10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

OF 1934

For the quarterly period ended March 31, 2023

OR

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the transition period from to

Commission file number

001-36129 (OneMain Holdings, Inc.)

001-06155 (OneMain Finance Corporation)

ONEMAIN HOLDINGS, INC.

ONEMAIN FINANCE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware (OneMain Holdings, Inc.)	27-3379612
Indiana (OneMain Finance Corporation)	35-0416090
(State of incorporation)	(I.R.S. Employer Identification No.)

601 N.W. Second Street, Evansville, IN 47708

(Address of principal executive offices) (Zip code)

(812) 424-8031

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

OneMain Holdings, Inc.:
Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	OMF	New York Stock Exchange
OneMain Finance Corporation: None

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

OneMain Holdings, Inc.                     Yes ☑ No ☐

OneMain Finance Corporation                     Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

OneMain Holdings, Inc.                     Yes ☑ No ☐

OneMain Finance Corporation                     Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

OneMain Holdings, Inc.:
Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐	Emerging growth company	☐
OneMain Finance Corporation:
Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☑	Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

OneMain Holdings, Inc.                  ☐

OneMain Finance Corporation                  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

OneMain Holdings, Inc.                 Yes ☐ No ☑

OneMain Finance Corporation                 Yes ☐ No ☑

At April 19, 2023, there were 120,587,214 shares of OneMain Holdings, Inc’s common stock, $0.01 par value, outstanding.

At April 19, 2023, there were 10,160,021 shares of OneMain Finance Corporation’s common stock, $0.50 par value, outstanding.

2

TABLE OF CONTENTS

GLOSSARY		4
PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements of OneMain Holdings, Inc. and Subsidiaries (Unaudited):
	Condensed Consolidated Balance Sheets	6
	Condensed Consolidated Statements of Operations	7
	Condensed Consolidated Statements of Comprehensive Income	8
	Condensed Consolidated Statements of Shareholders’ Equity	9
	Condensed Consolidated Statements of Cash Flows	10
	Financial Statements of OneMain Finance Corporation and Subsidiaries (Unaudited):
	Condensed Consolidated Balance Sheets	11
	Condensed Consolidated Statements of Operations	12
	Condensed Consolidated Statements of Comprehensive Income	13
	Condensed Consolidated Statements of Shareholder’s Equity	14
	Condensed Consolidated Statements of Cash Flows	15
	Notes to the Condensed Consolidated Financial Statements	16
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	43
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	60
	Controls and Procedures of OneMain Holdings, Inc.	60
	Controls and Procedures of OneMain Finance Corporation	60
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	61
Item 1A.	Risk Factors	61
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	61
Item 6.	Exhibit Index	62
SIGNATURES
	OneMain Holdings, Inc. Signature	63
	OneMain Finance Corporation Signature	64

3

GLOSSARY

Terms and abbreviations used in this report are defined below.

Term or Abbreviation	Definition
30-89 Delinquency ratio	net finance receivables 30-89 days past due as a percentage of net finance receivables
ABS	asset-backed securities
Adjusted pretax income (loss)	a non-GAAP financial measure used by management as a key performance measure of our segment
AETR	annual effective tax rate
AHL	American Health and Life Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC
Annual Report	the Annual Report on Form 10-K of OMH and OMFC for the fiscal year ended December 31, 2022, filed with the SEC on February 10, 2023
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
ASU 2018-12	The accounting standard issued by FASB in August of 2018, Financial Services-Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts
ASU 2022-02	The accounting standard issued by FASB in March of 2022, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures
Average daily debt balance	average of debt for each day in the period
Average net receivables	average of net finance receivables for each day in the period
Base Indenture	indenture, dated as of December 3, 2014, by and between OMFC and Wilmington Trust, National Association, as trustee, and guaranteed by OMH
Board	the OMH Board of Directors
C&I	Consumer and Insurance
CDO	collateralized debt obligations
CFPB	Consumer Financial Protection Bureau
CMBS	commercial mortgage-backed securities
Corporate AMT	Corporate Alternative Minimum Tax, as implemented by the Inflation Reduction Act
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
GAAP	generally accepted accounting principles in the United States of America
GAP	guaranteed asset protection
Gross charge-off ratio	annualized gross charge-offs as a percentage of average net receivables
Gross finance receivables	the unpaid principal balance of our personal loans. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the principal balance and billed interest and fees
Indenture	the Base Indenture, together with all subsequent Supplemental Indentures
IRA	Inflation Reduction Act, signed into law on August 16, 2022
Junior Subordinated Debenture	$350 million aggregate principal amount of 60-year junior subordinated debt issued by OMFC under an indenture dated January 22, 2007, by and between OMFC and Deutsche Bank Trust Company, as trustee, and guaranteed by OMH
Managed receivables	consist of our C&I net finance receivables and finance receivables serviced for our whole loan sale partners
Modified finance receivables	finance receivable contractually modified, subsequent to the adoption of ASU 2022-02 on January 1, 2023, as a result of the borrower’s financial difficulties
Moody’s	Moody’s Investors Service, Inc.
Net charge-off ratio	annualized net charge-offs as a percentage of average net receivables
Net interest income	interest income less interest expense
ODART	OneMain Direct Auto Receivables Trust

4

Term or Abbreviation	Definition
OMFC	OneMain Finance Corporation
OMFH	OneMain Financial Holdings, LLC
OMFIT	OneMain Financial Issuance Trust
OMH	OneMain Holdings, Inc.
OneMain	OneMain Holdings, Inc. and OneMain Finance Corporation, collectively with their subsidiaries
Open accounts	consist of credit card accounts that are not charged-off or closed accounts with a zero balance as of period end
Other securities	primarily consist of equity securities and those securities for which the fair value option was elected. Other securities recognize unrealized gains and losses in investment revenues
Pretax capital generation	a non-GAAP financial measure used by management as a key performance measure of our segment, defined as C&I adjusted pretax income (loss) excluding the change in C&I allowance for finance receivable losses
Private Secured Term Funding	$350 million aggregate principal amount of debt collateralized by our personal loans issued on April 25, 2022
Purchase volume	consists of credit card purchase transactions in the period, including cash advances, net of returns
Recovery ratio	annualized recoveries on net charge-offs as a percentage of average net receivables
Revenue yield	annualized credit card finance charges, net of merchant and ancillary servicing fees, as a percentage of average net credit card receivables
RMBS	residential mortgage-backed securities
SEC	U.S. Securities and Exchange Commission
Securities Act	Securities Act of 1933, as amended
Segment Accounting Basis	a basis used to report the operating results of our C&I segment and our Other components, which reflects our allocation methodologies for certain costs and excludes the impact of applying purchase accounting
SpringCastle Portfolio	loans the Company previously owned and now services on behalf of a third party
Supplemental Indentures	collectively, the following supplements to the Base Indenture: Fifth Supplemental Indenture, dated as of March 12, 2018; Sixth Supplemental Indenture, dated as of May 11, 2018; Seventh Supplemental Indenture, dated as of February 22, 2019; Eighth Supplemental Indenture, dated as of May 9, 2019; Ninth Supplemental Indenture, dated as of November 7, 2019; Eleventh Supplemental Indenture, dated as of December 17, 2020; Twelfth Supplemental Indenture, dated as of June 22, 2021; and Thirteenth Supplemental Indenture, dated as of August 11, 2021
Tax Act	Public Law 115-97 amending the Internal Revenue Code of 1986
TDR finance receivables	troubled debt restructured finance receivables. Debt restructuring, prior to the adoption of ASU 2022-02 on January 1, 2023, in which a concession was granted to the borrower as a result of economic or legal reasons related to the borrower’s financial difficulties
Triton	Triton Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC
Unearned finance charges	the amount of interest that is capitalized at time of origination on a precompute loan that will be earned over the remaining contractual life of the loan
Unencumbered loans	unencumbered gross finance receivables excluding credit cards
Unsecured corporate revolver	unsecured revolver with a maximum borrowing capacity of $1.25 billion, payable and due on October 25, 2026
Unsecured Notes	the notes, on a senior unsecured basis, issued by OMFC and guaranteed by OMH
VIEs	variable interest entities
Weighted average interest rate	annualized interest expense as a percentage of average debt
XBRL	eXtensible Business Reporting Language
Yield	annualized finance charges as a percentage of average net receivables

5

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(dollars in millions, except par value amount)	March 31, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	544	$	498
Investment securities (includes available-for-sale securities with a fair value of $1.7 billion and an amortized cost basis of $1.9 billion in 2023 and 2022)	1,786		1,800
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion in 2023 and $10.4 billion in 2022)	19,809		19,986
Unearned insurance premium and claim reserves	(740)		(749)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022)	(2,298)		(2,311)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	16,771		16,926
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022)	531		461
Goodwill	1,437		1,437
Other intangible assets	261		261
Other assets	1,113		1,154
Total assets	$	22,443	$	22,537
Liabilities and Shareholders’ Equity
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022)	$	18,206	$	18,281
Insurance claims and policyholder liabilities	615		620
Deferred and accrued taxes	22		5
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022)	519		616
Total liabilities	19,362		19,522
Contingencies (Note 12)
Shareholders’ equity:
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 120,587,214 and 121,042,125 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	1		1
Additional paid-in capital	1,693		1,689
Accumulated other comprehensive loss	(108)		(127)
Retained earnings	2,188		2,119
Treasury stock, at cost; 14,475,790 and 13,813,476 shares at March 31, 2023 and December 31, 2022, respectively	(693)		(667)
Total shareholders’ equity	3,081		3,015
Total liabilities and shareholders’ equity	$	22,443	$	22,537

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

6

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

	Three Months Ended March 31,
(dollars in millions, except per share amounts)	2023		2022
Interest income	$	1,094	$	1,089
Interest expense	239		219
Net interest income	855		870
Provision for finance receivable losses	385		238
Net interest income after provision for finance receivable losses	470		632
Other revenues:
Insurance	111		111
Investment	25		15
Gain on sales of finance receivables	17		17
Other	24		19
Total other revenues	177		162
Other expenses:
Salaries and benefits	212		205
Other operating expenses	153		148
Insurance policy benefits and claims	47		42
Total other expenses	412		395
Income before income taxes	235		399
Income taxes	56		96
Net income	$	179	$	303
Share Data:
Weighted average number of shares outstanding:
Basic	120,765,661		127,075,714
Diluted	120,969,891		127,463,027
Earnings per share:
Basic	$	1.48	$	2.38
Diluted	$	1.48	$	2.38

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

7

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended March 31,
(dollars in millions)	2023		2022
Net income	$	179	$	303
Other comprehensive income (loss):
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	24		(105)
Foreign currency translation adjustments	—		2
Changes in discount rate for insurance claims and policyholder liabilities	4		32
Other	(3)		13
Income tax effect:
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	(5)		24
Foreign currency translation adjustments	—		(1)
Changes in discount rate for insurance claims and policyholder liabilities	(1)		(7)
Other	—		(3)
Other comprehensive income (loss), net of tax, before reclassification adjustments	19		(45)
Reclassification adjustments included in net income, net of tax:
Net realized losses on available-for-sale securities, net of tax	—		(2)
Reclassification adjustments included in net income, net of tax	—		(2)
Other comprehensive income (loss), net of tax	19		(47)
Comprehensive income	$	198	$	256

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

8

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

	OneMain Holdings, Inc. Shareholders’ Equity
(dollars in millions)	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Treasury Stock		Total Shareholders’ Equity
Three Months Ended March 31, 2023
Balance, January 1, 2023	$	1	$	1,689	$	(127)	$	2,119	$	(667)	$	3,015
Net impact of adoption of ASU 2022-02 (see Note 2)	—		—		—		12		—		12
Balance, January 1, 2023 (post-adoption)	1		1,689		(127)		2,131		(667)		3,027
Common stock repurchased	—		—		—		—		(27)		(27)
Treasury stock issued	—		—		—		—		1		1
Share-based compensation expense, net of forfeitures	—		12		—		—		—		12
Withholding tax on share-based compensation	—		(8)		—		—		—		(8)
Other comprehensive income	—		—		19		—		—		19
Cash dividends *	—		—		—		(122)		—		(122)
Net income	—		—		—		179		—		179
Balance, March 31, 2023	$	1	$	1,693	$	(108)	$	2,188	$	(693)	$	3,081
Three Months Ended March 31, 2022
Balance, January 1, 2022	$	1	$	1,672	$	5	$	1,727	$	(368)	$	3,037
Common stock repurchased	—		—		—		—		(110)		(110)
Share-based compensation expense, net of forfeitures	—		12		—		—		—		12
Withholding tax on share-based compensation	—		(12)		—		—		—		(12)
Other comprehensive loss	—		—		(47)		—		—		(47)
Cash dividends *	—		—		—		(123)		—		(123)
Net income	—		—		—		303		—		303
Balance, March 31, 2022	$	1	$	1,672	$	(42)	$	1,907	$	(478)	$	3,060
* Cash dividends declared were $1.00 per share and $0.95 per share during the three months ended March 31, 2023 and 2022, respectively.

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

9

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
(dollars in millions)	2023		2022
Cash flows from operating activities
Net income	$	179	$	303
Reconciling adjustments:
Provision for finance receivable losses	385		238
Depreciation and amortization	61		61
Deferred income tax charge	9		22
Share-based compensation expense, net of forfeitures	12		12
Gain on sales of finance receivables	(17)		(17)
Other	(1)		(2)
Cash flows due to changes in other assets and other liabilities	(66)		(65)
Net cash provided by operating activities	562		552
Cash flows from investing activities
Net principal originations and purchases of finance receivables	(432)		(245)
Proceeds from sales of finance receivables	200		200
Available-for-sale securities purchased	(44)		(90)
Available-for-sale securities called, sold, and matured	88		196
Other securities purchased	(2)		(2)
Other securities called, sold, and matured	2		7
Other, net	(16)		(16)
Net cash provided by (used for) investing activities	(204)		50
Cash flows from financing activities
Proceeds from issuance and borrowings of long-term debt, net of issuance costs	843		198
Repayments and repurchases of long-term debt	(928)		(398)
Cash dividends	(123)		(126)
Common stock repurchased	(27)		(110)
Treasury stock issued	1		—
Withholding tax on share-based compensation	(8)		(12)
Net cash used for financing activities	(242)		(448)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents	116		154
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period	959		1,017
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	$	1,075	$	1,171
Supplemental cash flow information
Cash and cash equivalents	$	544	$	640
Restricted cash and restricted cash equivalents	531		531
Total cash and cash equivalents and restricted cash and restricted cash equivalents	$	1,075	$	1,171

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our secured transactions.

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

10

ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(dollars in millions, except par value amount)	March 31, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	533	$	490
Investment securities (includes available-for-sale securities with a fair value of $1.7 billion and an amortized cost basis of $1.9 billion in 2023 and 2022)	1,786		1,800
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion  in 2023 and $10.4 billion in 2022)	19,809		19,986
Unearned insurance premium and claim reserves	(740)		(749)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022)	(2,298)		(2,311)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	16,771		16,926
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash     equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022)	531		461
Goodwill	1,437		1,437
Other intangible assets	261		261
Other assets	1,113		1,152
Total assets	$	22,432	$	22,527
Liabilities and Shareholder’s Equity
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022)	$	18,206	$	18,281
Insurance claims and policyholder liabilities	615		620
Deferred and accrued taxes	23		5
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022)	520		617
Total liabilities	19,364		19,523
Contingencies (Note 12)
Shareholder’s equity:
Common stock, par value $0.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued     and outstanding at March 31, 2023 and December 31, 2022	5		5
Additional paid-in capital	1,937		1,933
Accumulated other comprehensive loss	(108)		(127)
Retained earnings	1,234		1,193
Total shareholder’s equity	3,068		3,004
Total liabilities and shareholder’s equity	$	22,432	$	22,527

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

11

ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

	Three Months Ended March 31,
(dollars in millions)	2023		2022
Interest income	$	1,094	$	1,089
Interest expense	239		219
Net interest income	855		870
Provision for finance receivable losses	385		238
Net interest income after provision for finance receivable losses	470		632
Other revenues:
Insurance	111		111
Investment	25		15
Gain on sales of finance receivables	17		17
Other	24		19
Total other revenues	177		162
Other expenses:
Salaries and benefits	212		205
Other operating expenses	153		148
Insurance policy benefits and claims	47		42
Total other expenses	412		395
Income before income taxes	235		399
Income taxes	56		96
Net income	$	179	$	303

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

12

ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended March 31,
(dollars in millions)	2023		2022
Net income	$	179	$	303
Other comprehensive income (loss):
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	24		(105)
Foreign currency translation adjustments	—		2
Changes in discount rate for insurance claims and policyholder liabilities	4		32
Other	(3)		13
Income tax effect:
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	(5)		24
Foreign currency translation adjustments	—		(1)
Changes in discount rate for insurance claims and policyholder liabilities	(1)		(7)
Other	—		(3)
Other comprehensive income (loss), net of tax, before reclassification adjustments	19		(45)
Reclassification adjustments included in net income, net of tax:
Net realized losses on available-for-sale securities, net of tax	—		(2)
Reclassification adjustments included in net income, net of tax	—		(2)
Other comprehensive income (loss), net of tax	19		(47)
Comprehensive income	$	198	$	256

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

13

ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholder’s Equity (Unaudited)

	OneMain Finance Corporation Shareholder's Equity
(dollars in millions)	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Shareholder’s Equity
Three Months Ended March 31, 2023
Balance, January 1, 2023	$	5	$	1,933	$	(127)	$	1,193	$	3,004
Net impact of adoption of ASU 2022-02 (see Note 2)	—		—		—		12		12
Balance, January 1, 2023 (post-adoption)	5		1,933		(127)		1,205		3,016
Share-based compensation expense, net of forfeitures	—		12		—		—		12
Withholding tax on share-based compensation	—		(8)		—		—		(8)
Other comprehensive income	—		—		19		—		19
Cash dividends	—		—		—		(150)		(150)
Net income	—		—		—		179		179
Balance, March 31, 2023	$	5	$	1,937	$	(108)	$	1,234	$	3,068
Three Months Ended March 31, 2022
Balance, January 1, 2022	$	5	$	1,916	$	5	$	1,078	$	3,004
Share-based compensation expense, net of forfeitures	—		12		—		—		12
Withholding tax on share-based compensation	—		(12)		—		—		(12)
Other comprehensive loss	—		—		(47)		—		(47)
Cash dividends	—		—		—		(223)		(223)
Net income	—		—		—		303		303
Balance, March 31, 2022	$	5	$	1,916	$	(42)	$	1,158	$	3,037

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

14

ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
(dollars in millions)	2023		2022
Cash flows from operating activities
Net income	$	179	$	303
Reconciling adjustments:
Provision for finance receivable losses	385		238
Depreciation and amortization	61		61
Deferred income tax charge	9		22
Share-based compensation expense, net of forfeitures	12		12
Gain on sales of finance receivables	(17)		(17)
Other	(1)		(2)
Cash flows due to changes in other assets and other liabilities	(66)		(64)
Net cash provided by operating activities	562		553
Cash flows from investing activities
Net principal originations and purchases of finance receivables	(432)		(245)
Proceeds from sales of finance receivables	200		200
Available-for-sale securities purchased	(44)		(90)
Available-for-sale securities called, sold, and matured	88		196
Other securities purchased	(2)		(2)
Other securities called, sold, and matured	2		7
Other, net	(16)		(16)
Net cash provided by (used for) investing activities	(204)		50
Cash flows from financing activities
Proceeds from issuance and borrowings of long-term debt, net of issuance costs	843		198
Repayments and repurchases of long-term debt	(928)		(398)
Cash dividends	(152)		(226)
Withholding tax on share-based compensation	(8)		(12)
Net cash used for financing activities	(245)		(438)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents	113		165
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period	951		986
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	$	1,064	$	1,151
Supplemental cash flow information
Cash and cash equivalents	$	533	$	620
Restricted cash and restricted cash equivalents	531		531
Total cash and cash equivalents and restricted cash and restricted cash equivalents	$	1,064	$	1,151

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our secured transactions.

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

15

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

March 31, 2023

1. Business and Basis of Presentation

OneMain Holdings, Inc. (“OMH”), and its wholly owned direct subsidiary, OneMain Finance Corporation (“OMFC”) are financial services holding companies whose subsidiaries engage in the consumer finance and insurance businesses.

The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this filing relates to both OMH and OMFC, except where otherwise indicated. OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “OneMain,” “we,” “us,” or “our.”

BASIS OF PRESENTATION

We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.

We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date.

The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report. We follow the same significant accounting policies for our interim reporting except for the new accounting pronouncements subsequently adopted and disclosed in Note 2. To conform to the 2023 presentation, we reclassified certain items in prior periods of our condensed consolidated financial statements.

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2. Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Insurance

In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. The ASU requires the assumptions used to measure the liability for future policy benefits to be updated at least annually. The guidance prescribes the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income.

The amendments in this ASU became effective for the Company beginning January 1, 2023 and we adopted using the modified retrospective transition method. This ASU required a transition date of January 1, 2021 and resulted in recasting prior periods.

The effects of the adoption of ASU 2018-12 to our condensed consolidated balance sheets were as follows:

(dollars in millions)	As Reported		ASU 2018-12 Adjustment		As Recast
December 31, 2022
Other assets (OMH only)	$	1,150	$	4	$	1,154
Other assets (OMFC only)	1,148		4		1,152
Insurance claims and policyholder liabilities	602		18		620
Accumulated other comprehensive loss	(119)		(8)		(127)
Retained earnings (OMH only)	2,125		(6)		2,119
Retained earnings (OMFC only)	1,199		(6)		1,193
March 31, 2022
Other assets (OMH only)	$	981	$	8	$	989
Other assets (OMFC only)	980		8		988
Insurance claims and policyholder liabilities	621		37		658
Accumulated other comprehensive loss	(11)		(31)		(42)
Retained earnings (OMH only)	1,905		2		1,907
Retained earnings (OMFC only)	1,156		2		1,158
December 31, 2021
Other assets (OMH only)	$	1,003	$	16	$	1,019
Other assets (OMFC only)	1,001		16		1,017
Insurance claims and policyholder liabilities	621		72		693
Accumulated other comprehensive income	61		(56)		5
January 1, 2021
Other assets (OMH and OMFC)	$	1,054	$	21	$	1,075
Insurance claims and policyholder liabilities	621		97		718
Accumulated other comprehensive income	94		(76)		18

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The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of operations were as follows:

(dollars in millions, except per share amounts)	As Reported		ASU 2018-12 Adjustment		As Recast
Three Months Ended March 31, 2022
Insurance policy benefits and claims	$	45	$	(3)	$	42
Income before income taxes	396		3		399
Income taxes	95		1		96
Net income	301		2		303
Basic EPS (OMH only)	2.37		0.01		2.38
Diluted EPS (OMH only)	2.36		0.02		2.38

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of comprehensive income were as follows:

(dollars in millions)	As Reported		ASU 2018-12 Adjustment		As Recast
Three Months Ended March 31, 2022
Comprehensive income	$	229	$	27	$	256

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of cash flows were as follows:

(dollars in millions)	As Reported		ASU 2018-12 Adjustment		As Recast
Three Months Ended March 31, 2022
Net income	$	301	$	2	$	303
Deferred income tax charge	21		1		22
Cash flows due to changes in other assets and other liabilities (OMH only)	(62)		(3)		(65)
Cash flows due to changes in other assets and other liabilities (OMFC only)	(61)		(3)		(64)

As a result of the adoption of ASU 2018-12, our significant accounting policy related to long-duration insurance contracts for policy and claim reserves has changed to reflect the requirements of the new standard. See below for the updated significant accounting policy as of the transition date of January 1, 2021.

Policy and Claim Reserves

Policy reserves are established for our long-duration contracts. The liability for future policy benefits is the present value of estimated future policy benefits to be paid to or on behalf of policyholders less the present value of estimated future net premiums to be collected from policyholders. To estimate the liability, we make assumptions for mortality, morbidity, lapses, and the discount rate.

At least annually, we update our estimate of the liability with actual experience and review our cash flow assumptions. The updated liability is discounted at the original discount rate at contract inception, and the change in the balance is recognized as a remeasurement gain or loss and included in Insurance policy benefits and claims in our consolidated statements of operations.

The discount rate assumption is the equivalent of an upper-medium grade fixed-income instrument yield. To determine the original discount rate at contract inception, we use a weighted average rate based on a forward yield curve over the contract issue year. At each reporting period, the liability is remeasured using the current discount rate and the change in the liability due to the discount rate is recognized in Accumulated other comprehensive income (loss) in our consolidated balance sheets.

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Financial Instruments

In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables.

We adopted the amendments in this ASU as of January 1, 2023 using the modified retrospective transition method.

Upon adoption, we recorded a decrease to the allowance for finance receivable losses of $16 million, a decrease to deferred tax assets of $4 million and a one-time corresponding cumulative increase to retained earnings, net of tax, of $12 million in our consolidated balance sheets as of January 1, 2023.

As a result of the adoption of ASU 2022-02, several of our significant accounting policies have changed to reflect the requirements of the new standard. See below for the updated significant accounting policies as of January 1, 2023.

Troubled Debt Restructured Finance Receivables

ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors. As a result of the adoption of this ASU, the accounting for TDRs is no longer applicable for periods beginning on or after January 1, 2023.

Modified Finance Receivables to Borrowers Experiencing Financial Difficulty

We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty, participating in a counseling or settlement arrangement, or are in bankruptcy. When we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties, we classify that receivable as a modified finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future.

When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce the interest rate, extend the term, defer or forgive past due interest, or forgive principal. As part of the modification, we may require qualifying payments before the accounts are generally brought current for delinquency reporting. In addition, for principal forgiveness, we may require future payment performance by the borrower under the modified terms before the balances are contractually forgiven. We fully reserve for any potential principal forgiveness in our allowance for finance receivable losses.

Account modifications that are deemed to be a modified finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses.

Allowance for Finance Receivable Losses

We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment.

We estimate the allowance for finance receivable losses primarily on historical loss experience using a cumulative loss model applied to our personal loan portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our personal loans are primarily segmented in the loss model by contractual delinquency status.

Other attributes in the model include loan modification status, collateral mix and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term. Our methodology relies on historical loss experience to forecast the corresponding future outcomes. These patterns are then applied to the current portfolio to obtain an estimate of future losses. We also consider key economic trends including unemployment rates. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. No new volume is assumed. Personal loan renewals are a significant piece of our new volume and are considered a terminal event of the previous loan.

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For our personal loans, we have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charge amounts previously accrued after four contractual payments become past due. For credit cards, we measure an allowance on uncollected finance charges, but do not measure an allowance on the unfunded portion of the credit card lines as the accounts are unconditionally cancellable.

Management exercises its judgment when determining the amount of allowance for finance receivable losses. Our judgment is based on quantitative analyses, qualitative factors (such as recent portfolio, industry, and other economic trends), and experience in the consumer finance industry. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning.

We generally charge off to the allowance for finance receivable losses on personal loans and credit cards that are beyond seven payments (approximately 180 days) past due. Exceptions include accounts in bankruptcy, which are generally charged off at the earlier of notice of discharge or when the customer becomes seven payments past due, and accounts of deceased borrowers, which are generally charged off at the time of notice. Generally, we start repossession of any titled personal property when the customer becomes two payments (approximately 30 days) past due and may charge off prior to the account becoming seven payments (approximately 180 days) past due.

We may renew delinquent secured or unsecured personal loan accounts if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the renewed loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit.

See Notes 3 and 4 for additional information on the adoption of ASU 2022-02.

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3. Finance Receivables

Our finance receivables consist of personal loans and credit cards. Personal loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles, other titled collateral, or are unsecured. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured.

Components of our net finance receivables were as follows:

(dollars in millions)	Personal Loans		Credit Cards		Total
March 31, 2023
Gross finance receivables *	$	19,444	$	121	$	19,565
Unearned fees	(215)		—		(215)
Accrued finance charges and fees	276		—		276
Deferred origination costs	182		1		183
Total	$	19,687	$	122	$	19,809
December 31, 2022
Gross finance receivables *	$	19,615	$	107	$	19,722
Unearned fees	(220)		—		(220)
Accrued finance charges and fees	299		—		299
Deferred origination costs	185		—		185
Total	$	19,879	$	107	$	19,986

* Personal loan gross finance receivables equal the unpaid principal balance. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the principal balance and billed interest and fees.

