Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2022

Stockholders' Equity

Common Stock Dividends (Table)

	For the year ended December 31,
	2022		2021		2020
Dividends declared per common share	$	2.56	$	2.44	$	2.24

Reconciliation of Outstanding Common Shares (Table)

	For the year ended December 31,
	2022	2021	2020
	(in millions)
Beginning balance	261.7	273.3	276.6
Shares issued	4.9	3.0	2.6
Treasury stock acquired	(23.1)	(14.6)	(5.9)
Ending balance	243.5	261.7	273.3

Other Comprehensive Income (Loss) (Table)

	For the year ended December 31, 2022
	Pre-Tax		Tax		After-Tax
	(in millions)
Net unrealized losses on available-for-sale securities during the period	$	(13,167.3)	$	2,791.3	$	(10,376.0)
Reclassification adjustment for losses included in net income (1)		398.9		(87.6)		311.3
Adjustments for assumed changes in amortization patterns		926.6		(194.6)		732.0
Adjustments for assumed changes in policyholder liabilities		430.0		(86.2)		343.8
Net unrealized losses on available-for-sale securities		(11,411.8)		2,422.9		(8,988.9)
Net unrealized losses on derivative instruments during the period		(1.4)		0.3		(1.1)
Reclassification adjustment for gains included in net income (2)		(28.0)		5.8		(22.2)
Adjustments for assumed changes in amortization patterns		7.3		(1.6)		5.7
Adjustments for assumed changes in policyholder liabilities		(2.9)		0.6		(2.3)
Net unrealized losses on derivative instruments		(25.0)		5.1		(19.9)
Foreign currency translation adjustment		(27.7)		4.8		(22.9)
Unrecognized postretirement benefit obligation during the period		85.8		(22.3)		63.5
Amortization of amounts included in net periodic benefit cost (4)		36.7		(9.6)		27.1
Net unrecognized postretirement benefit obligation		122.5		(31.9)		90.6
Other comprehensive loss	$	(11,342.0)	$	2,400.9	$	(8,941.1)

	For the year ended December 31, 2021
	Pre-Tax		Tax		After-Tax
	(in millions)
Net unrealized losses on available-for-sale securities during the period	$	(2,960.0)	$	665.4	$	(2,294.6)
Reclassification adjustment for losses included in net income (1)		19.4		(5.1)		14.3
Adjustments for assumed changes in amortization patterns		171.4		(36.0)		135.4
Adjustments for assumed changes in policyholder liabilities		1,913.1		(439.1)		1,474.0
Net unrealized losses on available-for-sale securities		(856.1)		185.2		(670.9)
Net unrealized gains on derivative instruments during the period		66.7		(14.0)		52.7
Reclassification adjustment for gains included in net income (2)		(25.5)		5.4		(20.1)
Adjustments for assumed changes in amortization patterns		(0.2)		—		(0.2)
Adjustments for assumed changes in policyholder liabilities		1.6		(0.4)		1.2
Net unrealized gains on derivative instruments		42.6		(9.0)		33.6
Foreign currency translation adjustment during the period		(267.9)		(5.6)		(273.5)
Reclassification adjustment for losses included in net income (3)		19.3		—		19.3
Foreign currency translation adjustment		(248.6)		(5.6)		(254.2)
Unrecognized postretirement benefit obligation during the period		106.5		(28.5)		78.0
Amortization of amounts included in net periodic benefit cost (4)		51.8		(14.0)		37.8
Net unrecognized postretirement benefit obligation		158.3		(42.5)		115.8
Other comprehensive loss	$	(903.8)	$	128.1	$	(775.7)

	For the year ended December 31, 2020
	Pre-Tax		Tax		After-Tax
	(in millions)
Net unrealized gains on available-for-sale securities during the period	$	3,441.4	$	(728.7)	$	2,712.7
Reclassification adjustment for gains included in net income (1)		(52.9)		12.6		(40.3)
Adjustments for assumed changes in amortization patterns		(179.0)		37.6		(141.4)
Adjustments for assumed changes in policyholder liabilities		(1,478.2)		323.7		(1,154.5)
Net unrealized gains on available-for-sale securities		1,731.3		(354.8)		1,376.5
Net unrealized losses on derivative instruments during the period		(28.1)		6.5		(21.6)
Reclassification adjustment for gains included in net income (2)		(27.1)		5.1		(22.0)
Adjustments for assumed changes in amortization patterns		2.7		(0.5)		2.2
Adjustments for assumed changes in policyholder liabilities		7.8		(1.6)		6.2
Net unrealized losses on derivative instruments		(44.7)		9.5		(35.2)
Foreign currency translation adjustment during the period		(11.7)		(2.6)		(14.3)
Reclassification adjustment for losses included in net income (3)		43.0		1.9		44.9
Foreign currency translation adjustment		31.3		(0.7)		30.6
Unrecognized postretirement benefit obligation during the period		(91.9)		24.9		(67.0)
Amortization of amounts included in net periodic benefit cost (4)		57.6		(15.5)		42.1
Net unrecognized postretirement benefit obligation		(34.3)		9.4		(24.9)
Other comprehensive income	$	1,683.6	$	(336.6)	$	1,347.0

(1) Pre-tax reclassification adjustments relating to available-for-sale securities are reported in net realized capital gains (losses) on the consolidated statements of operations.

