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As Of Filer Filing For·On·As Docs:Size 8/12/22 Fortitude Life Ins & Annuity Co. 10-Q 6/30/22 85:20M |
Document/Exhibit Description Pages Size
1: 10-Q Quarterly Report HTML 4.34M
2: EX-31.1 Certification -- §302 - SOA'02 HTML 28K
3: EX-31.2 Certification -- §302 - SOA'02 HTML 28K
4: EX-32.1 Certification -- §906 - SOA'02 HTML 24K
5: EX-32.2 Certification -- §906 - SOA'02 HTML 25K
11: R1 Cover HTML 76K
12: R2 Unaudited Interim Statements of Financial Position HTML 125K
13: R3 Unaudited Interim Statements of Financial Position HTML 47K
(Parenthetical)
14: R4 Unaudited Interim Statements of Operations and HTML 113K
Comprehensive Income (Loss)
15: R5 Unaudited Interim Statements of Equity HTML 76K
16: R6 Unaudited Interim Statements of Cash Flows HTML 136K
17: R7 Unaudited Interim Statements of Cash Flows HTML 26K
(Parenthetical)
18: R8 Business and Basis of Presentation HTML 35K
19: R9 Significant Accounting Policies and Pronouncements HTML 52K
20: R10 Business Combination HTML 39K
21: R11 Segment Information HTML 90K
22: R12 Investments HTML 417K
23: R13 Derivatives and Hedging HTML 231K
24: R14 Fair Value of Assets and Liabilities HTML 652K
25: R15 Income Taxes HTML 30K
26: R16 Equity HTML 130K
27: R17 Commitments and Contingent Liabilities HTML 35K
28: R18 Related Party Transactions HTML 179K
29: R19 Significant Accounting Policies and Pronouncements HTML 68K
(Policies)
30: R20 Business Combination (Tables) HTML 38K
31: R21 Segment Information (Tables) HTML 114K
32: R22 Investments (Tables) HTML 429K
33: R23 Derivatives and Hedging (Tables) HTML 271K
34: R24 Fair Value of Assets and Liabilities (Tables) HTML 637K
35: R25 Equity (Tables) HTML 127K
36: R26 Related Party Transactions (Tables) HTML 160K
37: R27 Business and Basis of Presentation (Details) HTML 32K
38: R28 BUSINESS COMBINATION - Consideration Paid HTML 35K
(Details)
39: R29 BUSINESS COMBINATION - Assets Acquired and HTML 63K
Liabilities Assumed (Details)
40: R30 SEGMENT INFORMATION - Narrative (Details) HTML 29K
41: R31 SEGMENT INFORMATION - Balance Sheet by Segment HTML 115K
(Details)
42: R32 SEGMENT INFORMATION= Narrative (Details) HTML 121K
43: R33 INVESTMENTS - Narrative (Details) HTML 83K
44: R34 INVESTMENTS - Fixed Maturities, Available-for-sale HTML 73K
Securities (Details)
45: R35 INVESTMENTS - Gross Unrealized Losses On Fixed HTML 84K
Maturity Securities (Details)
46: R36 INVESTMENTS - Realized Gains (Losses) on HTML 46K
Investments (Details)
47: R37 INVESTMENTS - Allowance for Credit Losses for HTML 59K
Fixed Maturity Securities (Details)
48: R38 INVESTMENTS - Commercial mortgage and agricultural HTML 59K
property loans by property type (Details)
49: R39 INVESTMENTS - Commercial mortgage and other loans HTML 46K
(Details)
50: R40 INVESTMENTS - Credit Quality Indicators (Details) HTML 95K
51: R41 INVESTMENTS - Aging of Past Due Loans (Details) HTML 53K
52: R42 INVESTMENTS - Other Invested Assets (Details) HTML 44K
53: R43 INVESTMENTS - Accrued Investment Income (Details) HTML 37K
54: R44 INVESTMENTS - Net Investment Income (Details) HTML 44K
55: R45 INVESTMENTS - Realized Investment Gains (Losses), HTML 37K
Net (Details)
56: R46 INVESTMENTS - Net unrealized Gains (Losses) on HTML 33K
Investments within AOCI (Details)
57: R47 INVESTMENTS - Repurchase Agreements and Securities HTML 40K
Lending (Details)
58: R48 DERIVATIVES AND HEDGING - Primary Risks Managed by HTML 100K
Derivatives (Details)
59: R49 DERIVATIVES AND HEDGING - Offsetting Assets and HTML 120K
Liabilities (Details)
60: R50 DERIVATIVES AND HEDGING - Impact of Derivatives by HTML 48K
Operating Segment (Details)
61: R51 DERIVATIVES AND HEDGING - Impact of Derivatives by HTML 88K
Operating Segment (Details)
62: R52 DERIVATIVES AND HEDGING - Cash Flow Hedges in AOCI HTML 35K
(Details)
63: R53 FAIR VALUE OF ASSETS AND LIABILITIES - Assets and HTML 212K
Liabilities by Hierarchy Level (Details)
64: R54 FAIR VALUE OF ASSETS AND LIABILITIES - HTML 176K
Quantitative Information Regarding
Internally-Prices Level 3 Assets and Liabilities
(Details)
65: R55 FAIR VALUE OF ASSETS AND LIABILITIES - Changes in HTML 261K
Level 3 Assets and Liabilities (Details)
66: R56 FAIR VALUE OF ASSETS AND LIABILITIES - Gains and HTML 124K
Losses Resulting from Changes in Fair Value
(Details)
67: R57 FAIR VALUE OF ASSETS AND LIABILITIES - Secured HTML 34K
Receivable (Details)
68: R58 FAIR VALUE OF ASSETS AND LIABILITIES - Fair Value HTML 88K
of Financial Instruments (Details)
69: R59 Income Taxes (Details) HTML 29K
70: R60 EQUITY - Narrative (Details) HTML 27K
71: R61 EQUITY - Components of AOCI (Details) HTML 66K
72: R62 EQUITY - Reclassification out of Accumulated Other HTML 36K
Comprehensive Income (Details)
73: R63 EQUITY - Other Net Unrealized Investment Gain Loss HTML 69K
AOCI (Details)
74: R64 Commitments and Contingent Liabilities (Details) HTML 31K
75: R65 RELATED PARTY TRANSACTIONS - Successor Company HTML 47K
(Details)
76: R66 RELATED PARTY TRANSACTIONS - Predecessor Company HTML 97K
(Details)
77: R67 RELATED PARTY TRANSACTIONS - Schedule of HTML 118K
Affiliated Asset Transfers (Details)
78: R68 RELATED PARTY TRANSACTIONS - Schedule of HTML 44K
Reinsurance Amounts (Details)
79: R69 RELATED PARTY TRANSACTIONS - Schedule of HTML 30K
Reinsurance By Counterparty (Details)
80: R70 RELATED PARTY TRANSACTIONS - Schedule of HTML 94K
Reinsurance Impact on Statement of Operations and
Comprehensive Income (Loss) (Details)
83: XML IDEA XML File -- Filing Summary XML 153K
81: XML XBRL Instance -- fliac-20220630_htm XML 7.62M
82: EXCEL IDEA Workbook of Financial Reports XLSX 239K
7: EX-101.CAL XBRL Calculations -- fliac-20220630_cal XML 311K
8: EX-101.DEF XBRL Definitions -- fliac-20220630_def XML 1.26M
9: EX-101.LAB XBRL Labels -- fliac-20220630_lab XML 2.29M
10: EX-101.PRE XBRL Presentations -- fliac-20220630_pre XML 1.60M
6: EX-101.SCH XBRL Schema -- fliac-20220630 XSD 222K
84: JSON XBRL Instance as JSON Data -- MetaLinks 524± 837K
85: ZIP XBRL Zipped Folder -- 0000881453-22-000054-xbrl Zip 741K
| fliac-20220630 |
| i ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
| i ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
| i Arizona | i 06-1241288 | |||||||
| (State
or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | |||||||
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
| Not Applicable | Not Applicable | Not Applicable | ||||||
| Large Accelerated Filer | ☐ | Accelerated Filer | ☐ | ||||||||
| i Non-accelerated Filer | ☒ | Smaller Reporting Company | i ☐ | ||||||||
| Emerging Growth Company | i ☐ | ||||||||||
| Page | |||||||||||
| Item 1. | |||||||||||
| Item 2. | |||||||||||
| Item 3. | |||||||||||
| Item 4. | |||||||||||
| Item 1. | |||||||||||
| Item 1A. | |||||||||||
| Item 6. | |||||||||||
| Successor Company | Predecessor Company | |||||||
| June 30, 2022 | December 31, 2021 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
Fixed maturity securities: June 30, 2022 at fair value (1); December 31, 2021, available-for-securities, at fair value (net of $ i 1
allowance for credit losses, amortized cost - $ i 8,556) | $ | i 7,665 | $ | i 8,771 | ||||
Fixed
maturity securities, trading, at fair value (amortized cost: December 31, 2021 - $ i 28) | i — | i 27 | ||||||
Equity
securities, at fair value (cost - June 30, 2022 - $ i 201; December 31, 2021 - $ i 323) (1) | i 183 | i 322 | ||||||
| Secured receivable, at fair value (1) | i 1,555 | i — | ||||||
Commercial
mortgage and other loans, (net of $ i 5 allowance for credit losses) | i — | i 1,504 | ||||||
| Short-term investments | i 43 | i 875 | ||||||
Other invested assets (includes
$ i 178 and $ i 13 of assets measured at fair value at June 30, 2022 and December 31, 2021, respectively) | i 273 | i 106 | ||||||
