals (7) — — — (1) (23) Benefit payments (3) (2) — — — (2) Net transfers from (to) separate account — 11 (26) 77 1,031 — Three Months Ended March 31, 2023 IUL VUL GMxB Core IE SCS (1) Reinsured (2) (Dollars in millions) Interest credited (3) 30 9 — 1 24 8 Other — — — — — 1 Balance, end of period $ 1,996 $ 669 $ 28 $ 85 $ 1,296 $ 800 Weighted-average crediting rate 2.23% 3.52% 1.00% 1.00% 1.00% 4.12% Net amount at risk (4) $ 18,004 $ 30,589 $ 9 $ — $ — $ 4,011 Cash surrender value $ 1,505 $ 535 $ 32 $ 81 $ 1,208 $ 799 ___________ (1) SCS sales are recorded in a Separate Account holding account until they are swept into the General Account. This sweep is recorded as Net Transfers from (to) separate account. (2) Reinsured primarily reflects Protective Life reinsured business. (3) SCS includes amounts related to the change in embedded derivative. (4) For life insurance products, the net amount at risk is death benefit less account value for the policyholder. For variable annuity products, the net amount at risk is the maximum GMxB NAR for the policyholder. Separate Account - Summary The following tables reconcile the Separate Account liabilities to the Separate Account liability balance in the consolidated balance sheets: March 31, 2024 December 31, 2023 (in millions) Separate Account Reconciliation VUL $ 2,317 $ 2,128 GMxB Core 2,710 2,166 IE 319 226 Reinsured 1,085 1,022 Other 399 212 Total $ 6,830 $ 5,754 The following tables present the balances of and changes in Separate Account liabilities: Three Months Ended March 31, 2024 VUL GMxB Core IE Reinsured (2) (in millions) Balance, beginning of period $ 2,128 $ 2,166 $ 226 $ 1,022 Premiums and deposits 105 388 245 5 Policy charges (36) (4) — (7) Surrenders and withdrawals (13) (17) (4) (22) Benefit payments (5) (2) — (4) Investment performance (1) 151 129 14 — Net transfers from (to) general account (13) 50 (162) 91 Other charges — — — — Balance, end of period $ 2,317 $ 2,710 $ 319 $ 1,085 Cash surrender value $ 1,982 $ 2,522 $ 305 $ — __ _____________ (1) Investment performance is reflected net of mortality and expense fees. (2) Reinsured primarily reflects Protective Life reinsured ceded business. Three Months Ended March 31, 2023 VUL GMxB Core IE Reinsured (1) (in millions) Balance, beginning of period $ 1,653 $ 756 $ 26 $ 913 Premiums and deposits 96 139 138 5 Policy charges (32) (2) — (8) Surrenders and withdrawals (10) (5) — (14) Benefit payments (2) (2) — (4) Investment performance (2) 98 38 1 74 Net transfers from (to) general account (11) 26 (77) — Other charges — — — — Balance, end of period $ 1,792 $ 950 $ 88 $ 966 Cash surrender value $ 1,468 $ 874 $ 84 $ — __ ____________ (1) Reinsured primarily reflects Protective Life reinsured ceded business. (2) Investment performance is reflected net of mortality and expense fees. |
Schedule of Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following table presents the account values by range of guaranteed minimum crediting rates and the related range of the difference in basis points, between rates being credited policyholders and the respective guaranteed minimums: March 31, 2024 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total (in millions) Universal Life 0.00% - 1.50% $ — $ — $ — $ — $ — 1.51% - 2.50% 31 23 300 341 695 Greater than 2.50% — 486 — — 486 Total $ 31 $ 509 $ 300 $ 341 $ 1,181 Indexed Universal Life 0.00% - 1.50% — — — — — 1.51% - 2.50% 1,116 152 1,076 — 2,344 Greater than 2.50% — — — — — Total $ 1,116 $ 152 $ 1,076 $ — $ 2,344 EQUI-VEST Individual 0.00% - 1.50% 45 201 — — 246 1.51% - 2.50% 39 — — — 39 Greater than 2.50% 1,608 — — — 1,608 Total 1,692 201 — — 1,893 SCS Products with either a fixed rate or no guaranteed minimum N/A N/A N/A N/A N/A March 31, 2024 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point - 50 Basis Points Above 51 Basis Points - 150 Basis Points Above Greater Than 150 Basis Points Above Total (in millions) EQUI-VEST Group 0.00% - 1.50% $ 464 $ 2,035 $ 23 $ 253 $ 2,775 1.51% - 2.50% $ 271 $ — $ — $ — $ 271 Greater than 2.50% $ 2,556 $ — $ — $ — $ 2,556 Total $ 3,291 $ 2,035 $ 23 $ 253 $ 5,602 December 31, 2023 Product Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total (in millions) Universal Life 0.00% - 1.50% $ — $ — $ — $ — $ — 1.51% - 2.50% 47 9 339 298 693 Greater than 2.50% — 492 — — 492 Total $ 47 $ 501 $ 339 $ 298 $ 1,185 Indexed Universal Life 0.00% - 1.50% $ — $ — $ — $ — $ — 1.51% - 2.50% 1,112 218 1,001 — 2,331 Greater than 2.50% — — — — — Total $ 1,112 $ 218 $ 1,001 $ — $ 2,331 EQUI-VEST Individual 0.00% - 1.50% $ 47 $ 205 $ — $ — $ 252 1.51% - 2.50% 42 — — — 42 Greater than 2.50% 1,670 — — — 1,670 Total $ 1,759 $ 205 $ — $ — $ 1,964 SCS Products with either a fixed rate or no guaranteed minimum N/A N/A N/A N/A N/A EQUI-VEST Group 0.00% - 1.50% $ 488 $ 2,020 $ 11 $ 277 $ 2,796 1.51% - 1.51% 269 — — — 269 Greater than 2.50% 2,642 — — — 2,642 Total $ 3,399 $ 2,020 $ 11 $ 277 $ 5,707 |
Schedule of Investment in Variable Insurance Trust Mutual Funds | The following tables present the aggregate fair value of Separate Account assets by major asset category: March 31, 2024 Life Insurance & Employee Benefits Products Individual Variable Annuity Products Employer - Sponsored Products Other Total (in millions) Asset Type Mutual Funds $ 2,869 $ 3,911 $ 38 $ 12 $ 6,830 Total $ 2,869 $ 3,911 $ 38 $ 12 $ 6,830 December 31, 2023 Life Insurance & Employee Benefits Products Individual Variable Annuity Products Other Total (in millions) Asset Type Mutual Funds $ 2,642 $ 3,100 $ 12 $ 5,754 Total $ 2,642 $ 3,100 $ 12 $ 5,754 |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 were as follows: March 31, 2024 December 31, 2023 (in millions) Unrealized gains (losses) on investments $ (140) $ (51) Market risk benefits - instrument-specific credit risk component (587) (649) Liability or future policy benefits - current discount rate component 28 6 Accumulated other comprehensive income (loss) $ (699) $ (694) |
Schedule of Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of OCI, net of taxes were as follows: Three Months Ended March 31, 2024 2023 (in millions) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the period $ (72) $ 72 (Gains) losses reclassified into net income (loss) during the period (1) — 4 Net unrealized gains (losses) on investments (72) 76 Adjustments for policyholders’ liabilities, insurance liability loss recognition and other 1 (1) Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(13) and $16) (71) 75 Change in LFPB discount rate and MRB credit risk Change in market risk benefits - instrument-specific credit risk (net of deferred income tax expense (benefit) of $13 and $1) 48 4 Changes in liability for future policy benefits - current discount rate (net of deferred income tax expense (benefit) of $5 and $0) 18 — Other comprehensive income (loss) $ (5) $ 79 ______________ (1) See “Reclassification adjustment” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $0 million and $1 million and for the three months ended March 31, 2024 and 2023, respectively. |
UNPAID CLAIM AND CLAIM EXPENS_2
UNPAID CLAIM AND CLAIM EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Schedules of Liability for Unpaid Claims and Claims Adjustment Expense | The following summarizes the change in liability for unpaid claims and claim expenses: Liability for Unpaid Claims and Claim Expenses Three Months Ended March 31, 2024 2023 (in millions) Gross Balance, beginning of period $ 141 $ 110 Less Reinsurance 48 36 Net Balance, beginning of period 93 74 Incurred Claims (net) Related to: Current Period 83 67 Prior Period (13) (16) Total Incurred 70 51 Paid Claims (net) Related to: Current Period 25 23 Prior Period 35 26 Total Paid 60 49 Net Balance, end of period 103 76 Add Reinsurance 47 38 Gross Balance, end of period $ 150 $ 114 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Effect of Reinsurance | The following table summarizes the effect of reinsurance: Three Months Ended March 31, 2024 2023 (in millions) Direct charges and fee income $ 106 $ 85 Reinsurance assumed - Equitable Financial 327 — Reinsurance ceded (29) (24) Policy charges and fee income $ 404 $ 61 Direct premiums $ 101 $ 85 Reinsurance assumed - Equitable Financial 45 — Reinsurance ceded (14) (16) Premiums $ 132 $ 69 Direct policyholders’ benefits $ 136 $ 100 Reinsurance assumed - Equitable Financial 186 — Reinsurance ceded (31) (21) Policyholders’ benefits $ 291 $ 79 Direct interest credited to policyholders’ account balances $ 116 $ 31 Reinsurance assumed - Equitable Financial 154 — Reinsurance ceded (8) (8) Interest credited to policyholders’ account balances $ 262 $ 23 |
Summary of Composition of Pool of Assets | The following table summarizes the composition of the pool of assets: March 31, 2024 Carrying Value Fair Value (in millions) Fixed maturities $ 23,765 $ 23,765 Mortgage loans on real estate 8,291 7,270 Policy loans 253 254 Other equity investments 231 231 Other invested assets (1) 9,811 9,811 Total assets supporting funds withheld $ 42,351 $ 41,331 ______________ (1) Other invested assets includes derivatives and cash and cash equivalents. |
REVISION OF PREVIOUSLY ISSUED_2
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Prior Period Financial Statements Affected by Revision | The following tables present line items for the previously issued September 30, June 30 and March 31, 2023 interim financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact of the errors, and the amounts as revised. The following interim financial statements are unaudited. March 31, 2023 As Previously Adjustments As Revised (in millions) (unaudited) Balance Sheets Other assets 131 1 132 Assets for Market Risk Benefits 17 (2) 15 Total Assets 10,164 (1) 10,163 Liability for Market Risk Benefits 14 2 16 Total Liabilities 9,789 2 9,791 Accumulated deficit (157) (3) (160) Total Equity 375 (3) 372 Total Liabilities and Equity 10,164 (1) 10,163 Three Months Ended March 31, 2023 As Previously Adjustments As Revised (unaudited) (in millions) Statements of Income (Loss) Benefits and other deductions Change in Market Risk Benefits and Purchased Market Risk Benefits — 1 1 Total benefits and deductions 180 1 181 Income (loss) from continuing operations, before income taxes (9) (1) (10) Net income (loss) from continuing operations 63 (1) 62 Net income (loss) 63 (1) 62 Three Months Ended March 31, 2023 As Previously Adjustments As Revised (in millions) (unaudited) Statements of Comprehensive Income (Loss) Net income (loss) $ 63 $ (1) $ 62 Changes in market risk benefits - instrument-specific credit risk 5 (1) 4 Other comprehensive income 80 (1) 79 Comprehensive income (loss) 143 (2) 141 Three Months Ended March 31, 2023 As Previously Adjustments As Revised (unaudited) (in millions) Statements of Equity Accumulated Deficit, beginning of year (220) (2) (222) Net income (loss) 63 (1) 62 Accumulated Deficit, end of year (157) (3) (160) Accumulated other comprehensive income (loss), beginning of year (382) 1 (381) Other comprehensive income (loss) 80 (1) 79 Accumulated other comprehensive income (loss), end of year (302) — (302) Total equity, end of year 375 (3) 372 Three Months Ended March 31, 2023 As Reported Adjustments As Revised (unaudited) (in millions) Statement of Cash Flows Cash flow from operating activities: Net income (loss) $ 63 $ (1) $ 62 Change in Market Risk Benefits — $ 1 1 Net cash provided by (used in) operating activities (20) $ — (20) June 30, 2023 As Previously Adjustments As Revised (in millions) (unaudited) Balance Sheets Funds withheld receivable 10,615 39 10,654 Reinsurance deposit assets 12,782 (26) 12,756 Current and deferred income taxes 151 (2) 149 Assets for Market Risk Benefits 26 (2) 24 Total Assets 37,721 9 37,730 Policyholders’ account balances 21,014 (125) 20,889 Liability for Market Risk Benefits 7,363 4 7,367 Future policy benefits and other policyholders’ liabilities 1,209 89 1,298 Other liabilities 2,124 7 2,131 Total Liabilities 36,324 (25) 36,299 Equity Accumulated deficit (143) 34 (109) Total Equity 1,397 34 1,431 Total Liabilities and Equity 37,721 9 37,730 Three Months Ended Six Months Ended June 30, 2023 As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Income (Loss) Policy charges and fee income 411 (1) 410 472 (1) 471 Premiums 112 20 132 181 20 201 Net derivative gains (losses) (700) 1 (699) (694) 1 (693) Investment management and service fees 105 17 122 110 17 127 Total revenues 22 37 59 193 37 230 Benefits and other deductions Policyholders' benefits 335 (57) 278 414 (57) 357 Remeasurement of Liability for Future Policy Benefits 1 (2) (1) — (2) (2) Change in Market Risk Benefits and Purchased Market Risk Benefits (862) 23 (839) (862) 24 (838) Commissions 90 (1) 89 121 (1) 120 Other operating costs and expenses 222 34 256 245 34 279 Total benefits and deductions 2 (3) (1) 182 (2) 180 Income (loss) from continuing operations, before income taxes 20 40 60 11 39 50 Income tax (expense) benefit from continuing operations (6) (3) (9) 66 (3) 63 Net income (loss) from continuing operations 14 37 51 77 36 113 Net income (loss) 14 37 51 77 36 113 Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ 14 $ 37 $ 51 $ 77 $ 36 $ 113 Comprehensive income (loss) (29) 37 8 114 35 149 Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Equity Accumulated Deficit, beginning of year (157) (3) (160) (220) (2) (222) Net income (loss) 14 37 51 77 36 113 Accumulated Deficit, end of year (143) 34 (109) (143) 34 (109) Accumulated other comprehensive income (loss), beginning of year (302) — (302) (382) 1 (381) Other comprehensive income (loss) (43) — (43) 37 (1) 36 Accumulated other comprehensive income (loss), end of year (345) — (345) (345) — (345) — — — — — — Total equity, end of year 1,397 34 1,431 1,397 34 1,431 Six Months Ended June 30, 2023 As Reported Adjustments As Revised (unaudited) (in millions) Statement of Cash Flows Cash flow from operating activities: Net income (loss) $ 77 $ 36 $ 113 Policy charges and fee income (472) 1 (471) Net derivative (gains) losses 