WHOLE LOAN SALE TRANSACTIONS

As of March 31, 2023, we have whole loan sale flow agreements with third parties, with remaining terms of less than one year, in which we agreed to sell a combined total of $135 million gross receivables per quarter of newly originated unsecured personal loans along with any associated accrued interest. These unsecured personal loans are derecognized from our balance sheet at the time of sale. We service the personal loans sold and are entitled to a servicing fee and other fees commensurate with the services performed as part of the agreements. The gain on sales and servicing fees are recorded in Other revenues in our condensed consolidated statements of operations. We sold $180 million of gross finance receivables during the three months ended March 31, 2023 and 2022. The gain on the sales were $17 million during the three months ended March 31, 2023 and 2022.

CREDIT QUALITY INDICATOR

We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio.

When personal loans are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and move collection of these accounts to our central collection operations. We consider our personal loans to be nonperforming at 90 days or more contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. For our personal loans, we reversed net accrued finance charges of $37 million and $27 million during the three months ended March 31, 2023 and 2022, respectively.

Finance charges recognized from the contractual interest portion of payments received on nonaccrual personal loans totaled $6 million and $4 million during the three months ended March 31, 2023 and 2022, respectively. All personal loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses.

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We accrue finance charges and fees on credit cards until charge-off at approximately 180 days past due, at which point we reverse finance charges and fees previously accrued. For credit cards, net accrued finance charges and fees reversed for the three months ended March 31, 2023 and 2022 were immaterial.

The following tables below are a summary of our personal loans by the year of origination and number of days delinquent:

(dollars in millions)	2023		2022		2021		2020		2019		Prior		Total
March 31, 2023
Performing
Current	$	2,641	$	9,224	$	4,195	$	1,464	$	861	$	260	$	18,645
30-59 days past due	3		137		98		31		19		9		297
60-89 days past due	—		98		72		22		13		6		211
Total performing	2,644		9,459		4,365		1,517		893		275		19,153
Nonperforming (Nonaccrual)
90+ days past due	—		217		206		61		35		15		534
Total	$	2,644	$	9,676	$	4,571	$	1,578	$	928	$	290	$	19,687
Gross charge-offs	$	—	$	139	$	199	$	59	$	34	$	14	$	445

(dollars in millions)	2022		2021		2020		2019		2018		Prior		Total
December 31, 2022
Performing
Current	$	10,614	$	4,927	$	1,758	$	1,081	$	240	$	105	$	18,725
30-59 days past due	136		136		43		28		9		5		357
60-89 days past due	92		101		32		19		6		3		253
Total performing	10,842		5,164		1,833		1,128		255		113		19,335
Nonperforming (Nonaccrual)
90+ days past due	160		246		74		44		13		7		544
Total	$	11,002	$	5,410	$	1,907	$	1,172	$	268	$	120	$	19,879

The following is a summary of credit cards by number of days delinquent:

(dollars in millions)	March 31, 2023		December 31, 2022
Current	$	106	$	93
30-59 days past due	4		3
60-89 days past due	3		3
90+ days past due	9		8
Total	$	122	$	107

There were no credit cards that were converted to term loans at March 31, 2023 or December 31, 2022.

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MODIFIED FINANCE RECEIVABLES TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

Information regarding modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:

(dollars in millions)	Three Months Ended March 31, 2023
Interest rate reduction and term extension	$	126
Interest rate reduction and principal forgiveness	96
Payment delays	—
Total modifications to borrowers experiencing financial difficulties	$	222
Modifications as a percent of net finance receivables	1.13		%

Information regarding the financial effect of modifications to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:

(dollars in millions)	Three Months Ended March 31, 2023
Weighted-average interest rate reduction	21.32		%
Weighted-average term extension (months)	19
Principal/interest forgiveness	$	11

Information regarding the performance of modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:

(dollars in millions)	March 31, 2023
Current	$	159
30-59 days past due	27
60-89 days past due	14
90+ days past due	22
Total	$	222

There were no modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, and for which there was a default during the period to cause the modified finance receivable to be considered nonperforming (90 days or more past due).

See Notes 2 and 4 for additional information on the adoption of ASU 2022-02.

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TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES PRIOR TO ADOPTION OF ASU 2022-02

ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors. Due to the adoption of this ASU, the following disclosures related to troubled debt restructuring finance receivables are no longer applicable for reporting periods beginning in 2023.

Information regarding TDR finance receivables were as follows:

(dollars in millions)	December 31, 2022
TDR gross finance receivables	$	898
TDR net finance receivables *	904
Allowance for TDR finance receivable losses	369

*    TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs.

There were no credit cards classified as TDR finance receivables at December 31, 2022.

Information regarding the new volume of the TDR finance receivables were as follows:

(dollars in millions)	Three Months Ended March 31, 2022
Pre-modification TDR net finance receivables	$	134
Post-modification TDR net finance receivables:
Rate reduction	87
Other *	47
Total post-modification TDR net finance receivables	$	134
Number of TDR accounts	16,165

*    “Other” modifications primarily consist of loans with both rate reductions and the potential of principal forgiveness contingent on future payment performance by the borrower under the modified terms.

Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table:

(dollars in millions)	Three Months Ended March 31, 2022
TDR net finance receivables *	$	30
Number of TDR accounts	3,796

* Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

UNFUNDED LENDING COMMITMENTS

Our unfunded lending commitments consist of the unused credit card lines, which are unconditionally cancellable. We do not anticipate that all of our customers will access their entire available line at any given point in time. The unused credit card lines totaled $99 million at March 31, 2023 and $81 million at December 31, 2022.

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4. Allowance for Finance Receivable Losses

We establish an allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by the level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the finance receivables through the delinquency buckets. We estimate and record an allowance for finance receivable losses to cover the expected lifetime credit losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions.

Our methodology to estimate expected credit losses uses recent macroeconomic forecasts, which include forecasts for unemployment. We leverage projections from various industry leading providers. We also consider inflationary pressures, consumer confidence levels, and interest rate increases that may continue to impact the economic outlook. At March 31, 2023, our economic forecast used a reasonable and supportable period of 12 months. The decrease in our allowance for finance receivable losses for the three months ended March 31, 2023 was primarily due to the adoption of ASU 2022-02. We may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of which could lead to further changes in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses.

Changes in the allowance for finance receivable losses were as follows:

(dollars in millions)	Personal Loans		Credit Cards		Total
Three Months Ended March 31, 2023
Balance at beginning of period	$	2,290	$	21	$	2,311
Impact of adoption of ASU 2022-02 *	(16)		—		(16)
Provision for finance receivable losses	377		8		385
Charge-offs	(445)		(6)		(451)
Recoveries	69		—		69
Balance at end of period	$	2,275	$	23	$	2,298
Three Months Ended March 31, 2022
Balance at beginning of period	$	2,090	$	5	$	2,095
Provision for finance receivable losses	233		5		238
Charge-offs	(329)		—		(329)
Recoveries	67		—		67
Balance at end of period	$	2,061	$	10	$	2,071

*    As a result of the adoption of ASU 2022-02, we recorded a one-time adjustment to the allowance for finance receivable losses. See Notes 2 and 3 for additional information on the adoption of ASU 2022-02.

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5. Investment Securities

AVAILABLE-FOR-SALE SECURITIES

Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows:

(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
March 31, 2023*
Fixed maturity available-for-sale securities:
U.S. government and government sponsored entities	$	17	$	—	$	(1)	$	16
Obligations of states, municipalities, and political subdivisions	73		—		(6)		67
Commercial paper	55		—		—		55
Non-U.S. government and government sponsored entities	151		—		(7)		144
Corporate debt	1,219		3		(99)		1,123
Mortgage-backed, asset-backed, and collateralized:
RMBS	213		—		(23)		190
CMBS	38		—		(3)		35
CDO/ABS	93		—		(7)		86
Total	$	1,859	$	3	$	(146)	$	1,716
December 31, 2022*
Fixed maturity available-for-sale securities:
U.S. government and government sponsored entities	$	17	$	—	$	(1)	$	16
Obligations of states, municipalities, and political subdivisions	74		—		(8)		66
Commercial paper	55		—		—		55
Non-U.S. government and government sponsored entities	150		—		(8)		142
Corporate debt	1,251		1		(115)		1,137
Mortgage-backed, asset-backed, and collateralized:
RMBS	217		—		(25)		192
CMBS	38		—		(3)		35
CDO/ABS	95		—		(9)		86
Total	$	1,897	$	1	$	(169)	$	1,729

*    The allowance for credit losses related to our investment securities as of March 31, 2023 and December 31, 2022 were immaterial.

Interest receivables reported in Other assets in our condensed consolidated balance sheets totaled $14 million as of March 31, 2023 and December 31, 2022. There were no material amounts reversed from investment revenue for available-for-sale securities for the three months ended March 31, 2023 and 2022.

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Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows:

	Less Than 12 Months				12 Months or Longer				Total
(dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2023
U.S. government and government sponsored entities	$	10	$	—	$	6	$	(1)	$	16	$	(1)
Obligations of states, municipalities, and political subdivisions	12		—		50		(6)		62		(6)
Commercial paper	51		—		—		—		51		—
Non-U.S. government and government sponsored entities	30		—		93		(7)		123		(7)
Corporate debt	311		(8)		712		(91)		1,023		(99)
Mortgage-backed, asset-backed, and collateralized:
RMBS	48		(2)		125		(21)		173		(23)
CMBS	9		—		26		(3)		35		(3)
CDO/ABS	18		—		58		(7)		76		(7)
Total	$	489	$	(10)	$	1,070	$	(136)	$	1,559	$	(146)
December 31, 2022
U.S. government and government sponsored entities	$	10	$	—	$	6	$	(1)	$	16	$	(1)
Obligations of states, municipalities, and political subdivisions	48		(5)		15		(3)		63		(8)
Commercial paper	51		—		—		—		51		—
Non-U.S. government and government sponsored entities	104		(3)		32		(5)		136		(8)
Corporate debt	779		(54)		299		(61)		1,078		(115)
Mortgage-backed, asset-backed, and collateralized:
RMBS	106		(9)		68		(16)		174		(25)
CMBS	21		(2)		13		(1)		34		(3)
CDO/ABS	45		(3)		35		(6)		80		(9)
Total	$	1,164	$	(76)	$	468	$	(93)	$	1,632	$	(169)

On a lot basis, we had 2,176 and 2,280 investment securities in an unrealized loss position at March 31, 2023 and December 31, 2022, respectively. We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, as of March 31, 2023, there were no credit impairments on investment securities that we intend to sell. We do not have plans to sell any of the remaining investment securities with unrealized losses as of March 31, 2023, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost.

We continue to monitor unrealized loss positions for potential credit impairments. During the three months ended March 31, 2023 and 2022, there were no material credit impairments related to our investment securities. Therefore, there were no material additions or reductions in the allowance for credit losses (impairments recognized or reversed in earnings) on credit impaired available-for-sale securities for the three months ended March 31, 2023 and 2022.

The proceeds of available-for-sale securities sold or redeemed during the three months ended March 31, 2023 and 2022 totaled $26 million and $163 million, respectively. The net realized gains and losses were immaterial during the three months ended March 31, 2023 and 2022.

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Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2023 were as follows:

(dollars in millions)	Fair Value		Amortized Cost
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	$	192	$	194
Due after 1 year through 5 years	544		571
Due after 5 years through 10 years	532		592
Due after 10 years	137		158
Mortgage-backed, asset-backed, and collateralized securities	311		344
Total	$	1,716	$	1,859

Actual maturities may differ from contractual maturities since issuers and borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies.

The fair value of securities on deposit with third parties totaled $535 million and $532 million at March 31, 2023 and December 31, 2022, respectively.

OTHER SECURITIES

The fair value of other securities by type was as follows:

(dollars in millions)	March 31, 2023		December 31, 2022
Fixed maturity other securities:
Bonds	$	21	$	23
Preferred stock *	16		15
Common stock *	33		33
Total	$	70	$	71

*    We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments.

Net unrealized losses on other securities held were immaterial for the three months ended March 31, 2023 and 2022. Net realized gains and losses on other securities sold or redeemed were immaterial for the three months ended March 31, 2023 and 2022.

Other securities primarily consist of equity securities and those securities for which the fair value option was elected. We report net unrealized and realized gains and losses on other securities held, sold, or redeemed in investment revenue.

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6. Long-term Debt

Principal maturities of long-term debt by type of debt at March 31, 2023 were as follows:

	Senior Debt
(dollars in millions)	Securitizations		Private Secured Term Funding		Revolving Conduit Facilities		Unsecured Notes (a)		Junior Subordinated Debt (a)			Total
Interest rates (b)	0.87%-7.07%		5.77%		5.55%		3.50%-8.25%		6.58		%
Remainder of 2023	$	—	$	—	$	—	$	226	$	—		$	226
2024	—		—		—		1,270		—			1,270
2025	—		—		—		1,249		—			1,249
2026	—		—		—		1,600		—			1,600
2027	—		—		—		750		—			750
2028-2067	—		—		—		2,932		350			3,282
Secured (c)	9,654		350		100		—		—			10,104
Total principal maturities	$	9,654	$	350	$	100	$	8,027	$	350		$	18,481
Total carrying amount	$	9,611	$	349	$	100	$	7,974	$	172		$	18,206
Debt issuance costs (d)	(40)		(1)		—		(57)		—			(98)

(a) Pursuant to the Base Indenture, the Supplemental Indentures, and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions.

(b) The interest rates shown are the range of contractual rates in effect at March 31, 2023.

(c) Securitizations, private secured term funding, and borrowings under the revolving conduit facilities are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. See Note 7 for further information on our long-term debt associated with securitizations, private secured term funding, and revolving conduit facilities.

(d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities and unsecured corporate revolver, which totaled $31 million at March 31, 2023 and are reported in Other assets in our condensed consolidated balance sheets.

UNSECURED CORPORATE REVOLVER

At March 31, 2023, the total maximum borrowing capacity of our unsecured corporate revolver was $1.25 billion. The corporate revolver has a five-year term beginning October 25, 2021, during which draws and repayments may occur. Any outstanding principal balance is due and payable on October 25, 2026. At March 31, 2023, no amounts were drawn under this facility.

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7. Variable Interest Entities

CONSOLIDATED VIES

We have transferred finance receivables to VIEs for asset-backed financing transactions and include the assets and liabilities in our condensed consolidated financial statements because we are the primary beneficiary of each VIE. We account for these asset-backed debt obligations as securitized borrowings.

See Note 2 and Note 9 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for more detail regarding VIEs.

We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities when its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts, private secured term funding, and revolving conduit facilities were as follows:

(dollars in millions)	March 31, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	2	$	2
Net finance receivables	11,108		10,432
Allowance for finance receivable losses	1,206		1,126
Restricted cash and restricted cash equivalents	513		442
Other assets	29		28
Liabilities
Long-term debt	$	10,060	$	9,361
Other liabilities	20		20

Other than the retained subordinate and residual interests in our consolidated VIEs, we are under no further obligation than is otherwise noted herein, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $101 million and $65 million during the three months ended March 31, 2023 and 2022, respectively.

SECURITIZED BORROWINGS

Each of our outstanding securitizations contain a revolving period ranging from two to seven years during which no principal payments are required to be made on the related asset-backed notes. The indentures governing our securitized borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes.

PRIVATE SECURED TERM FUNDING

At March 31, 2023, an aggregate amount of $350 million was outstanding under the private secured term funding collateralized by our personal loans. No principal payments are required to be made until after April 25, 2025, followed by a subsequent one-year amortization period, at the expiration of which the outstanding principal amount is due and payable.

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REVOLVING CONDUIT FACILITIES

We had access to 15 revolving conduit facilities with a total maximum borrowing capacity of $6.2 billion as of March 31, 2023. Our conduit facilities contain revolving periods during which time no principal payments are required, but may be made without penalty, followed by a subsequent amortization period. Principal balances of outstanding loans, if any, are due and payable in full over periods ranging up to ten years as of March 31, 2023. Amounts drawn on these facilities are collateralized by our personal loans.

At March 31, 2023, an aggregate amount of $100 million was drawn under these facilities and the remaining borrowing capacity was $6.1 billion.

8. Insurance

Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables) on our short-duration insurance contracts:

	At or for the Three Months Ended March 31,
(dollars in millions)	2023		2022 (a)
Balance at beginning of period	$	93	$	102
Less reinsurance recoverables	(3)		(3)
Net balance at beginning of period	90		99
Additions for losses and loss adjustment expenses incurred to:
Current year	42		46
Prior years (b)	(1)		(6)
Total	41		40
Reductions for losses and loss adjustment expenses paid related to:
Current year	(12)		(13)
Prior years	(27)		(27)
Total	(39)		(40)
Net balance at end of period	92		99
Plus reinsurance recoverables	3		3
Balance at end of period	$	95	$	102

(a)    As a result of the modified retrospective adoption of ASU 2018-12, we have recorded a $16 million reduction to the 2022 beginning balance, and the previously reported balances were recast to exclude reserves for unpaid claims on our long-duration contracts. These reserves have been included in our estimate of the liability for future policy benefits as of the transition date of January 1, 2021. See Note 2 for additional information on the adoption of ASU 2018-12.

(b)    At March 31, 2023, $1 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit disability claims during the period. At March 31, 2022, $6 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit life claims during the period.

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LIABILITY FOR FUTURE POLICY BENEFITS

The present value of expected net premiums on long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and  Whole Life		Accidental Death and Disability Protection		Term and  Whole Life		Accidental Death and Disability Protection
Balance at beginning of period	$	252	$	48	$	313	$	69
Effect of cumulative changes in discount rate assumptions (beginning of period)	(8)		—		(53)		(10)
Beginning balance at original discount rate	244		48		260		59
Effect of actual variances from expected experience	(2)		—		1		—
Adjusted balance at beginning of period	242		48		261		59
Interest accretion	6		—		27		(1)
Net premiums collected	(7)		(2)		(10)		(2)
Ending balance at original discount rate	241		46		278		56
Effect of changes in discount rate assumptions	5		—		35		6
Balance at ending of period	$	246	$	46	$	313	$	62

The present value of expected future policy benefits on long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Balance at beginning of period	$	483	$	126	$	601	$	165
Effect of cumulative changes in discount rate assumptions (beginning of period)	(17)		(1)		(109)		(27)
Beginning balance at original discount rate	466		125		492		138
Effect of actual variances from expected experience	1		(1)		2		(1)
Adjusted balance at beginning of period	467		124		494		137
Net issuances	1		—		1		—
Interest accretion	9		3		27		1
Benefit payments	(16)		(4)		(17)		(4)
Ending balance at original discount rate	461		123		505		134
Effect of changes in discount rate assumptions	12		—		66		14
Balance at ending of period	$	473	$	123	$	571	$	148

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The net liability for future policy benefits on long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Net liability for future policy benefits	$	227	$	77	$	258	$	86
Deferred profit liability	15		54		16		61
Total net liability for future policy benefits	$	242	$	131	$	274	$	147

The weighted-average duration of the liability for future policy benefits was 8 years at March 31, 2023 and 2022.

The following table reconciles the net liability for future policy benefits to Insurance claims and policyholder liabilities in the condensed consolidated balance sheets:

	At or for the Three Months Ended March 31,
(dollars in millions)	2023		2022
Term and whole life	$	242	$	274
Accidental death and disability protection	131		147
Other*	242		237
Total	$	615	$	658

*    Other primarily includes reserves for short-duration contracts that are payable to third-party beneficiaries.

The undiscounted and discounted expected gross premiums and expected future benefits and expenses for our long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Expected future gross premiums:
Undiscounted	$	466	$	159	$	586	$	181
Discounted	326		114		442		142
Expected future benefit payments:
Undiscounted	670		181		741		198
Discounted	473		123		571		148

The revenue and interest related to our long-duration insurance contracts recognized in the condensed consolidated statements of operations were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Gross premiums or assessments	$	11	$	5	$	17	$	5
Interest accretion	3		3		—		1
Total	$	14	$	8	$	17	$	6

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The expected and actual experience for mortality, morbidity, and lapses of the liability for future policy benefits were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Mortality/Morbidity:
Expected	0.39	%	0.01	%	0.40	%	0.01	%
Actual	0.31	%	0.01	%	0.43	%	0.01	%
Lapses:
Expected	3.18	%	2.24	%	2.70	%	2.27	%
Actual	1.67	%	0.34	%	0.96	%	0.33	%

The weighted-average interest rates for the liability of future policy benefits for our long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Interest accretion rate	5.26	%	4.86	%	5.26	%	4.85	%
Current discount rate	5.07	%	5.06	%	3.68	%	3.61	%

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9. Capital Stock and Earnings Per Share (OMH Only)

CAPITAL STOCK

OMH has two classes of authorized capital stock: preferred stock and common stock. OMFC has two classes of authorized capital stock: special stock and common stock. OMH and OMFC may issue preferred stock and special stock, respectively, in one or more series. The OMH Board of Directors and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance.

Changes in OMH shares of common stock issued and outstanding were as follows:

	Three Months Ended March 31,
	2023	2022
Balance at beginning of period	121,042,125	127,809,640
Common stock issued	207,403	252,277
Common stock repurchased	(683,384)	(2,282,552)
Treasury stock issued	21,070	14,471
Balance at end of period	120,587,214	125,793,836

EARNINGS PER SHARE (OMH ONLY)

The computation of earnings per share was as follows:

	Three Months Ended March 31,
(dollars in millions, except per share data)	2023		2022
Numerator (basic and diluted):
Net income	$	179	$	303
Denominator:
Weighted average number of shares outstanding (basic)	120,765,661		127,075,714
Effect of dilutive securities *	204,230		387,313
Weighted average number of shares outstanding (diluted)	120,969,891		127,463,027
Earnings per share:
Basic	$	1.48	$	2.38
Diluted	$	1.48	$	2.38

* We have excluded weighted-average unvested restricted stock units totaling 1,543,976 and 1,172,754 for the three months ended March 31, 2023 and 2022, respectively, from the fully-diluted earnings per share calculations as these shares would be anti-dilutive, which could impact the earnings per share calculation in the future.

Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method. The potentially dilutive shares represent outstanding unvested restricted stock units.

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10. Accumulated Other Comprehensive Income (Loss)

Changes, net of tax, in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities (a)		Retirement Plan Liabilities Adjustments		Foreign Currency Translation Adjustments		Changes in discount rate for insurance claims and policyholder liabilities		Other (b)		Total Accumulated Other Comprehensive Income (Loss)
Three Months Ended March 31, 2023
Balance at beginning of period	$	(131)	$	(8)	$	(5)	$	(8)	$	25	$	(127)
Other comprehensive income (loss) before reclassifications	19		—		—		3		(3)		19
Balance at end of period	$	(112)	$	(8)	$	(5)	$	(5)	$	22	$	(108)
Three Months Ended March 31, 2022
Balance at beginning of period	$	49	$	1	$	3	$	(56)	$	8	$	5
Other comprehensive income (loss) before reclassifications	(81)		—		1		25		10		(45)
Reclassification adjustments from accumulated other comprehensive income (loss)	(2)		—		—		—		—		(2)
Balance at end of period	$	(34)	$	1	$	4	$	(31)	$	18	$	(42)

(a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the three months ended March 31, 2023 and 2022.

(b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges.

Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were immaterial for the three months ended March 31, 2023 and 2022.

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11. Income Taxes

We had a net deferred tax asset of $438 million and $456 million at March 31, 2023 and December 31, 2022, respectively.

We follow the guidance of ASC 740, Income Taxes, for interim reporting of income taxes under which we calculate an estimated annual effective tax rate (“AETR”) and apply the AETR to our year-to-date income (loss) before income taxes. In addition, we recognize any discrete items as they occur.

The effective tax rate for the three months ended March 31, 2023 was 24.0%, compared to 24.1% for the same period in 2022. The effective tax rate for the three months ended March 31, 2023 and 2022 differed from the federal statutory rate of 21% primarily due to the effect of state income taxes.

We are under examination by various states for the years 2017 to 2021. Management believes it has adequately provided for taxes for such years.

Our gross unrecognized tax benefits, including related interest and penalties, totaled $6 million at March 31, 2023 and December 31, 2022. We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our condensed consolidated financial statements.

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12. Contingencies

LEGAL CONTINGENCIES

In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions, and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Additionally, we are, from time to time, in the normal course of business, subject to inquiries and investigations by federal, state and local governmental authorities regarding our products and our operations. These inquiries and investigations may result in fines, restitution or other penalties, including injunctive relief that may result in restrictions on our business. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims.

We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the condensed consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss.

For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or range of additional loss can be reasonably estimated for any given action.

For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our condensed consolidated financial statements as a whole.

In March 2022, the staff of the United States Consumer Financial Protection Bureau (“CFPB”) notified us that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, it is considering recommending that the CFPB take legal action against the Company in connection with alleged violations of the Consumer Financial Protection Act, 12 U.S.C. §§ 5531, 5536. The staff’s investigation is focused on certain refunding practices for optional insurance and membership plan products that were subsequently canceled by the consumer after purchase. We are cooperating with the CFPB in this matter and expect ongoing interactions. Although the Company believes it has not violated the Consumer Financial Protection Act, we are unable to estimate how long this investigation will continue, whether and in what manner the CFPB may commence legal action, or what the ultimate outcome of this matter will be. Should the CFPB opt to commence legal proceedings, it may seek civil monetary penalties, restitution, injunctive relief, or other damages. The Company does not currently believe that the outcome of this matter will have a material adverse effect on our business, financial condition, or results of operations.

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13. Segment Information

At March 31, 2023, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans.

The accounting policies of the C&I segment are the same as those disclosed in Note 2 and Note 17 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report.

The following tables present information about C&I and Other, as well as reconciliations to the condensed consolidated financial statement amounts.

(dollars in millions)	Consumer and Insurance		Other		Segment to GAAP Adjustment		Consolidated Total
Three Months Ended March 31, 2023
Interest income	$	1,092	$	1	$	1	$	1,094
Interest expense	238		—		1		239
Provision for finance receivable losses	385		—		—		385
Net interest income after provision for finance receivable losses	469		1		—		470
Other revenues	176		1		—		177
Other expenses	409		3		—		412
Income (loss) before income tax expense (benefit)	$	236	$	(1)	$	—	$	235
Assets	$	21,199	$	30	$	1,214	$	22,443
Three Months Ended March 31, 2022
Interest income	$	1,087	$	1	$	1	$	1,089
Interest expense	217		1		1		219
Provision for finance receivable losses	237		—		1		238
Net interest income after provision for finance receivable losses	633		—		(1)		632
Other revenues	158		4		—		162
Other expenses	392		4		(1)		395
Income before income tax expense	$	399	$	—	$	—	$	399
Assets	$	19,756	$	40	$	2,020	$	21,816

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14. Fair Value Measurements

The accounting policies of our fair value measurements are the same as those disclosed in Note 2 and Note 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report.

The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
March 31, 2023
Assets
Cash and cash equivalents	$	538	$	6	$	—	$	544	$	544
Investment securities	52		1,729		5		1,786		1,786
Net finance receivables, less allowance for finance receivable losses	—		—		19,150		19,150		17,511
Restricted cash and restricted cash equivalents	531		—		—		531		531
Other assets *	—		—		41		41		31
Liabilities
Long-term debt	$	—	$	17,057	$	—	$	17,057	$	18,206
December 31, 2022
Assets
Cash and cash equivalents	$	481	$	17	$	—	$	498	$	498
Investment securities	51		1,744		5		1,800		1,800
Net finance receivables, less allowance for finance receivable losses	—		—		19,272		19,272		17,675
Restricted cash and restricted cash equivalents	450		11		—		461		461
Other assets *	—		—		43		43		35
Liabilities
Long-term debt	$	—	$	16,969	$	—	$	16,969	$	18,281

*Other assets at March 31, 2023 and December 31, 2022 primarily consists of finance receivables held for sale.

