OPERATING SEGMENTS (Tables)

9 Months Ended

Sep. 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 September 30,				For The Nine Months Ended September 30,
	2021		2020		2021		2020
	(Dollars In Millions)
Revenues
Retail Life and Annuity	$	740	$	757	$	2,125	$	1,808
Acquisitions	749		802		2,282		2,399
Stable Value Products	106		48		275		137
Asset Protection	66		68		205		209
Corporate and Other	(9)		49		(13)		80
Total revenues	$	1,652	$	1,724	$	4,874	$	4,633
Pre-tax Adjusted Operating Income (Loss)			s
Retail Life and Annuity	$	(85)	$	23	$	(63)	$	47
Acquisitions	42		65		255		238
Stable Value Products	63		20		128		61
Asset Protection	9		8		31		33
Corporate and Other	(26)		(35)		(120)		(108)
Pre-tax adjusted operating income (loss)	3		81		231		271
Non-operating income (loss)	56		79		156		(96)
Income before income tax	59		160		387		175
Income tax expense	(10)		(29)		(74)		(31)
Net income	$	49	$	131	$	313	$	144

Pre-tax adjusted operating income (loss)	$	3	$	81	$	231	$	271
Adjusted operating income tax expense	1		(13)		(41)		(52)
After-tax adjusted operating income (loss)	4		68		190		219
Non-operating income (loss)	56		79		156		(96)
Income tax expense on adjustments	(11)		(16)		(33)		21
Net income	$	49	$	131	$	313	$	144

Non-operating income (loss)
Derivative gains (losses)	$	51	$	88	$	50	$	(152)
Investment gains (losses)	16		23		111		(72)
VA/VUL market impacts(1)	(6)		—		13		—
Less: related amortization(2)	31		55		93		(59)
Less: VA GLWB economic cost	(26)		(23)		(75)		(69)
Total non-operating income (loss)	$	56	$	79	$	156	$	(96)

(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 September 30,				For The Nine Months Ended September 30,
	2021		2020		2021		2020
	(Dollars In Millions)
Net investment income
Retail Life and Annuity	$	277	$	252	$	819	$	754
Acquisitions	393		406		1,192		1,235
Stable Value Products	97		54		228		169
Asset Protection	5		5		16		19
Corporate and Other	(19)		23		(40)		59
Total net investment income	$	753	$	740	$	2,215	$	2,236

Amortization of DAC and VOBA
Retail Life and Annuity	$	61	$	77	$	168	$	70
Acquisitions	11		14		14		24
Stable Value Products	2		1		4		3
Asset Protection	17		18		47		48
Corporate and Other	—		—		—		—
Total amortization of DAC and VOBA	$	91	$	110	$	233	$	145


	Operating Segment Assets
	As of September 30, 2021
	(Dollars In Millions)
	Retail Life & Annuity		Acquisitions		Stable Value Products
Investments and other assets	$	43,415	$	54,949	$	8,101
DAC and VOBA	2,690		851		16
Other intangibles	342		30		6
Goodwill	559		24		114
Total assets	$	47,006	$	55,854	$	8,237


	Asset Protection		Corporate and Other		Total Consolidated
Investments and other assets	$	928	$	17,771	$	125,164
DAC and VOBA	176		—		3,733
Other intangibles	92		34		504
Goodwill	129		—		826
Total assets	$	1,325	$	17,805	$	130,227


	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