694 (1) 693 Remeasurement of liability for future policy benefits — (2) (2) Change in Market Risk Benefits (862) 24 (838) Future policy benefits 133 89 222 Funds Withheld 13 (174) (161) Current and deferred income taxes (66) 3 (63) Other, net 431 24 455 Net cash provided by (used in) operating activities 888 — 888 September 30, 2023 As Previously Adjustments As Revised (unaudited) (in millions) Balance Sheets Funds withheld receivable 10,550 127 10,677 Reinsurance deposit assets 12,682 (19) 12,663 Current and deferred income taxes 131 (4) 127 Assets for Market Risk Benefits 24 (2) 22 Total Assets 39,861 102 39,963 Liability for Market Risk Benefits 6,731 (19) 6,712 Future policy benefits and other policyholders’ liabilities 1,352 98 1,450 Other liabilities 2,137 7 2,144 Total Liabilities 38,371 86 38,457 Retained earnings (accumulated deficit) 373 (2) 371 Accumulated other comprehensive income (loss) (768) 18 (750) Total Equity 1,490 16 1,506 Total Liabilities and Equity 39,861 102 39,963 Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Income (Loss) Policy charges and fee income 410 1 411 882 — 882 Premiums 152 (20) 132 333 — 333 Net derivative gains (losses) (340) 4 (336) (1,034) 5 (1,029) Investment management and service fees 143 (17) 126 253 — 253 Total revenues 502 (32) 470 695 5 700 Benefits and other deductions Policyholders' benefits 244 17 261 658 (40) 618 Remeasurement of Liability for Future Policy Benefits 10 13 23 10 11 21 Change in Market Risk Benefits and Purchased Market Risk Benefits (980) (12) (992) (1,842) 12 (1,830) Commissions 100 (1) 99 221 (2) 219 Other operating costs and expenses 210 (11) 199 455 23 478 Total benefits and deductions (148) 6 (142) 34 4 38 Income (loss) from continuing operations, before income taxes 650 (38) 612 661 1 662 Income tax (expense) benefit from continuing operations (134) 3 (131) (68) — (68) Net income (loss) from continuing operations 516 (35) 481 593 1 594 Net income (loss) 516 (35) 481 593 1 594 Three Months Ended Nine Months Ended As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Comprehensive Income (Loss) Net income (loss) $ 516 $ (35) $ 481 $ 593 $ 1 $ 594 Changes in market risk benefits - instrument-specific credit risk (280) 18 (262) (268) 18 (250) Other comprehensive income (423) 19 (404) (386) 18 (368) Comprehensive income (loss) 93 (16) 77 207 19 226 Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 As Previously Adjustments As Revised As Previously Adjustments As Revised (unaudited) (in millions) Statements of Equity Accumulated Deficit, beginning of year (143) 34 (109) (220) (2) (222) Net income (loss) 516 (35) 481 593 1 594 Accumulated Deficit, end of year 373 (2) 371 373 (2) 371 Other comprehensive income (loss) (423) 19 (404) (386) 18 (368) Accumulated other comprehensive income (loss), end of year (768) 18 (750) (768) 18 (750) Total equity, end of year 1,490 16 1,506 1,490 16 1,506 Nine Months Ended September 30, 2023 As Reported Adjustments As Revised (unaudited) (in millions) Statement of Cash Flows Cash flow from operating activities Net income (loss) $ 593 $ 1 $ 594 Net derivative (gains) losses 1,034 (5) 1,029 Remeasurement of liability for future policy benefits\ 10 11 21 Change in Market Risk Benefits (1,842) 12 (1,830) Future policy benefits 264 101 365 Funds Withheld\ (87) (132) (219) Other, net 972 12 984 Net cash provided by (used in) operating activities 452 — 452 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 |
Variable Interest Entity [Line Items] | |||||
Assets | $ 47,712 | $ 44,196 | $ 39,963 | $ 37,730 | $ 10,163 |
Investments | 12,328 | 10,823 | |||
Consolidated Limited Partnerships | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 149 | 0 | |||
Non-consolidated Vairable Interest Entities | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 46 | 0 | |||
Investments | 4 | 0 | |||
Variable interest, maximum loss exposure | 4 | 0 | |||
Unfunded commitments | $ 207 | $ 147 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) issue | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) issue | |
Net Investment Income [Line Items] | |||
Number of unrealized loss issues | issue | 1,088 | 891 | |
Debt securities exposure in single issuer greater than stated percentage of total investments | 1.40% | ||
Amortized cost of fixed maturities available-for-sale | $ 11,551,000,000 | $ 10,050,000,000 | |
Unrealized loss on available for sale securities | 0 | 0 | |
Gross unrealized losses | 327,000,000 | 295,000,000 | |
Loaned securities | $ 21,000,000 | 23,000,000 | |
Minimum requirement percentage of the fair value of the loaned securities to be held as cash collateral | 102% | ||
Cash collateral | $ 21,000,000 | 23,000,000 | |
Financing receivable, allowance for credit loss, excluding accrued interest | 3,000,000 | $ 0 | 2,000,000 |
Separate account equity investment carrying value | 1,000,000 | 1,000,000 | |
Fair Value, Recurring | |||
Net Investment Income [Line Items] | |||
Trading securities | 0 | 0 | |
Commercial And Residential Mortgage Loans | |||
Net Investment Income [Line Items] | |||
Accrued investment income receivable | 3,000,000 | 1,000,000 | |
Accrued interest, written off | 0 | 0 | |
Individually Assessed Mortgage Loans | |||
Net Investment Income [Line Items] | |||
Mortgage loans foreclosure probable | 0 | 0 | |
Financing receivable, allowance for credit loss, excluding accrued interest | 0 | 0 | |
Mortgage Loans | |||
Net Investment Income [Line Items] | |||
Non-accruing loans, amortized cost | 0 | 0 | |
Fixed maturities | |||
Net Investment Income [Line Items] | |||
Accrued investment income receivable | 89,000,000 | 78,000,000 | |
Accrued interest written off | 0 | $ 0 | |
Amortized cost of fixed maturities available-for-sale | 11,600,000,000 | 10,100,000,000 | |
Fixed maturities | External Credit Rating, Non Investment Grade | |||
Net Investment Income [Line Items] | |||
Available-for-sale securities, amortized cost | $ 138,000,000 | $ 92,000,000 | |
Percentage of available for sale securities | 1.20% | 0.90% | |
Corporate | |||
Net Investment Income [Line Items] | |||
Debt securities exposure in single issuer of total investments | $ 83,000,000 | $ 82,000,000 | |
Debt securities exposure in single issuer of total investments, percent | 4% | 3.80% | |
Amortized cost of fixed maturities available-for-sale | $ 6,281,000,000 | $ 5,842,000,000 | |
Gross unrealized losses | $ 301,000,000 | $ 269,000,000 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 11,551 | $ 10,050 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 105 | 145 | |
Gross Unrealized Losses | 350 | 304 | |
Fair Value | 11,306 | 9,891 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Due in one year or less | 123 | ||
Due in years two through five | 1,599 | ||
Due in years six through ten | 3,260 | ||
Due after ten years | 1,414 | ||
Subtotal | 6,396 | ||
Amortized Cost | 11,551 | ||
Fair Value | |||
Due in one year or less | 123 | ||
Due in years two through five | 1,587 | ||
Due in years six through ten | 3,199 | ||
Due after ten years | 1,221 | ||
Subtotal | 6,130 | ||
Fair Value | 11,306 | 9,891 | |
Available-For-Sale Fixed Maturities Proceeds, Gross Gains (Losses) From Sales And Other Than Temporary Impairments [Abstract] | |||
Proceeds from sales | 0 | $ 50 | |
Gross gains on sales | 0 | 0 | |
Gross losses on sales | 0 | (5) | |
Fixed Maturities - Credit Loss Impairments | |||
Balance, beginning of period | 0 | 0 | |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 0 | 0 | |
Balance, end of period | 0 | $ 0 | |
Corporate | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 6,281 | 5,842 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 60 | 96 | |
Gross Unrealized Losses | 317 | 276 | |
Fair Value | 6,024 | 5,662 | |
Fair Value | |||
Fair Value | 6,024 | 5,662 | |
U.S. Treasury, government and agency | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 15 | 15 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 1 | 0 | |
Fair Value | 14 | 15 | |
Fair Value | |||
Fair Value | 14 | 15 | |
States and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 51 | 50 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 8 | 7 | |
Fair Value | 43 | 43 | |
Fair Value | |||
Fair Value | 43 | 43 | |
Foreign governments | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 49 | 31 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 1 | 1 | |
Gross Unrealized Losses | 1 | 1 | |
Fair Value | 49 | 31 | |
Fair Value | |||
Fair Value | 49 | 31 | |
Residential mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,112 | 961 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 8 | 15 | |
Gross Unrealized Losses | 8 | 4 | |
Fair Value | 1,112 | 972 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 1,112 | ||
Fair Value | |||
Without single maturity date | 1,112 | ||
Fair Value | 1,112 | 972 | |
Asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3,778 | 2,956 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 34 | 32 | |
Gross Unrealized Losses | 3 | 2 | |
Fair Value | 3,809 | 2,986 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 3,778 | ||
Fair Value | |||
Without single maturity date | 3,809 | ||
Fair Value | 3,809 | 2,986 | |
Commercial mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 265 | 195 | |
Allowance for Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 2 | 1 | |
Gross Unrealized Losses | 12 | 14 | |
Fair Value | 255 | 182 | |
Amortized Cost (Less Allowance for Credit Losses) | |||
Without single maturity date | 265 | ||
Fair Value | |||
Without single maturity date | 255 | ||
Fair Value | $ 255 | $ 182 |
INVESTMENTS - Net Unrealized In
INVESTMENTS - Net Unrealized Investment (Details) - Unrealized gains (losses) on investments - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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 | $ (159) | $ (388) |
Net investment gains (losses) arising during the period | (85) | 71 |
Included in net income (loss) | 0 | 5 |
Other | 0 | 0 |
Impact of net unrealized investment gains (losses) | 0 | 0 |
Ending balance | (244) | (312) |
Unrealized Investment Gains Losses All Other | Policyholders’ Liabilities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 8 | 8 |
Net investment gains (losses) arising during the period | 0 | 0 |
Included in net income (loss) | 0 | 0 |
Other | 0 | 0 |
Impact of net unrealized investment gains (losses) | 1 | (2) |
Ending balance | 9 | 6 |
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 | (33) | (1) |
Net investment gains (losses) arising during the period | 0 | 0 |
Included in net income (loss) | 0 | 0 |
Other | (4) | 16 |
Impact of net unrealized investment gains (losses) | 18 | (16) |
Ending balance | (19) | (1) |
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 | (184) | (381) |
Net investment gains (losses) arising during the period | (85) | 71 |
Included in net income (loss) | 0 | 5 |
Other | (4) | 16 |
Impact of net unrealized investment gains (losses) | 19 | (18) |
Ending balance | (254) | (307) |
Net unrealized investment gains (losses) excluding credit losses | Net Unrealized Gains (Losses) on Investments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Ending balance | (244) | (312) |
Net unrealized investment gains (losses) excluding credit losses | Policyholders’ Liabilities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Ending balance | 9 | 6 |
Net unrealized investment gains (losses) excluding credit losses | Deferred Income Tax Asset (Liability) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Ending balance | (19) | (1) |
Net unrealized investment gains (losses) excluding credit losses | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Ending balance | $ (254) | $ (307) |
INVESTMENTS - Fixed Maturities
INVESTMENTS - Fixed Maturities Available-for-sale (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | $ 2,392 | $ 934 |
Less than 12 months, gross unrealized losses | 23 | 9 |
12 months or longer, fair value | 2,118 | 2,038 |
12 Months or Longer, gross unrealized Losses | 327 | 295 |
Total fair value | 4,510 | 2,972 |
Total gross unrealized losses | 350 | 304 |
Corporate | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 1,237 | 505 |
Less than 12 months, gross unrealized losses | 16 | 7 |
12 months or longer, fair value | 1,974 | 1,900 |
12 Months or Longer, gross unrealized Losses | 301 | 269 |
Total fair value | 3,211 | 2,405 |
Total gross unrealized losses | 317 | 276 |
U.S. Treasury, government and agency | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, gross unrealized losses | 0 | 0 |
12 months or longer, fair value | 8 | 8 |
12 Months or Longer, gross unrealized Losses | 1 | 0 |
Total fair value | 8 | 8 |
Total gross unrealized losses | 1 | 0 |
States and political subdivisions | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, gross unrealized losses | 0 | 0 |
12 months or longer, fair value | 32 | 33 |
12 Months or Longer, gross unrealized Losses | 8 | 7 |
Total fair value | 32 | 33 |
Total gross unrealized losses | 8 | 7 |
Foreign governments | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 25 | 7 |
Less than 12 months, gross unrealized losses | 1 | 1 |
12 months or longer, fair value | 4 | 4 |
12 Months or Longer, gross unrealized Losses | 0 | 0 |
Total fair value | 29 | 11 |
Total gross unrealized losses | 1 | 1 |
Residential mortgage-backed | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 396 | 103 |
Less than 12 months, gross unrealized losses | 4 | 0 |
12 months or longer, fair value | 19 | 9 |
12 Months or Longer, gross unrealized Losses | 4 | 4 |
Total fair value | 415 | 112 |
Total gross unrealized losses | 8 | 4 |
Asset-backed | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 733 | 290 |
Less than 12 months, gross unrealized losses | 2 | 1 |
12 months or longer, fair value | 21 | 23 |
12 Months or Longer, gross unrealized Losses | 1 | 1 |
Total fair value | 754 | 313 |
Total gross unrealized losses | 3 | 2 |
Commercial mortgage-backed | ||
Available-For-Sale Securities, Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 1 | 29 |
Less than 12 months, gross unrealized losses | 0 | 0 |
12 months or longer, fair value | 60 | 61 |
12 Months or Longer, gross unrealized Losses | 12 | 14 |
Total fair value | 61 | 90 |
Total gross unrealized losses | $ 12 | $ 14 |
INVESTMENTS - Mortgage Loans (D
INVESTMENTS - Mortgage Loans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 2 | |
Balance, end of period | 3 | $ 0 |
Commercial mortgages: | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 2 | 0 |
Current-period provision for expected credit losses | 1 | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Net change in allowance | 1 | 0 |
Balance, end of period | 3 | 0 |
Residential mortgages: | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 0 | 0 |
Current-period provision for expected credit losses | 0 | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Net change in allowance | 0 | 0 |
Balance, end of period | $ 0 | $ 0 |
INVESTMENTS - Credit Quality (D
INVESTMENTS - Credit Quality (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | $ 549 | $ 296 |
Total | 549 | 296 |
Non-accruing Loans | 0 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
90 Days or More | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 549 | 296 |
Commercial: | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 122 | 279 |
Fiscal year before current fiscal year | 279 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 17 | 17 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 418 | 296 |
Total | 418 | 296 |
Non-accruing Loans | 0 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Commercial: | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial: | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial: | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial: | 90 Days or More | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Commercial: | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 418 | 296 |
Commercial: | Greater than 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 17 | 17 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 17 | 17 |
Commercial: | 1.8x to 2.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 40 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 40 | 0 |
Commercial: | 1.5x to 1.8x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Commercial: | 1.2x to 1.5x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 82 | 221 |
Fiscal year before current fiscal year | 221 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 303 | 221 |
Commercial: | 1.0x to 1.2x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 58 |
Fiscal year before current fiscal year | 58 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 58 | 58 |
Commercial: | Less than 1.0x | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Commercial: | 0% - 50% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 58 |
Fiscal year before current fiscal year | 58 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 17 | 17 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 75 | 75 |
Commercial: | 50% - 70% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 122 | 221 |
Fiscal year before current fiscal year | 221 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 343 | 221 |
Commercial: | 70% - 90% | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Commercial: | 90% plus | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Residential | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Current fiscal year | 0 | |
Fiscal year before current fiscal year | 96 | |
Two years before current fiscal year | 18 | |
Three years before current fiscal year | 16 | |
Four years before current fiscal year | 1 | |
Prior | 0 | |
Total | 131 | 0 |
Total | 131 | 0 |
Non-accruing Loans | 0 | 0 |
Non-accruing Loans with No Allowance | 0 | 0 |
Interest Income on Non-accruing Loans | 0 | 0 |
Residential | Past Due | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Residential | 30-59 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Residential | 60-89 Days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Residential | 90 Days or More | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 0 | 0 |
Residential | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | $ 131 | $ 0 |
INVESTMENTS - Amortized Cost of
INVESTMENTS - Amortized Cost of Loans by Credit Quality Indicator and Origination Year (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized Cost Basis by Origination Year | ||
Total | $ 549 | $ 296 |
Residential mortgages: | ||
Amortized Cost Basis by Origination Year | ||
Current fiscal year | 0 | |
Fiscal year before current fiscal year | 96 | |
Two years before current fiscal year | 18 | |
Three years before current fiscal year | 16 | |
Four years before current fiscal year | 1 | |
Prior | 0 | |
Total | 131 | $ 0 |
Residential mortgages: | Performing | ||
Amortized Cost Basis by Origination Year | ||
Current fiscal year | 0 | |
Fiscal year before current fiscal year | 96 | |
Two years before current fiscal year | 18 | |
Three years before current fiscal year | 16 | |
Four years before current fiscal year | 1 | |
Prior | 0 | |
Total | 131 | |
Residential mortgages: | Nonperforming | ||
Amortized Cost Basis by Origination Year | ||
Current fiscal year | 0 | |
Fiscal year before current fiscal year | 0 | |
Two years before current fiscal year | 0 | |
Three years before current fiscal year | 0 | |
Four years before current fiscal year | 0 | |
Prior | 0 | |
Total | $ 0 |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 0 | $ (1) |
Unrealized and realized gains (losses) on equity securities | $ 0 | $ (1) |
INVESTMENTS - Trading Securitie
INVESTMENTS - Trading Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 0 | $ (2) |
Unrealized and realized gains (losses) on trading securities | 0 | (2) |
Net investment income (loss) from trading securities | $ 0 | $ (2) |
INVESTMENTS - Net Investment In
INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Investment Income [Line Items] | ||
Gross investment income (loss) | $ 165 | $ 30 |
Investment expenses | (4) | (1) |
Net investment income (loss) | 161 | 29 |
Fixed maturities | ||
Net Investment Income [Line Items] | ||
Gross investment income (loss) | 143 | 29 |
Mortgage loans on real estate | ||
Net Investment Income [Line Items] | ||
Gross investment income (loss) | 7 | 0 |
Policy loans | ||
Net Investment Income [Line Items] | ||
Gross investment income (loss) | 1 | 1 |
Other equity investments | ||
Net Investment Income [Line Items] | ||
Gross investment income (loss) | 1 | (1) |
Trading securities | ||
Net Investment Income [Line Items] | ||
Gross investment income (loss) | 0 | (2) |
Other investment income | ||
Net Investment Income [Line Items] | ||
Gross investment income (loss) | $ 13 | $ 3 |
INVESTMENTS - Investment Gains
INVESTMENTS - Investment Gains (Losses), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Investment Income [Line Items] | ||
Investment gains (losses), net | $ (1) | $ (5) |
Fixed maturities | ||
Net Investment Income [Line Items] | ||
Investment gains (losses), net | 0 | (5) |
Mortgage loans on real estate | ||
Net Investment Income [Line Items] | ||
Investment gains (losses), net | $ (1) | $ 0 |
DERIVATIVES - Derivatives by Ca
DERIVATIVES - Derivatives by Category (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Total derivative instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 10,146 | $ 7,729 |
Derivative Assets | 2,205 | 1,603 |
Derivative Liabilities | 13,019 | 9,751 |
Net Derivatives | (10,814) | (8,148) |
Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 10,146 | 7,729 |
Derivative Assets | 2,234 | 1,503 |
Derivative Liabilities | 2,089 | 1,358 |
Net Derivatives | 145 | 145 |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,470 | 2,277 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Net Derivatives | 0 | 0 |
Options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,957 | 4,930 |
Derivative Assets | 2,096 | 1,370 |
Derivative Liabilities | 538 | 402 |
Net Derivatives | 1,558 | 968 |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 719 | 522 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Net Derivatives | 0 | 0 |
Margin | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 138 | 133 |
Derivative Liabilities | 0 | 0 |
Net Derivatives | 138 | 133 |
Collateral | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 1,551 | 956 |
Net Derivatives | (1,551) | (956) |
Total embedded derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | (29) | 100 |
Derivative Liabilities | 10,930 | 8,393 |
Net Derivatives | (10,959) | (8,293) |
SCS, SIO, MSO and IUL indexed features | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 11,222 | 8,804 |
Net Derivatives | (11,222) | (8,804) |
Funds withheld receivable | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | (29) | 100 |
Derivative Liabilities | 0 | 0 |
Net Derivatives | (29) | 100 |
Modco receivable | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | (292) | (411) |
Net Derivatives | $ 292 | $ 411 |
DERIVATIVES - Financial Stateme
DERIVATIVES - Financial Statement Impact of Derivatives By Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | |
Derivatives, Fair Value [Line Items] | ||||||
Net derivative gains (losses) | $ (1,055) | $ (336) | $ (699) | $ 6 | $ (693) | $ (1,029) |
Total derivatives | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net derivative gains (losses) | (1,055) | 6 | ||||
Derivatives | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net derivative gains (losses) | 527 | 42 | ||||
Futures | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net derivative gains (losses) | 157 | 16 | ||||
Options | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net derivative gains (losses) | 394 | 6 | ||||
Futures | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net derivative gains (losses) | (24) | 20 | ||||
Embedded derivative | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net derivative gains (losses) | (1,582) | (36) | ||||
SCS, SIO, MSO and IUL indexed features | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net derivative gains (losses) | (2,537) | (36) | ||||
Funds withheld receivable | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net derivative gains (losses) | (1,017) | 0 | ||||
Modco receivable | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net derivative gains (losses) | $ 1,972 | $ 0 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Cash and securities collateral for derivative contract | $ 1,551 | $ 956 |
Collateral | 0 | 0 |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | ||
Derivative [Line Items] | ||
Initial margin requirements | 113 | 113 |
Us Treasury Notes Ultra Long Bonds And Euro Dollar | ||
Derivative [Line Items] | ||
Initial margin requirements | $ 26 | $ 20 |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets and Liabilities and Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative | ||
Assets: | ||
Gross Amount Recognized | $ 2,235 | $ 1,503 |
Gross Amount Offset in the Balance Sheets | 2,089 | 1,177 |
Net Amount Presented in the Balance Sheets | 146 | 326 |
Gross Amount not Offset in the Balance Sheets | 0 | (178) |
Net Amount | 146 | 148 |
Liabilities: | ||
Gross Amount Recognized | 2,089 | 1,180 |
Gross Amount Offset in the Balance Sheets | 2,089 | 1,177 |
Net Amount Presented in the Balance Sheets | 0 | 3 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 0 | 3 |
Secured lending | ||
Assets: | ||
Gross Amount Recognized | 21 | 6 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 21 | 6 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 21 | 6 |
Liabilities: | ||
Gross Amount Recognized | 21 | 6 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 21 | 6 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 21 | 6 |
Other financial assets | ||
Assets: | ||
Gross Amount Recognized | 7 | 19 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 7 | 19 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 7 | 19 |
Other invested assets | ||
Assets: | ||
Gross Amount Recognized | 2,263 | 1,528 |
Gross Amount Offset in the Balance Sheets | 2,089 | 1,177 |
Net Amount Presented in the Balance Sheets | 174 | 351 |
Gross Amount not Offset in the Balance Sheets | 0 | (178) |
Net Amount | 174 | 173 |
Other financial liabilities | ||
Liabilities: | ||
Gross Amount Recognized | 2,207 | 2,160 |
Gross Amount Offset in the Balance Sheets | 0 | 0 |
Net Amount Presented in the Balance Sheets | 2,207 | 2,160 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | 2,207 | 2,160 |
Other liabilities | ||
Liabilities: | ||
Gross Amount Recognized | 4,317 | 3,346 |
Gross Amount Offset in the Balance Sheets | 2,089 | 1,177 |
Net Amount Presented in the Balance Sheets | 2,228 | 2,169 |
Gross Amount not Offset in the Balance Sheets | 0 | 0 |
Net Amount | $ 2,228 | $ 2,169 |
DAC AND OTHER DEFERRED ASSETS_3
DAC AND OTHER DEFERRED ASSETS/LIABILITIES - Reconciliation of DAC (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Deferred Policy Acquisition Cost [Line Items] | ||
Deferred policy acquisition costs | $ 1,348 | $ 1,212 |
VUL | ||
Deferred Policy Acquisition Cost [Line Items] | ||
Deferred policy acquisition costs | 467 | 457 |
IUL | ||
Deferred Policy Acquisition Cost [Line Items] | ||
Deferred policy acquisition costs | 290 | 293 |
GMxB Core | ||
Deferred Policy Acquisition Cost [Line Items] | ||
Deferred policy acquisition costs | 144 | 119 |
Investment Edge | ||
Deferred Policy Acquisition Cost [Line Items] | ||
Deferred policy acquisition costs | 31 | 22 |
SCS | ||
Deferred Policy Acquisition Cost [Line Items] | ||
Deferred policy acquisition costs | 375 | 289 |
Other | ||
Deferred Policy Acquisition Cost [Line Items] | ||
Deferred policy acquisition costs | $ 41 | $ 32 |
DAC AND OTHER DEFERRED ASSETS_4
DAC AND OTHER DEFERRED ASSETS/LIABILITIES - DAC Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | $ 1,212 | |
Balance, end of period | 1,348 | |
VUL | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 457 | |
