Segment Information

9 Months Ended

Sep. 30, 2022

Segment Information [Abstract]

Segment Information

15. Segment Information

We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. A discussion of these segments and Other Operations is found in Note 21 to the Consolidated Financial Statements in our 2021 Form 10-K.

Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

Realized gains and losses associated with the following (“excluded realized gain (loss)”):

Sales or disposals and impairments of financial assets;

Changes in the fair value of equity securities;

Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”);

Changes in the fair value of the derivatives we own to hedge our GDB riders within our variable annuities;

Changes in the fair value of the embedded derivatives of our GLB riders reflected within variable annuity net derivative results accounted for at fair value;

Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results; and

Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”);

Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders and VUL products with secondary guarantees (“benefit ratio unlocking”);

Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

Gains (losses) on modification or early extinguishment of debt;

Losses from the impairment of intangible assets;

Income (loss) from discontinued operations;

Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; and

Income (loss) from the initial adoption of new accounting standards, regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act.

Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:

Excluded realized gain (loss);

Revenue adjustments from the initial adoption of new accounting standards;

Amortization of DFEL arising from changes in benefit ratio unlocking; and

Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

The tables below reconcile our segment measures of performance to the GAAP measures presented in our Consolidated Statements of Comprehensive Income (Loss) (in millions):

	For the Three					For the Nine
	Months Ended					Months Ended
	September 30,					September 30,
	2022			2021		2022			2021
Revenues
Operating revenues:
Annuities	$	1,183		$	1,267	$	3,583		$	3,720
Retirement Plan Services		316			328		949			989
Life Insurance		1,762			2,325		5,387			6,293
Group Protection		1,333			1,243		3,959			3,743
Other Operations		36			42		111			125
Excluded realized gain (loss), pre-tax		171			36		618			(245	)
Amortization of DFEL associated with benefit ratio
unlocking, pre-tax		(3	)		-		(18	)		2
Total revenues	$	4,798		$	5,241	$	14,589		$	14,627

	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
Net Income (Loss)
Income (loss) from operations:
Annuities	$	449		$	338		$	1,007		$	951
Retirement Plan Services		52			60			161			178
Life Insurance		(2,160	)		93			(1,988	)		455
Group Protection		37			(32	)		55			(12	)
Other Operations		(113	)		(152	)		(285	)		(307	)
Excluded realized gain (loss), after-tax		134			29			487			(193	)
Benefit ratio unlocking, after-tax		(339	)		(12	)		(1,036	)		119
Gain (loss) on modification or early extinguishment
of debt, after-tax		-			(6	)		-			(6	)
Impairment of intangibles		(634	)		-			(634	)		-
Net income (loss)	$	(2,574	)	$	318		$	(2,233	)	$	1,185

‎

Other segment information (in millions) was as follows:

		As of			As of
	September 30,			December 31,
		2022			2021
Assets
Annuities		$	161,456		$	201,732
Retirement Plan Services			40,858			47,625
Life Insurance			92,050			105,208
Group Protection			9,862			10,522
Other Operations			20,457			22,214
Total assets		$	324,683		$	387,301