Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2023

Stockholders' Equity

Common Stock Dividends (Table)

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
Dividends declared per common share	$	0.65	$	0.64	$	1.93	$	1.92

Reconciliation of Outstanding Common Shares (Table)

	For the three months ended		For the nine months ended
	September 30,		September 30,
	2023	2022	2023	2022
Beginning balance	242,037,833	249,852,601	243,549,782	261,673,076
Shares issued	187,895	991,881	2,186,549	3,320,049
Treasury stock acquired	(2,567,868)	(5,984,661)	(6,078,471)	(20,133,304)
Ending balance	239,657,860	244,859,821	239,657,860	244,859,821

Other Comprehensive Income (Loss) (Table)

	For the three months ended						For the nine months ended
	September 30, 2023						September 30, 2023
	Pre-Tax		Tax		After-Tax		Pre-Tax		Tax		After-Tax
	(in millions)
Net unrealized losses on available-for-sale securities during the period	$	(2,333.5)	$	501.0	$	(1,832.5)	$	(1,840.4)	$	398.8	$	(1,441.6)
Reclassification adjustment for losses included in net income (1)		30.3		(6.2)		24.1		214.0		(44.7)		169.3
Adjustments for assumed changes in amortization patterns		(1.8)		0.4		(1.4)		(2.5)		0.6		(1.9)
Adjustments for assumed changes in policyholder liabilities		0.6		(0.2)		0.4		0.7		(0.2)		0.5
Net unrealized losses on available-for-sale securities		(2,304.4)		495.0		(1,809.4)		(1,628.2)		354.5		(1,273.7)
Net unrealized losses on derivative instruments during the period		(16.8)		3.5		(13.3)		(19.3)		4.1		(15.2)
Reclassification adjustment for gains included in net income (2)		(1.3)		0.3		(1.0)		(6.2)		1.3		(4.9)
Adjustments for assumed changes in amortization patterns		(0.9)		0.2		(0.7)		(0.9)		0.2		(0.7)
Adjustments for assumed changes in policyholder liabilities		0.2		(0.1)		0.1		0.2		(0.1)		0.1
Net unrealized losses on derivative instruments		(18.8)		3.9		(14.9)		(26.2)		5.5		(20.7)
Liability for future policy benefits discount rate remeasurement gain (3)		1,773.5		(399.9)		1,373.6		1,746.1		(404.2)		1,341.9
Market risk benefit nonperformance risk loss (4)		(22.6)		4.7		(17.9)		(22.2)		4.7		(17.5)
Foreign currency translation adjustment during the period		(149.1)		15.6		(133.5)		1.6		6.6		8.2
Reclassification adjustment for losses included in net income (5)		0.1		—		0.1		0.4		—		0.4
Foreign currency translation adjustment		(149.0)		15.6		(133.4)		2.0		6.6		8.6
Unrecognized postretirement benefit obligation during the period		—		0.1		0.1		(18.3)		4.8		(13.5)
Amortization of amounts included in net periodic benefit cost (6)		5.6		(1.5)		4.1		16.8		(4.4)		12.4
Net unrecognized postretirement benefit obligation		5.6		(1.4)		4.2		(1.5)		0.4		(1.1)
Other comprehensive income (loss)	$	(715.7)	$	117.9	$	(597.8)	$	70.0	$	(32.5)	$	37.5

	For the three months ended						For the nine months ended
	September 30, 2022						September 30, 2022
	Pre-Tax		Tax		After-Tax		Pre-Tax		Tax		After-Tax
	(in millions)
Net unrealized losses on available-for-sale securities during the period	$	(3,653.1)	$	778.2	$	(2,874.9)	$	(14,038.6)	$	2,975.2	$	(11,063.4)
Reclassification adjustment for losses included in net income (1)		76.3		(15.6)		60.7		83.8		(21.0)		62.8
Adjustments for assumed changes in amortization patterns		(1.1)		0.2		(0.9)		(3.8)		0.8		(3.0)
Adjustments for assumed changes in policyholder liabilities		0.3		(0.1)		0.2		273.1		(57.5)		215.6
Net unrealized losses on available-for-sale securities		(3,577.6)		762.7		(2,814.9)		(13,685.5)		2,897.5		(10,788.0)
Net unrealized gains on derivative instruments during the period		104.6		(22.0)		82.6		84.2		(17.7)		66.5
Reclassification adjustment for gains included in net income (2)		(4.4)		1.0		(3.4)		(21.8)		4.6		(17.2)
Adjustments for assumed changes in amortization patterns		—		—		—		(0.1)		—		(0.1)
Adjustments for assumed changes in policyholder liabilities		—		—		—		0.4		(0.1)		0.3
Net unrealized gains on derivative instruments		100.2		(21.0)		79.2		62.7		(13.2)		49.5
Liability for future policy benefits discount rate remeasurement gain (3)		1,936.7		(425.1)		1,511.6		6,775.1		(1,435.1)		5,340.0
Market risk benefit nonperformance risk gain (loss) (4)		(3.7)		0.8		(2.9)		165.7		(34.7)		131.0
Foreign currency translation adjustment		(63.8)		9.5		(54.3)		(172.2)		4.5		(167.7)
Unrecognized postretirement benefit obligation during the period		0.1		(0.1)		—		2.2		(0.6)		1.6
Amortization of amounts included in net periodic benefit cost (6)		9.2		(2.2)		7.0		27.6		(7.2)		20.4
Net unrecognized postretirement benefit obligation		9.3		(2.3)		7.0		29.8		(7.8)		22.0
Other comprehensive loss	$	(1,598.9)	$	324.6	$	(1,274.3)	$	(6,824.4)	$	1,411.2	$	(5,413.2)

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

(3) Includes the discount rate remeasurement gain (loss) associated with the liability for future policy benefits and the associated reinsurance recoverable. See Note 8, Future Policy Benefits and Claims, under the caption “Liability for Future Policy Benefits” for further details.