Balance, end of period | 467 | |
IUL | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 293 | |
Balance, end of period | 290 | |
GMxB Core | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 119 | |
Balance, end of period | 144 | |
IE | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 22 | |
Balance, end of period | 31 | |
SCS | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 289 | |
Balance, end of period | 375 | |
Corporate Segment | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 1,180 | $ 760 |
Capitalization | 154 | 76 |
Amortization | (27) | (12) |
Balance, end of period | 1,307 | 824 |
Corporate Segment | VUL | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 457 | 410 |
Capitalization | 16 | 17 |
Amortization | (6) | (6) |
Balance, end of period | 467 | 421 |
Corporate Segment | IUL | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 293 | 296 |
Capitalization | 2 | 3 |
Amortization | (5) | (4) |
Balance, end of period | 290 | 295 |
Corporate Segment | GMxB Core | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 119 | 40 |
Capitalization | 28 | 9 |
Amortization | (3) | (1) |
Balance, end of period | 144 | 48 |
Corporate Segment | IE | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 22 | 1 |
Capitalization | 10 | 5 |
Amortization | (1) | 0 |
Balance, end of period | 31 | 6 |
Corporate Segment | SCS | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 289 | 13 |
Capitalization | 98 | 42 |
Amortization | (12) | (1) |
Balance, end of period | $ 375 | $ 54 |
DAC AND OTHER DEFERRED ASSETS_5
DAC AND OTHER DEFERRED ASSETS/LIABILITIES - DAC Credits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
VUL | ||
Changes in unearned revenue liability | ||
Balance, beginning of the period | $ 203 | $ 159 |
Capitalization | 15 | 13 |
Amortization | (3) | (2) |
Balance, end of the period | 215 | 170 |
IUL | ||
Changes in unearned revenue liability | ||
Balance, beginning of the period | 210 | 157 |
Capitalization | 14 | 17 |
Amortization | (3) | (3) |
Balance, end of the period | $ 221 | $ 171 |
FAIR VALUE DISCLOSURES - Schedu
FAIR VALUE DISCLOSURES - Schedules Of Assets And Liabilities Measured On Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Fixed maturities available for sale, at fair value | $ 11,306 | $ 9,891 |
U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 14 | 15 |
States and political subdivisions | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 43 | 43 |
Foreign governments | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 49 | 31 |
Residential mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,112 | 972 |
Asset-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 3,809 | 2,986 |
Commercial mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 255 | 182 |
Fair Value, Recurring | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 11,306 | 9,891 |
Other equity investments | 20 | 19 |
Trading securities | 0 | 0 |
Other invested assets: | 1,561 | 968 |
Cash equivalents | 3,174 | 1,654 |
Funds withheld receivable | (29) | 100 |
Purchased market risk benefits | 7 | 9 |
Assets for market risk benefits | 34 | 24 |
Separate Accounts assets | 6,629 | 5,754 |
Total Assets | 22,702 | 18,419 |
Liabilities: | ||
Liabilities for market risk benefits | 6,383 | 7,333 |
Total Liabilities | 17,313 | 15,726 |
Fair Value, Recurring | Corporate | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 6,024 | 5,662 |
Fair Value, Recurring | U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 14 | 15 |
Fair Value, Recurring | States and political subdivisions | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 43 | 43 |
Fair Value, Recurring | Foreign governments | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 49 | 31 |
Fair Value, Recurring | Residential mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,112 | 972 |
Fair Value, Recurring | Asset-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 3,809 | 2,986 |
Fair Value, Recurring | Commercial mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 255 | 182 |
Fair Value, Recurring | Short-term investments | ||
Assets: | ||
Other invested assets: | 3 | |
Fair Value, Recurring | Options | ||
Assets: | ||
Other invested assets: | 1,558 | 968 |
Fair Value, Recurring | SCS, MSO and IUL indexed features’ liability | ||
Liabilities: | ||
Guarantees | 11,222 | 8,804 |
Fair Value, Recurring | Modco receivable | ||
Liabilities: | ||
Guarantees | (292) | (411) |
Fair Value, Recurring | Level 1 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Other equity investments | 0 | 0 |
Trading securities | 0 | |
Other invested assets: | 0 | 0 |
Cash equivalents | 3,174 | 1,654 |
Funds withheld receivable | 0 | 0 |
Purchased market risk benefits | 0 | 0 |
Assets for market risk benefits | 0 | 0 |
Separate Accounts assets | 6,622 | 5,747 |
Total Assets | 9,796 | 7,401 |
Liabilities: | ||
Liabilities for market risk benefits | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Corporate | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | States and political subdivisions | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Foreign governments | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Residential mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Asset-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Commercial mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 1 | Short-term investments | ||
Assets: | ||
Other invested assets: | 0 | |
Fair Value, Recurring | Level 1 | Options | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Fair Value, Recurring | Level 1 | SCS, MSO and IUL indexed features’ liability | ||
Liabilities: | ||
Guarantees | 0 | 0 |
Fair Value, Recurring | Level 1 | Modco receivable | ||
Liabilities: | ||
Guarantees | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 11,167 | 9,779 |
Other equity investments | 20 | 19 |
Trading securities | 0 | |
Other invested assets: | 1,561 | 968 |
Cash equivalents | 0 | 0 |
Funds withheld receivable | 0 | 0 |
Purchased market risk benefits | 0 | 0 |
Assets for market risk benefits | 0 | 0 |
Separate Accounts assets | 7 | 7 |
Total Assets | 12,755 | 10,773 |
Liabilities: | ||
Liabilities for market risk benefits | 0 | 0 |
Total Liabilities | 11,222 | 8,804 |
Fair Value, Recurring | Level 2 | Corporate | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 5,924 | 5,575 |
Fair Value, Recurring | Level 2 | U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 14 | 15 |
Fair Value, Recurring | Level 2 | States and political subdivisions | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 43 | 43 |
Fair Value, Recurring | Level 2 | Foreign governments | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 49 | 31 |
Fair Value, Recurring | Level 2 | Residential mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1,112 | 972 |
Fair Value, Recurring | Level 2 | Asset-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 3,771 | 2,962 |
Fair Value, Recurring | Level 2 | Commercial mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 254 | 181 |
Fair Value, Recurring | Level 2 | Short-term investments | ||
Assets: | ||
Other invested assets: | 3 | |
Fair Value, Recurring | Level 2 | Options | ||
Assets: | ||
Other invested assets: | 1,558 | 968 |
Fair Value, Recurring | Level 2 | SCS, MSO and IUL indexed features’ liability | ||
Liabilities: | ||
Guarantees | 11,222 | 8,804 |
Fair Value, Recurring | Level 2 | Modco receivable | ||
Liabilities: | ||
Guarantees | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 139 | 112 |
Other equity investments | 0 | 0 |
Trading securities | 0 | |
Other invested assets: | 0 | 0 |
Cash equivalents | 0 | 0 |
Funds withheld receivable | (29) | 100 |
Purchased market risk benefits | 7 | 9 |
Assets for market risk benefits | 34 | 24 |
Separate Accounts assets | 0 | 0 |
Total Assets | 151 | 245 |
Liabilities: | ||
Liabilities for market risk benefits | 6,383 | 7,333 |
Total Liabilities | 6,091 | 6,922 |
Fair Value, Recurring | Level 3 | Corporate | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 100 | 87 |
Fair Value, Recurring | Level 3 | U.S. Treasury, government and agency | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 3 | States and political subdivisions | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 3 | Foreign governments | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 3 | Residential mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 0 | 0 |
Fair Value, Recurring | Level 3 | Asset-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 38 | 24 |
Fair Value, Recurring | Level 3 | Commercial mortgage-backed | ||
Assets: | ||
Fixed maturities available for sale, at fair value | 1 | 1 |
Fair Value, Recurring | Level 3 | Short-term investments | ||
Assets: | ||
Other invested assets: | 0 | |
Fair Value, Recurring | Level 3 | Options | ||
Assets: | ||
Other invested assets: | 0 | 0 |
Fair Value, Recurring | Level 3 | SCS, MSO and IUL indexed features’ liability | ||
Liabilities: | ||
Guarantees | 0 | 0 |
Fair Value, Recurring | Level 3 | Modco receivable | ||
Liabilities: | ||
Guarantees | (292) | (411) |
Fair Value, Recurring | NAV | ||
Assets: | ||
Separate Accounts assets | $ 201 | $ 1 |
FAIR VALUE DISCLOSURES - Narrat
FAIR VALUE DISCLOSURES - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Fair Value Inputs, Assets Quantitative Information [Line Items] | |||
AFS fixed maturities transferred from Level 3 to Level 2 | $ 0 | $ 10,000,000 | |
AFS fixed maturities transferred from Level 2 to Level 3 | $ 0 | $ 0 | |
Percentage of total equity representing AFS fixed maturities transferred | 0% | 2.70% | |
Fair Value, Nonrecurring | Level 3 | |||
Fair Value Inputs, Assets Quantitative Information [Line Items] | |||
Investments, fair value | $ 80,000,000 | $ 73,000,000 |
FAIR VALUE DISCLOSURES - Fair V
FAIR VALUE DISCLOSURES - Fair Value Measurement Reconciliation For All Levels (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Realized and unrealized gains (losses), included in Net income (loss) as: | ||
Net derivative gains (losses) | $ (1,000,000) | $ (5,000,000) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (10,000,000) |
Level 3 | Corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 87,000,000 | 18,000,000 |
Realized and unrealized gains (losses), included in Net income (loss) as: | ||
Investment gains (losses), reported in net investment income | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 15,000,000 | 29,000,000 |
Sales | (2,000,000) | 0 |
Change in fair value of funds withheld assets | 0 | |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (10,000,000) |
Closing Balance | 100,000,000 | 37,000,000 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 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 |
Level 3 | Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 24,000,000 | 0 |
Realized and unrealized gains (losses), included in Net income (loss) as: | ||
Investment gains (losses), reported in net investment income | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 25,000,000 | 0 |
Sales | (11,000,000) | 0 |
Change in fair value of funds withheld assets | ||
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | 38,000,000 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 |
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 |
Level 3 | CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,000,000 | 0 |
Realized and unrealized gains (losses), included in Net income (loss) as: | ||
Investment gains (losses), reported in net investment income | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Change in fair value of funds withheld assets | 0 | |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | 1,000,000 | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 |
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 |
Level 3 | Funds Withheld Receivable | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 100,000,000 | 0 |
Realized and unrealized gains (losses), included in Net income (loss) as: | ||
Investment gains (losses), reported in net investment income | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Change in fair value of funds withheld assets | (129,000,000) | |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | (29,000,000) | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 |
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 |
Level 3 | Modco Receivable | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | (411,000,000) | 0 |
Realized and unrealized gains (losses), included in Net income (loss) as: | ||
Investment gains (losses), reported in net investment income | 0 | 0 |
Net derivative gains (losses) | 0 | 0 |
Total realized and unrealized gains (losses) | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Change in fair value of funds withheld assets | 119,000,000 | |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Closing Balance | (292,000,000) | 0 |
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period | 0 | 0 |
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 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information About Level 3 (Details) $ in Millions | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liability for market risk benefits | $ 6,383 | $ 7,333 | $ 6,712 | $ 7,367 | $ 16 |
Assets for market risk benefits | 34 | 24 | $ 22 | $ 24 | $ 15 |
Level 3 | Discounted cash flow | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value, other equity investments, AFS | 0 | ||||
Level 3 | Corporate | Matrix pricing model | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value, fixed maturities AFS | $ 42 | $ 39 | |||
Level 3 | Corporate | Matrix pricing model | Spread over benchmark | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0.0095 | 0.0095 | |||
Level 3 | Corporate | Matrix pricing model | Spread over benchmark | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0.0270 | 0.0120 | |||
Level 3 | Corporate | Matrix pricing model | Spread over benchmark | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0.0132 | 0.0118 | |||
