10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________

FORM 10-Q

_________________________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from                      to                     

Commission File Number 033-44202

_________________________________________________________________ 

Fortitude Life Insurance & Annuity Company

(Exact Name of Registrant as Specified in its Charter)

Arizona	06-1241288
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

Ten Exchange Place

Suite 2210

Jersey City, NJ 07302

(615) 981-8801

(Address and Telephone Number of Registrant’s Principal Executive Offices)

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Not Applicable	Not Applicable	Not Applicable

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of the Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer", "accelerated filer", "smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-accelerated Filer	☒	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of August 10, 2023, 25,000 shares of the registrant’s Common Stock (par value $100) consisting of 100 voting shares and 24,900 non-voting shares were outstanding. As of such date, Fortitude Group Holdings, LLC, a Delaware limited liability company, owned all of the registrant’s Common Stock.

TABLE OF CONTENTS

			Page
PART I FINANCIAL INFORMATION
	Item 1.	Financial Statements:
		Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2023 and December 31, 2022	5
		Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2023, the three months ended June 30, 2022 (Successor Company), and the three months ended March 31, 2022 (Predecessor Company)	6
		Unaudited Interim Consolidated Statements of Equity for the three and six months ended June 30, 2023, the three months ended June 30, 2022 (Successor Company), and the three months ended March 31, 2022 (Predecessor Company)	7
		Unaudited Interim Consolidated Statements of Cash Flows for the six months ended June 30, 2023, the three months ended June 30, 2022 (Successor Company), and the three months ended March 31, 2022 (Predecessor Company)	8
		Notes to Unaudited Interim Consolidated Financial Statements	9
		1.   Business and Basis of Presentation	9
		2.   Significant Accounting Policies and Pronouncements	10
		3. Segment Information	11
		4.   Investments	16
		5.   Derivatives and Hedging	20
		6.   Fair Value of Assets and Liabilities	25
		7.   Income Taxes	40
		8.   Equity	40
		9. Commitments and Contingent Liabilities	42
		10.  Related Party Transactions	44
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	57
	Item 4.	Controls and Procedures	58
PART II OTHER INFORMATION			58
	Item 1.	Legal Proceedings	58
	Item 1A.	Risk Factors	58
	Item 6.	Exhibits	59
SIGNATURES			60

3

FORWARD-LOOKING STATEMENTS

Certain of the statements included in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “includes,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Fortitude Life Insurance & Annuity Company (FLIAC). There can be no assurance that future developments affecting FLIAC will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (1) the ongoing impact of the uncertain and evolving economic environment on the global economy, financial markets and our business, (2) losses on investments or financial contracts due to deterioration in credit quality or value, or counterparty default; (3) losses on insurance products due to mortality experience or policyholder behavior experience that differs significantly from our expectations when we priced our products; (4) changes in interest rates and equity prices that may (a) adversely impact the profitability of our products, the value of separate accounts supporting these products or the value of assets we manage, (b) result in losses on derivatives we use to hedge risk or increase collateral posting requirements and (c) limit opportunities to invest at appropriate returns; (5) guarantees within certain of our products which are market sensitive and may decrease our earnings or increase the volatility of our results of operations or financial position; (6) liquidity needs resulting from (a) derivative collateral market exposure, (b) asset/liability mismatches, (c) the lack of available funding in the financial markets or (d) unexpected cash demands due to severe mortality calamity or lapse events; (7) financial or customer losses, or regulatory and legal actions, due to inadequate or failed processes or systems, external events and human error or misconduct such as (a) disruption of our systems and data, (b) an information security breach, (c) a failure to protect the privacy of sensitive data, (d) reliance on third parties or (e) labor and employment matters; (8) changes in the regulatory landscape, including related to (a) financial sector regulatory reform, (b) changes in tax laws, (c) fiduciary rules and other standards of care, (d) state insurance laws and developments regarding group-wide supervision, capital and reserves, (e) privacy and cybersecurity regulation or (f) climate risk and environmental, social, and governance (ESG) regulation; (9) technological changes which may adversely impact companies in our investment portfolio or cause insurance experience to deviate from our assumptions; (10) ratings downgrades; (11) market conditions that may adversely affect the sales or persistency of our products; (12) competition; (13) reputational damage; and (14) risks associated with the integration process related to the Company's recent change in ownership. FLIAC does not intend, and is under no obligation, to update any particular forward-looking statement included in this document. See “Risk Factors” included in the Annual Report on Form 10-K for the year ended December 31, 2022 for discussion of certain risks relating to our business.

4

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements                                     

Fortitude Life Insurance & Annuity Company

Interim Consolidated Statements of Financial Position

(in millions, except share data)

	Successor Company
	June 30, 2023		December 31, 2022
	(Unaudited)
ASSETS
Fixed maturity securities, at fair value	$	4,966	$	5,024
Equity securities, at fair value (cost - June 30, 2023 - $0; December 31, 2022 - $201)	—		175
Mortgage and other loans, at fair value	229		196
Short-term investments	39		42
Other invested assets (includes $620 and $430 of assets measured at fair value at June 30, 2023 and December 31, 2022, respectively)	640		450
Total investments	5,874		5,887
Cash and cash equivalents	649		872
Accrued investment income	55		52
Reinsurance recoverables, at fair value	200		235
Net modified coinsurance receivable, at fair value	—		18
Deposit asset, at fair value	476		607
Goodwill	93		93
Income tax	46		50
Other assets (Receivables from parent and affiliates: June 30, 2023 - $2; December 31, 2022 - $40)	83		127
Separate account assets, at fair value	24,065		23,601
TOTAL ASSETS	$	31,541	$	31,542
LIABILITIES AND EQUITY
LIABILITIES
Insurance liabilities, at fair value	$	4,984	$	5,546
Net modified coinsurance payable, at fair value	81		—
Other liabilities (Payables to parent and affiliates: June 30, 2023 - $7; December 31, 2022 - $3)	805		808
Separate account liabilities, at fair value	24,065		23,601
Total liabilities	29,935		29,955
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 9)
EQUITY
Common stock, $100 par value; 25,000 shares authorized, issued and outstanding	3		3
Additional paid-in capital	1,714		1,759
Retained deficit	(149)		(286)
Accumulated other comprehensive income	38		111
Total equity	1,606		1,587
TOTAL LIABILITIES AND EQUITY	$	31,541	$	31,542

See Notes to Unaudited Interim Consolidated Financial Statements

5

Fortitude Life Insurance & Annuity Company

Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss)

(in millions)

	Successor Company						Predecessor Company
	Three Months Ended				Six Months Ended		Three Months Ended
	June 30						March 31
	2023		2022		2023		2022
REVENUES
Premiums	$	7	$	3	$	14	$	8
Policy charges and fee income	115		130		232		97
Net investment income	78		97		154		99
Asset management and service fees	23		22		45		20
Other income (loss)	3		1		4		(19)
Investment gains (losses), net	(287)		(1,298)		(122)		481
TOTAL REVENUES	(61)		(1,045)		327		686
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(255)		(870)		85		—
Policyholder benefits	—		—		—		26
Interest credited to policyholders account balances	—		—		—		85
Amortization of deferred policy acquisition costs	—		—		—		104
Commission expense	23		18		46		35
General, administrative and other expenses	16		38		34		3
TOTAL BENEFITS AND EXPENSES	(216)		(814)		165		253
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES	155		(231)		162		433
Income tax expense (benefit)	25		(51)		25		77
NET INCOME (LOSS)	$	130	$	(180)	$	137	$	356
Other comprehensive income (loss), before tax:
Changes in own-credit risk related to insurance liabilities	(115)		245		(93)		—
Net unrealized investment losses	—		—		—		(561)
Total	(115)		245		(93)		(561)
Less: Income tax expense (benefit) related to other comprehensive income (loss)	(25)		51		(20)		(118)
Other comprehensive income (loss), net of taxes	(90)		194		(73)		(443)
COMPREHENSIVE INCOME (LOSS)	$	40	$	14	$	64	$	(87)

See Notes to Unaudited Interim Consolidated Financial Statements

6

Fortitude Life Insurance & Annuity Company

Unaudited Interim Consolidated Statements of Equity

(in millions)

	Successor Company
	Common   Stock		Additional   Paid-in Capital		Retained Deficit		Accumulated Other Comprehensive   Income		Total Equity
Balance, December 31, 2022	$	3	$	1,759	$	(286)	$	111	$	1,587
Distribution to parent	—		(45)		—		—		(45)
Comprehensive income:
Net income	—		—		7		—		7
Other comprehensive loss, net of tax	—		—		—		17		17
Total comprehensive income									24
Balance, March 31, 2023	$	3	$	1,714	$	(279)	$	128	$	1,566
Comprehensive income:
Net income	—		—		130		—		130
Other comprehensive loss, net of tax	—		—		—		(90)		(90)
Total comprehensive income									40
Balance, June 30, 2023	$	3	$	1,714	$	(149)	$	38	$	1,606

	Common   Stock		Additional   Paid-in Capital		Retained Earnings (Deficit)		Accumulated Other Comprehensive   Income (Loss)		Total Equity
Balance, December 31, 2021 (Predecessor Company)	$	3	$	592	$	917	$	170	$	1,682
Return of capital	—		(306)		—		—		(306)
Comprehensive income (loss):
Net income	—		—		356		—		356
Other comprehensive loss, net of tax	—		—		—		(443)		(443)
Total comprehensive loss									(87)
Balance, March 31, 2022 (Predecessor Company)	$	3	$	286	$	1,273	$	(273)	$	1,289
Balance, April 1, 2022 (Successor Company)	$	3	$	1,759	$	—	$	—	$	1,762
Comprehensive income (loss):
Net loss	—		—		(180)		—		(180)
Other comprehensive income, net of tax	—		—		—		194		194
Total comprehensive income									14
Balance, June 30, 2022 (Successor Company)	$	3	$	1,759	$	(180)	$	194	$	1,776

See Notes to Unaudited Interim Consolidated Financial Statements

7

Fortitude Life Insurance & Annuity Company

Unaudited Interim Consolidated Statements of Cash Flows

(in millions)

	Successor Company				Predecessor Company
	Six Months Ended June 30		Three Months Ended June 30		Three Months Ended March 31
	2023		2022		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	137	$	(180)	$	356
Adjustments to reconcile net income (loss) to net cash from (used in) operating activities:
Investment (gains) losses, net	122		1,298		(481)
Interest credited to policyholder account balances	—		—		85
Other, net	(22)		(6)		2
Change in:
Insurance liabilities, at fair value	(552)		(2,149)		—
Deposit asset, at fair value	131		457		—
Net modified coinsurance receivable/payable, at fair value	442		601		—
Future policy benefits	—		—		60
Accrued investment income	(6)		(10)		1
Net receivables from/payables to parent and affiliates	—		—		(37)
Deferred policy acquisition costs	—		—		104
Income taxes	23		228		142
Reinsurance recoverables, net	35		(34)		(39)
Derivatives, net	(342)		303		(1,079)
Other, net	(8)		(39)		(3)
Cash flows from (used in) operating activities	(40)		469		(889)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturity securities, at fair value	227		2,295		—
Fixed maturity securities, available-for-sale	—		—		422
Equity securities	—		—		95
Mortgage and other loans	49		—		39
Other invested assets	30		3		1
Short-term investments	61		263		795
Payments for the purchase/origination of:
Fixed maturity securities, at fair value	(327)		(3,282)		—
Fixed maturity securities, available-for-sale	—		—		(751)
Equity securities	—		(10)		—
Mortgage and other loans	(87)		—		(13)
Other invested assets	(14)		—		—
Short-term investments	(69)		(6)		(94)
Derivatives, net	—		—		3
Other, net	13		14		—
Cash flows from (used in) investing activities	(117)		(723)		497
CASH FLOWS FROM FINANCING ACTIVITIES:
Net policyholder's account deposits (withdrawals)	(103)		(62)		62
Cash collateral for loaned securities	(106)		(19)		205
Short-term borrowings from parent	80		—		—
Drafts outstanding	5		121		(7)
Repurchase agreements	103		200		—
Distribution to parent	(45)		—		(306)
Cash flows from (used in) financing activities	(66)		240		(46)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(223)		(14)		(438)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	872		1,578		2,016
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	649	$	1,564	1,578

•During the six months ended June 30, 2023 and the three months ended June 30, 2022, we had novations within our Ceded Business related to variable-indexed annuities under the reinsurance agreement with Pruco Life Insurance Company that resulted in non-cash transactions of $343 million and $811 million, respectively, of investments with a corresponding offset of $343 million and $811 million, respectively, to the modified coinsurance payable.

•There were no significant non-cash transactions for the the three months ended March 31,2022.

See Notes to Unaudited Interim Consolidated Financial Statements

8

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

1.    BUSINESS AND BASIS OF PRESENTATION

Fortitude Life Insurance & Annuity Company and its wholly-owned subsidiary (collectively, “FLIAC” or the “Company”), with its principal offices in Jersey City, New Jersey, is a wholly-owned subsidiary of Fortitude Group Holdings, LLC (“FGH”). Prior to April 1, 2022, the Company (previously named Prudential Annuities Life Assurance Corporation ("PALAC")) was a wholly-owned subsidiary of Prudential Annuities, Inc ("PAI"), an indirect wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential Financial"), a New Jersey Corporation. On April 1, 2022, PAI completed the sale of its equity interest in the Company to FGH. As a result, the Company is no longer an affiliate of Prudential Financial or any of its affiliates. See Basis of Presentation below and Note 1 in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information regarding the acquisition.

Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The accompanying Unaudited Consolidated Financial Statements present the consolidated results of operations, financial condition, and cash flows of the Successor Company and a variable interest entity ("VIE") that meets the requirements for consolidation. All intercompany transactions have been eliminated in consolidation. The financial statements of the Predecessor Company were not consolidated as it was a single entity prior to acquisition.

Following the acquisition of FLIAC, purchase accounting was applied to FGH's financial statements and we elected to "push down" the basis to FLIAC in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations. The application of push-down accounting created a new basis of accounting for all assets and liabilities based on fair value at the date of acquisition. As a result, FLIAC's financial position, results of operations, and cash flows subsequent to the acquisition are not comparable with those prior to April 1, 2022, and therefore have been segregated to indicate pre-acquisition and post-acquisition periods. The pre-acquisition period through March 31, 2022 is referred to as the Predecessor Company. The post-acquisition period, April 1, 2022 and forward, includes the impact of push-down accounting and is referred to as the Successor Company. See Notes 1 and 2 in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information regarding the acquisition and our application of push-down accounting.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Novation of Ceded Business

In 2022, in accordance with applicable state law, a program was instituted to novate a significant portion of the Ceded Business policies from FLIAC to Pruco Life Insurance Company ("Pruco Life"). The program does not have an impact on total equity or net income but has resulted in the reduction of certain activity/balances associated with these policies. During the three and six months ended June 30, 2023, approximately $451 million and $458 million, respectively, of account value which generally approximates fair values of insurance liabilities, was transferred out of the Company as a result of the novation program. As of June 30, 2023, approximately 70 percent of account value in the Ceded Business has been novated since the acquisition of the Company on April 1, 2022.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.

9

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

2.    SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

Accounting Policy Election

Fair Value Option

We have elected to prospectively apply the fair value option to several of FLIAC's assets and liabilities. We have made this election as it improves our operational efficiency and better aligns the recognition and measurement of our investments, insurance liabilities, and associated reinsurance activity with how we expect to manage the business. See Note 6 herein and Notes 2 and 6 in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information.

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of an Accounting Standards Update ("ASU") to the ASC. We consider the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material.

Effective ASUs - June 30, 2023

ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB. This update became effective January 1, 2023 but is not applicable due to our election to adopt the fair value option on all of our insurance liabilities, which includes our separate account liabilities.

ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, was issued by the FASB. This update became effective January 1, 2023 but is not applicable due to our election to adopt the fair value option on financial instruments that are within the scope of this update.

10

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

3.    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 June 30, 2023 and December 31, 2022, we had a modified coinsurance payable of $1,678 million and $1,745 million, respectively, equal to the assets held in the Ceded Business, and are included in the net modified coinsurance receivable/payable. Information prior to acquisition 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:

	June 30, 2023
	Retained Business		Ceded Business		Total
	(in millions)
ASSETS
Total investments	$	4,486	$	1,388	$	5,874
Cash and cash equivalents	351		298		649
Accrued investment income	45		10		55
Reinsurance recoverables	—		200		200
Deposit asset	—		476		476
Goodwill	93		—		93
Income tax	46		—		46
Other assets	70		13		83
Separate account assets	21,981		2,084		24,065
TOTAL ASSETS	$	27,072	$	4,469	$	31,541
LIABILITIES AND EQUITY
LIABILITIES
Insurance liabilities	$	2,711	$	2,273	$	4,984
Net modified coinsurance payable	—		81		81
Other liabilities	774		31		805
Separate account liabilities	21,981		2,084		24,065
TOTAL LIABILITIES	25,466		4,469		29,935
EQUITY	1,606		—		1,606
TOTAL LIABILITIES AND EQUITY	$	27,072	$	4,469	$	31,541

    

11

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	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

12

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

The following is comprehensive income by segment:

	Three Months Ended June 30, 2023
	Retained Business		Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	7	$	—	$	7
Policy charges and fee income	115		—		115
Net investment income	58		20		78
Asset management and service fees	23		—		23
Other income	2		1		3
Investment gains (losses), net	(402)		115		(287)
TOTAL REVENUES	(197)		136		(61)
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(391)		136		(255)
Commission expense	23		—		23
General, administrative and other expenses	16		—		16
TOTAL BENEFITS AND EXPENSES	(352)		136		(216)
INCOME FROM OPERATIONS BEFORE INCOME TAXES	155		—		155
Income tax expense	25		—		25
NET INCOME	$	130	$	—	$	130
Other comprehensive loss, before tax:
Changes in own-credit risk related to insurance liabilities	(115)		—		(115)
Less: Income tax benefit	(25)		—		(25)
Other comprehensive loss, net of taxes	(90)		—		(90)
COMPREHENSIVE INCOME	$	40	$	—	$	40

13

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	Six Months Ended June 30, 2023
	Retained Business		Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	14	$	—	$	14
Policy charges and fee income	232		—		232
Net investment income	114		40		154
Asset management and service fees	45		—		45
Other income	3		1		4
Investment gains (losses), net	(372)		250		(122)
TOTAL REVENUES	36		291		327
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(206)		291		85
Commission expense	46		—		46
General, administrative and other expenses	34		—		34
TOTAL BENEFITS AND EXPENSES	(126)		291		165
INCOME FROM OPERATIONS BEFORE INCOME TAXES	162		—		162
Income tax expense	25		—		25
NET INCOME	$	137	$	—	$	137
Other comprehensive loss, before tax:
Changes in own-credit risk related to insurance liabilities	(93)		—		(93)
Less: Income tax benefit	(20)		—		(20)
Other comprehensive loss, net of taxes	(73)		—		(73)
COMPREHENSIVE INCOME	$	64	$	—	$	64

14

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	Three Months Ended June 30, 2022
	Retained Business			Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	3		$	—	$	3
Policy charges and fee income	130			—		130
Net investment income	35			62		97
Asset management and service fees	22			—		22
Other income	—			1		1
Investment losses, net	(108)			(1,190)		(1,298)
TOTAL REVENUES	82			(1,127)		(1,045)
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	257		—	(1,127)		(870)
Commission expense	18			—		18
General, administrative and other expenses	38			—		38
TOTAL BENEFITS AND EXPENSES	313			(1,127)		(814)
LOSS FROM OPERATIONS BEFORE INCOME TAXES	(231)			—		(231)
Income tax benefit	(51)			—		(51)
NET LOSS	$	(180)		$	—	$	(180)
Other comprehensive income, before tax:
Changes in own-credit risk related to insurance liabilities	245			—		245
Less: Income tax expense	51			—		51
Other comprehensive income, net of taxes	194			—		194
COMPREHENSIVE INCOME	$	14		$	—	$	14

15

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

4.    INVESTMENTS

We have elected to apply the fair value option for FLIAC's entire portfolio of fixed maturity and equity securities and mortgage and other loans. The impact of the election has resulted in the following changes:

•Elimination of the "available-for-sale" designation on all fixed maturity securities, resulting in a change in the recording of unrealized gains and losses through "Investment gains, net" in the consolidated statement of income rather than in "Accumulated other comprehensive income" ("AOCI") as a component of equity in the consolidated statements of financial position;

•Elimination of the required allowance for current expected credit losses on applicable financial assets under ASC 326 - Financial Instruments - Credit Losses, which include fixed maturity securities designated as "available-for-sale" and mortgage and other loans; and

•Elimination of a significant portion of the required disclosures for available-for-sale securities and mortgage and other loans. These disclosures primarily relate to the amortized cost and unrealized gains and losses on available-for-sale securities. Disclosures for historical periods under the Predecessor Company are retained at the end of this note under "Predecessor Company".

SUCCESSOR COMPANY

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated.

	June 30, 2023						December 31, 2022
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
LPs/LLCs:
Equity method:
Private equity	$	—	$	4	$	4	$	—	$	4	$	4
Real estate-related	—		5		5		—		5		5
Subtotal equity method	—		9		9		—		9		9
Fair value:
Private equity	340		1		341		344		1		345
Total LPs/LLCs	340		10		350		344		10		354
Derivative instruments	156		123		279		85		—		85
Policy loans	11		—		11		11		—		11
Total other invested assets	$	507	$	133	$	640	$	440	$	10	$	450

Accrued Investment Income

The following table sets forth the composition of “Accrued investment income,” as of the dates indicated:

	June 30, 2023							December 31, 2022
	Retained Business			Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Fixed maturity securities	$	42		$	9	$	51	$	37	$	10	$	47
Mortgage and other loans	1			—		1		1		—		1
Other invested assets	1		—	—		1		—		—		—
Short-term investments and cash equivalents	1			1		2		3		1		4
Total accrued investment income	$	45		$	10	$	55	$	41	$	11	$	52

As of June 30, 2023, the aggregate fair value of mortgage and other loans that were 90 days or more past due and in non-accrual status was $3 million. The aggregate unpaid principal balance for these loans approximated fair value as of June 30, 2023. As of December 31, 2022, there were no mortgage and other loans that were 90 days or more past due or in non-accrual status.

16

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

Net Investment Income

The following tables set forth “Net investment income” by investment type, for the periods indicated:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Fixed maturities securities	$	51	$	13	$	64	$	98	$	27	$	125
Equity securities	—		1		1		—		2		2
Mortgage and other loans	4		—		4		8		—		8
Other invested assets	7		—		7		19		1		20
Short-term investments and cash equivalents	3		6		9		5		12		17
Gross investment income	65		20		85		130		42		172
Less: investment expenses	(7)		—		(7)		(16)		(2)		(18)
Net investment income	$	58	$	20	$	78	$	114	$	40	$	154

	Three Months Ended June 30, 2022
	Retained Business		Ceded Business		Total
	(in millions)
Fixed maturities securities	$	36	$	44	$	80
Equity securities	—		1		1
Secured receivable	—		11		11
Other invested assets	—		4		4
Short-term investments and cash equivalents	—		2		2
Gross investment income	36		62		98
Less: investment expenses	(1)		—		(1)
Net investment income	$	35	$	62	$	97

The activity above includes interest income related to fair value option investments, where applicable.

Investment Gains (Losses), Net 

The following tables set forth “Investment gains (losses), net” by investment type, for the periods indicated:

	Three Months Ended June 30, 2023
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	(61)	$	(2)	$	(63)	$	(12)	$	(8)	$	(20)	$	(73)	$	(10)	$	(83)
Equity securities	—		—		—		(2)		—		(2)		(2)		—		(2)
Derivatives	—		(339)		(339)		—		137		137		—		(202)		(202)
Total	$	(61)	$	(341)	$	(402)	$	(14)	$	129	$	115	$	(75)	$	(212)	$	(287)

	Six Months Ended June 30, 2023
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	95	$	(28)	$	67	$	9	$	(8)	$	1	$	104	$	(36)	$	68
Equity securities	—		—		—		5		—		5		5		—		5
Derivatives	—		(439)		(439)		—		244		244		—		(195)		(195)
Total	$	95	$	(467)	$	(372)	$	14	$	236	$	250	$	109	$	(231)	$	(122)

17

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	Three Months Ended June 30, 2022
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	(295)	$	(71)	$	(366)	$	60	$	(338)	$	(278)	$	(235)	$	(409)	$	(644)
Secured receivable	—		—				—		(51)		(51)		—		(51)		(51)
Equity securities	—		—		—		(19)		—		(19)		(19)		—		(19)
Derivatives	—		258		258		—		(842)		(842)		—		(584)		(584)
Total	$	(295)	$	187	$	(108)	$	41	$	(1,231)	$	(1,190)	$	(254)	$	(1,044)	$	(1,298)

Repurchase Agreements and Securities Lending

In the normal course of business, FLIAC sells securities under agreements to repurchase and enters into securities lending transactions. These balances are recorded within Other liabilities in the unaudited interim consolidated statements of financial position.

The following table sets forth, by type, the securities that we have agreed to repurchase, all of which are contained in the Retained Business. The below amounts represent the cash received under the outstanding repurchase agreements.

	June 30, 2023								December 31, 2022
	Remaining Contractual Maturities of the Agreements
	Up to 30 days		30-90 days		Greater than 90 days		Total		Up to 30 days		30-90 days		Greater than 90 days		Total
	(in millions)
U.S. corporate public securities	$	201	$	100	$	102	$	403	$	111	$	200	$	—	$	311

The market value of the securities posted as collateral under the repurchase agreements was $423 million and $326 million as of June 30, 2023 and December 31, 2022, respectively.

The following table sets forth the remaining contractual maturities of the Successor Company's securities lending transactions by the security type that was loaned, all of which are contained in the Ceded Business. The amounts below represent the cash collateral received for the loaned securities.

	June 30, 2023								December 31, 2022
	Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 days		30-90 days		Total		Overnight & Continuous		Up to 30 days		30-90 days		Total
	(in millions)
Equity securities	$	—	$	—	$	—	$	—	$	106	$	—	$	—	$	106

There were no outstanding securities lending agreements at June 30, 2023. The market value of the securities loaned at December 31, 2022 was $103 million.

18

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

PREDECESSOR COMPANY

The following table sets forth the sources of proceeds and related investment losses for available-for-sale fixed maturity securities:

	Three months ended March 31
	2022
	(in millions)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	294
Proceeds from maturities/prepayments	108
Gross investment losses on sales and maturities	(21)

(1)Excludes activity from non-cash related proceeds due to the timing of trade settlements of $20 million for three months ended March 31, 2022.

Allowance for credit losses

The activity in the allowance for credit losses for fixed maturity securities, available-for-sale, was de minimis for the three months ended March 31, 2022.

The allowance for credit losses for mortgage and other loans declined by $1 million for the three months ended March 31, 2022. The decrease related to the improving credit environment.

See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information about the Predecessor Company’s methodology for developing the allowance for credit losses.

Net Investment Income

The following table sets forth “Net investment income” by investment type, for the periods indicated:

	Three Months Ended
	March 31, 2022
	(in millions)
Fixed maturities securities (1)	$	61
Equity securities	1
Mortgage and other loans	11
Other invested assets	29
Short-term investments and cash equivalents	1
Gross investment income	103
Less: investment expenses	(4)
Net investment income	$	99

(1)Includes fixed maturity securities classified as available-for-sale and trading.

Investment Gains, Net 

The following table sets forth “Investment gains, net” by investment type, for the periods indicated:

	Three Months Ended March 31, 2022
	(in millions)
Fixed maturity securities (1)	$	(21)
Derivatives	502
Total	$	481

(1)Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.

19

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

5.    DERIVATIVES AND HEDGING

Types of Derivative Instruments and Derivative Strategies

The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include but are not necessarily limited to:

•Interest rate contracts: swaps, swaptions, futures, forwards, options, caps and floors

•Equity contracts: futures, options, and total return swaps

•Foreign exchange contracts: futures, options, forwards and swaps

•Credit contracts: single and index reference credit default swaps

See below for information on these contracts and the related strategies.

Interest Rate Contracts

Interest rate swaps, swaptions, and futures are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities and to hedge against changes in their values it owns or anticipates acquiring or selling.

Interest rate swaps may be attributed to specific assets or liabilities or to a portfolio of assets or liabilities. The Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount.

Swaptions are options that give the holder the right but not obligation to enter into a specified interest rate swap. The Company uses these instruments for protection against the direction of future interest rates. Swaptions are included in the interest rate swaps line item on the subsequent tables within this note.

In standardized exchange-traded interest rate futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values of underlying referenced investments. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange.

Equity Contracts

Equity options, total return swaps, and futures are used by the Company to manage its exposure to the equity markets which impacts the value of assets and liabilities it owns or anticipates acquiring or selling.

Equity options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range.

Total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and Secured Overnight Financing Rate ("SOFR") plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices.

In standardized exchange-traded equity futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values underlying referenced equity indices. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange.

Foreign Exchange Contracts

Currency derivatives, including currency swaps and forwards, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell.

20

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

Under currency forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated.

Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party.

Credit Contracts

The Company, primarily in the retained business, sells credit protection using credit derivatives in order to generate a credit spread for the benefit of the Company’s investment portfolio. In addition, the Company, primarily in the ceded business, has also purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio.

21

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

Primary Risks Managed and/or Accessed by Derivatives

The tables below provide a summary, by operating segment, of the gross notional amount and fair value of derivative contracts, by the primary underlying risks. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral.

	June 30, 2023						December 31, 2022
Primary Underlying Risk/Instrument Type	Gross Notional Values/Units		Fair Value				Gross Notional Values/Units		Fair Value
			Assets		Liabilities				Assets		Liabilities
	(in millions)
Retained Business
Interest Rate
Interest Rate Swaps	$	15,856	$	312	$	(520)	$	12,131	$	228	$	(553)
Currency/Interest Rate
Foreign Currency Swaps	103		9		—		100		11		—
Credit
Credit Default Swaps	520		8		—		520		5		—
Equity
Equity Futures	(2,002)		—		(57)		(1,737)		46		—
Total Return Swaps	1,079		2		(47)		—		24		(49)
Equity Options	4,046		184		(34)		3,286		118		—
Total Derivatives, Retained Business	19,602		515		(658)		14,300		432		(602)
Ceded Business
Interest Rate
Interest Rate Swaps	1,160		50		(16)		2,517		48		(117)
Currency/Interest Rate
Foreign Currency Swaps	46		4		—		48		6		—
Credit
Credit Default Swaps	70		2		—		71		1		—
Equity
Total Return Swaps	24		—		—		—		—		—
Equity Options	3,765		168		(85)		7,139		180		(356)
Total Derivatives, Ceded Business	5,065		224		(101)		9,775		235		(473)
Total Derivatives (1)	$	24,667	$	739	$	(759)	$	24,075	$	667	$	(1,075)

(1)     Recorded in “Other invested assets” and “Other liabilities” in the Consolidated Statements of Financial Position.

