OPERATING SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2021

Summary of Financial Information for the Company's Segments

The following tables present a summary of results and reconciles pre-tax adjusted operating income (loss) to consolidated income before income tax and net income:


	For The Three Months Ended June 30,				For The Six Months Ended June 30,
	2021		2020		2021		2020
	(Dollars In Millions)
Revenues
Retail Life and Annuity	$	612	$	519	$	1,385	$	1,051
Acquisitions	744		798		1,533		1,597
Stable Value Products	88		52		169		89
Asset Protection	68		67		139		141
Corporate and Other	(3)		32		(4)		31
Total revenues	$	1,509	$	1,468	$	3,222	$	2,909
Pre-tax Adjusted Operating Income (Loss)			s
Retail Life and Annuity	$	39	$	35	$	22	$	24
Acquisitions	136		98		213		173
Stable Value Products	34		16		65		41
Asset Protection	8		13		22		25
Corporate and Other	(43)		(32)		(94)		(73)
Pre-tax adjusted operating income	174		130		228		190
Non-operating income (loss)	27		44		100		(175)
Income before income tax	201		174		328		15
Income tax expense	(39)		(32)		(64)		(2)
Net income	$	162	$	142	$	264	$	13

Pre-tax adjusted operating income	$	174	$	130	$	228	$	190
Adjusted operating income tax expense	(33)		(23)		(42)		(39)
After-tax adjusted operating income	141		107		186		151
Non-operating income (loss)	27		44		100		(175)
Income tax (expense) benefit on adjustments	(6)		(9)		(22)		37
Net income	$	162	$	142	$	264	$	13

Non-operating income (loss)
Derivative losses	$	(182)	$	(215)	$	(1)	$	(239)
Investment gains (losses)	149		181		95		(96)
VA/VUL market impacts(1)	11		—		19		—
Less: related amortization(2)	(25)		(55)		62		(114)
Less: VA GLWB economic cost	(24)		(23)		(49)		(46)
Total non-operating income (loss)	$	27	$	44	$	100	$	(175)

(1) Represents the immediate impacts on DAC, VOBA, reserves, and other non-cash items in current period results due to changes in current market conditions on estimates of profitability, which are excluded from pre-tax and after-tax adjusted operating income (loss) beginning in Q1 of 2021.
(2) Includes amortization of DAC/VOBA and benefits and settlement expenses that are impacted by realized gains (losses).


	For The Three Months Ended June 30,				For The Six Months Ended June 30,
	2021		2020		2021		2020
	(Dollars In Millions)
Net investment income
Retail Life and Annuity	$	276	$	249	$	542	$	502
Acquisitions	400		413		799		829
Stable Value Products	68		52		131		115
Asset Protection	5		6		11		14
Corporate and Other	(7)		22		(21)		36
Total net investment income	$	742	$	742	$	1,462	$	1,496

Amortization of DAC and VOBA
Retail Life and Annuity	$	20	$	7	$	107	$	(7)
Acquisitions	1		(42)		3		10
Stable Value Products	1		1		2		2
Asset Protection	15		15		30		30
Corporate and Other	—		—		—		—
Total amortization of DAC and VOBA	$	37	$	(19)	$	142	$	35


	Operating Segment Assets
	As of June 30, 2021
	(Dollars In Millions)
	Retail Life & Annuity		Acquisitions		Stable Value Products
Investments and other assets	$	43,019	$	55,422	$	7,328
DAC and VOBA	2,633		825		13
Other intangibles	350		31		6
Goodwill	559		24		114
Total assets	$	46,561	$	56,302	$	7,461


	Asset Protection		Corporate and Other		Total Consolidated
Investments and other assets	$	948	$	18,298	$	125,015
DAC and VOBA	174		—		3,645
Other intangibles	95		35		517
Goodwill	129		—		826
Total assets	$	1,346	$	18,333	$	130,003


	Operating Segment Assets
	As of December 31, 2020
	(Dollars In Millions)
	Retail Life & Annuity		Acquisitions		Stable Value Products
Investments and other assets	$	39,874	$	55,628	$	5,928
DAC and VOBA	2,480		762		8
Other intangibles	367		33		6
Goodwill	559		24		114
Total assets	$	43,280	$	56,447	$	6,056


	Asset Protection		Corporate and Other		Total Consolidated
Investments and other assets	$	881	$	19,813	$	122,124
DAC and VOBA	170		—		3,420
Other intangibles	101		33		540
Goodwill	129		—		826
Total assets	$	1,281	$	19,846	$	126,910