| Total investments | i 9,719 | i 11,605 | ||||||
| Cash and cash equivalents | i 1,564 | i 2,016 | ||||||
| Accrued investment income | i 69 | i 61 | ||||||
| Reinsurance recoverables (1) | i 378 | i 8,108 | ||||||
| Net modified coinsurance receivable, at fair value (1) | i 215 | i — | ||||||
| Income taxes | i 124 | i 909 | ||||||
| Deposit asset, at fair value (1) | i 2,158 | i 2,659 | ||||||
| Other assets | i 198 | i 954 | ||||||
| Separate account assets | i 25,088 | i 32,267 | ||||||
| TOTAL ASSETS | $ | i 39,513 | $ | i 58,579 | ||||
| LIABILITIES AND EQUITY | ||||||||
| LIABILITIES | ||||||||
| Insurance liabilities, at fair value (1) | $ | i 11,257 | $ | i — | ||||
| Future policy benefits | i — | i 4,505 | ||||||
| Policyholders’ account balances | i — | i 11,750 | ||||||
| Reinsurance payables | i — | i 7,183 | ||||||
| Other liabilities | i 1,388 | i 1,192 | ||||||
| Separate account liabilities | i 25,088 | i 32,267 | ||||||
| Total liabilities | i 37,733 | i 56,897 | ||||||
| COMMITMENTS AND CONTINGENT LIABILITIES (See Note 10) | i | i | ||||||
| EQUITY | ||||||||
Common
stock, $ i i 100 / par value; i i i i i i 25,000 / / / / /
shares authorized, issued and outstanding | i 3 | i 3 | ||||||
| Additional paid-in capital | i 1,763 | i 592 | ||||||
| Retained (deficit) earnings | ( i 180) | i 917 | ||||||
| Accumulated other comprehensive income | i 194 | i 170 | ||||||
| Total equity | i 1,780 | i 1,682 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | i 39,513 | $ | i 58,579 | ||||
| (1) As of April 1, 2022 we have elected the fair value option for these financial statement line items. See Note 2 for further discussion. | ||||||||
| Successor Company | Predecessor Company | |||||||||||||||||||
| Three Months Ended June 30 | Three Months Ended March 31 | Three
Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||
| 2022 | 2021 | |||||||||||||||||||
| REVENUES | ||||||||||||||||||||
| Premiums | $ | i 3 | $ | i 8 | $ | i 11 | $ | i 27 | ||||||||||||
| Policy charges and fee income | i 130 | i 97 | i 514 | i 1,022 | ||||||||||||||||
| Net investment income | i 97 | i 99 | i 146 | i 285 | ||||||||||||||||
| Asset management and service fees | i 22 | i 20 | i 106 | i 210 | ||||||||||||||||
| Other income (loss) | i 1 | ( i 19) | i 259 | ( i 514) | ||||||||||||||||
| Investment gains (losses), net | ( i 1,298) | i 481 | ( i 837) | i 2,292 | ||||||||||||||||
| TOTAL REVENUES | ( i 1,045) | i 686 | i 199 | i 3,322 | ||||||||||||||||
| BENEFITS AND EXPENSES | ||||||||||||||||||||
| Policyholder benefits and changes in fair value of insurance liabilities | ( i 870) | i — | i — | i — | ||||||||||||||||
| Policyholders’ benefits | i — | i 26 | ( i 4) | i 26 | ||||||||||||||||
| Interest credited to policyholders’ account balances | i — | i 85 | i 21 | i 169 | ||||||||||||||||
| Amortization of deferred policy acquisition costs | i — | i 104 | i 40 | i 383 | ||||||||||||||||
| Commission expense | i 18 | i 35 | i 166 | i 331 | ||||||||||||||||
| General, administrative and other expenses | i 38 | i 3 | i 76 | i 128 | ||||||||||||||||
| TOTAL BENEFITS AND EXPENSES | ( i 814) | i 253 | i 299 | i 1,037 | ||||||||||||||||
| INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | ( i 231) | i 433 | ( i 100) | i 2,285 | ||||||||||||||||
| Income tax expense (benefit) | ( i 51) | i 77 | ( i 25) | i 469 | ||||||||||||||||
| NET INCOME (LOSS) | $ | ( i 180) | $ | i 356 | $ | ( i 75) | $ | i 1,816 | ||||||||||||
| Other comprehensive income (loss), before tax: | ||||||||||||||||||||
| Changes in own-credit risk related to insurance liabilities | i 245 | i — | i — | i — | ||||||||||||||||
| Net unrealized investment gains (losses) | i — | ( i 561) | i 296 | ( i 1,492) | ||||||||||||||||
| Total | i 245 | ( i 561) | i 296 | ( i 1,492) | ||||||||||||||||
| Less: Income tax expense (benefit) related to other comprehensive income (loss) | i 51 | ( i 118) | i 62 | ( i 313) | ||||||||||||||||
| Other comprehensive income (loss), net of taxes | i 194 | ( i 443) | i 234 | ( i 1,179) | ||||||||||||||||
| Comprehensive income (loss) | $ | i 14 | $ | ( i 87) | $ | i 159 | $ | i 637 | ||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings/(Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||||||||||||||
| Balance, 12/31/2021 (Predecessor Company) | $ | i 3 | $ | i 592 | $ | i 917 | $ | i 170 | $ | i 1,682 | |||||||||||||||||||
| Return of capital | — | ( i 306) | — | — | ( i 306) | ||||||||||||||||||||||||
| Comprehensive loss: | |||||||||||||||||||||||||||||
| Net income | — | — | i 356 | — | i 356 | ||||||||||||||||||||||||
| Other comprehensive loss, net of tax | — | — | — | ( i 443) | ( i 443) | ||||||||||||||||||||||||
| Total comprehensive loss | ( i 87) | ||||||||||||||||||||||||||||
| Balance, 3/31/2022 (Predecessor Company) | $ | i 3 | $ | i 286 | $ | i 1,273 | $ | ( i 273) | $ | i 1,289 | |||||||||||||||||||
| Balance, 4/1/2022 (Successor Company) | $ | i 3 | $ | i 1,763 | $ | i — | $ | i — | $ | i 1,766 | |||||||||||||||||||
| Comprehensive income (loss): | |||||||||||||||||||||||||||||
| Net loss | — | — | ( i 180) | — | ( i 180) | ||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | i 194 | i 194 | ||||||||||||||||||||||||
| Total comprehensive income | i 14 | ||||||||||||||||||||||||||||
| Balance, 6/30/2022 (Successor Company) | $ | i 3 | $ | i 1,763 | $ | ( i 180) | $ | i 194 | $ | i 1,780 | |||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings/(Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||||||||||||||
| Balance, December 31, 2020 | $ | i 3 | $ | i 4,383 | $ | ( i 3,217) | $ | i 1,533 | $ | i 2,701 | |||||||||||||||||||
| Dividend to parent | — | — | ( i 192) | — | ( i 192) | ||||||||||||||||||||||||
| Comprehensive income (loss): | |||||||||||||||||||||||||||||
| Net income (loss) | — | — | i 1,890 | — | i 1,890 | ||||||||||||||||||||||||
Other
comprehensive income (loss), net of tax | — | — | ( i 1,413) | ( i 1,413) | |||||||||||||||||||||||||
| Total comprehensive income | i 477 | ||||||||||||||||||||||||||||
| Balance, March 31, 2021 | $ | i 3 | $ | i 4,383 | $ | ( i 1,520) | $ | i 120 | $ | i 2,986 | |||||||||||||||||||
| Dividend to parent | ( i 188) | ( i 188) | |||||||||||||||||||||||||||
| Comprehensive income: | |||||||||||||||||||||||||||||
| Net loss | ( i 75) | ( i 75) | |||||||||||||||||||||||||||
| Other comprehensive income, net of tax | i 234 | i 234 | |||||||||||||||||||||||||||
| Total comprehensive income | i 160 | ||||||||||||||||||||||||||||
| Balance, June 30, 2021 | $ | i 3 | $ | i 4,383 | $ | ( i 1,782) | $ | i 354 | $ | i 2,958 | |||||||||||||||||||
| Successor Company | Predecessor Company | |||||||||||||
| Three Months Ended June 30 | Three Months Ended March 31 | Six Months Ended June 30 | ||||||||||||
| 2022 | 2021 | |||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
| Net income (loss) | $ | ( i 180) | $ | i 356 | $ | i 1,815 | ||||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||
| Investment (gains) losses, net | i 1,298 | ( i 481) | ( i 2,292) | |||||||||||
| Interest credited to policyholders’ account balances | i — | i 85 | i 169 | |||||||||||
| Other | ( i 6) | i 2 | i 4 | |||||||||||
| Change in: | ||||||||||||||
| Insurance liabilities, at fair value | ( i 2,149) | i — | i — | |||||||||||
| Fair value of deposit asset | i 457 | i — | i — | |||||||||||
| Net modified coinsurance receivable, at fair value | i 601 | i — | i — | |||||||||||
| Future policy benefits | i — | i 60 | i 549 | |||||||||||
| Accrued investment income | ( i 10) | i 1 | i 11 | |||||||||||
| Net receivables from/payables to parent and affiliates | i — | ( i 37) | ( i 41) | |||||||||||
| Deferred policy acquisition costs | i — | i 104 | i 187 | |||||||||||
