Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

The following table illustrates the effect of adopting ASU 2018-12 in the consolidated balance sheets:


(Dollars in millions)	December 31, 2023		December 31, 2022
			As originally reported		As adjusted		Difference
Reinsurance recoverable	$	651	$	640	$	665	$	25
Prepaid reinsurance premiums	55		79		51		(28)
Deferred policy acquisition costs	1,093		1,014		1,013		(1)
Total assets	32,769		29,736		29,732		(4)
Life policy and investment contract reserves	3,068		3,059		3,015		(44)
Deferred income tax	1,324		1,045		1,054		9
Total liabilities	20,671		19,205		19,170		(35)
Retained earnings	13,084		11,702		11,711		9
Accumulated other comprehensive income	(435)		(636)		(614)		22
Total shareholders' equity	12,098		10,531		10,562		31
Total liabilities and shareholders' equity	32,769		29,736		29,732		(4)

The following table illustrates the effect of adopting ASU 2018-12 in the consolidated statements of income and consolidated statements of comprehensive income:


(Dollars in millions, except per share data)	Years ended December 31,
	2023		2022						2021
			As originally reported		As adjusted		Difference		As originally reported		As adjusted		Difference
Earned premiums	$	7,958	$	7,219	$	7,225	$	6	$	6,482	$	6,478	$	(4)

Insurance losses and contract holders' benefits	5,274		5,012		5,019		7		3,936		3,909		(27)
Underwriting, acquisition and insurance expenses	2,384		2,162		2,162		—		1,951		1,946		(5)

Deferred income tax expense	223		(355)		(355)		—		477		483		6

Net Income (Loss)	1,843		(486)		(487)		(1)		2,946		2,968		22
Change in life policy reserves, reinsurance recoverable and other, net of tax	(34)		1		374		373		9		92		83
Other comprehensive income (loss)	179		(1,284)		(911)		373		(121)		(38)		83
Comprehensive Income (Loss)	2,022		(1,770)		(1,398)		372		2,825		2,930		105
Net income (loss) per share:
Basic	$	11.74	$	(3.06)	$	(3.06)	$	—	$	18.29	$	18.43	$	0.14
Diluted	11.66		(3.06)		(3.06)		—		18.10		18.24		0.14

The table below shows the ASU 2018-12 adoption impacts to the life policy and investment contract reserves as of January 1, 2021, (transition date), pre-tax:


(Dollars in millions)	Term		Whole life		Deferred annuity		Universal life		Other		Total
At January 1, 2021
Balance, pre-adoption at December 31, 2020	$	901	$	363	$	761	$	567	$	323	$	2,915
Removal of shadow adjustments	—		—		—		—		13		13
Net premiums in excess of gross premiums	14		1		—		—		—		15
Remeasurement at market value discount rates	372		245		—		—		—		617
Balance, post-adoption at January 1, 2021	$	1,287	$	609	$	761	$	567	$	336	$	3,560

The table below shows the ASU 2018-12 adoption impacts to the life reinsurance recoverable asset as of January 1, 2021, pre-tax:


(Dollars in millions)	Term		Whole life		Deferred annuity		Universal life		Other		Total
At January 1, 2021
Balance, pre-adoption at December 31, 2020	$	113	$	26	$	—	$	—	$	78	$	217
Remeasurement at market value discount rates	29		18		—		—		—		47
Other adjustments	20		1		—		2		—		23
Balance, post-adoption at January 1, 2021	$	162	$	45	$	—	$	2	$	78	$	287