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FAIR VALUE MEASUREMENTS — RECURRING BASIS

The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
March 31, 2023
Assets
Cash equivalents in mutual funds	$	109	$	—	$	—	$	109
Cash equivalents in securities	—		6		—		6
Investment securities:
Available-for-sale securities
U.S. government and government sponsored entities	—		16		—		16
Obligations of states, municipalities, and political subdivisions	—		67		—		67
Commercial paper	—		55		—		55
Non-U.S. government and government sponsored entities	—		144		—		144
Corporate debt	5		1,115		3		1,123
RMBS	—		190		—		190
CMBS	—		35		—		35
CDO/ABS	—		86		—		86
Total available-for-sale securities	5		1,708		3		1,716
Other securities
Bonds:
Corporate debt	—		5		—		5
CDO/ABS	—		16		—		16
Total bonds	—		21		—		21
Preferred stock	16		—		—		16
Common stock	31		—		2		33
Total other securities	47		21		2		70
Total investment securities	52		1,729		5		1,786
Restricted cash equivalents in mutual funds	517		—		—		517
Total	$	678	$	1,735	$	5	$	2,418

41

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2022
Assets
Cash equivalents in mutual funds	$	77	$	—	$	—	$	77
Cash equivalents in securities	—		17		—		17
Investment securities:
Available-for-sale securities
U.S. government and government sponsored entities	—		16		—		16
Obligations of states, municipalities, and political subdivisions	—		66		—		66
Commercial paper	—		55		—		55
Non-U.S. government and government sponsored entities	—		142		—		142
Corporate debt	5		1,129		3		1,137
RMBS	—		192		—		192
CMBS	—		35		—		35
CDO/ABS	—		86		—		86
Total available-for-sale securities	5		1,721		3		1,729
Other securities
Bonds:
Corporate debt	—		6		—		6
RMBS	—		1		—		1
CDO/ABS	—		16		—		16
Total bonds	—		23		—		23
Preferred stock	15		—		—		15
Common stock	31		—		2		33
Total other securities	46		23		2		71
Total investment securities	51		1,744		5		1,800
Restricted cash equivalents in mutual funds	445		—		—		445
Restricted cash equivalents in securities	$	—	$	11	$	—	11
Total	$	573	$	1,772	$	5	$	2,350

Due to the insignificant activity within the Level 3 assets during the three months ended March 31, 2023 and 2022, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.

FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS

We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial during the three months ended March 31, 2023 and 2022.

FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS

See Note 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for information regarding our methods and assumptions used to estimate fair value.

42

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

An index to our management’s discussion and analysis follows:

Topic	Page
Forward-Looking Statements	44
Overview	45
Recent Developments and Outlook	46
Results of Operations	47
Segment Results	50
Credit Quality	52
Liquidity and Capital Resources	54
Critical Accounting Policies and Estimates	59
Recent Accounting Pronouncements	59
Seasonality	59

43

Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead represent only management’s current beliefs regarding future events. By their nature, forward-looking statements are subject to risks, uncertainties, assumptions, and other important factors that may cause actual results, performance, or achievements to differ materially from those expressed in or implied by such forward-looking statements. We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date they were made. We do not undertake any obligation to update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Forward-looking statements include, without limitation, statements concerning future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Statements preceded by, followed by or that otherwise include the words “anticipates,” “appears,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “foresees,” “goals,” “intends,” “likely,” “objective,” “plans,” “projects,” “target,” “trend,” “remains,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” or “would” are intended to identify forward-looking statements, but these words are not the exclusive means of identifying forward-looking statements. Important factors that could cause actual results, performance, or achievements to differ materially from those expressed in or implied by forward-looking statements include, without limitation, the following:

•adverse changes and volatility in general economic conditions, including the interest rate environment and the financial markets;

•the sufficiency of our allowance for finance receivable losses;

•increased levels of unemployment and personal bankruptcies;

•the current inflationary environment and related trends affecting our customers;

•natural or accidental events such as earthquakes, hurricanes, pandemics, floods, or wildfires affecting our customers, collateral, or our facilities;

•a failure in or breach of our information, operational or security systems, or infrastructure or those of third parties, including as a result of cyber-attacks, war, or other disruptions;

•the adequacy of our credit risk scoring models;

•adverse changes in our ability to attract and retain employees or key executives;

•increased competition or adverse changes in customer responsiveness to our distribution channels or products;

•changes in federal, state, or local laws, regulations, or regulatory policies and practices or increased regulatory scrutiny of our business or industry;

•risks associated with our insurance operations;

•the costs and effects of any actual or alleged violations of any federal, state, or local laws, rules or regulations;

•the costs and effects of any fines, penalties, judgments, decrees, orders, inquiries, investigations, subpoenas, or enforcement or other proceedings of any governmental or quasi-governmental agency or authority;

•our substantial indebtedness and our continued ability to access the capital markets and maintain adequate current sources of funds to satisfy our cash flow requirements;

•our ability to comply with all of our covenants; and

•the effects of any downgrade of our debt ratings by credit rating agencies.

We also direct readers to the other risks and uncertainties discussed in Part I - Item 1A. “Risk Factors” included in our Annual Report and in other documents we file with the SEC.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. You should specifically consider the factors identified in this report and in the documents we file with the SEC that could cause actual results to differ before making an investment decision to purchase our securities and should not place undue reliance on any of our forward-looking statements. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us.

44

Overview

We operate in the United States and market our personal loans in 44 states. We service the loans that we originate and retain on our balance sheet, as well as loans owned by third parties on their behalf in connection with our whole loan sale program and legacy businesses. In connection with our offerings, our insurance subsidiaries offer our personal loan customers optional credit and non-credit insurance, and other insurance-related products. We also offer two credit cards, BrightWay and BrightWay+, which are designed to reward customers for responsible credit activity such as consistent on-time payments. We strive to meet our customers at their preferred channel and to deliver a seamless customer experience through our digital platforms, distribution partnerships, or working with our expert team members at our approximately 1,400 locations. Our personal loans, credit cards, and other products help customers meet everyday needs and take steps to improve their financial well-being.

OUR PRODUCTS

Our product offerings include:

•Personal Loans — We offer personal loans through our branch network, centralized operations, distribution partnerships, and our website, www.omf.com, to customers who need timely access to cash. Our personal loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles, other titled collateral, or are unsecured. At March 31, 2023, we had approximately 2.30 million personal loans totaling $19.7 billion of net finance receivables, of which 52% were secured by titled property, compared to approximately 2.33 million personal loans totaling $19.9 billion of net finance receivables, of which 52% were secured by titled property at December 31, 2022. We also service personal loans for our whole loan sale partners.

•Credit Cards — BrightWay and BrightWay+ credit cards originate through a third-party bank partner from which we purchase the receivable balances. The credit cards are offered across our branch network, through direct mail, and through our digital affiliates. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured. At March 31, 2023, we had approximately 161 thousand open credit card customer accounts, totaling $122 million of net finance receivables, compared to approximately 135 thousand open credit card customer accounts, totaling $107 million of net finance receivables at December 31, 2022.

•Optional Insurance Products — We offer our customers optional credit insurance products (life, disability, and involuntary unemployment insurance) and optional non-credit insurance products through both our branch network and our central operations. Credit insurance and non-credit insurance products are provided by our affiliated insurance companies. We offer GAP coverage as a waiver product or insurance. We also offer optional membership plans from an unaffiliated company.

OUR SEGMENT

At March 31, 2023, Consumer and Insurance (“C&I”) is our only reportable segment, which includes personal loans, credit cards, and optional insurance products. At March 31, 2023, we managed a combined total of 2.56 million customer accounts and $20.6 billion of managed receivables, compared to 2.56 million customer accounts and $20.8 billion of managed receivables at December 31, 2022.

The remaining components (which we refer to as “Other”) consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans held for sale and reported in Other assets in our condensed consolidated balance sheets. See Note 13 of the Notes to the Condensed Consolidated Financial Statements included in this report for more information about our segment.

45

Recent Developments and Outlook

RECENT DEVELOPMENTS

Stock Repurchase Program

On February 2, 2022, the Board authorized a stock repurchase program, which allows us to repurchase up to $1.0 billion of OMH’s outstanding common stock, excluding fees, commissions, and other expenses related to the repurchases. The authorization expires on December 31, 2024. As of March 31, 2023, we had $698 million of authorized share repurchase capacity, excluding fees and commissions, remaining under the program.

See “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 2. Unregistered Sales of Equity Securities and Use of Proceeds in Part II of this report for further information on our shares repurchased.

Securitization Transactions Completed - ODART 2023-1

For information regarding the issuances of our secured debt, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.

Cash Dividends to OMH's Common Stockholders

For information regarding the quarterly dividends declared by OMH, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.

OUTLOOK

We are actively monitoring the current macro environment and remain prepared for any developments that may impact our business. Our financial condition and results of operations could be affected by macroeconomic conditions, including changes in unemployment, inflation, interest rates, and consumer confidence. We will continue to incorporate updates to our macroeconomic assumptions, as necessary, which could lead to further adjustments in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses.

Our experienced management team remains focused on maintaining a strong balance sheet with a long liquidity runway and adequate capital and maintaining a conservative and disciplined underwriting model. We believe we are well positioned to serve our customers, invest in our business, and drive long-term growth to create value for our stockholders as we navigate an ever-evolving economic, social, political, and regulatory environment.

46

Results of Operations

The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this section relates only to OMH. See Note 1 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information.

OMH'S CONSOLIDATED RESULTS

See the table below for OMH's consolidated operating results and selected financial statistics. A further discussion of OMH's operating results for our operating segment is provided under “Segment Results” below.

	At or for the Three Months Ended March 31,
(dollars in millions, except per share amounts)	2023			2022
Interest income	$	1,094		$	1,089
Interest expense	239			219
Provision for finance receivable losses	385			238
Net interest income after provision for finance receivable losses	470			632
Other revenues	177			162
Other expenses	412			395
Income before income taxes	235			399
Income taxes	56			96
Net income	$	179		$	303
Share Data:
Earnings per share:
Diluted	$	1.48		$	2.38
Selected Financial Statistics *
Total finance receivables:
Net finance receivables	$	19,809		$	18,979
Average net receivables	$	19,881		$	19,083
Gross charge-off ratio	9.21		%	6.98		%
Recovery ratio	(1.41)		%	(1.42)		%
Net charge-off ratio	7.80		%	5.57		%
Personal loans:
Net finance receivables	$	19,687		$	18,929
Yield	22.27		%	23.12		%
Origination volume	$	2,817		$	2,959
Number of accounts	2,303,278			2,288,999
Number of accounts originated	270,672			286,391
Net charge-off ratio	7.72		%	5.58		%
30-89 Delinquency ratio	2.58		%	2.25		%
Credit cards:
Net finance receivables	$	122		$	50
Purchase volume	$	53		$	45
Number of open accounts	160,508			73,958
Debt balances:
Long-term debt balance	$	18,206		$	17,560
Average daily debt balance	$	18,355		$	17,553

*    See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.

47

Comparison of Consolidated Results for Three Months Ended March 31, 2023 and 2022

Interest income increased $5 million or less than 1% for the three months ended March 31, 2023 when compared to the same period in 2022 primarily due to growth in average net receivables, partially offset by lower yield.

Interest expense increased $20 million or 9% for the three months ended March 31, 2023 when compared to the same period in 2022 primarily due to a higher average cost of funds and an increase in average debt.

Provision for finance receivable losses increased $147 million or 62% for the three months ended March 31, 2023 when compared to the same period in 2022 primarily driven by higher net charge-offs and a modest increase in the allowance for finance receivable losses in the current quarter compared to a reduction in allowance in the prior year period.

Other revenues increased $15 million or 10% for the three months ended March 31, 2023 when compared to the same period in 2022 primarily due to an increase in investment revenue due to higher market rates compared to the prior year period.

Other expenses increased $17 million or 4% for the three months ended March 31, 2023 when compared to the same period in 2022 primarily due to an increase in salaries and benefits expense and increases in general operating expenses driven by the continued investment in our business.

Income taxes totaled $56 million for the three months ended March 31, 2023 compared to $96 million in the same period in 2022 due to higher pre-tax income in the prior year period. For the three months ended March 31, 2023 and 2022, the effective tax rates were 24.0% and 24.1%, respectively. The effective tax rates differed from the federal statutory rate of 21% primarily due to the effect of state income taxes.

48

NON-GAAP FINANCIAL MEASURES

Management uses C&I adjusted pretax income (loss), a non-GAAP financial measure, as a key performance measure of our segment. C&I adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes the direct costs associated with COVID-19 and the expense associated with the cash-settled stock-based awards. Management believes C&I adjusted pretax income (loss) is useful in assessing the profitability of our segment.

Management also uses C&I pretax capital generation, a non-GAAP financial measure, as a key performance measure of our segment. This measure represents C&I adjusted pretax income as discussed above and excludes the change in our C&I allowance for finance receivable losses in the period which still considers the C&I net charge-offs incurred during the period. Management believes that C&I pretax capital generation is useful in assessing the capital created in the period impacting the overall capital adequacy of the Company. Management believes that the Company’s reserves, combined with its equity, represent the Company’s loss absorption capacity.

Management utilizes both C&I adjusted pretax income (loss) and C&I pretax capital generation in evaluating our performance. Additionally, both of these non-GAAP measures are consistent with the performance goals established in OMH’s executive compensation program. C&I adjusted pretax income (loss) and C&I pretax capital generation are non-GAAP financial measures and should be considered supplemental to, but not as a substitute for or superior to, income (loss) before income taxes, net income, or other measures of financial performance prepared in accordance with GAAP.

OMH's reconciliations of income before income tax expense on a Segment Accounting Basis to C&I adjusted pretax income (non-GAAP) and C&I pretax capital generation (non-GAAP) were as follows:

	Three Months Ended March 31,
(dollars in millions)	2023		2022
Consumer and Insurance
Income before income taxes - Segment Accounting Basis	$	236	$	399
Adjustments:
Direct costs associated with COVID-19	—		1
Cash-settled stock-based awards	—		1
Adjusted pretax income (non-GAAP)	236		401
Provision for finance receivable losses	385		237
Net charge-offs	(382)		(262)
Pretax capital generation (non-GAAP)	$	239	$	376

49

Segment Results

The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this section relate only to OMH. See Note 1 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information.

See Note 17 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for a description of our segment and methodologies used to allocate revenues and expenses to our C&I segment. See Note 13 of the Notes to the Condensed Consolidated Financial Statements included in this report for reconciliations of segment total to

condensed consolidated financial statement amounts.

CONSUMER AND INSURANCE

OMH's adjusted pretax income and selected financial statistics for C&I on an adjusted Segment Accounting Basis were as follows:

	At or for the Three Months Ended March 31,
(dollars in millions)	2023			2022
Interest income	$	1,092		$	1,087
Interest expense	238			217
Provision for finance receivable losses	385			237
Net interest income after provision for finance receivable losses	469			633
Other revenues	176			158
Other expenses	409			390
Adjusted pretax income (non-GAAP)	$	236		$	401
Selected Financial Statistics *
Total finance receivables:
Net finance receivables	$	19,810		$	18,981
Average net receivables	$	19,882		$	19,086
Gross charge-off ratio	9.21		%	6.98		%
Recovery ratio	(1.41)		%	(1.42)		%
Net charge-off ratio	7.80		%	5.57		%
Personal loans:
Net finance receivables	$	19,688		$	18,931
Yield	22.26		%	23.11		%
Origination volume	$	2,817		$	2,959
Number of accounts	2,303,278			2,288,999
Number of accounts originated	270,672			286,391
Net charge-off ratio	7.72		%	5.58		%
30-89 Delinquency ratio	2.58		%	2.25		%
Credit cards:
Net finance receivables	$	122		$	50
Purchase volume	$	53		$	45
Number of open accounts	160,508			73,958

*    See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.

50

Comparison of Adjusted Pretax Income for Three Months Ended March 31, 2023 and 2022

Interest income increased $5 million or less than 1% for the three months ended March 31, 2023 when compared to the same period in 2022 primarily due to growth in average net receivables, partially offset by lower yield.

Interest expense increased $21 million or 9% for the three months ended March 31, 2023 when compared to the same period in 2022 primarily due to a higher average cost of funds and an increase in average debt.

Provision for finance receivable losses increased $148 million or 62% for the three months ended March 31, 2023 when compared to the same period in 2022 primarily driven by higher net charge-offs and a modest increase in the allowance for finance receivable losses in the current quarter compared to a reduction in allowance in the prior year period.

Other revenues increased $18 million or 11% for the three months ended March 31, 2023 when compared to the same period in 2022 primarily due to an increase in investment revenue due to higher market rates compared to the prior year period.

Other expenses increased $19 million or 5% for the three months ended March 31, 2023 when compared to the same period in 2022 primarily due to an increase in salaries and benefits expense and increases in general operating expenses driven by the continued investment in our business.

51

Credit Quality

FINANCE RECEIVABLES

Our net finance receivables, consisting of personal loans and credit cards, were $19.8 billion at March 31, 2023 and $20.0 billion at December 31, 2022. We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio. Our branch and central operation team members work closely with customers as necessary and offer a variety of borrower assistance programs to help support our customers.

DELINQUENCY

We monitor delinquency trends to evaluate the risk of future credit losses and employ advanced analytical tools to manage performance. Team members are actively engaged in collection activities throughout the early stages of delinquency. We closely track and report the percentage of receivables that are contractually 30-89 days past due as a benchmark of portfolio quality, collections effectiveness, and as a strong indicator of losses in coming quarters.

When personal loans are contractually 60 days past due, we consider these accounts to be at an increased risk for loss and move collection of these accounts to our central collection operations. Use of our central operations teams for managing late stage delinquency allows us to apply more advanced collection techniques and tools to drive credit performance and operational efficiencies.

We consider our personal loans to be nonperforming at 90 days contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. For credit cards, we accrue finance charges and fees until charge-off at 180 days past due, at which point we reverse finance charges and fees previously accrued.

The delinquency information for net finance receivables on a Segment Accounting Basis was as follows:

	Consumer and Insurance
(dollars in millions)	Personal Loans			Credit Cards
March 31, 2023
Current	$	18,646		$	106
30-89 days past due	508			7
90+ days past due	534			9
Total net finance receivables	$	19,688		$	122
Delinquency ratio
30-89 days past due	2.58		%	5.58		%
30+ days past due	5.29		%	12.57		%
90+ days past due	2.72		%	7.00		%
December 31, 2022
Current	$	18,726		$	93
30-89 days past due	610			6
90+ days past due	544			8
Total net finance receivables	$	19,880		$	107
Delinquency ratio
30-89 days past due	3.07		%	5.90		%
30+ days past due	5.80		%	13.08		%
90+ days past due	2.74		%	7.18		%

52

ALLOWANCE FOR FINANCE RECEIVABLE LOSSES

We estimate and record an allowance for finance receivable losses to cover the expected lifetime credit losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions.

Our methodology to estimate expected credit losses uses recent macroeconomic forecasts, which include forecasts for unemployment. We leverage projections from various industry leading providers. We also consider inflationary pressures, consumer confidence levels, and interest rate increases that may continue to impact the economic outlook. At March 31, 2023, our economic forecast used a reasonable and supportable period of 12 months. We may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of which could lead to further changes in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses.

Changes in our allowance for finance receivable losses were as follows:

(dollars in millions)	Consumer and Insurance						Segment to GAAP Adjustment		Consolidated Total
	Personal Loans			Credit Cards
Three Months Ended March 31, 2023
Balance at beginning of period	$	2,294		$	21		$	(4)	$	2,311
Impact of adoption of ASU 2022-02 (a)	(20)			—			4		(16)
Provision for finance receivable losses	377			8			—		385
Charge-offs	(445)			(6)			—		(451)
Recoveries	69			—			—		69
Balance at end of period	$	2,275		$	23		$	—	$	2,298
Allowance ratio	11.55		%	19.25		%	(b)		11.60		%
Three Months Ended March 31, 2022
Balance at beginning of period	$	2,097		$	5		$	(7)	$	2,095
Provision for finance receivable losses	232			5			1		238
Charge-offs	(329)			—			—		(329)
Recoveries	67			—			—		67
Balance at end of period	$	2,067		$	10		$	(6)	$	2,071
Allowance ratio	10.92		%	19.99		%	(b)		10.91		%

(a)    As a result of the adoption of ASU 2022-02, we recorded a one-time adjustment to the allowance for finance receivable losses. See Notes 2, 3, and 4 of the Notes to the Condensed Consolidated Financial Statements for additional information on the adoption of ASU 2022-02 included in this report.

(b)    Not applicable.

The current delinquency status of our finance receivable portfolio, inclusive of recent borrower performance, volume of our modified finance receivable activity, level and recoverability of collateral securing our finance receivable portfolio, and the reasonable and supportable forecast of economic conditions are the primary drivers that can cause fluctuations in our allowance ratio from period to period. We monitor the allowance ratio to ensure we have a sufficient level of allowance for finance receivable losses based on the estimated lifetime expected credit losses in our finance receivable portfolio. The allowance for finance receivable losses as a percentage of net finance receivables for personal loans increased from the prior year period primarily due to an increase in delinquent personal loans 30 days or more past due and a weaker macroeconomic outlook. See Note 4 of the Notes to the Condensed Consolidated Financial Statements included in this report for more information about the changes in the allowance for finance receivable losses.

53

Liquidity and Capital Resources

SOURCES AND USES OF FUNDS

We finance the majority of our operating liquidity and capital needs through a combination of cash flows from operations, secured debt, unsecured debt, borrowings from revolving conduit facilities, whole loan sales, and equity. We may also utilize other sources in the future. As a holding company, all of the funds generated from our operations are earned by our operating subsidiaries. Our operating subsidiaries’ primary cash needs relate to funding our lending activities, our debt service obligations, our operating expenses, payment of insurance claims, and expenditures relating to upgrading and monitoring our technology platform, risk systems, and branch locations.

We have previously purchased portions of our unsecured indebtedness, and we may elect to purchase additional portions of our unsecured indebtedness or securitized borrowings in the future. Future purchases may be made through the open market, privately negotiated transactions with third parties, or pursuant to one or more tender or exchange offers, all of which are subject to terms, prices, and consideration we may determine at our discretion.

During the three months ended March 31, 2023, OMH generated net income of $179 million. OMH’s net cash inflow from operating and investing activities totaled $358 million for the three months ended March 31, 2023. At March 31, 2023, our scheduled principal and interest payments for the remainder of 2023 on our existing debt (excluding securitizations) totaled $508 million. As of March 31, 2023, we had $8.5 billion of unencumbered loans.

Based on our estimates and considering the risks and uncertainties of our plans, we believe that we will have adequate liquidity to finance and operate our businesses and repay our obligations as they become due.

OMFC’s Unsecured Corporate Revolver

At March 31, 2023, the borrowing capacity of our corporate revolver was $1.25 billion, and no amounts were drawn.

Securitizations and Borrowings from Revolving Conduit Facilities

During the three months ended March 31, 2023, we completed one personal loan securitization (ODART 2023-1, see “Securitized Borrowings” below) and redeemed no personal loan securitizations. During the three months ended March 31, 2023, we entered into no new revolving conduit facilities. At March 31, 2023, $100 million was drawn under our revolving conduit facilities, and the remaining borrowing capacity was $6.1 billion. At March 31, 2023, we had $11.0 billion of gross finance receivables pledged as collateral for our securitizations, revolving conduit facilities, and private secured term funding.

Private Secured Term Funding

At March 31, 2023, an aggregate amount of $350 million was outstanding under the private secured term funding collateralized by our personal loans. No principal payments are required to be made until after April 25, 2025, followed by a subsequent one-year amortization period at the expiration of which the outstanding principal amount is due and payable.

See Notes 6 and 7 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information on our long-term debt, securitization transactions, private secured term funding, and revolving conduit facilities.

54

Credit Ratings

Our credit ratings impact our ability to access capital markets and our borrowing costs. Rating agencies base their ratings on numerous factors, including liquidity, capital adequacy, asset quality, quality of earnings, and the probability of systemic support. Significant changes in these factors could result in different ratings.

The table below outlines OMFC’s long-term corporate debt ratings and outlook by rating agencies:

As of March 31, 2023	Rating	Outlook
S&P	BB	Stable
Moody’s	Ba2	Stable
KBRA	BB+	Positive

Currently, no other entity has a corporate debt rating, though they may be rated in the future.

Stock Repurchased

During the three months ended March 31, 2023, OMH repurchased 683,384 shares of its common stock through its stock repurchase program for an aggregate total of $27 million, including commissions and fees. As of March 31, 2023, OMH held a total of 14,475,790 shares of treasury stock. To provide funding for the OMH stock repurchases, the OMFC Board of Directors authorized dividend payments in the amount of $30 million.

For additional information regarding the shares repurchased, see Item 2. Unregistered Sales of Equity Securities and Use of Proceeds of Part II included in this report.

Cash Dividend to OMH's Common Stockholders

As of March 31, 2023, the dividend declarations for the current year by the Board were as follows:

Declaration Date	Record Date	Payment Date	Dividend Per Share		Amount Paid
					(in millions)
February 7, 2023	February 17, 2023	February 24, 2023	$	1.00	$	121
Total			$	1.00	$	121

To provide funding for the dividend, OMFC paid dividends of $119 million to OMH during the three months ended March 31, 2023.

On April 25, 2023, OMH declared a dividend of $1.00 per share payable on May 12, 2023 to record holders of OMH's common stock as of the close of business on May 5, 2023. To provide funding for the OMH dividend, the OMFC Board of Directors authorized a dividend in the amount of up to $121 million payable on or after May 8, 2023.

While OMH intends to pay its minimum quarterly dividend, currently $1.00 per share, for the foreseeable future, all subsequent dividends will be reviewed and declared at the discretion of the Board and will depend on many factors, including our financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends, and other considerations that the Board deems relevant. OMH’s dividend payments may change from time to time, and the Board may choose not to continue to declare dividends in the future. See our “Dividend Policy” in Part II - Item 5 included in our Annual Report for further information.

Whole Loan Sale Transactions

As of March 31, 2023, we have whole loan sale flow agreements with third parties, with remaining terms of less than one year, in which we agreed to sell a combined total of $135 million gross receivables per quarter of newly originated unsecured personal loans along with any associated accrued interest. We sold $180 million of gross finance receivables during the three months ended March 31, 2023 and 2022. See Note 3 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information on the whole loan sale transactions.

55

LIQUIDITY

OMH's Operating Activities

Net cash provided by operations of $562 million for the three months ended March 31, 2023 reflected net income of $179 million, the impact of non-cash items, and an unfavorable change in working capital of $66 million. Net cash provided by operations of $552 million for the three months ended March 31, 2022 reflected net income of $303 million, the impact of non-cash items, and an unfavorable change in working capital of $65 million.

OMH's Investing Activities

Net cash used for investing activities of $204 million for the three months ended March 31, 2023 was primarily due to net principal originations and purchases of finance receivables, partially offset by the proceeds from sales of finance receivables. Net cash provided by investing activities of $50 million for the three months ended March 31, 2022 was primarily due to proceeds from sales of finance receivables and calls, sales, and maturities of available-for-sale securities, partially offset by net principal originations and purchases of finance receivables and purchases of available-for-sale securities.

OMH's Financing Activities

Net cash used for financing activities of $242 million for the three months ended March 31, 2023 was primarily due to repayments and repurchases of long-term debt, cash dividends paid, and the cash paid to repurchase common stock, partially offset by the issuance and borrowings of long-term debt. Net cash used for financing activities of $448 million for the three months ended March 31, 2022 was primarily due to debt repayments, cash dividends paid, and the cash paid to repurchase common stock during the period, partially offset by the issuance and borrowings of long-term debt.

OMH's Cash and Investments

At March 31, 2023, we had $544 million of cash and cash equivalents, which included $177 million of cash and cash equivalents held at our regulated insurance subsidiaries or for other operating activities that is unavailable for general corporate purposes.

At March 31, 2023, we had $1.8 billion of investment securities, which are all held as part of our insurance operations and are unavailable for general corporate purposes.

Liquidity Risks and Strategies

OMFC’s credit ratings are non-investment grade, which has a significant impact on our cost and access to capital. This, in turn, can negatively affect our ability to manage our liquidity and our ability or cost to refinance our indebtedness. There are numerous risks to our financial results, liquidity, capital raising, and debt refinancing plans, some of which may not be quantified in our current liquidity forecasts. These risks are further described in our “Liquidity and Capital Resources” of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II - Item 7 included in our Annual Report.

