Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Accumulated Other Comprehensive Income

Shareholders' equity included the following components of AOCI as of the dates indicated:


	December 31,
	2022		2021			2020
Fixed maturities, net of impairment	$	(3,294)	$	3,196		$	8,613

Derivatives(1)	125		79			76
DAC/VOBA adjustment on available-for-sale securities(2)	745		(768)		(3)	(2,071)
Premium deficiency reserve adjustment(2)	—		(14)			(460)
URR/Additional liability reserve adjustment (2)	(7)		6			(415)
Other	—		—			2
Unrealized capital gains (losses), before tax	(2,431)		2,499			5,745
Deferred income tax asset (liability)	634		(402)			(852)
Net unrealized capital gains (losses)	(1,797)		2,097			4,893
Pension and other postretirement benefits liability, net of tax	3		3			5
AOCI	$	(1,794)	$	2,100		$	4,898

(1) Gains and losses reported in AOCI from hedge transactions that resulted in the acquisition of an identified asset are reclassified into earnings in the same period or periods during which the asset acquired affects earnings. As of December 31, 2022, the portion of the AOCI that is expected to be reclassified into earnings within the next 12 months is $18.

(2) Upon adoption of ASU 2018-12 on January 1, 2023, the DAC/VOBA adjustments on available-for-sale securities, Premium deficiency reserve adjustment and URR adjustment on available-for-sale securities will be reversed as of the January 1, 2021 transition date and in subsequent periods.

(3) In connection with the closing of the Individual Life Transaction on January 4, 2021, the Company released stranded AOCI and reversed unrealized capital gains (losses) on available-for-sale securities associated with DAC for the disposed entities. In addition, the Company released the unrealized gains for the investments transferred associated with the reinsurance transactions entered into at closing.

Schedule of Amounts Recognized in Other Comprehensive Income

Changes in AOCI, including the reclassification adjustments recognized in the Consolidated Statements of Operations were as follows for the periods indicated:


	December 31, 2022
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(6,568)		$	1,379	$	(5,189)



Adjustments for amounts recognized in Net gains (losses) in the Consolidated Statements of Operations	78			(16)		62
DAC/VOBA	1,513		(1)	(318)		1,195
Premium deficiency reserve adjustment	14			(3)		11
URR adjustment	(12)			3		(9)
Change in unrealized gains (losses) on available-for-sale securities	(4,975)			1,045		(3,930)

Derivatives:
Derivatives	66		(2)	(14)		52
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations	(20)			4		(16)
Change in unrealized gains (losses) on derivatives	46			(10)		36




Change in Accumulated other comprehensive income (loss)	$	(4,929)		$	1,035	$	(3,894)

(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information.

(2) See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information.


	December 31, 2021
	Before-Tax Amount			Income Tax			After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(3,594)		$	525	(4)	$	(3,069)

Other	(3)			1			(2)

Adjustments for amounts recognized in Net gains (losses) in the Consolidated Statements of Operations	(1,823)			383			(1,440)
DAC/VOBA	1,303		(1)(5)	(274)			1,029
Premium deficiency reserve adjustment	446		(5)	(94)			352
URR/Additional liability reserve adjustment	420		(5)	(88)			332
Change in unrealized gains (losses) on available-for-sale securities	(3,251)			453			(2,798)

Derivatives:
Derivatives	24		(2)	(5)			19
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations	(21)			4			(17)
Change in unrealized gains (losses) on derivatives	3			(1)			2

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations	(2)		(3)	—			(2)
Change in pension and other postretirement benefits liability	(2)			—			(2)
Change in Accumulated other comprehensive income (loss)	$	(3,250)		$	452		$	(2,798)

(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information.

(2) See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information.

(3) See the Employee Benefit Arrangements Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs.

(4) The tax effect of $756 is offset by a $(231) stranded tax benefit release from AOCI to continuing operations. See the Income Taxes Note to these Consolidated Financial Statements for additional information.

(5) In connection with the closing of the Individual Life Transaction on January 4, 2021, the Company released stranded AOCI and reversed unrealized capital gains (losses) on available-for-sale securities. As a result, these amounts include balances related to disposed entities reported as discontinued operations.


	December 31, 2020
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	3,072		$	(645)	$	2,427

Other	2			—		2

Adjustments for amounts recognized in Net gains (losses) in the Consolidated Statements of Operations	(4)			1		(3)
DAC/VOBA	(573)		(1)	120		(453)
Premium deficiency reserve adjustment	(211)			44		(167)
URR/Additional liability reserve adjustment	(230)			48		(182)
Change in unrealized gains (losses) on available-for-sale securities	2,056			(432)		1,624

Derivatives:
Derivatives	(45)		(2)	9		(36)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations	(24)			5		(19)
Change in unrealized gains (losses) on derivatives	(69)			14		(55)

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations	(3)		(3)	1		(2)
Change in pension and other postretirement benefits liability	(3)			1		(2)
Change in Accumulated other comprehensive income (loss)	$	1,984		$	(417)	$	1,567

(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information.

(2) See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information.

(3) See the Employee Benefit Arrangements Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs.