Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2021

Accumulated Other Comprehensive Income [Abstract]

Accumulated other comprehensive income (AOCI) includes changes in unrealized gains and losses on investments, changes in pension obligations and changes in life deferred acquisition costs, life policy reserves and other as follows:


(Dollars in millions)	Three months ended March 31,
	2021						2020
	Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, beginning of period	$	1,026	$	215	$	811	$	590	$	123	$	467


OCI before investment gains and losses, net, recognized in net income	(193)		(41)		(152)		(399)		(84)		(315)
Investment gains and losses, net, recognized in net income	(3)		—		(3)		75		16		59
OCI	(196)		(41)		(155)		(324)		(68)		(256)
AOCI, end of period	$	830	$	174	$	656	$	266	$	55	$	211

Pension obligations:
AOCI, beginning of period	$	(41)	$	(7)	$	(34)	$	(9)	$	—	$	(9)
OCI excluding amortization recognized in net income	2		1		1		—		—		—
Amortization recognized in net income	2		—		2		1		—		1
OCI	4		1		3		1		—		1
AOCI, end of period	$	(37)	$	(6)	$	(31)	$	(8)	$	—	$	(8)

Life deferred acquisition costs, life policy reserves and other:
AOCI, beginning of period	$	(10)	$	(2)	$	(8)	$	(13)	$	(3)	$	(10)
OCI before investment gains and losses, net, recognized in net income	10		2		8		14		3		11
Investment gains and losses, net, recognized in net income	—		—		—		—		—		—
OCI	10		2		8		14		3		11
AOCI, end of period	$	—	$	—	$	—	$	1	$	—	$	1

Summary of AOCI:
AOCI, beginning of period	$	975	$	206	$	769	$	568	$	120	$	448


Investments OCI	(196)		(41)		(155)		(324)		(68)		(256)
Pension obligations OCI	4		1		3		1		—		1
Life deferred acquisition costs, life policy reserves and other OCI	10		2		8		14		3		11
Total OCI	(182)		(38)		(144)		(309)		(65)		(244)
AOCI, end of period	$	793	$	168	$	625	$	259	$	55	$	204

Investment gains and losses, net, and life deferred acquisition costs, life policy reserves and other investment gains and losses, net, are recorded in the investment gains and losses, net, line item in the condensed consolidated statements of income. Amortization on pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the condensed consolidated statements of income.