The principal factors that could decrease our liquidity are customer delinquencies and defaults, a decline in customer prepayments, rising interest rates, and a prolonged inability to adequately access capital market funding. We intend to support our liquidity position by utilizing strategies that are further described in our “Liquidity and Capital Resources” of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II - Item 7 included in our Annual Report.

However, it is possible that the actual outcome of one or more of our plans could be materially different than expected or that one or more of our significant judgments or estimates could prove to be materially incorrect.

56

OUR INSURANCE SUBSIDIARIES

Our insurance subsidiaries are subject to state regulations that limit their ability to pay dividends. AHL declared an ordinary dividend to OneMain Financial Holdings, LLC of $80 million and paid $40 million during the three months ended March 31, 2023. Triton did not declare or pay any dividends during the three months ended March 31, 2023. AHL and Triton did not pay dividends during the three months ended March 31, 2022. See Note 10 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for further information on these state restrictions and the dividends paid by our insurance subsidiaries in 2022.

OUR DEBT AGREEMENTS

The debt agreements which OMFC and its subsidiaries are a party to include customary terms and conditions, including covenants and representations and warranties. See Note 8 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for more information on the restrictive covenants under OMFC’s debt agreements, as well as the guarantees of OMFC’s long-term debt.

Securitized Borrowings

We execute private securitizations under Rule 144A of the Securities Act of 1933, as amended. As of March 31, 2023, our structured financings consisted of the following:

(dollars in millions)	Issue Amount (a)		Initial Collateral Balance		Current Note Amounts Outstanding (a)		Current Collateral Balance (b)		Current Weighted Average Interest Rate		Original Revolving Period
OMFIT 2018-2	368		381		350		388		3.87	%	5 years
OMFIT 2019-2	900		947		900		995		3.30	%	7 years
OMFIT 2019-A	789		892		750		892		3.78	%	7 years
OMFIT 2020-1	821		958		358		462		4.48	%	2 years
OMFIT 2020-2	1,000		1,053		1,000		1,053		2.03	%	5 years
OMFIT 2021-1	850		904		850		904		2.63	%	5 years
OMFIT 2022-S1	600		652		600		652		4.31	%	3 years
OMFIT 2022-2	1,000		1,099		1,000		1,099		5.17	%	2 years
OMFIT 2022-3	979		1,090		796		1,090		6.00	%	2 years
ODART 2019-1	737		750		700		750		3.79	%	5 years
ODART 2021-1	1,000		1,053		1,000		1,053		0.98	%	2 years
ODART 2022-1	600		632		600		632		5.00	%	2 years
ODART 2023-1 (c)	750		792		750		792		5.63	%	3 years
Total securitizations	$	10,394	$	11,203	$	9,654	$	10,762

(a) Issue Amount includes the retained interest amounts as applicable and the Current Note Amounts Outstanding balances reflect pay-downs subsequent to note issuance and exclude retained interest amounts.

(b) Inclusive of in-process replenishments of collateral for securitized borrowings in a revolving status as of March 31, 2023.

(c) On February 22, 2023 we issued $750 million of notes backed by direct auto loans. The notes mature in 2033.

57

Revolving Conduit Facilities

In addition to the structured financings, we had access to 15 revolving conduit facilities with a total borrowing capacity of $6.2 billion as of March 31, 2023:

(dollars in millions)	Advance Maximum Balance		Amount Drawn
OneMain Financial Funding VII, LLC	$	600	$	—
OneMain Financial Funding IX, LLC	600		—
OneMain Financial Auto Funding I, LLC	550		—
Seine River Funding, LLC	550		—
Hudson River Funding, LLC	500		—
OneMain Financial Funding VIII, LLC	400		—
River Thames Funding, LLC	400		—
OneMain Financial Funding X, LLC	400		—
Chicago River Funding, LLC	375		—
Mystic River Funding, LLC	350		—
Thayer Brook Funding, LLC	350		—
Columbia River Funding, LLC	350		100
Hubbard River Funding, LLC	250		—
New River Funding Trust	250		—
St. Lawrence River Funding, LLC	250		—
Total	$	6,175	$	100

OFF-BALANCE SHEET ARRANGEMENTS

We have no material off-balance sheet arrangements as defined by SEC rules, and we had no material off-balance sheet exposure to losses associated with unconsolidated VIEs at March 31, 2023 or December 31, 2022.

58

Critical Accounting Policies and Estimates

We describe our significant accounting policies used in the preparation of our condensed consolidated financial statements in Note 2 of the Notes to the Condensed Consolidated Financial Statements in Part II - Item 8 included in our Annual Report. We consider the allowance for finance receivable losses to be a critical accounting policy because it involves critical accounting estimates and a significant degree of management judgment.

During the three months ended March 31, 2023, we removed TDR finance receivables as a critical accounting policy and estimate as ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors as of January 1, 2023.

There have been no other material changes to our critical accounting policies or to our methodologies for deriving critical accounting estimates during the three months ended March 31, 2023.

Recent Accounting Pronouncements

See Note 2 of the Notes to the Condensed Consolidated Financial Statements included in this report for discussion of recently issued accounting pronouncements.

Seasonality

Our personal loan volume is generally highest during the second and fourth quarters of the year, primarily due to marketing efforts and seasonality of demand. Demand for our personal loans is usually lower in January and February after the holiday season and as a result of tax refunds. Delinquencies on our personal loans are generally lower in the first and second quarters and tend to rise throughout the remainder of the year. These seasonal trends contribute to fluctuations in our operating results and cash needs throughout the year.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes to our market risk previously disclosed in Part II - Item 7A included in our Annual Report.

59

Item 4. Controls and Procedures.

CONTROLS AND PROCEDURES OF ONEMAIN HOLDINGS, INC.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to provide reasonable assurance that the information OMH is required to disclose in reports that OMH files or submits under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As of March 31, 2023, OMH carried out an evaluation of the effectiveness of its disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. This evaluation was conducted under the supervision of, and with the participation of OMH’s management, including the Chief Executive Officer and the Chief Financial Officer. Based on the evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that OMH's disclosure controls and procedures were effective as of March 31, 2023 to provide the reasonable assurance described above.

Changes in Internal Control over Financial Reporting

There were no changes in OMH's internal control over financial reporting during the first quarter of 2023 that have materially affected, or are reasonably likely to materially affect, OMH's internal control over financial reporting.

CONTROLS AND PROCEDURES OF ONEMAIN FINANCE CORPORATION

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to provide reasonable assurance that the information OMFC is required to disclose in reports that OMFC files or submits under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As of March 31, 2023, OMFC carried out an evaluation of the effectiveness of its disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. This evaluation was conducted under the supervision of, and with the participation of OMFC’s management, including the Chief Executive Officer and the Chief Financial Officer. Based on the evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that OMFC's disclosure controls and procedures were effective as of March 31, 2023 to provide the reasonable assurance described above.

Changes in Internal Control over Financial Reporting

There were no changes in OMFC's internal control over financial reporting during the first quarter of 2023 that have materially affected, or are reasonably likely to materially affect, OMFC's internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

See Note 12 of the Notes to the Condensed Consolidated Financial Statements included in this report.

Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should consider the factors discussed in Part I - Item 1A. “Risk Factors” in our Annual Report, which could materially affect our business, financial condition, or future results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

There were no unregistered sales of our common stock during the period covered by this Quarterly Report on Form 10-Q.

Issuer Purchases of Equity Securities

The following table presents information regarding repurchases of our common stock, excluding commissions and fees, during the quarter ended March 31, 2023, based on settlement date:

Period	Total Number of Shares Purchased	Average Price  paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (a)	Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (a)
January 1 - January 31	265,224	$	37.70	265,224	$	715,533,796
February 1 - February 28	214,367	44.31		214,367	706,034,301
March 1 - March 31	203,793	39.26		203,793	698,033,606
Total	683,384	$	40.24	683,384

(a)    On February 2, 2022, the Board authorized a $1 billion stock repurchase program, excluding fees, commissions, and other expenses related to the repurchases. The authorization expires on December 31, 2024. The timing, number and share price of any additional shares repurchased will be determined by OMH based on its evaluation of market conditions and other factors and will be made in accordance with applicable securities laws in either the open market or in privately negotiated transactions. OMH is not obligated to purchase any shares under the program, which may be modified, suspended or discontinued at any time.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

None.

Item 5. Other Information.

None.

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Item 6. Exhibit Index.

Exhibit Number	Description
3.1	Amended and Restated Bylaws of OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.). Incorporated by reference to Exhibit 3.1 to OMH’s Current Report on Form 8-K filed on February 3, 2023.
31.1	Rule 13a-14(a)/15d-14(a) Certifications of Principal Executive Officer of OneMain Holdings, Inc.
31.2	Rule 13a-14(a)/15d-14(a) Certifications of the Principal Financial Officer of OneMain Holdings, Inc.
31.3	Rule 13a-14(a)/15d-14(a) Certifications of the Principal Executive Officer of OneMain Finance Corporation
31.4	Rule 13a-14(a)/15d-14(a) Certifications of the Principal Financial Officer of OneMain Finance Corporation
32.1	Section 1350 Certifications of OneMain Holdings, Inc.
32.2	Section 1350 Certifications of OneMain Finance Corporation
101	Interactive data files pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL:    (i) Condensed Consolidated Balance Sheets,    (ii) Condensed Consolidated Statements of Operations,    (iii) Condensed Consolidated Statements of Comprehensive Income,    (iv) Condensed Consolidated Statements of Shareholder’s Equity,    (v) Condensed Consolidated Statements of Cash Flows, and    (vi) Notes to the Condensed Consolidated Financial Statements.
104	Cover Page Interactive Data File in Inline XBRL format (Included in Exhibit 101).

62

OMH Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ONEMAIN HOLDINGS, INC.
		(Registrant)
Date:	April 28, 2023	By:	/s/ Micah R. Conrad
			Micah R. Conrad
			Executive Vice President and Chief Financial Officer
			(Duly Authorized Officer and Principal Financial Officer)

63

OMFC Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ONEMAIN FINANCE CORPORATION
		(Registrant)
Date:	April 28, 2023	By:	/s/ Matthew W. Vaughan
			Matthew W. Vaughan
			Vice President - Senior Managing Director and Chief Financial Officer
			(Duly Authorized Officer and Principal Financial Officer)

64

EX-31.1

Exhibit 31.1

Certifications

I, Douglas H. Shulman, President and Chief Executive Officer, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of OneMain Holdings, Inc. (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 28, 2023
		/s/ Douglas H. Shulman
		Douglas H. Shulman
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certifications

I, Micah R. Conrad, Executive Vice President and Chief Financial Officer, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of OneMain Holdings, Inc. (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 28, 2023
		/s/ Micah R. Conrad
		Micah R. Conrad
		Executive Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

EX-31.3

Exhibit 31.3

Certifications

I, Micah R. Conrad, President and Chief Executive Officer, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of OneMain Finance Corporation (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 28, 2023
		/s/ Micah R. Conrad
		Micah R. Conrad
		President and Chief Executive Officer

EX-31.4

Exhibit 31.4

Certifications

I, Matthew W. Vaughan, Vice President - Senior Managing Director and Chief Financial Officer, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of OneMain Finance Corporation (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 28, 2023
		/s/ Matthew W. Vaughan
		Matthew W. Vaughan
		Vice President - Senior Managing Director and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certifications

In connection with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 of OneMain Holdings, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of Douglas H. Shulman, President and Chief Executive Officer of the Company, and Micah R. Conrad, Executive Vice President and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

		/s/ Douglas H. Shulman
		Douglas H. Shulman
		President and Chief Executive Officer
		/s/ Micah R. Conrad
		Micah R. Conrad
		Executive Vice President and Chief Financial Officer
Date:	April 28, 2023

EX-32.2

Exhibit 32.2

Certifications

In connection with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 of OneMain Finance Corporation (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of Micah R. Conrad, President and Chief Executive Officer of the Company, and Matthew W. Vaughan, Vice President - Senior Managing Director and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

		/s/ Micah R. Conrad
		Micah R. Conrad
		President and Chief Executive Officer
		/s/ Matthew W. Vaughan
		Matthew W. Vaughan
		Vice President - Senior Managing Director and Chief Financial Officer
Date:	April 28, 2023

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Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 19, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-36129
Entity Registrant Name	ONEMAIN HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-3379612
Entity Address, Address Line One	601 N.W. Second Street
Entity Address, City or Town	Evansville
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47708
City Area Code	812
Local Phone Number	424-8031
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	OMF
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		120,587,214
Entity Central Index Key	0001584207
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
OMFC
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-06155
Entity Registrant Name	ONEMAIN FINANCE CORPORATION
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-0416090
Entity Address, Address Line One	601 N.W. Second Street
Entity Address, City or Town	Evansville
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47708
City Area Code	812
Local Phone Number	424-8031
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,160,021
Entity Central Index Key	0000025598
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 544	$ 498
Investment securities (includes available-for-sale securities with a fair value of $1.7 billion and an amortized cost basis of $1.9 billion in 2023 and 2022)	1,786	1,800
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion in 2023 and $10.4 billion in 2022)	19,809	19,986
Unearned insurance premium and claim reserves	(740)	(749)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022)	(2,298)	(2,311)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	16,771	16,926
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022)	531	461
Goodwill	1,437	1,437
Other intangible assets	261	261
Other assets	1,113	1,154
Total assets	22,443	22,537
Liabilities and Shareholders’ Equity
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022)	18,206	18,281
Insurance claims and policyholder liabilities	615	620
Deferred and accrued taxes	22	5
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022)	519	616
Total liabilities	19,362	19,522
Contingencies (Note 12)
Shareholders’ equity:
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 120,587,214 and 121,042,125 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	1	1
Additional paid-in capital	1,693	1,689
Accumulated other comprehensive loss	(108)	(127)
Retained earnings	2,188	2,119
Treasury stock, at cost; 14,475,790 and 13,813,476 shares at March 31, 2023 and December 31, 2022, respectively	(693)	(667)
Total shareholders’ equity	3,081	3,015
Total liabilities and shareholders’ equity	$ 22,443	$ 22,537

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Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Investment securities, fair value	$ 1,716	$ 1,729
Investment securities, amortized cost basis	1,859	1,897
Net finance receivables	19,809	19,986
Financing receivable, allowance for credit loss	2,298	2,311
Restricted cash and restricted cash equivalents	531	461
Long-term debt	18,206	18,281
Other liabilities	$ 519	$ 616
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	120,587,214	121,042,125
Common stock, shares outstanding (in shares)	120,587,214	121,042,125
Treasury stock at cost (in shares)	14,475,790	13,813,476
Consolidated VIEs
Net finance receivables	$ 11,108	$ 10,432
Financing receivable, allowance for credit loss	1,206	1,126
Restricted cash and restricted cash equivalents	513	442
Long-term debt	10,060	9,361
Other liabilities	$ 20	$ 20

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Interest income	$ 1,094	$ 1,089
Interest expense	239	219
Net interest income	855	870
Provision for finance receivable losses	385	238
Net interest income after provision for finance receivable losses	470	632
Other revenues:
Insurance	111	111
Investment	25	15
Gain on sales of finance receivables	17	17
Other	24	19
Total other revenues	177	162
Other expenses:
Salaries and benefits	212	205
Other operating expenses	153	148
Insurance policy benefits and claims	47	42
Total other expenses	412	395
Income before income taxes	235	399
Income taxes	56	96
Net income	$ 179	$ 303
Weighted average number of shares outstanding:
Basic (in shares)	120,765,661	127,075,714
Diluted (in shares)	120,969,891	127,463,027
Earnings per share:
Basic (in dollars per share)	$ 1.48	$ 2.38
Diluted (in dollars per share)	$ 1.48	$ 2.38

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 179	$ 303
Other comprehensive income (loss):
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	24	(105)
Foreign currency translation adjustments	0	2
Changes in discount rate for insurance claims and policyholder liabilities	4	32
Other	(3)	13
Income tax effect:
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	(5)	24
Foreign currency translation adjustments	0	(1)
Changes in discount rate for insurance claims and policyholder liabilities	(1)	(7)
Other	0	(3)
Other comprehensive income (loss), net of tax, before reclassification adjustments	19	(45)
Net realized losses on available-for-sale securities, net of tax	0	(2)
Reclassification adjustments included in net income, net of tax	0	(2)
Other comprehensive income (loss), net of tax	19	(47)
Comprehensive income	$ 198	$ 256

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Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - USD ($) $ in Millions		Total	Cumulative Effect, Period Of Adoption, Adjustment	Cumulative Effect, Period Of Adoption, Adjusted Balance	Common Stock	Common Stock Cumulative Effect, Period Of Adoption, Adjusted Balance	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period Of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period Of Adoption, Adjusted Balance	Retained Earnings	Retained Earnings Cumulative Effect, Period Of Adoption, Adjustment	Retained Earnings Cumulative Effect, Period Of Adoption, Adjusted Balance	Treasury Stock	Treasury Stock Cumulative Effect, Period Of Adoption, Adjusted Balance
Balance at beginning of period at Dec. 31, 2021		$ 3,037			$ 1		$ 1,672		$ 5		$ 1,727			$ (368)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]		Accounting Standards Update 2022-02 [Member]
Common stock repurchased		$ (110)												(110)
Share-based compensation expense, net of forfeitures		12					12
Withholding tax on share-based compensation		(12)					(12)
Other comprehensive income (loss)		(47)							(47)
Cash dividends	[1]	(123)									(123)
Net income		303									303
Balance at end of period at Mar. 31, 2022		3,060			1		1,672		(42)		1,907			(478)
Balance at beginning of period at Dec. 31, 2021		$ 3,037			1		1,672		5		1,727			(368)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]		Accounting Standards Update 2022-02 [Member]
Balance at end of period at Dec. 31, 2022		$ 3,015	$ 12	$ 3,027	1	$ 1	1,689	$ 1,689	(127)	$ (127)	2,119	$ 12	$ 2,131	(667)	$ (667)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock repurchased		(27)												(27)
Treasury stock issued (in shares)		1												1
Share-based compensation expense, net of forfeitures		12					12
Withholding tax on share-based compensation		(8)					(8)
Other comprehensive income (loss)		19							19
Cash dividends	[1]	(122)									(122)
Net income		179									179
Balance at end of period at Mar. 31, 2023		$ 3,081			$ 1		$ 1,693		$ (108)		$ 2,188			$ (693)

[1] * Cash dividends declared were $1.00 per share and $0.95 per share during the three months ended March 31, 2023 and 2022, respectively.

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Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 1.00	$ 0.95

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
Net income	$ 179	$ 303
Reconciling adjustments:
Provision for finance receivable losses	385	238
Depreciation and amortization	61	61
Deferred income tax charge	9	22
Share-based compensation expense, net of forfeitures	12	12
Gain on sales of finance receivables	(17)	(17)
Other	(1)	(2)
Cash flows due to changes in other assets and other liabilities	(66)	(65)
Net cash provided by operating activities	562	552
Cash flows from investing activities
Net principal originations and purchases of finance receivables	(432)	(245)
Proceeds from sales of finance receivables	200	200
Available-for-sale securities purchased	(44)	(90)
Available-for-sale securities called, sold, and matured	88	196
Other securities purchased	(2)	(2)
Other securities called, sold, and matured	2	7
Other, net	(16)	(16)
Net cash provided by (used for) investing activities	(204)	50
Cash flows from financing activities
Proceeds from issuance and borrowings of long-term debt, net of issuance costs	843	198
Repayments and repurchases of long-term debt	(928)	(398)
Cash dividends	(123)	(126)
Common stock repurchased	(27)	(110)
Treasury stock issued	1	0
Withholding tax on share-based compensation	(8)	(12)
Net cash used for financing activities	(242)	(448)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents	116	154
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period	959	1,017
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	1,075	1,171
Supplemental cash flow information
Cash and cash equivalents	544	640
Restricted cash and restricted cash equivalents	531	531
Total cash and cash equivalents and restricted cash and restricted cash equivalents	$ 1,075	$ 1,171

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Condensed Consolidated Balance Sheets (Unaudited) - OMFC - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 544	$ 498
Investment securities (includes available-for-sale securities with a fair value of $1.7 billion and an amortized cost basis of $1.9 billion in 2023 and 2022)	1,786	1,800
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion in 2023 and $10.4 billion in 2022)	19,809	19,986
Unearned insurance premium and claim reserves	(740)	(749)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022)	(2,298)	(2,311)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	16,771	16,926
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022)	531	461
Goodwill	1,437	1,437
Other intangible assets	261	261
Other assets	1,113	1,154
Total assets	22,443	22,537
Liabilities and Shareholders’ Equity
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022)	18,206	18,281
Insurance claims and policyholder liabilities	615	620
Deferred and accrued taxes	22	5
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022)	519	616
Total liabilities	19,362	19,522
Contingencies (Note 12)
Shareholders’ equity:
Common stock, par value $0.50 per share; 25,000000 shares authorized, 10,160021 shares issued and outstanding at March 31, 2023and December 31, 2022	1	1
Additional paid-in capital	1,693	1,689
Accumulated other comprehensive loss	(108)	(127)
Retained earnings	2,188	2,119
Total shareholders’ equity	3,081	3,015
Total liabilities and shareholders’ equity	22,443	22,537
Consolidated VIEs
Assets
Cash and cash equivalents	2	2
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion in 2023 and $10.4 billion in 2022)	11,108	10,432
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022)	(1,206)	(1,126)
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022)	513	442
Other assets	29	28
Liabilities and Shareholders’ Equity
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022)	10,060	9,361
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022)	20	20
OMFC
Assets
Cash and cash equivalents	533	490
Investment securities (includes available-for-sale securities with a fair value of $1.7 billion and an amortized cost basis of $1.9 billion in 2023 and 2022)	1,786	1,800
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion in 2023 and $10.4 billion in 2022)	19,809	19,986
Unearned insurance premium and claim reserves	(740)	(749)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022)	(2,298)	(2,311)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	16,771	16,926
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022)	531	461
Goodwill	1,437	1,437
Other intangible assets	261	261
Other assets	1,113	1,152
Total assets	22,432	22,527
Liabilities and Shareholders’ Equity
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022)	18,206	18,281
Insurance claims and policyholder liabilities	615	620
Deferred and accrued taxes	23	5
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022)	520	617
Total liabilities	19,364	19,523
Contingencies (Note 12)
Shareholders’ equity:
Common stock, par value $0.50 per share; 25,000000 shares authorized, 10,160021 shares issued and outstanding at March 31, 2023and December 31, 2022	5	5
Additional paid-in capital	1,937	1,933
Accumulated other comprehensive loss	(108)	(127)
Retained earnings	1,234	1,193
Total shareholders’ equity	3,068	3,004
Total liabilities and shareholders’ equity	22,432	22,527
OMFC | Consolidated VIEs
Assets
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion in 2023 and $10.4 billion in 2022)	11,100	10,400
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022)	(1,200)	(1,100)
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022)	513	442
Liabilities and Shareholders’ Equity
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022)	10,100	9,400
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022)	$ 20	$ 20

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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - OMFC - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Investment securities, fair value	$ 1,716	$ 1,729
Investment securities, amortized cost basis	1,859	1,897
Net finance receivables	19,809	19,986
Financing receivable, allowance for credit loss	2,298	2,311
Restricted cash and restricted cash equivalents	531	461
Long-term debt	18,206	18,281
Other liabilities	$ 519	$ 616
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	120,587,214	121,042,125
Common stock, shares outstanding (in shares)	120,587,214	121,042,125
OMFC
Investment securities, fair value	$ 1,700	$ 1,700
Investment securities, amortized cost basis	1,900	1,900
Net finance receivables	19,809	19,986
Financing receivable, allowance for credit loss	2,298	2,311
Restricted cash and restricted cash equivalents	531	461
Long-term debt	18,206	18,281
Other liabilities	$ 520	$ 617
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	10,160,021	10,160,021
Common stock, shares outstanding (in shares)	10,160,021	10,160,021
Consolidated VIEs
Net finance receivables	$ 11,108	$ 10,432
Financing receivable, allowance for credit loss	1,206	1,126
Restricted cash and restricted cash equivalents	513	442
Long-term debt	10,060	9,361
Other liabilities	20	20
Consolidated VIEs | OMFC
Net finance receivables	11,100	10,400
Financing receivable, allowance for credit loss	1,200	1,100
Restricted cash and restricted cash equivalents	513	442
Long-term debt	10,100	9,400
Other liabilities	$ 20	$ 20

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Condensed Consolidated Statements of Operations (Unaudited) - OMFC - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest income	$ 1,094	$ 1,089
Interest expense	239	219
Net interest income	855	870
Provision for finance receivable losses	385	238
Net interest income after provision for finance receivable losses	470	632
Other revenues:
Insurance	111	111
Investment	25	15
Gain on sales of finance receivables	17	17
Other	24	19
Total other revenues	177	162
Other expenses:
Salaries and benefits	212	205
Other operating expenses	153	148
Insurance policy benefits and claims	47	42
Total other expenses	412	395
Income before income taxes	235	399
Income taxes	56	96
Net income	179	303
OMFC
Interest income	1,094	1,089
Interest expense	239	219
Net interest income	855	870
Provision for finance receivable losses	385	238
Net interest income after provision for finance receivable losses	470	632
Other revenues:
Insurance	111	111
Investment	25	15
Gain on sales of finance receivables	17	17
Other	24	19
Total other revenues	177	162
Other expenses:
Salaries and benefits	212	205
Other operating expenses	153	148
Insurance policy benefits and claims	47	42
Total other expenses	412	395
Income before income taxes	235	399
Income taxes	56	96
Net income	$ 179	$ 303

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - OMFC - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net income	$ 179	$ 303
Other comprehensive income (loss):
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	24	(105)
Foreign currency translation adjustments	0	2
Changes in discount rate for insurance claims and policyholder liabilities	4	32
Other	(3)	13
Income tax effect:
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	(5)	24
Foreign currency translation adjustments	0	(1)
Changes in discount rate for insurance claims and policyholder liabilities	(1)	(7)
Other	0	(3)
Other comprehensive income (loss), net of tax, before reclassification adjustments	19	(45)
Net realized losses on available-for-sale securities, net of tax	0	(2)
Reclassification adjustments included in net income, net of tax	0	(2)
Other comprehensive income (loss), net of tax	19	(47)
Comprehensive income	198	256
OMFC
Net income	179	303
Other comprehensive income (loss):
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	24	(105)
Foreign currency translation adjustments	0	2
Changes in discount rate for insurance claims and policyholder liabilities	4	32
Other	(3)	13
Income tax effect:
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities	(5)	24
Foreign currency translation adjustments	0	(1)
Changes in discount rate for insurance claims and policyholder liabilities	(1)	(7)
Other	0	(3)
Other comprehensive income (loss), net of tax, before reclassification adjustments	19	(45)
Net realized losses on available-for-sale securities, net of tax	0	(2)
Reclassification adjustments included in net income, net of tax	0	(2)
Other comprehensive income (loss), net of tax	19	(47)
Comprehensive income	$ 198	$ 256

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Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - OMFC - USD ($) $ in Millions	Total		Cumulative Effect, Period Of Adoption, Adjustment	Cumulative Effect, Period Of Adoption, Adjusted Balance	Common Stock	Common Stock Cumulative Effect, Period Of Adoption, Adjusted Balance	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period Of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period Of Adoption, Adjusted Balance	Retained Earnings		Retained Earnings Cumulative Effect, Period Of Adoption, Adjustment	Retained Earnings Cumulative Effect, Period Of Adoption, Adjusted Balance	OMFC	OMFC Cumulative Effect, Period Of Adoption, Adjustment	OMFC Cumulative Effect, Period Of Adoption, Adjusted Balance	OMFC Common Stock	OMFC Common Stock Cumulative Effect, Period Of Adoption, Adjusted Balance	OMFC Additional Paid-in Capital	OMFC Additional Paid-in Capital Cumulative Effect, Period Of Adoption, Adjusted Balance	OMFC Accumulated Other Comprehensive Income (Loss)	OMFC Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period Of Adoption, Adjusted Balance	OMFC Retained Earnings	OMFC Retained Earnings Cumulative Effect, Period Of Adoption, Adjustment	OMFC Retained Earnings Cumulative Effect, Period Of Adoption, Adjusted Balance
Balance at beginning of period at Dec. 31, 2021	$ 3,037				$ 1		$ 1,672		$ 5		$ 1,727				$ 3,004			$ 5		$ 1,916		$ 5		$ 1,078
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2022-02 [Member]
Share-based compensation expense, net of forfeitures	$ 12						12								12					12
Withholding tax on share-based compensation	(12)						(12)								(12)					(12)
Other comprehensive income (loss)	(47)								(47)						(47)							(47)
Cash dividends	(123)	[1]									(123)	[1]			(223)									(223)
Net income	303										303				303									303
Balance at end of period at Mar. 31, 2022	3,060				1		1,672		(42)		1,907				3,037			5		1,916		(42)		1,158
Balance at beginning of period at Dec. 31, 2021	$ 3,037				1		1,672		5		1,727				3,004			5		1,916		5		1,078
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2022-02 [Member]
Balance at end of period at Dec. 31, 2022	$ 3,015		$ 12	$ 3,027	1	$ 1	1,689	$ 1,689	(127)	$ (127)	2,119		$ 12	$ 2,131	3,004	$ 12	$ 3,016	5	$ 5	1,933	$ 1,933	(127)	$ (127)	1,193	$ 12	$ 1,205
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense, net of forfeitures	12						12								12					12
Withholding tax on share-based compensation	(8)						(8)								(8)					(8)
Other comprehensive income (loss)	19								19						19							19
Cash dividends	(122)	[1]									(122)	[1]			(150)									(150)
Net income	179										179				179									179
Balance at end of period at Mar. 31, 2023	$ 3,081				$ 1		$ 1,693		$ (108)		$ 2,188				$ 3,068			$ 5		$ 1,937		$ (108)		$ 1,234

[1] * Cash dividends declared were $1.00 per share and $0.95 per share during the three months ended March 31, 2023 and 2022, respectively.