22

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

Offsetting Assets and Liabilities

The following table presents recognized derivative instruments that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position.

	June 30, 2023
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the  Statements of Financial Position		Net Amounts Presented in the Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives
Retained Business	$	156	$	—	$	156	$	(156)	$	—
Ceded Business	224		(101)		123		—		123
Total	$	380	$	(101)	$	279	$	(156)	$	123
Offsetting of Financial Liabilities:
Derivatives
Retained Business	$	299	$	(299)	$	—	$	—	$	—
Ceded Business	101		(101)		—		—		—
Total	$	400	$	(400)	$	—	$	—	$	—
Repurchase agreements	$	403	$	—	$	403	$	(403)	$	—

	December 31, 2022
`	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives
Retained Business	$	183	$	(98)	$	85	$	(85)	$	—
Ceded Business	235		(235)		—		—		—
Total	$	418	$	(333)	$	85	$	(85)	$	—
Offsetting of Financial Liabilities:
Derivatives
Retained Business	$	353	$	(353)	$	—	$	—	$	—
Ceded Business	473		(272)		201		—		201
Total	$	826	$	(625)	$	201	$	—	$	201
Repurchase agreements	$	311	$	—	$	311	$	(311)	$	—
Securities lending transactions	$	106	$	—	$	106	$	(103)	$	3

(1)Amounts exclude the excess of collateral received/pledged from/to the counterparty.

The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. FLIAC manages credit risk by (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review.

23

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.

For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Classification of Derivatives Activity

As part of our application of push-down accounting in connection with the acquisition of the Company, we have de-designated the Predecessor Company's hedging relationships for all of our derivative instruments, and accordingly, any related accumulated unrealized gains and losses that were previously recorded in AOCI were reset to zero at the acquisition date. Historical information has not been restated under the updated segmentation and is not comparable following the change in ownership on April 1, 2022.

The following tables provide the financial statement classification and impact of derivatives, by segment.

	Successor Company
	Three Months Ended		Six Months Ended		Three Months Ended
	June 30, 2023				June 30, 2022
	Investment gains (losses), net
	(in millions)
Retained Business
Interest Rate	$	(77)	$	38	$	(445)
Credit	2		2		—
Equity	(264)		(479)		703
Total, Retained Business	(339)		(439)		258
Ceded Business
Interest Rate	36		67		(20)
Currency	—		—		2
Currency/Interest Rate	—		—		130
Credit	1		1		(6)
Equity	100		176		(948)
Total, Ceded Business	137		244		(842)
Total	$	(202)	$	(195)	$	(584)

	Predecessor Company
	Three Months Ended March 31, 2022
	Investment Gains, net		Net Investment Income		Other Income		Change in AOCI
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	1	$	1	$	2	$	4
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(527)		—		—		—
Currency/Interest Rate	(6)		—		—		—
Credit	(12)		—		—		—
Equity	59		—		—		—
Embedded Derivatives	986		—		—		—
Total Derivatives Not Qualifying as Hedge Accounting Instruments	500		—		—		—
Total	$	501	$	1	$	2	$	4

24

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

6.    FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value Measurement – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.

Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs.

Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value.

For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 6 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Fair Value Option Election

We have elected to adopt the fair value option for several of our financial assets and liabilities. The following are the financial assets and liabilities for which we have elected the fair value option. See Notes 2 and 6 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information.

•Fixed maturity securities

•Equity securities

•Mortgage and other loans

•Reinsurance recoverable

•Separate account assets and liabilities

•Net modified coinsurance receivable/payable

•Deposit asset

•Insurance liabilities

25

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

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.

	Successor Company
	June 30, 2023
	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	$	—	$	527	$	—	$	—	$	527
Obligations of U.S. states and their political subdivisions	—		142		—		—		142
Foreign government bonds	—		5		—		—		5
U.S. corporate public securities	—		2,745		—		—		2,745
U.S. corporate private securities	—		144		210		—		354
Foreign corporate public securities	—		195		—		—		195
Foreign corporate private securities	—		31		37		—		68
Asset-backed securities (2)	—		472		208		—		680
Commercial mortgage-backed securities	—		17		—		—		17
Residential mortgage-backed securities	—		233		—		—		233
Total fixed maturity securities	—		4,511		455		—		4,966
Mortgage and other loans (3)	—		—		229		—		229
Short-term investments	—		39		—		—		39
Cash and cash equivalents	649		—		—		—		649
Other invested assets (4)	—		739		—		(460)		279
Deposit asset	—		—		476		—		476
Reinsurance recoverables	—		—		200		—		200
Subtotal excluding separate account assets	649		5,289		1,360		(460)		6,838
Separate account assets	—		24,065		—		—		24,065
Total assets	$	649	$	29,354	$	1,360	$	(460)	$	30,903
Liabilities
Insurance liabilities	$	—	$	—	$	4,984	$	—	$	4,984
Other liabilities - derivatives	57		702		—		(759)		—
Net modified coinsurance payable	—		—		81		—		81
Separate account liabilities	—		24,065		—		—		24,065
Total liabilities	$	57	$	24,767	$	5,065	$	(759)	$	29,130

(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)As of June 30, 2023, the difference between the aggregate fair value and the aggregate unpaid principal of mortgage and other loans was de minimis.

(4)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 June 30, 2023 the fair values of such investments were $341 million. See Note 4 for further details.

26

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	Successor Company
	June 30, 2023
	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	$	—	$	454	$	—	$	—	$	454
Obligations of U.S. states and their political subdivisions	—		142		—		—		142
U.S. corporate public securities	—		2,046		—		—		2,046
U.S. corporate private securities	—		—		210		—		210
Foreign corporate public securities	—		138		—		—		138
Foreign corporate private securities	—		—		34		—		34
Asset-backed securities (2)	—		472		208		—		680
Commercial mortgage-backed securities	—		17		—		—		17
Residential mortgage-backed securities	—		28		—		—		28
Total fixed maturity securities	—		3,297		452		—		3,749
Mortgage and other loans	—		—		229		—		229
Cash and cash equivalents	351		—		—		—		351
Other invested assets(3)	—		515		—		(359)		156
Subtotal excluding separate account assets	351		3,812		681		(359)		4,485
Separate account assets	—		21,981		—		—		21,981
Total assets	$	351	$	25,793	$	681	$	(359)	$	26,466
Liabilities
Insurance liabilities	$	—	$	—	$	2,711	$	—	$	2,711
Other liabilities - derivatives	57		601		—		(658)		—
Separate account liabilities	—		21,981		—		—		21,981
Total liabilities	$	57	$	22,582	$	2,711	$	(658)	$	24,692

(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 June 30, 2023 the fair values of such investments were $340 million. See Note 4 for further details.

27

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	Successor Company
	June 30, 2023
	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	$	—	$	73	$	—	$	—	$	73
Foreign government bonds	—		5		—		—		5
U.S. corporate public securities	—		699		—		—		699
U.S. corporate private securities	—		144		—		—		144
Foreign corporate public securities	—		57		—		—		57
Foreign corporate private securities	—		31		3		—		34
Residential mortgage-backed securities	—		205		—		—		205
Total fixed maturity securities	—		1,214		3		—		1,217
Short-term investments	—		39		—		—		39
Cash and cash equivalents	298		—		—		—		298
Other invested assets(3)	—		224		—		(101)		123
Deposit asset	—		—		476		—		476
Reinsurance recoverables	—		—		200		—		200
Subtotal excluding separate account assets	298		1,477		679		(101)		2,353
Separate account assets	—		2,084		—		—		2,084
Total assets	$	298	$	3,561	$	679	$	(101)	$	4,437
Liabilities
Insurance liabilities	$	—	$	—	$	2,273	$	—	$	2,273
Other liabilities - derivatives	—		101		—		(101)		—
Net modified coinsurance payable	—		—		81		—		81
Separate account liabilities	—		2,084		—		—		2,084
Total liabilities	$	—	$	2,185	$	2,354	$	(101)	$	4,438

(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 June 30, 2023 the fair values of such investments were $1 million. See Note 4 for further details.

28

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	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 (3)	—		—		196		—		196
Short-term investments	—		42		—		—		42
Cash and cash equivalents	872		—		—		—		872
Other invested assets(4)	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)As of December 31, 2022, the difference between the aggregate fair value and the aggregate unpaid principal of mortgage and other loans was de minimis.

(4)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 $345 million, respectively. See Note 4 for further details.

29

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	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
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.

30

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	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 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 $1 million. See Note 4 for further details.

31

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

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.

	Successor Company
	June 30, 2023
	Fair Value		Valuation Techniques	Unobservable     Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair  Value(1)
	(in millions)
Assets:
Retained business
Fixed maturity securities
U.S. corporate private securities	$	178	Discounted cash flow	Discount rate	4.84	%	9.25	%	6.95	%	Decrease
	32		Trade price	Trade price	N/A		N/A		N/A		Increase
Total U.S. corporate private securities	210
Foreign corporate private securities	34		Discounted cash flow	Discount rate	5.11	%	7.16	%	5.38	%	Decrease
Asset-backed securities	80		Discounted cash flow	Discount rate	7.14	%	8.64	%	8.04	%	Decrease
	128		Trade price	Trade price	N/A		N/A		N/A		Increase
Total asset-backed securities	208
Mortgage and other loans
Residential mortgage loans	131		Level yield	Market yield	7.05	%	9.98	%	8.54	%	Decrease
	20		Trade price	Trade price	N/A		N/A		N/A		Increase
Commercial mortgage loans	78		Trade price	Trade price	N/A		N/A		N/A		Increase
Total Mortgage and other loans	229
Ceded business
Foreign corporate private securities	3		Discounted cash flow	Discount rate	7.81	%	7.81	%	7.81	%	Decrease
Deposit asset	476		Fair values are determined using the same unobservable inputs as insurance liabilities.
Reinsurance recoverables	200		Fair values are determined using the same unobservable inputs as insurance liabilities.
Liabilities:
Insurance liabilities
Retained business	$	2,711	Discounted cash flow	Equity volatility curve (2)	16	%	25	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.28	%			Decrease
				Utilization rate(5)	77	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Ceded business	2,273		Discounted cash flow	Equity volatility curve (2)	16	%	25	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.00	%			Decrease
				Utilization rate(5)	77	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Net modified coinsurance payable	81		Fair values are determined using the same unobservable inputs as insurance liabilities.

32

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	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
Total Mortgage and other loans	196
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	$	2,941	Discounted cash flow	Equity volatility curve (2)	19.5	%	26	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.43	%			Decrease
				Utilization rate(5)	92.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Ceded business
Insurance liabilities	$	2,605	Discounted cash flow	Equity volatility curve (2)	19.5	%	26	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.21	%			Decrease
				Utilization rate(5)	92.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease

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

(2)    The equity volatility curve assumption is based on 1 year and 2 year index-specific at-the-money implied volatilities grading to 10 year total variance. Increased volatility increases the fair value of the liability.

(3)    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.

(4)    The spread over the risk-free rate swap curve represents the premium added to the proxy for the risk-free rate 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.

(5)    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. 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.

(6)    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 June 30, 2023 and 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%.

33

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

(7)    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.

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 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.

34

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	Successor Company
	Three Months Ended June 30, 2023
	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(2)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	182	$	1	$	27	$	—	$	—	$	—	$	—	$	18	$	(18)	$	210	$	2
Foreign corporate private securities	36		(2)		—		—		—		—		—		—		—		34		(3)
Asset-backed securities	191		—		18		—		—		(1)		—		—		—		208		1
Mortgage and other loans
Residential mortgage loans	158		—		31		—		—		(38)		—		—		—		151		—
Commercial mortgage loans	48		—		30		—		—		—		—		—		—		78		—
Ceded Business
Foreign corporate private securities	—		—		5		—		—		(2)		—		—		—		3		—
Deposit asset	608		(10)		—		—		—		—		(122)		—		—		476		—
Reinsurance recoverables	247		(47)		—		—		—		—		—		—		—		200		—
Net modified coinsurance payable	(45)		(36)		—		—		—		—		—		—		—		(81)		—

35

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	Successor Company
	Six Months Ended June 30, 2023
	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(2)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	146	$	1	$	46	$	—	$	—	$	(1)	$	—	$	18	$	—	$	210	$	1
Foreign corporate private securities	36		(2)		—		—		—		—		—		—		—		34		(2)
Asset-backed securities	155		(2)		56		—		—		(1)		—		—		—		208		(1)
Mortgage and other loans
Residential mortgage loans	161		—		44		—		—		(54)		—		—		—		151		—
Commercial mortgage loans	35		—		43		—		—		—		—		—		—		78		—
Ceded Business
Foreign corporate private securities	—		—		5		—		—		(2)		—		—		—		3		—
Deposit asset	607		(8)		—		—		—		—		(123)		—		—		476		—
Reinsurance recoverables	235		(35)		—		—		—		—		—		—		—		200		—
Net modified coinsurance receivable (payable)	18		(99)		—		—		—		—		—		—		—		(81)		—

	Successor Company
	Three Months Ended June 30, 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(2)
	(in millions)
Fixed maturities
Corporate securities(3)	$	190	$	(16)	$	207	$	—	$	—	$	(11)	$	(3)	$	—	$	(53)	$	314	$	(13)
Structured securities(4)	33		—		25		(10)		—		—		(10)		—		(13)		25		—
Other assets:
Secured receivable	1,622		(50)		—		(15)		—		—		(2)		—		—		1,555		—
Deposit asset	2,615		(457)		—		—		—		—		—		—		—		2,158		—
Reinsurance recoverables	344		34		—		—		—		—		—		—		—		378		—
Net modified coinsurance receivable	5		210		—		—		—		—		—		—		—		215		—

36

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	Successor Company
	Three Months Ended June 30, 2023
			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	$	3,056	$	(354)	$	103	$	(189)	$	96	$	(1)	$	2,711
Ceded Business	2,695		(559)		143		(20)		14		—		2,273

	Successor Company
	Six Months Ended June 30, 2023
			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	$	2,941	$	(702)	$	235	$	46	$	196	$	(5)	$	2,711
Ceded Business	2,605		(625)		210		56		27		—		2,273

	Successor Company
	Three Months Ended June 30, 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	$	13,661	$	(1,654)	$	1,206	$	(1,520)	$	98	$	(534)	$	11,257

"Total realized and unrealized gains (losses)" related to our level 3 assets are included in earnings in Investment gains (losses). Activity related to our level 3 liabilities is primarily recognized in earnings within change in Policyholder benefits and changes in fair value of insurance liabilities with the exception of changes related to the Company's own-credit risk, which are included in "Change in fair value (discount rate)" above and recorded in other comprehensive income (loss).

37

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

	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(2)
	(in millions)
Fixed maturities, available-for-sale:
U.S. government	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Corporate securities(3)	190		(9)		5		(4)		—		(2)		—		—		—		180		(9)
Structured securities(4)	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(5)	(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(2)
	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	$	—	$	—	$	(12)	$	—	$	—	$	—	$	(12)
Other assets:
Other assets	(21)		—		—		—		(6)		—		—
Reinsurance recoverables	201		—		—		—		222		—		—
Liabilities:
Future policy benefits	715		—		—		—		686		—		—
Policyholders' account balances	124		—		—		—		89		—		—

(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.

(2)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.

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

(4)Includes asset-backed and residential mortgage-backed securities.

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

38

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

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 income 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. Policyholder 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:

	Successor Company
	June 30, 2023						December 31, 2022
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Assets:
Reinsurance recoverables	$	—	$	(35)	$	(35)	$	—	$	(15)	$	(15)
Modified coinsurance receivable	—		(166)		(166)		—		(5,640)		(5,640)
Deposit asset	—		(131)		(131)		—		(1,989)		(1,989)
Liabilities:
Insurance liabilities	$	(230)	$	(332)	$	(562)	$	(421)	$	(7,644)	$	(8,065)

Changes in insurance liabilities attributable to the Company's own-credit risk are recorded in other comprehensive income (loss). Changes in the modified coinsurance payable are reported in Policyholder benefits and changes in fair value of insurance liabilities, however, they are not included in the above chart as they relate to the investment portfolio within the modified coinsurance agreement.

Fair Value of Financial Instruments

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.

	Successor Company
	June 30, 2023
	Fair Value								Carrying Amount
	Level 1		Level 2		Level 3		Total		Total
	(in millions)
Assets:
Accrued investment income	$	—	$	55	$	—	$	55	$	55
Other invested assets - Policy loans	—		—		11		11		11
Liabilities:
Repurchase agreements	$	—	$	403	$	—	$	403	$	403

	Successor Company
	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

39

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

7.    INCOME TAXES

The Company uses a full year projected effective tax rate approach to calculate taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected “Income tax expense (benefit)” divided by projected “Income (loss) from operations before income taxes”.

For the three months ended June 30, 2023, the Successor Company's income tax provision amounted to an income tax expense of approximately $25 million or 16.1 percent of income from operations before income taxes. For the six months ended June 30, 2023, the Successor Company's income tax provision amounted to an income tax expense of approximately $25 million or 15.4 percent of income from operations before income taxes. The effective tax rate for the Successor Company differed from the U.S. statutory tax rate of 21 percent in each period due primarily to non-taxable investment income and a decrease to the valuation allowance on deferred tax assets, as discussed further below.

For the three months ended June 30, 2022, the Successor Company's income tax provision amounted to an income tax benefit of $51 million or 22.2 percent of loss from operations before income tax. The effective tax rate differed from the U.S. statutory tax rate of 21 percent primarily due to non-taxable investment income and tax credits.

For the three months ended March 31, 2022, the Predecessor Company's income tax provision amounted to an income tax expense of $77 million or 17.8 percent of income from operations before income tax. The effective tax rate differed from the U.S. statutory tax rate of 21 percent primarily due to non-taxable investment income and tax credits.

Valuation Allowance on Deferred Tax Assets

The application of U.S. GAAP requires the evaluation of the recoverability of deferred tax assets and establishment of a valuation allowance, if necessary, to reduce the deferred tax asset to an amount that is more likely than not expected to be realized, including an assessment of the character of future income necessary to realize a deferred tax asset. As of June 30, 2023 and December 31, 2022, the Company had a valuation allowance of $35 million and $37 million, respectively, regarding realized and unrealized capital losses on our fixed maturity securities portfolio. A portion of the deferred tax asset relates to unrealized capital losses for which the carryforward period has not yet begun, and as such, when assessing its recoverability, we consider our ability and intent to hold the underlying securities to recovery. The amount of the deferred tax asset considered realizable may be adjusted if projections of future taxable income, including the character of that taxable income during the requisite carryforward period, are updated or if objective negative evidence exists that outweighs the positive evidence. The decrease in the valuation allowance from December 31, 2022 to June 30, 2023 is due to the continued recovery of unrealized capital losses on our fixed maturity securities portfolio.

8.    EQUITY

Additional Paid-in Capital

During the three months ended March 31, 2023, the Company established a $45 million distribution payable to its parent company, FGH, as a result of updated information regarding certain tax assets related to the acquisition of FLIAC, which resulted in an offsetting reduction to "Additional paid-in capital". The distribution payable was settled during the second quarter of 2023.

Accumulated Other Comprehensive Income (Loss)

AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Consolidated Statements of Operations and Comprehensive Income (Loss).

As discussed in Note 1, we have elected to apply push-down accounting to FLIAC at the acquisition date, April 1, 2022. As part of this election, accumulated unrealized gains and losses that were previously recorded in AOCI were reset to zero at the acquisition date. In addition, as discussed in Note 2, we have elected to apply the fair value option on our entire portfolio of fixed maturity securities. As a result, all unrealized gains and losses related to our fixed maturity securities are recorded through earnings rather than AOCI. As discussed in Note 5, we have de-designated the hedging relationship for all of our derivative instruments. Accordingly, all changes in our derivative instruments are recorded through earnings.

40

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

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

	Successor Company
	Changes in Own-Credit Risk Related to Insurance Liabilities
	(in millions)
Balance, December 31, 2022	$	111
Change in OCI	22
Less: Income tax expense	5
Balance, March 31, 2023	$	128
Change in OCI	(115)
Less: Income tax benefit	(25)
Balance, June 30, 2023	$	38

	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

(1)Includes cash flow hedges of $29 million as of March 31, 2022.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

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

(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 5 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.

41

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

Net Unrealized Investment Losses

Net unrealized investment losses on available-for-sale fixed maturity securities and certain other invested assets and other assets were included in the Predecessor Company’s Statements of Financial Position as a component of AOCI. Changes in these amounts included reclassification adjustments to exclude from OCI those items that were included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts indicated below, split between amounts related to net unrealized investment 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 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	$	(15)	$	(7)	$	(47)	$	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)	$	(6)	$	(1)	$	71	$	(272)

(1)Includes cash flow hedges. See Note 5 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.

9.    COMMITMENTS AND CONTINGENT LIABILITIES

Commitments

As of June 30, 2023, the outstanding balance on commitments for mortgage and other loans was $171 million. These amounts include unfunded commitments that are not unconditionally cancellable. The Company also made commitments to purchase or fund investments, mostly private fixed maturity securities and alternative investments. As of June 30, 2023, $374 million of these commitments were outstanding. These amounts include unfunded commitments that are not unconditionally cancellable. See Note 10 for further information regarding certain commitments to related parties.

Contingent Liabilities

On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.

The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “Litigation and Regulatory Matters” below.

It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position.

42

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

Litigation and Regulatory Matters

The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain.

The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of June 30, 2023, the aggregate range of reasonably possible losses in excess of accruals and recoveries from unaffiliated indemnitors established for those litigation and regulatory matters for which such an estimate currently can be made is not considered to be material. This estimate is not an indication of expected loss, if any, or the Company’s maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews.

Regulatory

Variable Products

Prior to its acquisition by FGH on April 1, 2022, the Company has received regulatory inquiries and requests for information from state and federal regulators, including a subpoena from the U.S. Securities and Exchange Commission, concerning the appropriateness of variable product sales and replacement activity. The Company is cooperating with regulators and may become subject to additional regulatory inquiries and other actions related to this matter.

Summary

The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial statements. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial statements.

43

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

10.    RELATED PARTY TRANSACTIONS

Successor Company

The Successor Company has transactions and relationships with affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties.

Expense Charges and Allocations

The majority of the Successor Company’s expenses are allocations or charges from FGH. These expenses primarily relate to general and administrative expenses which include accounting, actuarial, risk management, and data processing services. FGH also provides the Company with personnel and certain other services. The allocation of costs for other services are based on estimated level of usage, transactions or time incurred in providing the respective services. During the three and six months ended June 30, 2023, FLIAC was allocated $9 million and $17 million of costs for these services. During the three months ended June 30, 2022, FLIAC was allocated $7 million of costs for these services.

Intercompany Liquidity Agreement

FLIAC entered into an intercompany liquidity agreement with FGH. This agreement has a $300 million revolving capacity that allows the Successor Company to borrow funds to meet its short-term liquidity and other capital needs. During the three months ended June 30, 2023, the Company borrowed $80 million of funds under the agreement which was outstanding at the end of the quarter. The funds have subsequently been repaid in full, plus interest, in July 2023. In August 2023, the Successor Company borrowed an additional $82 million that is currently outstanding. Including this latest borrowing, the Company has borrowed a total of $282 million of funds under the agreement during 2023.

Affiliated Investment and Advisory Activities

As of April 1, 2022, FLIAC became affiliated with The Carlyle Group Inc. (“Carlyle”), whereby Carlyle, through an affiliated investment fund has a 71.3% equity investment in its parent, FGH. In addition, FLIAC entered into an investment management and consulting services agreement with an affiliate of Carlyle. During the three months ended June 30, 2022, FLIAC incurred $10 million of costs from this Carlyle affiliate for services provided to the Successor Company in connection with FGH's purchase of the Company from Prudential Financial.

Certain of Carlyle's affiliates also provide investment management services for FLIAC pursuant to investment management agreements. Investment management fees are charged based on a percentage of assets under management. As of June 30, 2023 and December 31, 2022, assets under management had a market value of $612 million and $732 million, respectively, and were comprised primarily of private credit fixed income assets and limited partnership interests or investments in limited partnerships. FLIAC recognized $6 million and $11 million of investment income on such assets during the three and six months ended June 30, 2023, respectively. FLIAC recognized $1 million of net investment income on such assets during the three months ended June 30, 2022.

In connection with the investment management agreements, as of June 30, 2023, FLIAC has unfunded commitments of $160 million to fund private investments where one or more Carlyle entities serves as general partner to the fund.

Affiliated Asset Transfers

The Successor Company may participate in affiliated asset transfers with its parent and affiliates. Book and market value differences for trades with its parent and affiliates are recognized within "Investment gains (losses), net". The table below shows affiliated asset trades for the six months ended June 30, 2023.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		Investment Gains (Losses), Net
				(in millions)
Fortitude Re Investments, LLC	May 2023	Sale	Limited Partnership	$	12	$	12	$	—
Fortitude Re Investments, LLC	May 2023	Sale	Limited Partnership	7		7		—

44

Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

Distribution to Parent

During the three months ended March 31, 2023, the Company established a $45 million distribution payable to its parent company, FGH, as a result of updated information regarding certain tax assets related to the acquisition of FLIAC, which resulted in an offsetting reduction to "Additional paid-in capital". The distribution payable was settled during the second quarter of 2023.

Predecessor Company

The Predecessor Company had extensive transactions and relationships with Prudential Insurance and other former affiliates. Although the Predecessor Company sought to ensure that these transactions and relationships were fair and reasonable, it is possible that the terms of these transactions were not the same as those that would result from transactions among unrelated parties.

Expense Charges and Allocations

The Predecessor Company’s expenses were allocations or charges from Prudential Insurance or other affiliates. These expenses were grouped into general and administrative expenses and agency distribution expenses.

The Predecessor Company’s general and administrative expenses were charged using allocation methodologies based on business production processes. The Predecessor Company operated under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space were provided by Prudential Insurance. The Predecessor Company reviewed its allocation methodology periodically and made adjustments accordingly.

The Predecessor Company paid commissions and certain other fees to Prudential Annuities Distributors, Inc ("PAD"), an affiliate of the Predecessor Company, in consideration for PAD’s marketing and underwriting of the Company’s products. Commissions and fees were paid by PAD to broker-dealers who sold the Predecessor Company’s products. Commissions and fees paid by the Predecessor Company to PAD were $29 million for the three months ended March 31, 2022.

The Predecessor Company was charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity. The Predecessor Company’s share of corporate expenses was $9 million for three months ended March 31, 2022.

Affiliated Investment Management Expenses

The Predecessor Company paid investments management expenses in accordance with an agreement with PGIM, Inc. (“PGIM”), an affiliate of the Predecessor Company and investment manager to certain Predecessor Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $4 million for the three months ended March 31, 2022. These expenses were recorded as “Net investment income” in the Company's Unaudited Consolidated Interim Statements of Operations and Comprehensive Income (Loss).

Affiliated Asset Management and Service Fees

The Predecessor Company had a revenue sharing agreement with AST Investment Services, Inc. (“ASTISI”) and PGIM Investments LLC (“PGIM Investments”) whereby the Predecessor Company received fee income based on policyholders' separate account balances invested in the Advanced Series Trust and The Prudential Series Fund. Income received from ASTISI and PGIM Investments related to this agreement was $22 million for the three months ended March 31, 2022. These revenues were recorded as “Asset management and service fees” in the Company's Unaudited Consolidated Interim Statements of Operations and Comprehensive Income (Loss).

Derivative Trades

In its ordinary course of business, the Predecessor Company entered into OTC derivative contracts with an affiliate, Provident Global Funding, LLC (“PGF”). For these OTC derivative contracts, PGF had a substantially equal and offsetting position with an external counterparty. See Note 5 for additional information.

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Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

Affiliated Asset Transfers

The Predecessor Company participated in affiliated asset trades with former parent and sister companies. Book and market value differences for trades with a parent and sister were recognized within "Investment gains (losses), net". The table below shows affiliated asset trades for the three months ended March 31, 2022.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		Realized Investment Gain (Loss)
				(in millions)
Pruco Life	January 2022	Sale	Fixed Maturity Securities	4		5		(1)
Prudential Financial	January 2022	Sale	Commercial Mortgage Loan	29		30		(1)
Pruco Life	January 2022	Sale	Derivatives	—		—		—
Pruco Life	February 2022	Sale	Fixed Maturity Securities	129		138		(9)
Prudential Financial	March 2022	Sale	Fixed Maturity Securities	$	33	$	33	$	—

Contributed Capital and Dividends

Through March 31, 2022, the Predecessor Company did not receive any capital contributions.

In March 2022, the Predecessor Company had a return of capital in the amount of $306 million to PAI.

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Fortitude Life Insurance & Annuity Company

Notes to Unaudited Interim Consolidated Financial Statements

Reinsurance with Affiliates of Predecessor Company

Reinsurance amounts, included in the Predecessor Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss), were as follows:

	Three Months Ended March 31
	2022
	(in millions)
Premiums:
Direct	$	9
Ceded	(1)
Net premiums	8
Policy charges and fee income:
Direct	102
Ceded	(5)
Net policy charges and fee income	97
Asset management and service fees:
Direct	22
Ceded	(2)
Net asset management and service fees	20
Realized investment gains (losses), net:
Direct	312
Ceded	169
Realized investment gains (losses), net	481
Policyholders' benefits (including change in reserves):
Direct	31
Ceded	(5)
Net policyholders' benefits (including change in reserves)	26
Interest credited to policyholders’ account balances:
Direct	91
Ceded	(6)
Net interest credited to policyholders’ account balances	85
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization	(41)

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Prior to April 1, 2022, Fortitude Life Insurance & Annuity Company ("FLIAC" or the "Company"), which was previously named Prudential Annuities Life Assurance Corporation ("PALAC"), was a wholly-owned subsidiary of Prudential Annuities, Inc ("PAI"), an indirect wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential Financial"), a New Jersey Corporation. On April 1, 2022 PAI completed the sale of its equity interest in the Company to Fortitude Group Holdings, LLC ("FGH"). As a result, the Company is no longer an affiliate of Prudential Financial or any of its affiliates.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) addresses the financial condition of FLIAC as of June 30, 2023 and its results of operations for the three months ended June 30, 2023. The MD&A also addresses the results of operations of PALAC for the three months ended March 31, 2022 compared to the same prior year period. The Company's results of operations for the six months ended June 30, 2023 are not comparable with the same period of 2022 due to the election to apply push-down accounting to the Company following its acquisition by FGH. See "Accounting Policies & Pronouncements" for further information. You should read the following analysis of our financial condition and results of operations in conjunction with the MD&A, the “Risk Factors” section, and the audited Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as well as the statements under “Forward-Looking Statements”, and the Unaudited Interim Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.

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Overview

The Company was established in 1969 and has been a provider of annuity contracts for the individual market in the United States. The Company’s products have been sold primarily to individuals to provide for long-term savings and retirement needs and to address the economic impact of premature death, estate planning concerns and supplemental retirement income.

