INCOME TAXES - PREDECESSOR COMPANY (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following schedule discloses significant components of Income tax expense (benefit): 

	Successor Company
	Nine Months Ended December 31
	2022
	(in millions)
Current tax expense:
U.S. federal	$	18
Deferred tax benefit:
U.S. federal	(52)
Income tax benefit	(34)
Income tax expense reported in equity related to:
Other comprehensive income	29
Total income tax benefit	$	(5)

The following schedule discloses significant components of income tax expense (benefit) for each period presented: 

	Year Ended December 31
	2021		2020
	(in millions)
Current tax expense (benefit):
U.S. federal	$	241	$	92
State and local	3		—
Total	244		92
Deferred tax expense (benefit):
U.S. federal	1,050		(958)
Total	1,050		(958)
Income tax expense (benefit)	1,294		(866)
Income tax expense (benefit) reported in equity related to:
Other comprehensive income (loss)	(362)		294
Total income tax expense (benefit)	$	932	$	(572)

Schedule of Income before Income Tax, Domestic and Foreign

The difference between income taxes expected at the U.S. federal statutory income tax rate of 21 percent applicable for 2022 and the reported income tax expense (benefit) are summarized as follows:

	Successor Company
	Nine Months Ended December 31
	2022
	(in millions)
Expected federal income tax benefit	$	(67)
Valuation Allowance	37
Non-taxable investment income	(5)
Transaction Costs	1
Reported income tax benefit	$	(34)
Effective tax rate	10.7		%

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

	December 31, 2021
	(in millions)
Deferred tax assets:
Insurance reserves	$	242
Investments	830
Other	1
Deferred tax assets	1,073
Deferred tax liabilities:
VOBA and deferred policy acquisition cost	110
Deferred sales inducements	62
Net unrealized gain on securities	56
Deferred tax liabilities	228
Net deferred tax asset (liability)	$	845

Schedule of Deferred Tax Assets and Liabilities

Schedule of Deferred Tax Assets and Deferred Tax Liabilities

	As of December 31,
	2022
	(in millions)
Deferred tax assets:
Intangibles	$	122
Investments	121
Capital loss carryforwards	26
Total deferred tax assets	269
Deferred tax liabilities:
Insurance reserves	(150)
Change in insurance liabilities - OCR component	(29)
Other	(3)
Total deferred tax liabilities	(182)
Net deferred tax asset before valuation allowance	87
Valuation allowance	(37)
Net deferred tax asset	$	50