Level 3 | Corporate | Market comparable companies | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value, fixed maturities AFS | $ 17 | ||||
Level 3 | Corporate | Market comparable companies | EBITDA multiple | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 3.3 | ||||
Level 3 | Corporate | Market comparable companies | EBITDA multiple | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 30.5 | ||||
Level 3 | Corporate | Market comparable companies | EBITDA multiple | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0 | ||||
Level 3 | Corporate | Market comparable companies | Discount rate | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0 | ||||
Level 3 | Corporate | Market comparable companies | Discount rate | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0.192 | ||||
Level 3 | Corporate | Market comparable companies | Discount rate | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0 | ||||
Level 3 | Corporate | Market comparable companies | Cash flow multiples | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0.8 | ||||
Level 3 | Corporate | Market comparable companies | Cash flow multiples | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 9.3 | ||||
Level 3 | Corporate | Market comparable companies | Cash flow multiples | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0 | ||||
Level 3 | Corporate | Market comparable companies | Loan to Value | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0 | ||||
Level 3 | Corporate | Market comparable companies | Loan to Value | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0.614 | ||||
Level 3 | Corporate | Market comparable companies | Loan to Value | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 0 | ||||
Level 3 | Other equity investments | Discounted cash flow | Earnings Multiple | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 3.9 | ||||
Level 3 | Other equity investments | Discounted cash flow | Earnings Multiple | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 7 | ||||
Level 3 | Other equity investments | Discounted cash flow | Earnings Multiple | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Percentage measurement input of equity securities | 5.9 | ||||
Level 3 | MRB | Discounted cash flow | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value, fixed maturities AFS | $ 7 | $ 9 | |||
Fair value, liabilities | $ 6,349 | $ 7,309 | |||
Level 3 | MRB | Discounted cash flow | Non-performance Risk | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0022 | 0.0023 | |||
Level 3 | MRB | Discounted cash flow | Non-performance Risk | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0117 | 0.0118 | |||
Level 3 | MRB | Discounted cash flow | Non-performance Risk | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0022 | 0.0023 | |||
Level 3 | MRB | Discounted cash flow | Lapse rate | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0021 | 0.0021 | |||
Level 3 | MRB | Discounted cash flow | Lapse rate | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.2937 | 0.2937 | |||
Level 3 | MRB | Discounted cash flow | Lapse rate | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0397 | 0.0399 | |||
Level 3 | MRB | Discounted cash flow | Withdrawal rate | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0 | 0 | |||
Level 3 | MRB | Discounted cash flow | Withdrawal rate | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.1497 | 0.1497 | |||
Level 3 | MRB | Discounted cash flow | Withdrawal rate | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0069 | 0.0067 | |||
Level 3 | MRB | Discounted cash flow | Annuitization rate | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0004 | 0.0004 | |||
Level 3 | MRB | Discounted cash flow | Annuitization rate | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 1 | 1 | |||
Level 3 | MRB | Discounted cash flow | Annuitization rate | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0309 | 0.0304 | |||
Level 3 | MRB | Discounted cash flow | Mortality rates | Age 0-40 | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0001 | 0.0001 | |||
Level 3 | MRB | Discounted cash flow | Mortality rates | Age 0-40 | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0018 | 0.0018 | |||
Level 3 | MRB | Discounted cash flow | Mortality rates | Age 0-40 | Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0265 | 0.0262 | |||
Level 3 | MRB | Discounted cash flow | Mortality rates | Age 41-60 | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0007 | 0.0007 | |||
Level 3 | MRB | Discounted cash flow | Mortality rates | Age 41-60 | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0053 | 0.0053 | |||
Level 3 | MRB | Discounted cash flow | Mortality rates | Age 61-115 | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.0033 | 0.0033 | |||
Level 3 | MRB | Discounted cash flow | Mortality rates | Age 61-115 | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Measurement input of servicing liability | 0.4200 | 0.4200 |
FAIR VALUE DISCLOSURES - Carryi
FAIR VALUE DISCLOSURES - Carrying Values And Fair Values Of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 |
Consolidated Amounts [Abstract] | ||||
Policy loans | $ 278 | $ 268 | ||
Funds withheld receivable | 9,755 | 10,603 | $ 10,677 | $ 10,654 |
Policyholders’ liabilities: Investment contracts | 28,256 | 24,963 | $ 20,889 | |
Separate Accounts liabilities | 6,830 | 5,754 | ||
Carrying Value | ||||
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | 546 | 294 | ||
Policy loans | 278 | 268 | ||
Funds withheld receivable | 9,784 | 10,503 | ||
Modco receivable | 31,045 | 29,912 | ||
Policyholders’ liabilities: Investment contracts | 106 | 110 | ||
Separate Accounts liabilities | 434 | 372 | ||
Fair Value | ||||
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | 414 | 297 | ||
Policy loans | 281 | 275 | ||
Funds withheld receivable | 9,784 | 10,503 | ||
Modco receivable | 31,045 | 29,912 | ||
Policyholders’ liabilities: Investment contracts | 103 | 108 | ||
Separate Accounts liabilities | 434 | 372 | ||
Fair Value | Level 1 | ||||
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Funds withheld receivable | 0 | 0 | ||
Modco receivable | 0 | 0 | ||
Policyholders’ liabilities: Investment contracts | 0 | 0 | ||
Separate Accounts liabilities | 0 | 0 | ||
Fair Value | Level 2 | ||||
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Funds withheld receivable | 0 | 0 | ||
Modco receivable | 0 | 0 | ||
Policyholders’ liabilities: Investment contracts | 0 | 0 | ||
Separate Accounts liabilities | 0 | 0 | ||
Fair Value | Level 3 | ||||
Consolidated Amounts [Abstract] | ||||
Mortgage loans on real estate | 414 | 297 | ||
Policy loans | 281 | 275 | ||
Funds withheld receivable | 9,784 | 10,503 | ||
Modco receivable | 31,045 | 29,912 | ||
Policyholders’ liabilities: Investment contracts | 103 | 108 | ||
Separate Accounts liabilities | $ 434 | $ 372 |
LIABILITIES FOR FUTURE POLICY_3
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Policyholder Account Balance And Liability For Unpaid Claims And Claims Adjustment Expense (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits and other policyholders' liabilities | $ 1,801 | $ 1,653 | $ 1,450 | $ 1,298 |
All Future Policyholder Benefits | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits and other policyholders' liabilities | 1,801 | 1,653 | ||
Subtotal | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits and other policyholders' liabilities | 1,165 | 1,049 | ||
Payout-Legacy | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits and other policyholders' liabilities | 447 | 340 | ||
UL | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits and other policyholders' liabilities | 347 | 344 | ||
Other | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits and other policyholders' liabilities | 371 | 365 | ||
Other policy funds | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits and other policyholders' liabilities | 636 | $ 604 | ||
Unearned revenue liability | 436 | |||
URL | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits and other policyholders' liabilities | $ 439 |
LIABILITIES FOR FUTURE POLICY_4
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Policyholder Account Balance (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Net liability for additional liability | $ 1,801 | $ 1,653 | $ 1,450 | $ 1,298 | ||
Payout-Legacy | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Net liability for additional liability | 447 | 340 | ||||
Payout-Legacy | Legacy Segment | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance, beginning of period | 340 | $ 0 | ||||
Beginning balance of original discount rate | 333 | 0 | ||||
Effect of changes in cash flow assumptions | 0 | $ 0 | ||||
Effect of actual variances from expected experience | 0 | 0 | ||||
Adjusted beginning of period balance | $ 333 | $ 0 | ||||
Issuances | 119 | 0 | ||||
Interest accrual | 4 | 0 | ||||
Benefit payments | (8) | 0 | ||||
Ending balance at original discount rate | 448 | 0 | ||||
Effect of changes in discount rate assumptions | (1) | 0 | ||||
Balance, end of period | 447 | 0 | ||||
Net liability for additional liability | 447 | 0 | ||||
Less: Reinsurance recoverable | 0 | 0 | ||||
Net liability for additional liability, after reinsurance recoverable | $ 447 | $ 0 | ||||
Weighted-average duration of additional liability - death benefit (years) | 7 years 8 months 12 days |
LIABILITIES FOR FUTURE POLICY_5
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Schedule of Liability for Future Policy Benefits, Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefits and Expenses (Details) - Payout-Legacy - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Expected future benefit payments and expenses (undiscounted) | $ 686 | $ 508 |
Expected future gross premiums (undiscounted) | 0 | 0 |
Expected future benefit payments and expenses (discounted) | 447 | 340 |
Expected future gross premiums (discounted) | $ 0 | $ 0 |
LIABILITIES FOR FUTURE POLICY_6
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Schedule of Liability for Future Policy Benefits, Revenue and Interest Accretion (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premium | $ 27 | $ 0 |
Interest Accretion | 6 | 0 |
Payout-Legacy | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premium | 27 | 0 |
Interest Accretion | $ 6 | $ 0 |
LIABILITIES FOR FUTURE POLICY_7
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Schedule of Liability for Future Policy Benefits, Weighted Average Interest Rates (Details) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 4.50% | 5.50% | |
Payout-Legacy | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Interest accretion rate | 5.10% | 5.30% | |
Current discount rate | 5.20% | 5% |
LIABILITIES FOR FUTURE POLICY_8
LIABILITIES FOR FUTURE POLICYHOLDER BENEFITS - Balances of and Changes in Additional Liabilities Related to Insurance Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Net liability for additional liability | $ 1,801 | $ 1,653 | $ 1,450 | $ 1,298 | ||
Weighted Average Interest Rate | 4.50% | 5.50% | ||||
Assessments | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Revenue and Interest Accretion | $ 124 | $ 5 | ||||
Interest Accretion | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Revenue and Interest Accretion | 4 | $ 0 | ||||
UL | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Net liability for additional liability | $ 347 | 344 | ||||
Weighted Average Interest Rate | 4.50% | 5.50% | ||||
UL | Assessments | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Revenue and Interest Accretion | $ 124 | $ 5 | ||||
UL | Interest Accretion | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Revenue and Interest Accretion | 4 | 0 | ||||
Life Insurance & Employee Benefits Products | UL | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance, beginning of period | 344 | |||||
Beginning balance before AOCI adjustments | 344 | |||||
Effect of changes in interest rate and cash flow assumptions and model changes | 0 | |||||
Effect of actual variances from expected experience | (1) | |||||
Adjusted beginning of period balance | $ 343 | |||||
Issuances | 0 | |||||
Interest accrual | 4 | |||||
Net assessments collected | 4 | |||||
Benefit payments | (4) | |||||
Ending balance before shadow reserve adjustments | 347 | |||||
Effect of shadow reserve adjustment | 0 | |||||
Balance, end of period | 347 | |||||
Net liability for additional liability | 347 | |||||
Effect of reserve adjustment recorded in AOCI | 0 | |||||
Net liability for additional liability, after reinsurance recoverable | $ 347 | |||||
Weighted-average duration of additional liability - death benefit (years) | 17 years 6 months | |||||
Life Insurance & Employee Benefits Products | Universal Life | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance, beginning of period | 58 | |||||
Beginning balance before AOCI adjustments | 66 | |||||
Effect of changes in interest rate and cash flow assumptions and model changes | $ 0 | |||||
Effect of actual variances from expected experience | (1) | |||||
Adjusted beginning of period balance | $ 65 | |||||
Issuances | 0 | |||||
Interest accrual | 1 | |||||
Net assessments collected | 2 | |||||
Benefit payments | 0 | |||||
Ending balance before shadow reserve adjustments | 68 | |||||
Effect of shadow reserve adjustment | (6) | |||||
Balance, end of period | 62 | |||||
Net liability for additional liability | 62 | |||||
Effect of reserve adjustment recorded in AOCI | 0 | |||||
Net liability for additional liability, after reinsurance recoverable | $ 62 | |||||
Weighted-average duration of additional liability - death benefit (years) | 32 years 3 months 18 days |
MARKET RISK BENEFITS - Changes
MARKET RISK BENEFITS - Changes in the Market Risk Benefits for Deferred Variable Annuities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Market Risk Benefit [Roll Forward] | ||
Benefit payments | $ 190 | $ 0 |
GMxB Core | Individual Retirement | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | 1,191 | (6) |
