FAIR VALUE OF ASSETS AND LIABILITIES - PREDECESSOR COMPANY (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The table below present the balances of assets and liabilities reported at fair value on a recurring basis:

	Successor Company
	December 31, 2022
	Level 1		Level 2		Level 3		Netting(1)		Total
	(in millions)
Total Business
Assets
Fixed Maturity Securities
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	—	$	696	$	—	$	—	$	696
Obligations of U.S. states and their political subdivisions	—		166		—		—		166
Foreign government bonds	—		5		—		—		5
U.S. corporate public securities	—		2,796		—		—		2,796
U.S. corporate private securities	—		144		146		—		290
Foreign corporate public securities	—		211		—		—		211
Foreign corporate private securities	—		31		36		—		67
Asset-backed securities(2)	—		377		155		—		532
Commercial mortgage-backed securities	—		43		—		—		43
Residential mortgage-backed securities	—		218		—		—		218
Total Fixed Maturity Securities	$	—	$	4,687	$	337	$	—	$	5,024
Equity securities	175		—		—		—		175
Mortgage and other loans	—		—		196		—		196
Short-term investments	—		42		—		—		42
Cash and cash equivalents	872		—		—		—		872
Other invested assets(3)	46		621		—		(582)		85
Deposit asset	—		—		607		—		607
Reinsurance recoverables	—		—		235		—		235
Net modified coinsurance receivable	—		—		18		—		18
Subtotal excluding separate account assets	1,093		5,350		1,393		(582)		7,254
Separate account assets	—		23,601		—		—		23,601
Total assets	$	1,093	$	28,951	$	1,393	$	(582)	$	30,855
Liabilities
Insurance liabilities	—		—		5,546		—		5,546
Other liabilities - derivatives	—		1,076		—		(875)		201
Separate account liabilities	—		23,601		—		—		23,601
Total liabilities	$	—	$	24,677	$	5,546	$	(875)	$	29,348

(1)“Netting” amounts represent offsetting considerations as disclosed in Note 5.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At December 31, 2022, the fair values of such investments were $345 million. See Note 4 for further details.

The table below present the balances of assets and liabilities reported at fair value on a recurring basis for the Retained Business:

	Successor Company
	December 31, 2022
	Level 1		Level 2		Level 3		Netting(1)		Total
	(in millions)
Retained Business
Assets
Fixed Maturity Securities
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	—	$	582	$	—	$	—	$	582
Obligations of U.S. states and their political subdivisions	—		136		—		—		136
Foreign government bonds	—		—		—		—		—
U.S. corporate public securities	—		2,018		—		—		2,018
U.S. corporate private securities	—		—		146		—		146
Foreign corporate public securities	—		122		—		—		122
Foreign corporate private securities	—		—		36		—		36
Asset-backed securities(2)	—		358		155		—		513
Commercial mortgage-backed securities	—		43		—		—		43
Residential mortgage-backed securities	—		20		—		—		20
Total Fixed Maturity Securities	$	—	$	3,279	$	337	$	—	$	3,616
Mortgage and other loans	—		—		196		—		196
Short-term investments	—		3		—		—		3
Cash and cash equivalents	433		—		—		—		433
Other invested assets(3)	46		386		—		(347)		85
Subtotal excluding separate account assets	479		3,668		533		(347)		4,333
Separate account assets	—		21,558		—		—		21,558
Total assets	$	479	$	25,226	$	533	$	(347)	$	25,891
Liabilities
Insurance liabilities	—		—		2,941		—		2,941
Other liabilities - derivatives	—		602		—		(602)		—
Separate account liabilities	—		21,558		—		—		21,558
Total liabilities	$	—	$	22,160	$	2,941	$	(602)	$	24,499

(1)“Netting” amounts represent offsetting considerations as disclosed in Note 5.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)Other invested assets within the above chart are comprised of derivatives. Excluded from the above chart are private equity funds for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At December 31, 2022, the fair values of such investments were $344 million. See Note 4 for further details.

