SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

FLIAC has two reportable segments, which we refer to as the "Retained Business" and the "Ceded Business."

The Retained Business consists of variable annuity products with guaranteed lifetime withdrawal benefit features as well as smaller blocks of variable annuity products with certain other living benefit and death benefit features. The Retained Business also includes variable universal life and fixed payout annuity products. The Retained Business is actively managed by FLIAC management and the Successor Company retains the full economic benefits and risks.

The Ceded Business represents certain business (primarily registered index-linked annuities and fixed annuities, which includes fixed indexed and fixed deferred annuities, and other variable annuities) where 100 percent of the assets and liabilities have been fully ceded to Prudential Insurance and Pruco Life under existing coinsurance and modified coinsurance agreements. At March 31, 2023 and December 31, 2022, we had a modified coinsurance payable of $1,886 million and $1,745 million, respectively, equal to the assets held in the Ceded Business, which is included in the net modified coinsurance receivable/payable. Historical information has not been revised for the segment presentation and is not comparable following the election of push-down accounting as of April 1, 2022.

The following is the Consolidated Statement of Financial Position by segment:

	March 31, 2023
	Retained Business		Ceded Business		Total
	(in millions)
ASSETS
Total investments	$	4,457	$	1,678	$	6,135
Cash and cash equivalents	389		456		845
Accrued investment income	42		11		53
Reinsurance recoverables	—		247		247
Deposit asset	—		608		608
Goodwill	93		—		93
Income tax	45		—		45
Other assets	70		28		98
Separate account assets	21,909		2,076		23,985
TOTAL ASSETS	$	27,005	$	5,104	$	32,109
LIABILITIES AND EQUITY
LIABILITIES
Insurance liabilities	$	3,056	$	2,695	$	5,751
Net modified coinsurance payable	—		45		45
Other liabilities	474		288		762
Separate account liabilities	21,909		2,076		23,985
TOTAL LIABILITIES	25,439		5,104		30,543
EQUITY	1,566		—		1,566
TOTAL LIABILITIES AND EQUITY	$	27,005	$	5,104	$	32,109

    

	December 31, 2022
	Retained Business		Ceded Business		Total
	(in millions)
ASSETS
Total investments	$	4,257	$	1,630	$	5,887
Cash and cash equivalents	433		439		872
Accrued investment income	41		11		52
Reinsurance recoverables	—		235		235
Net modified coinsurance receivable	—		18		18
Deposit asset	—		607		607
Goodwill	93		—		93
Income tax	50		—		50
Other assets	113		14		127
Separate account assets	21,558		2,043		23,601
TOTAL ASSETS	$	26,545	$	4,997	$	31,542
LIABILITIES AND EQUITY
LIABILITIES
Insurance liabilities	$	2,941	$	2,605	$	5,546
Other liabilities	459		349		808
Separate account liabilities	21,558		2,043		23,601
TOTAL LIABILITIES	24,958		4,997		29,955
EQUITY	1,587		—		1,587
TOTAL LIABILITIES AND EQUITY	$	26,545	$	4,997	$	31,542

The following is comprehensive income by segment:

	Three Months Ended March 31, 2023
	Retained Business		Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	7	$	—	$	7
Policy charges and fee income	117		—		117
Net investment income	56		20		76
Asset management and service fees	22		—		22
Other income	1		—		1
Investment gains, net	30		135		165
TOTAL REVENUES	233		155		388
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	185		155		340
Commission expense	23		—		23
General, administrative and other expenses	18		—		18
TOTAL BENEFITS AND EXPENSES	226		155		381
INCOME FROM OPERATIONS BEFORE INCOME TAXES	7		—		7
Income tax expense	—		—		—
NET INCOME	$	7	$	—	$	7
Other comprehensive income, before tax:
Changes in own-credit risk related to insurance liabilities	22				22
Less: Income tax expense	5				5
Other comprehensive income, net of taxes	17		—		17
COMPREHENSIVE INCOME	$	24	$	—	$	24