The Company has sold a wide array of annuities, including deferred and immediate variable annuities with (1) fixed interest rate allocation options, subject to a market value adjustment, that are registered with the United States Securities and Exchange Commission (the “SEC”), and (2) fixed-rate allocation options subject to a limited market value adjustment or no market value adjustment and not registered with the SEC. The Company ceased offering these products.

Novation of Ceded Business

In 2022, in accordance with applicable state law, a program was instituted to novate a significant portion of the Ceded Business policies from FLIAC to Pruco Life Insurance Company ("Pruco Life"). The program does not have an impact on total equity or net income but has resulted in the reduction of certain activity/balances associated with these policies. During the three and six months ended June 30, 2023, approximately $451 million and $458 million, respectively, of account value which generally approximates fair values of insurance liabilities, was transferred out of the Company as a result of the novation program. As of June 30, 2023, approximately 70 percent of account value in the Ceded Business has been novated since the acquisition of the Company on April 1, 2022.

Banking Receiverships

In 2023, multiple banks (such as Silicon Valley Bank, Signature Bank, and First Republic Bank) have been placed into receivership or acquired by another bank pursuant to the Federal Deposit Insurance Corporation’s regulatory authority. As of June 30, 2023, we did not have cash deposits or direct equity or fixed income general account investments in these banks.

Impact of a Changing Interest Rate Environment

As a financial services company, market interest rates are a key driver of our results of operations and financial condition. Changes in interest rates can affect our results of operations and/or our financial condition in several ways, including favorable or adverse impacts to:

•investment-related activity, including: investment income returns, net interest margins, net investment spread results, new money rates, mortgage loan prepayments and bond redemptions;

•the recoverability of deferred tax assets related to losses on our fixed maturity securities portfolio;

•hedging costs and other risk mitigation activities;

•insurance reserve levels and market experience true-ups;

•customer account values, including their impact on fee income;

•product design features, crediting rates and sales mix; and

•policyholder behavior, including surrender or withdrawal activity.

For more information on interest rate risks, see “Risk Factors—Market Risk” included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Revenues and Expenses

The Company earns revenues principally from contract fees, mortality and expense fees, and asset administration fees from annuity and investment products, all of which primarily result from the sale and servicing of annuity products. The Company also earns net investment income from the investment of general account and other funds. The Company’s operating expenses principally consist of annuity benefit guarantees provided, reserves established for anticipated future annuity benefit guarantees, and costs of managing risk related to these products. The Company's operating expenses also include interest credited to policyholders' account balances, general business expenses, reinsurance premiums, and commissions and other costs of selling and servicing the various products it sold.

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Accounting Policies & Pronouncements

Application of Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the application of accounting policies that often involve a significant degree of judgment. Management on an ongoing basis, reviews estimates and assumptions used in the preparation of financial statements. If management determines that modifications in assumptions and estimates are appropriate given current facts and circumstances, the Company’s results of operations and financial position as reported in the Unaudited Consolidated Interim Financial Statements could change significantly.

Following the acquisition of FLIAC, purchase accounting was applied to FGH's financial statements and we have elected to "push down" the basis to FLIAC in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations. The application of push-down accounting created a new basis of accounting for all assets and liabilities based on fair value at the date of acquisition. As a result, FLIAC's financial position, results of operations, and cash flows subsequent to the acquisition are not comparable with those prior to April 1, 2022, and therefore have been segregated to indicate pre-acquisition and post-acquisition periods. The pre-acquisition period through March 31, 2022 is referred to as the Predecessor Company. The post-acquisition period, April 1, 2022 and forward, includes the impact of push-down accounting and is referred to as the Successor Company.

Management believes the accounting policies relating to the following areas are most dependent on the application of estimates and assumptions and require management’s most difficult, subjective, or complex judgments:

•Insurance liabilities;

•Valuation of investments, including derivatives; and

•Taxes on income, including valuation allowances

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of an Accounting Standards Update ("ASU") to the ASC. We consider the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material.

Effective ASUs - June 30, 2023

ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB. This update became effective January 1, 2023 but is not applicable due to our election to adopt the fair value option on all of our insurance liabilities, which includes our separate account liabilities.

ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, was issued by the FASB. This update became effective January 1, 2023 but is not applicable due to our election to adopt the fair value option on financial instruments that are within the scope of this update.

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Segment and Product Overview

Our business is comprised of two major blocks of in-force policies, 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 Retained Business consists of variable annuity contracts originated between 1993 – 2010. These products allow the holder to direct investments into certain separate account funds to receive tax deferred build-up within the contract. Most of the contracts have optional living benefit riders, commonly known as guaranteed minimum withdrawal benefits, which entitle the holder to elect to withdraw a guaranteed amount from the contract while alive, irrespective of the balance in their separate account. Almost all of the contracts also offer a guaranteed amount payable to a beneficiary upon the death of the holder, which is commonly known as a guaranteed minimum death benefit.

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. The Ceded Business will continue to impact certain line items within the Company’s financial statements but will not have a material impact to stockholders’ equity or net income and will represent the economic impact of Prudential Insurance and Pruco Life.

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Changes in Financial Position

The following is a discussion regarding changes in the financial position of the Successor Company by reportable segment.

Retained Business

Assets increased approximately $0.5 billion to $27.1 billion at June 30, 2023 from $26.6 billion at December 31, 2022. The increase was primarily driven by an increase in separate account assets due to equity market appreciation and a net increase in cash and invested assets.

Liabilities increased approximately $0.5 billion to $25.5 billion at June 30, 2023 from $25.0 billion at December 31, 2022. The increase was primarily driven by higher separate account liabilities, corresponding to the increase in separate account assets, as discussed above. Also impacting the change between periods was an increase in other liabilities which was comprised of higher payables associated with investment purchases, the timing of repayment on intercompany liquidity borrowings, and an increase in our repurchase agreement liability. These increases were offset by a decline in the fair value of insurance liabilities resulting primarily from favorable equity market movements.

Equity was approximately $1.6 billion at both June 30, 2023 and December 31, 2022, with net income of $137 million partially offset by an increase in our own-credit risk (OCR) impact on the fair value of insurance liabilities, net of tax, of $73 million reflected in accumulated other comprehensive income. Also offsetting the impact of net income was a reduction in additional paid-in capital related to a $45 million distribution to FGH as a result of updated information regarding certain tax assets related to the acquisition of FLIAC.

Ceded Business

Assets decreased $0.5 billion to $4.5 billion at June 30, 2023 from $5.0 billion at December 31, 2022 due primarily to novation activity during the second quarter of 2023. See "Novation of Ceded Business" within the "Overview" section herein Item 2 for further information.

Liabilities decreased $0.5 billion to $4.5 billion at June 30, 2023 from $5.0 billion at December 31, 2022 due primarily to the above-mentioned novation activity during the second quarter of 2023.

There was no equity within our Ceded Business at both June 30, 2023 and December 31, 2022 as the assets are fully offset by the liabilities.

Results of Operations

As noted under Accounting Policies and Pronouncements, the Company's results of operations for the six months ended June 30, 2023 are not comparable with the same period of 2022. As a result, the following discussion regarding the results of operations of the Successor Company for this specific period will not be compared to previous period and will be based solely on activity for the period subsequent to the acquisition.

SUCCESSOR COMPANY

INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES

Three Months Comparison to Prior Period

Retained Business

Income from operations before income taxes was $155 million for the three months ended June 30, 2023 compared to a loss from operations before income taxes of $231 million for the three months ended June 30, 2022. The $386 million change was driven primarily by decreases in the fair value of insurance liabilities, excluding changes in OCR, due to favorable equity market movements that more than offset the equity-related investment losses in our derivatives portfolio.

Also contributing to the change in income (loss) from operations before income taxes were higher net investment income due to higher yields on invested assets, and lower general, administrative and other expenses due to acquisition-related expenses in

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2022 that did not recur.

Ceded Business

There was no impact to the income from operations before income taxes as all revenues and expenses are ceded to Prudential Insurance or Pruco Life.

Six Months Ended June 30, 2023

Retained Business

The income from operations before income taxes of $162 million was driven primarily by policy charges and fee income, net investment income, and decreases in the fair value of insurance liabilities, excluding changes in OCR, due primarily to favorable equity market movements. Partially offsetting the income from operations before income tax were investment losses on equity derivatives.

Ceded Business

There was no impact to the income from operations before income taxes as all revenues and expenses are ceded to Prudential Insurance or Pruco Life.

REVENUES, BENEFITS, AND EXPENSES

Three Months Comparison to Prior Period

Retained Business

Revenues were $(197) million for the three months ended June 30, 2023 compared to $82 million during the three months ended June 30, 2022. The $279 million decrease was primarily driven by investment losses on equity derivatives, partially offset by an increase in net investment income resulting from a higher yield on invested assets.

Benefits and expenses were $(352) million in the three months ended June 30, 2023 compared to $313 million during the three months ended June 30, 2022. The $665 million decrease was driven primarily by declines in the fair value of insurance liabilities, excluding changes in OCR, due primarily to favorable equity market movements. Also contributing to the decrease in benefits and expenses were lower general, administrative, and other expenses driven by acquisition-related expenses in 2022 that did not recur.

Ceded Business

There was no impact to the income from operations before income taxes as all revenues and expenses are ceded to Prudential Insurance or Pruco Life.

Six Months Ended June 30, 2023

Retained Business

Revenues were $36 million, driven primarily by policy charges and fee income and net investment income, partially offset by investment losses on equity derivatives.

Benefits and expenses were $(126) million, driven primarily by decreases in the fair value of insurance liabilities, excluding changes in OCR, due primarily to favorable equity market movements, partially offset by favorable equity market movements.

Ceded Business

There was no impact to the income from operations before income taxes as all revenues and expenses are ceded back to Prudential Insurance or Pruco Life.

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PREDECESSOR COMPANY

LOSS FROM OPERATIONS BEFORE INCOME TAXES

Three Months Comparison to Prior Period

Income (loss) from operations before income taxes decreased $2 billion from a gain of $2.4 million for the three months ended March 31, 2021 to a gain of $0.4 billion for the three months ended March 31, 2022, primarily driven by:

•Realized investment gains (losses), net decrease reflecting prior year's favorable impact related to the portions of our U.S. GAAP liability before NPR, that are excluded from our hedge targets driven by rising interest rates and favorable prior year equity market performance.

The following table provides the net impact to the Unaudited Interim Statements of Operations for the Predecessor Company, which is primarily driven by the changes in the U.S. GAAP embedded derivative liability and hedge positions under the Asset Liability Management ("ALM") strategy, and the related amortization of DAC and other costs.

	Three Months Ended March 31
	2022
	(in millions) (1)
U.S. GAAP embedded derivative and hedging positions
Change in value of U.S.GAAP liability, pre-NPR(2)	$	459
Change in the NPR adjustment	156
Change in fair value of hedge assets, excluding capital hedges(3)	(392)
Change in fair value of capital hedges(4)	39
Other	218
Realized investment gains (losses), net, and related adjustments	480
Market experience updates(5)	(57)
Charges related to realized investments gains (losses), net	(97)
Net impact from changes in the U.S. GAAP embedded derivative and hedge positions, after the impact of NPR, DAC and other costs(6)	$	326

(1) Positive amount represents income; negative amount represents a loss.

(2) Represents the change in the liability (excluding NPR) for our variable annuities which is measured utilizing a valuation                 methodology that is required under U.S. GAAP. This liability includes such items as risk margins which are required by U.S. GAAP but not included in our best estimate of the liability.

(3) Represents the changes in fair value of the derivatives utilized to hedge potential claims associated with our variable annuity living benefit guarantees.

(4) Represents the changes in fair value of equity derivatives of the capital hedge program intended to protect a portion of the overall capital position of our business against exposure to the equity markets.

(5) Represents the immediate impacts in current period results from changes in current market conditions on estimates of profitability.

(6) Excludes amounts from the changes in unrealized gains and losses from fixed income instruments recorded in OCI (versus net income) of $(70) million for the three months ended March 31, 2022.

For the three months ended March 31, 2022, the gain of $326 million was driven by a favorable impact related to the U.S. GAAP liability before NPR, net of change in fair value of hedge assets (excluding capital hedge) largely due to rising interest rates.

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REVENUES, BENEFITS, AND EXPENSES

Three Months Ended March 31, 2022

Revenues decreased $2.4 billion from a gain of $3.1 billion for the three months ended March 31, 2021 to a gain of $0.7 billion for the three months ended March 31, 2022 primarily driven by:

•Realized investment gains (losses), net decrease reflecting prior year's favorable impact related to the portions of our U.S. GAAP liability before NPR, that are excluded from our hedge targets driven by rising interest rates and favorable prior year equity market performance.

Income Taxes

For information regarding income taxes, see Note 7 to the Consolidated Unaudited Interim Financial Statements.

Liquidity and Capital Resources

This section supplements and should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Overview

Liquidity is a measure of a company’s ability to generate cash flows sufficient to meet the short-term and long-term cash requirements of the Company. Capital refers to the long-term financial resources available to support the operations of our business, fund business growth, and provide a cushion to withstand adverse circumstances. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of our business, general economic conditions, our ability to borrow and our access to capital markets.

Effective and prudent liquidity and capital management is a priority across the organization. Management monitors the liquidity of the Company on a daily basis and projects borrowing and capital needs over a multi-year time horizon. We use a Risk Appetite Framework ("RAF") to ensure that all risks taken by the Company aligns with our capacity and willingness to take those risks. The RAF provides a dynamic assessment of capital and liquidity stress impacts, including scenarios similar to, and more severe than, those occurring due to COVID-19, and is intended to ensure that sufficient resources are available to absorb those impacts. We believe that our capital and liquidity resources are sufficient to satisfy the capital and liquidity requirements of the Company.

Our businesses are subject to comprehensive regulation and supervision by domestic and international regulators. These regulations currently include requirements (many of which are the subject of ongoing rule-making) relating to capital, leverage, liquidity, stress-testing, overall risk management, credit exposure reporting and credit concentration. For information on these regulatory initiatives and their potential impact on us, see “Business - Regulation" and “Risk Factors” included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Capital

We manage FLIAC to regulatory capital levels and utilize the risk-based capital (“RBC”) ratio as a primary measure of capital adequacy. RBC is calculated based on statutory financial statements and risk formulas consistent with the practices of the National Association of Insurance Commissioners ("NAIC"). RBC considers, among other things, risks related to the type and quality of the invested assets, insurance-related risks associated with an insurer’s products and liabilities, equity market and interest rate risks and general business risks. RBC determines the minimum amount of capital required of an insurer to support its operations and underwriting coverage. The ratio of a company’s Total Adjusted Capital (TAC) to RBC is the corresponding RBC ratio. RBC ratio calculations are intended to assist insurance regulators in measuring an insurer’s solvency and ability to pay future claims. The reporting of RBC measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities, but is available to the public. The Company’s capital levels substantially exceed the minimum level required by applicable insurance regulations. Our regulatory capital levels may be affected in the future by changes to the applicable regulations, proposals for which are currently under consideration by both domestic and international insurance regulators.

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The regulatory capital level of the Company can be materially impacted by interest rate and equity market fluctuations, changes in the values of derivatives, the level of impairments recorded, and credit quality migration of the investment portfolio, among other items. In addition, the reinsurance of business or the recapture of business subject to reinsurance arrangements due to defaults by, or credit quality migration affecting, the reinsurers or for other reasons could negatively impact regulatory capital levels. The Company’s regulatory capital level is also affected by statutory accounting rules, which are subject to change by each applicable insurance regulator.

The Successor Company made a distribution of $45 million to its parent, FGH, during the six months ended June 30, 2023 after receiving updated information regarding certain tax assets related to the acquisition of FLIAC.

The Predecessor Company made distributions of $306 million to its parent, PAI, for the three months ended March 31, 2022.

Liquidity

Our liquidity is managed to ensure stable, reliable and cost-effective sources of cash flows to meet all of our obligations. Liquidity is provided by a variety of sources, as described more fully below, including portfolios of liquid assets. Our investment portfolios are integral to the overall liquidity of the Company. We use a projection process for cash flows from operations to ensure sufficient liquidity to meet projected cash outflows, including claims.

Liquidity is measured against internally-developed benchmarks that take into account the characteristics of both the asset portfolio and the liabilities that they support. We consider attributes of the various categories of liquid assets (for example, type of asset and credit quality) in calculating internal liquidity measures to evaluate our liquidity under various stress scenarios, including company-specific and market-wide events. We continue to believe that cash generated by ongoing operations and the liquidity profile of our assets provide sufficient liquidity under reasonably foreseeable stress scenarios.

The principal sources of the Company’s liquidity are premiums and certain annuity considerations, investment and fee income, investment maturities, sales of investments and borrowings from its parent and affiliates. The principal uses of that liquidity include benefits, claims, and payments to policyholders and contractholders in connection with surrenders, withdrawals and net policy loan activity. Other uses of liquidity include commissions, general and administrative expenses, purchases of investments, the payment of dividends and returns of capital to the parent company, hedging and reinsurance activity and payments in connection with financing activities.

In managing liquidity, we consider the risk of policyholder and contractholder withdrawals of funds earlier than our assumptions when selecting assets to support these contractual obligations. We also consider the risk of future collateral requirements under stressed market conditions in respect of the derivatives we utilize.

Liquid Assets

Liquid assets include cash and cash equivalents, short-term investments, fixed maturity securities, and public equity securities. As of June 30, 2023 and December 31, 2022, the Company had liquid assets of $5.7 billion and $6.1 billion, respectively, which includes $1.6 billion and $2.1 billion of modified coinsurance assets contained within the Ceded business, for each respective period. As of June 30, 2023 and December 31, 2022, the portion of liquid assets comprised of cash and cash equivalents and short-term investments was $0.7 billion and $0.9 billion, respectively. The decline between periods for each of these balances was driven by novation activity in the Ceded business. See "Novation of Ceded Business" within the "Overview" section herein Item 2 for further information.

FLIAC entered into an intercompany liquidity agreement with FGH. This agreement has a $300 million revolving capacity that allows the Successor Company to borrow funds to meet its short-term liquidity and other capital needs. During the three months ended June 30, 2023, the Company borrowed $80 million of funds under the agreement which was outstanding at the end of the quarter. The funds have subsequently been repaid in full, plus interest, in July 2023. In August 2023, the Successor Company borrowed an additional $82 million that is currently outstanding. Including this latest borrowing, the Company has borrowed a total of $282 million of funds under the agreement during 2023.

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Liquidity Regarding Hedging Activities

The hedging portion of our risk management strategy for the Retained Business is being managed within the Company. We enter into a range of exchange-traded, cleared, and other OTC derivatives in order to hedge market sensitive exposures against changes in certain capital market risks. The portion of the risk management strategy comprising the hedging portion requires access to liquidity to meet the Company's payment obligations relating to these derivatives, such as payments for periodic settlements, purchases, maturities and terminations. These liquidity needs can vary materially due to, among other items, changes in interest rates, equity markets, mortality, and policyholder behavior.

The hedging portion of the risk management strategy may also result in derivative-related collateral postings to (when we are in a net pay position) or from (when we are in a net receive position) counterparties. The net collateral position depends on changes in interest rates and equity markets related to the amount of the exposures hedged. Depending on market conditions, the collateral posting requirements can result in material liquidity needs when we are in a net pay position.

Repurchase Agreements and Securities Lending

In the normal course of business, we may enter into repurchase agreements and securities lending agreements with unaffiliated financial institutions, which are typically large or highly rated, to earn spread income and facilitate trading activity. Under these agreements, the Company transfers securities to the counterparty and receives cash as collateral. The cash received is generally invested in short-term investments or fixed maturity securities.

For repurchase agreements, a liability representing the amount that the securities will be repurchased is recorded in "Other liabilities" in our consolidated statement of financial position. For securities lending agreements, a liability representing the return of cash collateral is recorded in "Other liabilities" in our consolidated statement of financial position. As of June 30, 2023, the liabilities associated with our outstanding repurchase agreements were $403 million. There were no outstanding securities lending agreements as of June 30, 2023.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of June 30, 2023, there have been no material changes in our economic exposure to market risk from December 31, 2022, a description of which may be found in our Annual Report on Form 10-K for the year ended December 31, 2022, Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” filed with the SEC. See Item 1A, “Risk Factors” included in the Annual Report on Form 10-K for the year ended December 31, 2022, for a discussion of how difficult conditions in the financial markets and the economy generally may materially adversely affect our business and results of our operations.

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Item 4. Controls and Procedures

In order to provide reasonable assurance that the information we must disclose in our filings with the SEC is recorded, processed, summarized and reported on a timely basis, the Company’s management, including our Chief Executive Officer and Chief Financial Officer, has reviewed and evaluated the effectiveness of our disclosure controls and procedures, as defined in Securities Exchange Act of 1934, as amended (“Exchange Act”) Rule 15d-15(e), as of June 30, 2023. Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30, 2023 our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended June 30, 2023 which have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

See Note 9 to the Unaudited Interim Financial Statements under “Litigation and Regulatory Matters” for a description of certain pending litigation and regulatory matters affecting us, and certain risks to our business presented by such matters, which is incorporated herein by reference.

Item 1A. Risk Factors

You should carefully consider the risks described under “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. These risks could materially affect our business, results of operations or financial condition, or cause our actual results to differ materially from those expected or those expressed in any forward-looking statements made by, or on behalf of, the Company. These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under “Forward-Looking Statements” and the risks of our businesses described elsewhere in this Quarterly Report on Form 10-Q.

58

Item 6. Exhibits

EXHIBIT INDEX

31.1 Section 302 Certification of the Chief Executive Officer

31.2 Section 302 Certification of the Chief Financial Officer

32.1 Section 906 Certification of the Chief Executive Officer

32.2 Section 906 Certification of the Chief Financial Officer

101.INS - XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH - XBRL Taxonomy Extension Schema Document.

101.CAL - XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB - XBRL Taxonomy Extension Label Linkbase Document

101.PRE - XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF - XBRL Taxonomy Extension Definition Linkbase Document

104.Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

59

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FORTITUDE LIFE INSURANCE & ANNUITY COMPANY
By:	/s/ Kai Talarek
Name	Kai Talarek
	Senior Vice President and Chief Financial Officer
	(Authorized Signatory and Principal Financial Officer)

Date: August 10, 2023

60

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

I, Alon Neches, certifythat:

1.I have reviewed this Quarterly Report on Form 10-Q of Fortitude Life Insurance & Annuity Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 10, 2023

/s/ Alon Neches

Alon Neches

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

I, Kai Talarek, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Fortitude Life Insurance & Annuity Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 10, 2023

/s/ Kai Talarek

Kai Talarek

Senior Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. Section 1350, I, Alon Neches, President and Chief Executive Officer of Fortitude Life Insurance & Annuity Company (the “Company”), hereby certify that the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 10, 2023

/s/ Alon Neches

Alon Neches

President and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. Section 1350, I, Kai Talarek, Senior Vice President and Chief Financial Officer of Fortitude Life Insurance & Annuity Company (the “Company”), hereby certify that the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 10, 2023

/s/ Kai Talarek

Kai Talarek

Senior Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 10, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	033-44202
Entity Registrant Name	Fortitude Life Insurance & Annuity Co
Entity Incorporation, State or Country Code	AZ
Entity Tax Identification Number	06-1241288
Entity Address, Address Line One	Ten Exchange Place
Entity Address, Address Line Two	Suite 2210
Entity Address, City or Town	Jersey City
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07302
City Area Code	(615)
Local Phone Number	981-8801
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,000
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000881453
Current Fiscal Year End Date	--12-31

XML

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Assets
Fixed maturity securities, at fair value	$ 4,966,000,000	$ 5,024,000,000
Equity securities, at fair value (cost - June 30, 2023 - $0; December 31, 2022 - $201)	0	175,000,000
Mortgage and other loans, at fair value	229,000,000	196,000,000
Short-term investments	39,000,000	42,000,000
Other invested assets (includes $620 and $430 of assets measured at fair value at June 30, 2023 and December 31, 2022, respectively)	640,000,000	450,000,000
Total investments	5,874,000,000	5,887,000,000
Cash and cash equivalents	649,000,000	872,000,000
Accrued investment income	55,000,000	52,000,000
Reinsurance recoverables, at fair value	200,000,000	235,000,000
Net modified coinsurance receivable	0	18,000,000
Deposit asset, at fair value	476,000,000	607,000,000
Goodwill	93,000,000	93,000,000
Income tax	46,000,000	50,000,000
Other assets (Receivables from parent and affiliates: June 30, 2023 - $2; December 31, 2022 - $40)	83,000,000	127,000,000
Separate account assets, at fair value	24,065,000,000	23,601,000,000
Total assets	31,541,000,000	31,542,000,000
Liabilities:
Insurance liabilities, at fair value	4,984,000,000	5,546,000,000
Net modified coinsurance payable	81,000,000	0
Other liabilities (Payables to parent and affiliates: June 30, 2023 - $7; December 31, 2022 - $3)	805,000,000	808,000,000
Separate account liabilities, at fair value	24,065,000,000	23,601,000,000
Total liabilities	29,935,000,000	29,955,000,000
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 9)
EQUITY
Common stock, $100 par value; 25,000 shares authorized, issued and outstanding	3,000,000	3,000,000
Additional paid-in capital	1,714,000,000	1,759,000,000
Retained deficit	(149,000,000)	(286,000,000)
Accumulated other comprehensive income	38,000,000	111,000,000
Total equity	1,606,000,000	1,587,000,000
TOTAL LIABILITIES AND EQUITY	$ 31,541,000,000	$ 31,542,000,000

XML

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Equity securities, cost	$ 0	$ 201
Other invested assets, fair value	620	430
Other assets	83	127
Other liabilities	$ 805	$ 808
Common stock, par value (in dollars per share)	$ 100	$ 100
Common stock authorized (in shares)	25,000	25,000
Common stock issued (in shares)	25,000	25,000
Common stock outstanding (in shares)	25,000	25,000
Affiliated Entity
Other assets	$ 2	$ 40
Other liabilities	$ 7	$ 3

XML

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
REVENUES
Premiums	$ 7	$ 3	$ 8	$ 14
Policy charges and fee income	115	130	97	232
Net investment income	78	97	99	154
Asset management and service fees	23	22	20	45
Other income (loss)	3	1	(19)	4
Investment gains (losses), net	(287)	(1,298)	481	(122)
TOTAL REVENUES	(61)	(1,045)	686	327
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(255)	(870)		85
Policyholder benefits			26
Interest credited to policyholders account balances	0	0	85	0
Amortization of deferred policy acquisition costs	0	0	104	0
Commission expense	23	18	35	46
General, administrative and other expenses	16	38	3	34
TOTAL BENEFITS AND EXPENSES	(216)	(814)	253	165
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES	155	(231)	433	162
Income tax expense (benefit)	25	(51)	77	25
NET INCOME (LOSS)	130	(180)	356	137
Other comprehensive income (loss), before tax:
Changes in own-credit risk related to insurance liabilities	(115)	245	0	(93)
Net unrealized investment losses	0	0	(561)	0
Total	(115)	245	(561)	(93)
Less: Income tax expense (benefit) related to other comprehensive income (loss)	(25)	51	(118)	(20)
Other comprehensive income (loss), net of taxes	(90)	194	(443)	(73)
COMPREHENSIVE INCOME (LOSS)	$ 40	$ 14	$ (87)	$ 64

XML

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions	Total	Common   Stock	Additional   Paid-in Capital	Retained Deficit	Accumulated Other Comprehensive   Income
Beginning Balance at Dec. 31, 2021	$ 1,682	$ 3	$ 592	$ 917	$ 170
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Return of capital	(306)		(306)
Comprehensive income (loss):
Net income (loss)	356			356
Other comprehensive income (loss), net of taxes	(443)				(443)
Total comprehensive income (loss)	(87)
Ending Balance at Mar. 31, 2022	1,289	3	286	1,273	(273)
Comprehensive income (loss):
Net income (loss)	(180)
Other comprehensive income (loss), net of taxes	194
Ending Balance at Jun. 30, 2022	1,776	3	1,759	(180)	194
Beginning Balance at Apr. 01, 2022	1,762	3	1,759	0	0
Comprehensive income (loss):
Net income (loss)	(180)			(180)
Other comprehensive income (loss), net of taxes	194				194
Total comprehensive income (loss)	14
Ending Balance at Jun. 30, 2022	1,776	3	1,759	(180)	194
Beginning Balance at Dec. 31, 2022	1,587	3	1,759	(286)	111
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distribution to parent	(45)		(45)
Comprehensive income (loss):
Net income (loss)	7			7
Other comprehensive income (loss), net of taxes	17				17
Total comprehensive income (loss)	24
Ending Balance at Mar. 31, 2023	1,566	3	1,714	(279)	128
Beginning Balance at Dec. 31, 2022	1,587	3	1,759	(286)	111
Comprehensive income (loss):
Net income (loss)	137
Other comprehensive income (loss), net of taxes	(73)
Ending Balance at Jun. 30, 2023	1,606	3	1,714	(149)	38
Beginning Balance at Mar. 31, 2023	1,566	3	1,714	(279)	128
Comprehensive income (loss):
Net income (loss)	130			130
Other comprehensive income (loss), net of taxes	(90)				(90)
Total comprehensive income (loss)	40
Ending Balance at Jun. 30, 2023	$ 1,606	$ 3	$ 1,714	$ (149)	$ 38

XML

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended					6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 130	$ 7	$ (180)	$ (180)	$ 356	$ 137
Adjustments to reconcile net income (loss) to net cash from (used in) operating activities:
Investment (gains) losses, net	287			1,298	(481)	122
Interest credited to policyholder account balances				0	85	0
Other, net				(6)	2	(22)
Change in:
Insurance liabilities, at fair value				(2,149)	0	(552)
Deposit asset, at fair value				457	0	131
Net modified coinsurance receivable/payable, at fair value				601	0	442
Future policy benefits				0	60	0
Accrued investment income				(10)	1	(6)
Net receivables from/payables to parent and affiliates				0	(37)	0
Deferred policy acquisition costs				0	104	0
Income taxes				228	142	23
Reinsurance recoverables, net				(34)	(39)	35
Derivatives, net				303	(1,079)	(342)
Other, net				(39)	(3)	(8)
Cash flows from (used in) operating activities				469	(889)	(40)
Proceeds from the sale/maturity/prepayment of:
Fixed maturity securities, at fair value				2,295	0	227
Fixed maturity securities, available-for-sale				0	422	0
Equity securities				0	95	0
Mortgage and other loans				0	39	49
Other invested assets				3	1	30
Short-term investments				263	795	61
Payments for the purchase/origination of:
Fixed maturity securities, at fair value				(3,282)	0	(327)
Fixed maturity securities, available-for-sale				0	(751)	0
Equity securities				(10)	0	0
Mortgage and other loans				0	(13)	(87)
Other invested assets				0	0	(14)
Short-term investments				(6)	(94)	(69)
Derivatives, net				0	3	0
Other, net				14	0	13
Cash flows from (used in) investing activities				(723)	497	(117)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net policyholder's account deposits (withdrawals)				(62)	62	(103)
Cash collateral for loaned securities				(19)	205	(106)
Drafts outstanding				121	(7)	5
Repurchase agreements				200	0	103
Distribution to parent				0	(306)	(45)
Cash flows from (used in) financing activities				240	(46)	(66)
NET DECREASE IN CASH AND CASH EQUIVALENTS				(14)	(438)	(223)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		$ 872		1,578	2,016	872	$ 2,016
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 649		$ 1,564	1,564	1,578	649	$ 1,564
Short-term borrowings from parent				$ 0	$ 0	$ 80

XML

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023
Net modified coinsurance receivable/payable, at fair value	$ (601)	$ (442)
Ceded Business
Novations, investments	811	343
Net modified coinsurance receivable/payable, at fair value	$ (811)	$ (343)

XML

BUSINESS AND BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BUSINESS AND BASIS OF PRESENTATION

BUSINESS AND BASIS OF PRESENTATION

Fortitude Life Insurance & Annuity Company and its wholly-owned subsidiary (collectively, “FLIAC” or the “Company”), with its principal offices in Jersey City, New Jersey, is a wholly-owned subsidiary of Fortitude Group Holdings, LLC (“FGH”). Prior to April 1, 2022, the Company (previously named Prudential Annuities Life Assurance Corporation ("PALAC")) was a wholly-owned subsidiary of Prudential Annuities, Inc ("PAI"), an indirect wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential Financial"), a New Jersey Corporation. On April 1, 2022, PAI completed the sale of its equity interest in the Company to FGH. As a result, the Company is no longer an affiliate of Prudential Financial or any of its affiliates. See Basis of Presentation below and Note 1 in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information regarding the acquisition.

Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The accompanying Unaudited Consolidated Financial Statements present the consolidated results of operations, financial condition, and cash flows of the Successor Company and a variable interest entity ("VIE") that meets the requirements for consolidation. All intercompany transactions have been eliminated in consolidation. The financial statements of the Predecessor Company were not consolidated as it was a single entity prior to acquisition.

Following the acquisition of FLIAC, purchase accounting was applied to FGH's financial statements and we elected to "push down" the basis to FLIAC in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations. The application of push-down accounting created a new basis of accounting for all assets and liabilities based on fair value at the date of acquisition. As a result, FLIAC's financial position, results of operations, and cash flows subsequent to the acquisition are not comparable with those prior to April 1, 2022, and therefore have been segregated to indicate pre-acquisition and post-acquisition periods. The pre-acquisition period through March 31, 2022 is referred to as the Predecessor Company. The post-acquisition period, April 1, 2022 and forward, includes the impact of push-down accounting and is referred to as the Successor Company. See Notes 1 and 2 in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information regarding the acquisition and our application of push-down accounting.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Novation of Ceded Business

In 2022, in accordance with applicable state law, a program was instituted to novate a significant portion of the Ceded Business policies from FLIAC to Pruco Life Insurance Company ("Pruco Life"). The program does not have an impact on total equity or net income but has resulted in the reduction of certain activity/balances associated with these policies. During the three and six months ended June 30, 2023, approximately $451 million and $458 million, respectively, of account value which generally approximates fair values of insurance liabilities, was transferred out of the Company as a result of the novation program. As of June 30, 2023, approximately 70 percent of account value in the Ceded Business has been novated since the acquisition of the Company on April 1, 2022.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to the current period presentation.

XML

SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS

Accounting Policy Election

Fair Value Option

We have elected to prospectively apply the fair value option to several of FLIAC's assets and liabilities. We have made this election as it improves our operational efficiency and better aligns the recognition and measurement of our investments, insurance liabilities, and associated reinsurance activity with how we expect to manage the business. See Note 6 herein and Notes 2 and 6 in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information.

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of an Accounting Standards Update ("ASU") to the ASC. We consider the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material.

Effective ASUs - June 30, 2023

ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB. This update became effective January 1, 2023 but is not applicable due to our election to adopt the fair value option on all of our insurance liabilities, which includes our separate account liabilities.

ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, was issued by the FASB. This update became effective January 1, 2023 but is not applicable due to our election to adopt the fair value option on financial instruments that are within the scope of this update.

XML

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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 June 30, 2023 and December 31, 2022, we had a modified coinsurance payable of $1,678 million and $1,745 million, respectively, equal to the assets held in the Ceded Business, and are included in the net modified coinsurance receivable/payable. Information prior to acquisition 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:

	June 30, 2023
	Retained Business		Ceded Business		Total
	(in millions)
ASSETS
Total investments	$	4,486	$	1,388	$	5,874
Cash and cash equivalents	351		298		649
Accrued investment income	45		10		55
Reinsurance recoverables	—		200		200
Deposit asset	—		476		476
Goodwill	93		—		93
Income tax	46		—		46
Other assets	70		13		83
Separate account assets	21,981		2,084		24,065
TOTAL ASSETS	$	27,072	$	4,469	$	31,541
LIABILITIES AND EQUITY
LIABILITIES
Insurance liabilities	$	2,711	$	2,273	$	4,984
Net modified coinsurance payable	—		81		81
Other liabilities	774		31		805
Separate account liabilities	21,981		2,084		24,065
TOTAL LIABILITIES	25,466		4,469		29,935
EQUITY	1,606		—		1,606
TOTAL LIABILITIES AND EQUITY	$	27,072	$	4,469	$	31,541

    

	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 June 30, 2023
	Retained Business		Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	7	$	—	$	7
Policy charges and fee income	115		—		115
Net investment income	58		20		78
Asset management and service fees	23		—		23
Other income	2		1		3
Investment gains (losses), net	(402)		115		(287)
TOTAL REVENUES	(197)		136		(61)
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(391)		136		(255)
Commission expense	23		—		23
General, administrative and other expenses	16		—		16
TOTAL BENEFITS AND EXPENSES	(352)		136		(216)
INCOME FROM OPERATIONS BEFORE INCOME TAXES	155		—		155
Income tax expense	25		—		25
NET INCOME	$	130	$	—	$	130
Other comprehensive loss, before tax:
Changes in own-credit risk related to insurance liabilities	(115)		—		(115)
Less: Income tax benefit	(25)		—		(25)
Other comprehensive loss, net of taxes	(90)		—		(90)
COMPREHENSIVE INCOME	$	40	$	—	$	40

	Six Months Ended June 30, 2023
	Retained Business		Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	14	$	—	$	14
Policy charges and fee income	232		—		232
Net investment income	114		40		154
Asset management and service fees	45		—		45
Other income	3		1		4
Investment gains (losses), net	(372)		250		(122)
TOTAL REVENUES	36		291		327
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(206)		291		85
Commission expense	46		—		46
General, administrative and other expenses	34		—		34
TOTAL BENEFITS AND EXPENSES	(126)		291		165
INCOME FROM OPERATIONS BEFORE INCOME TAXES	162		—		162
Income tax expense	25		—		25
NET INCOME	$	137	$	—	$	137
Other comprehensive loss, before tax:
Changes in own-credit risk related to insurance liabilities	(93)		—		(93)
Less: Income tax benefit	(20)		—		(20)
Other comprehensive loss, net of taxes	(73)		—		(73)
COMPREHENSIVE INCOME	$	64	$	—	$	64

	Three Months Ended June 30, 2022
	Retained Business			Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	3		$	—	$	3
Policy charges and fee income	130			—		130
Net investment income	35			62		97
Asset management and service fees	22			—		22
Other income	—			1		1
Investment losses, net	(108)			(1,190)		(1,298)
TOTAL REVENUES	82			(1,127)		(1,045)
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	257		—	(1,127)		(870)
Commission expense	18			—		18
General, administrative and other expenses	38			—		38
TOTAL BENEFITS AND EXPENSES	313			(1,127)		(814)
LOSS FROM OPERATIONS BEFORE INCOME TAXES	(231)			—		(231)
Income tax benefit	(51)			—		(51)
NET LOSS	$	(180)		$	—	$	(180)
Other comprehensive income, before tax:
Changes in own-credit risk related to insurance liabilities	245			—		245
Less: Income tax expense	51			—		51
Other comprehensive income, net of taxes	194			—		194
COMPREHENSIVE INCOME	$	14		$	—	$	14

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INVESTMENTS

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

INVESTMENTS

We have elected to apply the fair value option for FLIAC's entire portfolio of fixed maturity and equity securities and mortgage and other loans. The impact of the election has resulted in the following changes:

•Elimination of the "available-for-sale" designation on all fixed maturity securities, resulting in a change in the recording of unrealized gains and losses through "Investment gains, net" in the consolidated statement of income rather than in "Accumulated other comprehensive income" ("AOCI") as a component of equity in the consolidated statements of financial position;

•Elimination of the required allowance for current expected credit losses on applicable financial assets under ASC 326 - Financial Instruments - Credit Losses, which include fixed maturity securities designated as "available-for-sale" and mortgage and other loans; and

•Elimination of a significant portion of the required disclosures for available-for-sale securities and mortgage and other loans. These disclosures primarily relate to the amortized cost and unrealized gains and losses on available-for-sale securities. Disclosures for historical periods under the Predecessor Company are retained at the end of this note under "Predecessor Company".

SUCCESSOR COMPANY

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated.

	June 30, 2023						December 31, 2022
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
LPs/LLCs:
Equity method:
Private equity	$	—	$	4	$	4	$	—	$	4	$	4
Real estate-related	—		5		5		—		5		5
Subtotal equity method	—		9		9		—		9		9
Fair value:
Private equity	340		1		341		344		1		345
Total LPs/LLCs	340		10		350		344		10		354
Derivative instruments	156		123		279		85		—		85
Policy loans	11		—		11		11		—		11
Total other invested assets	$	507	$	133	$	640	$	440	$	10	$	450

Accrued Investment Income

The following table sets forth the composition of “Accrued investment income,” as of the dates indicated:

	June 30, 2023							December 31, 2022
	Retained Business			Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Fixed maturity securities	$	42		$	9	$	51	$	37	$	10	$	47
Mortgage and other loans	1			—		1		1		—		1
Other invested assets	1		—	—		1		—		—		—
Short-term investments and cash equivalents	1			1		2		3		1		4
Total accrued investment income	$	45		$	10	$	55	$	41	$	11	$	52

As of June 30, 2023, the aggregate fair value of mortgage and other loans that were 90 days or more past due and in non-accrual status was $3 million. The aggregate unpaid principal balance for these loans approximated fair value as of June 30, 2023. As of December 31, 2022, there were no mortgage and other loans that were 90 days or more past due or in non-accrual status.

Net Investment Income

The following tables set forth “Net investment income” by investment type, for the periods indicated:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Fixed maturities securities	$	51	$	13	$	64	$	98	$	27	$	125
Equity securities	—		1		1		—		2		2
Mortgage and other loans	4		—		4		8		—		8
Other invested assets	7		—		7		19		1		20
Short-term investments and cash equivalents	3		6		9		5		12		17
Gross investment income	65		20		85		130		42		172
Less: investment expenses	(7)		—		(7)		(16)		(2)		(18)
Net investment income	$	58	$	20	$	78	$	114	$	40	$	154

	Three Months Ended June 30, 2022
	Retained Business		Ceded Business		Total
	(in millions)
Fixed maturities securities	$	36	$	44	$	80
Equity securities	—		1		1
Secured receivable	—		11		11
Other invested assets	—		4		4
Short-term investments and cash equivalents	—		2		2
Gross investment income	36		62		98
Less: investment expenses	(1)		—		(1)
Net investment income	$	35	$	62	$	97

The activity above includes interest income related to fair value option investments, where applicable.

Investment Gains (Losses), Net 

The following tables set forth “Investment gains (losses), net” by investment type, for the periods indicated:

	Three Months Ended June 30, 2023
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	(61)	$	(2)	$	(63)	$	(12)	$	(8)	$	(20)	$	(73)	$	(10)	$	(83)
Equity securities	—		—		—		(2)		—		(2)		(2)		—		(2)
Derivatives	—		(339)		(339)		—		137		137		—		(202)		(202)
Total	$	(61)	$	(341)	$	(402)	$	(14)	$	129	$	115	$	(75)	$	(212)	$	(287)

	Six Months Ended June 30, 2023
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	95	$	(28)	$	67	$	9	$	(8)	$	1	$	104	$	(36)	$	68
Equity securities	—		—		—		5		—		5		5		—		5
Derivatives	—		(439)		(439)		—		244		244		—		(195)		(195)
Total	$	95	$	(467)	$	(372)	$	14	$	236	$	250	$	109	$	(231)	$	(122)

	Three Months Ended June 30, 2022
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	(295)	$	(71)	$	(366)	$	60	$	(338)	$	(278)	$	(235)	$	(409)	$	(644)
Secured receivable	—		—				—		(51)		(51)		—		(51)		(51)
Equity securities	—		—		—		(19)		—		(19)		(19)		—		(19)
Derivatives	—		258		258		—		(842)		(842)		—		(584)		(584)
Total	$	(295)	$	187	$	(108)	$	41	$	(1,231)	$	(1,190)	$	(254)	$	(1,044)	$	(1,298)

Repurchase Agreements and Securities Lending

In the normal course of business, FLIAC sells securities under agreements to repurchase and enters into securities lending transactions. These balances are recorded within Other liabilities in the unaudited interim consolidated statements of financial position.

The following table sets forth, by type, the securities that we have agreed to repurchase, all of which are contained in the Retained Business. The below amounts represent the cash received under the outstanding repurchase agreements.

	June 30, 2023								December 31, 2022
	Remaining Contractual Maturities of the Agreements
	Up to 30 days		30-90 days		Greater than 90 days		Total		Up to 30 days		30-90 days		Greater than 90 days		Total
	(in millions)
U.S. corporate public securities	$	201	$	100	$	102	$	403	$	111	$	200	$	—	$	311

The market value of the securities posted as collateral under the repurchase agreements was $423 million and $326 million as of June 30, 2023 and December 31, 2022, respectively.

The following table sets forth the remaining contractual maturities of the Successor Company's securities lending transactions by the security type that was loaned, all of which are contained in the Ceded Business. The amounts below represent the cash collateral received for the loaned securities.

	June 30, 2023								December 31, 2022
	Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 days		30-90 days		Total		Overnight & Continuous		Up to 30 days		30-90 days		Total
	(in millions)
Equity securities	$	—	$	—	$	—	$	—	$	106	$	—	$	—	$	106

There were no outstanding securities lending agreements at June 30, 2023. The market value of the securities loaned at December 31, 2022 was $103 million.

PREDECESSOR COMPANY

The following table sets forth the sources of proceeds and related investment losses for available-for-sale fixed maturity securities:

	Three months ended March 31
	2022
	(in millions)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	294
Proceeds from maturities/prepayments	108
Gross investment losses on sales and maturities	(21)

(1)Excludes activity from non-cash related proceeds due to the timing of trade settlements of $20 million for three months ended March 31, 2022.

Allowance for credit losses

The activity in the allowance for credit losses for fixed maturity securities, available-for-sale, was de minimis for the three months ended March 31, 2022.

The allowance for credit losses for mortgage and other loans declined by $1 million for the three months ended March 31, 2022. The decrease related to the improving credit environment.

See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information about the Predecessor Company’s methodology for developing the allowance for credit losses.

Net Investment Income

The following table sets forth “Net investment income” by investment type, for the periods indicated:

	Three Months Ended
	March 31, 2022
	(in millions)
Fixed maturities securities (1)	$	61
Equity securities	1
Mortgage and other loans	11
Other invested assets	29
Short-term investments and cash equivalents	1
Gross investment income	103
Less: investment expenses	(4)
Net investment income	$	99

(1)Includes fixed maturity securities classified as available-for-sale and trading.

Investment Gains, Net 

The following table sets forth “Investment gains, net” by investment type, for the periods indicated:

	Three Months Ended March 31, 2022
	(in millions)
Fixed maturity securities (1)	$	(21)
Derivatives	502
Total	$	481

(1)Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.

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DERIVATIVES AND HEDGING

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING

DERIVATIVES AND HEDGING

Types of Derivative Instruments and Derivative Strategies

The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include but are not necessarily limited to:

•Interest rate contracts: swaps, swaptions, futures, forwards, options, caps and floors

•Equity contracts: futures, options, and total return swaps

•Foreign exchange contracts: futures, options, forwards and swaps

•Credit contracts: single and index reference credit default swaps

See below for information on these contracts and the related strategies.

Interest Rate Contracts

Interest rate swaps, swaptions, and futures are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities and to hedge against changes in their values it owns or anticipates acquiring or selling.

Interest rate swaps may be attributed to specific assets or liabilities or to a portfolio of assets or liabilities. The Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount.

Swaptions are options that give the holder the right but not obligation to enter into a specified interest rate swap. The Company uses these instruments for protection against the direction of future interest rates. Swaptions are included in the interest rate swaps line item on the subsequent tables within this note.

In standardized exchange-traded interest rate futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values of underlying referenced investments. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange.

Equity Contracts

Equity options, total return swaps, and futures are used by the Company to manage its exposure to the equity markets which impacts the value of assets and liabilities it owns or anticipates acquiring or selling.

Equity options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range.

Total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and Secured Overnight Financing Rate ("SOFR") plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices.

In standardized exchange-traded equity futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values underlying referenced equity indices. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange.

Foreign Exchange Contracts

Currency derivatives, including currency swaps and forwards, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell.

Under currency forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated.

Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party.

Credit Contracts

The Company, primarily in the retained business, sells credit protection using credit derivatives in order to generate a credit spread for the benefit of the Company’s investment portfolio. In addition, the Company, primarily in the ceded business, has also purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio.

Primary Risks Managed and/or Accessed by Derivatives

The tables below provide a summary, by operating segment, of the gross notional amount and fair value of derivative contracts, by the primary underlying risks. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral.

	June 30, 2023						December 31, 2022
Primary Underlying Risk/Instrument Type	Gross Notional Values/Units		Fair Value				Gross Notional Values/Units		Fair Value
			Assets		Liabilities				Assets		Liabilities
	(in millions)
Retained Business
Interest Rate
Interest Rate Swaps	$	15,856	$	312	$	(520)	$	12,131	$	228	$	(553)
Currency/Interest Rate
Foreign Currency Swaps	103		9		—		100		11		—
Credit
Credit Default Swaps	520		8		—		520		5		—
Equity
Equity Futures	(2,002)		—		(57)		(1,737)		46		—
Total Return Swaps	1,079		2		(47)		—		24		(49)
Equity Options	4,046		184		(34)		3,286		118		—
Total Derivatives, Retained Business	19,602		515		(658)		14,300		432		(602)
Ceded Business
Interest Rate
Interest Rate Swaps	1,160		50		(16)		2,517		48		(117)
Currency/Interest Rate
Foreign Currency Swaps	46		4		—		48		6		—
Credit
Credit Default Swaps	70		2		—		71		1		—
Equity
Total Return Swaps	24		—		—		—		—		—
Equity Options	3,765		168		(85)		7,139		180		(356)
Total Derivatives, Ceded Business	5,065		224		(101)		9,775		235		(473)
Total Derivatives (1)	$	24,667	$	739	$	(759)	$	24,075	$	667	$	(1,075)

(1)     Recorded in “Other invested assets” and “Other liabilities” in the Consolidated Statements of Financial Position.

Offsetting Assets and Liabilities

The following table presents recognized derivative instruments that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position.

	June 30, 2023
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the  Statements of Financial Position		Net Amounts Presented in the Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives
Retained Business	$	156	$	—	$	156	$	(156)	$	—
Ceded Business	224		(101)		123		—		123
Total	$	380	$	(101)	$	279	$	(156)	$	123
Offsetting of Financial Liabilities:
Derivatives
Retained Business	$	299	$	(299)	$	—	$	—	$	—
Ceded Business	101		(101)		—		—		—
Total	$	400	$	(400)	$	—	$	—	$	—
Repurchase agreements	$	403	$	—	$	403	$	(403)	$	—

	December 31, 2022
`	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives
Retained Business	$	183	$	(98)	$	85	$	(85)	$	—
Ceded Business	235		(235)		—		—		—
Total	$	418	$	(333)	$	85	$	(85)	$	—
Offsetting of Financial Liabilities:
Derivatives
Retained Business	$	353	$	(353)	$	—	$	—	$	—
Ceded Business	473		(272)		201		—		201
Total	$	826	$	(625)	$	201	$	—	$	201
Repurchase agreements	$	311	$	—	$	311	$	(311)	$	—
Securities lending transactions	$	106	$	—	$	106	$	(103)	$	3

(1)Amounts exclude the excess of collateral received/pledged from/to the counterparty.

The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. FLIAC manages credit risk by (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review.

Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.

For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Classification of Derivatives Activity

As part of our application of push-down accounting in connection with the acquisition of the Company, we have de-designated the Predecessor Company's hedging relationships for all of our derivative instruments, and accordingly, any related accumulated unrealized gains and losses that were previously recorded in AOCI were reset to zero at the acquisition date. Historical information has not been restated under the updated segmentation and is not comparable following the change in ownership on April 1, 2022.

The following tables provide the financial statement classification and impact of derivatives, by segment.

	Successor Company
	Three Months Ended		Six Months Ended		Three Months Ended
	June 30, 2023				June 30, 2022
	Investment gains (losses), net
	(in millions)
Retained Business
Interest Rate	$	(77)	$	38	$	(445)
Credit	2		2		—
Equity	(264)		(479)		703
Total, Retained Business	(339)		(439)		258
Ceded Business
Interest Rate	36		67		(20)
Currency	—		—		2
Currency/Interest Rate	—		—		130
Credit	1		1		(6)
Equity	100		176		(948)
Total, Ceded Business	137		244		(842)
Total	$	(202)	$	(195)	$	(584)

	Predecessor Company
	Three Months Ended March 31, 2022
	Investment Gains, net		Net Investment Income		Other Income		Change in AOCI
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	1	$	1	$	2	$	4
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(527)		—		—		—
Currency/Interest Rate	(6)		—		—		—
Credit	(12)		—		—		—
Equity	59		—		—		—
Embedded Derivatives	986		—		—		—
Total Derivatives Not Qualifying as Hedge Accounting Instruments	500		—		—		—
Total	$	501	$	1	$	2	$	4

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FAIR VALUE OF ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE OF ASSETS AND LIABILITIES

FAIR VALUE OF ASSETS AND LIABILITIES

Fair Value Measurement – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.

Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs.

Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value.

For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 6 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Fair Value Option Election

We have elected to adopt the fair value option for several of our financial assets and liabilities. The following are the financial assets and liabilities for which we have elected the fair value option. See Notes 2 and 6 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information.

•Fixed maturity securities

•Equity securities

•Mortgage and other loans

•Reinsurance recoverable

•Separate account assets and liabilities

•Net modified coinsurance receivable/payable

•Deposit asset

•Insurance liabilities

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.

	Successor Company
	June 30, 2023
	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	$	—	$	527	$	—	$	—	$	527
Obligations of U.S. states and their political subdivisions	—		142		—		—		142
Foreign government bonds	—		5		—		—		5
U.S. corporate public securities	—		2,745		—		—		2,745
U.S. corporate private securities	—		144		210		—		354
Foreign corporate public securities	—		195		—		—		195
Foreign corporate private securities	—		31		37		—		68
Asset-backed securities (2)	—		472		208		—		680
Commercial mortgage-backed securities	—		17		—		—		17
Residential mortgage-backed securities	—		233		—		—		233
Total fixed maturity securities	—		4,511		455		—		4,966
Mortgage and other loans (3)	—		—		229		—		229
Short-term investments	—		39		—		—		39
Cash and cash equivalents	649		—		—		—		649
Other invested assets (4)	—		739		—		(460)		279
Deposit asset	—		—		476		—		476
Reinsurance recoverables	—		—		200		—		200
Subtotal excluding separate account assets	649		5,289		1,360		(460)		6,838
Separate account assets	—		24,065		—		—		24,065
Total assets	$	649	$	29,354	$	1,360	$	(460)	$	30,903
Liabilities
Insurance liabilities	$	—	$	—	$	4,984	$	—	$	4,984
Other liabilities - derivatives	57		702		—		(759)		—
Net modified coinsurance payable	—		—		81		—		81
Separate account liabilities	—		24,065		—		—		24,065
Total liabilities	$	57	$	24,767	$	5,065	$	(759)	$	29,130

(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)As of June 30, 2023, the difference between the aggregate fair value and the aggregate unpaid principal of mortgage and other loans was de minimis.

(4)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 June 30, 2023 the fair values of such investments were $341 million. See Note 4 for further details.

	Successor Company
	June 30, 2023
	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	$	—	$	454	$	—	$	—	$	454
Obligations of U.S. states and their political subdivisions	—		142		—		—		142
U.S. corporate public securities	—		2,046		—		—		2,046
U.S. corporate private securities	—		—		210		—		210
Foreign corporate public securities	—		138		—		—		138
Foreign corporate private securities	—		—		34		—		34
Asset-backed securities (2)	—		472		208		—		680
Commercial mortgage-backed securities	—		17		—		—		17
Residential mortgage-backed securities	—		28		—		—		28
Total fixed maturity securities	—		3,297		452		—		3,749
Mortgage and other loans	—		—		229		—		229
Cash and cash equivalents	351		—		—		—		351
Other invested assets(3)	—		515		—		(359)		156
Subtotal excluding separate account assets	351		3,812		681		(359)		4,485
Separate account assets	—		21,981		—		—		21,981
Total assets	$	351	$	25,793	$	681	$	(359)	$	26,466
Liabilities
Insurance liabilities	$	—	$	—	$	2,711	$	—	$	2,711
Other liabilities - derivatives	57		601		—		(658)		—
Separate account liabilities	—		21,981		—		—		21,981
Total liabilities	$	57	$	22,582	$	2,711	$	(658)	$	24,692

(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 June 30, 2023 the fair values of such investments were $340 million. See Note 4 for further details.

	Successor Company
	June 30, 2023
	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	$	—	$	73	$	—	$	—	$	73
Foreign government bonds	—		5		—		—		5
U.S. corporate public securities	—		699		—		—		699
U.S. corporate private securities	—		144		—		—		144
Foreign corporate public securities	—		57		—		—		57
Foreign corporate private securities	—		31		3		—		34
Residential mortgage-backed securities	—		205		—		—		205
Total fixed maturity securities	—		1,214		3		—		1,217
Short-term investments	—		39		—		—		39
Cash and cash equivalents	298		—		—		—		298
Other invested assets(3)	—		224		—		(101)		123
Deposit asset	—		—		476		—		476
Reinsurance recoverables	—		—		200		—		200
Subtotal excluding separate account assets	298		1,477		679		(101)		2,353
Separate account assets	—		2,084		—		—		2,084
Total assets	$	298	$	3,561	$	679	$	(101)	$	4,437
Liabilities
Insurance liabilities	$	—	$	—	$	2,273	$	—	$	2,273
Other liabilities - derivatives	—		101		—		(101)		—
Net modified coinsurance payable	—		—		81		—		81
Separate account liabilities	—		2,084		—		—		2,084
Total liabilities	$	—	$	2,185	$	2,354	$	(101)	$	4,438

(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 June 30, 2023 the fair values of such investments were $1 million. See Note 4 for further details.

	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 (3)	—		—		196		—		196
Short-term investments	—		42		—		—		42
Cash and cash equivalents	872		—		—		—		872
Other invested assets(4)	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)As of December 31, 2022, the difference between the aggregate fair value and the aggregate unpaid principal of mortgage and other loans was de minimis.

(4)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 $345 million, respectively. See Note 4 for further details.

	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
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.

	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 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 $1 million. See Note 4 for further details.

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.

	Successor Company
	June 30, 2023
	Fair Value		Valuation Techniques	Unobservable     Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair  Value(1)
	(in millions)
Assets:
Retained business
Fixed maturity securities
U.S. corporate private securities	$	178	Discounted cash flow	Discount rate	4.84	%	9.25	%	6.95	%	Decrease
	32		Trade price	Trade price	N/A		N/A		N/A		Increase
Total U.S. corporate private securities	210
Foreign corporate private securities	34		Discounted cash flow	Discount rate	5.11	%	7.16	%	5.38	%	Decrease
Asset-backed securities	80		Discounted cash flow	Discount rate	7.14	%	8.64	%	8.04	%	Decrease
	128		Trade price	Trade price	N/A		N/A		N/A		Increase
Total asset-backed securities	208
Mortgage and other loans
Residential mortgage loans	131		Level yield	Market yield	7.05	%	9.98	%	8.54	%	Decrease
	20		Trade price	Trade price	N/A		N/A		N/A		Increase
Commercial mortgage loans	78		Trade price	Trade price	N/A		N/A		N/A		Increase
Total Mortgage and other loans	229
Ceded business
Foreign corporate private securities	3		Discounted cash flow	Discount rate	7.81	%	7.81	%	7.81	%	Decrease
Deposit asset	476		Fair values are determined using the same unobservable inputs as insurance liabilities.
Reinsurance recoverables	200		Fair values are determined using the same unobservable inputs as insurance liabilities.
Liabilities:
Insurance liabilities
Retained business	$	2,711	Discounted cash flow	Equity volatility curve (2)	16	%	25	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.28	%			Decrease
				Utilization rate(5)	77	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Ceded business	2,273		Discounted cash flow	Equity volatility curve (2)	16	%	25	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.00	%			Decrease
				Utilization rate(5)	77	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Net modified coinsurance payable	81		Fair values are determined using the same unobservable inputs as insurance 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
Total Mortgage and other loans	196
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	$	2,941	Discounted cash flow	Equity volatility curve (2)	19.5	%	26	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.43	%			Decrease
				Utilization rate(5)	92.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Ceded business
Insurance liabilities	$	2,605	Discounted cash flow	Equity volatility curve (2)	19.5	%	26	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.21	%			Decrease
				Utilization rate(5)	92.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease

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

(2)    The equity volatility curve assumption is based on 1 year and 2 year index-specific at-the-money implied volatilities grading to 10 year total variance. Increased volatility increases the fair value of the liability.

(3)    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.

(4)    The spread over the risk-free rate swap curve represents the premium added to the proxy for the risk-free rate 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.

(5)    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. 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.

(6)    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 June 30, 2023 and 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%.

(7)    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.

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 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.