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Condensed Consolidated Statements of Cash Flows (Unaudited) - OMFC - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
Net income	$ 179	$ 303
Reconciling adjustments:
Provision for finance receivable losses	385	238
Depreciation and amortization	61	61
Deferred income tax charge	9	22
Share-based compensation expense, net of forfeitures	12	12
Gain on sales of finance receivables	(17)	(17)
Other	(1)	(2)
Cash flows due to changes in other assets and other liabilities	(66)	(65)
Net cash provided by operating activities	562	552
Cash flows from investing activities
Net principal originations and purchases of finance receivables	(432)	(245)
Proceeds from sales of finance receivables	200	200
Available-for-sale securities purchased	(44)	(90)
Available-for-sale securities called, sold, and matured	88	196
Other securities purchased	(2)	(2)
Other securities called, sold, and matured	2	7
Other, net	(16)	(16)
Net cash provided by (used for) investing activities	(204)	50
Cash flows from financing activities
Proceeds from issuance and borrowings of long-term debt, net of issuance costs	843	198
Repayments and repurchases of long-term debt	(928)	(398)
Cash dividends	(123)	(126)
Withholding tax on share-based compensation	(8)	(12)
Net cash used for financing activities	(242)	(448)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents	116	154
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period	959	1,017
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	1,075	1,171
Supplemental cash flow information
Cash and cash equivalents	544	640
Restricted cash and restricted cash equivalents	531	531
Total cash and cash equivalents and restricted cash and restricted cash equivalents	1,075	1,171
OMFC
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
Net income	179	303
Reconciling adjustments:
Provision for finance receivable losses	385	238
Depreciation and amortization	61	61
Deferred income tax charge	9	22
Share-based compensation expense, net of forfeitures	12	12
Gain on sales of finance receivables	(17)	(17)
Other	(1)	(2)
Cash flows due to changes in other assets and other liabilities	(66)	(64)
Net cash provided by operating activities	562	553
Cash flows from investing activities
Net principal originations and purchases of finance receivables	(432)	(245)
Proceeds from sales of finance receivables	200	200
Available-for-sale securities purchased	(44)	(90)
Available-for-sale securities called, sold, and matured	88	196
Other securities purchased	(2)	(2)
Other securities called, sold, and matured	2	7
Other, net	(16)	(16)
Net cash provided by (used for) investing activities	(204)	50
Cash flows from financing activities
Proceeds from issuance and borrowings of long-term debt, net of issuance costs	843	198
Repayments and repurchases of long-term debt	(928)	(398)
Cash dividends	(152)	(226)
Withholding tax on share-based compensation	(8)	(12)
Net cash used for financing activities	(245)	(438)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents	113	165
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period	951	986
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period	1,064	1,151
Supplemental cash flow information
Cash and cash equivalents	533	620
Restricted cash and restricted cash equivalents	531	531
Total cash and cash equivalents and restricted cash and restricted cash equivalents	$ 1,064	$ 1,151

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Business and Basis of Presentation

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Basis of Presentation

1. Business and Basis of Presentation

OneMain Holdings, Inc. (“OMH”), and its wholly owned direct subsidiary, OneMain Finance Corporation (“OMFC”) are financial services holding companies whose subsidiaries engage in the consumer finance and insurance businesses.

The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this filing relates to both OMH and OMFC, except where otherwise indicated. OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “OneMain,” “we,” “us,” or “our.”

BASIS OF PRESENTATION

We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.

We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date.

The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report. We follow the same significant accounting policies for our interim reporting except for the new accounting pronouncements subsequently adopted and disclosed in Note 2. To conform to the 2023 presentation, we reclassified certain items in prior periods of our condensed consolidated financial statements.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

2. Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Insurance

In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. The ASU requires the assumptions used to measure the liability for future policy benefits to be updated at least annually. The guidance prescribes the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income.

The amendments in this ASU became effective for the Company beginning January 1, 2023 and we adopted using the modified retrospective transition method. This ASU required a transition date of January 1, 2021 and resulted in recasting prior periods.

The effects of the adoption of ASU 2018-12 to our condensed consolidated balance sheets were as follows:

(dollars in millions)	As Reported		ASU 2018-12 Adjustment		As Recast
December 31, 2022
Other assets (OMH only)	$	1,150	$	4	$	1,154
Other assets (OMFC only)	1,148		4		1,152
Insurance claims and policyholder liabilities	602		18		620
Accumulated other comprehensive loss	(119)		(8)		(127)
Retained earnings (OMH only)	2,125		(6)		2,119
Retained earnings (OMFC only)	1,199		(6)		1,193
March 31, 2022
Other assets (OMH only)	$	981	$	8	$	989
Other assets (OMFC only)	980		8		988
Insurance claims and policyholder liabilities	621		37		658
Accumulated other comprehensive loss	(11)		(31)		(42)
Retained earnings (OMH only)	1,905		2		1,907
Retained earnings (OMFC only)	1,156		2		1,158
December 31, 2021
Other assets (OMH only)	$	1,003	$	16	$	1,019
Other assets (OMFC only)	1,001		16		1,017
Insurance claims and policyholder liabilities	621		72		693
Accumulated other comprehensive income	61		(56)		5
January 1, 2021
Other assets (OMH and OMFC)	$	1,054	$	21	$	1,075
Insurance claims and policyholder liabilities	621		97		718
Accumulated other comprehensive income	94		(76)		18

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of operations were as follows:

(dollars in millions, except per share amounts)	As Reported		ASU 2018-12 Adjustment		As Recast
Three Months Ended March 31, 2022
Insurance policy benefits and claims	$	45	$	(3)	$	42
Income before income taxes	396		3		399
Income taxes	95		1		96
Net income	301		2		303
Basic EPS (OMH only)	2.37		0.01		2.38
Diluted EPS (OMH only)	2.36		0.02		2.38

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of comprehensive income were as follows:

(dollars in millions)	As Reported		ASU 2018-12 Adjustment		As Recast
Three Months Ended March 31, 2022
Comprehensive income	$	229	$	27	$	256

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of cash flows were as follows:

(dollars in millions)	As Reported		ASU 2018-12 Adjustment		As Recast
Three Months Ended March 31, 2022
Net income	$	301	$	2	$	303
Deferred income tax charge	21		1		22
Cash flows due to changes in other assets and other liabilities (OMH only)	(62)		(3)		(65)
Cash flows due to changes in other assets and other liabilities (OMFC only)	(61)		(3)		(64)

As a result of the adoption of ASU 2018-12, our significant accounting policy related to long-duration insurance contracts for policy and claim reserves has changed to reflect the requirements of the new standard. See below for the updated significant accounting policy as of the transition date of January 1, 2021.

Policy and Claim Reserves

Policy reserves are established for our long-duration contracts. The liability for future policy benefits is the present value of estimated future policy benefits to be paid to or on behalf of policyholders less the present value of estimated future net premiums to be collected from policyholders. To estimate the liability, we make assumptions for mortality, morbidity, lapses, and the discount rate.

At least annually, we update our estimate of the liability with actual experience and review our cash flow assumptions. The updated liability is discounted at the original discount rate at contract inception, and the change in the balance is recognized as a remeasurement gain or loss and included in Insurance policy benefits and claims in our consolidated statements of operations.

The discount rate assumption is the equivalent of an upper-medium grade fixed-income instrument yield. To determine the original discount rate at contract inception, we use a weighted average rate based on a forward yield curve over the contract issue year. At each reporting period, the liability is remeasured using the current discount rate and the change in the liability due to the discount rate is recognized in Accumulated other comprehensive income (loss) in our consolidated balance sheets.

Financial Instruments

In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables.

We adopted the amendments in this ASU as of January 1, 2023 using the modified retrospective transition method.

Upon adoption, we recorded a decrease to the allowance for finance receivable losses of $16 million, a decrease to deferred tax assets of $4 million and a one-time corresponding cumulative increase to retained earnings, net of tax, of $12 million in our consolidated balance sheets as of January 1, 2023.

As a result of the adoption of ASU 2022-02, several of our significant accounting policies have changed to reflect the requirements of the new standard. See below for the updated significant accounting policies as of January 1, 2023.

Troubled Debt Restructured Finance Receivables

ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors. As a result of the adoption of this ASU, the accounting for TDRs is no longer applicable for periods beginning on or after January 1, 2023.

Modified Finance Receivables to Borrowers Experiencing Financial Difficulty

We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty, participating in a counseling or settlement arrangement, or are in bankruptcy. When we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties, we classify that receivable as a modified finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future.

When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce the interest rate, extend the term, defer or forgive past due interest, or forgive principal. As part of the modification, we may require qualifying payments before the accounts are generally brought current for delinquency reporting. In addition, for principal forgiveness, we may require future payment performance by the borrower under the modified terms before the balances are contractually forgiven. We fully reserve for any potential principal forgiveness in our allowance for finance receivable losses.

Account modifications that are deemed to be a modified finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses.

Allowance for Finance Receivable Losses

We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment.

We estimate the allowance for finance receivable losses primarily on historical loss experience using a cumulative loss model applied to our personal loan portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our personal loans are primarily segmented in the loss model by contractual delinquency status.

Other attributes in the model include loan modification status, collateral mix and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term. Our methodology relies on historical loss experience to forecast the corresponding future outcomes. These patterns are then applied to the current portfolio to obtain an estimate of future losses. We also consider key economic trends including unemployment rates. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. No new volume is assumed. Personal loan renewals are a significant piece of our new volume and are considered a terminal event of the previous loan.

For our personal loans, we have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charge amounts previously accrued after four contractual payments become past due. For credit cards, we measure an allowance on uncollected finance charges, but do not measure an allowance on the unfunded portion of the credit card lines as the accounts are unconditionally cancellable.

Management exercises its judgment when determining the amount of allowance for finance receivable losses. Our judgment is based on quantitative analyses, qualitative factors (such as recent portfolio, industry, and other economic trends), and experience in the consumer finance industry. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning.

We generally charge off to the allowance for finance receivable losses on personal loans and credit cards that are beyond seven payments (approximately 180 days) past due. Exceptions include accounts in bankruptcy, which are generally charged off at the earlier of notice of discharge or when the customer becomes seven payments past due, and accounts of deceased borrowers, which are generally charged off at the time of notice. Generally, we start repossession of any titled personal property when the customer becomes two payments (approximately 30 days) past due and may charge off prior to the account becoming seven payments (approximately 180 days) past due.

We may renew delinquent secured or unsecured personal loan accounts if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the renewed loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit.

See Notes 3 and 4 for additional information on the adoption of ASU 2022-02.

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Finance Receivables

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Finance Receivables

3. Finance Receivables

Our finance receivables consist of personal loans and credit cards. Personal loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles, other titled collateral, or are unsecured. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured.

Components of our net finance receivables were as follows:

(dollars in millions)	Personal Loans		Credit Cards		Total
March 31, 2023
Gross finance receivables *	$	19,444	$	121	$	19,565
Unearned fees	(215)		—		(215)
Accrued finance charges and fees	276		—		276
Deferred origination costs	182		1		183
Total	$	19,687	$	122	$	19,809
December 31, 2022
Gross finance receivables *	$	19,615	$	107	$	19,722
Unearned fees	(220)		—		(220)
Accrued finance charges and fees	299		—		299
Deferred origination costs	185		—		185
Total	$	19,879	$	107	$	19,986

* Personal loan gross finance receivables equal the unpaid principal balance. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the principal balance and billed interest and fees.

WHOLE LOAN SALE TRANSACTIONS

As of March 31, 2023, we have whole loan sale flow agreements with third parties, with remaining terms of less than one year, in which we agreed to sell a combined total of $135 million gross receivables per quarter of newly originated unsecured personal loans along with any associated accrued interest. These unsecured personal loans are derecognized from our balance sheet at the time of sale. We service the personal loans sold and are entitled to a servicing fee and other fees commensurate with the services performed as part of the agreements. The gain on sales and servicing fees are recorded in Other revenues in our condensed consolidated statements of operations. We sold $180 million of gross finance receivables during the three months ended March 31, 2023 and 2022. The gain on the sales were $17 million during the three months ended March 31, 2023 and 2022.

CREDIT QUALITY INDICATOR

We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio.

When personal loans are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and move collection of these accounts to our central collection operations. We consider our personal loans to be nonperforming at 90 days or more contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. For our personal loans, we reversed net accrued finance charges of $37 million and $27 million during the three months ended March 31, 2023 and 2022, respectively.

Finance charges recognized from the contractual interest portion of payments received on nonaccrual personal loans totaled $6 million and $4 million during the three months ended March 31, 2023 and 2022, respectively. All personal loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses.

We accrue finance charges and fees on credit cards until charge-off at approximately 180 days past due, at which point we reverse finance charges and fees previously accrued. For credit cards, net accrued finance charges and fees reversed for the three months ended March 31, 2023 and 2022 were immaterial.

The following tables below are a summary of our personal loans by the year of origination and number of days delinquent:

(dollars in millions)	2023		2022		2021		2020		2019		Prior		Total
March 31, 2023
Performing
Current	$	2,641	$	9,224	$	4,195	$	1,464	$	861	$	260	$	18,645
30-59 days past due	3		137		98		31		19		9		297
60-89 days past due	—		98		72		22		13		6		211
Total performing	2,644		9,459		4,365		1,517		893		275		19,153
Nonperforming (Nonaccrual)
90+ days past due	—		217		206		61		35		15		534
Total	$	2,644	$	9,676	$	4,571	$	1,578	$	928	$	290	$	19,687
Gross charge-offs	$	—	$	139	$	199	$	59	$	34	$	14	$	445

(dollars in millions)	2022		2021		2020		2019		2018		Prior		Total
December 31, 2022
Performing
Current	$	10,614	$	4,927	$	1,758	$	1,081	$	240	$	105	$	18,725
30-59 days past due	136		136		43		28		9		5		357
60-89 days past due	92		101		32		19		6		3		253
Total performing	10,842		5,164		1,833		1,128		255		113		19,335
Nonperforming (Nonaccrual)
90+ days past due	160		246		74		44		13		7		544
Total	$	11,002	$	5,410	$	1,907	$	1,172	$	268	$	120	$	19,879

The following is a summary of credit cards by number of days delinquent:

(dollars in millions)	March 31, 2023		December 31, 2022
Current	$	106	$	93
30-59 days past due	4		3
60-89 days past due	3		3
90+ days past due	9		8
Total	$	122	$	107

There were no credit cards that were converted to term loans at March 31, 2023 or December 31, 2022.

MODIFIED FINANCE RECEIVABLES TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

Information regarding modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:

(dollars in millions)	Three Months Ended March 31, 2023
Interest rate reduction and term extension	$	126
Interest rate reduction and principal forgiveness	96
Payment delays	—
Total modifications to borrowers experiencing financial difficulties	$	222
Modifications as a percent of net finance receivables	1.13		%

Information regarding the financial effect of modifications to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:

(dollars in millions)	Three Months Ended March 31, 2023
Weighted-average interest rate reduction	21.32		%
Weighted-average term extension (months)	19
Principal/interest forgiveness	$	11

Information regarding the performance of modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:

(dollars in millions)	March 31, 2023
Current	$	159
30-59 days past due	27
60-89 days past due	14
90+ days past due	22
Total	$	222

There were no modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, and for which there was a default during the period to cause the modified finance receivable to be considered nonperforming (90 days or more past due).

See Notes 2 and 4 for additional information on the adoption of ASU 2022-02.

TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES PRIOR TO ADOPTION OF ASU 2022-02

ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors. Due to the adoption of this ASU, the following disclosures related to troubled debt restructuring finance receivables are no longer applicable for reporting periods beginning in 2023.

Information regarding TDR finance receivables were as follows:

(dollars in millions)	December 31, 2022
TDR gross finance receivables	$	898
TDR net finance receivables *	904
Allowance for TDR finance receivable losses	369

*    TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs.

There were no credit cards classified as TDR finance receivables at December 31, 2022.

Information regarding the new volume of the TDR finance receivables were as follows:

(dollars in millions)	Three Months Ended March 31, 2022
Pre-modification TDR net finance receivables	$	134
Post-modification TDR net finance receivables:
Rate reduction	87
Other *	47
Total post-modification TDR net finance receivables	$	134
Number of TDR accounts	16,165

*    “Other” modifications primarily consist of loans with both rate reductions and the potential of principal forgiveness contingent on future payment performance by the borrower under the modified terms.

Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table:

(dollars in millions)	Three Months Ended March 31, 2022
TDR net finance receivables *	$	30
Number of TDR accounts	3,796

* Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

UNFUNDED LENDING COMMITMENTS

Our unfunded lending commitments consist of the unused credit card lines, which are unconditionally cancellable. We do not anticipate that all of our customers will access their entire available line at any given point in time. The unused credit card lines totaled $99 million at March 31, 2023 and $81 million at December 31, 2022.

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Allowance for Finance Receivable Losses

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Allowance for Finance Receivable Losses

4. Allowance for Finance Receivable Losses

We establish an allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by the level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the finance receivables through the delinquency buckets. We estimate and record an allowance for finance receivable losses to cover the expected lifetime credit losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions.

Our methodology to estimate expected credit losses uses recent macroeconomic forecasts, which include forecasts for unemployment. We leverage projections from various industry leading providers. We also consider inflationary pressures, consumer confidence levels, and interest rate increases that may continue to impact the economic outlook. At March 31, 2023, our economic forecast used a reasonable and supportable period of 12 months. The decrease in our allowance for finance receivable losses for the three months ended March 31, 2023 was primarily due to the adoption of ASU 2022-02. We may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of which could lead to further changes in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses.

Changes in the allowance for finance receivable losses were as follows:

(dollars in millions)	Personal Loans		Credit Cards		Total
Three Months Ended March 31, 2023
Balance at beginning of period	$	2,290	$	21	$	2,311
Impact of adoption of ASU 2022-02 *	(16)		—		(16)
Provision for finance receivable losses	377		8		385
Charge-offs	(445)		(6)		(451)
Recoveries	69		—		69
Balance at end of period	$	2,275	$	23	$	2,298
Three Months Ended March 31, 2022
Balance at beginning of period	$	2,090	$	5	$	2,095
Provision for finance receivable losses	233		5		238
Charge-offs	(329)		—		(329)
Recoveries	67		—		67
Balance at end of period	$	2,061	$	10	$	2,071

*    As a result of the adoption of ASU 2022-02, we recorded a one-time adjustment to the allowance for finance receivable losses. See Notes 2 and 3 for additional information on the adoption of ASU 2022-02.

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Investment Securities

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investment Securities

5. Investment Securities

AVAILABLE-FOR-SALE SECURITIES

Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows:

(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
March 31, 2023*
Fixed maturity available-for-sale securities:
U.S. government and government sponsored entities	$	17	$	—	$	(1)	$	16
Obligations of states, municipalities, and political subdivisions	73		—		(6)		67
Commercial paper	55		—		—		55
Non-U.S. government and government sponsored entities	151		—		(7)		144
Corporate debt	1,219		3		(99)		1,123
Mortgage-backed, asset-backed, and collateralized:
RMBS	213		—		(23)		190
CMBS	38		—		(3)		35
CDO/ABS	93		—		(7)		86
Total	$	1,859	$	3	$	(146)	$	1,716
December 31, 2022*
Fixed maturity available-for-sale securities:
U.S. government and government sponsored entities	$	17	$	—	$	(1)	$	16
Obligations of states, municipalities, and political subdivisions	74		—		(8)		66
Commercial paper	55		—		—		55
Non-U.S. government and government sponsored entities	150		—		(8)		142
Corporate debt	1,251		1		(115)		1,137
Mortgage-backed, asset-backed, and collateralized:
RMBS	217		—		(25)		192
CMBS	38		—		(3)		35
CDO/ABS	95		—		(9)		86
Total	$	1,897	$	1	$	(169)	$	1,729

*    The allowance for credit losses related to our investment securities as of March 31, 2023 and December 31, 2022 were immaterial.

Interest receivables reported in Other assets in our condensed consolidated balance sheets totaled $14 million as of March 31, 2023 and December 31, 2022. There were no material amounts reversed from investment revenue for available-for-sale securities for the three months ended March 31, 2023 and 2022.

Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows:

	Less Than 12 Months				12 Months or Longer				Total
(dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2023
U.S. government and government sponsored entities	$	10	$	—	$	6	$	(1)	$	16	$	(1)
Obligations of states, municipalities, and political subdivisions	12		—		50		(6)		62		(6)
Commercial paper	51		—		—		—		51		—
Non-U.S. government and government sponsored entities	30		—		93		(7)		123		(7)
Corporate debt	311		(8)		712		(91)		1,023		(99)
Mortgage-backed, asset-backed, and collateralized:
RMBS	48		(2)		125		(21)		173		(23)
CMBS	9		—		26		(3)		35		(3)
CDO/ABS	18		—		58		(7)		76		(7)
Total	$	489	$	(10)	$	1,070	$	(136)	$	1,559	$	(146)
December 31, 2022
U.S. government and government sponsored entities	$	10	$	—	$	6	$	(1)	$	16	$	(1)
Obligations of states, municipalities, and political subdivisions	48		(5)		15		(3)		63		(8)
Commercial paper	51		—		—		—		51		—
Non-U.S. government and government sponsored entities	104		(3)		32		(5)		136		(8)
Corporate debt	779		(54)		299		(61)		1,078		(115)
Mortgage-backed, asset-backed, and collateralized:
RMBS	106		(9)		68		(16)		174		(25)
CMBS	21		(2)		13		(1)		34		(3)
CDO/ABS	45		(3)		35		(6)		80		(9)
Total	$	1,164	$	(76)	$	468	$	(93)	$	1,632	$	(169)

On a lot basis, we had 2,176 and 2,280 investment securities in an unrealized loss position at March 31, 2023 and December 31, 2022, respectively. We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, as of March 31, 2023, there were no credit impairments on investment securities that we intend to sell. We do not have plans to sell any of the remaining investment securities with unrealized losses as of March 31, 2023, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost.

We continue to monitor unrealized loss positions for potential credit impairments. During the three months ended March 31, 2023 and 2022, there were no material credit impairments related to our investment securities. Therefore, there were no material additions or reductions in the allowance for credit losses (impairments recognized or reversed in earnings) on credit impaired available-for-sale securities for the three months ended March 31, 2023 and 2022.

The proceeds of available-for-sale securities sold or redeemed during the three months ended March 31, 2023 and 2022 totaled $26 million and $163 million, respectively. The net realized gains and losses were immaterial during the three months ended March 31, 2023 and 2022.

Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2023 were as follows:

(dollars in millions)	Fair Value		Amortized Cost
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	$	192	$	194
Due after 1 year through 5 years	544		571
Due after 5 years through 10 years	532		592
Due after 10 years	137		158
Mortgage-backed, asset-backed, and collateralized securities	311		344
Total	$	1,716	$	1,859

Actual maturities may differ from contractual maturities since issuers and borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies.

The fair value of securities on deposit with third parties totaled $535 million and $532 million at March 31, 2023 and December 31, 2022, respectively.

OTHER SECURITIES

The fair value of other securities by type was as follows:

(dollars in millions)	March 31, 2023		December 31, 2022
Fixed maturity other securities:
Bonds	$	21	$	23
Preferred stock *	16		15
Common stock *	33		33
Total	$	70	$	71

*    We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments.

Net unrealized losses on other securities held were immaterial for the three months ended March 31, 2023 and 2022. Net realized gains and losses on other securities sold or redeemed were immaterial for the three months ended March 31, 2023 and 2022.

Other securities primarily consist of equity securities and those securities for which the fair value option was elected. We report net unrealized and realized gains and losses on other securities held, sold, or redeemed in investment revenue.

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Long-term Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Long-term Debt

6. Long-term Debt

Principal maturities of long-term debt by type of debt at March 31, 2023 were as follows:

	Senior Debt
(dollars in millions)	Securitizations		Private Secured Term Funding		Revolving Conduit Facilities		Unsecured Notes (a)		Junior Subordinated Debt (a)			Total
Interest rates (b)	0.87%-7.07%		5.77%		5.55%		3.50%-8.25%		6.58		%
Remainder of 2023	$	—	$	—	$	—	$	226	$	—		$	226
2024	—		—		—		1,270		—			1,270
2025	—		—		—		1,249		—			1,249
2026	—		—		—		1,600		—			1,600
2027	—		—		—		750		—			750
2028-2067	—		—		—		2,932		350			3,282
Secured (c)	9,654		350		100		—		—			10,104
Total principal maturities	$	9,654	$	350	$	100	$	8,027	$	350		$	18,481
Total carrying amount	$	9,611	$	349	$	100	$	7,974	$	172		$	18,206
Debt issuance costs (d)	(40)		(1)		—		(57)		—			(98)

(a) Pursuant to the Base Indenture, the Supplemental Indentures, and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions.

(b) The interest rates shown are the range of contractual rates in effect at March 31, 2023.

(c) Securitizations, private secured term funding, and borrowings under the revolving conduit facilities are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. See Note 7 for further information on our long-term debt associated with securitizations, private secured term funding, and revolving conduit facilities.

(d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities and unsecured corporate revolver, which totaled $31 million at March 31, 2023 and are reported in Other assets in our condensed consolidated balance sheets.

UNSECURED CORPORATE REVOLVER

At March 31, 2023, the total maximum borrowing capacity of our unsecured corporate revolver was $1.25 billion. The corporate revolver has a five-year term beginning October 25, 2021, during which draws and repayments may occur. Any outstanding principal balance is due and payable on October 25, 2026. At March 31, 2023, no amounts were drawn under this facility.

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Variable Interest Entities

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

7. Variable Interest Entities

CONSOLIDATED VIES

We have transferred finance receivables to VIEs for asset-backed financing transactions and include the assets and liabilities in our condensed consolidated financial statements because we are the primary beneficiary of each VIE. We account for these asset-backed debt obligations as securitized borrowings.

See Note 2 and Note 9 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for more detail regarding VIEs.

We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities when its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts, private secured term funding, and revolving conduit facilities were as follows:

(dollars in millions)	March 31, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	2	$	2
Net finance receivables	11,108		10,432
Allowance for finance receivable losses	1,206		1,126
Restricted cash and restricted cash equivalents	513		442
Other assets	29		28
Liabilities
Long-term debt	$	10,060	$	9,361
Other liabilities	20		20

Other than the retained subordinate and residual interests in our consolidated VIEs, we are under no further obligation than is otherwise noted herein, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $101 million and $65 million during the three months ended March 31, 2023 and 2022, respectively.

