Other Income and Expense

9 Months Ended

Sep. 30, 2023

Other Income and Expenses [Abstract]

Other Income and Expense Disclosure

Other income and expense

	Three Months Ended				Nine Months Ended
	September 30				September 30
(in millions of U.S. dollars)	2023		2022		2023		2022
Equity in net income (loss) of partially-owned entities	$	150	$	(111)	$	610	$	180
Gains (losses) from fair value changes in separate account assets (1)	(19)		(67)		(56)		(116)
Asset management and performance fee revenue	55		—		55		—
Asset management and performance fee expense	(33)		—		(33)		—
Federal excise and capital taxes	(6)		(6)		(17)		(15)
Other	7		(18)		(9)		(40)
Total	$	154	$	(202)	$	550	$	9

(1)     Related to gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP.

Equity in net income of partially-owned entities includes our share of net income or loss, both underlying operating income and mark-to-market movement, related to partially-owned investment companies (private equity) where we own more than three percent, and partially-owned insurance companies. This line item includes mark-to-market gains (losses) on private equities of $51 million and $290 million for the three and nine months ended September 30, 2023, respectively, and $(190) million and $(69) million, respectively, for the prior year periods.

Other income and expense includes net income attributable to our investment in Huatai under the equity method of accounting comprising income of $36 million through June 30, 2023, and $28 million and $83 million for the three and nine months ended September 30, 2022, respectively. Effective July 1, 2023, we discontinued the equity method of accounting and include the results of operations of Huatai in our consolidated results.

Also included in Other income and expense are gains (losses) from fair value changes in separate account assets that do not qualify for separate account reporting under GAAP. The offsetting movement in the separate account liabilities is included in Policy benefits in the Consolidated statements of operations.

Asset management and performance fee revenue and expense primarily relate to the management of third-party assets by Huatai's asset management business, which is unrelated to Huatai Group's core insurance operations. These revenues and expenses are recognized in the period in which the services are performed.

Certain federal excise and capital taxes incurred as a result of capital management initiatives are included in Other income and expense as these are considered capital transactions and are excluded from underwriting results. Bad debt expense for uncollectible premiums is also included in Other income and expense.