FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 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
	September 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	$	—	$	469	$	—	$	—	$	469
Obligations of U.S. states and their political subdivisions	—		113		—		—		113
Foreign government bonds	—		4		—		—		4
U.S. corporate public securities	—		2,522		—		—		2,522
U.S. corporate private securities	—		142		205		—		347
Foreign corporate public securities	—		143		—		—		143
Foreign corporate private securities	—		30		48		—		78
Asset-backed securities (2)	—		706		213		—		919
Commercial mortgage-backed securities	—		16		—		—		16
Residential mortgage-backed securities	—		221		—		—		221
Total fixed maturity securities	—		4,366		466		—		4,832
Mortgage and other loans (3)	—		—		422		—		422
Short-term investments	—		30		—		—		30
Cash and cash equivalents	592		—		—		—		592
Other invested assets (4)	72		889		—		(710)		251
Deposit asset	—		—		430		—		430
Reinsurance recoverables	—		—		179		—		179
Subtotal excluding separate account assets	664		5,285		1,497		(710)		6,736
Separate account assets	—		22,557		—		—		22,557
Total assets	$	664	$	27,842	$	1,497	$	(710)	$	29,293
Liabilities
Insurance liabilities	$	—	$	—	$	4,574	$	—	$	4,574
Other liabilities - derivatives	—		1,153		—		(1,153)		—
Net modified coinsurance payable	—		—		68		—		68
Separate account liabilities	—		22,557		—		—		22,557
Total liabilities	$	—	$	23,710	$	4,642	$	(1,153)	$	27,199

(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 September 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, which are classified as other invested assets on the Consolidated Statements of Financial Position, and certain fixed maturity securities, for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At September 30, 2023 the fair values of private equity funds and fixed maturity securities were $346 million and $7 million.

	Successor Company
	September 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	$	—	$	395	$	—	$	—	$	395
Obligations of U.S. states and their political subdivisions	—		113		—		—		113
U.S. corporate public securities	—		1,877		—		—		1,877
U.S. corporate private securities	—		—		205		—		205
Foreign corporate public securities	—		114		—		—		114
Foreign corporate private securities	—		—		43		—		43
Asset-backed securities (2)	—		706		213		—		919
Commercial mortgage-backed securities	—		16		—		—		16
Residential mortgage-backed securities	—		26		—		—		26
Total fixed maturity securities	—		3,247		461		—		3,708
Mortgage and other loans	—		—		422		—		422
Cash and cash equivalents	335		—		—		—		335
Other invested assets(3)	72		728		—		(620)		180
Subtotal excluding separate account assets	407		3,975		883		(620)		4,645
Separate account assets	—		20,600		—		—		20,600
Total assets	$	407	$	24,575	$	883	$	(620)	$	25,245
Liabilities
Insurance liabilities	$	—	$	—	$	2,542	$	—	$	2,542
Other liabilities - derivatives	—		1,063		—		(1,063)		—
Separate account liabilities	—		20,600		—		—		20,600
Total liabilities	$	—	$	21,663	$	2,542	$	(1,063)	$	23,142

(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, which are classified as other invested assets on the Consolidated Statements of Financial Position, and certain fixed maturity securities, both of which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At September 30, 2023 the fair values of private equity funds and fixed maturity securities were $346 million and $7 million, respectively.

	Successor Company
	September 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	$	—	$	74	$	—	$	—	$	74
Foreign government bonds	—		4		—		—		4
U.S. corporate public securities	—		645		—		—		645
U.S. corporate private securities	—		142		—		—		142
Foreign corporate public securities	—		29		—		—		29
Foreign corporate private securities	—		30		5		—		35
Residential mortgage-backed securities	—		195		—		—		195
Total fixed maturity securities	—		1,119		5		—		1,124
Short-term investments	—		30		—		—		30
Cash and cash equivalents	257		—		—		—		257
Other invested assets(3)	—		161		—		(90)		71
Deposit asset	—		—		430		—		430
Reinsurance recoverables	—		—		179		—		179
Subtotal excluding separate account assets	257		1,310		614		(90)		2,091
Separate account assets	—		1,957		—		—		1,957
Total assets	$	257	$	3,267	$	614	$	(90)	$	4,048
Liabilities
Insurance liabilities	$	—	$	—	$	2,032	$	—	$	2,032
Other liabilities - derivatives	—		90		—		(90)		—
Net modified coinsurance payable	—		—		68		—		68
Separate account liabilities	—		1,957		—		—		1,957
Total liabilities	$	—	$	2,047	$	2,100	$	(90)	$	4,057

(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.

	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.

	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.

	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
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.