The table below present the balances of assets and liabilities reported at fair value on a recurring basis for the Ceded Business:

	Successor Company
	December 31, 2022
	Level 1		Level 2		Level 3		Netting(1)		Total
	(in millions)
Ceded Business
Assets
Fixed Maturity Securities
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	—	$	114	$	—	$	—	$	114
Obligations of U.S. states and their political subdivisions	—		30		—		—		30
Foreign government bonds	—		5		—		—		5
U.S. corporate public securities	—		778		—		—		778
U.S. corporate private securities	—		144		—		—		144
Foreign corporate public securities	—		89		—		—		89
Foreign corporate private securities	—		31		—		—		31
Asset-backed securities(2)	—		19		—		—		19
Commercial mortgage-backed securities	—		—		—		—		—
Residential mortgage-backed securities	—		198		—		—		198
Total Fixed Maturity Securities	$	—	$	1,408	$	—	$	—	$	1,408
Equity securities	175		—		—		—		175
Short-term investments	—		39		—		—		39
Cash and cash equivalents	439		—		—		—		439
Other invested assets(3)	—		235		—		(235)		—
Deposit asset	—		—		607		—		607
Reinsurance recoverables	—		—		235		—		235
Net modified coinsurance receivable	—		—		18		—		18
Subtotal excluding separate account assets	614		1,682		860		(235)		2,921
Separate account assets	—		2,043		—		—		2,043
Total assets	$	614	$	3,725	$	860	$	(235)	$	4,964
Liabilities
Insurance liabilities	—		—		2,605		—		2,605
Other liabilities - derivatives	—		473		—		(272)		201
Separate account liabilities	—		2,043		—		—		2,043
Total liabilities	$	—	$	2,516	$	2,605	$	(272)	$	4,849

(1)“Netting” amounts represent offsetting considerations as disclosed in Note 4.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)Other invested assets within the above chart are comprised of derivatives. Excluded from the above chart are private equity funds for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At December 31, 2022, the fair values of such investments were $1 million. See Note 4 for further details.

Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	Predecessor Company
	December 31, 2021
	Level 1		Level 2		Level 3		Netting (1)		Total
	(in millions)
Assets
Fixed maturities, available-for-sale:
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	—	$	727	$	—	$	—	$	727
Obligations of U.S. states and their political subdivisions	—		296		—		—		296
Foreign government bonds	—		114		—		—		114
U.S. corporate public securities	—		2,460		—		—		2,460
U.S. corporate private securities	—		1,556		89		—		1,645
Foreign corporate public securities	—		795		—		—		795
Foreign corporate private securities	—		791		101		—		892
Asset-backed securities(2)	—		1,039		23		—		1,062
Commercial mortgage-backed securities	—		674		32		—		706
Residential mortgage-backed securities	—		54		20		—		74
Total Fixed Maturity Securities, available-for-sale	$	—	$	8,506	$	265	$	—	$	8,771
Fixed maturities, trading	—		27		—		—		27
Equity securities	321		—		1		—		322
Short-term investments	519		263		13		—		795
Cash equivalents	372		1,359		8		—		1,739
Other invested assets(3)	1		1,477		—		(1,475)		3
Other assets	—		—		400		—		400
Reinsurance recoverables	—		—		1,881		—		1,881
Subtotal excluding separate account assets	$	1,213	$	11,632	$	2,568	$	(1,475)	$	13,938
Separate account assets(4)	—		32,267		—		—		32,267
Total assets	$	1,213	$	43,899	$	2,568	$	(1,475)	$	46,205
Liabilities
Future policy benefits(5)	—		—		4,060		—		4,060
Policyholders' account balances	—		—		2,041		—		2,041
Payables to parent and affiliates	—		1,367		—		(1,152)		215
Other liabilities	1		—		—		(1)		—
Total liabilities	$	1	$	1,367	$	6,101	$	(1,153)	$	6,316

(1)“Netting” amounts represent offsetting considerations as disclosed in Note 15. “Netting” amounts represent cash collateral of $321 million as of December 31, 2021.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At December 31, 2021, the fair values of such investments were $10.0 million.

(4)Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in Statements of Financial Position.

(5)As of December 31, 2021, the net embedded derivative liability position of $4,060 million includes $62 million of embedded derivatives in an asset position and $4,122 million of embedded derivatives in a liability position.