(2) See Note 5, Derivative Financial Instruments, under the caption “Effect of Fair Value and Cash Flow Hedges on Consolidated Statements of Operations” for further details.

(3) The 2021 pre-tax reclassification adjustment related to the release of cumulative translation adjustment from the dissolution of foreign subsidiaries. The 2020 pre-tax reclassification adjustment primarily related to the release of the cumulative translation adjustment from the dissolution of a foreign subsidiary and the net impact of deconsolidated sponsored investment funds and associated net investment hedges. The adjustments were reported in net realized capital gains (losses) on the consolidated statements of operations. For the year ended December 31, 2020, $8.7 million of this reclassification relates to noncontrolling interest and is reported in net income attributable to noncontrolling interest on the consolidated statements of operations.

(4) Amount is comprised of amortization of prior service cost (benefit) and recognized net actuarial (gain) loss, which is reported in operating expenses on the consolidated statements of operations. See Note 12, Employee and Agent Benefits, under the caption “Components of Net Periodic Benefit Cost” for further details.

Accumulated Other Comprehensive Income (Loss) (Table)

			Noncredit
	Net unrealized		component of		Net unrealized		Foreign		Unrecognized		Accumulated
	gains (losses) on		impairment losses		gains		currency		postretirement		other
	available-for-sale		on fixed maturities		on derivative		translation		benefit		comprehensive
	securities (1)		available-for-sale		instruments		adjustment		obligation		income (loss)
	(in millions)
Balances as of January 1, 2020	$	2,806.0	$	(44.1)	$	53.4	$	(1,341.8)	$	(435.6)	$	1,037.9
Other comprehensive income during the period, net of adjustments		1,416.7		—		(13.2)		(7.3)		(67.0)		1,329.2
Amounts reclassified from AOCI		(40.3)		—		(22.0)		36.2		42.1		16.0
Other comprehensive income		1,376.4		—		(35.2)		28.9		(24.9)		1,345.2
Effects of implementation of accounting change related to the reclassification of certain tax effects, net		(44.1)		44.1		—		—		—		—
Balances as of December 31, 2020		4,138.3		—		18.2		(1,312.9)		(460.5)		2,383.1
Other comprehensive loss during the period, net of adjustments		(685.2)		—		53.7		(270.0)		78.0		(823.5)
Amounts reclassified from AOCI		14.3		—		(20.1)		19.3		37.8		51.3
Other comprehensive loss		(670.9)		—		33.6		(250.7)		115.8		(772.2)
Balances as of December 31, 2021		3,467.4		—		51.8		(1,563.6)		(344.7)		1,610.9
Other comprehensive loss during the period, net of adjustments		(9,300.0)		—		2.3		(23.7)		63.5		(9,257.9)
Amounts reclassified from AOCI		311.3		—		(22.2)		—		27.1		316.2
Other comprehensive loss		(8,988.7)		—		(19.9)		(23.7)		90.6		(8,941.7)
Adjustment for reinsurance (2)		124.4		—		7.4		—		—		131.8
Balances as of December 31, 2022	$	(5,396.9)	$	—	$	39.3	$	(1,587.3)	$	(254.1)	$	(7,199.0)

(1) Net unrealized gains (losses) on available-for-sale securities for which an allowance for credit loss has been recorded were $0.3 million, $(2.1) million and $(2.9) million as of December 31, 2022, 2021 and 2020, respectively.

(2) Reflects the January 1, 2022, balance associated with our ULSG business that was ceded to Talcott Life & Annuity Re.

Redeemable Noncontrolling Interest (Table)

	For the year ended December 31,
	2022		2021		2020
	(in millions)
Beginning balance	$	332.5	$	255.6	$	264.9
Net income (loss) attributable to redeemable noncontrolling interest		(25.8)		17.5		7.5
Redeemable noncontrolling interest of deconsolidated entities (1)		(2.8)		(37.4)		(91.9)
Contributions from redeemable noncontrolling interest		67.3		166.8		136.2
Distributions to redeemable noncontrolling interest		(108.9)		(66.8)		(62.0)
Purchase of subsidiary shares from redeemable noncontrolling interest (2)		(1.1)		(6.1)		—
Change in redemption value of redeemable noncontrolling interest		(0.2)		3.1		0.2
Stock-based compensation attributable to redeemable noncontrolling interest		0.1		—		0.1
Other comprehensive income (loss) attributable to redeemable noncontrolling interest		0.9		(0.2)		0.6
Ending balance	$	262.0	$	332.5	$	255.6

(1) We deconsolidated certain sponsored investment funds as they no longer met the requirements for consolidation.

(2) In 2022, we acquired an additional interest in Origin Asset Management. In 2021, we acquired the remaining interest in Principal Innovations, Inc. and its wholly owned subsidiary, RobustWealth, Inc.