	Successor Company
	Three Months Ended June 30, 2023
	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(2)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	182	$	1	$	27	$	—	$	—	$	—	$	—	$	18	$	(18)	$	210	$	2
Foreign corporate private securities	36		(2)		—		—		—		—		—		—		—		34		(3)
Asset-backed securities	191		—		18		—		—		(1)		—		—		—		208		1
Mortgage and other loans
Residential mortgage loans	158		—		31		—		—		(38)		—		—		—		151		—
Commercial mortgage loans	48		—		30		—		—		—		—		—		—		78		—
Ceded Business
Foreign corporate private securities	—		—		5		—		—		(2)		—		—		—		3		—
Deposit asset	608		(10)		—		—		—		—		(122)		—		—		476		—
Reinsurance recoverables	247		(47)		—		—		—		—		—		—		—		200		—
Net modified coinsurance payable	(45)		(36)		—		—		—		—		—		—		—		(81)		—

	Successor Company
	Six Months Ended June 30, 2023
	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(2)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	146	$	1	$	46	$	—	$	—	$	(1)	$	—	$	18	$	—	$	210	$	1
Foreign corporate private securities	36		(2)		—		—		—		—		—		—		—		34		(2)
Asset-backed securities	155		(2)		56		—		—		(1)		—		—		—		208		(1)
Mortgage and other loans
Residential mortgage loans	161		—		44		—		—		(54)		—		—		—		151		—
Commercial mortgage loans	35		—		43		—		—		—		—		—		—		78		—
Ceded Business
Foreign corporate private securities	—		—		5		—		—		(2)		—		—		—		3		—
Deposit asset	607		(8)		—		—		—		—		(123)		—		—		476		—
Reinsurance recoverables	235		(35)		—		—		—		—		—		—		—		200		—
Net modified coinsurance receivable (payable)	18		(99)		—		—		—		—		—		—		—		(81)		—

	Successor Company
	Three Months Ended June 30, 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(2)
	(in millions)
Fixed maturities
Corporate securities(3)	$	190	$	(16)	$	207	$	—	$	—	$	(11)	$	(3)	$	—	$	(53)	$	314	$	(13)
Structured securities(4)	33		—		25		(10)		—		—		(10)		—		(13)		25		—
Other assets:
Secured receivable	1,622		(50)		—		(15)		—		—		(2)		—		—		1,555		—
Deposit asset	2,615		(457)		—		—		—		—		—		—		—		2,158		—
Reinsurance recoverables	344		34		—		—		—		—		—		—		—		378		—
Net modified coinsurance receivable	5		210		—		—		—		—		—		—		—		215		—

	Successor Company
	Three Months Ended June 30, 2023
			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	$	3,056	$	(354)	$	103	$	(189)	$	96	$	(1)	$	2,711
Ceded Business	2,695		(559)		143		(20)		14		—		2,273

	Successor Company
	Six Months Ended June 30, 2023
			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	$	2,941	$	(702)	$	235	$	46	$	196	$	(5)	$	2,711
Ceded Business	2,605		(625)		210		56		27		—		2,273

	Successor Company
	Three Months Ended June 30, 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	$	13,661	$	(1,654)	$	1,206	$	(1,520)	$	98	$	(534)	$	11,257

"Total realized and unrealized gains (losses)" related to our level 3 assets are included in earnings in Investment gains (losses). Activity related to our level 3 liabilities is primarily recognized in earnings within change in Policyholder benefits and changes in fair value of insurance liabilities with the exception of changes related to the Company's own-credit risk, which are included in "Change in fair value (discount rate)" above and recorded in other comprehensive income (loss).

	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(2)
	(in millions)
Fixed maturities, available-for-sale:
U.S. government	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Corporate securities(3)	190		(9)		5		(4)		—		(2)		—		—		—		180		(9)
Structured securities(4)	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(5)	(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(2)
	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	$	—	$	—	$	(12)	$	—	$	—	$	—	$	(12)
Other assets:
Other assets	(21)		—		—		—		(6)		—		—
Reinsurance recoverables	201		—		—		—		222		—		—
Liabilities:
Future policy benefits	715		—		—		—		686		—		—
Policyholders' account balances	124		—		—		—		89		—		—

(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.

(2)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.

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

(4)Includes asset-backed and residential mortgage-backed securities.

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

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 income 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. Policyholder 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:

	Successor Company
	June 30, 2023						December 31, 2022
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Assets:
Reinsurance recoverables	$	—	$	(35)	$	(35)	$	—	$	(15)	$	(15)
Modified coinsurance receivable	—		(166)		(166)		—		(5,640)		(5,640)
Deposit asset	—		(131)		(131)		—		(1,989)		(1,989)
Liabilities:
Insurance liabilities	$	(230)	$	(332)	$	(562)	$	(421)	$	(7,644)	$	(8,065)

Changes in insurance liabilities attributable to the Company's own-credit risk are recorded in other comprehensive income (loss). Changes in the modified coinsurance payable are reported in Policyholder benefits and changes in fair value of insurance liabilities, however, they are not included in the above chart as they relate to the investment portfolio within the modified coinsurance agreement.

Fair Value of Financial Instruments

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.

	Successor Company
	June 30, 2023
	Fair Value								Carrying Amount
	Level 1		Level 2		Level 3		Total		Total
	(in millions)
Assets:
Accrued investment income	$	—	$	55	$	—	$	55	$	55
Other invested assets - Policy loans	—		—		11		11		11
Liabilities:
Repurchase agreements	$	—	$	403	$	—	$	403	$	403

	Successor Company
	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

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INCOME TAXES

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company uses a full year projected effective tax rate approach to calculate taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected “Income tax expense (benefit)” divided by projected “Income (loss) from operations before income taxes”.

For the three months ended June 30, 2023, the Successor Company's income tax provision amounted to an income tax expense of approximately $25 million or 16.1 percent of income from operations before income taxes. For the six months ended June 30, 2023, the Successor Company's income tax provision amounted to an income tax expense of approximately $25 million or 15.4 percent of income from operations before income taxes. The effective tax rate for the Successor Company differed from the U.S. statutory tax rate of 21 percent in each period due primarily to non-taxable investment income and a decrease to the valuation allowance on deferred tax assets, as discussed further below.

For the three months ended June 30, 2022, the Successor Company's income tax provision amounted to an income tax benefit of $51 million or 22.2 percent of loss from operations before income tax. The effective tax rate differed from the U.S. statutory tax rate of 21 percent primarily due to non-taxable investment income and tax credits.

For the three months ended March 31, 2022, the Predecessor Company's income tax provision amounted to an income tax expense of $77 million or 17.8 percent of income from operations before income tax. The effective tax rate differed from the U.S. statutory tax rate of 21 percent primarily due to non-taxable investment income and tax credits.

Valuation Allowance on Deferred Tax Assets

The application of U.S. GAAP requires the evaluation of the recoverability of deferred tax assets and establishment of a valuation allowance, if necessary, to reduce the deferred tax asset to an amount that is more likely than not expected to be realized, including an assessment of the character of future income necessary to realize a deferred tax asset. As of June 30, 2023 and December 31, 2022, the Company had a valuation allowance of $35 million and $37 million, respectively, regarding realized and unrealized capital losses on our fixed maturity securities portfolio. A portion of the deferred tax asset relates to unrealized capital losses for which the carryforward period has not yet begun, and as such, when assessing its recoverability, we consider our ability and intent to hold the underlying securities to recovery. The amount of the deferred tax asset considered realizable may be adjusted if projections of future taxable income, including the character of that taxable income during the requisite carryforward period, are updated or if objective negative evidence exists that outweighs the positive evidence. The decrease in the valuation allowance from December 31, 2022 to June 30, 2023 is due to the continued recovery of unrealized capital losses on our fixed maturity securities portfolio.

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EQUITY

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

EQUITY

EQUITY

Additional Paid-in Capital

During the three months ended March 31, 2023, the Company established a $45 million distribution payable to its parent company, FGH, as a result of updated information regarding certain tax assets related to the acquisition of FLIAC, which resulted in an offsetting reduction to "Additional paid-in capital". The distribution payable was settled during the second quarter of 2023.

Accumulated Other Comprehensive Income (Loss)

AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Consolidated Statements of Operations and Comprehensive Income (Loss).

As discussed in Note 1, we have elected to apply push-down accounting to FLIAC at the acquisition date, April 1, 2022. As part of this election, accumulated unrealized gains and losses that were previously recorded in AOCI were reset to zero at the acquisition date. In addition, as discussed in Note 2, we have elected to apply the fair value option on our entire portfolio of fixed maturity securities. As a result, all unrealized gains and losses related to our fixed maturity securities are recorded through earnings rather than AOCI. As discussed in Note 5, we have de-designated the hedging relationship for all of our derivative instruments. Accordingly, all changes in our derivative instruments are recorded through earnings.

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

	Successor Company
	Changes in Own-Credit Risk Related to Insurance Liabilities
	(in millions)
Balance, December 31, 2022	$	111
Change in OCI	22
Less: Income tax expense	5
Balance, March 31, 2023	$	128
Change in OCI	(115)
Less: Income tax benefit	(25)
Balance, June 30, 2023	$	38

	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

(1)Includes cash flow hedges of $29 million as of March 31, 2022.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

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

(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 5 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 Losses

Net unrealized investment losses on available-for-sale fixed maturity securities and certain other invested assets and other assets were included in the Predecessor Company’s Statements of Financial Position as a component of AOCI. Changes in these amounts included reclassification adjustments to exclude from OCI those items that were included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts indicated below, split between amounts related to net unrealized investment 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 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	$	(15)	$	(7)	$	(47)	$	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)	$	(6)	$	(1)	$	71	$	(272)

(1)Includes cash flow hedges. See Note 5 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.

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COMMITMENTS AND CONTINGENT LIABILITIES

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

COMMITMENTS AND CONTINGENT LIABILITIES

Commitments

As of June 30, 2023, the outstanding balance on commitments for mortgage and other loans was $171 million. These amounts include unfunded commitments that are not unconditionally cancellable. The Company also made commitments to purchase or fund investments, mostly private fixed maturity securities and alternative investments. As of June 30, 2023, $374 million of these commitments were outstanding. These amounts include unfunded commitments that are not unconditionally cancellable. See Note 10 for further information regarding certain commitments to related parties.

Contingent Liabilities

On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines.

The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “Litigation and Regulatory Matters” below.

It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position.

Litigation and Regulatory Matters

The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain.

The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of June 30, 2023, the aggregate range of reasonably possible losses in excess of accruals and recoveries from unaffiliated indemnitors established for those litigation and regulatory matters for which such an estimate currently can be made is not considered to be material. This estimate is not an indication of expected loss, if any, or the Company’s maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews.

Regulatory

Variable Products

Prior to its acquisition by FGH on April 1, 2022, the Company has received regulatory inquiries and requests for information from state and federal regulators, including a subpoena from the U.S. Securities and Exchange Commission, concerning the appropriateness of variable product sales and replacement activity. The Company is cooperating with regulators and may become subject to additional regulatory inquiries and other actions related to this matter.

Summary

The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial statements. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial statements.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Successor Company

The Successor Company has transactions and relationships with affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties.

Expense Charges and Allocations

The majority of the Successor Company’s expenses are allocations or charges from FGH. These expenses primarily relate to general and administrative expenses which include accounting, actuarial, risk management, and data processing services. FGH also provides the Company with personnel and certain other services. The allocation of costs for other services are based on estimated level of usage, transactions or time incurred in providing the respective services. During the three and six months ended June 30, 2023, FLIAC was allocated $9 million and $17 million of costs for these services. During the three months ended June 30, 2022, FLIAC was allocated $7 million of costs for these services.

Intercompany Liquidity Agreement

FLIAC entered into an intercompany liquidity agreement with FGH. This agreement has a $300 million revolving capacity that allows the Successor Company to borrow funds to meet its short-term liquidity and other capital needs. During the three months ended June 30, 2023, the Company borrowed $80 million of funds under the agreement which was outstanding at the end of the quarter. The funds have subsequently been repaid in full, plus interest, in July 2023. In August 2023, the Successor Company borrowed an additional $82 million that is currently outstanding. Including this latest borrowing, the Company has borrowed a total of $282 million of funds under the agreement during 2023.

Affiliated Investment and Advisory Activities

As of April 1, 2022, FLIAC became affiliated with The Carlyle Group Inc. (“Carlyle”), whereby Carlyle, through an affiliated investment fund has a 71.3% equity investment in its parent, FGH. In addition, FLIAC entered into an investment management and consulting services agreement with an affiliate of Carlyle. During the three months ended June 30, 2022, FLIAC incurred $10 million of costs from this Carlyle affiliate for services provided to the Successor Company in connection with FGH's purchase of the Company from Prudential Financial.

Certain of Carlyle's affiliates also provide investment management services for FLIAC pursuant to investment management agreements. Investment management fees are charged based on a percentage of assets under management. As of June 30, 2023 and December 31, 2022, assets under management had a market value of $612 million and $732 million, respectively, and were comprised primarily of private credit fixed income assets and limited partnership interests or investments in limited partnerships. FLIAC recognized $6 million and $11 million of investment income on such assets during the three and six months ended June 30, 2023, respectively. FLIAC recognized $1 million of net investment income on such assets during the three months ended June 30, 2022.

In connection with the investment management agreements, as of June 30, 2023, FLIAC has unfunded commitments of $160 million to fund private investments where one or more Carlyle entities serves as general partner to the fund.

Affiliated Asset Transfers

The Successor Company may participate in affiliated asset transfers with its parent and affiliates. Book and market value differences for trades with its parent and affiliates are recognized within "Investment gains (losses), net". The table below shows affiliated asset trades for the six months ended June 30, 2023.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		Investment Gains (Losses), Net
				(in millions)
Fortitude Re Investments, LLC	May 2023	Sale	Limited Partnership	$	12	$	12	$	—
Fortitude Re Investments, LLC	May 2023	Sale	Limited Partnership	7		7		—

Distribution to Parent

During the three months ended March 31, 2023, the Company established a $45 million distribution payable to its parent company, FGH, as a result of updated information regarding certain tax assets related to the acquisition of FLIAC, which resulted in an offsetting reduction to "Additional paid-in capital". The distribution payable was settled during the second quarter of 2023.

Predecessor Company

The Predecessor Company had extensive transactions and relationships with Prudential Insurance and other former affiliates. Although the Predecessor Company sought to ensure that these transactions and relationships were fair and reasonable, it is possible that the terms of these transactions were not the same as those that would result from transactions among unrelated parties.

Expense Charges and Allocations

The Predecessor Company’s expenses were allocations or charges from Prudential Insurance or other affiliates. These expenses were grouped into general and administrative expenses and agency distribution expenses.

The Predecessor Company’s general and administrative expenses were charged using allocation methodologies based on business production processes. The Predecessor Company operated under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space were provided by Prudential Insurance. The Predecessor Company reviewed its allocation methodology periodically and made adjustments accordingly.

The Predecessor Company paid commissions and certain other fees to Prudential Annuities Distributors, Inc ("PAD"), an affiliate of the Predecessor Company, in consideration for PAD’s marketing and underwriting of the Company’s products. Commissions and fees were paid by PAD to broker-dealers who sold the Predecessor Company’s products. Commissions and fees paid by the Predecessor Company to PAD were $29 million for the three months ended March 31, 2022.

The Predecessor Company was charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity. The Predecessor Company’s share of corporate expenses was $9 million for three months ended March 31, 2022.

Affiliated Investment Management Expenses

The Predecessor Company paid investments management expenses in accordance with an agreement with PGIM, Inc. (“PGIM”), an affiliate of the Predecessor Company and investment manager to certain Predecessor Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $4 million for the three months ended March 31, 2022. These expenses were recorded as “Net investment income” in the Company's Unaudited Consolidated Interim Statements of Operations and Comprehensive Income (Loss).

Affiliated Asset Management and Service Fees

The Predecessor Company had a revenue sharing agreement with AST Investment Services, Inc. (“ASTISI”) and PGIM Investments LLC (“PGIM Investments”) whereby the Predecessor Company received fee income based on policyholders' separate account balances invested in the Advanced Series Trust and The Prudential Series Fund. Income received from ASTISI and PGIM Investments related to this agreement was $22 million for the three months ended March 31, 2022. These revenues were recorded as “Asset management and service fees” in the Company's Unaudited Consolidated Interim Statements of Operations and Comprehensive Income (Loss).

Derivative Trades

In its ordinary course of business, the Predecessor Company entered into OTC derivative contracts with an affiliate, Provident Global Funding, LLC (“PGF”). For these OTC derivative contracts, PGF had a substantially equal and offsetting position with an external counterparty. See Note 5 for additional information.

Affiliated Asset Transfers

The Predecessor Company participated in affiliated asset trades with former parent and sister companies. Book and market value differences for trades with a parent and sister were recognized within "Investment gains (losses), net". The table below shows affiliated asset trades for the three months ended March 31, 2022.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		Realized Investment Gain (Loss)
				(in millions)
Pruco Life	January 2022	Sale	Fixed Maturity Securities	4		5		(1)
Prudential Financial	January 2022	Sale	Commercial Mortgage Loan	29		30		(1)
Pruco Life	January 2022	Sale	Derivatives	—		—		—
Pruco Life	February 2022	Sale	Fixed Maturity Securities	129		138		(9)
Prudential Financial	March 2022	Sale	Fixed Maturity Securities	$	33	$	33	$	—

Contributed Capital and Dividends

Through March 31, 2022, the Predecessor Company did not receive any capital contributions.

In March 2022, the Predecessor Company had a return of capital in the amount of $306 million to PAI.

Reinsurance with Affiliates of Predecessor Company

Reinsurance amounts, included in the Predecessor Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss), were as follows:

	Three Months Ended March 31
	2022
	(in millions)
Premiums:
Direct	$	9
Ceded	(1)
Net premiums	8
Policy charges and fee income:
Direct	102
Ceded	(5)
Net policy charges and fee income	97
Asset management and service fees:
Direct	22
Ceded	(2)
Net asset management and service fees	20
Realized investment gains (losses), net:
Direct	312
Ceded	169
Realized investment gains (losses), net	481
Policyholders' benefits (including change in reserves):
Direct	31
Ceded	(5)
Net policyholders' benefits (including change in reserves)	26
Interest credited to policyholders’ account balances:
Direct	91
Ceded	(6)
Net interest credited to policyholders’ account balances	85
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization	(41)

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SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The accompanying Unaudited Consolidated Financial Statements present the consolidated results of operations, financial condition, and cash flows of the Successor Company and a variable interest entity ("VIE") that meets the requirements for consolidation. All intercompany transactions have been eliminated in consolidation. The financial statements of the Predecessor Company were not consolidated as it was a single entity prior to acquisition.

Following the acquisition of FLIAC, purchase accounting was applied to FGH's financial statements and we elected to "push down" the basis to FLIAC in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations. The application of push-down accounting created a new basis of accounting for all assets and liabilities based on fair value at the date of acquisition. As a result, FLIAC's financial position, results of operations, and cash flows subsequent to the acquisition are not comparable with those prior to April 1, 2022, and therefore have been segregated to indicate pre-acquisition and post-acquisition periods. The pre-acquisition period through March 31, 2022 is referred to as the Predecessor Company. The post-acquisition period, April 1, 2022 and forward, includes the impact of push-down accounting and is referred to as the Successor Company. See Notes 1 and 2 in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information regarding the acquisition and our application of push-down accounting.

In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Reclassifications

Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation.

Fair Value Option

Fair Value Option

We have elected to prospectively apply the fair value option to several of FLIAC's assets and liabilities. We have made this election as it improves our operational efficiency and better aligns the recognition and measurement of our investments, insurance liabilities, and associated reinsurance activity with how we expect to manage the business. See Note 6 herein and Notes 2 and 6 in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of an Accounting Standards Update ("ASU") to the ASC. We consider the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material.

Effective ASUs - June 30, 2023

ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB. This update became effective January 1, 2023 but is not applicable due to our election to adopt the fair value option on all of our insurance liabilities, which includes our separate account liabilities.

ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, was issued by the FASB. This update became effective January 1, 2023 but is not applicable due to our election to adopt the fair value option on financial instruments that are within the scope of this update.

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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

	June 30, 2023
	Retained Business		Ceded Business		Total
	(in millions)
ASSETS
Total investments	$	4,486	$	1,388	$	5,874
Cash and cash equivalents	351		298		649
Accrued investment income	45		10		55
Reinsurance recoverables	—		200		200
Deposit asset	—		476		476
Goodwill	93		—		93
Income tax	46		—		46
Other assets	70		13		83
Separate account assets	21,981		2,084		24,065
TOTAL ASSETS	$	27,072	$	4,469	$	31,541
LIABILITIES AND EQUITY
LIABILITIES
Insurance liabilities	$	2,711	$	2,273	$	4,984
Net modified coinsurance payable	—		81		81
Other liabilities	774		31		805
Separate account liabilities	21,981		2,084		24,065
TOTAL LIABILITIES	25,466		4,469		29,935
EQUITY	1,606		—		1,606
TOTAL LIABILITIES AND EQUITY	$	27,072	$	4,469	$	31,541

    

	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 June 30, 2023
	Retained Business		Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	7	$	—	$	7
Policy charges and fee income	115		—		115
Net investment income	58		20		78
Asset management and service fees	23		—		23
Other income	2		1		3
Investment gains (losses), net	(402)		115		(287)
TOTAL REVENUES	(197)		136		(61)
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(391)		136		(255)
Commission expense	23		—		23
General, administrative and other expenses	16		—		16
TOTAL BENEFITS AND EXPENSES	(352)		136		(216)
INCOME FROM OPERATIONS BEFORE INCOME TAXES	155		—		155
Income tax expense	25		—		25
NET INCOME	$	130	$	—	$	130
Other comprehensive loss, before tax:
Changes in own-credit risk related to insurance liabilities	(115)		—		(115)
Less: Income tax benefit	(25)		—		(25)
Other comprehensive loss, net of taxes	(90)		—		(90)
COMPREHENSIVE INCOME	$	40	$	—	$	40

	Six Months Ended June 30, 2023
	Retained Business		Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	14	$	—	$	14
Policy charges and fee income	232		—		232
Net investment income	114		40		154
Asset management and service fees	45		—		45
Other income	3		1		4
Investment gains (losses), net	(372)		250		(122)
TOTAL REVENUES	36		291		327
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(206)		291		85
Commission expense	46		—		46
General, administrative and other expenses	34		—		34
TOTAL BENEFITS AND EXPENSES	(126)		291		165
INCOME FROM OPERATIONS BEFORE INCOME TAXES	162		—		162
Income tax expense	25		—		25
NET INCOME	$	137	$	—	$	137
Other comprehensive loss, before tax:
Changes in own-credit risk related to insurance liabilities	(93)		—		(93)
Less: Income tax benefit	(20)		—		(20)
Other comprehensive loss, net of taxes	(73)		—		(73)
COMPREHENSIVE INCOME	$	64	$	—	$	64

	Three Months Ended June 30, 2022
	Retained Business			Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	3		$	—	$	3
Policy charges and fee income	130			—		130
Net investment income	35			62		97
Asset management and service fees	22			—		22
Other income	—			1		1
Investment losses, net	(108)			(1,190)		(1,298)
TOTAL REVENUES	82			(1,127)		(1,045)
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	257		—	(1,127)		(870)
Commission expense	18			—		18
General, administrative and other expenses	38			—		38
TOTAL BENEFITS AND EXPENSES	313			(1,127)		(814)
LOSS FROM OPERATIONS BEFORE INCOME TAXES	(231)			—		(231)
Income tax benefit	(51)			—		(51)
NET LOSS	$	(180)		$	—	$	(180)
Other comprehensive income, before tax:
Changes in own-credit risk related to insurance liabilities	245			—		245
Less: Income tax expense	51			—		51
Other comprehensive income, net of taxes	194			—		194
COMPREHENSIVE INCOME	$	14		$	—	$	14

Reconciliation of Assets from Segment to Consolidated

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

	June 30, 2023
	Retained Business		Ceded Business		Total
	(in millions)
ASSETS
Total investments	$	4,486	$	1,388	$	5,874
Cash and cash equivalents	351		298		649
Accrued investment income	45		10		55
Reinsurance recoverables	—		200		200
Deposit asset	—		476		476
Goodwill	93		—		93
Income tax	46		—		46
Other assets	70		13		83
Separate account assets	21,981		2,084		24,065
TOTAL ASSETS	$	27,072	$	4,469	$	31,541
LIABILITIES AND EQUITY
LIABILITIES
Insurance liabilities	$	2,711	$	2,273	$	4,984
Net modified coinsurance payable	—		81		81
Other liabilities	774		31		805
Separate account liabilities	21,981		2,084		24,065
TOTAL LIABILITIES	25,466		4,469		29,935
EQUITY	1,606		—		1,606
TOTAL LIABILITIES AND EQUITY	$	27,072	$	4,469	$	31,541

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INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated.

	June 30, 2023						December 31, 2022
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
LPs/LLCs:
Equity method:
Private equity	$	—	$	4	$	4	$	—	$	4	$	4
Real estate-related	—		5		5		—		5		5
Subtotal equity method	—		9		9		—		9		9
Fair value:
Private equity	340		1		341		344		1		345
Total LPs/LLCs	340		10		350		344		10		354
Derivative instruments	156		123		279		85		—		85
Policy loans	11		—		11		11		—		11
Total other invested assets	$	507	$	133	$	640	$	440	$	10	$	450

Accrued Investment Income

The following table sets forth the composition of “Accrued investment income,” as of the dates indicated:

	June 30, 2023							December 31, 2022
	Retained Business			Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Fixed maturity securities	$	42		$	9	$	51	$	37	$	10	$	47
Mortgage and other loans	1			—		1		1		—		1
Other invested assets	1		—	—		1		—		—		—
Short-term investments and cash equivalents	1			1		2		3		1		4
Total accrued investment income	$	45		$	10	$	55	$	41	$	11	$	52

Net Investment Income

The following tables set forth “Net investment income” by investment type, for the periods indicated:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Fixed maturities securities	$	51	$	13	$	64	$	98	$	27	$	125
Equity securities	—		1		1		—		2		2
Mortgage and other loans	4		—		4		8		—		8
Other invested assets	7		—		7		19		1		20
Short-term investments and cash equivalents	3		6		9		5		12		17
Gross investment income	65		20		85		130		42		172
Less: investment expenses	(7)		—		(7)		(16)		(2)		(18)
Net investment income	$	58	$	20	$	78	$	114	$	40	$	154

	Three Months Ended June 30, 2022
	Retained Business		Ceded Business		Total
	(in millions)
Fixed maturities securities	$	36	$	44	$	80
Equity securities	—		1		1
Secured receivable	—		11		11
Other invested assets	—		4		4
Short-term investments and cash equivalents	—		2		2
Gross investment income	36		62		98
Less: investment expenses	(1)		—		(1)
Net investment income	$	35	$	62	$	97

Net Investment Income

The following table sets forth “Net investment income” by investment type, for the periods indicated:

	Three Months Ended
	March 31, 2022
	(in millions)
Fixed maturities securities (1)	$	61
Equity securities	1
Mortgage and other loans	11
Other invested assets	29
Short-term investments and cash equivalents	1
Gross investment income	103
Less: investment expenses	(4)
Net investment income	$	99

(1)Includes fixed maturity securities classified as available-for-sale and trading.

Schedule of Realized Gain (Loss)

The following tables set forth “Investment gains (losses), net” by investment type, for the periods indicated:

	Three Months Ended June 30, 2023
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	(61)	$	(2)	$	(63)	$	(12)	$	(8)	$	(20)	$	(73)	$	(10)	$	(83)
Equity securities	—		—		—		(2)		—		(2)		(2)		—		(2)
Derivatives	—		(339)		(339)		—		137		137		—		(202)		(202)
Total	$	(61)	$	(341)	$	(402)	$	(14)	$	129	$	115	$	(75)	$	(212)	$	(287)

	Six Months Ended June 30, 2023
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	95	$	(28)	$	67	$	9	$	(8)	$	1	$	104	$	(36)	$	68
Equity securities	—		—		—		5		—		5		5		—		5
Derivatives	—		(439)		(439)		—		244		244		—		(195)		(195)
Total	$	95	$	(467)	$	(372)	$	14	$	236	$	250	$	109	$	(231)	$	(122)

	Three Months Ended June 30, 2022
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	(295)	$	(71)	$	(366)	$	60	$	(338)	$	(278)	$	(235)	$	(409)	$	(644)
Secured receivable	—		—				—		(51)		(51)		—		(51)		(51)
Equity securities	—		—		—		(19)		—		(19)		(19)		—		(19)
Derivatives	—		258		258		—		(842)		(842)		—		(584)		(584)
Total	$	(295)	$	187	$	(108)	$	41	$	(1,231)	$	(1,190)	$	(254)	$	(1,044)	$	(1,298)

The following table sets forth “Investment gains, net” by investment type, for the periods indicated:

	Three Months Ended March 31, 2022
	(in millions)
Fixed maturity securities (1)	$	(21)
Derivatives	502
Total	$	481

(1)Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading

Repurchase Agreements and Securities Lending

The following table sets forth, by type, the securities that we have agreed to repurchase, all of which are contained in the Retained Business. The below amounts represent the cash received under the outstanding repurchase agreements.

	June 30, 2023								December 31, 2022
	Remaining Contractual Maturities of the Agreements
	Up to 30 days		30-90 days		Greater than 90 days		Total		Up to 30 days		30-90 days		Greater than 90 days		Total
	(in millions)
U.S. corporate public securities	$	201	$	100	$	102	$	403	$	111	$	200	$	—	$	311

The following table sets forth the remaining contractual maturities of the Successor Company's securities lending transactions by the security type that was loaned, all of which are contained in the Ceded Business. The amounts below represent the cash collateral received for the loaned securities.

	June 30, 2023								December 31, 2022
	Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 days		30-90 days		Total		Overnight & Continuous		Up to 30 days		30-90 days		Total
	(in millions)
Equity securities	$	—	$	—	$	—	$	—	$	106	$	—	$	—	$	106

Sources of Fixed Maturity Proceeds, Realized Investment Gains (Losses), and Losses on Impairments

The following table sets forth the sources of proceeds and related investment losses for available-for-sale fixed maturity securities:

	Three months ended March 31
	2022
	(in millions)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	294
Proceeds from maturities/prepayments	108
Gross investment losses on sales and maturities	(21)

(1)Excludes activity from non-cash related proceeds due to the timing of trade settlements of $20 million for three months ended March 31, 2022.

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DERIVATIVES AND HEDGING (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The tables below provide a summary, by operating segment, of the gross notional amount and fair value of derivative contracts, by the primary underlying risks. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral.

	June 30, 2023						December 31, 2022
Primary Underlying Risk/Instrument Type	Gross Notional Values/Units		Fair Value				Gross Notional Values/Units		Fair Value
			Assets		Liabilities				Assets		Liabilities
	(in millions)
Retained Business
Interest Rate
Interest Rate Swaps	$	15,856	$	312	$	(520)	$	12,131	$	228	$	(553)
Currency/Interest Rate
Foreign Currency Swaps	103		9		—		100		11		—
Credit
Credit Default Swaps	520		8		—		520		5		—
Equity
Equity Futures	(2,002)		—		(57)		(1,737)		46		—
Total Return Swaps	1,079		2		(47)		—		24		(49)
Equity Options	4,046		184		(34)		3,286		118		—
Total Derivatives, Retained Business	19,602		515		(658)		14,300		432		(602)
Ceded Business
Interest Rate
Interest Rate Swaps	1,160		50		(16)		2,517		48		(117)
Currency/Interest Rate
Foreign Currency Swaps	46		4		—		48		6		—
Credit
Credit Default Swaps	70		2		—		71		1		—
Equity
Total Return Swaps	24		—		—		—		—		—
Equity Options	3,765		168		(85)		7,139		180		(356)
Total Derivatives, Ceded Business	5,065		224		(101)		9,775		235		(473)
Total Derivatives (1)	$	24,667	$	739	$	(759)	$	24,075	$	667	$	(1,075)

(1)     Recorded in “Other invested assets” and “Other liabilities” in the Consolidated Statements of Financial Position.

