As discussed in Note 2, we have elected to apply the fair value option for FLIAC's entire portfolio of fixed maturity and equity securities and mortgage loans. The impact of the election has resulted in the elimination of a significant portion of the required disclosures for available-for-sale securities and mortgage loans. Disclosures for historical periods under the Predecessor Company are retained at the end of this note under “Predecessor Company”.


	December 31,
	2023						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	24		—		24		344		1		345
Total LPs/LLCs	24		9		33		344		10		354
Derivative instruments	—		117		117		85		—		85
Other	61		—		61		11		—		11
Total other invested assets	$	85	$	126	$	211	$	440	$	10	$	450


	December 31,
	2023						2022
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Fixed maturity securities	$	48	$	8	$	56	$	37	$	10	$	47
Mortgage loans	3		—		3		1		—		1
Short-term investments and cash equivalents	—		1		1		3		1		4
Total accrued investment income	$	51	$	9	$	60	$	41	$	11	$	52

As of December 31, 2023, the aggregate fair value of mortgage loans that were 90 days or more past due and in non-accrual status was $2 million. The aggregate unpaid principal balance for these loans approximated fair value as of December 31, 2023. As of December 31, 2022, there were no mortgage loans that were 90 days or more past due or in non-accrual status.

There were no write-downs on accrued investment income for the year ended December 31, 2023 or the nine months ended December 31, 2022.


	Year Ended December 31, 2023						Nine Months Ended December 31, 2022
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Fixed maturity securities	$	221	$	51	$	272	$	123	$	94	$	217
Equity securities	—		5		5		—		3		3
Secured receivable	—		—		—		—		18		18
Mortgage loans	23		—		23		2		—		2
Other invested assets	27		2		29		2		7		9
Short-term investments and cash equivalents	22		20		42		—		10		10
Gross investment income	$	293	$	78	$	371	$	127	$	132	$	259
Less: investment expenses (1)	(53)		(3)		(56)		(2)		(2)		(4)
Net investment income	$	240	$	75	$	315	$	125	$	130	$	255

(1) For the year ended December, 31, 2023, investment expenses within the Retained Business includes $33 million of expense related to liabilities associated with repurchase agreements.


	Year Ended December 31, 2023
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	160	$	(35)	$	125	$	41	$	(22)	$	19	$	201	$	(57)	$	144
Equity securities	—		—		—		5		—		5		5		—		5
Mortgage loans	2		—		2		—		—		—		2		—		2
Derivatives	—		(750)		(750)		—		289		289		—		(461)		(461)
Total	$	162	$	(785)	$	(623)	$	46	$	267	$	313	$	208	$	(518)	$	(310)


	Nine Months Ended December 31, 2022
	Retained Business						Ceded Business						Total Business
	Unrealized		Realized		Total		Unrealized		Realized		Total		Unrealized		Realized		Total
	(in millions)
Fixed maturity securities	$	(517)	$	(123)	$	(640)	$	232	$	(501)	$	(269)	$	(285)	$	(624)	$	(909)
Equity securities	—		—		—		(27)		—		(27)		(27)		—		(27)
Secured receivable	—		—		—		—		(59)		(59)		—		(59)		(59)
Derivatives	—		(221)		(221)		—		(691)		(691)		—		(912)		(912)
Total	$	(517)	$	(344)	$	(861)	$	205	$	(1,251)	$	(1,046)	$	(312)	$	(1,595)	$	(1,907)

In the normal course of business, FLIAC sells securities under agreements to repurchase and enters into securities lending transactions.

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.


	December 31,
	2023								2022
	Remaining Contractual Maturities of the Agreements
	Up to 30 days		30-90 days		1-5 years		Total		Up to 30 days		30-90 days		Greater than 90 days		Total

U.S. corporate public securities	$	356	$	108	$	503	$	967	$	111	$	200	$	—	$	311

The fair value of the securities posted as collateral under the repurchase agreements was $999 million and $326 million as of December 31, 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.


	December 31, 2022
	Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 days		30-90 days		Total

Equity securities	$	106	$	—	$	—	$	106

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

The following table sets forth the sources of proceeds and the associated investment gains (losses) and losses on write-downs related to available-for-sale fixed maturity securities for the Predecessor Company:


	Predecessor Company
	Three Months Ended March 31		Year Ended December 31
	2022		2021
	(in millions)
Fixed maturity securities, available-for-sale:
Proceeds from sales (1)	$	294	$	8,319
Proceeds from maturities/prepayments	108		828
Gross investment gains on sales and maturities	—		1,413
Gross investment losses on sales and maturities	(21)		(88)
Write-downs recognized in earnings (2)	—		(23)

(1)Excludes activity from non-cash related proceeds due to the timing of trade settlements of $20.3 million and $253.4 million for the three months ended March 31, 2022 and the year ended December 31, 2021, respectively.

There was no change in the allowance for credit losses for fixed maturity securities, available-for-sale, during both the three months ended March 31, 2022 and the year ended December 31, 2021.

The allowance for credit losses for mortgage and other loans declined by $1 million and $2 million during the three months ended March 31, 2022 and the year ended December 31, 2021, respectively. The decrease in each period related to the improving credit environment.


	Predecessor Company
	Three Months Ended March 31		Year Ended December 31
	2022		2021
	(in millions)
Fixed maturity securities (1)	$	61	$	383
Equity securities	1		5
Commercial mortgage and other loans	11		65
Other invested assets	29		63
Short-term investments and cash equivalents	1		1
Gross investment income	103		517
Less: investment expenses	(4)		(27)
Net investment income	$	99	$	490


	Predecessor Company
	Three Months Ended March 31		Year Ended December 31
	2022		2021
	(in millions)
Fixed maturity securities (1)	$	(21)	$	1,302
Mortgage and other loans	—		53
Derivatives (2)	502		6,124
Other invested assets	—		10
Investment gains, net	$	481	$	7,489

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