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement

The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	Successor Company
	December 31, 2022
	Fair Value		Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of  Increase in Input on Fair Value(1)
	(in millions)
Assets:
Retained business
U.S. corporate private securities	$	146	Discounted cash flow	Discount rate	4.75	%	8.03	%	6.56	%	Decrease
Foreign corporate public securities	36		Discounted cash flow	Discount rate	4.33	%	6.38	%	5.36	%	Decrease
Asset-backed securities	155		Discounted cash flow	Discount rate	7.19	%	8.51	%	7.94	%	Decrease
Mortgage and other loans
Residential mortgage loans	161		Level yield	Market yield	5.75		9.97		8.40		Increase
Commercial mortgage loans	35		Trade price	Trade price	N/A		N/A		N/A		Increase
Ceded business
Deposit asset	607		Fair values are determined using the same unobservable inputs as insurance liabilities.
Reinsurance recoverables	235		Fair values are determined using the same unobservable inputs as insurance liabilities.
Net modified coinsurance receivable	18		Fair values are determined using the same unobservable inputs as insurance liabilities.
Liabilities:
Retained business
Insurance liabilities (1)	$	2,941	Discounted cash flow	Lapse rate	1	%	20	%			Decrease
				Spread over risk-free	0.00	%	2.43	%			Decrease
				Utilization rate	92.5	%	100	%			Increase
				Withdrawal rate	See table footnote (2) below
				Mortality rate	0	%	16	%			Decrease
Ceded business				Equity volatility curve	19.5	%	26	%			Increase
Insurance liabilities (1)	$	2,605	Discounted cash flow	Lapse rate	1	%	20	%			Decrease
				Spread over risk-free	0.00	%	2.21	%			Decrease
				Utilization rate	92.5	%	100	%			Increase
				Withdrawal rate	See table footnote (2) below
				Mortality rate	0	%	16	%			Decrease
				Equity volatility curve	19.5	%	26	%			Increase

(1) See Note 7 - Insurance liabilities for further discussion regarding the unobservable inputs noted above.

(2) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2022, the minimum withdrawal rate assumption is 77% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.

	Predecessor Company
	December 31, 2021
	Fair Value		Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of  Increase in Input on Fair Value(1)
	(in millions)
Assets:
Corporate securities(2)	$	163	Discounted cash flow	Discount rate	2.34	%	10.17	%	2.82	%	Decrease
			Market Comparables	EBITDA multiples(3)	6.5	X	12.4	X	8.8	X	Increase
			Liquidation	Liquidation rate	62.58	%	62.58	%	62.58	%	Increase
Other assets	400		Fair values are determined using the same unobservable inputs as policyholders' account balances.
Reinsurance recoverables	1,881		Fair values are determined using the same unobservable inputs as future policy benefits and policyholders' account balances.
Liabilities:
Future policy benefits(4)	$	4,060	Discounted cash flow	Lapse rate(6)	1	%	20	%			Decrease
				Spread over LIBOR(7)	0.03	%	1.13	%			Decrease
				Utilization rate(8)	39	%	96	%			Increase
				Withdrawal rate	See table footnote (9) below.
				Mortality rate (10)	0	%	15	%			Decrease
				Equity volatility curve	16	%	25	%			Increase
Policyholders' account balances(6)	$	2,041	Discounted cash flow	Lapse rate(6)	1	%	42	%			Decrease
				Spread over LIBOR(7)	0.03	%	1.17	%			Decrease
				Equity volatility curve	6	%	31	%			Increase

(1)Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2)Includes assets classified as fixed maturity securities, available-for-sale and fixed maturity securities, trading as of December 31, 2021.

(3)Represents multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments.

(4)Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(5)Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s annuity products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.

(6)Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives.

(7)The spread over the SOFR and LIBOR swap curve represents the premium added to the proxy for the risk-free rate (SOFR/LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit

spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt.

(8)The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(9)The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2021, the minimum withdrawal rate assumption is 76% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(10)The range reflects the mortality rates for the vast majority of business with living benefits, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows:

Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value.

Insurance Liabilities, at fair value – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent that more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money.

Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities, by business segment, and in the aggregate. In addition, the following tables include the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.

	Successor Company
	Nine Months Ended December 31, 2022
	Fair Value, beginning of period		Total realized and unrealized gains (losses)		Purchases		Sales		Issuances		Settlements		Other		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period		Unrealized gains (losses) for assets still held(3)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	—	$	(6)	$	152	$	—	$	—	$	—	$	—	$	—	$	—	$	146	$	(6)
Foreign corporate private securities	—		(10)		46		—		—		—		—		—		—		36		(10)
Asset-backed securities	—		(5)		160		—		—		—		—		—		—		155		(5)
Mortgage and other loans
Residential mortgage loans	—		—		168		—		—		(7)		—		—		—		161		—
Commercial mortgage loans	—		—		35		—		—		—		—		—		—		35		—
Ceded Business
Secured receivable	1,622		(59)		22		(75)		—		—		(1,510)		—		—		—		—
Deposit asset	2,596		(117)		—		—		—		—		(1,872)		—		—		607		—
Reinsurance recoverables	250		(15)		—		—		—		—		—		—		—		235		—
Net modified coinsurance receivable	68		(50)		—		—		—		—		—		—		—		18		—