Offsetting Assets

The following table presents recognized derivative instruments that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position.

	June 30, 2023
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the  Statements of Financial Position		Net Amounts Presented in the Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives
Retained Business	$	156	$	—	$	156	$	(156)	$	—
Ceded Business	224		(101)		123		—		123
Total	$	380	$	(101)	$	279	$	(156)	$	123
Offsetting of Financial Liabilities:
Derivatives
Retained Business	$	299	$	(299)	$	—	$	—	$	—
Ceded Business	101		(101)		—		—		—
Total	$	400	$	(400)	$	—	$	—	$	—
Repurchase agreements	$	403	$	—	$	403	$	(403)	$	—

	December 31, 2022
`	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives
Retained Business	$	183	$	(98)	$	85	$	(85)	$	—
Ceded Business	235		(235)		—		—		—
Total	$	418	$	(333)	$	85	$	(85)	$	—
Offsetting of Financial Liabilities:
Derivatives
Retained Business	$	353	$	(353)	$	—	$	—	$	—
Ceded Business	473		(272)		201		—		201
Total	$	826	$	(625)	$	201	$	—	$	201
Repurchase agreements	$	311	$	—	$	311	$	(311)	$	—
Securities lending transactions	$	106	$	—	$	106	$	(103)	$	3

(1)Amounts exclude the excess of collateral received/pledged from/to the counterparty.

Offsetting Liabilities

The following table presents recognized derivative instruments that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position.

	June 30, 2023
	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the  Statements of Financial Position		Net Amounts Presented in the Statements of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives
Retained Business	$	156	$	—	$	156	$	(156)	$	—
Ceded Business	224		(101)		123		—		123
Total	$	380	$	(101)	$	279	$	(156)	$	123
Offsetting of Financial Liabilities:
Derivatives
Retained Business	$	299	$	(299)	$	—	$	—	$	—
Ceded Business	101		(101)		—		—		—
Total	$	400	$	(400)	$	—	$	—	$	—
Repurchase agreements	$	403	$	—	$	403	$	(403)	$	—

	December 31, 2022
`	Gross Amounts of Recognized Financial Instruments		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments/ Collateral(1)		Net Amount
	(in millions)
Offsetting of Financial Assets:
Derivatives
Retained Business	$	183	$	(98)	$	85	$	(85)	$	—
Ceded Business	235		(235)		—		—		—
Total	$	418	$	(333)	$	85	$	(85)	$	—
Offsetting of Financial Liabilities:
Derivatives
Retained Business	$	353	$	(353)	$	—	$	—	$	—
Ceded Business	473		(272)		201		—		201
Total	$	826	$	(625)	$	201	$	—	$	201
Repurchase agreements	$	311	$	—	$	311	$	(311)	$	—
Securities lending transactions	$	106	$	—	$	106	$	(103)	$	3

(1)Amounts exclude the excess of collateral received/pledged from/to the counterparty.

Derivative Instruments, Gain (Loss)

The following tables provide the financial statement classification and impact of derivatives, by segment.

	Successor Company
	Three Months Ended		Six Months Ended		Three Months Ended
	June 30, 2023				June 30, 2022
	Investment gains (losses), net
	(in millions)
Retained Business
Interest Rate	$	(77)	$	38	$	(445)
Credit	2		2		—
Equity	(264)		(479)		703
Total, Retained Business	(339)		(439)		258
Ceded Business
Interest Rate	36		67		(20)
Currency	—		—		2
Currency/Interest Rate	—		—		130
Credit	1		1		(6)
Equity	100		176		(948)
Total, Ceded Business	137		244		(842)
Total	$	(202)	$	(195)	$	(584)

	Predecessor Company
	Three Months Ended March 31, 2022
	Investment Gains, net		Net Investment Income		Other Income		Change in AOCI
	(in millions)
Derivatives Designated as Hedge Accounting Instruments:
Cash flow hedges
Currency/Interest Rate	$	1	$	1	$	2	$	4
Derivatives Not Qualifying as Hedge Accounting Instruments:
Interest Rate	(527)		—		—		—
Currency/Interest Rate	(6)		—		—		—
Credit	(12)		—		—		—
Equity	59		—		—		—
Embedded Derivatives	986		—		—		—
Total Derivatives Not Qualifying as Hedge Accounting Instruments	500		—		—		—
Total	$	501	$	1	$	2	$	4

XML

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

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

The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.

	Successor Company
	June 30, 2023
	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	$	—	$	527	$	—	$	—	$	527
Obligations of U.S. states and their political subdivisions	—		142		—		—		142
Foreign government bonds	—		5		—		—		5
U.S. corporate public securities	—		2,745		—		—		2,745
U.S. corporate private securities	—		144		210		—		354
Foreign corporate public securities	—		195		—		—		195
Foreign corporate private securities	—		31		37		—		68
Asset-backed securities (2)	—		472		208		—		680
Commercial mortgage-backed securities	—		17		—		—		17
Residential mortgage-backed securities	—		233		—		—		233
Total fixed maturity securities	—		4,511		455		—		4,966
Mortgage and other loans (3)	—		—		229		—		229
Short-term investments	—		39		—		—		39
Cash and cash equivalents	649		—		—		—		649
Other invested assets (4)	—		739		—		(460)		279
Deposit asset	—		—		476		—		476
Reinsurance recoverables	—		—		200		—		200
Subtotal excluding separate account assets	649		5,289		1,360		(460)		6,838
Separate account assets	—		24,065		—		—		24,065
Total assets	$	649	$	29,354	$	1,360	$	(460)	$	30,903
Liabilities
Insurance liabilities	$	—	$	—	$	4,984	$	—	$	4,984
Other liabilities - derivatives	57		702		—		(759)		—
Net modified coinsurance payable	—		—		81		—		81
Separate account liabilities	—		24,065		—		—		24,065
Total liabilities	$	57	$	24,767	$	5,065	$	(759)	$	29,130

(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)As of June 30, 2023, the difference between the aggregate fair value and the aggregate unpaid principal of mortgage and other loans was de minimis.

(4)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 June 30, 2023 the fair values of such investments were $341 million. See Note 4 for further details.

	Successor Company
	June 30, 2023
	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	$	—	$	454	$	—	$	—	$	454
Obligations of U.S. states and their political subdivisions	—		142		—		—		142
U.S. corporate public securities	—		2,046		—		—		2,046
U.S. corporate private securities	—		—		210		—		210
Foreign corporate public securities	—		138		—		—		138
Foreign corporate private securities	—		—		34		—		34
Asset-backed securities (2)	—		472		208		—		680
Commercial mortgage-backed securities	—		17		—		—		17
Residential mortgage-backed securities	—		28		—		—		28
Total fixed maturity securities	—		3,297		452		—		3,749
Mortgage and other loans	—		—		229		—		229
Cash and cash equivalents	351		—		—		—		351
Other invested assets(3)	—		515		—		(359)		156
Subtotal excluding separate account assets	351		3,812		681		(359)		4,485
Separate account assets	—		21,981		—		—		21,981
Total assets	$	351	$	25,793	$	681	$	(359)	$	26,466
Liabilities
Insurance liabilities	$	—	$	—	$	2,711	$	—	$	2,711
Other liabilities - derivatives	57		601		—		(658)		—
Separate account liabilities	—		21,981		—		—		21,981
Total liabilities	$	57	$	22,582	$	2,711	$	(658)	$	24,692

(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 June 30, 2023 the fair values of such investments were $340 million. See Note 4 for further details.

	Successor Company
	June 30, 2023
	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	$	—	$	73	$	—	$	—	$	73
Foreign government bonds	—		5		—		—		5
U.S. corporate public securities	—		699		—		—		699
U.S. corporate private securities	—		144		—		—		144
Foreign corporate public securities	—		57		—		—		57
Foreign corporate private securities	—		31		3		—		34
Residential mortgage-backed securities	—		205		—		—		205
Total fixed maturity securities	—		1,214		3		—		1,217
Short-term investments	—		39		—		—		39
Cash and cash equivalents	298		—		—		—		298
Other invested assets(3)	—		224		—		(101)		123
Deposit asset	—		—		476		—		476
Reinsurance recoverables	—		—		200		—		200
Subtotal excluding separate account assets	298		1,477		679		(101)		2,353
Separate account assets	—		2,084		—		—		2,084
Total assets	$	298	$	3,561	$	679	$	(101)	$	4,437
Liabilities
Insurance liabilities	$	—	$	—	$	2,273	$	—	$	2,273
Other liabilities - derivatives	—		101		—		(101)		—
Net modified coinsurance payable	—		—		81		—		81
Separate account liabilities	—		2,084		—		—		2,084
Total liabilities	$	—	$	2,185	$	2,354	$	(101)	$	4,438

(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 June 30, 2023 the fair values of such investments were $1 million. See Note 4 for further details.

	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 (3)	—		—		196		—		196
Short-term investments	—		42		—		—		42
Cash and cash equivalents	872		—		—		—		872
Other invested assets(4)	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)As of December 31, 2022, the difference between the aggregate fair value and the aggregate unpaid principal of mortgage and other loans was de minimis.

(4)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 $345 million, respectively. See Note 4 for further details.

	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
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.

	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 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 $1 million. See Note 4 for further details.

Policyholder 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:

	Successor Company
	June 30, 2023						December 31, 2022
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Assets:
Reinsurance recoverables	$	—	$	(35)	$	(35)	$	—	$	(15)	$	(15)
Modified coinsurance receivable	—		(166)		(166)		—		(5,640)		(5,640)
Deposit asset	—		(131)		(131)		—		(1,989)		(1,989)
Liabilities:
Insurance liabilities	$	(230)	$	(332)	$	(562)	$	(421)	$	(7,644)	$	(8,065)

Changes in insurance liabilities attributable to the Company's own-credit risk are recorded in other comprehensive income (loss). Changes in the modified coinsurance payable are reported in Policyholder benefits and changes in fair value of insurance liabilities, however, they are not included in the above chart as they relate to the investment portfolio within the modified coinsurance agreement.

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
	June 30, 2023
	Fair Value		Valuation Techniques	Unobservable     Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair  Value(1)
	(in millions)
Assets:
Retained business
Fixed maturity securities
U.S. corporate private securities	$	178	Discounted cash flow	Discount rate	4.84	%	9.25	%	6.95	%	Decrease
	32		Trade price	Trade price	N/A		N/A		N/A		Increase
Total U.S. corporate private securities	210
Foreign corporate private securities	34		Discounted cash flow	Discount rate	5.11	%	7.16	%	5.38	%	Decrease
Asset-backed securities	80		Discounted cash flow	Discount rate	7.14	%	8.64	%	8.04	%	Decrease
	128		Trade price	Trade price	N/A		N/A		N/A		Increase
Total asset-backed securities	208
Mortgage and other loans
Residential mortgage loans	131		Level yield	Market yield	7.05	%	9.98	%	8.54	%	Decrease
	20		Trade price	Trade price	N/A		N/A		N/A		Increase
Commercial mortgage loans	78		Trade price	Trade price	N/A		N/A		N/A		Increase
Total Mortgage and other loans	229
Ceded business
Foreign corporate private securities	3		Discounted cash flow	Discount rate	7.81	%	7.81	%	7.81	%	Decrease
Deposit asset	476		Fair values are determined using the same unobservable inputs as insurance liabilities.
Reinsurance recoverables	200		Fair values are determined using the same unobservable inputs as insurance liabilities.
Liabilities:
Insurance liabilities
Retained business	$	2,711	Discounted cash flow	Equity volatility curve (2)	16	%	25	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.28	%			Decrease
				Utilization rate(5)	77	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Ceded business	2,273		Discounted cash flow	Equity volatility curve (2)	16	%	25	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.00	%			Decrease
				Utilization rate(5)	77	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Net modified coinsurance payable	81		Fair values are determined using the same unobservable inputs as insurance 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
Total Mortgage and other loans	196
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	$	2,941	Discounted cash flow	Equity volatility curve (2)	19.5	%	26	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.43	%			Decrease
				Utilization rate(5)	92.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Ceded business
Insurance liabilities	$	2,605	Discounted cash flow	Equity volatility curve (2)	19.5	%	26	%			Increase
				Lapse rate(3)	1	%	20	%			Decrease
				Spread over risk free (4)	0.00	%	2.21	%			Decrease
				Utilization rate(5)	92.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease

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

(2)    The equity volatility curve assumption is based on 1 year and 2 year index-specific at-the-money implied volatilities grading to 10 year total variance. Increased volatility increases the fair value of the liability.

(3)    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.

(4)    The spread over the risk-free rate swap curve represents the premium added to the proxy for the risk-free rate 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.

(5)    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. 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.

(6)    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 June 30, 2023 and 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%.

(7)    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.

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

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.

	Successor Company
	Three Months Ended June 30, 2023
	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(2)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	182	$	1	$	27	$	—	$	—	$	—	$	—	$	18	$	(18)	$	210	$	2
Foreign corporate private securities	36		(2)		—		—		—		—		—		—		—		34		(3)
Asset-backed securities	191		—		18		—		—		(1)		—		—		—		208		1
Mortgage and other loans
Residential mortgage loans	158		—		31		—		—		(38)		—		—		—		151		—
Commercial mortgage loans	48		—		30		—		—		—		—		—		—		78		—
Ceded Business
Foreign corporate private securities	—		—		5		—		—		(2)		—		—		—		3		—
Deposit asset	608		(10)		—		—		—		—		(122)		—		—		476		—
Reinsurance recoverables	247		(47)		—		—		—		—		—		—		—		200		—
Net modified coinsurance payable	(45)		(36)		—		—		—		—		—		—		—		(81)		—

	Successor Company
	Six Months Ended June 30, 2023
	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(2)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	146	$	1	$	46	$	—	$	—	$	(1)	$	—	$	18	$	—	$	210	$	1
Foreign corporate private securities	36		(2)		—		—		—		—		—		—		—		34		(2)
Asset-backed securities	155		(2)		56		—		—		(1)		—		—		—		208		(1)
Mortgage and other loans
Residential mortgage loans	161		—		44		—		—		(54)		—		—		—		151		—
Commercial mortgage loans	35		—		43		—		—		—		—		—		—		78		—
Ceded Business
Foreign corporate private securities	—		—		5		—		—		(2)		—		—		—		3		—
Deposit asset	607		(8)		—		—		—		—		(123)		—		—		476		—
Reinsurance recoverables	235		(35)		—		—		—		—		—		—		—		200		—
Net modified coinsurance receivable (payable)	18		(99)		—		—		—		—		—		—		—		(81)		—

	Successor Company
	Three Months Ended June 30, 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(2)
	(in millions)
Fixed maturities
Corporate securities(3)	$	190	$	(16)	$	207	$	—	$	—	$	(11)	$	(3)	$	—	$	(53)	$	314	$	(13)
Structured securities(4)	33		—		25		(10)		—		—		(10)		—		(13)		25		—
Other assets:
Secured receivable	1,622		(50)		—		(15)		—		—		(2)		—		—		1,555		—
Deposit asset	2,615		(457)		—		—		—		—		—		—		—		2,158		—
Reinsurance recoverables	344		34		—		—		—		—		—		—		—		378		—
Net modified coinsurance receivable	5		210		—		—		—		—		—		—		—		215		—

	Successor Company
	Three Months Ended June 30, 2023
			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	$	3,056	$	(354)	$	103	$	(189)	$	96	$	(1)	$	2,711
Ceded Business	2,695		(559)		143		(20)		14		—		2,273

	Successor Company
	Six Months Ended June 30, 2023
			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	$	2,941	$	(702)	$	235	$	46	$	196	$	(5)	$	2,711
Ceded Business	2,605		(625)		210		56		27		—		2,273

	Successor Company
	Three Months Ended June 30, 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	$	13,661	$	(1,654)	$	1,206	$	(1,520)	$	98	$	(534)	$	11,257

"Total realized and unrealized gains (losses)" related to our level 3 assets are included in earnings in Investment gains (losses). Activity related to our level 3 liabilities is primarily recognized in earnings within change in Policyholder benefits and changes in fair value of insurance liabilities with the exception of changes related to the Company's own-credit risk, which are included in "Change in fair value (discount rate)" above and recorded in other comprehensive income (loss).

	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(2)
	(in millions)
Fixed maturities, available-for-sale:
U.S. government	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Corporate securities(3)	190		(9)		5		(4)		—		(2)		—		—		—		180		(9)
Structured securities(4)	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(5)	(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(2)
	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	$	—	$	—	$	(12)	$	—	$	—	$	—	$	(12)
Other assets:
Other assets	(21)		—		—		—		(6)		—		—
Reinsurance recoverables	201		—		—		—		222		—		—
Liabilities:
Future policy benefits	715		—		—		—		686		—		—
Policyholders' account balances	124		—		—		—		89		—		—

(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.

(2)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.

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

(4)Includes asset-backed and residential mortgage-backed securities.

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

Fair Value, by Balance Sheet Grouping

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.

	Successor Company
	June 30, 2023
	Fair Value								Carrying Amount
	Level 1		Level 2		Level 3		Total		Total
	(in millions)
Assets:
Accrued investment income	$	—	$	55	$	—	$	55	$	55
Other invested assets - Policy loans	—		—		11		11		11
Liabilities:
Repurchase agreements	$	—	$	403	$	—	$	403	$	403

	Successor Company
	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

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EQUITY (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Stockholders Equity

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

	Successor Company
	Changes in Own-Credit Risk Related to Insurance Liabilities
	(in millions)
Balance, December 31, 2022	$	111
Change in OCI	22
Less: Income tax expense	5
Balance, March 31, 2023	$	128
Change in OCI	(115)
Less: Income tax benefit	(25)
Balance, June 30, 2023	$	38

	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

(1)Includes cash flow hedges of $29 million as of March 31, 2022.

Reclassification out of Accumulated Other Comprehensive Income

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

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

(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 5 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 indicated below, split between amounts related to net unrealized investment 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 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	$	(15)	$	(7)	$	(47)	$	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)	$	(6)	$	(1)	$	71	$	(272)

(1)Includes cash flow hedges. See Note 5 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.

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RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

Affiliated Asset Transfer

The table below shows affiliated asset trades for the six months ended June 30, 2023.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		Investment Gains (Losses), Net
				(in millions)
Fortitude Re Investments, LLC	May 2023	Sale	Limited Partnership	$	12	$	12	$	—
Fortitude Re Investments, LLC	May 2023	Sale	Limited Partnership	7		7		—

The table below shows affiliated asset trades for the three months ended March 31, 2022.

Affiliate	Date	Transaction	Security Type	Fair Value		Book Value		Realized Investment Gain (Loss)
				(in millions)
Pruco Life	January 2022	Sale	Fixed Maturity Securities	4		5		(1)
Prudential Financial	January 2022	Sale	Commercial Mortgage Loan	29		30		(1)
Pruco Life	January 2022	Sale	Derivatives	—		—		—
Pruco Life	February 2022	Sale	Fixed Maturity Securities	129		138		(9)
Prudential Financial	March 2022	Sale	Fixed Maturity Securities	$	33	$	33	$	—

Reinsurance Impact On Income Statement

Reinsurance amounts, included in the Predecessor Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss), were as follows:

	Three Months Ended March 31
	2022
	(in millions)
Premiums:
Direct	$	9
Ceded	(1)
Net premiums	8
Policy charges and fee income:
Direct	102
Ceded	(5)
Net policy charges and fee income	97
Asset management and service fees:
Direct	22
Ceded	(2)
Net asset management and service fees	20
Realized investment gains (losses), net:
Direct	312
Ceded	169
Realized investment gains (losses), net	481
Policyholders' benefits (including change in reserves):
Direct	31
Ceded	(5)
Net policyholders' benefits (including change in reserves)	26
Interest credited to policyholders’ account balances:
Direct	91
Ceded	(6)
Net interest credited to policyholders’ account balances	85
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization	(41)

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BUSINESS AND BASIS OF PRESENTATION - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	15 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Contracts novated	$ 451	$ 458
Contracts novated, since acquisition			70.00%

XML

SEGMENT INFORMATION - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) segment	Dec. 31, 2022 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	2
Amount of assets and labilities fully ceded	1
Modco payable | $	$ 1,678	$ 1,745

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SEGMENT INFORMATION - Balance Sheet by Segment (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Assets
Total investments	$ 5,874	$ 5,887
Cash and cash equivalents	649	872
Accrued investment income	55	52
Reinsurance recoverables, at fair value	200	235
Net modified coinsurance receivable	0	18
Deposit asset	476	607
Goodwill	93	93
Income tax	46	50
Other assets	83	127
Separate account assets, at fair value	24,065	23,601
Total assets	31,541	31,542
Liabilities:
Insurance liabilities	4,984	5,546
Net modified coinsurance payable	81	0
Other liabilities	805	808
Separate account liabilities, at fair value	24,065	23,601
Total liabilities	29,935	29,955
Total equity	1,606	1,587
TOTAL LIABILITIES AND EQUITY	31,541	31,542
Retained Business
Assets
Total investments	4,486	4,257
Cash and cash equivalents	351	433
Accrued investment income	45	41
Reinsurance recoverables, at fair value	0	0
Net modified coinsurance receivable		0
Deposit asset	0	0
Goodwill	93	93
Income tax	46	50
Other assets	70	113
Separate account assets, at fair value	21,981	21,558
Total assets	27,072	26,545
Liabilities:
Insurance liabilities	2,711	2,941
Net modified coinsurance payable	0
Other liabilities	774	459
Separate account liabilities, at fair value	21,981	21,558
Total liabilities	25,466	24,958
Total equity	1,606	1,587
TOTAL LIABILITIES AND EQUITY	27,072	26,545
Ceded Business
Assets
Total investments	1,388	1,630
Cash and cash equivalents	298	439
Accrued investment income	10	11
Reinsurance recoverables, at fair value	200	235
Net modified coinsurance receivable		18
Deposit asset	476	607
Goodwill	0	0
Income tax	0	0
Other assets	13	14
Separate account assets, at fair value	2,084	2,043
Total assets	4,469	4,997
Liabilities:
Insurance liabilities	2,273	2,605
Net modified coinsurance payable	81
Other liabilities	31	349
Separate account liabilities, at fair value	2,084	2,043
Total liabilities	4,469	4,997
Total equity	0	0
TOTAL LIABILITIES AND EQUITY	$ 4,469	$ 4,997

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SEGMENT INFORMATION - Schedule of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended					6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
REVENUES
Premiums	$ 7			$ 3	$ 8	$ 14
Policy charges and fee income	115			130	97	232
Net investment income	78			97	99	154
Asset management and service fees	23			22	20	45
Other income	3			1		4
Investment gains (losses), net	(287)			(1,298)	481	(122)
TOTAL REVENUES	(61)			(1,045)	686	327
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(255)			(870)		85
Commission expense	23			18	35	46
General, administrative and other expenses	16			38	3	34
TOTAL BENEFITS AND EXPENSES	(216)			(814)	253	165
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES	155			(231)	433	162
Income tax expense (benefit)	25			(51)	77	25
NET INCOME (LOSS)	130			(180)	356	137
Other comprehensive income (loss), before tax:
Changes in own-credit risk related to insurance liabilities	(115)			245	0	(93)
Less: Income tax expense	(25)		$ 51	51	(118)	(20)
Other comprehensive income (loss), net of tax	(90)	$ 17	$ 194	194	(443)	(73)
COMPREHENSIVE INCOME (LOSS)	40			14	$ (87)	64
Retained Business
REVENUES
Premiums	7			3		14
Policy charges and fee income	115			130		232
Net investment income	58			35		114
Asset management and service fees	23			22		45
Other income	2			0		3
Investment gains (losses), net	(402)			(108)		(372)
TOTAL REVENUES	(197)			82		36
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(391)			257		(206)
Commission expense	23			18		46
General, administrative and other expenses	16			38		34
TOTAL BENEFITS AND EXPENSES	(352)			313		(126)
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES	155			(231)		162
Income tax expense (benefit)	25			(51)		25
NET INCOME (LOSS)	130			(180)		137
Other comprehensive income (loss), before tax:
Changes in own-credit risk related to insurance liabilities	(115)			245		(93)
Less: Income tax expense	(25)			51		(20)
Other comprehensive income (loss), net of tax	(90)			194		(73)
COMPREHENSIVE INCOME (LOSS)	40			14		64
Ceded Business
REVENUES
Premiums	0			0		0
Policy charges and fee income	0			0		0
Net investment income	20			62		40
Asset management and service fees	0			0		0
Other income	1			1		1
Investment gains (losses), net	115			(1,190)		250
TOTAL REVENUES	136			(1,127)		291
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	136			(1,127)		291
Commission expense	0			0		0
General, administrative and other expenses	0			0		0
TOTAL BENEFITS AND EXPENSES	136			(1,127)		291
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES	0			0		0
Income tax expense (benefit)	0			0		0
NET INCOME (LOSS)	0			0		0
Other comprehensive income (loss), before tax:
Changes in own-credit risk related to insurance liabilities	0			0		0
Less: Income tax expense	0			0		0
Other comprehensive income (loss), net of tax	0			0		0
COMPREHENSIVE INCOME (LOSS)	$ 0			$ 0		$ 0

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INVESTMENTS - Other Invested Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	$ 640	$ 450
Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	507	440
Ceded Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	133	10
Partnership Interest | Fair Value
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	350	354
Partnership Interest | Fair Value | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	340	344
Partnership Interest | Fair Value | Ceded Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	10	10
Private equity | Partnership Interest | Fair Value
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	341	345
Private equity | Partnership Interest | Fair Value | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	340	344
Private equity | Partnership Interest | Fair Value | Ceded Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	1	1
Derivative instruments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	279	85
Derivative instruments | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	156	85
Derivative instruments | Ceded Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	123	0
Policy loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	11	11
Policy loans | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	11	11
Policy loans | Ceded Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	0	0
Equity Method Investments | Partnership Interest
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	9	9
Equity Method Investments | Partnership Interest | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	0	0
Equity Method Investments | Partnership Interest | Ceded Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	9	9
Equity Method Investments | Private equity | Partnership Interest
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	4	4
Equity Method Investments | Private equity | Partnership Interest | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	0	0
Equity Method Investments | Private equity | Partnership Interest | Ceded Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	4	4
Equity Method Investments | Real estate-related | Partnership Interest
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	5	5
Equity Method Investments | Real estate-related | Partnership Interest | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	0	0
Equity Method Investments | Real estate-related | Partnership Interest | Ceded Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total other invested assets	$ 5	$ 5

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INVESTMENTS - Accrued Investment Income (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Net Investment Income [Line Items]
Total accrued investment income	$ 55	$ 52
Retained Business
Net Investment Income [Line Items]
Total accrued investment income	45	41
Ceded Business
Net Investment Income [Line Items]
Total accrued investment income	10	11
Fixed maturity securities
Net Investment Income [Line Items]
Total accrued investment income	51	47
Fixed maturity securities | Retained Business
Net Investment Income [Line Items]
Total accrued investment income	42	37
Fixed maturity securities | Ceded Business
Net Investment Income [Line Items]
Total accrued investment income	9	10
Mortgage and other loans
Net Investment Income [Line Items]
Total accrued investment income	1	1
Mortgage and other loans | Retained Business
Net Investment Income [Line Items]
Total accrued investment income	1	1
Mortgage and other loans | Ceded Business
Net Investment Income [Line Items]
Total accrued investment income	0	0
Other invested assets
Net Investment Income [Line Items]
Total accrued investment income	1	0
Other invested assets | Retained Business
Net Investment Income [Line Items]
Total accrued investment income	1	0
Other invested assets | Ceded Business
Net Investment Income [Line Items]
Total accrued investment income	0	0
Short-term investments and cash equivalents
Net Investment Income [Line Items]
Total accrued investment income	2	4
Short-term investments and cash equivalents | Retained Business
Net Investment Income [Line Items]
Total accrued investment income	1	3
Short-term investments and cash equivalents | Ceded Business
Net Investment Income [Line Items]
Total accrued investment income	$ 1	$ 1

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INVESTMENTS - Narrative (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Mar. 31, 2022
U.S. corporate public securities
Debt Securities, Available-for-Sale [Line Items]
Securities	$ 403,000,000	$ 311,000,000
U.S. corporate public securities | Fair Value
Debt Securities, Available-for-Sale [Line Items]
Securities	423,000,000	326,000,000
Equity securities
Debt Securities, Available-for-Sale [Line Items]
Securities	0	106,000,000
Equity securities | Fair Value
Debt Securities, Available-for-Sale [Line Items]
Securities	0	103,000,000
Mortgage and other loans
Debt Securities, Available-for-Sale [Line Items]
Non-accrual status	$ 3,000,000	$ 0
Commercial mortgage and other loans, allowance for credit losses			$ 1,000,000

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INVESTMENTS - Fixed Maturity Proceeds and Investment Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Net Investment Income [Line Items]
Fixed maturity securities, available-for-sale	$ 0	$ 422	$ 0
Fixed Maturities
Net Investment Income [Line Items]
Proceeds from sales				$ 294
Fixed maturity securities, available-for-sale				108
Gross investment losses on sales and maturities				(21)
Noncash related proceeds				$ 20

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INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
Net Investment Income [Line Items]
Gross investment income	$ 85	$ 98	$ 103	$ 172
Less: investment expenses	(7)	(1)	(4)	(18)
Net investment income	78	97	99	154
Retained Business
Net Investment Income [Line Items]
Gross investment income	65	36		130
Less: investment expenses	(7)	(1)		(16)
Net investment income	58	35		114
Ceded Business
Net Investment Income [Line Items]
Gross investment income	20	62		42
Less: investment expenses	0	0		(2)
Net investment income	20	62		40
Fixed maturity securities
Net Investment Income [Line Items]
Gross investment income	64	80	61	125
Fixed maturity securities | Retained Business
Net Investment Income [Line Items]
Gross investment income	51	36		98
Fixed maturity securities | Ceded Business
Net Investment Income [Line Items]
Gross investment income	13	44		27
Equity securities
Net Investment Income [Line Items]
Gross investment income	1	1	1	2
Equity securities | Retained Business
Net Investment Income [Line Items]
Gross investment income	0	0		0
Equity securities | Ceded Business
Net Investment Income [Line Items]
Gross investment income	1	1		2
Mortgage and other loans
Net Investment Income [Line Items]
Gross investment income	4	11	11	8
Mortgage and other loans | Retained Business
Net Investment Income [Line Items]
Gross investment income	4	0		8
Mortgage and other loans | Ceded Business
Net Investment Income [Line Items]
Gross investment income	0	11		0
Other invested assets
Net Investment Income [Line Items]
Gross investment income	7	4	29	20
Other invested assets | Retained Business
Net Investment Income [Line Items]
Gross investment income	7	0		19
Other invested assets | Ceded Business
Net Investment Income [Line Items]
Gross investment income	0	4		1
Short-term investments and cash equivalents
Net Investment Income [Line Items]
Gross investment income	9	2	$ 1	17
Short-term investments and cash equivalents | Retained Business
Net Investment Income [Line Items]
Gross investment income	3	0		5
Short-term investments and cash equivalents | Ceded Business
Net Investment Income [Line Items]
Gross investment income	$ 6	$ 2		$ 12