Balance BOP before changes in the instrument specific credit risk | 934 | (5) |
Model changes and effect of changes in cash flow assumptions | 0 | 0 |
Actual market movement effect | (150) | (5) |
Interest accrual | 9 | 0 |
Attributed fees accrued | 85 | 1 |
Benefit payments | (10) | 0 |
Actual policyholder behavior different from expected behavior | 2 | 2 |
Changes in future economic assumptions | (213) | 3 |
Issuances | (2) | 0 |
Balance EOP before changes in the instrument-specific credit risk | 655 | (4) |
Changes in the instrument-specific credit risk | 232 | (7) |
Balance, end of period | $ 887 | $ (11) |
Weighted-average age of policyholders (years) | 64 years 10 months 24 days | 61 years 3 months 18 days |
Net amount at risk | $ 2,731 | $ 9 |
GMxB Legacy | Individual Retirement | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | 6,082 | 0 |
Balance BOP before changes in the instrument specific credit risk | 5,695 | 0 |
Model changes and effect of changes in cash flow assumptions | 0 | 0 |
Actual market movement effect | (333) | 0 |
Interest accrual | 58 | 0 |
Attributed fees accrued | 73 | 0 |
Benefit payments | (145) | 0 |
Actual policyholder behavior different from expected behavior | (3) | 0 |
Changes in future economic assumptions | (408) | 0 |
Issuances | 163 | 0 |
Balance EOP before changes in the instrument-specific credit risk | 5,100 | 0 |
Changes in the instrument-specific credit risk | 350 | 0 |
Balance, end of period | $ 5,450 | 0 |
Weighted-average age of policyholders (years) | 73 years 10 months 24 days | |
Net amount at risk | $ 9,405 | $ 0 |
MARKET RISK BENEFITS - Reconcil
MARKET RISK BENEFITS - Reconciles Market Risk Benefits (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 |
Market Risk Benefit [Line Items] | |||||
MRB Asset | $ (34) | $ (24) | $ (22) | $ (24) | $ (15) |
MRB Liability | 6,383 | 7,333 | $ 6,712 | $ 7,367 | $ 16 |
Individual Retirement | |||||
Market Risk Benefit [Line Items] | |||||
MRB Asset | (34) | (24) | |||
MRB Liability | 6,383 | 7,333 | |||
Net MRB | 6,349 | 7,309 | |||
Purchased MRB | (7) | (9) | |||
Net amount at risk | 6,342 | 7,300 | |||
Individual Retirement | GMxB Core | |||||
Market Risk Benefit [Line Items] | |||||
MRB Asset | (25) | (14) | |||
MRB Liability | 912 | 1,205 | |||
Net MRB | 887 | 1,191 | |||
Purchased MRB | 0 | 0 | |||
Net amount at risk | 887 | 1,191 | |||
Individual Retirement | GMxB Legacy | |||||
Market Risk Benefit [Line Items] | |||||
MRB Asset | 0 | 0 | |||
MRB Liability | 5,450 | 6,082 | |||
Net MRB | 5,450 | 6,082 | |||
Purchased MRB | 0 | 0 | |||
Net amount at risk | 5,450 | 6,082 | |||
Individual Retirement | Other | |||||
Market Risk Benefit [Line Items] | |||||
MRB Asset | (9) | (10) | |||
MRB Liability | 21 | 46 | |||
Net MRB | 12 | 36 | |||
Purchased MRB | (7) | (9) | |||
Net amount at risk | $ 5 | $ 27 |
POLICYHOLDER ACCOUNT BALANCES -
POLICYHOLDER ACCOUNT BALANCES - Reconciliation of Policyholders Account Balances to Policyholders' Account Balance Liability (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Total | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Policyholder account balance | $ 28,256 | $ 24,963 |
UL | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Policyholder account balance | 1,180 | 1,186 |
IUL | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Policyholder account balance | 2,460 | 2,431 |
EI | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Policyholder account balance | 1,893 | 1,964 |
EG | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Policyholder account balance | 6,544 | 6,619 |
SCS | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Policyholder account balance | 44,594 | 40,353 |
Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Policyholder account balance | (28,415) | $ (27,590) |
Modco Reinsurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Policyholder account balance | $ (31,300) |
POLICYHOLDER ACCOUNT BALANCES_2
POLICYHOLDER ACCOUNT BALANCES - Balances and Changes in Policyholders’ Account Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Policyholder Account Balance [Roll Forward] | ||
Interest credited | $ 262 | $ 23 |
UL | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 1,186 | |
Balance, end of the period | 1,180 | |
UL | Protection Solutions | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 1,186 | |
Issuances | 0 | |
Premiums received | 115 | |
Policy charges | (121) | |
Surrenders and withdrawals | (4) | |
Benefit payments | (5) | |
Net transfers from (to) separate account | 0 | |
Interest credited | 9 | |
Balance, end of the period | $ 1,180 | |
Weighted-average crediting rate (years) | 3.56% | |
Net amount at risk | $ 15,806 | |
Cash surrender value | 1,034 | |
IUL | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 2,431 | |
Balance, end of the period | 2,460 | |
IUL | Protection Solutions | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 2,431 | 1,962 |
Issuances | 0 | 0 |
Premiums received | 61 | 58 |
Policy charges | (49) | (44) |
Surrenders and withdrawals | (31) | (7) |
Benefit payments | (5) | (3) |
Net transfers from (to) separate account | 0 | 0 |
Interest credited | 53 | 30 |
Other | 0 | |
Balance, end of the period | $ 2,460 | $ 1,996 |
Weighted-average crediting rate (years) | 2.46% | 2.23% |
Net amount at risk | $ 18,940 | $ 18,004 |
Cash surrender value | 1,872 | 1,505 |
EI | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 1,964 | |
Balance, end of the period | 1,893 | |
EI | Individual Retirement | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 1,964 | |
Issuances | 0 | |
Premiums received | 3 | |
Policy charges | 0 | |
Surrenders and withdrawals | (78) | |
Benefit payments | (6) | |
Net transfers from (to) separate account | (4) | |
Interest credited | 14 | |
Balance, end of the period | $ 1,893 | |
Weighted-average crediting rate (years) | 2.89% | |
Net amount at risk | $ 94 | |
Cash surrender value | 1,889 | |
EG | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 6,619 | |
Balance, end of the period | 6,544 | |
EG | Group Retirement | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 6,619 | |
Issuances | 0 | |
Premiums received | 78 | |
Policy charges | (1) | |
Surrenders and withdrawals | (249) | |
Benefit payments | (4) | |
Net transfers from (to) separate account | 43 | |
Interest credited | 58 | |
Balance, end of the period | $ 6,544 | |
Weighted-average crediting rate (years) | 2.37% | |
Net amount at risk | $ 4 | |
Cash surrender value | 6,496 | |
VUL | Protection Solutions | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 655 | |
Issuances | 0 | |
Premiums received | 5 | |
Policy charges | (9) | |
Surrenders and withdrawals | 0 | |
Benefit payments | (2) | |
Net transfers from (to) separate account | 11 | |
Interest credited | 9 | |
Other | 0 | |
Balance, end of the period | $ 669 | |
Weighted-average crediting rate (years) | 3.52% | |
Net amount at risk | $ 30,589 | |
Cash surrender value | 535 | |
GMxB Core | Individual Retirement | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 27 | |
Issuances | 0 | |
Premiums received | 29 | |
Policy charges | (2) | |
Surrenders and withdrawals | 0 | |
Benefit payments | 0 | |
Net transfers from (to) separate account | (26) | |
Interest credited | 0 | |
Other | 0 | |
Balance, end of the period | $ 28 | |
Weighted-average crediting rate (years) | 1% | |
Net amount at risk | $ 9 | |
Cash surrender value | 32 | |
IE | Individual Retirement | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 7 | |
Issuances | 0 | |
Premiums received | 0 | |
Policy charges | 0 | |
Surrenders and withdrawals | 0 | |
Benefit payments | 0 | |
Net transfers from (to) separate account | 77 | |
Interest credited | 1 | |
Other | 0 | |
Balance, end of the period | $ 85 | |
Weighted-average crediting rate (years) | 1% | |
Net amount at risk | $ 0 | |
Cash surrender value | 81 | |
SCS | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 40,353 | |
Balance, end of the period | 44,594 | |
SCS | Group Retirement | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 40,353 | 242 |
Issuances | 0 | 0 |
Premiums received | 1 | 0 |
Policy charges | (3) | 0 |
Surrenders and withdrawals | (777) | (1) |
Benefit payments | (62) | 0 |
Net transfers from (to) separate account | 2,483 | 1,031 |
Interest credited | 2,599 | 24 |
Other | 0 | |
Balance, end of the period | $ 44,594 | $ 1,296 |
Weighted-average crediting rate (years) | 0% | 1% |
Net amount at risk | $ 0 | $ 0 |
Cash surrender value | $ 41,487 | 1,208 |
Reinsured | Group Retirement | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 819 | |
Issuances | 0 | |
Premiums received | 6 | |
Policy charges | (9) | |
Surrenders and withdrawals | (23) | |
Benefit payments | (2) | |
Net transfers from (to) separate account | 0 | |
Interest credited | 8 | |
Other | 1 | |
Balance, end of the period | $ 800 | |
Weighted-average crediting rate (years) | 4.12% | |
Net amount at risk | $ 4,011 | |
Cash surrender value | $ 799 |
POLICYHOLDER ACCOUNT BALANCES_3
POLICYHOLDER ACCOUNT BALANCES - Guaranteed Minimum Interest Rates (Details) $ in Millions | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
1 Basis Point - 50 Basis Points Above | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0001 | 0.0001 |
1 Basis Point - 50 Basis Points Above | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0050 | 0.0050 |
51 Basis Points - 150 Basis Points Above | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0051 | 0.0051 |
51 Basis Points - 150 Basis Points Above | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 |
Greater Than 150 Basis Points Above | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 |
Universal Life | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 1,181 | $ 1,185 |
Universal Life | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 0 | $ 0 |
Universal Life | 0.00%-1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
Universal Life | 0.00%-1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
Universal Life | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 695 | $ 693 |
Universal Life | 1.51%-2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
Universal Life | 1.51%-2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Universal Life | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 486 | $ 492 |
Universal Life | Greater than 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Universal Life | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 31 | $ 47 |
Universal Life | At Guaranteed Minimum | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Universal Life | At Guaranteed Minimum | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 31 | 47 |
Universal Life | At Guaranteed Minimum | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Universal Life | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 509 | 501 |
Universal Life | 1 Basis Point - 50 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Universal Life | 1 Basis Point - 50 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 23 | 9 |
Universal Life | 1 Basis Point - 50 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 486 | 492 |
Universal Life | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 300 | 339 |
Universal Life | 51 Basis Points - 150 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Universal Life | 51 Basis Points - 150 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 300 | 339 |
Universal Life | 51 Basis Points - 150 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Universal Life | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 341 | 298 |
Universal Life | Greater Than 150 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Universal Life | Greater Than 150 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 341 | 298 |
Universal Life | Greater Than 150 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Indexed Universal Life | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 2,344 | 2,331 |
Indexed Universal Life | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 0 | $ 0 |
Indexed Universal Life | 0.00%-1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
Indexed Universal Life | 0.00%-1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
Indexed Universal Life | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 2,344 | $ 2,331 |
Indexed Universal Life | 1.51%-2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
Indexed Universal Life | 1.51%-2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Indexed Universal Life | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 0 | $ 0 |
Indexed Universal Life | Greater than 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
Indexed Universal Life | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 1,116 | $ 1,112 |
Indexed Universal Life | At Guaranteed Minimum | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Indexed Universal Life | At Guaranteed Minimum | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 1,116 | 1,112 |
Indexed Universal Life | At Guaranteed Minimum | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Indexed Universal Life | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 152 | 218 |
Indexed Universal Life | 1 Basis Point - 50 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Indexed Universal Life | 1 Basis Point - 50 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 152 | 218 |
Indexed Universal Life | 1 Basis Point - 50 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Indexed Universal Life | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 1,076 | 1,001 |
Indexed Universal Life | 51 Basis Points - 150 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Indexed Universal Life | 51 Basis Points - 150 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 1,076 | 1,001 |
Indexed Universal Life | 51 Basis Points - 150 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Indexed Universal Life | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Indexed Universal Life | Greater Than 150 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Indexed Universal Life | Greater Than 150 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
