REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Changes and Error Corrections [Abstract]

Schedule of Prior Period Financial Statements Affected by Revision

The following tables present line items for the previously issued September 30, June 30 and March 31, 2023 interim 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. The following interim financial statements are unaudited.

	March 31, 2023
	As Previously Reported	Adjustments	As Revised
	(in millions)
(unaudited)
Balance Sheets
Other assets	131	1	132
Assets for Market Risk Benefits	17	(2)	15
Total Assets	10,164	(1)	10,163
Liability for Market Risk Benefits	14	2	16
Total Liabilities	9,789	2	9,791
Accumulated deficit	(157)	(3)	(160)
Total Equity	375	(3)	372
Total Liabilities and Equity	10,164	(1)	10,163

	Three Months Ended March 31, 2023
	As Previously Reported	Adjustments	As Revised
(unaudited)	(in millions)
Statements of Income (Loss)
Benefits and other deductions
Change in Market Risk Benefits and Purchased Market Risk Benefits	—	1	1
Total benefits and deductions	180	1	181
Income (loss) from continuing operations, before income taxes	(9)	(1)	(10)
Net income (loss) from continuing operations	63	(1)	62
Net income (loss)	63	(1)	62

	Three Months Ended March 31, 2023
	As Previously Reported		Adjustments		As Revised
	(in millions)
(unaudited)
Statements of Comprehensive Income (Loss)
Net income (loss)	$	63	$	(1)	$	62
Changes in market risk benefits - instrument-specific credit risk	5		(1)		4
Other comprehensive income	80		(1)		79
Comprehensive income (loss)	143		(2)		141

	Three Months Ended March 31, 2023
	As Previously Reported	Adjustments	As Revised
(unaudited)	(in millions)
Statements of Equity
Accumulated Deficit, beginning of year	(220)	(2)	(222)
Net income (loss)	63	(1)	62
Accumulated Deficit, end of year	(157)	(3)	(160)
Accumulated other comprehensive income (loss), beginning of year	(382)	1	(381)
Other comprehensive income (loss)	80	(1)	79
Accumulated other comprehensive income (loss), end of year	(302)	—	(302)
Total equity, end of year	375	(3)	372

	Three Months Ended March 31, 2023
	As Reported		Adjustments		As Revised
(unaudited)	(in millions)
Statement of Cash Flows
Cash flow from operating activities:
Net income (loss)	$	63	$	(1)	$	62
Change in Market Risk Benefits	—		$	1	1
Net cash provided by (used in) operating activities	(20)		$	—	(20)

	June 30, 2023
	As Previously Reported	Adjustments	As Revised
	(in millions)
(unaudited)
Balance Sheets
Funds withheld receivable	10,615	39	10,654
Reinsurance deposit assets	12,782	(26)	12,756
Current and deferred income taxes	151	(2)	149
Assets for Market Risk Benefits	26	(2)	24
Total Assets	37,721	9	37,730
Policyholders’ account balances	21,014	(125)	20,889
Liability for Market Risk Benefits	7,363	4	7,367
Future policy benefits and other policyholders’ liabilities	1,209	89	1,298
Other liabilities	2,124	7	2,131
Total Liabilities	36,324	(25)	36,299
Equity
Accumulated deficit	(143)	34	(109)
Total Equity	1,397	34	1,431
Total Liabilities and Equity	37,721	9	37,730

	Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
	As Previously Reported	Adjustments	As Revised	As Previously Reported	Adjustments	As Revised
(unaudited)	(in millions)
Statements of Income (Loss)
Policy charges and fee income	411	(1)	410	472	(1)	471
Premiums	112	20	132	181	20	201
Net derivative gains (losses)	(700)	1	(699)	(694)	1	(693)
Investment management and service fees	105	17	122	110	17	127
Total revenues	22	37	59	193	37	230
Benefits and other deductions
Policyholders' benefits	335	(57)	278	414	(57)	357
Remeasurement of Liability for Future Policy Benefits	1	(2)	(1)	—	(2)	(2)
Change in Market Risk Benefits and Purchased Market Risk Benefits	(862)	23	(839)	(862)	24	(838)
Commissions	90	(1)	89	121	(1)	120
Other operating costs and expenses	222	34	256	245	34	279
Total benefits and deductions	2	(3)	(1)	182	(2)	180
Income (loss) from continuing operations, before income taxes	20	40	60	11	39	50
Income tax (expense) benefit from continuing operations	(6)	(3)	(9)	66	(3)	63
Net income (loss) from continuing operations	14	37	51	77	36	113
Net income (loss)	14	37	51	77	36	113

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	As Previously Reported		Adjustments		As Revised		As Previously Reported		Adjustments		As Revised
(unaudited)	(in millions)
Statements of Comprehensive Income (Loss)
Net income (loss)	$	14	$	37	$	51	$	77	$	36	$	113
Comprehensive income (loss)	(29)		37		8		114		35		149

	Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
	As Previously Reported	Adjustments	As Revised	As Previously Reported	Adjustments	As Revised
(unaudited)	(in millions)
Statements of Equity
Accumulated Deficit, beginning of year	(157)	(3)	(160)	(220)	(2)	(222)
Net income (loss)	14	37	51	77	36	113
Accumulated Deficit, end of year	(143)	34	(109)	(143)	34	(109)
Accumulated other comprehensive income (loss), beginning of year	(302)	—	(302)	(382)	1	(381)
Other comprehensive income (loss)	(43)	—	(43)	37	(1)	36
Accumulated other comprehensive income (loss), end of year	(345)	—	(345)	(345)	—	(345)
	—	—	—	—	—	—
Total equity, end of year	1,397	34	1,431	1,397	34	1,431

	Six Months Ended June 30, 2023
	As Reported		Adjustments		As Revised
(unaudited)	(in millions)
Statement of Cash Flows
Cash flow from operating activities:
Net income (loss)	$	77	$	36	$	113
Policy charges and fee income	(472)		1		(471)
Net derivative (gains) losses	694		(1)		693
Remeasurement of liability for future policy benefits	—		(2)		(2)
Change in Market Risk Benefits	(862)		24		(838)
Future policy benefits	133		89		222
Funds Withheld	13		(174)		(161)
Current and deferred income taxes	(66)		3		(63)
Other, net	431		24		455
Net cash provided by (used in) operating activities	888		—		888

	September 30, 2023
	As Previously Reported	Adjustments	As Revised
(unaudited)	(in millions)
Balance Sheets
Funds withheld receivable	10,550	127	10,677
Reinsurance deposit assets	12,682	(19)	12,663
Current and deferred income taxes	131	(4)	127
Assets for Market Risk Benefits	24	(2)	22
Total Assets	39,861	102	39,963
Liability for Market Risk Benefits	6,731	(19)	6,712
Future policy benefits and other policyholders’ liabilities	1,352	98	1,450
Other liabilities	2,137	7	2,144
Total Liabilities	38,371	86	38,457
Retained earnings (accumulated deficit)	373	(2)	371
Accumulated other comprehensive income (loss)	(768)	18	(750)
Total Equity	1,490	16	1,506
Total Liabilities and Equity	39,861	102	39,963

	Three Months Ended September 30, 2023			Nine Months Ended September 30, 2023
	As Previously Reported	Adjustments	As Revised	As Previously Reported	Adjustments	As Revised
(unaudited)	(in millions)
Statements of Income (Loss)
Policy charges and fee income	410	1	411	882	—	882
Premiums	152	(20)	132	333	—	333
Net derivative gains (losses)	(340)	4	(336)	(1,034)	5	(1,029)
Investment management and service fees	143	(17)	126	253	—	253
Total revenues	502	(32)	470	695	5	700
Benefits and other deductions
Policyholders' benefits	244	17	261	658	(40)	618
Remeasurement of Liability for Future Policy Benefits	10	13	23	10	11	21
Change in Market Risk Benefits and Purchased Market Risk Benefits	(980)	(12)	(992)	(1,842)	12	(1,830)
Commissions	100	(1)	99	221	(2)	219
Other operating costs and expenses	210	(11)	199	455	23	478
Total benefits and deductions	(148)	6	(142)	34	4	38
Income (loss) from continuing operations, before income taxes	650	(38)	612	661	1	662
Income tax (expense) benefit from continuing operations	(134)	3	(131)	(68)	—	(68)
Net income (loss) from continuing operations	516	(35)	481	593	1	594
Net income (loss)	516	(35)	481	593	1	594

	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
	As Previously Reported		Adjustments		As Revised		As Previously Reported		Adjustments		As Revised
(unaudited)	(in millions)
Statements of Comprehensive Income (Loss)
Net income (loss)	$	516	$	(35)	$	481	$	593	$	1	$	594
Changes in market risk benefits - instrument-specific credit risk	(280)		18		(262)		(268)		18		(250)
Other comprehensive income	(423)		19		(404)		(386)		18		(368)
Comprehensive income (loss)	93		(16)		77		207		19		226

	Three Months Ended September 30, 2023			Nine Months Ended September 30, 2023
	As Previously Reported	Adjustments	As Revised	As Previously Reported	Adjustments	As Revised
(unaudited)	(in millions)
Statements of Equity
Accumulated Deficit, beginning of year	(143)	34	(109)	(220)	(2)	(222)
Net income (loss)	516	(35)	481	593	1	594
Accumulated Deficit, end of year	373	(2)	371	373	(2)	371
Other comprehensive income (loss)	(423)	19	(404)	(386)	18	(368)
Accumulated other comprehensive income (loss), end of year	(768)	18	(750)	(768)	18	(750)
Total equity, end of year	1,490	16	1,506	1,490	16	1,506

	Nine Months Ended September 30, 2023
	As Reported		Adjustments		As Revised
(unaudited)	(in millions)
Statement of Cash Flows
Cash flow from operating activities
Net income (loss)	$	593	$	1	$	594
Net derivative (gains) losses	1,034		(5)		1,029
Remeasurement of liability for future policy benefits\	10		11		21
Change in Market Risk Benefits	(1,842)		12		(1,830)
Future policy benefits	264		101		365
Funds Withheld\	(87)		(132)		(219)
Other, net	972		12		984
Net cash provided by (used in) operating activities	452		—		452