Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2022

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 June 30,
	2022						2021
	Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, beginning of period	$	46	$	8	$	38	$	830	$	174	$	656


OCI before investment gains and losses, net, recognized in net income	(610)		(127)		(483)		141		28		113
Investment gains and losses, net, recognized in net income	—		—		—		(9)		(1)		(8)
OCI	(610)		(127)		(483)		132		27		105
AOCI, end of period	$	(564)	$	(119)	$	(445)	$	962	$	201	$	761

Pension obligations:
AOCI, beginning of period	$	27	$	7	$	20	$	(37)	$	(6)	$	(31)
OCI excluding amortization recognized in net income	—		—		—		—		—		—
Amortization recognized in net income	—		—		—		1		—		1
OCI	—		—		—		1		—		1
AOCI, end of period	$	27	$	7	$	20	$	(36)	$	(6)	$	(30)

Life deferred acquisition costs, life policy reserves and other:
AOCI, beginning of period	$	1	$	—	$	1	$	—	$	—	$	—
OCI before investment gains and losses, net, recognized in net income	1		—		1		—		—		—
Investment gains and losses, net, recognized in net income	—		—		—		—		—		—
OCI	1		—		1		—		—		—
AOCI, end of period	$	2	$	—	$	2	$	—	$	—	$	—

Summary of AOCI:
AOCI, beginning of period	$	74	$	15	$	59	$	793	$	168	$	625


Investments OCI	(610)		(127)		(483)		132		27		105
Pension obligations OCI	—		—		—		1		—		1
Life deferred acquisition costs, life policy reserves and other OCI	1		—		1		—		—		—
Total OCI	(609)		(127)		(482)		133		27		106
AOCI, end of period	$	(535)	$	(112)	$	(423)	$	926	$	195	$	731


(Dollars in millions)	Six months ended June 30,
	2022						2021
	Before tax		Income tax		Net		Before tax		Income tax		Net
Investments:
AOCI, beginning of period	$	792	$	165	$	627	$	1,026	$	215	$	811


OCI before investment gains and losses, net, recognized in net income	(1,353)		(284)		(1,069)		(52)		(11)		(41)
Investment gains and losses, net, recognized in net income	(3)		—		(3)		(12)		(3)		(9)
OCI	(1,356)		(284)		(1,072)		(64)		(14)		(50)
AOCI, end of period	$	(564)	$	(119)	$	(445)	$	962	$	201	$	761

Pension obligations:
AOCI, beginning of period	$	27	$	7	$	20	$	(41)	$	(7)	$	(34)
OCI excluding amortization recognized in net income	—		—		—		2		—		2
Amortization recognized in net income	—		—		—		3		1		2
OCI	—		—		—		5		1		4
AOCI, end of period	$	27	$	7	$	20	$	(36)	$	(6)	$	(30)

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

Summary of AOCI:
AOCI, beginning of period	$	820	$	172	$	648	$	975	$	206	$	769


Investments OCI	(1,356)		(284)		(1,072)		(64)		(14)		(50)
Pension obligations OCI	—		—		—		5		1		4
Life deferred acquisition costs, life policy reserves and other OCI	1		—		1		10		2		8
Total OCI	(1,355)		(284)		(1,071)		(49)		(11)		(38)
AOCI, end of period	$	(535)	$	(112)	$	(423)	$	926	$	195	$	731

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.