EQUITY (Tables)

9 Months Ended

Sep. 30, 2022

The balance of and changes in each component of AOCI are as follows:


	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment		Changes in Own-Credit Risk Related to Insurance Liabilities		Net Unrealized Investment Gains (Losses)(1)		Total Accumulated Other Comprehensive Income (Loss)
	(in millions)
Balance, December 31, 2021 (Predecessor Company)	$	(1)	$	—	$	171	$	170
Change in OCI before reclassifications	—		—		(576)		(576)
Amounts reclassified from AOCI	—		—		15		15
Income tax benefit	—		—		118		118
Balance, March 31, 2022 (Predecessor Company)	$	(1)	$	—	$	(272)	$	(273)

Balance, April 1, 2022 (Successor Company)	$	—	$	—	$	—	$	—
Change in OCI before reclassifications	—		245		—		245

Income tax expense	—		(51)		—		(51)
Balance, June 30, 2022 (Successor Company)	$	—	$	194	$	—	$	194
Change in OCI before reclassifications	—		149		—		149

Income tax expense	—		(32)		—		(32)
Balance, September 30, 2022 (Successor Company)	$	—	$	311	$	—	$	311

(1)Includes cash flow hedges of $29 million and $25 million as of March 31, 2022 and December 31, 2021, respectively.


	Predecessor Company
	Accumulated Other Comprehensive Income (Loss)
	Foreign Currency Translation Adjustment		Net Unrealized Investment Gains (Losses)(1)		Total Accumulated Other Comprehensive Income (Loss)
	(in millions)
Balance, December 31, 2020	$	(1)	$	1,534	$	1,533
Change in OCI before reclassifications	—		(354)		(354)
Amounts reclassified from AOCI	—		(1,226)		(1,226)
Income tax benefit	—		332		332
Balance, September 30, 2021	$	(1)	$	286	$	285

(1)Includes cash flow hedges of $15 million and $(43) million as of September 30, 2021 and December 31, 2020, respectively.

Reclassification out of Accumulated Other Comprehensive Income

Reclassifications out of Accumulated Other Comprehensive Income (Loss)


	Predecessor Company
	Three Months Ended March 31,		Three Months Ended September 30,		Nine Months Ended September 30,
	2022		2021
	(in millions)
Amounts reclassified from AOCI(1)(2):
Net unrealized investment gains (losses):
Cash flow hedges—Currency/ Interest rate(3)	$	5	$	11	$	29
Net unrealized investment gains (losses) on available-for-sale securities	(20)		141		1,197
Total net unrealized investment gains (losses)(4)	(15)		152		1,226
Total reclassifications for the period	$	(15)	$	152	$	1,226

(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 6 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.

Other Net Unrealized Investment Gain Loss AOCI Roll Forward

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:


	Predecessor Company
	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)		Income Tax Benefit (Expense)		Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, December 31, 2021	$	—	$	240	$	(16)	$	(7)	$	(46)	$	171
Net investment gains (losses) on investments arising during the period	—		(591)		—		—		125		(466)
Reclassification adjustment for (gains) losses included in net income	—		15		—		—		(4)		11
Impact of net unrealized investment (gains) losses	—		—		9		6		(3)		12
Balance, March 31, 2022	$	—	$	(336)	$	(7)	$	(1)	$	72	$	(272)


	Predecessor Company
	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)		Income Tax Benefit (Expense)		Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, December 31, 2020	$	—	$	2,369	$	(363)	$	(63)	$	(409)	$	1,534
Net investment gains (losses) on investments arising during the period	2		(742)		—		—		156		(584)
Reclassification adjustment for (gains) losses included in net income	(2)		(1,224)		—		—		257		(969)
Reclassification due to allowance for credit losses recorded during the period	—		—		—		—		—		—


Impact of net unrealized investment (gains) losses	—		—		325		61		(81)		305
Balance, September 30, 2021	$	—	$	403	$	(38)	$	(2)	$	(77)	$	286

(1)Includes cash flow hedges. See Note 6 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.