Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2023

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

Shareholders’ equity included the following activity in accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
In millions	2023		2022
Net unrealized investment gains (losses):
Beginning of period balance	$	(1,519)	$	778
Adoption of new accounting standard ($0 and $26 pretax) (1)	—		20
Other comprehensive income (loss) before reclassifications ($340 and $(1,375) pretax)	339		(1,207)
Amounts reclassified from accumulated other comprehensive income (loss) ($131 and $77 pretax) (2)	131		75
Other comprehensive income (loss)	470		(1,132)
End of period balance	(1,049)		(334)
Change in discount rate on long-duration insurance reserves:
Beginning of period balance	219		—
Adoption of new accounting standard ($0 and $(838) pretax) (1)	—		(651)
Other comprehensive income (loss) before reclassifications ($(101) and $475 pretax)	(74)		369
Other comprehensive income (loss)	(74)		369
End of period balance	145		(282)
Foreign currency translation adjustments:
Beginning of period balance	—		—
Other comprehensive income (loss) before reclassifications	(1)		3
Other comprehensive income (loss)	(1)		3
End of period balance	(1)		3
Net cash flow hedges:
Beginning of period balance	239		222
Other comprehensive loss before reclassifications ($(5) and $0 pretax)	(4)		—
Amounts reclassified from accumulated other comprehensive income ($(3) and $(4) pretax) (3)	(2)		(3)
Other comprehensive loss	(6)		(3)
End of period balance	233		219
Pension and other postretirement benefits:
Beginning of period balance	(203)		(35)
Other comprehensive income	—		—
End of period balance	(203)		(35)
Total beginning of period accumulated other comprehensive income (loss)	(1,264)		965
Adoption of new accounting standard (1)	—		(631)
Total other comprehensive income (loss)	389		(763)
Total end of period accumulated other comprehensive loss	$	(875)	$	(429)

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(1)Reflects the adoption of ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts (Topic 944) during the three months ended March 31, 2023. See Note 1 ‘‘Significant Accounting Policies’’ for additional information.

(2)Amounts reclassified from accumulated other comprehensive income (loss) for specifically identified debt securities are included in net investment income in the unaudited condensed consolidated statements of operations.

(3)Amounts reclassified from accumulated other comprehensive income for specifically identified cash flow hedges are included in interest expense in the unaudited condensed consolidated statements of operations. The Company expects to reclassify approximately $14 million, net of tax, in net gains associated with its cash flow hedges into net income within the next 12 months.