SECURITIZED BORROWINGS

Each of our outstanding securitizations contain a revolving period ranging from two to seven years during which no principal payments are required to be made on the related asset-backed notes. The indentures governing our securitized borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes.

PRIVATE SECURED TERM FUNDING

At March 31, 2023, an aggregate amount of $350 million was outstanding under the private secured term funding collateralized by our personal loans. No principal payments are required to be made until after April 25, 2025, followed by a subsequent one-year amortization period, at the expiration of which the outstanding principal amount is due and payable.

REVOLVING CONDUIT FACILITIES

We had access to 15 revolving conduit facilities with a total maximum borrowing capacity of $6.2 billion as of March 31, 2023. Our conduit facilities contain revolving periods during which time no principal payments are required, but may be made without penalty, followed by a subsequent amortization period. Principal balances of outstanding loans, if any, are due and payable in full over periods ranging up to ten years as of March 31, 2023. Amounts drawn on these facilities are collateralized by our personal loans.

At March 31, 2023, an aggregate amount of $100 million was drawn under these facilities and the remaining borrowing capacity was $6.1 billion.

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Insurance

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Insurance

8. Insurance

Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables) on our short-duration insurance contracts:

	At or for the Three Months Ended March 31,
(dollars in millions)	2023		2022 (a)
Balance at beginning of period	$	93	$	102
Less reinsurance recoverables	(3)		(3)
Net balance at beginning of period	90		99
Additions for losses and loss adjustment expenses incurred to:
Current year	42		46
Prior years (b)	(1)		(6)
Total	41		40
Reductions for losses and loss adjustment expenses paid related to:
Current year	(12)		(13)
Prior years	(27)		(27)
Total	(39)		(40)
Net balance at end of period	92		99
Plus reinsurance recoverables	3		3
Balance at end of period	$	95	$	102

(a)    As a result of the modified retrospective adoption of ASU 2018-12, we have recorded a $16 million reduction to the 2022 beginning balance, and the previously reported balances were recast to exclude reserves for unpaid claims on our long-duration contracts. These reserves have been included in our estimate of the liability for future policy benefits as of the transition date of January 1, 2021. See Note 2 for additional information on the adoption of ASU 2018-12.

(b)    At March 31, 2023, $1 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit disability claims during the period. At March 31, 2022, $6 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit life claims during the period.

LIABILITY FOR FUTURE POLICY BENEFITS

The present value of expected net premiums on long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and  Whole Life		Accidental Death and Disability Protection		Term and  Whole Life		Accidental Death and Disability Protection
Balance at beginning of period	$	252	$	48	$	313	$	69
Effect of cumulative changes in discount rate assumptions (beginning of period)	(8)		—		(53)		(10)
Beginning balance at original discount rate	244		48		260		59
Effect of actual variances from expected experience	(2)		—		1		—
Adjusted balance at beginning of period	242		48		261		59
Interest accretion	6		—		27		(1)
Net premiums collected	(7)		(2)		(10)		(2)
Ending balance at original discount rate	241		46		278		56
Effect of changes in discount rate assumptions	5		—		35		6
Balance at ending of period	$	246	$	46	$	313	$	62

The present value of expected future policy benefits on long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Balance at beginning of period	$	483	$	126	$	601	$	165
Effect of cumulative changes in discount rate assumptions (beginning of period)	(17)		(1)		(109)		(27)
Beginning balance at original discount rate	466		125		492		138
Effect of actual variances from expected experience	1		(1)		2		(1)
Adjusted balance at beginning of period	467		124		494		137
Net issuances	1		—		1		—
Interest accretion	9		3		27		1
Benefit payments	(16)		(4)		(17)		(4)
Ending balance at original discount rate	461		123		505		134
Effect of changes in discount rate assumptions	12		—		66		14
Balance at ending of period	$	473	$	123	$	571	$	148

The net liability for future policy benefits on long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Net liability for future policy benefits	$	227	$	77	$	258	$	86
Deferred profit liability	15		54		16		61
Total net liability for future policy benefits	$	242	$	131	$	274	$	147

The weighted-average duration of the liability for future policy benefits was 8 years at March 31, 2023 and 2022.

The following table reconciles the net liability for future policy benefits to Insurance claims and policyholder liabilities in the condensed consolidated balance sheets:

	At or for the Three Months Ended March 31,
(dollars in millions)	2023		2022
Term and whole life	$	242	$	274
Accidental death and disability protection	131		147
Other*	242		237
Total	$	615	$	658

*    Other primarily includes reserves for short-duration contracts that are payable to third-party beneficiaries.

The undiscounted and discounted expected gross premiums and expected future benefits and expenses for our long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Expected future gross premiums:
Undiscounted	$	466	$	159	$	586	$	181
Discounted	326		114		442		142
Expected future benefit payments:
Undiscounted	670		181		741		198
Discounted	473		123		571		148

The revenue and interest related to our long-duration insurance contracts recognized in the condensed consolidated statements of operations were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Gross premiums or assessments	$	11	$	5	$	17	$	5
Interest accretion	3		3		—		1
Total	$	14	$	8	$	17	$	6

The expected and actual experience for mortality, morbidity, and lapses of the liability for future policy benefits were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Mortality/Morbidity:
Expected	0.39	%	0.01	%	0.40	%	0.01	%
Actual	0.31	%	0.01	%	0.43	%	0.01	%
Lapses:
Expected	3.18	%	2.24	%	2.70	%	2.27	%
Actual	1.67	%	0.34	%	0.96	%	0.33	%

The weighted-average interest rates for the liability of future policy benefits for our long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Interest accretion rate	5.26	%	4.86	%	5.26	%	4.85	%
Current discount rate	5.07	%	5.06	%	3.68	%	3.61	%

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Capital Stock and Earnings Per Share (OMH Only)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Capital Stock and Earnings Per Share (OMH Only)

9. Capital Stock and Earnings Per Share (OMH Only)

CAPITAL STOCK

OMH has two classes of authorized capital stock: preferred stock and common stock. OMFC has two classes of authorized capital stock: special stock and common stock. OMH and OMFC may issue preferred stock and special stock, respectively, in one or more series. The OMH Board of Directors and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance.

Changes in OMH shares of common stock issued and outstanding were as follows:

	Three Months Ended March 31,
	2023	2022
Balance at beginning of period	121,042,125	127,809,640
Common stock issued	207,403	252,277
Common stock repurchased	(683,384)	(2,282,552)
Treasury stock issued	21,070	14,471
Balance at end of period	120,587,214	125,793,836

EARNINGS PER SHARE (OMH ONLY)

The computation of earnings per share was as follows:

	Three Months Ended March 31,
(dollars in millions, except per share data)	2023		2022
Numerator (basic and diluted):
Net income	$	179	$	303
Denominator:
Weighted average number of shares outstanding (basic)	120,765,661		127,075,714
Effect of dilutive securities *	204,230		387,313
Weighted average number of shares outstanding (diluted)	120,969,891		127,463,027
Earnings per share:
Basic	$	1.48	$	2.38
Diluted	$	1.48	$	2.38

* We have excluded weighted-average unvested restricted stock units totaling 1,543,976 and 1,172,754 for the three months ended March 31, 2023 and 2022, respectively, from the fully-diluted earnings per share calculations as these shares would be anti-dilutive, which could impact the earnings per share calculation in the future.

Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method. The potentially dilutive shares represent outstanding unvested restricted stock units.

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

10. Accumulated Other Comprehensive Income (Loss)

Changes, net of tax, in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities (a)		Retirement Plan Liabilities Adjustments		Foreign Currency Translation Adjustments		Changes in discount rate for insurance claims and policyholder liabilities		Other (b)		Total Accumulated Other Comprehensive Income (Loss)
Three Months Ended March 31, 2023
Balance at beginning of period	$	(131)	$	(8)	$	(5)	$	(8)	$	25	$	(127)
Other comprehensive income (loss) before reclassifications	19		—		—		3		(3)		19
Balance at end of period	$	(112)	$	(8)	$	(5)	$	(5)	$	22	$	(108)
Three Months Ended March 31, 2022
Balance at beginning of period	$	49	$	1	$	3	$	(56)	$	8	$	5
Other comprehensive income (loss) before reclassifications	(81)		—		1		25		10		(45)
Reclassification adjustments from accumulated other comprehensive income (loss)	(2)		—		—		—		—		(2)
Balance at end of period	$	(34)	$	1	$	4	$	(31)	$	18	$	(42)

(a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the three months ended March 31, 2023 and 2022.

(b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges.

Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were immaterial for the three months ended March 31, 2023 and 2022.

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Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

We had a net deferred tax asset of $438 million and $456 million at March 31, 2023 and December 31, 2022, respectively.

We follow the guidance of ASC 740, Income Taxes, for interim reporting of income taxes under which we calculate an estimated annual effective tax rate (“AETR”) and apply the AETR to our year-to-date income (loss) before income taxes. In addition, we recognize any discrete items as they occur.

The effective tax rate for the three months ended March 31, 2023 was 24.0%, compared to 24.1% for the same period in 2022. The effective tax rate for the three months ended March 31, 2023 and 2022 differed from the federal statutory rate of 21% primarily due to the effect of state income taxes.

We are under examination by various states for the years 2017 to 2021. Management believes it has adequately provided for taxes for such years.

Our gross unrecognized tax benefits, including related interest and penalties, totaled $6 million at March 31, 2023 and December 31, 2022. We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our condensed consolidated financial statements.

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Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Contingencies

12. Contingencies

LEGAL CONTINGENCIES

In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions, and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Additionally, we are, from time to time, in the normal course of business, subject to inquiries and investigations by federal, state and local governmental authorities regarding our products and our operations. These inquiries and investigations may result in fines, restitution or other penalties, including injunctive relief that may result in restrictions on our business. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims.

We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the condensed consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss.

For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or range of additional loss can be reasonably estimated for any given action.

For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our condensed consolidated financial statements as a whole.

In March 2022, the staff of the United States Consumer Financial Protection Bureau (“CFPB”) notified us that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, it is considering recommending that the CFPB take legal action against the Company in connection with alleged violations of the Consumer Financial Protection Act, 12 U.S.C. §§ 5531, 5536. The staff’s investigation is focused on certain refunding practices for optional insurance and membership plan products that were subsequently canceled by the consumer after purchase. We are cooperating with the CFPB in this matter and expect ongoing interactions. Although the Company believes it has not violated the Consumer Financial Protection Act, we are unable to estimate how long this investigation will continue, whether and in what manner the CFPB may commence legal action, or what the ultimate outcome of this matter will be. Should the CFPB opt to commence legal proceedings, it may seek civil monetary penalties, restitution, injunctive relief, or other damages. The Company does not currently believe that the outcome of this matter will have a material adverse effect on our business, financial condition, or results of operations.

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Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

13. Segment Information

At March 31, 2023, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans.

The accounting policies of the C&I segment are the same as those disclosed in Note 2 and Note 17 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report.

The following tables present information about C&I and Other, as well as reconciliations to the condensed consolidated financial statement amounts.

(dollars in millions)	Consumer and Insurance		Other		Segment to GAAP Adjustment		Consolidated Total
Three Months Ended March 31, 2023
Interest income	$	1,092	$	1	$	1	$	1,094
Interest expense	238		—		1		239
Provision for finance receivable losses	385		—		—		385
Net interest income after provision for finance receivable losses	469		1		—		470
Other revenues	176		1		—		177
Other expenses	409		3		—		412
Income (loss) before income tax expense (benefit)	$	236	$	(1)	$	—	$	235
Assets	$	21,199	$	30	$	1,214	$	22,443
Three Months Ended March 31, 2022
Interest income	$	1,087	$	1	$	1	$	1,089
Interest expense	217		1		1		219
Provision for finance receivable losses	237		—		1		238
Net interest income after provision for finance receivable losses	633		—		(1)		632
Other revenues	158		4		—		162
Other expenses	392		4		(1)		395
Income before income tax expense	$	399	$	—	$	—	$	399
Assets	$	19,756	$	40	$	2,020	$	21,816

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Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

14. Fair Value Measurements

The accounting policies of our fair value measurements are the same as those disclosed in Note 2 and Note 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report.

The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
March 31, 2023
Assets
Cash and cash equivalents	$	538	$	6	$	—	$	544	$	544
Investment securities	52		1,729		5		1,786		1,786
Net finance receivables, less allowance for finance receivable losses	—		—		19,150		19,150		17,511
Restricted cash and restricted cash equivalents	531		—		—		531		531
Other assets *	—		—		41		41		31
Liabilities
Long-term debt	$	—	$	17,057	$	—	$	17,057	$	18,206
December 31, 2022
Assets
Cash and cash equivalents	$	481	$	17	$	—	$	498	$	498
Investment securities	51		1,744		5		1,800		1,800
Net finance receivables, less allowance for finance receivable losses	—		—		19,272		19,272		17,675
Restricted cash and restricted cash equivalents	450		11		—		461		461
Other assets *	—		—		43		43		35
Liabilities
Long-term debt	$	—	$	16,969	$	—	$	16,969	$	18,281

*Other assets at March 31, 2023 and December 31, 2022 primarily consists of finance receivables held for sale.

FAIR VALUE MEASUREMENTS — RECURRING BASIS

The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
March 31, 2023
Assets
Cash equivalents in mutual funds	$	109	$	—	$	—	$	109
Cash equivalents in securities	—		6		—		6
Investment securities:
Available-for-sale securities
U.S. government and government sponsored entities	—		16		—		16
Obligations of states, municipalities, and political subdivisions	—		67		—		67
Commercial paper	—		55		—		55
Non-U.S. government and government sponsored entities	—		144		—		144
Corporate debt	5		1,115		3		1,123
RMBS	—		190		—		190
CMBS	—		35		—		35
CDO/ABS	—		86		—		86
Total available-for-sale securities	5		1,708		3		1,716
Other securities
Bonds:
Corporate debt	—		5		—		5
CDO/ABS	—		16		—		16
Total bonds	—		21		—		21
Preferred stock	16		—		—		16
Common stock	31		—		2		33
Total other securities	47		21		2		70
Total investment securities	52		1,729		5		1,786
Restricted cash equivalents in mutual funds	517		—		—		517
Total	$	678	$	1,735	$	5	$	2,418

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2022
Assets
Cash equivalents in mutual funds	$	77	$	—	$	—	$	77
Cash equivalents in securities	—		17		—		17
Investment securities:
Available-for-sale securities
U.S. government and government sponsored entities	—		16		—		16
Obligations of states, municipalities, and political subdivisions	—		66		—		66
Commercial paper	—		55		—		55
Non-U.S. government and government sponsored entities	—		142		—		142
Corporate debt	5		1,129		3		1,137
RMBS	—		192		—		192
CMBS	—		35		—		35
CDO/ABS	—		86		—		86
Total available-for-sale securities	5		1,721		3		1,729
Other securities
Bonds:
Corporate debt	—		6		—		6
RMBS	—		1		—		1
CDO/ABS	—		16		—		16
Total bonds	—		23		—		23
Preferred stock	15		—		—		15
Common stock	31		—		2		33
Total other securities	46		23		2		71
Total investment securities	51		1,744		5		1,800
Restricted cash equivalents in mutual funds	445		—		—		445
Restricted cash equivalents in securities	$	—	$	11	$	—	11
Total	$	573	$	1,772	$	5	$	2,350

Due to the insignificant activity within the Level 3 assets during the three months ended March 31, 2023 and 2022, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.

FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS

We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial during the three months ended March 31, 2023 and 2022.

FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS

See Note 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for information regarding our methods and assumptions used to estimate fair value.

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Business and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP.

CONSOLIDATION

The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.We eliminated all material intercompany accounts and transactions.

USE OF ESTIMATES

We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date.

ACCOUNTING PRONUNCEMENTS RECENTLY ADOPTED

Insurance

In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. The ASU requires the assumptions used to measure the liability for future policy benefits to be updated at least annually. The guidance prescribes the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income.

The amendments in this ASU became effective for the Company beginning January 1, 2023 and we adopted using the modified retrospective transition method. This ASU required a transition date of January 1, 2021 and resulted in recasting prior periods.

As a result of the adoption of ASU 2018-12, our significant accounting policy related to long-duration insurance contracts for policy and claim reserves has changed to reflect the requirements of the new standard. See below for the updated significant accounting policy as of the transition date of January 1, 2021.

Policy and Claim Reserves

Policy reserves are established for our long-duration contracts. The liability for future policy benefits is the present value of estimated future policy benefits to be paid to or on behalf of policyholders less the present value of estimated future net premiums to be collected from policyholders. To estimate the liability, we make assumptions for mortality, morbidity, lapses, and the discount rate.

At least annually, we update our estimate of the liability with actual experience and review our cash flow assumptions. The updated liability is discounted at the original discount rate at contract inception, and the change in the balance is recognized as a remeasurement gain or loss and included in Insurance policy benefits and claims in our consolidated statements of operations.

The discount rate assumption is the equivalent of an upper-medium grade fixed-income instrument yield. To determine the original discount rate at contract inception, we use a weighted average rate based on a forward yield curve over the contract issue year. At each reporting period, the liability is remeasured using the current discount rate and the change in the liability due to the discount rate is recognized in Accumulated other comprehensive income (loss) in our consolidated balance sheets.

Financial Instruments

In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables.

We adopted the amendments in this ASU as of January 1, 2023 using the modified retrospective transition method.

Upon adoption, we recorded a decrease to the allowance for finance receivable losses of $16 million, a decrease to deferred tax assets of $4 million and a one-time corresponding cumulative increase to retained earnings, net of tax, of $12 million in our consolidated balance sheets as of January 1, 2023.

As a result of the adoption of ASU 2022-02, several of our significant accounting policies have changed to reflect the requirements of the new standard. See below for the updated significant accounting policies as of January 1, 2023.

Troubled Debt Restructured Finance Receivables

ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors. As a result of the adoption of this ASU, the accounting for TDRs is no longer applicable for periods beginning on or after January 1, 2023.

Modified Finance Receivables to Borrowers Experiencing Financial Difficulty

We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty, participating in a counseling or settlement arrangement, or are in bankruptcy. When we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties, we classify that receivable as a modified finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future.

When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce the interest rate, extend the term, defer or forgive past due interest, or forgive principal. As part of the modification, we may require qualifying payments before the accounts are generally brought current for delinquency reporting. In addition, for principal forgiveness, we may require future payment performance by the borrower under the modified terms before the balances are contractually forgiven. We fully reserve for any potential principal forgiveness in our allowance for finance receivable losses.

Account modifications that are deemed to be a modified finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses.

Allowance for Finance Receivable Losses

We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment.

We estimate the allowance for finance receivable losses primarily on historical loss experience using a cumulative loss model applied to our personal loan portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our personal loans are primarily segmented in the loss model by contractual delinquency status.

Other attributes in the model include loan modification status, collateral mix and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term. Our methodology relies on historical loss experience to forecast the corresponding future outcomes. These patterns are then applied to the current portfolio to obtain an estimate of future losses. We also consider key economic trends including unemployment rates. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. No new volume is assumed. Personal loan renewals are a significant piece of our new volume and are considered a terminal event of the previous loan.

For our personal loans, we have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charge amounts previously accrued after four contractual payments become past due. For credit cards, we measure an allowance on uncollected finance charges, but do not measure an allowance on the unfunded portion of the credit card lines as the accounts are unconditionally cancellable.

Management exercises its judgment when determining the amount of allowance for finance receivable losses. Our judgment is based on quantitative analyses, qualitative factors (such as recent portfolio, industry, and other economic trends), and experience in the consumer finance industry. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning.

We generally charge off to the allowance for finance receivable losses on personal loans and credit cards that are beyond seven payments (approximately 180 days) past due. Exceptions include accounts in bankruptcy, which are generally charged off at the earlier of notice of discharge or when the customer becomes seven payments past due, and accounts of deceased borrowers, which are generally charged off at the time of notice. Generally, we start repossession of any titled personal property when the customer becomes two payments (approximately 30 days) past due and may charge off prior to the account becoming seven payments (approximately 180 days) past due.

We may renew delinquent secured or unsecured personal loan accounts if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the renewed loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit.

See Notes 3 and 4 for additional information on the adoption of ASU 2022-02.

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Recent Accounting Pronouncements (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Accounting Standards Update and Change in Accounting Principle

The effects of the adoption of ASU 2018-12 to our condensed consolidated balance sheets were as follows:

(dollars in millions)	As Reported		ASU 2018-12 Adjustment		As Recast
December 31, 2022
Other assets (OMH only)	$	1,150	$	4	$	1,154
Other assets (OMFC only)	1,148		4		1,152
Insurance claims and policyholder liabilities	602		18		620
Accumulated other comprehensive loss	(119)		(8)		(127)
Retained earnings (OMH only)	2,125		(6)		2,119
Retained earnings (OMFC only)	1,199		(6)		1,193
March 31, 2022
Other assets (OMH only)	$	981	$	8	$	989
Other assets (OMFC only)	980		8		988
Insurance claims and policyholder liabilities	621		37		658
Accumulated other comprehensive loss	(11)		(31)		(42)
Retained earnings (OMH only)	1,905		2		1,907
Retained earnings (OMFC only)	1,156		2		1,158
December 31, 2021
Other assets (OMH only)	$	1,003	$	16	$	1,019
Other assets (OMFC only)	1,001		16		1,017
Insurance claims and policyholder liabilities	621		72		693
Accumulated other comprehensive income	61		(56)		5
January 1, 2021
Other assets (OMH and OMFC)	$	1,054	$	21	$	1,075
Insurance claims and policyholder liabilities	621		97		718
Accumulated other comprehensive income	94		(76)		18

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of operations were as follows:

(dollars in millions, except per share amounts)	As Reported		ASU 2018-12 Adjustment		As Recast
Three Months Ended March 31, 2022
Insurance policy benefits and claims	$	45	$	(3)	$	42
Income before income taxes	396		3		399
Income taxes	95		1		96
Net income	301		2		303
Basic EPS (OMH only)	2.37		0.01		2.38
Diluted EPS (OMH only)	2.36		0.02		2.38

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of comprehensive income were as follows:

(dollars in millions)	As Reported		ASU 2018-12 Adjustment		As Recast
Three Months Ended March 31, 2022
Comprehensive income	$	229	$	27	$	256

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of cash flows were as follows:

(dollars in millions)	As Reported		ASU 2018-12 Adjustment		As Recast
Three Months Ended March 31, 2022
Net income	$	301	$	2	$	303
Deferred income tax charge	21		1		22
Cash flows due to changes in other assets and other liabilities (OMH only)	(62)		(3)		(65)
Cash flows due to changes in other assets and other liabilities (OMFC only)	(61)		(3)		(64)

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Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Schedule of components of net finance receivables by type

Components of our net finance receivables were as follows:

(dollars in millions)	Personal Loans		Credit Cards		Total
March 31, 2023
Gross finance receivables *	$	19,444	$	121	$	19,565
Unearned fees	(215)		—		(215)
Accrued finance charges and fees	276		—		276
Deferred origination costs	182		1		183
Total	$	19,687	$	122	$	19,809
December 31, 2022
Gross finance receivables *	$	19,615	$	107	$	19,722
Unearned fees	(220)		—		(220)
Accrued finance charges and fees	299		—		299
Deferred origination costs	185		—		185
Total	$	19,879	$	107	$	19,986

* Personal loan gross finance receivables equal the unpaid principal balance. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the principal balance and billed interest and fees.

Summary of net finance receivables by type and by days delinquent

The following tables below are a summary of our personal loans by the year of origination and number of days delinquent:

(dollars in millions)	2023		2022		2021		2020		2019		Prior		Total
March 31, 2023
Performing
Current	$	2,641	$	9,224	$	4,195	$	1,464	$	861	$	260	$	18,645
30-59 days past due	3		137		98		31		19		9		297
60-89 days past due	—		98		72		22		13		6		211
Total performing	2,644		9,459		4,365		1,517		893		275		19,153
Nonperforming (Nonaccrual)
90+ days past due	—		217		206		61		35		15		534
Total	$	2,644	$	9,676	$	4,571	$	1,578	$	928	$	290	$	19,687
Gross charge-offs	$	—	$	139	$	199	$	59	$	34	$	14	$	445

(dollars in millions)	2022		2021		2020		2019		2018		Prior		Total
December 31, 2022
Performing
Current	$	10,614	$	4,927	$	1,758	$	1,081	$	240	$	105	$	18,725
30-59 days past due	136		136		43		28		9		5		357
60-89 days past due	92		101		32		19		6		3		253
Total performing	10,842		5,164		1,833		1,128		255		113		19,335
Nonperforming (Nonaccrual)
90+ days past due	160		246		74		44		13		7		544
Total	$	11,002	$	5,410	$	1,907	$	1,172	$	268	$	120	$	19,879

The following is a summary of credit cards by number of days delinquent:

(dollars in millions)	March 31, 2023		December 31, 2022
Current	$	106	$	93
30-59 days past due	4		3
60-89 days past due	3		3
90+ days past due	9		8
Total	$	122	$	107

Schedule of information regarding Modified Finance Receivables and TDR finance receivables

Information regarding modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:

(dollars in millions)	Three Months Ended March 31, 2023
Interest rate reduction and term extension	$	126
Interest rate reduction and principal forgiveness	96
Payment delays	—
Total modifications to borrowers experiencing financial difficulties	$	222
Modifications as a percent of net finance receivables	1.13		%

Information regarding the financial effect of modifications to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:

(dollars in millions)	Three Months Ended March 31, 2023
Weighted-average interest rate reduction	21.32		%
Weighted-average term extension (months)	19
Principal/interest forgiveness	$	11

Information regarding the performance of modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:

(dollars in millions)	March 31, 2023
Current	$	159
30-59 days past due	27
60-89 days past due	14
90+ days past due	22
Total	$	222

Information regarding TDR finance receivables were as follows:

(dollars in millions)	December 31, 2022
TDR gross finance receivables	$	898
TDR net finance receivables *	904
Allowance for TDR finance receivable losses	369

*    TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs.

Schedule of new volume of the TDR finance receivables held for investment and held for sale

Information regarding the new volume of the TDR finance receivables were as follows:

(dollars in millions)	Three Months Ended March 31, 2022
Pre-modification TDR net finance receivables	$	134
Post-modification TDR net finance receivables:
Rate reduction	87
Other *	47
Total post-modification TDR net finance receivables	$	134
Number of TDR accounts	16,165

*    “Other” modifications primarily consist of loans with both rate reductions and the potential of principal forgiveness contingent on future payment performance by the borrower under the modified terms.

Net finance receivables that were modified as TDR finance receivables defaulted within the previous 12 months nonperforming

Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table:

(dollars in millions)	Three Months Ended March 31, 2022
TDR net finance receivables *	$	30
Number of TDR accounts	3,796

* Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.

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Allowance for Finance Receivable Losses (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Schedule of changes in the allowance for finance receivable losses by finance receivable type

Changes in the allowance for finance receivable losses were as follows:

(dollars in millions)	Personal Loans		Credit Cards		Total
Three Months Ended March 31, 2023
Balance at beginning of period	$	2,290	$	21	$	2,311
Impact of adoption of ASU 2022-02 *	(16)		—		(16)
Provision for finance receivable losses	377		8		385
Charge-offs	(445)		(6)		(451)
Recoveries	69		—		69
Balance at end of period	$	2,275	$	23	$	2,298
Three Months Ended March 31, 2022
Balance at beginning of period	$	2,090	$	5	$	2,095
Provision for finance receivable losses	233		5		238
Charge-offs	(329)		—		(329)
Recoveries	67		—		67
Balance at end of period	$	2,061	$	10	$	2,071

*    As a result of the adoption of ASU 2022-02, we recorded a one-time adjustment to the allowance for finance receivable losses. See Notes 2 and 3 for additional information on the adoption of ASU 2022-02.