| Income taxes | i 228 | i 142 | i 55 | |||||||||||
| Reinsurance recoverables, net | ( i 34) | ( i 39) | ( i 21) | |||||||||||
| Derivatives, net | i 303 | ( i 1,079) | ( i 3,580) | |||||||||||
| Other, net | ( i 39) | ( i 3) | i 517 | |||||||||||
| Cash flows from (used in) operating activities | i 469 | ( i 889) | ( i 2,627) | |||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
| Proceeds from the sale/maturity/prepayment of: | ||||||||||||||
| Fixed maturity securities, at fair value | i 2,295 | i — | i — | |||||||||||
| Fixed maturity securities, available-for-sale | i — | i 422 | i 8,460 | |||||||||||
| Fixed maturity securities, trading | i — | i — | i 2,038 | |||||||||||
| Equity securities | i — | i 95 | i 46 | |||||||||||
| Commercial mortgage and other loans | i — | i 39 | i 64 | |||||||||||
| Other invested assets | i 3 | i 1 | i 28 | |||||||||||
| Short-term investments | i 263 | i 795 | i 320 | |||||||||||
| Payments for the purchase/origination of: | ||||||||||||||
| Fixed maturity securities, at fair value | ( i 3,282) | i — | i — | |||||||||||
| Fixed maturity securities, available-for-sale | i — | ( i 751) | ( i 3,712) | |||||||||||
| Fixed maturity securities, trading | i — | i — | ( i 5,302) | |||||||||||
| Equity securities, at fair value | ( i 10) | i — | ( i 6) | |||||||||||
| Commercial mortgage and other loans | i — | ( i 13) | ( i 463) | |||||||||||
| Other invested assets | i — | i — | ( i 27) | |||||||||||
| Short-term investments | ( i 6) | ( i 94) | ( i 79) | |||||||||||
| Derivatives, net | i — | i 3 | ( i 64) | |||||||||||
| Other, net | i 14 | i — | i — | |||||||||||
| Cash flows from (used in) investing activities | ( i 723) | i 497 | i 1,303 | |||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
| Net Policyholder's account deposits (withdrawals) | ( i 62) | i 62 | i 2,859 | |||||||||||
| Cash collateral for loaned securities | ( i 19) | i 205 | i — | |||||||||||
| Net increase/(decrease) in short-term borrowing | i — | i — | ( i 120) | |||||||||||
| Drafts outstanding | i 121 | ( i 7) | ( i 15) | |||||||||||
| Distribution to parent | i — | ( i 306) | ( i 380) | |||||||||||
| Repurchase agreements | i 200 | i — | i — | |||||||||||
| Cash flows from (used in) financing activities | i 240 | ( i 46) | i 2,344 | |||||||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ( i 14) | ( i 438) | i 1,021 | |||||||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | i 1,578 | i 2,016 | i 1,069 | |||||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | i 1,564 | $ | i 1,578 | $ | i 2,091 | ||||||||
| Successor Company | Predecessor Company | ||||||||||||||||||||||
| Financial Statement Line Item | |||||||||||||||||||||||
| STATEMENTS OF FINANCIAL POSITION | |||||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Investments | |||||||||||||||||||||||
| "Fixed maturity securities, at fair value" | "Fixed
maturity securities, available-for-sale" and "Fixed maturity securities, trading" | ||||||||||||||||||||||
| "Equity securities" | "Equity securities" | ||||||||||||||||||||||
| "Secured Receivable" | "Commercial mortgage and other loans" (1) | ||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| "Net modified coinsurance receivable, at fair value" (2) "Reinsurance recoverables" | "Reinsurance recoverables" and "Reinsurance payables" | ||||||||||||||||||||||
| "Deposit asset at fair value" (3) | "Deposit asset" | ||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| "Insurance liabilities, at fair value" | "Future policy benefits" and "Policyholders' account balances" | ||||||||||||||||||||||
| STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| "Investment gains (losses), net" | "Realized investment gains (losses), net" and "Net unrealized investment gains (losses)" (4) | ||||||||||||||||||||||
| Benefits and Expenses | |||||||||||||||||||||||
| "Policyholder benefits and changes in fair value of insurance liabilities" | "Policyholders' benefits" and "Interest credited to policyholders' account balances" | ||||||||||||||||||||||
| STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||||
| "Changes in own-credit risk related to insurance liabilities" | N/A | ||||||||||||||||||||||
| (1) Also includes certain fixed maturity securities previously contained in "Fixed maturity securities, available-for-sale" | |||||||||||||||||||||||
| (2) Balances unrelated to the modified coinsurance agreement will remain in the respective reinsurance recoverable and payable line items | |||||||||||||||||||||||
| (2) Previously included within "Other assets" | |||||||||||||||||||||||
| (4) Represents "Net unrealized investment gains (losses)" included in Other comprehensive income (loss) | |||||||||||||||||||||||
| Standard | Description | Effective date and method of adoption | Effect on the financial statements or other significant matters | |||||||||||||||||
ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure | This ASU eliminates the accounting guidance for Troubled Debt Restructurings (“TDR”) for creditors and adds enhanced disclosure requirements for certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. Following adoption of the ASU, all loan refinancings are subject to the modification guidance in ASC 310-20. This ASU also amends the guidance on the vintage disclosures to require disclosure of current-period gross write-offs by year of origination. | January 1, 2023 using the prospective method with an option to apply a modified retrospective transition method for the recognition and measurement of TDRs which will include a cumulative effect adjustment on the balance sheet in the period of adoption. Early adoption is permitted beginning January 1, 2022, including adoption in an interim period provided guidance is applied as of the beginning of the year. | Following our election of the fair value option on our secured receivable, we do not expect the adoption of the ASU to have an impact on the Financial Statements or Notes to the Financial Statements | |||||||||||||||||
| Successor Company | |||||
| April 1, 2022 | |||||
| (in millions) | |||||
| ASSETS | |||||
| Total investments | $ | i 10,807 | |||
| Cash and cash equivalents | i 1,578 | ||||
| Reinsurance recoverables | i 344 | ||||
| Net modified coinsurance receivable | i 5 | ||||
| Income taxes | i 352 | ||||
| Deposit asset | i 2,615 | ||||
| Other assets | i 96 | ||||
| Separate account assets | i 29,426 | ||||
| TOTAL ASSETS | $ | i 45,223 | |||
| LIABILITIES | |||||
| Insurance liabilities | $ | i 13,661 | |||
| Other liabilities | i 370 | ||||
| Separate account liabilities | i 29,426 | ||||
| TOTAL LIABILITIES | i 43,457 | ||||
| Net assets acquired | i 1,766 | ||||
| Consideration | i 1,761 | ||||
| BARGAIN PURCHASE GAIN | $ | i 5 | |||
| June 30, 2022 | |||||||||||||||||
| Retained Business | Ceded Business | Total | |||||||||||||||
| (in millions) | |||||||||||||||||
| ASSETS | |||||||||||||||||
| Total Investments | $ | i 4,402 | $ | i 5,317 | $ | i 9,719 | |||||||||||
| Cash and cash equivalents | i 825 | i 739 | i 1,564 | ||||||||||||||
| Accrued investment income | i 41 | i 28 | i 69 | ||||||||||||||
| Net modified coinsurance receivable | i — | i 215 | i 215 | ||||||||||||||
| Reinsurance recoverables | i — | i 378 | i 378 | ||||||||||||||
| Income taxes | i 124 | i — | i 124 | ||||||||||||||
| Deposit asset | i — | i 2,158 | i 2,158 | ||||||||||||||
| Other assets | i 198 | i — | i 198 | ||||||||||||||
| Separate account assets | i 22,742 | i 2,346 | i 25,088 | ||||||||||||||
| TOTAL ASSETS | $ | i 28,332 | $ | i 11,181 | $ | i 39,513 | |||||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||
| LIABILITIES | |||||||||||||||||
| Insurance liabilities | $ | i 3,347 | $ | i 7,910 | $ | i 11,257 | |||||||||||
