ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables summarize the changes in the accumulated balances for each component of accumulated other comprehensive income (loss) (“AOCI”) as of March 31, 2021 and December 31, 2020.

Changes in Accumulated Other Comprehensive Income (Loss) by Component 

	Unrealized Gains and Losses on Investments(2)		Accumulated Gain and Loss on Derivatives		Total Accumulated Other Comprehensive Income (Loss)
	(Dollars In Millions, Net of Tax)
Balance, December 31, 2019	$	1,421	$	(8)	$	1,413
Other comprehensive income (loss) before reclassifications	2,048		(2)		2,046
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings	24		—		24
Amounts reclassified from accumulated other comprehensive income (loss)(1)	63		2		65
Balance, December 31, 2020	3,556		(8)		3,548
Other comprehensive income (loss) before reclassifications	(1,767)		2		(1,765)
Other comprehensive income (loss) on investments in net expected credit losses	5		—		5
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(27)		—		(27)
Balance, March 31, 2021	$	1,767	$	(6)	$	1,761
(1)  See Reclassifications Out of Accumulated Other Comprehensive Income (Loss) table below for details.
(2)  As of March 31, 2021 and December 31, 2020, net unrealized gains reported in AOCI were offset by $(1.0) billion and $(2.0) billion, respectively, due to the impact those net unrealized losses would have had on certain of the Company’s insurance assets and liabilities if the net unrealized losses had been recognized in net income.

The following tables summarize the reclassifications amounts out of AOCI for the three months ended March 31, 2021 and 2020.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

		For The Three Months Ended March 31,
Gains (losses) in net income:	Affected Line Item in the Consolidated Condensed Statements of Income	2021		2020
		(Dollars In Millions)
Derivative instruments	Benefits and settlement expenses, net of reinsurance ceded(1)	$	—	$	(1)
	Tax (expense) benefit	—		—
		$	—	$	(1)
Unrealized gains and losses on available-for-sale securities	Realized gains (losses) - investments	$	30	$	39
	Change in net expected credit losses - fixed maturities	5		(52)
	Tax (expense) benefit	(8)		3
		$	27	$	(10)
(1) See Note 5, Derivative Financial Instruments for additional information