Shareholders' Equity

6 Months Ended

Jun. 30, 2021

The following tables provide the amounts related to each component of OCI:


	Three Months Ended June 30,
	2021						2020
	Pretax		Income Tax Benefit (Expense)		Net of Tax		Pretax		Income Tax Benefit (Expense)		Net of Tax
	(in millions)
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period (1)	$	336	$	(65)	$	271	$	1,532	$	(329)	$	1,203
Reclassification of net (gains) losses on securities included in net income (2)	(1)		—		(1)		(4)		1		(3)
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables	(163)		34		(129)		(637)		134		(503)
Net unrealized gains (losses) on securities	172		(31)		141		891		(194)		697






Foreign currency translation	2		—		2		(8)		—		(8)

Total other comprehensive income (loss)	$	174	$	(31)	$	143	$	883	$	(194)	$	689


	Six Months Ended June 30,
	2021						2020
	Pretax		Income Tax Benefit (Expense)		Net of Tax		Pretax		Income Tax Benefit (Expense)		Net of Tax
	(in millions)
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period (1)	$	(354)	$	87	$	(267)	$	337	$	(65)	$	272
Reclassification of net (gains) losses on securities included in net income (2)	(51)		11		(40)		4		(1)		3
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables	137		(29)		108		(129)		27		(102)
Net unrealized gains (losses) on securities	(268)		69		(199)		212		(39)		173





Defined benefit plans	37		(8)		29		—		—		—
Foreign currency translation	1		—		1		(42)		1		(41)

Total other comprehensive income (loss)	$	(230)	$	61	$	(169)	$	170	$	(38)	$	132

(1) Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period.

(2) Reclassification amounts are recorded in net investment income.

Other comprehensive income (loss) related to net unrealized gains (losses) on securities includes three components: (i) unrealized gains (losses) that arose from changes in the fair value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit impairments to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.

The following tables present the changes in the balances of each component of AOCI, net of tax:


	Net Unrealized Gains (Losses) on Securities		Net Unrealized Gains (Losses) on Derivatives		Defined Benefit Plans		Foreign Currency Translation		Other		Total
	(in millions)
Balance, April 1, 2021	$	643	$	5	$	(175)	$	(155)	$	(1)	$	317

OCI before reclassifications	142		—		—		2		—		144
Amounts reclassified from AOCI	(1)		—		—		—		—		(1)
Total OCI	141		—		—		2		—		143
Balance, June 30, 2021	$	784	$	5	$	(175)	$	(153)	$	(1)	$	460

Balance, January 1, 2021	$	983	$	5	$	(204)	$	(154)	$	(1)	$	629

OCI before reclassifications	(159)		—		29		1		—		(129)
Amounts reclassified from AOCI	(40)		—		—		—		—		(40)
Total OCI	(199)		—		29		1		—		(169)
Balance, June 30, 2021	$	784	$	5	$	(175)	$	(153)	$	(1)	$	460


	Net Unrealized Gains (Losses) on Securities		Net Unrealized Gains (Losses) on Derivatives		Defined Benefit Plans		Foreign Currency Translation		Other		Total
	(in millions)
Balance, April 1, 2020	$	52	$	6	$	(138)	$	(214)	$	(1)	$	(295)

OCI before reclassifications	700		—		—		(8)		—		692
Amounts reclassified from AOCI	(3)		—		—		—		—		(3)
Total OCI	697		—		—		(8)		—		689
Balance, June 30, 2020	$	749	$	6	$	(138)	$	(222)	$	(1)	$	394

Balance, January 1, 2020	$	576	$	6	$	(138)	$	(181)	$	(1)	$	262

OCI before reclassifications	170		—		—		(41)		—		129
Amounts reclassified from AOCI	3		—		—		—		—		3
Total OCI	173		—		—		(41)		—		132
Balance, June 30, 2020	$	749	$	6	$	(138)	$	(222)	$	(1)	$	394

For the six months ended June 30, 2021 and 2020, the Company repurchased a total of 3.4 million shares and 4.3 million shares, respectively, of its common stock for an aggregate cost of $813 million and $637 million, respectively. In August 2020, the Company’s Board of Directors authorized a repurchase of up to $2.5 billion for the repurchase of shares of the Company’s common stock through September 30, 2022. As of June 30, 2021, the Company had $1.5 billion remaining under the share repurchase authorization.

The Company may also reacquire shares of its common stock under its share-based compensation plans related to restricted stock awards and certain option exercises. The holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligation. These vested restricted shares are reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase.

For the six months ended June 30, 2021 and 2020, the Company reacquired 0.3 million shares and 0.3 million shares, respectively, of its common stock through the surrender of shares upon vesting and paid in the aggregate $58 million and $47 million, respectively, related to the holders’ income tax obligations on the vesting date. Option holders may elect to net settle their vested awards resulting in the surrender of the number of shares required to cover the strike price and tax obligation of the options exercised. These shares are reacquired by the Company and recorded as treasury shares. For the six months ended June 30, 2021 and 2020, the Company reacquired 0.8 million shares and 0.6 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $167 million and $110 million, respectively.

During the six months ended June 30, 2021 and 2020, the Company reissued 0.4 million and 0.5 million, respectively, treasury shares for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.