ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2021

Summary of Changes in the Accumulated Balances for Each Component of AOCI

The following tables summarize the changes in the accumulated balances for each component of accumulated other comprehensive income (loss) (“AOCI”) as of and for the three and nine months ended September 30, 2021 and 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, June 30, 2021	$	2,818	$	(5)	$	2,813
Other comprehensive income (loss) before reclassifications	(263)		(2)		(265)
Other comprehensive income (loss) on investments in net expected credit losses	(1)		—		(1)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(5)		1		(4)
Balance, September 30, 2021	$	2,549	$	(6)	$	2,543

Balance, December 31, 2020	$	3,556	$	(8)	$	3,548
Other comprehensive income (loss) before reclassifications	(967)		1		(966)
Other comprehensive income (loss) on investments in net expected credit losses	(1)				(1)
Amounts reclassified from accumulated other comprehensive income (loss)(1)	(39)		1		(38)

Balance, September 30, 2021	$	2,549	$	(6)	$	2,543


	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, June 30, 2020	$	2,233	$	(8)	$	2,225
Other comprehensive income (loss) before reclassifications	482		1		483
Other comprehensive income (loss) on investments in net expected credit losses	28		—		28
Amounts reclassified from accumulated other comprehensive income (loss)(1)	28		—		28

Balance, September 30, 2020	$	2,771	$	(7)	$	2,764

Balance, December 31, 2019	$	1,421	$	(8)	$	1,413
Other comprehensive income (loss) before reclassifications	1,264		(1)		1,263
Other comprehensive income (loss) on investments in net expected credit losses	26		—		26
Amounts reclassified from accumulated other comprehensive income (loss)(1)	60		2		62

Balance, September 30, 2020	$	2,771	$	(7)	$	2,764

(1) See Reclassifications Out of Accumulated Other Comprehensive Income (Loss) table below for details.
(2) Net unrealized gains reported in AOCI were offset by $(1.7) billion and $(2.0) billion as of September 30, 2021 and December 31, 2020, respectively, and $(1.6) billion and $(777) million as of September 30, 2020 and December 31, 2019, 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.

Schedule of Reclassifications Amounts Out of AOCI

The following tables summarize the reclassifications amounts out of AOCI for the three and nine months ended September 30, 2021 and 2020.

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)


		For The Three Months Ended September 30,				For The Nine Months Ended September 30,
Gains (losses) in net income:	Affected Line Item in the Consolidated Condensed Statements of Income	2021		2020		2021		2020
		(Dollars In Millions)

Derivative instruments	Benefits and settlement expenses, net of reinsurance ceded(1)	$	1	$	—	$	1	$	(3)
	Tax (expense) benefit	—		—		—		1
		$	1	$	—	$	1	$	(2)

Unrealized gains and losses on available-for-sale securities	Realized gains (losses) - investments	$	5	$	3	$	44	$	45
	Change in net expected credit losses - fixed maturities	—		(38)		5		(121)

	Tax (expense) benefit	(1)		7		(10)		16
		$	4	$	(28)	$	39	$	(60)

(1) See Note 5, Derivative Financial Instruments for additional information