Indexed Universal Life | Greater Than 150 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Individual | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 1,893 | 1,964 |
EQUI-VEST Individual | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 246 | $ 252 |
EQUI-VEST Individual | 0.00%-1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
EQUI-VEST Individual | 0.00%-1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
EQUI-VEST Individual | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 39 | $ 42 |
EQUI-VEST Individual | 1.51%-2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
EQUI-VEST Individual | 1.51%-2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
EQUI-VEST Individual | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 1,608 | $ 1,670 |
EQUI-VEST Individual | Greater than 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
EQUI-VEST Individual | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 1,692 | $ 1,759 |
EQUI-VEST Individual | At Guaranteed Minimum | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 45 | 47 |
EQUI-VEST Individual | At Guaranteed Minimum | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 39 | 42 |
EQUI-VEST Individual | At Guaranteed Minimum | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 1,608 | 1,670 |
EQUI-VEST Individual | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 201 | 205 |
EQUI-VEST Individual | 1 Basis Point - 50 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 201 | 205 |
EQUI-VEST Individual | 1 Basis Point - 50 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Individual | 1 Basis Point - 50 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Individual | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Individual | 51 Basis Points - 150 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Individual | 51 Basis Points - 150 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Individual | 51 Basis Points - 150 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Individual | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Individual | Greater Than 150 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Individual | Greater Than 150 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Individual | Greater Than 150 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Group | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 5,602 | 5,707 |
EQUI-VEST Group | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 2,775 | $ 2,796 |
EQUI-VEST Group | 0.00%-1.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 0% | 0% |
EQUI-VEST Group | 0.00%-1.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.50% | 1.50% |
EQUI-VEST Group | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 271 | $ 269 |
EQUI-VEST Group | 1.51%-2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 1.51% | 1.51% |
EQUI-VEST Group | 1.51%-2.50% | Maximum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | |
EQUI-VEST Group | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 2,556 | $ 2,642 |
EQUI-VEST Group | Greater than 2.50% | Minimum | ||
Policyholder Account Balance [Line Items] | ||
Guaranteed minimum credit rating | 2.50% | 2.50% |
EQUI-VEST Group | At Guaranteed Minimum | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 3,291 | $ 3,399 |
EQUI-VEST Group | At Guaranteed Minimum | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 464 | 488 |
EQUI-VEST Group | At Guaranteed Minimum | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 271 | 269 |
EQUI-VEST Group | At Guaranteed Minimum | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 2,556 | 2,642 |
EQUI-VEST Group | 1 Basis Point - 50 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 2,035 | 2,020 |
EQUI-VEST Group | 1 Basis Point - 50 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 2,035 | 2,020 |
EQUI-VEST Group | 1 Basis Point - 50 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Group | 1 Basis Point - 50 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Group | 51 Basis Points - 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 23 | 11 |
EQUI-VEST Group | 51 Basis Points - 150 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 23 | 11 |
EQUI-VEST Group | 51 Basis Points - 150 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Group | 51 Basis Points - 150 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Group | Greater Than 150 Basis Points Above | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 253 | 277 |
EQUI-VEST Group | Greater Than 150 Basis Points Above | 0.00%-1.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 253 | 277 |
EQUI-VEST Group | Greater Than 150 Basis Points Above | 1.51%-2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | 0 | 0 |
EQUI-VEST Group | Greater Than 150 Basis Points Above | Greater than 2.50% | ||
Policyholder Account Balance [Line Items] | ||
Policyholder account value | $ 0 | $ 0 |
POLICYHOLDER ACCOUNT BALANCES_4
POLICYHOLDER ACCOUNT BALANCES - Reconciliation of Separate Account Liabilities to Separate Account Liability balance (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | $ 6,830 | $ 5,754 | ||
Separate Accounts assets | 6,830 | 5,754 | ||
Mutual Funds | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts assets | 6,830 | 5,754 | ||
VUL | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 2,317 | 2,128 | $ 1,792 | $ 1,653 |
GMxB Core | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 2,710 | 2,166 | 950 | 756 |
IE | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 319 | 226 | 88 | 26 |
Reinsured | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 1,085 | 1,022 | $ 966 | $ 913 |
Other | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts liabilities | 399 | 212 | ||
Separate Accounts assets | 12 | 12 | ||
Other | Mutual Funds | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts assets | 12 | $ 12 | ||
Employer - Sponsored Products | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts assets | 38 | |||
Employer - Sponsored Products | Mutual Funds | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Separate Accounts assets | $ 38 |
POLICYHOLDER ACCOUNT BALANCES_5
POLICYHOLDER ACCOUNT BALANCES - Balances and Changes in Separate Accounts Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | $ 5,754 | |
Balance, end of period | 6,830 | |
VUL | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 2,128 | $ 1,653 |
Premiums and deposits | 105 | 96 |
Policy charges | (36) | (32) |
Surrenders and withdrawals | (13) | (10) |
Benefit payments | (5) | (2) |
Investment performance | 151 | 98 |
Net transfers from (to) general account | (13) | (11) |
Other charges | 0 | 0 |
Balance, end of period | 2,317 | 1,792 |
Cash surrender value | 1,982 | 1,468 |
GMxB Core | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 2,166 | 756 |
Premiums and deposits | 388 | 139 |
Policy charges | (4) | (2) |
Surrenders and withdrawals | (17) | (5) |
Benefit payments | (2) | (2) |
Investment performance | 129 | 38 |
Net transfers from (to) general account | 50 | 26 |
Other charges | 0 | 0 |
Balance, end of period | 2,710 | 950 |
Cash surrender value | 2,522 | 874 |
IE | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 226 | 26 |
Premiums and deposits | 245 | 138 |
Policy charges | 0 | 0 |
Surrenders and withdrawals | (4) | 0 |
Benefit payments | 0 | 0 |
Investment performance | 14 | 1 |
Net transfers from (to) general account | (162) | (77) |
Other charges | 0 | 0 |
Balance, end of period | 319 | 88 |
Cash surrender value | 305 | 84 |
Reinsured | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 1,022 | 913 |
Premiums and deposits | 5 | 5 |
Policy charges | (7) | (8) |
Surrenders and withdrawals | (22) | (14) |
Benefit payments | (4) | (4) |
Investment performance | 0 | 74 |
Net transfers from (to) general account | 91 | 0 |
Other charges | 0 | 0 |
Balance, end of period | 1,085 | 966 |
Cash surrender value | $ 0 | $ 0 |
POLICYHOLDER ACCOUNT BALANCES_6
POLICYHOLDER ACCOUNT BALANCES - Aggregate Fair Value of Separate Account Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | $ 6,830 | $ 5,754 |
Life Insurance & Employee Benefits Products | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 2,869 | 2,642 |
Individual Variable Annuity Products | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 3,911 | 3,100 |
Employer - Sponsored Products | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 38 | |
Other | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 12 | 12 |
Mutual Funds | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 6,830 | 5,754 |
Mutual Funds | Life Insurance & Employee Benefits Products | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 2,869 | 2,642 |
Mutual Funds | Individual Variable Annuity Products | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 3,911 | 3,100 |
Mutual Funds | Employer - Sponsored Products | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | 38 | |
Mutual Funds | Other | ||
Policyholder Account Balance [Line Items] | ||
Separate Accounts assets | $ 12 | $ 12 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Income Tax Disclosure [Abstract] | |
Change in valuation allowance | $ 5 |
Valuation allowance | $ 10 |
EQUITY - Cumulative Gains (Loss
EQUITY - Cumulative Gains (Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | $ 2,074 | $ 2,160 | $ 1,506 | $ 1,431 | $ 372 | $ 231 |
Accumulated other comprehensive income (loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | (699) | (694) | $ (750) | $ (345) | $ (302) | $ (381) |
Unrealized gains (losses) on investments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | (140) | (51) | ||||
Market risk benefits - instrument-specific credit risk component | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | (587) | (649) | ||||
Liability or future policy benefits - current discount rate component | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
AOCI | $ 28 | $ 6 |
EQUITY - Components of OCI, Net
EQUITY - Components of OCI, Net of Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | ||
Change in net unrealized gains (losses) on investments: | |||||
Net unrealized gains (losses) arising during the period | $ (72) | $ 72 | |||
(Gains) losses reclassified into net income (loss) during the period | 0 | 4 | |||
Net unrealized gains (losses) on investments | (72) | 76 | |||
Adjustments for policyholders’ liabilities, insurance liability loss recognition and other | 1 | (1) | |||
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(13) and $16) | [1] | (71) | 75 | ||
Change in LFPB discount rate and MRB credit risk | |||||
Change in market risk benefits - instrument-specific credit risk (net of deferred income tax expense (benefit) of $13 and $1) | 48 | 4 | |||
Changes in liability for future policy benefits - current discount rate (net of deferred income tax expense (benefit) of $5 and $0) | 18 | 0 | |||
Other comprehensive income (loss), net of income taxes | (5) | $ (404) | 79 | $ (368) | |
Deferred income tax expense (benefit) for change in unrealized gains (losses) | (13) | 16 | |||
Deferred income tax expense (benefit) for market risk benefits - change in instrument-specific credit risk | 13 | 1 | |||
Deferred income tax expense (benefit) for liability for future policy benefits - change in current discount rate | 5 | 0 | |||
Reclassification adjustment | $ 0 | $ 1 | |||
[1] See Note 12 of the Notes to these Consolidated Financial Statements for details of change in unrealized gains (losses), net of adjustments. |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | May 31, 2023 |
Restructuring Cost and Reserve [Line Items] | |||
Unaccrued amounts of reasonably possible range of losses | $ 5,000,000 | ||
Line of credit facility, outstanding balance | 0 | $ 0 | |
Guaranty application, equity commitment to certain limited partnerships | 207,000,000 | ||
Commitments under existing mortgage loan agreements | 73,000,000 | ||
Commercial Paper | Funding Agreement-Backed Commercial Paper Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||
Secured Debt | |||
Restructuring Cost and Reserve [Line Items] | |||
Borrowings outstanding | $ 0 | $ 0 |
INSURANCE STATUTORY FINANCIAL_2
INSURANCE STATUTORY FINANCIAL INFORMATION (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) prescribed_and_permitted_practice | |
Related Party Transaction [Line Items] | |
Number of prescribed and permitted practices | prescribed_and_permitted_practice | 2 |
Change in statutory surplus | $ (72) |
Statement of Statutory Accounting Principles 108 | |
Related Party Transaction [Line Items] | |
Change in statutory surplus | $ 942 |
Target liability change percentage | 100% |
UNPAID CLAIM AND CLAIM EXPENS_3
UNPAID CLAIM AND CLAIM EXPENSES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liability for Unpaid Claims and Claims Adjustment Expense, [Roll Forward] | ||
Gross balance at beginning of period | $ 141 | $ 110 |
Less Reinsurance | 48 | 36 |
Net balance at beginning of period | 93 | 74 |
Incurred Claims (net) Related to: | ||
Current Period | 83 | 67 |
Prior Period | (13) | (16) |
Total Incurred | 70 | 51 |
Paid Claims (net) Related to: | ||
Current Period | 25 | 23 |
Prior Period | 35 | 26 |
Total Paid | 60 | 49 |
Net balance at end of period | 103 | 76 |
Add Reinsurance | 47 | 38 |
Gross balance at end of period | $ 150 | $ 114 |
REINSURANCE - Effect of Reinsur
REINSURANCE - Effect of Reinsurance (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | |
Reinsurance Disclosures [Abstract] | ||||||
Direct charges and fee income | $ 106 | $ 85 | ||||
Reinsurance assumed - Equitable Financial | 327 | 0 | ||||
Reinsurance ceded | (29) | (24) | ||||
Policy charges and fee income | 404 | 61 | ||||
Direct premiums | 101 | 85 | ||||
Reinsurance assumed - Equitable Financial | 45 | 0 | ||||
Reinsurance ceded | (14) | (16) | ||||
Premiums | 132 | $ 132 | $ 132 | 69 | $ 201 | $ 333 |
Direct policyholders’ benefits | 136 | 100 | ||||