| Other liabilities | i 463 | i 925 | i 1,388 | ||||||||||||||
| Separate account liabilities | i 22,742 | i 2,346 | i 25,088 | ||||||||||||||
| TOTAL LIABILITIES | i 26,552 | i 11,181 | i 37,733 | ||||||||||||||
| EQUITY | i 1,780 | i — | i 1,780 | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | i 28,332 | $ | i 11,181 | $ | i 39,513 | |||||||||||
| Three Months Ended June 30, 2022 | |||||||||||||||||
| Retained Business | Ceded Business | Total | |||||||||||||||
| (in millions) | |||||||||||||||||
| REVENUES | |||||||||||||||||
| Premiums | $ | i 3 | $ | i — | $ | i 3 | |||||||||||
| Policy charges and fee income | i 130 | i — | i 130 | ||||||||||||||
| Net investment income | i 35 | i 62 | i 97 | ||||||||||||||
| Asset management and service fees | i 22 | i — | i 22 | ||||||||||||||
| Other income | i — | i 1 | i 1 | ||||||||||||||
| Investment losses, net | ( i 108) | ( i 1,190) | ( i 1,298) | ||||||||||||||
| TOTAL REVENUES | i 82 | ( i 1,127) | ( i 1,045) | ||||||||||||||
| BENEFITS AND EXPENSES | |||||||||||||||||
| Policyholder benefits and changes in fair value of insurance liabilities | i 257 | ( i 1,127) | ( i 870) | ||||||||||||||
| Commission expense | i 18 | i — | i 18 | ||||||||||||||
| General, administrative and other expenses | i 38 | i — | i 38 | ||||||||||||||
| TOTAL BENEFITS AND EXPENSES | i 313 | ( i 1,127) | ( i 814) | ||||||||||||||
| LOSS FROM OPERATIONS BEFORE INCOME TAXES | ( i 231) | i — | ( i 231) | ||||||||||||||
| Income tax benefit | ( i 51) | i — | ( i 51) | ||||||||||||||
| NET LOSS | $ | ( i 180) | $ | i — | $ | ( i 180) | |||||||||||
| Other comprehensive income, before tax: | |||||||||||||||||
| Changes in own-credit risk related to insurance liabilities | i 245 | i — | i 245 | ||||||||||||||
| Less: Income tax expense | i 51 | i — | i 51 | ||||||||||||||
| Other comprehensive income, net of taxes | i 194 | i — | i 194 | ||||||||||||||
| Comprehensive income | $ | i 14 | $ | i — | $ | i 14 | |||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Fixed maturities, available-for-sale: | |||||||||||||||||||||||||||||
| U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | i 654 | $ | i 74 | $ | i 1 | $ | i — | $ | i 727 | |||||||||||||||||||
| Obligations of U.S. states and their political subdivisions | i 281 | i 15 | i — | i — | i 296 | ||||||||||||||||||||||||
| Foreign government bonds | i 106 | i 9 | i 1 | i — | i 114 | ||||||||||||||||||||||||
| U.S. public corporate securities | i 2,345 | i 133 | i 18 | i — | i 2,460 | ||||||||||||||||||||||||
| U.S. private corporate securities | i 1,635 | i 24 | i 14 | i 1 | i 1,645 | ||||||||||||||||||||||||
| Foreign public corporate securities | i 793 | i 11 | i 9 | i — | i 795 | ||||||||||||||||||||||||
| Foreign private corporate securities | i 920 | i 5 | i 34 | i — | i 892 | ||||||||||||||||||||||||
| Asset-backed securities(1) | i 1,058 | i 5 | i 1 | i — | i 1,062 | ||||||||||||||||||||||||
| Commercial mortgage-backed securities | i 692 | i 22 | i 8 | i — | i 706 | ||||||||||||||||||||||||
| Residential mortgage-backed securities(2) | i 72 | i 3 | i — | i — | i 74 | ||||||||||||||||||||||||
| Total fixed maturities, available-for-sale | $ | i 8,556 | $ | i 301 | $ | i 85 | $ | i 1 | $ | i 8,771 | |||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||||||||
| Less Than Twelve Months | Twelve Months or More | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Fixed maturities, available-for-sale: | |||||||||||||||||||||||||||||||||||
| U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | i 74 | $ | i 1 | $ | i — | $ | i — | i 74 | $ | i 1 | ||||||||||||||||||||||||
| Obligations of U.S. states and their political subdivisions | i 5 | i — | i — | i — | i 5 | i — | |||||||||||||||||||||||||||||
| Foreign government bonds | i 13 | i 1 | i 7 | i — | i 20 | i 1 | |||||||||||||||||||||||||||||
| U.S. public corporate securities | i 696 | i 11 | i 153 | i 6 | i 849 | i 18 | |||||||||||||||||||||||||||||
| U.S. private corporate securities | i 855 | i 14 | i — | i — | i 855 | i 14 | |||||||||||||||||||||||||||||
| Foreign public corporate securities | i 522 | i 8 | i 50 | i 1 | i 572 | i 9 | |||||||||||||||||||||||||||||
| Foreign private corporate securities | i 689 | i 34 | i — | i — | i 689 | i 34 | |||||||||||||||||||||||||||||
| Asset-backed securities | i 499 | i 1 | i — | i — | i 499 | i 1 | |||||||||||||||||||||||||||||
| Commercial mortgage-backed securities | i 157 | i 5 | i 75 | i 3 | i 232 | i 8 | |||||||||||||||||||||||||||||
| Residential mortgage-backed securities | i 6 | i — | i — | i — | i 6 | i — | |||||||||||||||||||||||||||||
| Total fixed maturities, available-for-sale | $ | i 3,515 | $ | i 74 | $ | i 285 | $ | i 11 | $ | i 3,800 | $ | i 85 | |||||||||||||||||||||||
| Predecessor Company | |||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||
| 2021 | |||||||||||
| (in millions) | |||||||||||
| Fixed maturities, available-for-sale: | |||||||||||
| Proceeds from sales(1) | $ | i 236 | $ | i 7,793 | |||||||
| Proceeds from maturities/prepayments | i 273 | i 411 | |||||||||
| Gross investment gains on sales and maturities | i 2 | i 1,139 | |||||||||
| Gross investment losses on sales and maturities | ( i 5) | ( i 61) | |||||||||
| Write-downs recognized in earnings (2) | ( i 23) | ( i 23) | |||||||||
| (Addition to) release of allowance for credit losses | i 0 | i 0 | |||||||||
| Predecessor Company | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury Securities and Obligations of U.S. States | Foreign Government Bonds | U.S. and Foreign Corporate Securities | Asset-Backed Securities | Commercial Mortgage-Backed Securities | Residential Mortgage-Backed Securities | Total | |||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||
| Fixed maturities, available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | i — | $ | i — | $ | i 1 | $ | i — | $ | i — | $ | i — | $ | i 1 | |||||||||||||||||||||||||||
| Additions to allowance for credit losses not previously recorded | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
| Reductions for securities sold during the period | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
| Additions on securities with previous allowance | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
| Balance, end of period | $ | i — | $ | i — | $ | i 1 | $ | i — | $ | i — | $ | i — | $ | i 1 | |||||||||||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury Securities and Obligations of U.S. States | Foreign Government Bonds | U.S. and Foreign Corporate Securities | Asset-Backed Securities | Commercial Mortgage-Backed Securities | Residential Mortgage-Backed Securities | Total | |||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||
| Fixed maturities, available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | i — | $ | i — | $ | i 1 | $ | i — | $ | i — | $ | i — | $ | i 1 | |||||||||||||||||||||||||||
Additions
to allowance for credit losses not previously recorded | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
Reductions
for securities sold during the period | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
| Reductions on securities with previous allowance | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
| Balance, end of period | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury Securities and Obligations of U.S. States | Foreign Government Bonds | U.S. and Foreign Corporate Securities | Asset-Backed Securities | Commercial Mortgage-Backed Securities | Residential Mortgage-Backed Securities | Total | |||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||
| Fixed maturities, available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | i — | $ | i — | $ | i 1 | $ | i — | $ | i — | $ | i — | $ | i 1 | |||||||||||||||||||||||||||