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INVESTMENTS - Realized Investment Gains (Losses), Net (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	$ (75)	$ (254)		$ 109
Realized gains (losses) on investments	(212)	(1,044)		(231)
Investment gains (losses), net	(287)	(1,298)	$ 481	(122)
Retained Business
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	(61)	(295)		95
Realized gains (losses) on investments	(341)	187		(467)
Investment gains (losses), net	(402)	(108)		(372)
Ceded Business
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	(14)	41		14
Realized gains (losses) on investments	129	(1,231)		236
Investment gains (losses), net	115	(1,190)		250
Fixed maturity securities
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	(73)	(235)		104
Realized gains (losses) on investments	(10)	(409)		(36)
Investment gains (losses), net	(83)	(644)	(21)	68
Fixed maturity securities | Retained Business
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	(61)	(295)		95
Realized gains (losses) on investments	(2)	(71)		(28)
Investment gains (losses), net	(63)	(366)		67
Fixed maturity securities | Ceded Business
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	(12)	60		9
Realized gains (losses) on investments	(8)	(338)		(8)
Investment gains (losses), net	(20)	(278)		1
Secured receivable
Net Investment Income [Line Items]
Unrealized gains (losses) on investments		0
Realized gains (losses) on investments		(51)
Investment gains (losses), net		(51)
Secured receivable | Retained Business
Net Investment Income [Line Items]
Unrealized gains (losses) on investments		0
Realized gains (losses) on investments		0
Investment gains (losses), net
Secured receivable | Ceded Business
Net Investment Income [Line Items]
Unrealized gains (losses) on investments		0
Realized gains (losses) on investments		(51)
Investment gains (losses), net		(51)
Equity securities
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	(2)	(19)		5
Realized gains (losses) on investments	0	0		0
Investment gains (losses), net	(2)	(19)		5
Equity securities | Retained Business
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	0	0		0
Realized gains (losses) on investments	0	0		0
Investment gains (losses), net	0	0		0
Equity securities | Ceded Business
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	(2)	(19)		5
Realized gains (losses) on investments	0	0		0
Investment gains (losses), net	(2)	(19)		5
Derivative instruments
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	0	0		0
Realized gains (losses) on investments	(202)	(584)		(195)
Investment gains (losses), net	(202)	(584)	$ 502	(195)
Derivative instruments | Retained Business
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	0	0		0
Realized gains (losses) on investments	(339)	258		(439)
Investment gains (losses), net	(339)	258		(439)
Derivative instruments | Ceded Business
Net Investment Income [Line Items]
Unrealized gains (losses) on investments	0	0		0
Realized gains (losses) on investments	137	(842)		244
Investment gains (losses), net	$ 137	$ (842)		$ 244

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INVESTMENTS - Repurchase Agreements and Securities Lending (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
U.S. corporate public securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities	$ 403	$ 311
Equity securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities	0	106
Overnight & Continuous | Equity securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities	0	106
Up to 30 days | U.S. corporate public securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities	201	111
Up to 30 days | Equity securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities	0	0
30-90 days | U.S. corporate public securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities	100	200
30-90 days | Equity securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities	0	0
Greater than 90 days | U.S. corporate public securities
Assets Sold under Agreements to Repurchase [Line Items]
Securities	$ 102	$ 0

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DERIVATIVES AND HEDGING - Primary Risks Managed by Derivatives (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair value, assets	$ 380	$ 418
Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	24,667	24,075
Fair value, assets	739	667
Fair value, liabilities	(759)	(1,075)
Retained Business
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair value, assets	156	183
Retained Business | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	19,602	14,300
Fair value, assets	515	432
Fair value, liabilities	(658)	(602)
Retained Business | Interest Rate Swaps | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	15,856	12,131
Fair value, assets	312	228
Fair value, liabilities	(520)	(553)
Retained Business | Foreign Currency Swaps | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	103	100
Fair value, assets	9	11
Fair value, liabilities	0	0
Retained Business | Credit Default Swaps | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	520	520
Fair value, assets	8	5
Fair value, liabilities	0	0
Retained Business | Equity Futures | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	(2,002)	(1,737)
Fair value, assets	0	46
Fair value, liabilities	(57)	0
Retained Business | Total Return Swaps | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	1,079	0
Fair value, assets	2	24
Fair value, liabilities	(47)	(49)
Retained Business | Equity Options | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	4,046	3,286
Fair value, assets	184	118
Fair value, liabilities	(34)	0
Ceded Business
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair value, assets	224	235
Ceded Business | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	5,065	9,775
Fair value, assets	224	235
Fair value, liabilities	(101)	(473)
Ceded Business | Interest Rate Swaps | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	1,160	2,517
Fair value, assets	50	48
Fair value, liabilities	(16)	(117)
Ceded Business | Foreign Currency Swaps | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	46	48
Fair value, assets	4	6
Fair value, liabilities	0	0
Ceded Business | Credit Default Swaps | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	70	71
Fair value, assets	2	1
Fair value, liabilities	0	0
Ceded Business | Total Return Swaps | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	24	0
Fair value, assets	0	0
Fair value, liabilities	0	0
Ceded Business | Equity Options | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Notional Values/Units	3,765	7,139
Fair value, assets	168	180
Fair value, liabilities	$ (85)	$ (356)

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DERIVATIVES AND HEDGING - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Offsetting of Financial Assets:
Gross Amounts of Recognized Financial Instruments	$ 380	$ 418
Gross Amounts Offset in the Statements of Financial Position	(101)	(333)
Net Amounts Presented in the Statements of Financial Position	279	85
Financial Instruments/Collateral	(156)	(85)
Net Amount	123	0
Derivative instruments
Offsetting of Financial Liabilities:
Gross Amounts of Recognized Financial Instruments	400	826
Gross Amounts Offset in the Statements of Financial Position	(400)	(625)
Net Amounts Presented in the Statements of Financial Position	0	201
Financial Instruments/Collateral	0	0
Net Amount	0	201
Repurchase Agreements
Offsetting of Financial Liabilities:
Gross Amounts of Recognized Financial Instruments	403	311
Gross Amounts Offset in the Statements of Financial Position	0	0
Net Amounts Presented in the Statements of Financial Position	403	311
Financial Instruments/Collateral	(403)	(311)
Net Amount	0	0
Securities Lending Transaction
Offsetting of Financial Liabilities:
Gross Amounts of Recognized Financial Instruments		106
Gross Amounts Offset in the Statements of Financial Position		0
Net Amounts Presented in the Statements of Financial Position		106
Financial Instruments/Collateral		(103)
Net Amount		3
Retained Business
Offsetting of Financial Assets:
Gross Amounts of Recognized Financial Instruments	156	183
Gross Amounts Offset in the Statements of Financial Position	0	(98)
Net Amounts Presented in the Statements of Financial Position	156	85
Financial Instruments/Collateral	(156)	(85)
Net Amount	0	0
Retained Business | Derivative instruments
Offsetting of Financial Liabilities:
Gross Amounts of Recognized Financial Instruments	299	353
Gross Amounts Offset in the Statements of Financial Position	(299)	(353)
Net Amounts Presented in the Statements of Financial Position	0	0
Financial Instruments/Collateral	0	0
Net Amount	0	0
Ceded Business
Offsetting of Financial Assets:
Gross Amounts of Recognized Financial Instruments	224	235
Gross Amounts Offset in the Statements of Financial Position	(101)	(235)
Net Amounts Presented in the Statements of Financial Position	123	0
Financial Instruments/Collateral	0	0
Net Amount	123	0
Ceded Business | Derivative instruments
Offsetting of Financial Liabilities:
Gross Amounts of Recognized Financial Instruments	101	473
Gross Amounts Offset in the Statements of Financial Position	(101)	(272)
Net Amounts Presented in the Statements of Financial Position	0	201
Financial Instruments/Collateral	0	0
Net Amount	$ 0	$ 201

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DERIVATIVES AND HEDGING - Impact of Derivatives by Operating Segment (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	$ (202)	$ (584)		$ (195)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Investment gains (losses), net	Investment gains (losses), net		Investment gains (losses), net
Investment gains (losses), net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			$ 501
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Investment gains (losses), net
Investment gains (losses), net | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			$ 500
Net Investment Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			$ 1
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Net investment income
Net Investment Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			$ 0
Other Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			$ 2
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Other income (loss)
Other Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			$ 0
Change in AOCI
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			$ 4
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Net unrealized investment losses
Change in AOCI | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			$ 0
Interest Rate | Investment gains (losses), net | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			(527)
Interest Rate | Net Investment Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Interest Rate | Other Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Interest Rate | Change in AOCI | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Credit | Investment gains (losses), net | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			(12)
Credit | Net Investment Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Credit | Other Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Credit | Change in AOCI | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Currency/Interest Rate | Investment gains (losses), net | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			1
Currency/Interest Rate | Investment gains (losses), net | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			(6)
Currency/Interest Rate | Net Investment Income | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			1
Currency/Interest Rate | Net Investment Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Currency/Interest Rate | Other Income | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			2
Currency/Interest Rate | Other Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Currency/Interest Rate | Change in AOCI | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			4
Currency/Interest Rate | Change in AOCI | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Equity | Investment gains (losses), net | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			59
Equity | Net Investment Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Equity | Other Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Equity | Change in AOCI | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Embedded Derivatives | Investment gains (losses), net | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			986
Embedded Derivatives | Net Investment Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Embedded Derivatives | Other Income | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			0
Embedded Derivatives | Change in AOCI | Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)			$ 0
Retained Business
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	$ (339)	$ 258		$ (439)
Retained Business | Investment gains (losses), net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Investment gains (losses), net
Retained Business | Net Investment Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Net investment income
Retained Business | Other Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Other income (loss)
Retained Business | Change in AOCI
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Net unrealized investment losses
Retained Business | Interest Rate
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	(77)	(445)		38
Retained Business | Credit
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	2	0
Retained Business | Equity
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	(264)	703		(479)
Ceded Business
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	137	(842)		244
Ceded Business | Investment gains (losses), net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Investment gains (losses), net
Ceded Business | Net Investment Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Net investment income
Ceded Business | Other Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Other income (loss)
Ceded Business | Change in AOCI
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Net unrealized investment losses
Ceded Business | Interest Rate
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	36	(20)		67
Ceded Business | Credit
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	1	(6)		1
Ceded Business | Currency
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	0	2		0
Ceded Business | Currency/Interest Rate
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	0	130		0
Ceded Business | Equity
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, gain (loss)	$ 100	$ (948)		$ 176

XML

FAIR VALUE OF ASSETS AND LIABILITIES - Assets and Liabilities by Hierarchy Level (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fixed maturity securities
Asset-backed securities	$ 4,966	$ 5,024
Equity securities	0	175
Short-term investments	39	42
Other invested assets	640	450
Deposit asset	476	607
Separate account assets, at fair value	24,065	23,601
Liabilities:
Insurance liabilities, at fair value	4,984	5,546
Other liabilities	805	808
Net modified coinsurance payable	81	0
Separate account liabilities, at fair value	24,065	23,601
Retained Business
Fixed maturity securities
Other invested assets	507	440
Separate account assets, at fair value	21,981	21,558
Liabilities:
Insurance liabilities, at fair value	2,711	2,941
Other liabilities	774	459
Net modified coinsurance payable	0
Separate account liabilities, at fair value	21,981	21,558
Ceded Business
Fixed maturity securities
Other invested assets	133	10
Separate account assets, at fair value	2,084	2,043
Liabilities:
Insurance liabilities, at fair value	2,273	2,605
Other liabilities	31	349
Net modified coinsurance payable	81
Separate account liabilities, at fair value	2,084	2,043
Recurring
Fixed maturity securities
Asset-backed securities	4,966	5,024
Equity securities		175
Mortgage and other loans	229	196
Short-term investments	39	42
Cash and cash equivalents	649	872
Other invested assets	279	85
Other invested assets, Netting	(460)	(582)
Deposit asset	476	607
Reinsurance recoverables	200	235
Net modified coinsurance receivable		18
Subtotal excluding separate account assets	6,838	7,254
Separate account assets, at fair value	24,065	23,601
Total assets	30,903	30,855
Liabilities:
Insurance liabilities, at fair value	4,984	5,546
Other liabilities	0	201
Net modified coinsurance payable	81
Separate account liabilities, at fair value	24,065	23,601
Liabilities, Netting	(759)	(875)
Total liabilities	29,130	29,348
Recurring | Retained Business
Fixed maturity securities
Asset-backed securities	3,749	3,616
Mortgage and other loans	229	196
Short-term investments		3
Cash and cash equivalents	351	433
Other invested assets	156	85
Other invested assets, Netting	(359)	(347)
Subtotal excluding separate account assets	4,485	4,333
Separate account assets, at fair value	21,981	21,558
Total assets	26,466	25,891
Liabilities:
Insurance liabilities, at fair value	2,711	2,941
Other liabilities	0	0
Separate account liabilities, at fair value	21,981	21,558
Liabilities, Netting	(658)	(602)
Total liabilities	24,692	24,499
Recurring | Ceded Business
Fixed maturity securities
Asset-backed securities	1,217	1,408
Equity securities		175
Short-term investments	39	39
Cash and cash equivalents	298	439
Other invested assets	123	0
Other invested assets, Netting	(101)	(235)
Deposit asset	476	607
Reinsurance recoverables	200	235
Net modified coinsurance receivable		18
Subtotal excluding separate account assets	2,353	2,921
Separate account assets, at fair value	2,084	2,043
Total assets	4,437	4,964
Liabilities:
Insurance liabilities, at fair value	2,273	2,605
Other liabilities	0	201
Separate account liabilities, at fair value	2,084	2,043
Liabilities, Netting	(101)	(272)
Total liabilities	4,438	4,849
Recurring | U.S Treasury securities and obligations of U.S. government authorities and agencies
Fixed maturity securities
Asset-backed securities	527	696
Recurring | U.S Treasury securities and obligations of U.S. government authorities and agencies | Retained Business
Fixed maturity securities
Asset-backed securities	454	582
Recurring | U.S Treasury securities and obligations of U.S. government authorities and agencies | Ceded Business
Fixed maturity securities
Asset-backed securities	73	114
Recurring | Obligations of U.S. states and their political subdivisions
Fixed maturity securities
Asset-backed securities	142	166
Recurring | Obligations of U.S. states and their political subdivisions | Retained Business
Fixed maturity securities
Asset-backed securities	142	136
Recurring | Obligations of U.S. states and their political subdivisions | Ceded Business
Fixed maturity securities
Asset-backed securities		30
Recurring | Foreign government bonds
Fixed maturity securities
Asset-backed securities	5	5
Recurring | Foreign government bonds | Ceded Business
Fixed maturity securities
Asset-backed securities	5	5
Recurring | U.S. corporate public securities
Fixed maturity securities
Asset-backed securities	2,745	2,796
Recurring | U.S. corporate public securities | Retained Business
Fixed maturity securities
Asset-backed securities	2,046	2,018
Recurring | U.S. corporate public securities | Ceded Business
Fixed maturity securities
Asset-backed securities	699	778
Recurring | U.S. corporate private securities
Fixed maturity securities
Asset-backed securities	354	290
Recurring | U.S. corporate private securities | Retained Business
Fixed maturity securities
Asset-backed securities	210	146
Recurring | U.S. corporate private securities | Ceded Business
Fixed maturity securities
Asset-backed securities	144	144
Recurring | Foreign corporate public securities
Fixed maturity securities
Asset-backed securities	195	211
Recurring | Foreign corporate public securities | Retained Business
Fixed maturity securities
Asset-backed securities	138	122
Recurring | Foreign corporate public securities | Ceded Business
Fixed maturity securities
Asset-backed securities	57	89
Recurring | Foreign corporate private securities
Fixed maturity securities
Asset-backed securities	68	67
Recurring | Foreign corporate private securities | Retained Business
Fixed maturity securities
Asset-backed securities	34	36
Recurring | Foreign corporate private securities | Ceded Business
Fixed maturity securities
Asset-backed securities	34	31
Recurring | Asset-backed securities
Fixed maturity securities
Asset-backed securities	680	532
Recurring | Asset-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	680	513
Recurring | Asset-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities		19
Recurring | Commercial mortgage-backed securities
Fixed maturity securities
Asset-backed securities	17	43
Recurring | Commercial mortgage-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	17	43
Recurring | Commercial mortgage-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities		0
Recurring | Residential mortgage-backed securities
Fixed maturity securities
Asset-backed securities	233	218
Recurring | Residential mortgage-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	28	20
Recurring | Residential mortgage-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities	205	198
Recurring | Level 1
Fixed maturity securities
Asset-backed securities	0	0
Equity securities		175
Mortgage and other loans	0	0
Short-term investments	0	0
Cash and cash equivalents	649	872
Other invested assets	0	46
Deposit asset	0	0
Reinsurance recoverables	0	0
Net modified coinsurance receivable		0
Subtotal excluding separate account assets	649	1,093
Separate account assets, at fair value	0	0
Total assets	649	1,093
Liabilities:
Insurance liabilities, at fair value	0	0
Other liabilities	57	0
Net modified coinsurance payable	0
Separate account liabilities, at fair value	0	0
Total liabilities	57	0
Recurring | Level 1 | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Mortgage and other loans	0	0
Short-term investments		0
Cash and cash equivalents	351	433
Other invested assets	0	46
Subtotal excluding separate account assets	351	479
Separate account assets, at fair value	0	0
Total assets	351	479
Liabilities:
Insurance liabilities, at fair value	0	0
Other liabilities	57	0
Separate account liabilities, at fair value	0	0
Total liabilities	57	0
Recurring | Level 1 | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Equity securities		175
Short-term investments	0	0
Cash and cash equivalents	298	439
Other invested assets	0	0
Deposit asset	0	0
Reinsurance recoverables	0	0
Net modified coinsurance receivable		0
Subtotal excluding separate account assets	298	614
Separate account assets, at fair value	0	0
Total assets	298	614
Liabilities:
Insurance liabilities, at fair value	0	0
Other liabilities	0	0
Separate account liabilities, at fair value	0	0
Total liabilities	0	0
Recurring | Level 1 | U.S Treasury securities and obligations of U.S. government authorities and agencies
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | U.S Treasury securities and obligations of U.S. government authorities and agencies | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | U.S Treasury securities and obligations of U.S. government authorities and agencies | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Obligations of U.S. states and their political subdivisions
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | Ceded Business
Fixed maturity securities
Asset-backed securities		0
Recurring | Level 1 | Foreign government bonds
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Foreign government bonds | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | U.S. corporate public securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | U.S. corporate public securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | U.S. corporate public securities | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | U.S. corporate private securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | U.S. corporate private securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | U.S. corporate private securities | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Foreign corporate public securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Foreign corporate public securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Foreign corporate public securities | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Foreign corporate private securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Foreign corporate private securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Foreign corporate private securities | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Asset-backed securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Asset-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Asset-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities		0
Recurring | Level 1 | Commercial mortgage-backed securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Commercial mortgage-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Commercial mortgage-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities		0
Recurring | Level 1 | Residential mortgage-backed securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Residential mortgage-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 1 | Residential mortgage-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 2
Fixed maturity securities
Asset-backed securities	4,511	4,687
Equity securities		0
Mortgage and other loans	0	0
Short-term investments	39	42
Cash and cash equivalents	0	0
Other invested assets	739	621
Deposit asset	0	0
Reinsurance recoverables	0	0
Net modified coinsurance receivable		0
Subtotal excluding separate account assets	5,289	5,350
Separate account assets, at fair value	24,065	23,601
Total assets	29,354	28,951
Liabilities:
Insurance liabilities, at fair value	0	0
Other liabilities	702	1,076
Net modified coinsurance payable	0
Separate account liabilities, at fair value	24,065	23,601
Total liabilities	24,767	24,677
Recurring | Level 2 | Retained Business
Fixed maturity securities
Asset-backed securities	3,297	3,279
Mortgage and other loans	0	0
Short-term investments		3
Cash and cash equivalents	0	0
Other invested assets	515	386
Subtotal excluding separate account assets	3,812	3,668
Separate account assets, at fair value	21,981	21,558
Total assets	25,793	25,226
Liabilities:
Insurance liabilities, at fair value	0	0
Other liabilities	601	602
Separate account liabilities, at fair value	21,981	21,558
Total liabilities	22,582	22,160
Recurring | Level 2 | Ceded Business
Fixed maturity securities
Asset-backed securities	1,214	1,408
Equity securities		0
Short-term investments	39	39
Cash and cash equivalents	0	0
Other invested assets	224	235
Deposit asset	0	0
Reinsurance recoverables	0	0
Net modified coinsurance receivable		0
Subtotal excluding separate account assets	1,477	1,682
Separate account assets, at fair value	2,084	2,043
Total assets	3,561	3,725
Liabilities:
Insurance liabilities, at fair value	0	0
Other liabilities	101	473
Separate account liabilities, at fair value	2,084	2,043
Total liabilities	2,185	2,516
Recurring | Level 2 | U.S Treasury securities and obligations of U.S. government authorities and agencies
Fixed maturity securities
Asset-backed securities	527	696
Recurring | Level 2 | U.S Treasury securities and obligations of U.S. government authorities and agencies | Retained Business
Fixed maturity securities
Asset-backed securities	454	582
Recurring | Level 2 | U.S Treasury securities and obligations of U.S. government authorities and agencies | Ceded Business
Fixed maturity securities
Asset-backed securities	73	114
Recurring | Level 2 | Obligations of U.S. states and their political subdivisions
Fixed maturity securities
Asset-backed securities	142	166
Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | Retained Business
Fixed maturity securities
Asset-backed securities	142	136
Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | Ceded Business
Fixed maturity securities
Asset-backed securities		30
Recurring | Level 2 | Foreign government bonds
Fixed maturity securities
Asset-backed securities	5	5
Recurring | Level 2 | Foreign government bonds | Ceded Business
Fixed maturity securities
Asset-backed securities	5	5
Recurring | Level 2 | U.S. corporate public securities
Fixed maturity securities
Asset-backed securities	2,745	2,796
Recurring | Level 2 | U.S. corporate public securities | Retained Business
Fixed maturity securities
Asset-backed securities	2,046	2,018
Recurring | Level 2 | U.S. corporate public securities | Ceded Business
Fixed maturity securities
Asset-backed securities	699	778
Recurring | Level 2 | U.S. corporate private securities
Fixed maturity securities
Asset-backed securities	144	144
Recurring | Level 2 | U.S. corporate private securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 2 | U.S. corporate private securities | Ceded Business
Fixed maturity securities
Asset-backed securities	144	144
Recurring | Level 2 | Foreign corporate public securities
Fixed maturity securities
Asset-backed securities	195	211
Recurring | Level 2 | Foreign corporate public securities | Retained Business
Fixed maturity securities
Asset-backed securities	138	122
Recurring | Level 2 | Foreign corporate public securities | Ceded Business
Fixed maturity securities
Asset-backed securities	57	89
Recurring | Level 2 | Foreign corporate private securities
Fixed maturity securities
Asset-backed securities	31	31
Recurring | Level 2 | Foreign corporate private securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 2 | Foreign corporate private securities | Ceded Business
Fixed maturity securities
Asset-backed securities	31	31
Recurring | Level 2 | Asset-backed securities
Fixed maturity securities
Asset-backed securities	472	377
Recurring | Level 2 | Asset-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	472	358
Recurring | Level 2 | Asset-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities		19
Recurring | Level 2 | Commercial mortgage-backed securities
Fixed maturity securities
Asset-backed securities	17	43
Recurring | Level 2 | Commercial mortgage-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	17	43
Recurring | Level 2 | Commercial mortgage-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities		0
Recurring | Level 2 | Residential mortgage-backed securities
Fixed maturity securities
Asset-backed securities	233	218
Recurring | Level 2 | Residential mortgage-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	28	20
Recurring | Level 2 | Residential mortgage-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities	205	198
Recurring | Level 3
Fixed maturity securities
Asset-backed securities	455	337
Equity securities		0
Mortgage and other loans	229	196
Short-term investments	0	0
Cash and cash equivalents	0	0
Other invested assets	0	0
Deposit asset	476	607
Reinsurance recoverables	200	235
Net modified coinsurance receivable		18
Subtotal excluding separate account assets	1,360	1,393
Separate account assets, at fair value	0	0
Total assets	1,360	1,393
Liabilities:
Insurance liabilities, at fair value	4,984	5,546
Other liabilities	0	0
Net modified coinsurance payable	81
Separate account liabilities, at fair value	0	0
Total liabilities	5,065	5,546
Recurring | Level 3 | Retained Business
Fixed maturity securities
Asset-backed securities	452	337
Mortgage and other loans	229	196
Short-term investments		0
Cash and cash equivalents	0	0
Other invested assets	0	0
Subtotal excluding separate account assets	681	533
Separate account assets, at fair value	0	0
Total assets	681	533
Liabilities:
Insurance liabilities, at fair value	2,711	2,941
Other liabilities	0	0
Separate account liabilities, at fair value	0	0
Total liabilities	2,711	2,941
Recurring | Level 3 | Ceded Business
Fixed maturity securities
Asset-backed securities	3	0
Equity securities		0
Short-term investments	0	0
Cash and cash equivalents	0	0
Other invested assets	0	0
Deposit asset	476	607
Reinsurance recoverables	200	235
Net modified coinsurance receivable		18
Subtotal excluding separate account assets	679	860
Separate account assets, at fair value	0	0
Total assets	679	860
Liabilities:
Insurance liabilities, at fair value	2,273	2,605
Other liabilities	0	0
Separate account liabilities, at fair value	0	0
Total liabilities	2,354	2,605
Recurring | Level 3 | U.S Treasury securities and obligations of U.S. government authorities and agencies
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | U.S Treasury securities and obligations of U.S. government authorities and agencies | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | U.S Treasury securities and obligations of U.S. government authorities and agencies | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Obligations of U.S. states and their political subdivisions
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | Ceded Business
Fixed maturity securities
Asset-backed securities		0
Recurring | Level 3 | Foreign government bonds
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Foreign government bonds | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | U.S. corporate public securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | U.S. corporate public securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | U.S. corporate public securities | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | U.S. corporate private securities
Fixed maturity securities
Asset-backed securities	210	146
Recurring | Level 3 | U.S. corporate private securities | Retained Business
Fixed maturity securities
Asset-backed securities	210	146
Recurring | Level 3 | U.S. corporate private securities | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Foreign corporate public securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Foreign corporate public securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Foreign corporate public securities | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Foreign corporate private securities
Fixed maturity securities
Asset-backed securities	37	36
Recurring | Level 3 | Foreign corporate private securities | Retained Business
Fixed maturity securities
Asset-backed securities	34	36
Recurring | Level 3 | Foreign corporate private securities | Ceded Business
Fixed maturity securities
Asset-backed securities	3	0
Recurring | Level 3 | Asset-backed securities
Fixed maturity securities
Asset-backed securities	208	155
Recurring | Level 3 | Asset-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	208	155
Recurring | Level 3 | Asset-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities		0
Recurring | Level 3 | Commercial mortgage-backed securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Commercial mortgage-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Commercial mortgage-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities		0
Recurring | Level 3 | Residential mortgage-backed securities
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Residential mortgage-backed securities | Retained Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Level 3 | Residential mortgage-backed securities | Ceded Business
Fixed maturity securities
Asset-backed securities	0	0
Recurring | Fair Value Measured at Net Asset Value Per Share
Liabilities:
Other invested assets excluded from fair value hierarchy	341	345
Recurring | Fair Value Measured at Net Asset Value Per Share | Retained Business
Liabilities:
Other invested assets excluded from fair value hierarchy	340	344
Recurring | Fair Value Measured at Net Asset Value Per Share | Ceded Business
Liabilities:
Other invested assets excluded from fair value hierarchy	1	1
Policy loans | Recurring
Fixed maturity securities
Other invested assets, Netting	(460)	(582)
Subtotal excluding separate account assets	460	582
Policy loans | Recurring | Retained Business
Fixed maturity securities
Other invested assets, Netting	(359)	(347)
Subtotal excluding separate account assets	359	347
Policy loans | Recurring | Ceded Business
Fixed maturity securities
Other invested assets, Netting	(101)	(235)
Subtotal excluding separate account assets	101	235
Other liabilities - derivatives | Recurring
Liabilities:
Liabilities, Netting	(759)	(875)
Other liabilities - derivatives | Recurring | Retained Business
Liabilities:
Liabilities, Netting	(658)	(602)
Other liabilities - derivatives | Recurring | Ceded Business
Liabilities:
Liabilities, Netting	$ (101)	$ (272)