	Successor Company
	Nine Months Ended December 31, 2022
			Incurred losses
	Fair Value, beginning of period		Reduction in estimates of ultimate losses		Increase in estimates of ultimate losses		Change in fair value (discount rate)		Paid losses		Other		Fair Value, end of period
	(in millions)
Insurance liabilities
Retained Business	$	3,362	$	(632)	$	1,759	$	(1,863)	$	282	$	33	$	2,941
Ceded Business	10,249		(7,463)		177		(403)		33		12		2,605
Total Insurance liabilities	$	13,611	$	(8,095)	$	1,936	$	(2,266)	$	315	$	45	$	5,546

“Total realized and unrealized gains (losses)” related to our level 3 assets are included in earnings in Investment gains (losses). In addition, all activity related to our level 3 insurance liabilities are recognized in earnings within change in Policyholders' benefits and changes in fair value of insurance liabilities.

Change in Fair Value of Insurance Contracts

The components of the change in fair value of our insurance contracts are reported in several line items within Revenues and Benefits and expenses in our consolidated statements of operations and comprehensive income (loss). The revenue items include Premiums, Policy charges and fee income, and Asset management and service fees. The Benefits and expenses items include Policyholders' benefits and changes in fair value of insurance liabilities and commission expense. Policyholders' benefits and changes in fair value of insurance liabilities includes the following changes in fair value of the assets and liabilities for which we have elected the fair value option:

	December 31, 2022
	Retained Business		Ceded Business		Total
	(in millions)
Assets:
Reinsurance recoverables	$	—	$	(15)	$	(15)
Modified coinsurance receivable	—		(5,640)		(5,640)
Deposit asset	—		(1,989)		(1,989)
Liabilities:
Insurance liabilities	$	(421)	$	(7,644)	$	(8,065)

Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.

	Predecessor Company
	Three Months Ended March 31, 2022
	Fair Value, beginning of period		Total realized and unrealized gains (losses)(1)		Purchases		Sales		Issuances		Settlements		Other		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period		Unrealized gains (losses) for assets still held(3)
	(in millions)
Fixed maturities, available-for-sale:
U.S. government	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Corporate securities(4)	190		(9)		5		(4)		—		(2)		—		—		—		180		(9)
Structured securities(5)	76		(4)		—		(10)		—		(2)		—		—		(13)		47		(4)
Other assets:
Equity securities	1		—		—		—		—		—		—		—		—		1		—
Short term investments	13		—		—		—		—		(13)		—		—		—		—		—
Cash equivalents	8		—		—		—		—		(8)		—		—		—		—		—
Other assets	400		(21)		13		—		—		(16)		—		—		—		376		(6)
Reinsurance recoverables	1,881		201		4		—		—		19		(239)		—		—		1,866		222
Liabilities:
Future policy benefits	(4,060)		715		—		—		(48)		—		—		—		—		(3,393)		686
Policyholders' account balances(6)	(2,041)		124		—		—		—		(17)		—		—		—		(1,934)		89

	Predecessor Company
	Three Months Ended March 31, 2022
	Total realized and unrealized gains (losses)								Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)		Other income (loss)		Included in other comprehensive income (losses)		Net investment income		Realized investment gains (losses), net		Other income (loss)		Included in other comprehensive income (losses)
	(in millions)
Fixed maturities, available-for-sale	$	—	$	—	$	(12)	$	—	$	—	$	—	$	(12)
Other assets:
Other assets	(21)		—		—		—		(6)		—		—
Reinsurance recoverables	201		—		—		—		222		—		—
Liabilities:
Future policy benefits	715		—		—		—		686		—		—
Policyholders' account balances	124		—		—		—		89		—		—

	Predecessor Company
	Year Ended December 31, 2021
	Fair Value, beginning of period		Total realized and unrealized gains (losses)(1)		Purchases		Sales		Issuances		Settlements		Other(2)		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period		Unrealized gains (losses) for assets still held(3)
	(in millions)
Fixed maturities, available-for-sale:
U.S. Government	$	15	$	—	$	—	$	(15)	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Corporate Securities(4)	149		(4)		260		(11)		—		(55)		(158)		17		(8)		190		(5)
Structured Securities(5)	19		1		261		—		—		(8)		(33)		31		(195)		76		1
Other assets:
Fixed maturities, trading	5		—		2		—		—		—		—		—		(7)		—		—
Equity securities	4		—		—		—		—		—		(3)		—		—		1		1
Short-term investments	10		—		35		—		—		(32)		(1)		1		—		13		—
Cash equivalents	—		—		8		—		—		—		—		—		—		8		—
Other assets	54		(38)		15		—		—		(13)		382		—		—		400		12
Reinsurance recoverables	409		(153)		17		—		245		—		1,363		—		—		1,881		(136)
Liabilities:
Future policy benefits	(17,314)		13,934		—		—		(680)		—		—		—		—		(4,060)		1,425
Policyholders' account balances(6)	(580)		(1,075)		—		—		(386)		—		—		—		—		(2,041)		39