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type

Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows:

(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
March 31, 2023*
Fixed maturity available-for-sale securities:
U.S. government and government sponsored entities	$	17	$	—	$	(1)	$	16
Obligations of states, municipalities, and political subdivisions	73		—		(6)		67
Commercial paper	55		—		—		55
Non-U.S. government and government sponsored entities	151		—		(7)		144
Corporate debt	1,219		3		(99)		1,123
Mortgage-backed, asset-backed, and collateralized:
RMBS	213		—		(23)		190
CMBS	38		—		(3)		35
CDO/ABS	93		—		(7)		86
Total	$	1,859	$	3	$	(146)	$	1,716
December 31, 2022*
Fixed maturity available-for-sale securities:
U.S. government and government sponsored entities	$	17	$	—	$	(1)	$	16
Obligations of states, municipalities, and political subdivisions	74		—		(8)		66
Commercial paper	55		—		—		55
Non-U.S. government and government sponsored entities	150		—		(8)		142
Corporate debt	1,251		1		(115)		1,137
Mortgage-backed, asset-backed, and collateralized:
RMBS	217		—		(25)		192
CMBS	38		—		(3)		35
CDO/ABS	95		—		(9)		86
Total	$	1,897	$	1	$	(169)	$	1,729

*    The allowance for credit losses related to our investment securities as of March 31, 2023 and December 31, 2022 were immaterial.

Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position

Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows:

	Less Than 12 Months				12 Months or Longer				Total
(dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2023
U.S. government and government sponsored entities	$	10	$	—	$	6	$	(1)	$	16	$	(1)
Obligations of states, municipalities, and political subdivisions	12		—		50		(6)		62		(6)
Commercial paper	51		—		—		—		51		—
Non-U.S. government and government sponsored entities	30		—		93		(7)		123		(7)
Corporate debt	311		(8)		712		(91)		1,023		(99)
Mortgage-backed, asset-backed, and collateralized:
RMBS	48		(2)		125		(21)		173		(23)
CMBS	9		—		26		(3)		35		(3)
CDO/ABS	18		—		58		(7)		76		(7)
Total	$	489	$	(10)	$	1,070	$	(136)	$	1,559	$	(146)
December 31, 2022
U.S. government and government sponsored entities	$	10	$	—	$	6	$	(1)	$	16	$	(1)
Obligations of states, municipalities, and political subdivisions	48		(5)		15		(3)		63		(8)
Commercial paper	51		—		—		—		51		—
Non-U.S. government and government sponsored entities	104		(3)		32		(5)		136		(8)
Corporate debt	779		(54)		299		(61)		1,078		(115)
Mortgage-backed, asset-backed, and collateralized:
RMBS	106		(9)		68		(16)		174		(25)
CMBS	21		(2)		13		(1)		34		(3)
CDO/ABS	45		(3)		35		(6)		80		(9)
Total	$	1,164	$	(76)	$	468	$	(93)	$	1,632	$	(169)

Schedule of contractual maturities of fixed-maturity available-for-sale securities

Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2023 were as follows:

(dollars in millions)	Fair Value		Amortized Cost
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	$	192	$	194
Due after 1 year through 5 years	544		571
Due after 5 years through 10 years	532		592
Due after 10 years	137		158
Mortgage-backed, asset-backed, and collateralized securities	311		344
Total	$	1,716	$	1,859

Schedule of fair value of other securities by type

The fair value of other securities by type was as follows:

(dollars in millions)	March 31, 2023		December 31, 2022
Fixed maturity other securities:
Bonds	$	21	$	23
Preferred stock *	16		15
Common stock *	33		33
Total	$	70	$	71

*    We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments.

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Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of principal maturities of long-term debt

Principal maturities of long-term debt by type of debt at March 31, 2023 were as follows:

	Senior Debt
(dollars in millions)	Securitizations		Private Secured Term Funding		Revolving Conduit Facilities		Unsecured Notes (a)		Junior Subordinated Debt (a)			Total
Interest rates (b)	0.87%-7.07%		5.77%		5.55%		3.50%-8.25%		6.58		%
Remainder of 2023	$	—	$	—	$	—	$	226	$	—		$	226
2024	—		—		—		1,270		—			1,270
2025	—		—		—		1,249		—			1,249
2026	—		—		—		1,600		—			1,600
2027	—		—		—		750		—			750
2028-2067	—		—		—		2,932		350			3,282
Secured (c)	9,654		350		100		—		—			10,104
Total principal maturities	$	9,654	$	350	$	100	$	8,027	$	350		$	18,481
Total carrying amount	$	9,611	$	349	$	100	$	7,974	$	172		$	18,206
Debt issuance costs (d)	(40)		(1)		—		(57)		—			(98)

(a) Pursuant to the Base Indenture, the Supplemental Indentures, and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions.

(b) The interest rates shown are the range of contractual rates in effect at March 31, 2023.

(c) Securitizations, private secured term funding, and borrowings under the revolving conduit facilities are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. See Note 7 for further information on our long-term debt associated with securitizations, private secured term funding, and revolving conduit facilities.

(d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities and unsecured corporate revolver, which totaled $31 million at March 31, 2023 and are reported in Other assets in our condensed consolidated balance sheets.

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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Carrying amounts of consolidated VIE assets and liabilities

The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts, private secured term funding, and revolving conduit facilities were as follows:

(dollars in millions)	March 31, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	2	$	2
Net finance receivables	11,108		10,432
Allowance for finance receivable losses	1,206		1,126
Restricted cash and restricted cash equivalents	513		442
Other assets	29		28
Liabilities
Long-term debt	$	10,060	$	9,361
Other liabilities	20		20

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Insurance (Tables)

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Changes in the reserve for unpaid claims and loss adjustment expenses

Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables) on our short-duration insurance contracts:

	At or for the Three Months Ended March 31,
(dollars in millions)	2023		2022 (a)
Balance at beginning of period	$	93	$	102
Less reinsurance recoverables	(3)		(3)
Net balance at beginning of period	90		99
Additions for losses and loss adjustment expenses incurred to:
Current year	42		46
Prior years (b)	(1)		(6)
Total	41		40
Reductions for losses and loss adjustment expenses paid related to:
Current year	(12)		(13)
Prior years	(27)		(27)
Total	(39)		(40)
Net balance at end of period	92		99
Plus reinsurance recoverables	3		3
Balance at end of period	$	95	$	102

(a)    As a result of the modified retrospective adoption of ASU 2018-12, we have recorded a $16 million reduction to the 2022 beginning balance, and the previously reported balances were recast to exclude reserves for unpaid claims on our long-duration contracts. These reserves have been included in our estimate of the liability for future policy benefits as of the transition date of January 1, 2021. See Note 2 for additional information on the adoption of ASU 2018-12.

(b)    At March 31, 2023, $1 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit disability claims during the period. At March 31, 2022, $6 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit life claims during the period.

Liability for Future Policy Benefit, Activity

The present value of expected net premiums on long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and  Whole Life		Accidental Death and Disability Protection		Term and  Whole Life		Accidental Death and Disability Protection
Balance at beginning of period	$	252	$	48	$	313	$	69
Effect of cumulative changes in discount rate assumptions (beginning of period)	(8)		—		(53)		(10)
Beginning balance at original discount rate	244		48		260		59
Effect of actual variances from expected experience	(2)		—		1		—
Adjusted balance at beginning of period	242		48		261		59
Interest accretion	6		—		27		(1)
Net premiums collected	(7)		(2)		(10)		(2)
Ending balance at original discount rate	241		46		278		56
Effect of changes in discount rate assumptions	5		—		35		6
Balance at ending of period	$	246	$	46	$	313	$	62

The present value of expected future policy benefits on long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Balance at beginning of period	$	483	$	126	$	601	$	165
Effect of cumulative changes in discount rate assumptions (beginning of period)	(17)		(1)		(109)		(27)
Beginning balance at original discount rate	466		125		492		138
Effect of actual variances from expected experience	1		(1)		2		(1)
Adjusted balance at beginning of period	467		124		494		137
Net issuances	1		—		1		—
Interest accretion	9		3		27		1
Benefit payments	(16)		(4)		(17)		(4)
Ending balance at original discount rate	461		123		505		134
Effect of changes in discount rate assumptions	12		—		66		14
Balance at ending of period	$	473	$	123	$	571	$	148

The undiscounted and discounted expected gross premiums and expected future benefits and expenses for our long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Expected future gross premiums:
Undiscounted	$	466	$	159	$	586	$	181
Discounted	326		114		442		142
Expected future benefit payments:
Undiscounted	670		181		741		198
Discounted	473		123		571		148

The revenue and interest related to our long-duration insurance contracts recognized in the condensed consolidated statements of operations were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Gross premiums or assessments	$	11	$	5	$	17	$	5
Interest accretion	3		3		—		1
Total	$	14	$	8	$	17	$	6

Policyholder Account Balance And Liability For Unpaid Claims And Claims Adjustment Expense

The net liability for future policy benefits on long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
(dollars in millions)	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Net liability for future policy benefits	$	227	$	77	$	258	$	86
Deferred profit liability	15		54		16		61
Total net liability for future policy benefits	$	242	$	131	$	274	$	147

The following table reconciles the net liability for future policy benefits to Insurance claims and policyholder liabilities in the condensed consolidated balance sheets:

	At or for the Three Months Ended March 31,
(dollars in millions)	2023		2022
Term and whole life	$	242	$	274
Accidental death and disability protection	131		147
Other*	242		237
Total	$	615	$	658

*    Other primarily includes reserves for short-duration contracts that are payable to third-party beneficiaries.

Fair Value Measurement Inputs and Valuation Techniques

The expected and actual experience for mortality, morbidity, and lapses of the liability for future policy benefits were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Mortality/Morbidity:
Expected	0.39	%	0.01	%	0.40	%	0.01	%
Actual	0.31	%	0.01	%	0.43	%	0.01	%
Lapses:
Expected	3.18	%	2.24	%	2.70	%	2.27	%
Actual	1.67	%	0.34	%	0.96	%	0.33	%

Additional Liability, Long-Duration Insurance

The weighted-average interest rates for the liability of future policy benefits for our long-duration insurance contracts were as follows:

	At or for the Three Months Ended March 31,
	2023				2022
	Term and Whole Life		Accidental Death and Disability Protection		Term and Whole Life		Accidental Death and Disability Protection
Interest accretion rate	5.26	%	4.86	%	5.26	%	4.85	%
Current discount rate	5.07	%	5.06	%	3.68	%	3.61	%

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Capital Stock and Earnings Per Share (OMH Only) (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of changes in shares issued and outstanding

Changes in OMH shares of common stock issued and outstanding were as follows:

	Three Months Ended March 31,
	2023	2022
Balance at beginning of period	121,042,125	127,809,640
Common stock issued	207,403	252,277
Common stock repurchased	(683,384)	(2,282,552)
Treasury stock issued	21,070	14,471
Balance at end of period	120,587,214	125,793,836

Computation of earnings per share

The computation of earnings per share was as follows:

	Three Months Ended March 31,
(dollars in millions, except per share data)	2023		2022
Numerator (basic and diluted):
Net income	$	179	$	303
Denominator:
Weighted average number of shares outstanding (basic)	120,765,661		127,075,714
Effect of dilutive securities *	204,230		387,313
Weighted average number of shares outstanding (diluted)	120,969,891		127,463,027
Earnings per share:
Basic	$	1.48	$	2.38
Diluted	$	1.48	$	2.38

* We have excluded weighted-average unvested restricted stock units totaling 1,543,976 and 1,172,754 for the three months ended March 31, 2023 and 2022, respectively, from the fully-diluted earnings per share calculations as these shares would be anti-dilutive, which could impact the earnings per share calculation in the future.

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Changes, net of tax, in accumulated other comprehensive income (loss)

Changes, net of tax, in accumulated other comprehensive income (loss) were as follows:

(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities (a)		Retirement Plan Liabilities Adjustments		Foreign Currency Translation Adjustments		Changes in discount rate for insurance claims and policyholder liabilities		Other (b)		Total Accumulated Other Comprehensive Income (Loss)
Three Months Ended March 31, 2023
Balance at beginning of period	$	(131)	$	(8)	$	(5)	$	(8)	$	25	$	(127)
Other comprehensive income (loss) before reclassifications	19		—		—		3		(3)		19
Balance at end of period	$	(112)	$	(8)	$	(5)	$	(5)	$	22	$	(108)
Three Months Ended March 31, 2022
Balance at beginning of period	$	49	$	1	$	3	$	(56)	$	8	$	5
Other comprehensive income (loss) before reclassifications	(81)		—		1		25		10		(45)
Reclassification adjustments from accumulated other comprehensive income (loss)	(2)		—		—		—		—		(2)
Balance at end of period	$	(34)	$	1	$	4	$	(31)	$	18	$	(42)

(a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the three months ended March 31, 2023 and 2022.

(b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges.

Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were immaterial for the three months ended March 31, 2023 and 2022.

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Information about the Company's segments

The following tables present information about C&I and Other, as well as reconciliations to the condensed consolidated financial statement amounts.

(dollars in millions)	Consumer and Insurance		Other		Segment to GAAP Adjustment		Consolidated Total
Three Months Ended March 31, 2023
Interest income	$	1,092	$	1	$	1	$	1,094
Interest expense	238		—		1		239
Provision for finance receivable losses	385		—		—		385
Net interest income after provision for finance receivable losses	469		1		—		470
Other revenues	176		1		—		177
Other expenses	409		3		—		412
Income (loss) before income tax expense (benefit)	$	236	$	(1)	$	—	$	235
Assets	$	21,199	$	30	$	1,214	$	22,443
Three Months Ended March 31, 2022
Interest income	$	1,087	$	1	$	1	$	1,089
Interest expense	217		1		1		219
Provision for finance receivable losses	237		—		1		238
Net interest income after provision for finance receivable losses	633		—		(1)		632
Other revenues	158		4		—		162
Other expenses	392		4		(1)		395
Income before income tax expense	$	399	$	—	$	—	$	399
Assets	$	19,756	$	40	$	2,020	$	21,816

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value

The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Fair Value Measurements Using						Total Fair Value		Total Carrying Value
(dollars in millions)	Level 1		Level 2		Level 3
March 31, 2023
Assets
Cash and cash equivalents	$	538	$	6	$	—	$	544	$	544
Investment securities	52		1,729		5		1,786		1,786
Net finance receivables, less allowance for finance receivable losses	—		—		19,150		19,150		17,511
Restricted cash and restricted cash equivalents	531		—		—		531		531
Other assets *	—		—		41		41		31
Liabilities
Long-term debt	$	—	$	17,057	$	—	$	17,057	$	18,206
December 31, 2022
Assets
Cash and cash equivalents	$	481	$	17	$	—	$	498	$	498
Investment securities	51		1,744		5		1,800		1,800
Net finance receivables, less allowance for finance receivable losses	—		—		19,272		19,272		17,675
Restricted cash and restricted cash equivalents	450		11		—		461		461
Other assets *	—		—		43		43		35
Liabilities
Long-term debt	$	—	$	16,969	$	—	$	16,969	$	18,281

*Other assets at March 31, 2023 and December 31, 2022 primarily consists of finance receivables held for sale.

Schedule of assets and liabilities measured at fair value on a recurring basis

The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
March 31, 2023
Assets
Cash equivalents in mutual funds	$	109	$	—	$	—	$	109
Cash equivalents in securities	—		6		—		6
Investment securities:
Available-for-sale securities
U.S. government and government sponsored entities	—		16		—		16
Obligations of states, municipalities, and political subdivisions	—		67		—		67
Commercial paper	—		55		—		55
Non-U.S. government and government sponsored entities	—		144		—		144
Corporate debt	5		1,115		3		1,123
RMBS	—		190		—		190
CMBS	—		35		—		35
CDO/ABS	—		86		—		86
Total available-for-sale securities	5		1,708		3		1,716
Other securities
Bonds:
Corporate debt	—		5		—		5
CDO/ABS	—		16		—		16
Total bonds	—		21		—		21
Preferred stock	16		—		—		16
Common stock	31		—		2		33
Total other securities	47		21		2		70
Total investment securities	52		1,729		5		1,786
Restricted cash equivalents in mutual funds	517		—		—		517
Total	$	678	$	1,735	$	5	$	2,418

	Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	Level 1		Level 2		Level 3
December 31, 2022
Assets
Cash equivalents in mutual funds	$	77	$	—	$	—	$	77
Cash equivalents in securities	—		17		—		17
Investment securities:
Available-for-sale securities
U.S. government and government sponsored entities	—		16		—		16
Obligations of states, municipalities, and political subdivisions	—		66		—		66
Commercial paper	—		55		—		55
Non-U.S. government and government sponsored entities	—		142		—		142
Corporate debt	5		1,129		3		1,137
RMBS	—		192		—		192
CMBS	—		35		—		35
CDO/ABS	—		86		—		86
Total available-for-sale securities	5		1,721		3		1,729
Other securities
Bonds:
Corporate debt	—		6		—		6
RMBS	—		1		—		1
CDO/ABS	—		16		—		16
Total bonds	—		23		—		23
Preferred stock	15		—		—		15
Common stock	31		—		2		33
Total other securities	46		23		2		71
Total investment securities	51		1,744		5		1,800
Restricted cash equivalents in mutual funds	445		—		—		445
Restricted cash equivalents in securities	$	—	$	11	$	—	11
Total	$	573	$	1,772	$	5	$	2,350

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Recent Accounting Pronouncements - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) payment	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for finance receivable	$ (2,298)	$ (2,311)	$ (2,071)	$ (2,095)
Retained earnings	$ 2,188	2,119	$ 1,907
Number of payments past due before which a loan is charged off to the allowance for finance receivable losses | payment	7
Number of payments past due before which a loan is charged off to the allowance for finance receivable losses, period	180 days
Number of payments past due before repossession | payment	2
Number of payments past due before repossession, period	30 days
Cumulative Effect, Period Of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for finance receivable		16
Deferred tax asset		4
Retained earnings		$ 12

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Recent Accounting Pronouncements - Effects of Adoption To Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets	$ 1,113	$ 1,154	$ 989	$ 1,019	$ 1,075
Insurance claims and policyholder liabilities	615	620	658	693	718
Accumulated other comprehensive loss	(108)	(127)	(42)	5	18
Retained earnings	2,188	2,119	1,907
OMFC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets	1,113	1,152	988	1,017
Insurance claims and policyholder liabilities	615	620
Accumulated other comprehensive loss	(108)	(127)
Retained earnings	$ 1,234	1,193	1,158
Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets		1,150	981	1,003	1,054
Insurance claims and policyholder liabilities		602	621	621	621
Accumulated other comprehensive loss		(119)	(11)	61	94
Retained earnings		2,125	1,905
Previously Reported | OMFC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets		1,148	980	1,001
Retained earnings		1,199	1,156
Revision of Prior Period, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets		4	8	16	21
Insurance claims and policyholder liabilities		18	37	72	97
Accumulated other comprehensive loss		(8)	(31)	(56)	$ (76)
Retained earnings		(6)	2
Revision of Prior Period, Adjustment | OMFC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets		4	8	$ 16
Retained earnings		$ (6)	$ 2

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Recent Accounting Pronouncements - Effects of Adoption To Condensed Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Insurance policy benefits and claims	$ 47	$ 42
Income before income taxes	235	399
Income taxes	56	96
Net income	$ 179	$ 303
Basic EPS (in dollars per share)	$ 1.48	$ 2.38
Diluted EPS (in dollars per share)	$ 1.48	$ 2.38
OMFC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Insurance policy benefits and claims	$ 47	$ 42
Income before income taxes	235	399
Income taxes	56	96
Net income	$ 179	303
Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Insurance policy benefits and claims		45
Income before income taxes		396
Income taxes		95
Net income		$ 301
Basic EPS (in dollars per share)		$ 2.37
Diluted EPS (in dollars per share)		$ 2.36
Revision of Prior Period, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Insurance policy benefits and claims		$ (3)
Income before income taxes		3
Income taxes		1
Net income		$ 2
Basic EPS (in dollars per share)		$ 0.01
Diluted EPS (in dollars per share)		$ 0.02

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Recent Accounting Pronouncements - Effects of Adoption To Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Comprehensive income	$ 198	$ 256
Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Comprehensive income		229
Revision of Prior Period, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Comprehensive income		$ 27

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Recent Accounting Pronouncements - Effect of Adoption To Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	$ 179	$ 303
Deferred income tax charge	9	22
Cash flows due to changes in other assets and other liabilities	(66)	(65)
OMFC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	179	303
Deferred income tax charge	9	22
Cash flows due to changes in other assets and other liabilities	$ (66)	(64)
Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income		301
Deferred income tax charge		21
Cash flows due to changes in other assets and other liabilities		(62)
Previously Reported | OMFC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash flows due to changes in other assets and other liabilities		(61)
Revision of Prior Period, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income		2
Deferred income tax charge		1
Cash flows due to changes in other assets and other liabilities		(3)
Revision of Prior Period, Adjustment | OMFC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash flows due to changes in other assets and other liabilities		$ (3)

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Finance Receivables - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Whole loan sale flow agreement, quarterly loans sold	$ 135
Proceeds from sale of gross finance receivables	180
Gain on sale of financing receivables	17	$ 17
Unused credit card lines	$ 99		$ 81
Minimum | Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables, original term	3 years
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Whole loan sale flow agreement, commitment period	1 year
Maximum | Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance receivables, original term	6 years
Unlikely to be Collected Financing Receivable | Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold period past due	60 days
Nonperforming (Nonaccrual) | Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold period past due	90 days
Reversal of net accrued finance charges	$ 37	27
Interest income	$ 6	$ 4
Nonperforming (Nonaccrual) | Credit Cards
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold period past due	180 days

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Finance Receivables - Net Finance Receivables by Type (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross finance receivables	$ 19,565	$ 19,722
Unearned fees	(215)	(220)
Accrued finance charges and fees	276	299
Deferred origination costs	183	185
Financing Receivable, Total	19,809	19,986
Personal Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross finance receivables	19,444	19,615
Unearned fees	(215)	(220)
Accrued finance charges and fees	276	299
Deferred origination costs	182	185
Financing Receivable, Total	19,687	19,879
Credit Cards
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross finance receivables	121	107
Unearned fees	0	0
Accrued finance charges and fees	0	0
Deferred origination costs	1	0
Financing Receivable, Total	$ 122	$ 107

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Finance Receivables - Delinquent and Nonperforming Finance Receivables, by Year of Origination (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Financing Receivable By Year Originated
Financing Receivable, Total	$ 19,809		$ 19,986
Gross charge-offs
Financing Receivable, Gross Charge-Offs	451	$ 329
Personal Loans
Financing Receivable By Year Originated
Year One	2,644		11,002
Prior Year Two	9,676		5,410
Prior Year Three	4,571		1,907
Prior Year Four	1,578		1,172
Prior Year Five	928		268
Prior Year Six	290		120
Financing Receivable, Total	19,687		19,879
Gross charge-offs
Year One	0
Prior Year Two	139
Prior Year Three	199
Prior Year Four	59
Prior Year Five	34
Prior Year Six	14
Financing Receivable, Gross Charge-Offs	445	$ 329
Performing | Personal Loans
Financing Receivable By Year Originated
Year One	2,644		10,842
Prior Year Two	9,459		5,164
Prior Year Three	4,365		1,833
Prior Year Four	1,517		1,128
Prior Year Five	893		255
Prior Year Six	275		113
Financing Receivable, Total	19,153		19,335
Performing | Current | Personal Loans
Financing Receivable By Year Originated
Year One	2,641		10,614
Prior Year Two	9,224		4,927
Prior Year Three	4,195		1,758
Prior Year Four	1,464		1,081
Prior Year Five	861		240
Prior Year Six	260		105
Financing Receivable, Total	18,645		18,725
Performing | 30-59 days past due | Personal Loans
Financing Receivable By Year Originated
Year One	3		136
Prior Year Two	137		136
Prior Year Three	98		43
Prior Year Four	31		28
Prior Year Five	19		9
Prior Year Six	9		5
Financing Receivable, Total	297		357
Performing | 60-89 days past due | Personal Loans
Financing Receivable By Year Originated
Year One	0		92
Prior Year Two	98		101
Prior Year Three	72		32
Prior Year Four	22		19
Prior Year Five	13		6
Prior Year Six	6		3
Financing Receivable, Total	211		253
Nonperforming (Nonaccrual) | 90+ days past due | Personal Loans
Financing Receivable By Year Originated
Year One	0		160
Prior Year Two	217		246
Prior Year Three	206		74
Prior Year Four	61		44
Prior Year Five	35		13
Prior Year Six	15		7
Financing Receivable, Total	$ 534		$ 544

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Finance Receivables - Summary of Credit Cards by Number of Days Delinquent (Details) - Credit Cards - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Delinquency by finance receivables type
Financing receivable	$ 122	$ 107
Current
Delinquency by finance receivables type
Financing receivable	106	93
30-59 days past due
Delinquency by finance receivables type
Financing receivable	4	3
60-89 days past due
Delinquency by finance receivables type
Financing receivable	3	3
90+ days past due
Delinquency by finance receivables type
Financing receivable	$ 9	$ 8

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Finance Receivables - Modified Financing Receivables To Borrowers Experiencing Financial Difficulty (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Financing Receivable, Modified [Line Items]
Modifications as a percent of net finance receivables	1.13%
Personal Loans
Financing Receivable, Modified [Line Items]
Modifications to borrowers experiencing financial difficulties	$ 222
Personal Loans | Interest rate reduction and term extension
Financing Receivable, Modified [Line Items]
Modifications to borrowers experiencing financial difficulties	126
Personal Loans | Interest rate reduction and principal forgiveness
Financing Receivable, Modified [Line Items]
Modifications to borrowers experiencing financial difficulties	96
Personal Loans | Payment delays
Financing Receivable, Modified [Line Items]
Modifications to borrowers experiencing financial difficulties	$ 0

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Finance Receivables - Modified Financing Receivables Financial Effects (Details) - Personal Loans $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Financing Receivable, Modified [Line Items]
Weighted-average interest rate reduction	21.32%
Weighted-average term extension (months)	19 months
Principal/interest forgiveness	$ 11

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Finance Receivables - Modified Financing Receivables Days Delinquent (Details) - Personal Loans $ in Millions	Mar. 31, 2023 USD ($)
Financing Receivable, Modified [Line Items]
Modified financing receivables	$ 222
Current
Financing Receivable, Modified [Line Items]
Modified financing receivables	159
30-59 days past due
Financing Receivable, Modified [Line Items]
Modified financing receivables	27
60-89 days past due
Financing Receivable, Modified [Line Items]
Modified financing receivables	14
90+ days past due
Financing Receivable, Modified [Line Items]
Modified financing receivables	$ 22

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Finance Receivables - TDR Finance Receivables (Details) - Personal Loans $ in Millions	Dec. 31, 2022 USD ($)
Financing Receivable, Modified [Line Items]
TDR gross finance receivables	$ 898
TDR net finance receivables	904
Allowance for TDR finance receivable losses	$ 369

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Finance Receivables - New Volume of TDR HFI & HFS Finance Receivables (Details) - Personal Loans $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) account
Financing Receivable, Modified [Line Items]
Pre-modification TDR net finance receivables	$ 134
Total post-modification TDR net finance receivables	$ 134
Number of TDR accounts | account	16,165
Rate reduction
Financing Receivable, Modified [Line Items]
Total post-modification TDR net finance receivables	$ 87
Other
Financing Receivable, Modified [Line Items]
Total post-modification TDR net finance receivables	$ 47

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Finance Receivables - Modified as TDR - Non Performing Finance Receivables (Details) - Personal Loans $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) account
Delinquency by finance receivables type
TDR net finance receivables | $	$ 30
Number of TDR accounts | account	3,796

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Allowance for Finance Receivable Losses - Changes in Allowance by Type (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Changes in allowance for finance receivable losses
Balance at beginning of period	$ 2,311	$ 2,095
Provision for finance receivable losses	385	238
Charge-offs	(451)	(329)
Recoveries	69	67
Balance at end of period	2,298	2,071
Cumulative Effect, Period Of Adoption, Adjustment
Changes in allowance for finance receivable losses
Balance at beginning of period	(16)
Personal Loans
Changes in allowance for finance receivable losses
Balance at beginning of period	2,290	2,090
Provision for finance receivable losses	377	233
Charge-offs	(445)	(329)
Recoveries	69	67
Balance at end of period	2,275	2,061
Personal Loans | Cumulative Effect, Period Of Adoption, Adjustment
Changes in allowance for finance receivable losses
Balance at beginning of period	(16)
Credit Cards
Changes in allowance for finance receivable losses
Balance at beginning of period	21	5
Provision for finance receivable losses	8	5
Charge-offs	(6)	0
Recoveries	0	0
Balance at end of period	23	$ 10
Credit Cards | Cumulative Effect, Period Of Adoption, Adjustment
Changes in allowance for finance receivable losses
Balance at beginning of period	$ 0

