EQUITY (Tables)

6 Months Ended

Jun. 30, 2023

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.