Equity

3 Months Ended

Mar. 31, 2021

EQUITY

Accumulated Other Comprehensive Income (Loss)

AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Unaudited Interim Statements of Operations and Comprehensive Income (Loss). The balance of and changes in each component of AOCI as of and for the three months ended March 31, 2021 and 2020 are as follows:


	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment		Net Unrealized Investment Gains (Losses)(1)		Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2020	$	(708)	$	1,533,767	$	1,533,059
Change in OCI before reclassifications	49		(694,704)		(694,655)
Amounts reclassified from AOCI	0		(1,093,820)		(1,093,820)
Income tax benefit (expense)	(10)		375,590		375,580
Balance, March 31, 2021	$	(669)	$	120,833	$	120,164


	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment		Net Unrealized Investment Gains (Losses)(1)		Total Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance, December 31, 2019	$	(934)	$	429,546	$	428,612
Change in OCI before reclassifications	(483)		1,309,567		1,309,084
Amounts reclassified from AOCI	0		(29,479)		(29,479)
Income tax benefit (expense)	102		(268,819)		(268,717)
Balance, March 31, 2020	$	(1,315)	$	1,440,815	$	1,439,500

(1)Includes cash flow hedges of $(40) million and $(43) million as of March 31, 2021 and December 31, 2020, respectively, and $103 million and $0 million as of March 31, 2020 and December 31, 2019, respectively.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)


	Three Months Ended March 31,
		2021		2020
		(in thousands)
Amounts reclassified from AOCI(1)(2):
Net unrealized investment gains (losses):
Cash flow hedges—Currency/ Interest rate(3)		$	12,316	$	23,057
Net unrealized investment gains (losses) on available-for-sale securities		1,081,504		6,422
Total net unrealized investment gains (losses)(4)		1,093,820		29,479
Total reclassifications for the period		$	1,093,820	$	29,479

(1)All amounts are shown before tax.

(2)Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.

(3)See Note 4 for additional information on cash flow hedges.

(4)See table below for additional information on unrealized investment gains (losses), including the impact on DAC and other costs and future policy benefits and other liabilities.

Net Unrealized Investment Gains (Losses)

Net unrealized investment gains (losses) on available-for-sale fixed maturity securities and certain other invested assets and other assets are included in the Company’s Unaudited Interim Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to net unrealized investment gains (losses) on available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows:


	Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized		Net Unrealized Gains (Losses) on All Other Investments(1)		DAC and Other Costs(2)		Future Policy Benefits and Other Liabilities(3)		Deferred Income Tax (Liability) Benefit		Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in thousands)
Balance, December 31, 2020	$	2	$	2,369,107	$	(363,429)	$	(63,159)	$	(408,754)	$	1,533,767
Net investment gains (losses) on investments arising during the period	8		(963,933)		0		0		202,424		(761,501)
Reclassification adjustment for (gains) losses included in net income	0		(1,093,820)		0		0		229,702		(864,118)
Reclassification due to allowance for credit losses recorded during the period	35		(35)		0		0		0		0
Impact of net unrealized investment (gains) losses on DAC and other costs	0		0		233,899		0		(49,119)		184,780
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities	0		0		0		35,322		(7,417)		27,905
Balance, March 31, 2021	$	45	$	311,319	$	(129,530)	$	(27,837)	$	(33,164)	$	120,833

(1)Includes cash flow hedges. See Note 4 for information on cash flow hedges.

(2)"Other costs" primarily includes reinsurance recoverables, DSI and VOBA.

(3)"Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains.