8. Equity
Preferred Stock—We have two series of preferred stock: 6.35% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares, Series A (Series A) and 5.625% Fixed Rate Perpetual Non-Cumulative Preference Shares, Series B (Series B) as summarized below: | | | | | | | | | | Series A | | Series B | Authorized, issued and outstanding | 34,500 |
| | 13,800 |
| Liquidation preference per share | $ | 25,000 |
| | $ | 25,000 |
| Dividends declared and paid per share during the period | $ | 396.88 |
| | $ | 351.56 |
| Aggregate dividends declared and paid during the period (in millions) | $ | 13 |
| | $ | 5 |
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Preferred stock dividends are payable on a non-cumulative basis only when, as and if declared, quarterly in arrears on the 30th day of March, June, September and December of each year. Preferred stock ranks senior to our common stock with respect to dividends, to the extent declared, and in liquidation, to the extent of the liquidation preference.
Common Stock—During the first quarter of 2020, shareholders approved amendments to our bye-laws which eliminated our multi-class share structure at closing of the share transaction with Apollo. See Note 9 – Related Parties for further information on this transaction. On February 28, 2020, all Class B shares were converted to Class A shares on a one-to-one basis. Class M shares were converted to Class A shares representing 5% of the Class M value and warrants representing 95% of the Class M value. The warrants were issued with substantially the same terms, including the same economic terms, as the Class M shares.
Our bye-laws place certain restrictions on Class A shares such that a holder of Class A shares, except for shareholders permitted by our board of directors, which include members of the Apollo Group, as defined in our bye-laws, cannot control greater than 9.9% of the total outstanding vote and if a holder of Class A shares were to control greater than 9.9%, then a holder’s voting power is automatically reduced to 9.9% and the other holders of Class A shares would vote the remainder on a prorated basis.
Share Repurchase Authorization
Our board of directors has approved authorizations of $1,567 million for the repurchase of our Class A shares under our repurchase program. We may repurchase shares in open market transactions, in privately negotiated transactions or otherwise. The size and timing of repurchases will depend on legal requirements, market and economic conditions and other factors, and are solely at our discretion. The program has no expiration date, but may be modified, suspended or terminated by the board at any time.
The following summarizes the activity on our share repurchase authorization: | | | | | | | | | | Three months ended March 31, | (In millions) | 2020 | | 2019 | Beginning balance at January 1 | $ | 640 |
| | $ | 150 |
| Repurchases | (319 | ) | | (47 | ) | Ending balance at March 31 | $ | 321 |
| | $ | 103 |
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The table below shows the changes in each class of shares issued and outstanding: | | | | (In millions) | Three months ended March 31, 2020 | Class A | | Beginning balance | 143.2 |
| Issued shares | 35.9 |
| Forfeited shares | (0.1 | ) | Repurchased shares | (10.4 | ) | Converted from Class B shares | 25.4 |
| Converted from Class M shares | 0.3 |
| Ending balance | 194.3 |
| Class B | | Beginning balance | 25.4 |
| Converted to Class A shares | (25.4 | ) | Ending balance | — |
| Class M-1 | | Beginning balance | 3.3 |
| Converted to Class A shares | (0.2 | ) | Converted to warrants | (3.1 | ) | Ending balance | — |
| Class M-2 | | Beginning balance | 0.8 |
| Converted to Class A shares | 0.0 |
| Converted to warrants | (0.8 | ) | Ending balance | — |
| Class M-3 | | Beginning balance | 1.0 |
| Converted to Class A shares | 0.0 |
| Converted to warrants | (1.0 | ) | Ending balance | — |
| Class M-4 | | Beginning balance | 4.0 |
| Converted to Class A shares | (0.1 | ) | Converted to warrants | (3.6 | ) | Repurchased shares | (0.3 | ) | Ending balance | — |
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Accumulated Other Comprehensive Income (Loss)—The following provides the details of AOCI and changes in AOCI: | | | | | | | | | | | | | | | | | | | | | | | | | (In millions) | Unrealized investment gains (losses) on AFS securities without a credit allowance | | Unrealized investment gains (losses) on AFS securities with a credit allowance | | DAC, DSI, VOBA and future policy benefits adjustments on AFS securities | | Unrealized gains (losses) on hedging instruments | | Foreign currency translation and other adjustments | | Accumulated other comprehensive income (loss) | Balance at December 31, 2019 | $ | 3,102 |
| | $ | — |
| | $ | (879 | ) | | $ | 61 |
| | $ | (3 | ) | | $ | 2,281 |
| Adoption of accounting standards | 4 |
| | (4 | ) | | (6 | ) | | — |
| | — |
| | (6 | ) | Other comprehensive income (loss) before reclassifications | (5,762 | ) | | (273 | ) | | 1,352 |
| | 401 |
| | 9 |
| | (4,273 | ) | Less: Reclassification adjustments for gains (losses) realized in net income (loss)1 | 171 |
| | — |
| | (15 | ) | | — |
| | — |
| | 156 |
| Less: Income tax expense (benefit) | (1,128 | ) | | (53 | ) | | 287 |
| | 97 |
| | — |
| | (797 | ) | Less: Other comprehensive income (loss) attributable to NCI | (159 | ) | | — |
| | — |
| | (30 | ) | | 6 |
| | (183 | ) | Balance at March 31, 2020 | $ | (1,540 | ) | | $ | (224 | ) | | $ | 195 |
| | $ | 395 |
| | $ | — |
| | $ | (1,174 | ) | | | | | | | | | | | | | 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income (loss). |
| | | | | | | | | | | | | | | | | | | | | (In millions) | Unrealized investment gains (losses) on AFS securities | | DAC, DSI, VOBA and future policy benefits adjustments on AFS securities | | Unrealized gains (losses) on hedging instruments | | Foreign currency translation and other adjustments | | Accumulated other comprehensive income (loss) | Balance at December 31, 2018 | $ | (628 | ) | | $ | 121 |
| | $ | 39 |
| | $ | (4 | ) | | $ | (472 | ) | Other comprehensive income (loss) before reclassifications | 1,981 |
| | (509 | ) | | (8 | ) | | — |
| | 1,464 |
| Less: Reclassification adjustments for gains (losses) realized in net income (loss)1 | (7 | ) | | 2 |
| | — |
| | — |
| | (5 | ) | Less: Income tax expense (benefit) | 401 |
| | (108 | ) | | (2 | ) | | — |
| | 291 |
| Balance at March 31, 2019 | $ | 959 |
| | $ | (282 | ) | | $ | 33 |
| | $ | (4 | ) | | $ | 706 |
| | | | | | | | | | | 1 Recognized in investment related gains (losses) on the condensed consolidated statements of income (loss). |
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