SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2024

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 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 March 31, 2024 and December 31, 2023, we had a modified coinsurance payable of $1,695 million and $1,603 million, respectively, equal to the assets held in the Ceded Business, and are included in the net modified coinsurance receivable/payable.

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

	March 31, 2024
	Retained Business		Ceded Business		Total
	(in millions)
ASSETS
Total investments	$	4,661	$	1,507	$	6,168
Cash and cash equivalents	298		143		441
Accrued investment income	52		8		60
Reinsurance recoverables	—		155		155
Deposit asset	—		426		426
Income taxes	80		—		80
Other assets	43		47		90
Separate account assets	22,146		2,116		24,262
TOTAL ASSETS	$	27,280	$	4,402	$	31,682
LIABILITIES AND EQUITY
LIABILITIES
Insurance liabilities	$	2,342	$	2,203	$	4,545
Net modified coinsurance payable	—		72		72
Liabilities associated with secured borrowing arrangements	1,121		—		1,121
Other liabilities	249		11		260
Separate account liabilities	22,146		2,116		24,262
TOTAL LIABILITIES	25,858		4,402		30,260
EQUITY	1,422		—		1,422
TOTAL LIABILITIES AND EQUITY	$	27,280	$	4,402	$	31,682

	December 31, 2023
	Retained Business		Ceded Business		Total
	(in millions)
ASSETS
Total investments	$	4,680	$	1,199	$	5,879
Cash and cash equivalents	534		406		940
Accrued investment income	51		9		60
Reinsurance recoverables	—		206		206
Deposit asset	—		438		438
Income taxes	99		—		99
Other assets	61		—		61
Separate account assets	21,800		2,070		23,870
TOTAL ASSETS	$	27,225	$	4,328	$	31,553
LIABILITIES AND EQUITY
LIABILITIES
Insurance liabilities	$	2,835	$	2,168	$	5,003
Net modified coinsurance payable	—		78		78
Liabilities associated with secured borrowing arrangements	967		—		967
Other liabilities	261		12		273
Separate account liabilities	21,800		2,070		23,870
TOTAL LIABILITIES	25,863		4,328		30,191
EQUITY	1,362		—		1,362
TOTAL LIABILITIES AND EQUITY	$	27,225	$	4,328	$	31,553

The following is comprehensive income by segment:

	Three Months Ended March 31, 2024
	Retained Business		Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	10	$	—	$	10
Policy charges and fee income	112		—		112
Net investment income	56		14		70
Asset management and service fees	23		—		23
Other income	2		—		2
Investment gains (losses), net	(425)		104		(321)
TOTAL REVENUES	(222)		118		(104)
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	(432)		118		(314)
Commission expense	23		—		23
General, administrative and other expenses	18		—		18
TOTAL BENEFITS AND EXPENSES	(391)		118		(273)
INCOME FROM OPERATIONS BEFORE INCOME TAXES	169		—		169
Less: Income tax expense	24		—		24
NET INCOME	$	145	$	—	$	145
Other comprehensive loss, before tax:
Changes in own-credit risk related to insurance liabilities	(13)		—		(13)
Less: Income tax benefit	(3)		—		(3)
Other comprehensive loss, net of taxes	(10)		—		(10)
COMPREHENSIVE INCOME	$	135	$	—	$	135

	Three Months Ended March 31, 2023
	Retained Business		Ceded Business		Total
	(in millions)
REVENUES
Premiums	$	7	$	—	$	7
Policy charges and fee income	117		—		117
Net investment income	56		20		76
Asset management and service fees	22		—		22
Other income	1		—		1
Investment gains, net	30		135		165
TOTAL REVENUES	233		155		388
BENEFITS AND EXPENSES
Policyholder benefits and changes in fair value of insurance liabilities	185		155		340
Commission expense	23		—		23
General, administrative and other expenses	18		—		18
TOTAL BENEFITS AND EXPENSES	226		155		381
INCOME FROM OPERATIONS BEFORE INCOME TAXES	7		—		7
Income tax expense	—		—		—
NET INCOME	$	7	$	—	$	7
Other comprehensive income, before tax:
Changes in own-credit risk related to insurance liabilities	22		—		22
Less: Income tax expense	5		—		5
Other comprehensive income, net of taxes	17		—		17
COMPREHENSIVE INCOME	$	24	$	—	$	24