	Predecessor Company
	Year Ended December 31, 2021
	Total realized and unrealized gains (losses)								Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)		Other income (loss)		Included in other comprehensive income (losses)		Net investment income		Realized investment gains (losses), net		Other income (loss)		Included in other comprehensive income (losses)
	(in millions)
Fixed maturities, available-for-sale	$	(5)	$	—	$	1	$	—	$	(6)	$	—	$	1
Other assets:
Fixed maturities, trading	—		—		—		—		—		—		—
Equity securities	—		—		—		—		—		1		—
Short-term investments	—		—		—		—		—		—		—
Cash equivalents	—		—		—		—		—		—		—
Other assets	(38)		—		—		—		12		—		—
Reinsurance recoverables	(153)		—		—		—		(136)		—		—
Liabilities:
Future policy benefits	13,934		—		—		—		1,425		—		—
Policyholders' account balances	(1,075)		—		—		—		39		—		—

	Predecessor Company
	Year Ended December 31, 2020
	Total realized and unrealized gains (losses)								Unrealized gains (losses) for assets still held(3)
	Realized investment gains (losses), net(1)		Other income (loss)		Included in other comprehensive income (loss)		Net investment income		Realized investment gains (losses), net		Other income (loss)		Included in other comprehensive income (loss)
	(in millions)
Fixed maturities, available-for-sale	$	—	$	—	$	(2)	$	—	$	(1)	$	—	$	(7)
Other assets:
Fixed maturities, trading	—		1		—		—		—		1		—
Equity securities	—		—		—		—		—		1		—
Other assets	14		—		—		—		13		—		—
Reinsurance recoverables	89		—		—		—		97		—		—
Liabilities:
Future policy benefits	(4,340)		—		—		—		(4,711)		—		—
Policyholders' account balances	(202)		—		—		—		(168)		—		—

(1)Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 20 for impacts to Realized investments gains (losses), net related to the 2021 Variable Annuities Recapture and the Affiliated Reinsurance Agreement.

(2)“Other” represents noncash transfers related to the 2021 Variable Annuities Recapture and the Affiliated Reinsurance Agreement. Refer to Note 20 for additional information.

(3)Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.

(4)Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities.

(5)Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities.

(6)Issuances and settlements for Policyholders' account balances are presented net in the rollforward.

Fair Value, by Balance Sheet Grouping

	December 31, 2022
	Fair Value								Carrying Amount
	Level 1		Level 2		Level 3		Total		Total
	(in millions)
Assets:
Accrued investment income	$	—	$	52	$	—	$	52	$	52
Other invested assets - Policy loans	—		—		11		11		11
Liabilities:
Repurchase agreements	$	—	$	311	$	—	$	311	$	311
Cash collateral for loaned securities	—		106		—		106		106

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Consolidated Statements of Financial Position. In some cases the carrying amount equals or approximates fair value.

	Predecessor Company
	December 31, 2021
	Fair Value								Carrying Amount(1)
	Level 1		Level 2		Level 3		Total		Total
	(in millions)
Assets:
Commercial mortgage and other loans	$	—	$	—	$	1,516	$	1,516	$	1,504
Policy loans	—		—		12		12		12
Short-term investments	81		—		—		81		81
Cash and cash equivalents	277		—		—		277		277
Accrued investment income	—		61		—		61		61
Reinsurance recoverables	—		—		9		9		8
Receivables from parent and affiliates	—		5		—		5		5
Other assets	—		4		2,275		2,279		2,279
Total assets	$	358	$	70	$	3,812	$	4,240	$	4,227
Liabilities:
Policyholders’ account balances - investment contracts	$	—	$	—	$	2,391	$	2,391	$	2,381
Payables to parent and affiliates	—		36		—		36		36
Other liabilities	—		105		—		105		105
Separate account liabilities - investment contracts	—		—		—		—		—
Total liabilities	$	—	$	141	$	2,391	$	2,532	$	2,522

(1)Carrying values presented herein differ from those in the Company’s Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.