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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 expense5 
Balance, March 31, 2023$128 
Change in OCI(115)
Less: Income tax benefit(25)
Balance, June 30, 2023$38 

Foreign Currency Translation AdjustmentChanges in Own-Credit Risk Related to Insurance LiabilitiesNet 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)$171 
Net investment gains (losses) on investments arising during the period(591)— — 125 (466)
Reclassification adjustment for (gains) losses included in net income15 — — (4)11 
Impact of net unrealized investment (gains) losses
— 9 6 (3)12 
Balance, March 31, 2022$(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.