REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2022

Accounting Changes and Error Corrections [Abstract]

REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company identified an error in its statement of cash flows for the years ended December 31, 2021 and 2020, respectively. Specifically, the Company incorrectly classified certain deposits and withdrawals of policyholders’ account balances as operating net cash inflows rather than financing net cash inflows. Management assessed the materiality of this error within previously issued financial statements based upon SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in Accounting Standards Codification ("ASC") 250, Accounting Changes and Error Corrections. As a result of this evaluation, management concluded the impact of the error to previously issued financial statements was not considered to be material. However, in order to correctly present the Statement of Cash Flows, management has elected to revise the impacted financial statements the next time such financial statements are filed which will be in connection with the filing of the Company’s Form 10-K for the year ended December 31, 2022.

There was no impact to the Company’s Balance Sheets, Statements of Income (loss), Statements of Comprehensive Income (loss) or Statements of Equity for any previous period.

The following tables present line items of such previously issued financial statements that are impacted by the error. For these line items, the tables detail the amounts as previously reported, the impact upon those line items due to the correction, and the amounts which will be presented in the Company’s Form 10-K for the year ended December 31, 2022.


	December 31, 2021						December 31, 2020
	As Reported		Adjustment		As Revised		As Reported		Adjustment		As Revised
	(in millions)
Statement of Cash Flows:

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:



















Reinsurance recoverable	19		(135)		(116)		19		(144)		(125)






Net cash provided by (used in) operating activities	$	(250)	$	(135)	$	(385)	$	(205)	$	(144)	$	(349)




























Cash flows from financing activities:
Policyholders’ account balances:
Deposits	$	776	$	(140)	$	636	$	712	$	(134)	$	578
Withdrawals	(364)		276		(88)		(357)		279		(78)

















Net cash provided by (used in) financing activities	$	415	$	135	$	550	$	667	$	144	$	811