Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Accumulated Other Comprehensive Income (Loss)

Shareholder’s equity included the following components of Accumulated Other Comprehensive Income (AOCI) as of the dates indicated:


	September 30,
	2020		2019
Fixed maturities, net of impairments	$	3,006	$	2,211

Derivatives(1)	127		159
DAC/VOBA and Sales inducements adjustment on available-for-sale securities	(837)		(593)
Premium deficiency reserve adjustment	(424)		(216)

Unrealized capital gains (losses), before tax	1,872		1,561
Deferred income tax asset (liability)	(265)		(199)
Unrealized capital gains (losses), after tax	1,607		1,362
Pension and other postretirement benefits liability, net of tax	3		4
AOCI	$	1,610	$	1,366

(1) Gains and losses reported in AOCI from hedge transactions that resulted in the acquisition of an identified asset are reclassified into earnings in the same period or periods during which the asset acquired affects earnings. As of September 30, 2020, the portion of the AOCI that is expected to be reclassified into earnings within the next twelve months is $22.

Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations were as follows for the periods indicated:

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)


	Nine Months Ended September 30, 2020
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	873		$	(184)	$	689



Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	20			(4)		16
DAC/VOBA and Sales inducements	(286)		(1)	60		(226)
Premium deficiency reserve adjustment	(213)			45		(168)
Change in unrealized gains/losses on available-for-sale securities	394			(83)		311

Derivatives:
Derivatives	27		(2)	(6)		21
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(17)			4		(13)
Change in unrealized gains/losses on derivatives	10			(2)		8

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	—			—		—
Change in pension and other postretirement benefits liability	(1)			—		(1)
Change in Other comprehensive income (loss)	$	403		$	(85)	$	318

(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.



	Three Months Ended September 30, 2019
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	540		$	(115)	$	425


Impairments	—			—		—
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	(44)			10		(34)
DAC/VOBA and Sales inducements	(134)			28		(106)
Premium deficiency reserve adjustment	(98)			21		(77)
Change in unrealized gains/losses on available-for-sale securities	264			(56)		208

Derivatives:
Derivatives	27		(1)	(6)		21
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(5)			1		(4)
Change in unrealized gains/losses on derivatives	22			(5)		17

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	—			1		1
Change in pension and other postretirement benefits liability	—			1		1
Change in Other comprehensive income (loss)	$	286		$	(60)	$	226

(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.


	Nine Months Ended September 30, 2019
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	2,114		$	(444)	$	1,670


Impairments	1			—		1
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	(31)			7		(24)
DAC/VOBA and Sales inducements	(520)		(1)	109		(411)
Premium deficiency reserve adjustment	(165)			35		(130)
Change in unrealized gains/losses on available-for-sale securities	1,399			(293)		1,106

Derivatives:
Derivatives	36		(2)	(8)		28
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(17)			4		(13)
Change in unrealized gains/losses on derivatives	19			(4)		15

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1)			1		—
Change in pension and other postretirement benefits liability	(1)			1		—
Change in Other comprehensive income (loss)	$	1,417		$	(296)	$	1,121

(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.