XML

FAIR VALUE OF ASSETS AND LIABILITIES - Quantitative Information Regarding Internally-Prices Level 3 Assets and Liabilities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Assets
Debt securities, available-for-sale	$ 4,966	$ 5,024
Deposit asset	476	607
Net modified coinsurance receivable	0	18
Liabilities:
Insurance liabilities, at fair value	4,984	5,546
Net modified coinsurance payable	81	0
Retained Business
Assets
Net modified coinsurance receivable		0
Liabilities:
Insurance liabilities, at fair value	2,711	2,941
Net modified coinsurance payable	0
Ceded Business
Assets
Net modified coinsurance receivable		18
Liabilities:
Insurance liabilities, at fair value	2,273	$ 2,605
Net modified coinsurance payable	$ 81
Level 3 | Minimum
Liabilities:
Policyholder age	45 years
Level 3 | Minimum | Mortality rate
Liabilities:
Insurance liability, measurement input	0
Level 3 | Maximum
Liabilities:
Policyholder age	90 years
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Equality volatility curve | Retained Business
Liabilities:
Insurance liability, measurement input	0.16	0.195
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Equality volatility curve | Ceded Business
Liabilities:
Insurance liability, measurement input	0.16	0.195
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Lapse rate | Retained Business
Liabilities:
Insurance liability, measurement input	0.01	0.01
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Lapse rate | Ceded Business
Liabilities:
Insurance liability, measurement input	0.01	0.01
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Spread over risk free | Retained Business
Liabilities:
Insurance liability, measurement input	0.0000	0.0000
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Spread over risk free | Ceded Business
Liabilities:
Insurance liability, measurement input	0.0000	0.0000
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Utilization rate | Retained Business
Liabilities:
Insurance liability, measurement input	0.77	0.925
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Utilization rate | Ceded Business
Liabilities:
Insurance liability, measurement input	0.77	0.925
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Mortality rate | Retained Business
Liabilities:
Insurance liability, measurement input	0	0
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Mortality rate | Ceded Business
Liabilities:
Insurance liability, measurement input	0	0
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Corporate Securities | Discount rate | Retained Business
Assets
Debt securities, measurement input	0.0484	0.0475
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Foreign corporate public securities | Discount rate | Retained Business
Assets
Debt securities, measurement input	0.0511	0.0433
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Foreign corporate public securities | Discount rate | Ceded Business
Assets
Debt securities, measurement input	0.0781
Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Asset-backed securities | Discount rate | Retained Business
Assets
Debt securities, measurement input	0.0714	0.0719
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Equality volatility curve | Retained Business
Liabilities:
Insurance liability, measurement input	0.25	0.26
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Equality volatility curve | Ceded Business
Liabilities:
Insurance liability, measurement input	0.25	0.26
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Lapse rate | Retained Business
Liabilities:
Insurance liability, measurement input	0.20	0.20
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Lapse rate | Ceded Business
Liabilities:
Insurance liability, measurement input	0.20	0.20
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Spread over risk free | Retained Business
Liabilities:
Insurance liability, measurement input	0.0228	0.0243
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Spread over risk free | Ceded Business
Liabilities:
Insurance liability, measurement input	0.0200	0.0221
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Utilization rate | Retained Business
Liabilities:
Insurance liability, measurement input	1	1
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Utilization rate | Ceded Business
Liabilities:
Insurance liability, measurement input	1	1
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Mortality rate | Retained Business
Liabilities:
Insurance liability, measurement input	0.16	0.16
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Mortality rate | Ceded Business
Liabilities:
Insurance liability, measurement input	0.16	0.16
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Corporate Securities | Discount rate | Retained Business
Assets
Debt securities, measurement input	0.0925	0.0803
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Foreign corporate public securities | Discount rate | Retained Business
Assets
Debt securities, measurement input	0.0716	0.0638
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Foreign corporate public securities | Discount rate | Ceded Business
Assets
Debt securities, measurement input	0.0781
Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Asset-backed securities | Discount rate | Retained Business
Assets
Debt securities, measurement input	0.0864	0.0851
Level 3 | Valuation Technique, Discounted Cash Flow | Weighted Average | Corporate Securities | Discount rate | Retained Business
Assets
Debt securities, measurement input	0.0695	0.0656
Level 3 | Valuation Technique, Discounted Cash Flow | Weighted Average | Foreign corporate public securities | Discount rate | Retained Business
Assets
Debt securities, measurement input	0.0538	0.0536
Level 3 | Valuation Technique, Discounted Cash Flow | Weighted Average | Foreign corporate public securities | Discount rate | Ceded Business
Assets
Debt securities, measurement input	0.0781
Level 3 | Valuation Technique, Discounted Cash Flow | Weighted Average | Asset-backed securities | Discount rate | Retained Business
Assets
Debt securities, measurement input	0.0804	0.0794
Level 3 | Valuation Technique, Level Yield | Minimum | Residential mortgage loans | Market yield | Retained Business
Assets
Loans receivable, measurement input	0.0705	0.0575
Level 3 | Valuation Technique, Level Yield | Maximum  | Residential mortgage loans | Market yield | Retained Business
Assets
Loans receivable, measurement input	0.0998	0.0997
Level 3 | Valuation Technique, Level Yield | Weighted Average | Residential mortgage loans | Market yield | Retained Business
Assets
Loans receivable, measurement input	0.0854	0.0840
Recurring
Assets
Debt securities, available-for-sale	$ 4,966	$ 5,024
Mortgage and other loans	229	196
Deposit asset	476	607
Liabilities:
Insurance liabilities, at fair value	4,984	5,546
Net modified coinsurance payable	81
Recurring | Retained Business
Assets
Debt securities, available-for-sale	3,749	3,616
Mortgage and other loans	229	196
Liabilities:
Insurance liabilities, at fair value	2,711	2,941
Recurring | Ceded Business
Assets
Debt securities, available-for-sale	1,217	1,408
Deposit asset	476	607
Liabilities:
Insurance liabilities, at fair value	2,273	2,605
Recurring | Foreign corporate public securities
Assets
Debt securities, available-for-sale	195	211
Recurring | Foreign corporate public securities | Retained Business
Assets
Debt securities, available-for-sale	138	122
Recurring | Foreign corporate public securities | Ceded Business
Assets
Debt securities, available-for-sale	57	89
Recurring | Asset-backed securities
Assets
Debt securities, available-for-sale	680	532
Recurring | Asset-backed securities | Retained Business
Assets
Debt securities, available-for-sale	680	513
Recurring | Asset-backed securities | Ceded Business
Assets
Debt securities, available-for-sale		19
Recurring | Commercial mortgage-backed securities
Assets
Debt securities, available-for-sale	17	43
Recurring | Commercial mortgage-backed securities | Retained Business
Assets
Debt securities, available-for-sale	17	43
Recurring | Commercial mortgage-backed securities | Ceded Business
Assets
Debt securities, available-for-sale		0
Recurring | Level 3
Assets
Debt securities, available-for-sale	455	337
Mortgage and other loans	229	196
Deposit asset	476	607
Liabilities:
Insurance liabilities, at fair value	4,984	5,546
Net modified coinsurance payable	81
Recurring | Level 3 | Retained Business
Assets
Debt securities, available-for-sale	452	337
Mortgage and other loans	229	196
Liabilities:
Insurance liabilities, at fair value	2,711	2,941
Recurring | Level 3 | Ceded Business
Assets
Debt securities, available-for-sale	3	0
Deposit asset	476	607
Net modified coinsurance receivable		18
Liabilities:
Insurance liabilities, at fair value	2,273	2,605
Recurring | Level 3 | Corporate Securities | Retained Business
Assets
Debt securities, available-for-sale	210
Recurring | Level 3 | Foreign corporate public securities
Assets
Debt securities, available-for-sale	0	0
Recurring | Level 3 | Foreign corporate public securities | Retained Business
Assets
Debt securities, available-for-sale	0	0
Recurring | Level 3 | Foreign corporate public securities | Ceded Business
Assets
Debt securities, available-for-sale	0	0
Recurring | Level 3 | Asset-backed securities
Assets
Debt securities, available-for-sale	208	155
Recurring | Level 3 | Asset-backed securities | Retained Business
Assets
Debt securities, available-for-sale	208	155
Recurring | Level 3 | Asset-backed securities | Ceded Business
Assets
Debt securities, available-for-sale		0
Recurring | Level 3 | Commercial mortgage-backed securities
Assets
Debt securities, available-for-sale	0	0
Recurring | Level 3 | Commercial mortgage-backed securities | Retained Business
Assets
Debt securities, available-for-sale	0	0
Recurring | Level 3 | Commercial mortgage-backed securities | Ceded Business
Assets
Debt securities, available-for-sale		0
Recurring | Level 3 | Reinsurance recoverables | Ceded Business
Assets
Reinsurance recoverables	200	235
Recurring | Level 3 | Policyholders' account balances
Liabilities:
Net modified coinsurance payable	81
Recurring | Level 3 | Valuation Technique, Discounted Cash Flow | Retained Business
Liabilities:
Insurance liabilities, at fair value	2,711	2,941
Recurring | Level 3 | Valuation Technique, Discounted Cash Flow | Ceded Business
Liabilities:
Insurance liabilities, at fair value	2,273	2,605
Recurring | Level 3 | Valuation Technique, Discounted Cash Flow | Corporate Securities | Retained Business
Assets
Debt securities, available-for-sale	178	146
Recurring | Level 3 | Valuation Technique, Discounted Cash Flow | Foreign corporate public securities | Retained Business
Assets
Debt securities, available-for-sale	34	36
Recurring | Level 3 | Valuation Technique, Discounted Cash Flow | Foreign corporate public securities | Ceded Business
Assets
Debt securities, available-for-sale	3
Recurring | Level 3 | Valuation Technique, Discounted Cash Flow | Asset-backed securities | Retained Business
Assets
Debt securities, available-for-sale	$ 80	$ 155
Recurring | Level 3 | Valuation Technique, Discounted Cash Flow | Minimum | Measurement Input, Withdrawal Rate
Liabilities:
Insurance liability, measurement input	0.77	0.77
Recurring | Level 3 | Valuation Technique, Discounted Cash Flow | Maximum  | Measurement Input, Withdrawal Rate
Liabilities:
Insurance liability, measurement input	1	1
Recurring | Level 3 | Valuation, market approach | Corporate Securities | Retained Business
Assets
Debt securities, available-for-sale	$ 32
Recurring | Level 3 | Valuation, market approach | Asset-backed securities | Retained Business
Assets
Debt securities, available-for-sale	128
Recurring | Level 3 | Valuation, market approach | Residential mortgage loans | Retained Business
Assets
Mortgage and other loans	20
Recurring | Level 3 | Valuation, market approach | Commercial mortgage-backed securities | Retained Business
Assets
Mortgage and other loans	78	$ 35
Recurring | Level 3 | Valuation Technique, Level Yield | Residential mortgage loans | Retained Business
Assets
Mortgage and other loans	$ 131	$ 161

XML

FAIR VALUE OF ASSETS AND LIABILITIES - Changes in Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Dec. 31, 2022
Future policy benefits
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period			$ 3,393	$ 4,060		$ 4,060
Total realized and unrealized gains (losses)				715
Purchases				0
Sales				0
Issuances				(48)
Settlements				0
Other				0
Transfers into Level 3				0
Transfers out of Level 3				0
Fair Value, end of period				3,393
Unrealized gains (losses) for liabilities still held				686
Policyholders' account balances
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period			1,934	2,041		2,041
Total realized and unrealized gains (losses)				124
Purchases				0
Sales				0
Issuances				0
Settlements				(17)
Other				0
Transfers into Level 3				0
Transfers out of Level 3				0
Fair Value, end of period				1,934
Unrealized gains (losses) for liabilities still held				89
Insurance Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period			13,661
Total realized and unrealized gains (losses)					$ (562)	(8,065)
Reduction in estimates of ultimate losses			(1,654)
Increase in estimates of ultimate losses			1,206
Change in fair value (discount rate)			(1,520)
Paid losses			98
Other			(534)
Fair Value, end of period		$ 11,257	11,257	13,661
Insurance Liabilities | Retained Business
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	$ 3,056				2,941
Total realized and unrealized gains (losses)					(230)	(421)
Reduction in estimates of ultimate losses	(354)				(702)
Increase in estimates of ultimate losses	103				235
Change in fair value (discount rate)	(189)				46
Paid losses	96				196
Other	(1)				(5)
Fair Value, end of period	2,711				2,711	2,941
Insurance Liabilities | Ceded Business
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	2,695				2,605
Total realized and unrealized gains (losses)					(332)	(7,644)
Reduction in estimates of ultimate losses	(559)				(625)
Increase in estimates of ultimate losses	143				210
Change in fair value (discount rate)	(20)				56
Paid losses	14				27
Other	0				0
Fair Value, end of period	2,273				2,273	2,605
Residential mortgage loans | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	158				161
Total realized and unrealized gains (losses)	0				0
Purchases	31				44
Sales	0				0
Issuances	0				0
Settlements	(38)				(54)
Other	0				0
Transfers into Level 3	0				0
Transfers out of Level 3	0				0
Fair Value, end of period	151				151	161
Unrealized gains (losses) for assets still held	0				0
Commercial mortgage-backed securities | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	48				35
Total realized and unrealized gains (losses)	0				0
Purchases	30				43
Sales	0				0
Issuances	0				0
Settlements	0				0
Other	0				0
Transfers into Level 3	0				0
Transfers out of Level 3	0				0
Fair Value, end of period	78				78	35
Unrealized gains (losses) for assets still held	0				0
Short term investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period			0	13		13
Total realized and unrealized gains (losses)				0
Purchases				0
Sales				0
Issuances				0
Settlements				(13)
Other				0
Transfers into Level 3				0
Transfers out of Level 3				0
Fair Value, end of period				0
Unrealized gains (losses) for assets still held				0
Cash equivalents
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period			0	8		8
Total realized and unrealized gains (losses)				0
Purchases				0
Sales				0
Issuances				0
Settlements				(8)
Other				0
Transfers into Level 3				0
Transfers out of Level 3				0
Fair Value, end of period				0
Unrealized gains (losses) for assets still held				0
Other assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period			376	400		400
Total realized and unrealized gains (losses)				(21)
Purchases				13
Sales				0
Issuances				0
Settlements				(16)
Other				0
Transfers into Level 3				0
Transfers out of Level 3				0
Fair Value, end of period				376
Unrealized gains (losses) for assets still held				(6)
Deposit asset
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	608				607
Total realized and unrealized gains (losses)	(10)				(8)
Purchases	0				0
Sales	0				0
Issuances	0				0
Settlements	0				0
Other	(122)				(123)
Transfers into Level 3	0				0
Transfers out of Level 3	0				0
Fair Value, end of period	476				476	607
Unrealized gains (losses) for assets still held	0				0
Reinsurance recoverables
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	247		1,866	1,881	235	1,881
Total realized and unrealized gains (losses)	(47)			201	(35)
Purchases	0			4	0
Sales	0			0	0
Issuances	0			0	0
Settlements	0			19	0
Other	0			(239)	0
Transfers into Level 3	0			0	0
Transfers out of Level 3	0			0	0
Fair Value, end of period	200			1,866	200	235
Unrealized gains (losses) for assets still held	0			222	0
Net modified coinsurance receivable (payable)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	(45)				18
Total realized and unrealized gains (losses)	(36)				(99)
Purchases	0				0
Sales	0				0
Issuances	0				0
Settlements	0				0
Other	0				0
Transfers into Level 3	0				0
Transfers out of Level 3	0				0
Fair Value, end of period	(81)				(81)	18
Unrealized gains (losses) for assets still held	0				0
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, end of period	81				81
Fixed maturity securities | U.S Treasury securities and obligations of U.S. government authorities and agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period			0	0		0
Total realized and unrealized gains (losses)				0
Purchases				0
Sales				0
Issuances				0
Settlements				0
Other				0
Transfers into Level 3				0
Transfers out of Level 3				0
Fair Value, end of period				0
Unrealized gains (losses) for assets still held				0
Fixed maturity securities | Corporate Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	182	190	180	190	146	190
Total realized and unrealized gains (losses)	1	(16)		(9)	1
Purchases	27	207		5	46
Sales	0	0		(4)	0
Issuances	0	0		0	0
Settlements	0	(11)		(2)	(1)
Other	0	(3)		0	0
Transfers into Level 3	18	0		0	18
Transfers out of Level 3	(18)	(53)		0	0
Fair Value, end of period	210	314	314	180	210	146
Unrealized gains (losses) for assets still held	2		(13)	(9)	1
Fixed maturity securities | Structured securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period		33	47	76		76
Total realized and unrealized gains (losses)		0		(4)
Purchases		25		0
Sales		(10)		(10)
Issuances		0		0
Settlements		0		(2)
Other		(10)		0
Transfers into Level 3		0		0
Transfers out of Level 3		(13)		(13)
Fair Value, end of period		25	25	47
Unrealized gains (losses) for assets still held			0	(4)
Fixed maturity securities | Foreign corporate private securities | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	36				36
Total realized and unrealized gains (losses)	(2)				(2)
Purchases	0				0
Sales	0				0
Issuances	0				0
Settlements	0				0
Other	0				0
Transfers into Level 3	0				0
Transfers out of Level 3	0				0
Fair Value, end of period	34				34	36
Unrealized gains (losses) for assets still held	(3)				(2)
Fixed maturity securities | Foreign corporate private securities | Ceded Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	0
Total realized and unrealized gains (losses)	0
Purchases	5
Sales	0
Issuances	0
Settlements	(2)
Other	0
Transfers into Level 3	0
Transfers out of Level 3	0
Fair Value, end of period	3				3
Unrealized gains (losses) for assets still held	0
Fixed maturity securities | Asset-backed securities | Retained Business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period	191				155
Total realized and unrealized gains (losses)	0				(2)
Purchases	18				56
Sales	0				0
Issuances	0				0
Settlements	(1)				(1)
Other	0				0
Transfers into Level 3	0				0
Transfers out of Level 3	0				0
Fair Value, end of period	208				208	155
Unrealized gains (losses) for assets still held	$ 1				$ (1)
Fixed maturity securities | Secured receivable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period		1,622
Total realized and unrealized gains (losses)		(50)
Purchases		0
Sales		(15)
Issuances		0
Settlements		0
Other		(2)
Transfers into Level 3		0
Transfers out of Level 3		0
Fair Value, end of period		1,555	1,555
Unrealized gains (losses) for assets still held			0
Fixed maturity securities | Deposit asset
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period		2,615
Total realized and unrealized gains (losses)		(457)
Purchases		0
Sales		0
Issuances		0
Settlements		0
Other		0
Transfers into Level 3		0
Transfers out of Level 3		0
Fair Value, end of period		2,158	2,158
Unrealized gains (losses) for assets still held			0
Fixed maturity securities | Reinsurance recoverables
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period		344
Total realized and unrealized gains (losses)		34
Purchases		0
Sales		0
Issuances		0
Settlements		0
Other		0
Transfers into Level 3		0
Transfers out of Level 3		0
Fair Value, end of period		378	378
Unrealized gains (losses) for assets still held			0
Fixed maturity securities | Net modified coinsurance receivable (payable)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period		5
Total realized and unrealized gains (losses)		210
Purchases		0
Sales		0
Issuances		0
Settlements		0
Other		0
Transfers into Level 3		0
Transfers out of Level 3		0
Fair Value, end of period		$ 215	215
Unrealized gains (losses) for assets still held			0
Equity securities | Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, beginning of period			$ 1	1		$ 1
Total realized and unrealized gains (losses)				0
Purchases				0
Sales				0
Issuances				0
Settlements				0
Other				0
Transfers into Level 3				0
Transfers out of Level 3				0
Fair Value, end of period				1
Unrealized gains (losses) for assets still held				$ 0

XML

FAIR VALUE OF ASSETS AND LIABILITIES - Gains and Losses Resulting from Changes in Fair Value (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Mar. 31, 2022	Jun. 30, 2023
Future policy benefits
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		$ 715
Unrealized gains (losses) for liabilities still held		686
Policyholders' account balances
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		124
Unrealized gains (losses) for liabilities still held		89
Realized investment gains (losses), net | Future policy benefits
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		715
Unrealized gains (losses) for liabilities still held		686
Realized investment gains (losses), net | Policyholders' account balances
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		124
Unrealized gains (losses) for liabilities still held		89
Other income (loss) | Future policy benefits
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Unrealized gains (losses) for liabilities still held		0
Other income (loss) | Policyholders' account balances
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Unrealized gains (losses) for liabilities still held		0
Included in other comprehensive income (loss) | Future policy benefits
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Unrealized gains (losses) for liabilities still held		0
Included in other comprehensive income (loss) | Policyholders' account balances
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Unrealized gains (losses) for liabilities still held		0
Net investment income | Future policy benefits
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Net investment income | Policyholders' account balances
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Fixed maturity securities | Realized investment gains (losses), net | Fixed Maturity, Available-For Sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Unrealized gains (losses) for assets still held		0
Fixed maturity securities | Other income (loss) | Fixed Maturity, Available-For Sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Unrealized gains (losses) for assets still held		0
Fixed maturity securities | Included in other comprehensive income (loss) | Fixed Maturity, Available-For Sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		(12)
Unrealized gains (losses) for assets still held		(12)
Fixed maturity securities | Net investment income | Fixed Maturity, Available-For Sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Other assets
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		(21)
Unrealized gains (losses) for assets still held		(6)
Other assets | Realized investment gains (losses), net
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		(21)
Unrealized gains (losses) for assets still held		(6)
Other assets | Other income (loss)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Unrealized gains (losses) for assets still held		0
Other assets | Included in other comprehensive income (loss)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Unrealized gains (losses) for assets still held		0
Other assets | Net investment income
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Reinsurance recoverables
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)	$ (47)	201	$ (35)
Unrealized gains (losses) for assets still held	$ 0	222	$ 0
Reinsurance recoverables | Realized investment gains (losses), net
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		201
Unrealized gains (losses) for assets still held		222
Reinsurance recoverables | Other income (loss)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Unrealized gains (losses) for assets still held		0
Reinsurance recoverables | Included in other comprehensive income (loss)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		0
Unrealized gains (losses) for assets still held		0
Reinsurance recoverables | Net investment income
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total realized and unrealized gains (losses)		$ 0

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FAIR VALUE OF ASSETS AND LIABILITIES - Changes in Fair Value of Insurance Contracts (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Insurance Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, liabilities	$ (562)	$ (8,065)
Insurance Liabilities | Retained Business
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, liabilities	(230)	(421)
Insurance Liabilities | Ceded Business
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, liabilities	(332)	(7,644)
Reinsurance recoverables
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, assets	(35)	(15)
Reinsurance recoverables | Retained Business
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, assets	0	0
Reinsurance recoverables | Ceded Business
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, assets	(35)	(15)
Modified coinsurance receivable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, assets	(166)	(5,640)
Modified coinsurance receivable | Retained Business
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, assets	0	0
Modified coinsurance receivable | Ceded Business
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, assets	(166)	(5,640)
Deposit asset
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, assets	(131)	(1,989)
Deposit asset | Retained Business
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, assets	0	0
Deposit asset | Ceded Business
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of insurance contracts, assets	$ (131)	$ (1,989)

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FAIR VALUE OF ASSETS AND LIABILITIES - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Assets
Accrued investment income	$ 55	$ 52
Fair Value | Fair Value, Inputs, Level 1, Level 2, and Level 3
Assets
Accrued investment income	55	52
Mortgage and other loans	11	11
Liabilities:
Repurchase agreements	403	311
Cash collateral for loaned securities		106
Fair Value | Level 1
Assets
Accrued investment income	0	0
Mortgage and other loans	0	0
Liabilities:
Repurchase agreements	0	0
Cash collateral for loaned securities		0
Fair Value | Level 2
Assets
Accrued investment income	55	52
Mortgage and other loans	0	0
Liabilities:
Repurchase agreements	403	311
Cash collateral for loaned securities		106
Fair Value | Level 3
Assets
Accrued investment income	0	0
Mortgage and other loans	11	11
Liabilities:
Repurchase agreements	0	0
Cash collateral for loaned securities		0
Carrying Amount
Assets
Accrued investment income	55	52
Mortgage and other loans	11	11
Liabilities:
Repurchase agreements	$ 403	311
Cash collateral for loaned securities		$ 106

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INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 25	$ (51)	$ 77	$ 25
Effective income tax rate reconciliation	16.10%	22.20%	17.80%	15.40%
Deferred tax assets, valuation allowance	$ 35			$ 35	$ 37

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EQUITY - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022	Apr. 01, 2022
Equity [Abstract]
Distribution payable to parent	$ 45,000,000
Accumulated other comprehensive income		$ 38,000,000	$ 111,000,000	$ 0

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EQUITY - Components of AOCI (Details) - USD ($) $ in Millions	3 Months Ended					6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
AOCI
Beginning Balance	$ 1,566	$ 1,587	$ 1,762	$ 1,289	$ 1,682	$ 1,587
Change in OCI			245		(576)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax					15
Less: Income tax expense	25		(51)	(51)	118	20
Ending Balance	1,606	1,566	1,776	1,776	1,289	1,606
Foreign Currency Translation Adjustment
AOCI
Beginning Balance			0	(1)	(1)
Change in OCI			0		0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax					0
Less: Income tax expense			0		0
Ending Balance			0	0	(1)
Changes in Own-Credit Risk Related to Insurance Liabilities
AOCI
Beginning Balance	128	111	0	0	0	111
Change in OCI	(115)	22	245		0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax					0
Less: Income tax expense	(25)	5	(51)		0
Ending Balance	$ 38	$ 128	194	194	0	$ 38
Net Unrealized Investment Gains (Losses)
AOCI
Beginning Balance			0	(272)	171
Change in OCI			0		(576)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax					15
Less: Income tax expense			0		118
Ending Balance			0	0	(272)
Total Accumulated Other Comprehensive Income (Loss)
AOCI
Beginning Balance			0	(273)	170
Ending Balance			194	194	$ (273)
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
AOCI
Ending Balance			$ 29	$ 29

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EQUITY - Reclassification out of Accumulated Other Comprehensive Income (Details) - Reclassification out of Accumulated Other Comprehensive Income $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) including portion attributable to noncontrolling interest, before tax	$ (15)
Total Accumulated Other Comprehensive Income (Loss)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) including portion attributable to noncontrolling interest, before tax	(15)
Cash flow hedges - Currency/Interest rate
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) including portion attributable to noncontrolling interest, before tax	5
Net unrealized investment losses on available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) including portion attributable to noncontrolling interest, before tax	$ (20)

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EQUITY - Other Net Unrealized Investment Gain Loss AOCI (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
AOCI
Beginning Balance	$ 1,682
Ending Balance	1,289
Net Unrealized Investment Gains Losses On All Other Investments
AOCI
Beginning Balance	240
Net investment gains (losses) on investments arising during the period	(591)
Reclassification adjustment for (gains) losses included in net income	15
Impact of net unrealized investment (gains) losses	0
Ending Balance	(336)
DAC and Other Costs
AOCI
Beginning Balance	(15)
Net investment gains (losses) on investments arising during the period	0
Reclassification adjustment for (gains) losses included in net income	0
Impact of net unrealized investment (gains) losses	9
Ending Balance	(6)
Future Policy Benefits and Other Liabilities
AOCI
Beginning Balance	(7)
Net investment gains (losses) on investments arising during the period	0
Reclassification adjustment for (gains) losses included in net income	0
Impact of net unrealized investment (gains) losses	6
Ending Balance	(1)
Income Tax Benefit (Expense)
AOCI
Beginning Balance	(47)
Net investment gains (losses) on investments arising during the period	125
Reclassification adjustment for (gains) losses included in net income	(4)
Impact of net unrealized investment (gains) losses	(3)
Ending Balance	71
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
AOCI
Beginning Balance	171
Net investment gains (losses) on investments arising during the period	(466)
Reclassification adjustment for (gains) losses included in net income	11
Impact of net unrealized investment (gains) losses	12
Ending Balance	$ (272)

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COMMITMENTS AND CONTINGENT LIABILITIES (Details) - Commitments $ in Millions	Jun. 30, 2023 USD ($)
Mortgage and other loans
Other Commitments [Line Items]
Commitments to fund underlying commercial mortgage loans	$ 171
Investments
Other Commitments [Line Items]
Purchase obligation	$ 374

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RELATED PARTY TRANSACTIONS - Successor Company (Details) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
	Aug. 10, 2023	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Apr. 01, 2022
Related Party Transaction [Line Items]
General and administrative expenses			$ 7
Intercompany liquidity agreement, maximum borrowing capacity						$ 300
Intercompany liquidity agreement, outstanding		$ 80			$ 282
Related Party Transaction, Amounts of Transaction			10
Net investment income		78	97	$ 99	154
Funding commitment		160			160
Fortitude Group Holdings
Related Party Transaction [Line Items]
General and administrative expenses		9			17
Subsequent Event
Related Party Transaction [Line Items]
Intercompany liquidity agreement, outstanding	$ 82
Carlyle Investment Management L.L.C.
Related Party Transaction [Line Items]
Assets under management, market value		612			612		$ 732
Net investment income		$ 6	$ 1		$ 11
Fortitude Group Holdings | Carlyle Investment Management L.L.C.
Related Party Transaction [Line Items]
Ownership								71.30%

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RELATED PARTY TRANSACTIONS - Schedule of Affiliated Asset Transfers (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
Related Party Transaction [Line Items]
Investment gains (losses), net	$ (287)	$ (1,298)	$ 481	$ (122)
Affiliated Entity | Fortitude Re Investments, LLC
Related Party Transaction [Line Items]
Asset Transfer Fair Value	12			12
Asset Transfer Amortized Cost	12			12
Investment gains (losses), net				0
Affiliated Entity | Fortitude Re Investments, LLC
Related Party Transaction [Line Items]
Asset Transfer Fair Value	7			7
Asset Transfer Amortized Cost	$ 7			7
Investment gains (losses), net				$ 0
Affiliated Entity | Pruco Life
Related Party Transaction [Line Items]
Asset Transfer Fair Value			4
Asset Transfer Amortized Cost			5
Investment gains (losses), net			(1)
Affiliated Entity | Prudential Financial
Related Party Transaction [Line Items]
Asset Transfer Fair Value			29
Asset Transfer Amortized Cost			30
Investment gains (losses), net			(1)
Affiliated Entity | Pruco Life
Related Party Transaction [Line Items]
Asset Transfer Fair Value			0
Asset Transfer Amortized Cost			0
Investment gains (losses), net			0
Affiliated Entity | Pruco Life
Related Party Transaction [Line Items]
Asset Transfer Fair Value			129
Asset Transfer Amortized Cost			138
Investment gains (losses), net			(9)
Affiliated Entity | Prudential Financial
Related Party Transaction [Line Items]
Asset Transfer Fair Value			33
Asset Transfer Amortized Cost			33
Investment gains (losses), net			$ 0

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RELATED PARTY TRANSACTIONS - Predecessor Company (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended				6 Months Ended
	Mar. 31, 2022	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
Related Party Transaction [Line Items]
Distribution payable to parent			$ 45
Policy charges and fee income		$ 115		$ 130	$ 97	$ 232
Investment management expenses		$ 7		$ 1	4	$ 18
Income					20
Prudential Annuities Inc.
Related Party Transaction [Line Items]
Return of capital	$ 306
Affiliated Entity | Prudential Annuities Distributors
Related Party Transaction [Line Items]
Policy charges and fee income					29
Affiliated Entity | P G I M
Related Party Transaction [Line Items]
Investment management expenses					4
Affiliated Entity | ASTISI And PGIM Investments
Related Party Transaction [Line Items]
Income					22
Parent Company
Related Party Transaction [Line Items]
Corporate expenses					$ 9

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RELATED PARTY TRANSACTIONS - Schedule of Reinsurance Impact on Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023
Premiums:
Direct			$ 9
Ceded			(1)
Net premiums	$ 7	$ 3	8	$ 14
Policy charges and fee income:
Direct			102
Ceded			(5)
Policy charges and fee income	115	130	97	232
Asset management and service fees:
Direct			22
Ceded			(2)
Net asset management and service fees			20
Realized investment gains (losses), net:
Direct			312
Ceded			169
Investment gains (losses), net	(287)	(1,298)	481	(122)
Policyholders' benefits (including change in reserves):
Direct			31
Ceded			(5)
Policyholder benefits			26
Interest credited to policyholders’ account balances:
Direct			91
Ceded			(6)
Interest credited to policyholders account balances	$ 0	$ 0	85	$ 0
Net interest credited to policyholders’ account balances			$ (41)