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SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
Adoption of New Accounting Pronouncements
Description
Effect on the Financial Statement or Other Significant Matters
ASU 2018-12: Financial Services - Insurance (Topic 944)
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including:
1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts.

2. Measurement of Market Risk Benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk.

3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts.

4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement.
On January 1, 2023, the Company adopted the new accounting standard ASU 2018-12 using the modified retrospective approach, except for MRBs which will use the full retrospective approach.

Refer to “Transition impact of ASU 2018-12, Financial Services- Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” section within this note for further details.
The following table presents the effect of transition adjustment to total equity resulting from the adoption of ASU 2018-12 as of January 1, 2021:
Retained EarningsAccumulated Other Comprehensive IncomeTotal
(in millions)
Liability for future policy benefits (1)$— $— $— 
Market risk benefits2 (1)1 
DAC— 110 110 
Unearned revenue liability and sales inducement assets (1)— (37)(37)
Total transition adjustment before taxes2 72 74 
Income taxes(1)(15)(16)
Total adjustment (net of taxes)$1 $57 $58 
______________
(1)Unearned revenue liability included within liability for future policy benefits financial statement line item in the balance sheet. Sales inducement assets are included in other assets in the balance sheets.
Schedule of Deferred Policy Acquisition Costs
The following table summarizes the balance of and changes in DAC on January 1, 2021 resulting from the adoption of ASU 2018-12:
Variable Universal LifeIndexed Universal LifeTotal
(in millions)
Balance, December 31, 2020$230 $247 $477 
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income70 40 110 
Balance, January 1, 2021$300 $287 $587 
Changes in the DAC asset for the years ended December 31, 2022 and 2021 were as follows:
December 31, 2022VUL (1)IUL (2)GMxB CoreInvestment
Edge		SCSMomentumTotal
(in millions)
Balance beginning of the year$361 $297 $14 $— $— $— $672 
Capitalization 70 16 28 1 13 — 128 
Amortization (3)
(21)(17)(2)— — — (40)
Balance, December 31, 2022$410 $296 $40 $1 $13 $— $760 
______________
(1)    “VUL” defined as Variable Universal Life.
(2)    “IUL” defined as Indexed Universal Life.
(3)     DAC amortization of $1 million related to Other not reflected in table above.

December 31, 2021VUL (1)IUL (2)GMxB CoreInvestment
Edge		SCSMomentumTotal
(in millions)
Balance beginning of the year$300 $287 $— $— $— $— $587 
Capitalization 79 27 14 — — — 120 
Amortization (3)
(18)(17)— — — — (35)
Balance, December 31, 2021$361 $297 $14 $— $— $— $672 
______________
(1)    “VUL” defined as Variable Universal Life.
(2)    “IUL” defined as Indexed Universal Life.
(3)     DAC amortization of $1 million related to Other not reflected in table above.


Prior to the Company’s adoption of ASU 2018-12 effective January 1, 2021, changes in the DAC asset for the year ended 2020 were as follows:
 Year Ended December 31,
 2020
(in millions)
Balance, beginning of year$471 
Capitalization of commissions, sales and issue expenses95 
Amortization:
Impact of assumptions updates and model changes(8)
All other(23)
Total amortization(31)
Change in unrealized investment gains and losses(58)
Balance, end of year$477 


Changes in the Sales Inducement Assets for the years ended December 31, 2022 and 2021 were as follows:
December 31, 2022December 31, 2021
GMxB CoreGMxB Core
(in millions)
Balance beginning of the year$— $— 
Capitalization1 — 
Amortization— — 
Balance, end of the year$1 $— 

Changes in the Unearned Revenue Liability for the years ended December 31, 2022, and 2021 were as follows:
December 31, 2022December 31, 2021
VULIULVULIUL
(in millions)
Balance beginning of the year$118 $94 $85 $24 
Capitalization49 71 40 74 
Amortization(8)(8)(7)(4)
Balance, end of the year$159 $157 $118 $94 
Deferred Income
The following table summarizes the balance of and changes in sales inducement assets and unearned revenue liability on January 1, 2021 resulting from the adoption of ASU 2018-12:
Variable Universal LifeIndexed Universal LifeTotal
(in millions)
Balance, December 31, 2020$55 $14 $69 
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income28 9 37 
Balance, January 1, 2021$83 $23 $106