Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2023

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

Shareholders’ equity included the following activity in accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2023		2022		2023		2022
Net unrealized investment gains (losses):
Beginning of period balance	$	(1,113)	$	(1,199)	$	(1,519)	$	778
Adoption of new accounting standard ($0, $0, $0, $26 pretax) (1)	—		—		—		20
Other comprehensive loss before reclassifications ($(475), $(814), $(310), $(3,361) pretax)	(478)		(725)		(313)		(2,852)
Amounts reclassified from accumulated other comprehensive income (loss) ($157, $99, $398, $253 pretax) (2)	157		88		398		218
Other comprehensive income (loss)	(321)		(637)		85		(2,634)
End of period balance	(1,434)		(1,836)		(1,434)		(1,836)

Change in discount rate on long-duration insurance reserves:
Beginning of period balance	205		28		219		—
Adoption of new accounting standard ($0, $0, $0, $(838) pretax) (1)	—		—		—		(651)
Other comprehensive income before reclassifications ($233, $321, $210, $1,195 pretax)	181		250		167		929
Other comprehensive income	181		250		167		929
End of period balance	386		278		386		278

Foreign currency translation adjustments:
Beginning of period balance	1		2		—		—
Other comprehensive loss before reclassifications	(2)		(7)		(1)		(5)

Other comprehensive loss	(2)		(7)		(1)		(5)
End of period balance	(1)		(5)		(1)		(5)

Net cash flow hedges:
Beginning of period balance	252		234		239		222
Other comprehensive income before reclassifications ($0, $13, $25, $37 pretax)	—		10		19		28
Amounts reclassified from accumulated other comprehensive income ($(5), $(2), $(13), $(10) pretax) (3)	(4)		(2)		(10)		(8)
Other comprehensive income (loss)	(4)		8		9		20
End of period balance	248		242		248		242

Pension and other postretirement benefits:
Beginning of period balance	(203)		(34)		(203)		(35)

Amounts reclassified from accumulated other comprehensive loss ($0, $1, $0, $2 pretax) (4)	—		1		—		2
Other comprehensive income	—		1		—		2
End of period balance	(203)		(33)		(203)		(33)

Total beginning of period accumulated other comprehensive income (loss)	(858)		(969)		(1,264)		965
Adoption of new accounting standard (1)	—		—		—		(631)
Total other comprehensive income (loss)	(146)		(385)		260		(1,688)
Total end of period accumulated other comprehensive loss	$	(1,004)	$	(1,354)	$	(1,004)	$	(1,354)

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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 nine months ended September 30, 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 $15 million net of tax, in net gains associated with its cash flow hedges into net income within the next 12 months.

(4)Amounts reclassified from accumulated other comprehensive loss for specifically identified pension and other postretirement benefits are included in other income in the unaudited condensed consolidated statements of operations.