(4) See Note 9, Market Risk Benefits, for further details.

(5) The 2023 pre-tax reclassification adjustment related to the release of the cumulative translation adjustment from the dissolution of foreign subsidiaries.

(6) 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 13, Employee and Agent Benefits, under the caption “Components of Net Periodic Benefit Cost” for further details.

Accumulated Other Comprehensive Income (Loss) (Table)

	Net unrealized		Net unrealized		LFPB				Foreign		Unrecognized		Accumulated
	losses on		gains		discount rate		MRB		currency		postretirement		other
	available-for-sale		on derivative		remeasurement		nonperformance		translation		benefit		comprehensive
	securities (1)		instruments		gain (loss)		risk gain		adjustment		obligation		loss
	(in millions)
Balances as of July 1, 2022	$	(3,984.2)	$	33.1	$	(209.2)	$	43.8	$	(1,660.0)	$	(329.7)	$	(6,106.2)
Other comprehensive loss, during the period net of adjustments		(2,875.5)		82.6		1,511.6		(2.9)		(55.1)		—		(1,339.3)
Amounts reclassified from AOCI		60.7		(3.4)		—		—		—		7.0		64.3
Other comprehensive loss		(2,814.8)		79.2		1,511.6		(2.9)		(55.1)		7.0		(1,275.0)
Balances as of September 30, 2022	$	(6,799.0)	$	112.3	$	1,302.4	$	40.9	$	(1,715.1)	$	(322.7)	$	(7,381.2)
Balances as of July 1, 2023	$	(5,322.2)	$	33.9	$	709.2	$	24.4	$	(1,431.1)	$	(259.4)	$	(6,245.2)
Other comprehensive loss during the period, net of adjustments		(1,833.5)		(13.9)		1,373.6		(17.9)		(131.4)		0.1		(623.0)
Amounts reclassified from AOCI		24.1		(1.0)		—		—		0.1		4.1		27.3
Other comprehensive loss		(1,809.4)		(14.9)		1,373.6		(17.9)		(131.3)		4.2		(595.7)
Balances as of September 30, 2023	$	(7,131.6)	$	19.0	$	2,082.8	$	6.5	$	(1,562.4)	$	(255.2)	$	(6,840.9)

	Net unrealized		Net unrealized		LFPB				Foreign		Unrecognized		Accumulated
	gains (losses) on		gains		discount rate		MRB		currency		postretirement		other
	available-for-sale		on derivative		remeasurement		nonperformance		translation		benefit		comprehensive
	securities (1)		instruments		gain (loss)		risk gain (loss)		adjustment		obligation		loss
	(in millions)
Balances as of January 1, 2022	$	3,880.4	$	56.6	$	(4,037.6)	$	(90.1)	$	(1,548.7)	$	(344.7)	$	(2,084.1)
Other comprehensive loss during the period, net of adjustments		(10,850.6)		66.7		5,340.0		131.0		(166.4)		1.6		(5,477.7)
Amounts reclassified from AOCI		62.8		(17.2)		—		—		—		20.4		66.0
Other comprehensive loss		(10,787.8)		49.5		5,340.0		131.0		(166.4)		22.0		(5,411.7)
Adjustment for reinsurance (2)		108.4		6.2		—		—		—		—		114.6
Balances as of September 30, 2022	$	(6,799.0)	$	112.3	$	1,302.4	$	40.9	$	(1,715.1)	$	(322.7)	$	(7,381.2)
Balances as of January 1, 2023	$	(5,857.9)	$	39.7	$	740.9	$	24.0	$	(1,571.6)	$	(254.1)	$	(6,879.0)
Other comprehensive loss during the period, net of adjustments		(1,443.0)		(15.8)		1,341.9		(17.5)		8.8		(13.5)		(139.1)
Amounts reclassified from AOCI		169.3		(4.9)		—		—		0.4		12.4		177.2
Other comprehensive income		(1,273.7)		(20.7)		1,341.9		(17.5)		9.2		(1.1)		38.1
Balances as of September 30, 2023	$	(7,131.6)	$	19.0	$	2,082.8	$	6.5	$	(1,562.4)	$	(255.2)	$	(6,840.9)

(1) Net unrealized gains (losses) on available-for-sale securities for which an allowance for credit loss has been recorded were $(3.8) million and $0.9 million as of September 30, 2023 and 2022, 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 three months ended				For the nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
	(in millions)
Balance at beginning of period	$	266.7	$	268.5	$	262.0	$	332.5
Net income (loss) attributable to redeemable noncontrolling interest		(2.8)		(4.6)		5.3		(38.0)
Redeemable noncontrolling interest of deconsolidated entities (1)		—		(2.8)		(3.0)		(2.8)
Contributions from redeemable noncontrolling interest		8.3		17.2		31.6		48.2
Distributions to redeemable noncontrolling interest		(11.6)		(22.7)		(34.4)		(84.1)
Purchase of subsidiary shares from redeemable noncontrolling interest		—		(1.1)		(1.6)		(1.1)
Change in redemption value of redeemable noncontrolling interest		(0.8)		(0.5)		(0.7)		(0.1)
Stock-based compensation attributable to redeemable noncontrolling interest		0.1		—		0.1		—
Other comprehensive income (loss) attributable to redeemable noncontrolling interest		(0.4)		1.1		0.2		0.5
Balance at end of period	$	259.5	$	255.1	$	259.5	$	255.1

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