Additions
to allowance for credit losses not previously recorded | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
Reductions
for securities sold during the period | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||||||||||||
| Reductions on securities with previous allowance | i — | i — | ( i 1) | i — | i — | i — | ( i 1) | ||||||||||||||||||||||||||||||||||
| Balance, end of period | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||||||||||||||||
| Predecessor Company | |||||||||||
| December 31, 2021 | |||||||||||
| Amount (in millions) | % of Total | ||||||||||
| Commercial mortgage and agricultural property loans by property type: | |||||||||||
| Apartments/Multi-Family | $ | i 385 | i 25.5 | % | |||||||
| Hospitality | i 17 | i 1.1 | |||||||||
| Industrial | i 624 | i 41.5 | |||||||||
| Office | i 196 | i 13.0 | |||||||||
| Other | i 134 | i 8.9 | |||||||||
| Retail | i 101 | i 6.7 | |||||||||
| Total commercial mortgage loans | i 1,457 | i 96.7 | % | ||||||||
| Agricultural property loans | i 51 | i 3.3 | |||||||||
| Total commercial mortgage and agricultural property loans | i 1,508 | i 100.0 | % | ||||||||
| Allowance for credit losses | ( i 4) | ||||||||||
| Total net commercial mortgage and agricultural property loans | $ | i 1,504 | |||||||||
| Predecessor Company | |||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| 2022 | |||||||||||||||||
| Commercial Mortgage Loans | Agricultural Property Loans | Total | |||||||||||||||
| (in millions) | |||||||||||||||||
| Allowance, beginning of period | $ | i 5 | $ | i — | $ | i 5 | |||||||||||
| Release of allowance for expected losses | ( i 1) | i — | ( i 1) | ||||||||||||||
| Allowance, end of period | $ | i 4 | $ | i — | $ | i 4 | |||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2021 | |||||||||||||||||||||||||||||||||||
| Commercial Mortgage Loans | Agricultural Property Loans | Total | Commercial Mortgage Loans | Agricultural Property Loans | Total | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Allowance, beginning of period | $ | i 7 | $ | i — | $ | i 7 | $ | i 7 | $ | i — | $ | i 7 | |||||||||||||||||||||||
| Release of allowance for expected losses | ( i 2) | i — | ( i 2) | ( i 2) | i — | ( i 2) | |||||||||||||||||||||||||||||
| Allowance, end of period | $ | i 5 | $ | i — | $ | i 5 | $ | i 5 | $ | i — | $ | i 5 | |||||||||||||||||||||||
| Predecessor Company | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortized Cost by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan-to-Value Ratio: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 0%-59.99% | $ | i 150 | $ | i — | $ | i 21 | $ | i 7 | $ | i 93 | $ | i 232 | $ | i 503 | ||||||||||||||||||||||||||||||||||||
| 60%-69.99% | i 389 | i 33 | i 10 | i 11 | i 39 | i 28 | i 510 | |||||||||||||||||||||||||||||||||||||||||||
| 70%-79.99% | i 317 | i 48 | i 17 | i — | i 21 | i 21 | i 424 | |||||||||||||||||||||||||||||||||||||||||||
| 80% or greater | i — | i — | i — | i — | i — | i 20 | i 20 | |||||||||||||||||||||||||||||||||||||||||||
| Total | $ | i 856 | $ | i 81 | $ | i 48 | $ | i 18 | $ | i 153 | $ | i 301 | $ | i 1,457 | ||||||||||||||||||||||||||||||||||||
| Debt Service Coverage Ratio: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Greater or Equal to 1.2x | $ | i 856 | $ | i 81 | $ | i 48 | $ | i 7 | $ | i 120 | $ | i 295 | $ | i 1,407 | ||||||||||||||||||||||||||||||||||||
| 1.0 - 1.2x | i — | i — | i — | i 11 | i — | i — | i 11 | |||||||||||||||||||||||||||||||||||||||||||
| Less than 1.0x | i — | i — | i — | i — | i 33 | i 6 | i 39 | |||||||||||||||||||||||||||||||||||||||||||
| Total | $ | i 856 | $ | i 81 | $ | i 48 | $ | i 18 | $ | i 153 | $ | i 301 | $ | i 1,457 | ||||||||||||||||||||||||||||||||||||
| Agricultural Property Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan-to-Value Ratio: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 0%-59.99% | $ | i 40 | $ | i 1 | $ | i — | $ | i — | $ | i 3 | $ | i 6 | $ | i 50 | ||||||||||||||||||||||||||||||||||||
| 60%-69.99% | i — | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||||||||||||||||||
| 70%-79.99% | i — | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||||||||||||||||||
| 80% or greater | i — | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||||||||||||||||||
| Total | $ | i 40 | $ | i 1 | $ | i — | $ | i — | $ | i 3 | $ | i 6 | $ | i 50 | ||||||||||||||||||||||||||||||||||||
| Debt Service Coverage Ratio: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Greater or Equal to 1.2x | $ | i 40 | $ | i 1 | $ | i — | $ | i — | $ | i 3 | $ | i 3 | $ | i 47 | ||||||||||||||||||||||||||||||||||||
| 1.0 - 1.2x | i — | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||||||||||||||||||
| Less than 1.0x | i — | i — | i — | i — | i — | i 3 | i 3 | |||||||||||||||||||||||||||||||||||||||||||
| Total | $ | i 40 | $ | i 1 | $ | i — | $ | i — | $ | i 3 | $ | i 6 | $ | i 50 | ||||||||||||||||||||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||||||||
| Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due(1) | Total Loans | Non-Accrual Status(2) | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Commercial mortgage loans | $ | i 1,457 | $ | i — | $ | i — | $ | i — | $ | i 1,457 | $ | i — | |||||||||||||||||||||||
| Agricultural property loans | i 50 | i — | i — | i — | i 50 | i — | |||||||||||||||||||||||||||||
| Total | $ | i 1,507 | $ | i — | $ | i — | $ | i — | $ | i 1,507 | $ | i — | |||||||||||||||||||||||
| Successor Company | Predecessor Company | |||||||
| June 30, 2022 | December 31, 2021 | |||||||
| (in millions) | ||||||||
| LPs/LLCs: | ||||||||
| Equity method: | ||||||||
| Private equity | $ | i 16 | $ | i 19 | ||||
| Real estate-related | i 68 | i 62 | ||||||
| Subtotal equity method | i 84 | i 81 | ||||||
| Fair value: | ||||||||
| Private equity | i 4 | i 4 | ||||||
| Real estate-related | i 5 | i 6 | ||||||
| Subtotal fair value | i 9 | i 10 | ||||||
| Total LPs/LLCs | i 93 | i 91 | ||||||
| Policy loans | i 11 | i 12 | ||||||
| Derivative instruments | i 169 | i 3 | ||||||
| Total other invested assets | $ | i 273 | $ | i 106 | ||||
| Successor Company | Predecessor Company | |||||||
| June 30, 2022 | December 31, 2021 | |||||||
| (in millions) | ||||||||
| Fixed maturity securities | $ | i 60 | $ | i 58 | ||||
| Commercial mortgage and other loans | i — | i 3 | ||||||
| Secured receivable | i 3 | i — | ||||||
| Other invested assets | i 3 | i — | ||||||
| Short-term investments and cash equivalents | i 3 | i — | ||||||
| Total accrued investment income | $ | i 69 | $ | i 61 | ||||
| Successor Company | Predecessor Company | |||||||||||||||||||
| Three Months Ended June 30 | Three Months Ended March 31 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||
| 2022 | 2021 | |||||||||||||||||||
| (in millions) | ||||||||||||||||||||
| Fixed maturities securities (1) | $ | i 80 | $ | i 61 | $ | i 110 | $ | i 226 | ||||||||||||
| Equity securities | i 1 | i 1 | i 1 | i 2 | ||||||||||||||||
| Secured receivable | i 11 | i — | i — | i — | ||||||||||||||||
| Commercial mortgage and other loans | i — | i 11 | i 17 | i 32 | ||||||||||||||||
| Other invested assets | i 4 | i 29 | i 24 | i 38 | ||||||||||||||||
| Short-term investments and cash equivalents | i 2 | i 1 | i — | i — | ||||||||||||||||
| Gross investment income | i 98 | i 103 | i 152 | i 298 | ||||||||||||||||
| Less: investment expenses | ( i 1) | ( i 4) | ( i 6) | ( i 13) | ||||||||||||||||
| Net investment income | $ | i 97 | $ | i 99 | $ | i 146 | $ | i 285 | ||||||||||||
| Successor Company | Predecessor Company | |||||||||||||||||||
| Three Months Ended June 30 | Three Months Ended March 31 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||
