REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2023

Accounting Changes and Error Corrections [Abstract]

REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company identified certain errors in its previously issued September 30 and June 30, 2023 interim financial statements primarily related to the initial and ongoing recording for the Reinsurance Treaty. Management evaluated these errors in accordance with SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in Accounting Standards Codification ("ASC" 250, Accounting Changes and Error Corrections) and concluded they were not material to any previously reported quarterly financial statements. However, in order to improve the consistency and comparability of the financial statements, management will revise the financial statements and related disclosures to correct these errors in future interim filings. As part of correcting the errors associated with the Reinsurance Treaty, other immaterial errors, including coding errors impacting the inforce used to calculate actuarial reserves, which were previously recorded as out of period misstatements in previously issued 2023 interim financial statements were also corrected and properly reflected in the financial statements as of and for the period ended December 31, 2022. Impacted financial statements include the previously issued September 30, June 30 and March 31, 2023 interim financial statements and December 31, 2022 annual financial statements

The following tables present line items for the December 31, 2022 annual financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact of the errors, and the amounts as revised.

	December 31, 2022
	As Previously Reported	Adjustments	As Revised
Balance Sheets
Current and deferred income taxes	76	1	77
Assets for Market Risk Benefits	12	(1)	11
Total Assets	8,226	—	8,226
Liability for Market Risk Benefits	15	1	16
Total Liabilities	7,994	1	7,995
Accumulated deficit	(220)	(2)	(222)
Accumulated other comprehensive income (loss)	(382)	1	(381)
Total Equity	232	(1)	231
Total Liabilities and Equity	8,226	—	8,226

	Twelve Months Ended December 31, 2022
	As Previously Reported	Adjustments	As Revised
Statements of Income (Loss)
Benefits and other deductions
Change in Market Risk Benefits and Purchased Market Risk Benefits	(15)	3	(12)
Total benefits and deductions	650	3	653
Income (loss) from continuing operations, before income taxes	(107)	(3)	(110)
Income tax (expense) benefit from continuing operations	21	1	22
Net income (loss) from continuing operations	(86)	(2)	(88)
Net income (loss)	(86)	(2)	(88)

	Twelve Months Ended December 31, 2022
	As Previously Reported		Adjustments		As Revised
Statements of Comprehensive Income (Loss)
Net income (loss)	$	(86)	$	(2)	$	(88)
Change in unrealized gains (losses), net of reclassification adjustment	(481)		1		(480)
Other comprehensive income	(480)		1		(479)
Comprehensive income (loss)	(566)		(1)		(567)

	Years Ended December 31, 2022
	As Previously Reported	Adjustments	As Revised
Statements of Equity
Accumulated Deficit, beginning of year	(134)	—	(134)
Net income (loss)	(86)	(2)	(88)
Accumulated Deficit, end of year	(220)	(2)	(222)
Accumulated other comprehensive income (loss), beginning of year	98	—	98
Other comprehensive income (loss)	(480)	1	(479)
Accumulated other comprehensive income (loss), end of year	(382)	1	(381)
Total equity, end of year	232	(1)	231

	Year Ended December 31, 2022
	As Reported		Adjustments		As Revised
Statement of Cash Flows
Cash flow from operating activities
Net income (loss)	$	(86)	$	(2)	$	(88)
Change in Market Risk Benefits	(15)		3		(12)
Current and deferred income taxes	(21)		(1)		(22)
Net cash provided by (used in) operating activities	(352)		—		(352)

The Company will also revise previously reported quarterly and year-to-date interim financial information from previously issued September 30, June 30 and March 31, 2023 interim financial statements for these errors in its future interim filings.