Reinsurance (Tables)

3 Months Ended

Mar. 31, 2024

Insurance [Abstract]

Summary of Assets Supporting Funds Withheld Arrangements

There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets:

	March 31, 2024				December 31, 2023
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value		Corresponding Accounting Policy
Fixed maturity securities - available-for-sale	$	14,656	$	14,656	$	15,204	$	15,204	Fair value through other comprehensive income
Fixed maturity securities - fair value option	4,283		4,283		4,212		4,212		Fair value through net investment income
Commercial mortgage loans	3,345		3,091		3,378		3,157		Amortized cost
Real estate investments	175		302		184		329		Amortized cost
Private equity funds/hedge funds	1,920		1,920		1,910		1,910		Fair value through net investment income
Policy loans	325		325		330		330		Amortized cost
Short-term Investments	161		161		129		129		Fair value through net investment income
Funds withheld investment assets	24,865		24,738		25,347		25,271
Derivative assets, net(a)	14		14		45		45		Fair value through realized gains (losses)
Other(b)	571		571		641		641		Amortized cost
Total	$	25,450	$	25,323	$	26,033	$	25,957

(a)    The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $14 million and $1 million, respectively, as of March 31, 2024. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $62 million and $6 million, respectively, as of December 31, 2023. These derivative assets and liabilities are fully collateralized either by cash or securities.

(b)    Primarily comprised of Cash and Accrued investment income.

The impact of the funds withheld arrangements with Fortitude Re was as follows:

	Three Months Ended March 31,
(in millions)	2024		2023
Net investment income - Fortitude Re funds withheld assets	$	332	$	394
Net realized gains (losses) on Fortitude Re funds withheld assets:
Net realized gains (losses) Fortitude Re funds withheld assets	(164)		20
Net realized gains (losses) Fortitude Re funds withheld embedded derivatives	22		(1,025)
Net realized losses on Fortitude Re funds withheld assets	(142)		(1,005)
Income (loss) before income tax benefit (expense)	190		(611)
Income tax benefit (expense)*	40		(128)
Net income (loss)	150		(483)
Change in unrealized appreciation (depreciation) of the invested assets supporting the Fortitude Re modco arrangement classified as available-for-sale*	(116)		451
Comprehensive income (loss)	$	34	$	(32)

* The income tax expense (benefit) and the tax impact in OCI was computed using the U.S. statutory tax rate of 21%.

Reinsurance Recoverable, Allowance for Credit Loss

The following table presents a rollforward of the reinsurance recoverable allowance:

	Three Months Ended March 31,
(in millions)	2024		2023
Balance, beginning of period	$	30	$	84
Current period provision for expected credit losses and disputes	(10)		(10)
Write-offs charged against the allowance for credit losses and disputes	(2)		—
Other changes	—		—
Balance, end of period	$	18	$	74