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
	September 30, 2023						December 31, 2022
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Assets:
Reinsurance recoverables	$	—	$	(56)	$	(56)	$	—	$	(15)	$	(15)
Modified coinsurance receivable	—		(338)		(338)		—		(5,640)		(5,640)
Deposit asset	—		(177)		(177)		—		(1,989)		(1,989)
Liabilities:
Insurance liabilities	$	(399)	$	(573)	$	(972)	$	(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
	September 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	$	173	Discounted cash flow	Discount rate	5.01	%	9.24	%	7.22	%	Decrease
	32		Trade price	Trade price	N/A		N/A		N/A		Increase
Total U.S. corporate private securities	205
Foreign corporate private securities	34		Discounted cash flow	Discount rate	4.69	%	6.89	%	5.79	%	Decrease
	9		Trade price	Trade price	N/A		N/A		N/A		Increase
Total Foreign corporate private securities	43
Asset-backed securities	79		Discounted cash flow	Discount rate	7.65	%	8.99	%	8.44	%	Decrease
	134		Trade price	Trade price	N/A		N/A		N/A		Increase
Total asset-backed securities	213
Mortgage and other loans
Residential mortgage loans	237		Level yield	Market yield	6.43	%	10.26	%	8.19	%	Decrease
	107		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	422
Ceded business
Foreign corporate private securities	5		Discounted cash flow	Discount rate	13.58	%	20.00	%	14.45	%	Decrease
Deposit asset	430		Fair values are determined using the same unobservable inputs as insurance liabilities.
Reinsurance recoverables	179		Fair values are determined using the same unobservable inputs as insurance liabilities.
Liabilities:
Insurance liabilities
Retained business	$	2,542	Discounted cash flow	Equity volatility curve (2)	17	%	25	%			Increase
				Lapse rate(3)	0.65	%	13	%			Decrease
				Spread over risk free (4)	0.00	%	2.25	%			Decrease
				Utilization rate(5)	87.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Ceded business	2,032		Discounted cash flow	Equity volatility curve (2)	17	%	25	%			Increase
				Lapse rate(3)	0.65	%	13	%			Decrease
				Spread over risk free (4)	0.00	%	1.95	%			Decrease
				Utilization rate(5)	87.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Net modified coinsurance payable	68		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 September 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 September 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	$	210	$	(5)	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	205	$	(4)
Foreign corporate private securities	34		—		—		—		—		—		—		9		—		43		—
Asset-backed securities	208		—		6		—		—		(1)		—		—		—		213		(1)
Mortgage and other loans
Residential mortgage loans	151		—		246		—		—		(53)		—		—		—		344		—
Commercial mortgage loans	78		—		—		—		—		—		—		—		—		78		—
Ceded Business
Foreign corporate private securities	3		—		5		—		—		(3)		—		—		—		5		—
Deposit asset	476		(13)		—		—		—		—		(33)		—		—		430		—
Reinsurance recoverables	200		(21)		—		—		—		—		—		—		—		179		—
Net modified coinsurance receivable (payable)	(81)		13		—		—		—		—		—		—		—		(68)		—

	Successor Company
	Nine Months Ended September 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	$	(4)	$	46	$	—	$	—	$	(1)	$	—	$	18	$	—	$	205	$	(3)
Foreign corporate private securities	36		(2)		—		—		—		—		—		9		—		43		(2)
Asset-backed securities	155		(2)		62		—		—		(2)		—		—		—		213		(2)
Mortgage and other loans
Residential mortgage loans	161		—		290		—		—		(107)		—		—		—		344		—
Commercial mortgage loans	35		—		43		—		—		—		—		—		—		78		—
Ceded Business
Foreign corporate private securities	—		—		10		—		—		(5)		—		—		—		5		—
Deposit asset	607		(21)		—		—		—		—		(156)		—		—		430		—
Reinsurance recoverables	235		(56)		—		—		—		—		—		—		—		179		—
Net modified coinsurance receivable (payable)	18		(86)		—		—		—		—		—		—		—		(68)		—

	Successor Company
	Three Months Ended September 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)	$	314	$	(22)	$	232	$	—	$	—	$	(44)	$	(114)	$	—	$	—	$	366	$	—
Structured securities(4)	25		(2)		150		—		—		(18)		—		—		—		155		—
Other assets:
Other invested assets	—		—		71		—		—		—		—		—		—		71		—
Secured receivable	1,555		(9)		22		(60)		—		—		(1,508)		—		—		—		—
Deposit asset	2,158		(3)		—		—		—		—		(1,296)		—		—		859		—
Reinsurance recoverables	378		(158)		—		—		—		—		—		—		—		220		—
Net modified coinsurance receivable	215		(145)		—		—		—		—		—		—		—		70		—

	Successor Company
	Six Months Ended September 30, 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 maturity securities
Corporate securities(3)	$	190	$	(38)	$	439	$	—	$	—	$	(55)	$	(117)	$	—	$	(53)	$	366	$	—
Structured securities(4)	33		(2)		175		(10)		—		(18)		(10)		—		(13)		155		—
Other assets:
Other invested assets	—		—		71		—		—		—		—		—		—		71		—
Secured receivable	1,622		(59)		22		(75)		—		—		(1,510)		—		—		—		—
Deposit asset	2,615		(144)		—		—		—		—		(1,612)		—		—		859		—
Reinsurance recoverables	344		(124)		—		—		—		—		—		—		—		220		—
Net modified coinsurance receivable	5		65		—		—		—		—		—		—		—		70		—

	Successor Company
	Three Months Ended September 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	$	2,711	$	(122)	$	425	$	(570)	$	98	$	—	$	2,542
Ceded Business	2,273		(317)		144		(84)		16		—		2,032

	Successor Company
	Nine Months Ended September 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	$	(824)	$	660	$	(524)	$	294	$	(5)	$	2,542
Ceded Business	2,605		(942)		354		(28)		43		—		2,032

	Successor Company
	Three Months Ended September 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	$	11,257	$	(4,615)	$	393	$	(808)	$	111	$	(34)	$	6,304

	Successor Company
	Six Months Ended September 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	$	13,611	$	(6,269)	$	1,599	$	(2,328)	$	209	$	(518)	$	6,304

"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). The components of the assumption update are included in "Incurred Losses", see Note 1 for further information.

	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
	September 30, 2023
	Fair Value								Carrying Amount
	Level 1		Level 2		Level 3		Total		Total
	(in millions)
Assets:
Accrued investment income	$	—	$	57	$	—	$	57	$	57
Other invested assets - Policy loans	—		—		11		11		11
Liabilities:
Repurchase agreements	$	—	$	1,009	$	—	$	1,009	$	1,009

	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