| 2022 | 2021 | |||||||||||||||||||
| (in millions) | ||||||||||||||||||||
| Fixed maturity securities (1) | $ | ( i 644) | $ | ( i 21) | $ | ( i 26) | $ | i 1,056 | ||||||||||||
| Secured receivable | ( i 51) | i — | i — | i — | ||||||||||||||||
| Commercial mortgage and other loans | i — | i — | ( i 1) | i — | ||||||||||||||||
| Derivatives | ( i 584) | i 502 | ( i 812) | i 1,233 | ||||||||||||||||
| Other invested assets and equity securities | ( i 19) | i — | i 2 | i 4 | ||||||||||||||||
| Investment gains (losses), net | $ | ( i 1,298) | $ | i 481 | $ | ( i 837) | $ | i 2,292 | ||||||||||||
| Predecessor Company | ||||||||
| December 31, 2021 | ||||||||
| (in millions) | ||||||||
| Fixed maturity securities, available-for-sale without an allowance | $ | i 216 | ||||||
| Derivatives designated as cash flow hedges(1) | i 25 | |||||||
| Other investments | i — | |||||||
| Net unrealized gains on investments | $ | i 241 | ||||||
| Successor Company | ||||||||||||||
| June 30, 2022 | ||||||||||||||
| Remaining Contractual Maturities of the Agreements | ||||||||||||||
| Overnight & Continuous | Up to 30 days | 30-90 days | Total | |||||||||||
| (in millions) | ||||||||||||||
| U.S. corporate public securities | $ | i — | $ | i — | $ | i 200 | $ | i 200 | ||||||
| Successor Company | ||||||||||||||
| June 30, 2022 | ||||||||||||||
| Remaining Contractual Maturities of the Agreements | ||||||||||||||
| Overnight & Continuous | Up to 30 days | 30-90 days | Total | |||||||||||
| (in millions) | ||||||||||||||
| Equity securities | $ | i 186 | $ | i — | $ | i — | $ | i 186 | ||||||
| Successor Company | |||||||||||||||||
| June 30, 2022 | |||||||||||||||||
| Primary Underlying Risk/Instrument Type | Gross Notional Values/Units | Fair Value | |||||||||||||||
| Assets | Liabilities | ||||||||||||||||
| (in millions) | |||||||||||||||||
| Retained Business | |||||||||||||||||
| Interest Rate | |||||||||||||||||
| Interest Rate Swaps | i 3,567 | i 9 | ( i 344) | ||||||||||||||
| Currency/Interest Rate | |||||||||||||||||
| Foreign Currency Swaps | i 105 | i 7 | ( i 1) | ||||||||||||||
| Equity | |||||||||||||||||
| Equity Futures | i 1,771 | i 42 | ( i 6) | ||||||||||||||
| Total Return Swaps | i — | i 72 | ( i 29) | ||||||||||||||
| Equity Options | i 3,798 | i 224 | i — | ||||||||||||||
| Total Derivatives, Retained Business | i 9,241 | i 354 | ( i 380) | ||||||||||||||
| Ceded Business | |||||||||||||||||
| Interest Rate | |||||||||||||||||
| Interest Rate Swaps | i 3,090 | i 28 | ( i 64) | ||||||||||||||
| Foreign Currency | |||||||||||||||||
| Foreign Currency Forwards | i 13 | i — | i — | ||||||||||||||
| Currency/Interest Rate | |||||||||||||||||
| Foreign Currency Swaps | i 734 | i 92 | i — | ||||||||||||||
| Credit | |||||||||||||||||
| Credit Default Swaps | i 74 | i — | ( i 2) | ||||||||||||||
| Equity | |||||||||||||||||
| Total Return Swaps | i 4 | i — | i — | ||||||||||||||
| Equity Options | i 19,536 | i 543 | ( i 1,211) | ||||||||||||||
| Total Derivatives, Ceded Business | i 23,451 | i 663 | ( i 1,277) | ||||||||||||||
| Total Derivatives (1) | $ | i 32,692 | $ | i 1,017 | $ | ( i 1,657) | |||||||||||
| Predecessor Company | ||||||||||||||||||||
| December 31, 2021 | ||||||||||||||||||||
| Primary Underlying Risk/Instrument Type | Gross Notional | Fair Value | ||||||||||||||||||
| Assets | Liabilities | |||||||||||||||||||
| (in millions) | ||||||||||||||||||||
| Derivatives Designated as Hedge Accounting Instruments: | ||||||||||||||||||||
| Currency/Interest Rate | ||||||||||||||||||||
| Foreign Currency Swaps | $ | i 637 | $ | i 29 | $ | ( i 1) | ||||||||||||||
| Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||||||||||||||||||
| Interest Rate | ||||||||||||||||||||
| Interest Rate Futures | $ | i 55 | $ | i — | $ | i — | ||||||||||||||
| Interest Rate Swaps | i 10,520 | i 339 | ( i 255) | |||||||||||||||||
| Foreign Currency | ||||||||||||||||||||
| Foreign Currency Forwards | i 50 | i — | ( i 1) | |||||||||||||||||
| Currency/Interest Rate | ||||||||||||||||||||
| Foreign Currency Swaps | i 208 | i 10 | ( i 1) | |||||||||||||||||
| Credit | ||||||||||||||||||||
| Credit Default Swaps | i 1,746 | i 48 | i — | |||||||||||||||||
| Equity | ||||||||||||||||||||
| Equity Futures | i 855 | i 1 | ( i 1) | |||||||||||||||||
| Total Return Swaps | i 4,803 | i 88 | ( i 81) | |||||||||||||||||
| Equity Options | i 20,582 | i 963 | ( i 1,028) | |||||||||||||||||
| Total Derivatives Not Qualifying as Hedge Accounting Instruments (1)(2) | $ | i 38,819 | $ | i 1,449 | $ | ( i 1,367) | ||||||||||||||
| Successor Company | |||||||||||||||||||||||||||||
| June 30, 2022 | |||||||||||||||||||||||||||||
| Gross Amounts of Recognized Financial Instruments | Gross Amounts Offset in the Statements of Financial Position | Net Amounts Presented in the Statements of Financial Position | Financial Instruments/ Collateral(1) | Net Amount | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Offsetting of Financial Assets: | |||||||||||||||||||||||||||||
| Derivatives | $ | i 1,017 | $ | ( i 848) | $ | i 169 | $ | ( i 169) | $ | i — | |||||||||||||||||||
| Total Assets | $ | i 1,017 | $ | ( i 848) | $ | i 169 | $ | ( i 169) | $ | i — | |||||||||||||||||||
| Offsetting of Financial Liabilities: | |||||||||||||||||||||||||||||
| Derivatives | $ | i 1,657 | $ | ( i 1,083) | $ | i 574 | $ | i — | $ | i 574 | |||||||||||||||||||
| Total Liabilities | $ | i 1,657 | $ | ( i 1,083) | $ | i 574 | $ | i — | $ | i 574 | |||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||
| Gross Amounts of Recognized Financial Instruments | Gross Amounts Offset in the Statements of Financial Position | Net Amounts Presented in the Statements of Financial Position | Financial Instruments/ Collateral(1) | Net Amount | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Offsetting of Financial Assets: | |||||||||||||||||||||||||||||
| Derivatives | $ | i 1,478 | $ | ( i 1,475) | $ | i 3 | $ | i — | $ | i 3 | |||||||||||||||||||
| Securities purchased under agreements to resell | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||||||||
| Total Assets | $ | i 1,478 | $ | ( i 1,475) | $ | i 3 | $ | i — | $ | i 3 | |||||||||||||||||||
| Offsetting of Financial Liabilities: | |||||||||||||||||||||||||||||
| Derivatives | $ | i 1,368 | $ | ( i 1,154) | $ | i 215 | $ | ( i 215) | $ | i — | |||||||||||||||||||
| Securities sold under agreements to repurchase | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||||||||
| Total Liabilities | $ | i 1,368 | $ | ( i 1,154) | $ | i 215 | $ | ( i 215) | $ | i — | |||||||||||||||||||
| Successor Company | |||||
| Three Months Ended June 30, 2022 | |||||
| Investment gains (losses), net | |||||
| (in millions) | |||||
| Retained Business | |||||
| Interest Rate | $ | ( i 445) | |||
| Currency/Interest Rate | i — | ||||
| Equity | i 703 | ||||
| Total, Retained Business | i 258 | ||||
| Ceded Business | |||||
| Interest Rate | ( i 20) | ||||
| Currency | i 2 | ||||
| Currency/Interest Rate | i 130 | ||||
| Credit | ( i 6) | ||||
| Equity | ( i 948) | ||||
| Total, Ceded Business | ( i 842) | ||||
| Total | $ | ( i 584) | |||
| Predecessor Company | |||||||||||||||||||||||
| Three Months Ended March 31, 2022 | |||||||||||||||||||||||
| Realized Investment Gains (Losses) | Net Investment Income | Other Income (Loss) | Change in AOCI | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Derivatives Designated as Hedge Accounting Instruments: | |||||||||||||||||||||||
| Cash flow hedges | |||||||||||||||||||||||
| Currency/Interest Rate | $ | i 1 | $ | i 1 | $ | i 2 | $ | i 4 | |||||||||||||||
| Derivatives Not Qualifying as Hedge Accounting Instruments: | |||||||||||||||||||||||
| Interest Rate | ( i 527) | i — | i — | i — | |||||||||||||||||||