Reinsurance assumed - Equitable Financial | 186 | 0 | ||||
Reinsurance ceded | (31) | (21) | ||||
Policyholders’ benefits | 291 | $ 261 | $ 278 | 79 | $ 357 | $ 618 |
Direct interest credited to policyholders’ account balances | 116 | 31 | ||||
Reinsurance assumed - Equitable Financial | 154 | 0 | ||||
Reinsurance ceded | (8) | (8) | ||||
Interest credited to policyholders’ account balances | $ 262 | $ 23 |
REINSURANCE - Narrative (Detail
REINSURANCE - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Variable Universal Term Life Insurance Single Life | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |
Reinsurance retention policy, amount retained | $ 4 |
Variable Universal Term Life Insurance Single Life | Equitable Financial Life Insurance Company | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |
Policyholder contract deposits ceded | 20 |
Variable Universal Term Life Insurance Joint Life | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |
Reinsurance retention policy, amount retained | 6 |
Variable Universal Term Life Insurance Joint Life | Equitable Financial Life Insurance Company | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |
Policyholder contract deposits ceded | $ 25 |
REINSURANCE - Composition of Po
REINSURANCE - Composition of Pool of Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 |
Effects of Reinsurance [Line Items] | ||||
Other equity investments | $ 24 | $ 19 | ||
Total assets supporting funds withheld | 9,755 | 10,603 | $ 10,677 | $ 10,654 |
Carrying Value | ||||
Effects of Reinsurance [Line Items] | ||||
Total assets supporting funds withheld | 9,784 | 10,503 | ||
Fair Value | ||||
Effects of Reinsurance [Line Items] | ||||
Total assets supporting funds withheld | $ 9,784 | 10,503 | ||
Equitable Financial Life Insurance Company | Carrying Value | ||||
Effects of Reinsurance [Line Items] | ||||
Fixed maturities | 23,765 | |||
Mortgage loans on real estate | 8,291 | |||
Policy loans | 253 | |||
Other equity investments | 231 | |||
Other invested assets | 9,811 | |||
Total assets supporting funds withheld | 42,351 | |||
Equitable Financial Life Insurance Company | Fair Value | ||||
Effects of Reinsurance [Line Items] | ||||
Fixed maturities | 23,765 | |||
Mortgage loans on real estate | 7,270 | |||
Policy loans | 254 | |||
Other equity investments | 231 | |||
Other invested assets | 9,811 | |||
Total assets supporting funds withheld | $ 41,331 |
REVISION OF PREVIOUSLY ISSUED_3
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Funds withheld receivable | $ 9,755 | $ 10,603 | $ 10,677 | $ 10,654 | ||
Reinsurance deposit assets | 12,411 | 12,566 | 12,663 | 12,756 | ||
Current and deferred income taxes | 127 | 149 | ||||
Other assets | 543 | 406 | $ 132 | |||
Assets for Market Risk Benefits | 34 | 24 | 22 | 24 | 15 | |
Total Assets | 47,712 | 44,196 | 39,963 | 37,730 | 10,163 | |
Policyholders’ account balances | 28,256 | 24,963 | 20,889 | |||
Liability for Market Risk Benefits | 6,383 | 7,333 | 6,712 | 7,367 | 16 | |
Future policy benefits and other policyholders' liabilities | 1,801 | 1,653 | 1,450 | 1,298 | ||
Other liabilities | 2,228 | 2,169 | 2,144 | 2,131 | ||
Total Liabilities | 45,638 | 42,036 | 38,457 | 36,299 | 9,791 | |
Retained earnings (accumulated deficit) | 886 | 969 | 371 | (109) | (160) | |
Accumulated other comprehensive income (loss) | (699) | (694) | (750) | |||
Total Equity | 2,074 | 2,160 | 1,506 | 1,431 | 372 | $ 231 |
Total Liabilities and Equity | $ 47,712 | $ 44,196 | 39,963 | 37,730 | 10,163 | |
As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Funds withheld receivable | 10,550 | 10,615 | ||||
Reinsurance deposit assets | 12,682 | 12,782 | ||||
Current and deferred income taxes | 131 | 151 | ||||
Other assets | 131 | |||||
Assets for Market Risk Benefits | 24 | 26 | 17 | |||
Total Assets | 39,861 | 37,721 | 10,164 | |||
Policyholders’ account balances | 21,014 | |||||
Liability for Market Risk Benefits | 6,731 | 7,363 | 14 | |||
Future policy benefits and other policyholders' liabilities | 1,352 | 1,209 | ||||
Other liabilities | 2,137 | 2,124 | ||||
Total Liabilities | 38,371 | 36,324 | 9,789 | |||
Retained earnings (accumulated deficit) | 373 | (143) | (157) | |||
Accumulated other comprehensive income (loss) | (768) | |||||
Total Equity | 1,490 | 1,397 | 375 | |||
Total Liabilities and Equity | 39,861 | 37,721 | 10,164 | |||
Adjustments | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Funds withheld receivable | 127 | 39 | ||||
Reinsurance deposit assets | (19) | (26) | ||||
Current and deferred income taxes | (4) | (2) | ||||
Other assets | 1 | |||||
Assets for Market Risk Benefits | (2) | (2) | (2) | |||
Total Assets | 102 | 9 | (1) | |||
Policyholders’ account balances | (125) | |||||
Liability for Market Risk Benefits | (19) | 4 | 2 | |||
Future policy benefits and other policyholders' liabilities | 98 | 89 | ||||
Other liabilities | 7 | 7 | ||||
Total Liabilities | 86 | (25) | 2 | |||
Retained earnings (accumulated deficit) | (2) | 34 | (3) | |||
Accumulated other comprehensive income (loss) | 18 | |||||
Total Equity | 16 | 34 | (3) | |||
Total Liabilities and Equity | $ 102 | $ 9 | $ (1) |
REVISION OF PREVIOUSLY ISSUED_4
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Statements of Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Policy charges and fee income | $ 404 | $ 411 | $ 410 | $ 61 | $ 471 | $ 882 |
Premiums | 132 | 132 | 132 | 69 | 201 | 333 |
Net derivative gains (losses) | (1,055) | (336) | (699) | 6 | (693) | (1,029) |
Investment management and service fees | 128 | 126 | 122 | 5 | 127 | 253 |
Total revenues | (196) | 470 | 59 | 171 | 230 | 700 |
Benefits and other deductions | ||||||
Policyholders’ benefits | 291 | 261 | 278 | 79 | 357 | 618 |
Remeasurement of liability for future policy benefits | (9) | 23 | (1) | (1) | (2) | 21 |
Change in Market Risk Benefits and Purchased Market Risk Benefits | (1,034) | (992) | (839) | 1 | (838) | (1,830) |
Commissions | 107 | 99 | 89 | 31 | 120 | 219 |
Other operating costs and expenses | 94 | 199 | 256 | 22 | 279 | 478 |
Total benefits and other deductions | (90) | (142) | (1) | 181 | 180 | 38 |
Income (loss) from continuing operations, before income taxes | (106) | 612 | 60 | (10) | 50 | 662 |
Income tax (expense) benefit from continuing operations | 23 | (131) | (9) | 72 | 63 | (68) |
Net income (loss) from continuing operations | 481 | 51 | 62 | 113 | 594 | |
Net income (loss) | $ (83) | 481 | 51 | 62 | 113 | 594 |
As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Policy charges and fee income | 410 | 411 | 472 | 882 | ||
Premiums | 152 | 112 | 181 | 333 | ||
Net derivative gains (losses) | (340) | (700) | (694) | (1,034) | ||
Investment management and service fees | 143 | 105 | 110 | 253 | ||
Total revenues | 502 | 22 | 193 | 695 | ||
Benefits and other deductions | ||||||
Policyholders’ benefits | 244 | 335 | 414 | 658 | ||
Remeasurement of liability for future policy benefits | 10 | 1 | 0 | 10 | ||
Change in Market Risk Benefits and Purchased Market Risk Benefits | (980) | (862) | 0 | (862) | (1,842) | |
Commissions | 100 | 90 | 121 | 221 | ||
Other operating costs and expenses | 210 | 222 | 245 | 455 | ||
Total benefits and other deductions | (148) | 2 | 180 | 182 | 34 | |
Income (loss) from continuing operations, before income taxes | 650 | 20 | (9) | 11 | 661 | |
Income tax (expense) benefit from continuing operations | (134) | (6) | 66 | (68) | ||
Net income (loss) from continuing operations | 516 | 14 | 63 | 77 | 593 | |
Net income (loss) | 516 | 14 | 63 | 77 | 593 | |
Adjustments | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Policy charges and fee income | 1 | (1) | (1) | 0 | ||
Premiums | (20) | 20 | 20 | 0 | ||
Net derivative gains (losses) | 4 | 1 | 1 | 5 | ||
Investment management and service fees | (17) | 17 | 17 | 0 | ||
Total revenues | (32) | 37 | 37 | 5 | ||
Benefits and other deductions | ||||||
Policyholders’ benefits | 17 | (57) | (57) | (40) | ||
Remeasurement of liability for future policy benefits | 13 | (2) | (2) | 11 | ||
Change in Market Risk Benefits and Purchased Market Risk Benefits | (12) | 23 | 1 | 24 | 12 | |
Commissions | (1) | (1) | (1) | (2) | ||
Other operating costs and expenses | (11) | 34 | 34 | 23 | ||
Total benefits and other deductions | 6 | (3) | 1 | (2) | 4 | |
Income (loss) from continuing operations, before income taxes | (38) | 40 | (1) | 39 | 1 | |
Income tax (expense) benefit from continuing operations | 3 | (3) | (3) | 0 | ||
Net income (loss) from continuing operations | (35) | 37 | (1) | 36 | 1 | |
Net income (loss) | $ (35) | $ 37 | $ (1) | $ 36 | $ 1 |
REVISION OF PREVIOUSLY ISSUED_5
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income (loss) | $ (83) | $ 481 | $ 51 | $ 62 | $ 113 | $ 594 |
Change in market risk benefits - instrument-specific credit risk | 48 | (262) | 4 | (250) | ||
Other comprehensive income | (5) | (404) | 79 | (368) | ||
Comprehensive income (loss) | $ (88) | 77 | 8 | 141 | 149 | 226 |
As Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income (loss) | 516 | 14 | 63 | 77 | 593 | |
Change in market risk benefits - instrument-specific credit risk | (280) | 5 | (268) | |||
Other comprehensive income | (423) | 80 | (386) | |||
Comprehensive income (loss) | 93 | (29) | 143 | 114 | 207 | |
Adjustments | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income (loss) | (35) | 37 | (1) | 36 | 1 | |
Change in market risk benefits - instrument-specific credit risk | 18 | (1) | 18 | |||
Other comprehensive income | 19 | (1) | 18 | |||
Comprehensive income (loss) | $ (16) | $ 37 | $ (2) | $ 35 | $ 19 |
REVISION OF PREVIOUSLY ISSUED_6
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Statements of Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | $ 2,160 | $ 1,431 | $ 372 | $ 231 | $ 231 | $ 231 |
Net income (loss) | (83) | 481 | 51 | 62 | 113 | 594 |
Other comprehensive income (loss) | (5) | (404) | 79 | (368) | ||
Balance at end of period | 2,074 | 1,506 | 1,431 | 372 | 1,431 | 1,506 |
Retained Earnings (Accumulated Deficit) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | 969 | (109) | (160) | (222) | (222) | (222) |
Net income (loss) | (83) | 481 | 51 | 62 | 113 | 594 |
Balance at end of period | 886 | 371 | (109) | (160) | (109) | 371 |
Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | (694) | (345) | (302) | (381) | (381) | (381) |
Other comprehensive income (loss) | (5) | (404) | (43) | 79 | 36 | (368) |
Balance at end of period | $ (699) | (750) | (345) | (302) | (345) | (750) |
As Previously Reported | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | 1,397 | 375 | ||||
Net income (loss) | 516 | 14 | 63 | 77 | 593 | |
Other comprehensive income (loss) | (423) | 80 | (386) | |||
Balance at end of period | 1,490 | 1,397 | 375 | 1,397 | 1,490 | |
As Previously Reported | Retained Earnings (Accumulated Deficit) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | (143) | (157) | (220) | (220) | (220) | |
Net income (loss) | 516 | 14 | 63 | 77 | 593 | |
Balance at end of period | 373 | (143) | (157) | (143) | 373 | |
As Previously Reported | Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | (345) | (302) | (382) | (382) | (382) | |
Other comprehensive income (loss) | (423) | (43) | 37 | (386) | ||
Balance at end of period | (768) | (345) | (302) | (345) | (768) | |
Adjustments | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | 34 | (3) | ||||
Net income (loss) | (35) | 37 | (1) | 36 | 1 | |
Other comprehensive income (loss) | 19 | (1) | 18 | |||
Balance at end of period | 16 | 34 | (3) | 34 | 16 | |
Adjustments | Retained Earnings (Accumulated Deficit) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | 34 | (3) | (2) | (2) | (2) | |
Net income (loss) | (35) | 37 | (1) | 36 | 1 | |
Balance at end of period | (2) | 34 | (3) | 34 | (2) | |
Adjustments | Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | 0 | 0 | 1 | 1 | 1 | |
Other comprehensive income (loss) | 19 | 0 | (1) | (1) | 18 | |
Balance at end of period | $ 18 | $ 0 | $ 0 | $ 0 | $ 18 |
REVISION OF PREVIOUSLY ISSUED_7
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | |
Cash flow from operating activities | ||||||
Net income (loss) | $ (83) | $ 481 | $ 51 | $ 62 | $ 113 | $ 594 |
Policy charges and fee income | (404) | (411) | (410) | (61) | (471) | (882) |
Net derivative (gains) losses | 1,055 | 336 | 699 | (6) | 693 | 1,029 |
Remeasurement of liability for future policy benefits | (9) | 23 | (1) | (1) | (2) | 21 |
Change in Market Risk Benefits | (1,034) | 1 | (838) | (1,830) | ||
Future policy benefits | 154 | 9 | 222 | 365 | ||
Funds Withheld | 18 | 0 | (161) | (219) | ||
Current and deferred income taxes | (23) | (72) | (63) | |||
Other, net | 360 | 89 | 455 | 984 | ||
Net cash provided by (used in) operating activities | $ 234 | (20) | 888 | 452 | ||
As Previously Reported | ||||||
Cash flow from operating activities | ||||||
Net income (loss) | 516 | 14 | 63 | 77 | 593 | |
Policy charges and fee income | (410) | (411) | (472) | (882) | ||
Net derivative (gains) losses | 340 | 700 | 694 | 1,034 | ||
Remeasurement of liability for future policy benefits | 10 | 1 | 0 | 10 | ||
Change in Market Risk Benefits | 0 | (862) | (1,842) | |||
Future policy benefits | 133 | 264 | ||||
Funds Withheld | 13 | (87) | ||||
Current and deferred income taxes | (66) | |||||
Other, net | 431 | 972 | ||||
Net cash provided by (used in) operating activities | (20) | 888 | 452 | |||
Adjustments | ||||||
Cash flow from operating activities | ||||||
Net income (loss) | (35) | 37 | (1) | 36 | 1 | |
Policy charges and fee income | (1) | 1 | 1 | 0 | ||
Net derivative (gains) losses | (4) | (1) | (1) | (5) | ||
Remeasurement of liability for future policy benefits | $ 13 | $ (2) | (2) | 11 | ||
Change in Market Risk Benefits | 1 | 24 | 12 | |||
Future policy benefits | 89 | 101 | ||||
Funds Withheld | (174) | (132) | ||||
Current and deferred income taxes | 3 | |||||
Other, net | 24 | 12 | ||||
Net cash provided by (used in) operating activities | $ 0 | $ 0 | $ 0 |