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Investment Securities - Cost/Amortized, Unrealized Gains/Losses & FV on AFS Investment Securities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	$ 1,859	$ 1,897
Unrealized Gains	3	1
Unrealized Losses	(146)	(169)
Fair Value	1,716	1,729
U.S. government and government sponsored entities
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	17	17
Unrealized Gains	0	0
Unrealized Losses	(1)	(1)
Fair Value	16	16
Obligations of states, municipalities, and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	73	74
Unrealized Gains	0	0
Unrealized Losses	(6)	(8)
Fair Value	67	66
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	55	55
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	55	55
Non-U.S. government and government sponsored entities
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	151	150
Unrealized Gains	0	0
Unrealized Losses	(7)	(8)
Fair Value	144	142
Corporate debt
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	1,219	1,251
Unrealized Gains	3	1
Unrealized Losses	(99)	(115)
Fair Value	1,123	1,137
RMBS
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	213	217
Unrealized Gains	0	0
Unrealized Losses	(23)	(25)
Fair Value	190	192
CMBS
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	38	38
Unrealized Gains	0	0
Unrealized Losses	(3)	(3)
Fair Value	35	35
CDO/ABS
Debt Securities, Available-for-sale [Line Items]
Cost/ Amortized Cost	93	95
Unrealized Gains	0	0
Unrealized Losses	(7)	(9)
Fair Value	$ 86	$ 86

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Investment Securities - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) investment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) investment
Investments, Debt and Equity Securities [Abstract]
Interest receivable	$ 14		$ 14
Investment securities in an unrealized loss position | investment	2,176		2,280
Proceeds from sales and redemptions	$ 26	$ 163
Securities on deposit with third parties	$ 535		$ 532

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Investment Securities - Fair Value and Unrealized Losses on AFS Investment Securities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value
Less Than 12 Months	$ 489	$ 1,164
12 Months or Longer	1,070	468
Total	1,559	1,632
Unrealized Losses
Less Than 12 Months	(10)	(76)
12 Months or Longer	(136)	(93)
Total	(146)	(169)
U.S. government and government sponsored entities
Fair Value
Less Than 12 Months	10	10
12 Months or Longer	6	6
Total	16	16
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	(1)	(1)
Total	(1)	(1)
Obligations of states, municipalities, and political subdivisions
Fair Value
Less Than 12 Months	12	48
12 Months or Longer	50	15
Total	62	63
Unrealized Losses
Less Than 12 Months	0	(5)
12 Months or Longer	(6)	(3)
Total	(6)	(8)
Commercial paper
Fair Value
Less Than 12 Months	51	51
12 Months or Longer	0	0
Total	51	51
Unrealized Losses
Less Than 12 Months	0	0
12 Months or Longer	0	0
Total	0	0
Non-U.S. government and government sponsored entities
Fair Value
Less Than 12 Months	30	104
12 Months or Longer	93	32
Total	123	136
Unrealized Losses
Less Than 12 Months	0	(3)
12 Months or Longer	(7)	(5)
Total	(7)	(8)
Corporate debt
Fair Value
Less Than 12 Months	311	779
12 Months or Longer	712	299
Total	1,023	1,078
Unrealized Losses
Less Than 12 Months	(8)	(54)
12 Months or Longer	(91)	(61)
Total	(99)	(115)
RMBS
Fair Value
Less Than 12 Months	48	106
12 Months or Longer	125	68
Total	173	174
Unrealized Losses
Less Than 12 Months	(2)	(9)
12 Months or Longer	(21)	(16)
Total	(23)	(25)
CMBS
Fair Value
Less Than 12 Months	9	21
12 Months or Longer	26	13
Total	35	34
Unrealized Losses
Less Than 12 Months	0	(2)
12 Months or Longer	(3)	(1)
Total	(3)	(3)
CDO/ABS
Fair Value
Less Than 12 Months	18	45
12 Months or Longer	58	35
Total	76	80
Unrealized Losses
Less Than 12 Months	0	(3)
12 Months or Longer	(7)	(6)
Total	$ (7)	$ (9)

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Investment Securities - Contractual Maturities of AFS Investment Securities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	$ 192
Due after 1 year through 5 years	544
Due after 5 years through 10 years	532
Due after 10 years	137
Mortgage-backed, asset-backed, and collateralized securities	311
Fair Value	1,716	$ 1,729
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities:
Due in 1 year or less	194
Due after 1 year through 5 years	571
Due after 5 years through 10 years	592
Due after 10 years	158
Mortgage-backed, asset-backed, and collateralized securities	344
Cost/ Amortized Cost	$ 1,859	$ 1,897

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Investment Securities - Fair Value of Other Securities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Debt and Equity Securities, FV-NI [Line Items]
Bonds	$ 21	$ 23
Total	70	71
Preferred stock
Debt and Equity Securities, FV-NI [Line Items]
Equity securities	16	15
Common stock
Debt and Equity Securities, FV-NI [Line Items]
Equity securities	$ 33	$ 33

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Long-term Debt - Principal Maturities of Long-Term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Principal maturities of long-term debt by type of debt
Remainder of 2023	$ 226
2024	1,270
2025	1,249
2026	1,600
2027	750
2028-2067	3,282
Secured	10,104
Total principal maturities	18,481
Long-term debt	18,206	$ 18,281
Debt issuance costs	(98)
Securitizations
Principal maturities of long-term debt by type of debt
Remainder of 2023	0
2024	0
2025	0
2026	0
2027	0
2028-2067	0
Secured	9,654
Total principal maturities	9,654
Long-term debt	9,611
Debt issuance costs	$ (40)
Securitizations | Minimum
Long-term debt
Interest rate	0.87%
Securitizations | Maximum
Long-term debt
Interest rate	7.07%
Private Secured Term Funding
Principal maturities of long-term debt by type of debt
Remainder of 2023	$ 0
2024	0
2025	0
2026	0
2027	0
2028-2067	0
Secured	350
Total principal maturities	350
Long-term debt	349
Debt issuance costs	$ (1)
Private Secured Term Funding | Minimum
Long-term debt
Interest rate	5.77%
Revolving Conduit Facilities
Principal maturities of long-term debt by type of debt
Remainder of 2023	$ 0
2024	0
2025	0
2026	0
2027	0
2028-2067	0
Secured	100
Total principal maturities	100
Long-term debt	100
Debt issuance costs	$ 0
Revolving Conduit Facilities | Minimum
Long-term debt
Interest rate	5.55%
Unsecured Notes | Revolving Conduit Facilities
Principal maturities of long-term debt by type of debt
Debt issuance costs	$ 31
Unsecured Notes | Unsecured Notes
Principal maturities of long-term debt by type of debt
Remainder of 2023	226
2024	1,270
2025	1,249
2026	1,600
2027	750
2028-2067	2,932
Total principal maturities	8,027
Long-term debt	7,974
Debt issuance costs	$ (57)
Unsecured Notes | Unsecured Notes | Minimum
Long-term debt
Interest rate	3.50%
Unsecured Notes | Unsecured Notes | Maximum
Long-term debt
Interest rate	8.25%
Junior Subordinated Debt
Long-term debt
Interest rate	6.58%
Principal maturities of long-term debt by type of debt
Remainder of 2023	$ 0
2024	0
2025	0
2026	0
2027	0
2028-2067	350
Total principal maturities	350
Long-term debt	172
Debt issuance costs	$ 0

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Long-term Debt- Narrative (Details) 10Q - Revolver - Securitizations - OMFC - USD ($)	Oct. 25, 2021	Mar. 31, 2023
Debt Instrument [Line Items]
Total borrowing capacity		$ 1,250,000,000
Debt instrument, term	5 years
Outstanding balance		$ 0

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Variable Interest Entities - Carrying Amount of Consolidated VIEs (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Cash and cash equivalents	$ 544	$ 498	$ 640
Net finance receivables	19,809	19,986
Allowance for finance receivable losses	2,298	2,311	2,071	$ 2,095
Restricted cash and restricted cash equivalents	531	461	531
Other assets	1,113	1,154	$ 989	$ 1,019	$ 1,075
Long-term debt	18,206	18,281
Consolidated VIEs
Variable Interest Entity [Line Items]
Cash and cash equivalents	2	2
Net finance receivables	11,108	10,432
Allowance for finance receivable losses	1,206	1,126
Restricted cash and restricted cash equivalents	513	442
Other assets	29	28
Long-term debt	10,060	9,361
Other liabilities	$ 20	$ 20

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Variable Interest Entities - Consolidated VIEs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Variable Interest Entity [Line Items]
Interest expense	$ 239	$ 219
Consolidated VIEs
Variable Interest Entity [Line Items]
Interest expense	$ 101	$ 65

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Variable Interest Entities - Securitized Borrowings (Details)	3 Months Ended
	Mar. 31, 2023
Minimum
Debt Instrument [Line Items]
Revolving period	2 years
Maximum
Debt Instrument [Line Items]
Revolving period	7 years

XML

Variable Interest Entities - Private Secured Term Funding (Details) - Private Secured Term Funding - Consolidated VIEs	3 Months Ended
	Mar. 31, 2023 USD ($)
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 350,000,000
Payments required in first 3 years	$ 0
Amortization period after first 3 years	1 year

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Variable Interest Entities - Revolving Conduit Facilities (Details) - Consolidated VIEs - Securitizations $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) facility
Line of Credit Facility [Line Items]
Number of conduit facilities | facility	15
Total borrowing capacity	$ 6,200
Debt instrument, term	10 years
Amounts drawn	$ 100
Remaining borrowing capacity	$ 6,100

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Insurance - Changes in the Reserve for Unpaid Claims and Loss Adjustment Expenses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Liability for unpaid claims and claims adjustment expense
Balance at beginning of period	$ 93	$ 102
Less reinsurance recoverables	(3)	(3)	$ (3)	$ (3)
Net balance at beginning of period	90	99
Additions for losses and loss adjustment expenses incurred to:
Current year	42	46
Prior years	(1)	(6)
Total	41	40
Reductions for losses and loss adjustment expenses paid related to:
Current year	(12)	(13)
Prior years	(27)	(27)
Total	(39)	(40)
Net balance at end of period	92	99
Plus reinsurance recoverables	3	3	$ 3	$ 3
Balance at end of period	$ 95	102
Revision of Prior Period, Adjustment
Liability for unpaid claims and claims adjustment expense
Balance at beginning of period		$ (16)

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Insurance - Present Value of Expected Net Premium And Future Policy Benefits (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Term and Whole Life
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward]
Balance at beginning of period	$ 252	$ 313
Beginning balance at original discount rate	244	260
Effect of actual variances from expected experience			$ (2)	$ 1
Adjusted balance at beginning of period			242	261
Interest accretion	6	27
Net premiums collected	(7)	(10)
Ending balance at original discount rate	241	278
Effect of changes in discount rate assumptions	5	35	8	53
Balance at ending of period	246	313
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Balance at beginning of period	473	571
Beginning balance at original discount rate	461	505
Effect of actual variances from expected experience			1	2
Adjusted balance at beginning of period			467	494
Net issuances	1	1
Interest accretion	9	27
Benefit payments	(16)	(17)
Ending balance at original discount rate	466	492
Effect of changes in discount rate assumptions	(12)	(66)	(17)	(109)
Balance at ending of period	483	601
Accidental Death and Disability Protection
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward]
Balance at beginning of period	48	69
Beginning balance at original discount rate	48	59
Effect of actual variances from expected experience			0	0
Adjusted balance at beginning of period			48	59
Interest accretion	0	(1)
Net premiums collected	(2)	(2)
Ending balance at original discount rate	46	56
Effect of changes in discount rate assumptions	0	6	0	10
Balance at ending of period	46	62
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward]
Balance at beginning of period	123	148
Beginning balance at original discount rate	123	134
Effect of actual variances from expected experience			(1)	(1)
Adjusted balance at beginning of period			124	137
Net issuances	0	0
Interest accretion	3	1
Benefit payments	(4)	(4)
Ending balance at original discount rate	125	138
Effect of changes in discount rate assumptions	0	(14)	$ (1)	$ (27)
Balance at ending of period	$ 126	$ 165

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Insurance - Net Liability for Future Policy Benefits (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Liability for Future Policy Benefit, Activity [Line Items]
Total net liability for future policy benefits	$ 615	$ 658
Term and Whole Life
Liability for Future Policy Benefit, Activity [Line Items]
Net liability for future policy benefits	227	258
Deferred profit liability	15	16
Total net liability for future policy benefits	242	274
Accidental Death and Disability Protection
Liability for Future Policy Benefit, Activity [Line Items]
Net liability for future policy benefits	77	86
Deferred profit liability	54	61
Total net liability for future policy benefits	$ 131	$ 147

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Insurance - Additional Information (Details)	Mar. 31, 2023	Mar. 31, 2022
Insurance [Abstract]
Weighted-average duration of the liability for future policy benefits	8 years	8 years

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Insurance - Reconciliation of Net Liability for Future Policy Benefits To the Consolidated Statements of Financial Position (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Liability for Future Policy Benefit, Activity [Line Items]
Total net liability for future policy benefits	$ 615	$ 658
Term and Whole Life
Liability for Future Policy Benefit, Activity [Line Items]
Total net liability for future policy benefits	242	274
Accidental Death and Disability Protection
Liability for Future Policy Benefit, Activity [Line Items]
Total net liability for future policy benefits	131	147
Other
Liability for Future Policy Benefit, Activity [Line Items]
Total net liability for future policy benefits	$ 242	$ 237

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Insurance - Undiscounted and Discounted Expected Gross Premiums And Expected Future Benefits (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Term and Whole Life
Expected future gross premiums:
Undiscounted	$ 466	$ 586
Discounted	326	442
Expected future benefit payments:
Undiscounted	670	741
Discounted	473	571
Accidental Death and Disability Protection
Expected future gross premiums:
Undiscounted	159	181
Discounted	114	142
Expected future benefit payments:
Undiscounted	181	198
Discounted	$ 123	$ 148

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Insurance - Consolidated Statements of Operations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Term and Whole Life
Liability for Future Policy Benefit, Activity [Line Items]
Gross premiums or assessments	$ 11	$ 17
Interest accretion	3	0
Total	14	17
Accidental Death and Disability Protection
Liability for Future Policy Benefit, Activity [Line Items]
Gross premiums or assessments	5	5
Interest accretion	3	1
Total	$ 8	$ 6

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Insurance - Actuarial Assumptions (Details)	Mar. 31, 2023	Mar. 31, 2022
Measurement Input, Mortality Rate, Expected | Term and Whole Life
Market Risk Benefit [Line Items]
Market risk benefit, measurement input	0.0039	0.0040
Measurement Input, Mortality Rate, Expected | Accidental Death and Disability Protection
Market Risk Benefit [Line Items]
Market risk benefit, measurement input	0.0001	0.0001
Measurement Input, Mortality Rate, Actual | Term and Whole Life
Market Risk Benefit [Line Items]
Market risk benefit, measurement input	0.0031	0.0043
Measurement Input, Mortality Rate, Actual | Accidental Death and Disability Protection
Market Risk Benefit [Line Items]
Market risk benefit, measurement input	0.0001	0.0001
Measurement Input, Lapses, Expected | Term and Whole Life
Market Risk Benefit [Line Items]
Market risk benefit, measurement input	0.0318	0.0270
Measurement Input, Lapses, Expected | Accidental Death and Disability Protection
Market Risk Benefit [Line Items]
Market risk benefit, measurement input	0.0224	0.0227
Measurement Input, Lapses, Actual | Term and Whole Life
Market Risk Benefit [Line Items]
Market risk benefit, measurement input	0.0167	0.0096
Measurement Input, Lapses, Actual | Accidental Death and Disability Protection
Market Risk Benefit [Line Items]
Market risk benefit, measurement input	0.0034	0.0033

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Insurance - Weighted-Average Interest Rates for the Liability of Future Policy Benefits (Details)	Mar. 31, 2023	Mar. 31, 2022
Term and Whole Life
Additional Liability, Long-Duration Insurance [Line Items]
Interest accretion rate	5.26%	5.26%
Current discount rate	5.07%	3.68%
Accidental Death and Disability Protection
Additional Liability, Long-Duration Insurance [Line Items]
Interest accretion rate	4.86%	4.85%
Current discount rate	5.06%	3.61%

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Capital Stock and Earnings Per Share (OMH Only) - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 class
Earnings Per Share [Abstract]
Number of classes of authorized stock	2

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Capital Stock and Earnings Per Share (OMH Only) - Changes in Shares Issued and Outstanding (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	121,042,125	127,809,640
Common stock issued (in shares)	207,403	252,277
Common stock repurchased (in shares)	(683,384)	(2,282,552)
Treasury stock issued (in shares)	21,070	14,471
Ending balance (in shares)	120,587,214	125,793,836

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Capital Stock and Earnings Per Share (OMH Only) - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator (basic and diluted):
Net income	$ 179	$ 303
Denominator:
Weighted average number of shares outstanding (basic) (in shares)	120,765,661	127,075,714
Effect of dilutive securities (in shares)	204,230	387,313
Weighted average number of shares outstanding (diluted) (in shares)	120,969,891	127,463,027
Earnings per share:
Basic (in dollars per share)	$ 1.48	$ 2.38
Diluted (in dollars per share)	$ 1.48	$ 2.38
Restricted stock units
Earnings per share:
Shares excluded in the diluted earnings per share calculation (in shares)	1,543,976	1,172,754

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance at beginning of period	$ 3,015	$ 3,037
Other comprehensive income (loss) before reclassifications	19	(45)
Reclassification adjustments from accumulated other comprehensive income		(2)
Balance at end of period	3,081	3,060
Unrealized Gains (Losses) Available-for-Sale Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance at beginning of period	(131)	49
Other comprehensive income (loss) before reclassifications	19	(81)
Reclassification adjustments from accumulated other comprehensive income		(2)
Balance at end of period	(112)	(34)
Retirement Plan Liabilities Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance at beginning of period	(8)	1
Other comprehensive income (loss) before reclassifications	0	0
Reclassification adjustments from accumulated other comprehensive income		0
Balance at end of period	(8)	1
Foreign Currency Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance at beginning of period	(5)	3
Other comprehensive income (loss) before reclassifications	0	1
Reclassification adjustments from accumulated other comprehensive income		0
Balance at end of period	(5)	4
Changes in discount rate for insurance claims and policyholder liabilities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance at beginning of period	(8)	(56)
Other comprehensive income (loss) before reclassifications	3	25
Reclassification adjustments from accumulated other comprehensive income		0
Balance at end of period	(5)	(31)
Other
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance at beginning of period	25	8
Other comprehensive income (loss) before reclassifications	(3)	10
Reclassification adjustments from accumulated other comprehensive income		0
Balance at end of period	22	18
Accumulated Other Comprehensive Income (Loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Balance at beginning of period	(127)	5
Balance at end of period	$ (108)	$ (42)

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Net deferred tax asset	$ 438		$ 456
Effective tax rate	24.00%	24.10%
Unrecognized tax benefits	$ 6

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Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Interest income	$ 1,094	$ 1,089
Interest expense	239	219
Provision for finance receivable losses	385	238
Net interest income after provision for finance receivable losses	470	632
Total other revenues	177	162
Total other expenses	412	395
Income before income taxes	235	399
Total assets	22,443	21,816	$ 22,537
Consumer and Insurance | Consumer and Insurance
Segment Reporting Information [Line Items]
Interest income	1,092	1,087
Interest expense	238	217
Provision for finance receivable losses	385	237
Net interest income after provision for finance receivable losses	469	633
Total other revenues	176	158
Total other expenses	409	392
Income before income taxes	236	399
Total assets	21,199	19,756
Other
Segment Reporting Information [Line Items]
Interest income	1	1
Interest expense	0	1
Provision for finance receivable losses	0	0
Net interest income after provision for finance receivable losses	1	0
Total other revenues	1	4
Total other expenses	3	4
Income before income taxes	(1)	0
Total assets	30	40
Segment to GAAP Adjustment
Segment Reporting Information [Line Items]
Interest income	1	1
Interest expense	1	1
Provision for finance receivable losses	0	1
Net interest income after provision for finance receivable losses	0	(1)
Total other revenues	0	0
Total other expenses	0	(1)
Income before income taxes	0	0
Total assets	$ 1,214	$ 2,020

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Fair Value Measurements - Fair Value & Carrying Value Hierarchy Basis (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Assets
Restricted cash and restricted cash equivalents	$ 531	$ 461	$ 531
Total Fair Value
Assets
Cash and cash equivalents	544	498
Investment securities	1,786	1,800
Net finance receivables, less allowance for finance receivable losses	19,150	19,272
Restricted cash and restricted cash equivalents	531	461
Other assets	41	43
Liabilities
Long-term debt	17,057	16,969
Total Carrying Value
Assets
Cash and cash equivalents	544	498
Investment securities	1,786	1,800
Net finance receivables, less allowance for finance receivable losses	17,511	17,675
Restricted cash and restricted cash equivalents	531	461
Other assets	31	35
Liabilities
Long-term debt	18,206	18,281
Level 1
Assets
Cash and cash equivalents	538	481
Investment securities	52	51
Net finance receivables, less allowance for finance receivable losses	0	0
Restricted cash and restricted cash equivalents	531	450
Other assets	0	0
Liabilities
Long-term debt	0	0
Level 2
Assets
Cash and cash equivalents	6	17
Investment securities	1,729	1,744
Net finance receivables, less allowance for finance receivable losses	0	0
Restricted cash and restricted cash equivalents	0	11
Other assets	0	0
Liabilities
Long-term debt	17,057	16,969
Level 3
Assets
Cash and cash equivalents	0	0
Investment securities	5	5
Net finance receivables, less allowance for finance receivable losses	19,150	19,272
Restricted cash and restricted cash equivalents	0	0
Other assets	41	43
Liabilities
Long-term debt	$ 0	$ 0

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Fair Value Measurements - Assets at Fair Value Recurring Basis (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	$ 1,716	$ 1,729
Other securities	70	71
Restricted cash and restricted cash equivalents	531	461	$ 531
U.S. government and government sponsored entities
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	16	16
Obligations of states, municipalities, and political subdivisions
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	67	66
Corporate debt
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	1,123	1,137
RMBS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	190	192
CMBS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	35	35
CDO/ABS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	86	86
Level 1
Investments, Debt and Equity Securities [Abstract]
Total investment securities	52	51
Restricted cash and restricted cash equivalents	531	450
Level 2
Investments, Debt and Equity Securities [Abstract]
Total investment securities	1,729	1,744
Restricted cash and restricted cash equivalents	0	11
Level 3
Investments, Debt and Equity Securities [Abstract]
Total investment securities	5	5
Restricted cash and restricted cash equivalents	0	0
Fair Value, Measurements, Recurring
Assets
Cash equivalents in mutual funds	109	77
Cash equivalents in securities	6	17
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	1,716	1,729
Other securities	70	71
Total investment securities	1,786	1,800
Restricted cash equivalents in mutual funds	517	445
Restricted cash and restricted cash equivalents		11
Total	2,418	2,350
Fair Value, Measurements, Recurring | Total bonds
Investments, Debt and Equity Securities [Abstract]
Other securities	21	23
Fair Value, Measurements, Recurring | U.S. government and government sponsored entities
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	16	16
Fair Value, Measurements, Recurring | Obligations of states, municipalities, and political subdivisions
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	67	66
Fair Value, Measurements, Recurring | Commercial paper
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	55	55
Fair Value, Measurements, Recurring | Non-U.S. government and government sponsored entities
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	144	142
Fair Value, Measurements, Recurring | Corporate debt
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	1,123	1,137
Other securities	5	6
Fair Value, Measurements, Recurring | RMBS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	190	192
Other securities		1
Fair Value, Measurements, Recurring | CMBS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	35	35
Fair Value, Measurements, Recurring | CDO/ABS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	86	86
Other securities	16	16
Fair Value, Measurements, Recurring | Preferred stock
Investments, Debt and Equity Securities [Abstract]
Other securities	16	15
Fair Value, Measurements, Recurring | Common stock
Investments, Debt and Equity Securities [Abstract]
Other securities	33	33
Fair Value, Measurements, Recurring | Level 1
Assets
Cash equivalents in mutual funds	109	77
Cash equivalents in securities	0	0
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	5	5
Other securities	47	46
Total investment securities	52	51
Restricted cash equivalents in mutual funds	517	445
Restricted cash and restricted cash equivalents		0
Total	678	573
Fair Value, Measurements, Recurring | Level 1 | Total bonds
Investments, Debt and Equity Securities [Abstract]
Other securities	0	0
Fair Value, Measurements, Recurring | Level 1 | U.S. government and government sponsored entities
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Obligations of states, municipalities, and political subdivisions
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Commercial paper
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Non-U.S. government and government sponsored entities
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Corporate debt
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	5	5
Other securities	0	0
Fair Value, Measurements, Recurring | Level 1 | RMBS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Other securities		0
Fair Value, Measurements, Recurring | Level 1 | CMBS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 1 | CDO/ABS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Other securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Preferred stock
Investments, Debt and Equity Securities [Abstract]
Other securities	16	15
Fair Value, Measurements, Recurring | Level 1 | Common stock
Investments, Debt and Equity Securities [Abstract]
Other securities	31	31
Fair Value, Measurements, Recurring | Level 2
Assets
Cash equivalents in mutual funds	0	0
Cash equivalents in securities	6	17
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	1,708	1,721
Other securities	21	23
Total investment securities	1,729	1,744
Restricted cash equivalents in mutual funds	0	0
Restricted cash and restricted cash equivalents		11
Total	1,735	1,772
Fair Value, Measurements, Recurring | Level 2 | Total bonds
Investments, Debt and Equity Securities [Abstract]
Other securities	21	23
Fair Value, Measurements, Recurring | Level 2 | U.S. government and government sponsored entities
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	16	16
Fair Value, Measurements, Recurring | Level 2 | Obligations of states, municipalities, and political subdivisions
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	67	66
Fair Value, Measurements, Recurring | Level 2 | Commercial paper
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	55	55
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government and government sponsored entities
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	144	142
Fair Value, Measurements, Recurring | Level 2 | Corporate debt
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	1,115	1,129
Other securities	5	6
Fair Value, Measurements, Recurring | Level 2 | RMBS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	190	192
Other securities		1
Fair Value, Measurements, Recurring | Level 2 | CMBS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	35	35
Fair Value, Measurements, Recurring | Level 2 | CDO/ABS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	86	86
Other securities	16	16
Fair Value, Measurements, Recurring | Level 2 | Preferred stock
Investments, Debt and Equity Securities [Abstract]
Other securities	0	0
Fair Value, Measurements, Recurring | Level 2 | Common stock
Investments, Debt and Equity Securities [Abstract]
Other securities	0	0
Fair Value, Measurements, Recurring | Level 3
Assets
Cash equivalents in mutual funds	0	0
Cash equivalents in securities	0	0
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	3	3
Other securities	2	2
Total investment securities	5	5
Restricted cash equivalents in mutual funds	0	0
Restricted cash and restricted cash equivalents		0
Total	5	5
Fair Value, Measurements, Recurring | Level 3 | Total bonds
Investments, Debt and Equity Securities [Abstract]
Other securities	0	0
Fair Value, Measurements, Recurring | Level 3 | U.S. government and government sponsored entities
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Obligations of states, municipalities, and political subdivisions
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Commercial paper
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Non-U.S. government and government sponsored entities
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Corporate debt
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	3	3
Other securities	0	0
Fair Value, Measurements, Recurring | Level 3 | RMBS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Other securities		0
Fair Value, Measurements, Recurring | Level 3 | CMBS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3 | CDO/ABS
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities	0	0
Other securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Preferred stock
Investments, Debt and Equity Securities [Abstract]
Other securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Common stock
Investments, Debt and Equity Securities [Abstract]
Other securities	$ 2	$ 2