| Currency | i — | i — | i — | i — | |||||||||||||||||||
| Currency/Interest Rate | ( i 6) | i — | i — | i — | |||||||||||||||||||
| Credit | ( i 12) | i — | i — | i — | |||||||||||||||||||
| Equity | i 59 | i — | i — | i — | |||||||||||||||||||
| Embedded Derivatives | i 986 | i — | i — | i — | |||||||||||||||||||
| Total Derivatives Not Qualifying as Hedge Accounting Instruments: | i 500 | i — | i — | i — | |||||||||||||||||||
| Total | $ | i 501 | $ | i 1 | $ | i 2 | $ | i 4 | |||||||||||||||
| Predecessor Company | |||||||||||||||||||||||
| Three Months Ended June 30, 2021 | |||||||||||||||||||||||
| Realized Investment Gains (Losses) | Net Investment Income | Other Income (Loss) | Change in AOCI | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Derivatives Designated as Hedge Accounting Instruments: | |||||||||||||||||||||||
| Cash flow hedges | |||||||||||||||||||||||
| Currency/Interest Rate | $ | i 3 | $ | i 4 | $ | ( i 1) | $ | i 22 | |||||||||||||||
| Derivatives Not Qualifying as Hedge Accounting Instruments: | |||||||||||||||||||||||
| Interest Rate | i 1,955 | i — | i — | i — | |||||||||||||||||||
| Currency | i — | i — | i — | i — | |||||||||||||||||||
| Currency/Interest Rate | i 7 | i — | i — | i — | |||||||||||||||||||
| Credit | i 7 | i — | i — | i — | |||||||||||||||||||
| Equity | ( i 850) | i — | i — | i — | |||||||||||||||||||
| Embedded Derivatives | ( i 1,934) | i — | i — | i — | |||||||||||||||||||
| Total Derivatives Not Qualifying as Hedge Accounting Instruments: | ( i 815) | i — | i — | i — | |||||||||||||||||||
| Total | $ | ( i 812) | $ | i 4 | $ | ( i 1) | $ | i 22 | |||||||||||||||
| Predecessor Company | |||||||||||||||||||||||
| Six Months Ended June 30, 2021 | |||||||||||||||||||||||
| Realized Investment Gains (Losses) | Net Investment Income | Other Income (Loss) | Change in AOCI | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Derivatives Designated as Hedge Accounting Instruments: | |||||||||||||||||||||||
| Cash flow hedges | |||||||||||||||||||||||
| Currency/Interest Rate | $ | i 4 | $ | i 9 | $ | i 6 | $ | i 25 | |||||||||||||||
| Derivatives Not Qualifying as Hedge Accounting Instruments: | |||||||||||||||||||||||
| Interest Rate | ( i 1,790) | i — | i — | i — | |||||||||||||||||||
| Currency | i — | i — | i — | i — | |||||||||||||||||||
| Currency/Interest Rate | i 10 | i — | i — | i — | |||||||||||||||||||
| Credit | i 9 | i — | i — | i — | |||||||||||||||||||
| Equity | ( i 1,780) | i — | i — | i — | |||||||||||||||||||
| Embedded Derivatives | i 4,779 | i — | i — | i — | |||||||||||||||||||
| Total Derivatives Not Qualifying as Hedge Accounting Instruments: | i 1,228 | i — | i — | i — | |||||||||||||||||||
| Total | $ | i 1,232 | $ | i 9 | $ | i 5 | $ | i 25 | |||||||||||||||
| Predecessor Company | |||||
| (in millions) | |||||
| Balance, December 31, 2021 | $ | i 25 | |||
| Amount recorded in AOCI | |||||
| Currency/Interest Rate | i 9 | ||||
| Total amount recorded in AOCI (1) | i 9 | ||||
| Amount reclassified from AOCI to income | |||||
| Currency/Interest Rate | ( i 5) | ||||
| Total amount reclassified from AOCI to income (2) | ( i 5) | ||||
| Balance, March 31, 2022 | $ | i 29 | |||
| Successor Company | |||||||||||||||||||||||||||||
| June 30, 2022 | |||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Netting (1) | Total | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Fixed Maturity Securities | |||||||||||||||||||||||||||||
| U.S Treasury securities and obligations of U.S. government authorities and agencies | $ | i — | $ | i 1,059 | $ | i — | $ | — | $ | i 1,059 | |||||||||||||||||||
| Obligations of U.S. states and their political subdivisions | i — | i 209 | i — | — | i 209 | ||||||||||||||||||||||||
| Foreign government bonds | i — | i 28 | i — | — | i 28 | ||||||||||||||||||||||||
| U.S. corporate public securities | i — | i 2,804 | i — | — | i 2,804 | ||||||||||||||||||||||||
| U.S. corporate private securities | i — | i 1,140 | i 235 | — | i 1,375 | ||||||||||||||||||||||||
| Foreign corporate public securities | i — | i 413 | i 45 | — | i 458 | ||||||||||||||||||||||||
| Foreign corporate private securities | i — | i 689 | i 34 | — | i 723 | ||||||||||||||||||||||||
| Asset-backed securities(2) | i — | i 735 | i 25 | — | i 760 | ||||||||||||||||||||||||
| Commercial mortgage-backed securities | i — | i 206 | i — | — | i 206 | ||||||||||||||||||||||||
| Residential mortgage-backed securities | i — | i 43 | i — | — | i 43 | ||||||||||||||||||||||||
| Total Fixed Maturity Securities | i — | i 7,326 | i 339 | — | i 7,665 | ||||||||||||||||||||||||
| Equity securities | i 183 | i — | i — | — | i 183 | ||||||||||||||||||||||||
| Short-term investments | i 25 | i 18 | i — | — | i 43 | ||||||||||||||||||||||||
| Cash and cash equivalents | i 292 | i 725 | i — | — | i 1,017 | ||||||||||||||||||||||||
| Other invested assets(3) | i 36 | i 1,528 | i — | ( i 1,385) | i 179 | ||||||||||||||||||||||||
| Secured receivable | i — | i — | i 1,555 | — | i 1,555 | ||||||||||||||||||||||||
| Deposit asset | i — | i — | i 2,158 | — | i 2,158 | ||||||||||||||||||||||||
| Reinsurance recoverables | i — | — | i 378 | — | i 378 | ||||||||||||||||||||||||
| Net modified coinsurance receivable | i — | i — | i 215 | — | i 215 | ||||||||||||||||||||||||
| Subtotal excluding separate account assets | i 536 | i 9,597 | i 4,645 | ( i 1,385) | i 13,393 | ||||||||||||||||||||||||
| Separate account assets(4) | i — | i 25,088 | i — | — | i 25,088 | ||||||||||||||||||||||||
| Total assets | $ | i 536 | $ | i 34,685 | $ | i 4,645 | $ | ( i 1,385) | $ | i 38,481 | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Insurance Liabilities | $ | i — | $ | i — | $ | i 11,257 | $ | — | $ | i 11,257 | |||||||||||||||||||
| Other liabilities | i — | i 580 | i — | ( i 380) | i 200 | ||||||||||||||||||||||||
| Total liabilities | $ | i — | $ | i 580 | $ | i 11,257 | $ | ( i 380) | $ | i 11,457 | |||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Netting(1) | Total | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Fixed Maturity Securities, available-for-sale: | |||||||||||||||||||||||||||||
| U.S Treasury securities and obligations of U.S. government authorities and agencies | $ | i — | $ | i 727 | $ | i — | $ | — | $ | i 727 | |||||||||||||||||||
| Obligations of U.S. states and their political subdivisions | i — | i 296 | i — | — | i 296 | ||||||||||||||||||||||||
| Foreign government bonds | i — | i 114 | i — | — | i 114 | ||||||||||||||||||||||||
| U.S. corporate public securities | i — | i 2,460 | i — | — | i 2,460 | ||||||||||||||||||||||||
| U.S. corporate private securities | i — | i 1,556 | i 89 | — | i 1,645 | ||||||||||||||||||||||||
| Foreign corporate public securities | i — | i 795 | i — | — | i 795 | ||||||||||||||||||||||||
| Foreign corporate private securities | i — | i 791 | i 101 | — | i 892 | ||||||||||||||||||||||||
| Asset-backed securities(2) | i — | i 1,039 | i 23 | — | i 1,062 | ||||||||||||||||||||||||
| Commercial mortgage-backed securities | i — | i 674 | i 32 | — | i 706 | ||||||||||||||||||||||||
| Residential mortgage-backed securities | i — | i 54 | i 20 | — | i 74 | ||||||||||||||||||||||||
| Total Fixed Maturity Securities, available-for-sale | i — | i 8,506 | i 265 | — | i 8,771 | ||||||||||||||||||||||||
| Fixed maturities, trading | i — | i 27 | i — | i 27 | |||||||||||||||||||||||||
| Equity securities | i 321 | i — | i 1 | i 322 | |||||||||||||||||||||||||
| Short-term investments | i 519 | i 263 | i 13 | i 795 | |||||||||||||||||||||||||
| Cash equivalents | i 372 | i 1,359 | i 8 | i 1,739 | |||||||||||||||||||||||||
| Other invested assets(3) | i 1 | i 1,477 | i — | ( i 1,475) | i 3 | ||||||||||||||||||||||||
| Other assets | i — | i 400 | i 400 | ||||||||||||||||||||||||||
| Reinsurance recoverables | i — | i 1,881 | i 1,881 | ||||||||||||||||||||||||||
| Subtotal excluding separate account assets | i 1,213 | i 11,632 | i 2,568 | ( i 1,475) | i 13,938 | ||||||||||||||||||||||||
| Separate account assets(4) | i — | i 32,267 | i — | i 32,267 | |||||||||||||||||||||||||
| Total assets | $ | i 1,213 | $ | i 43,899 | $ | i 2,568 | $ | ( i 1,475) | $ | i 46,205 | |||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Future policy benefits(5) | $ | i — | $ | i — | $ | i 4,060 | $ | — | $ | i 4,060 | |||||||||||||||||||
| Policyholders' account balances | i — | i — | i 2,041 | — | i 2,041 | ||||||||||||||||||||||||
| Payables to parent and affiliates | i — | i 1,367 | i — | ( i 1,152) | i 215 | ||||||||||||||||||||||||
| Other liabilities | i 1 | i — | i — | ( i 1) | i — | ||||||||||||||||||||||||
| Total liabilities | $ | i 1 | $ | i 1,367 | $ | i 6,101 | $ | ( i 1,153) | $ | i 6,316 | |||||||||||||||||||
| Successor Company | ||||||||||||||||||||||||||||||||
| June 30, 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 | ||||||||||||||||||||||||||||||||
| Corporate securities | $ | i 153 | Discounted cash flow | Discount rate | i 6.56 | % | i 8.09 | % | i 7.38 | % | Decrease | |||||||||||||||||||||
| Recent transaction price | Origination yield | i 5.00 | % | i 5.10 | % | i 5.05 | % | No impact | ||||||||||||||||||||||||
| $ | i 45 | Discounted cash flow | Discount rate | i 4.40 | % | i 4.40 | % | i 4.40 | % | Decrease | ||||||||||||||||||||||
| $ | i 93 | Discounted cash flow | Discount rate | i 20.00 | % | i 20.00 | % | i 20.00 | % | Decrease | ||||||||||||||||||||||
| Market comparables | EBITDA multiples (3) | i 6.36X | i 9.97X | i 0.08X | Increase | |||||||||||||||||||||||||||
| Asset-backed securities | $ | i 25 | Recent transaction price | Origination yield | i 6.97 | % | i 7.97 | % | i 7.47 | % | No impact | |||||||||||||||||||||
| Secured receivable | $ | i 1,555 | Discounted cash flow | Discount rate | i 0.00 | % | i 5.52 | % | i 2.93 | % | Decrease | |||||||||||||||||||||
| Deposit asset | $ | i 2,158 | Fair values are determined using the same unobservable inputs as insurance liabilities. | |||||||||||||||||||||||||||||
| Reinsurance recoverables | $ | i 378 | Fair values are determined using the same unobservable inputs as insurance liabilities. | |||||||||||||||||||||||||||||
| Net modified coinsurance receivable | $ | i 215 | Fair values are determined using the same unobservable inputs as insurance liabilities. | |||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||
| Insurance liabilities | ||||||||||||||||||||||||||||||||
| Retained business | $ | i 3,347 | Discounted cash flow | Lapse rate(6) | i 1 | % | i 20 | % | Decrease | |||||||||||||||||||||||
| Spread over SOFR (7) | i 0.55 | % | i 2.52 | % | Decrease | |||||||||||||||||||||||||||
| Utilization rate(8) | i 77 | % | i 100 | % | Increase | |||||||||||||||||||||||||||
| Withdrawal rate | See table footnote (9) below. | |||||||||||||||||||||||||||||||
| Mortality rate(10) | i 0 | % | i 16 | % | Decrease | |||||||||||||||||||||||||||
| Equity volatility curve | i 16 | % | i 28 | % | Increase | |||||||||||||||||||||||||||
| Ceded business | $ | i 7,910 | Discounted cash flow | Lapse rate(6) | i 1 | % | i 20 | % | Decrease | |||||||||||||||||||||||
| Spread over SOFR (7) | i 0.27 | % | i 2.07 | % | Decrease | |||||||||||||||||||||||||||
| Utilization rate(8) | i 77 | % | i 100 | % | Increase | |||||||||||||||||||||||||||
| Withdrawal rate | See table footnote (9) below. | |||||||||||||||||||||||||||||||
| Mortality rate(10) | i 0 | % | i 16 | % | Decrease | |||||||||||||||||||||||||||
| Equity volatility curve | i 16 | % | i 28 | % | Increase | |||||||||||||||||||||||||||
| Predecessor Company | ||||||||||||||||||||||||||||||||
| December 31, 2021 | ||||||||||||||||||||||||||||||||
| Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value(1) | ||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| Corporate securities(2) | $ | i 163 | Discounted cash flow | Discount rate | i 2.34 | % | i 10.17 | % | i 2.82 | % | Decrease | |||||||||||||||||||||
| Market Comparables | EBITDA multiples(3) | i 6.5X | i 12.4X | i 8.8X | Increase | |||||||||||||||||||||||||||
| Liquidation | Liquidation value | i 62.58 | % | i 62.58 | % | i 62.58 | % | Increase | ||||||||||||||||||||||||
| Other assets | $ | i 400 | Fair values are determined using the same unobservable inputs as policyholders' account balances. | |||||||||||||||||||||||||||||
| Reinsurance recoverables | $ | i 1,881 | Fair values are determined using the same unobservable inputs as future policy benefits and policyholders' account balances. | |||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||
| Future policy benefits(4) | $ | i 4,060 | Discounted cash flow | Lapse rate(6) | i 1 | % | i 20 | % | Decrease | |||||||||||||||||||||||
| Spread over LIBOR(7) | i 0.03 | % | i 1.13 | % | Decrease | |||||||||||||||||||||||||||
| Utilization rate(8) | i 39 | % | i 96 | % | Increase | |||||||||||||||||||||||||||
| Withdrawal rate | See table footnote (9) below. | |||||||||||||||||||||||||||||||
| Mortality rate(10) | i 0 | % | i 15 | % | Decrease | |||||||||||||||||||||||||||
| Equity volatility curve | i 16 | % | i 25 | % | Increase | |||||||||||||||||||||||||||
| Policyholders' account balances(5) | $ | i 2,041 | Discounted cash flow | Lapse rate(6) | i 1 | % | i 42 | % | Decrease | |||||||||||||||||||||||
| Spread over LIBOR(7) | i 0.03 | % | i 1.17 | % | Decrease | |||||||||||||||||||||||||||
| Equity volatility curve | i 6 | % | i 31 | % | Increase | |||||||||||||||||||||||||||
| Successor Company | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 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) | $ | i 190 | $ | ( i 16) | $ | i 207 | $ | i — | $ | i — | $ | ( i 11) | $ | ( i 3) | $ | i — | $ | ( i 53) | $ | i 314 | $ | ( i 13) | |||||||||||||
| Structured securities(4) | i 33 | i — | i 25 | ( i 10) | i — | i — | ( i 10) | i — | ( i 13) | i 25 | i — | ||||||||||||||||||||||||
| Other assets: | |||||||||||||||||||||||||||||||||||
| Secured receivable | i 1,622 | ( i 50) | i — | ( i 15) | i — | i — | ( i 2) | i — | i — | i 1,555 | i — | ||||||||||||||||||||||||
| Deposit asset | i 2,615 | ( i 457) | i — | i — | i — | i — | i — | i — | i — | i 2,158 | i — | ||||||||||||||||||||||||
| Reinsurance recoverables | i 344 | i 34 | i — | i — | i — | i — | i — | i — | i — | i 378 | i — | ||||||||||||||||||||||||
| Net modified coinsurance receivable | i 5 | i 210 | i — | i — | i — | i — | i — | i — | i — | i 215 | i — | ||||||||||||||||||||||||
| Successor Company | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 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 | $ | i 13,661 | $ | ( i 1,654) | $ | i 1,206 | $ | ( i 1,520) | $ | i 98 | $ | ( i 534) | $ | i 11,257 | |||||||||||||||||||||||||||
| 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 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||
| Corporate securities(3) | i 190 | ( i 9) | i 5 | ( i 4) | i — | ( i 2) | i — | i — | i — | i 180 | ( i 9) | ||||||||||||||||||||||||
| Structured securities(4) | i 76 | ( i 4) | i — | ( i 10) | i — | ( i 2) | i — | i — | ( i 13) | i 47 | ( i 4) | ||||||||||||||||||||||||
| Other assets: | — | ||||||||||||||||||||||||||||||||||
| Equity securities | i 1 | i — | i — | i — | i — | i — | i — | i — | i — | i 1 | i — | ||||||||||||||||||||||||
| Short term investments | i 13 | i — | i — | i — | i — | ( i 13) | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
| Cash equivalents | i 8 | i — | i — | i — | i — | ( i 8) | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
| Other assets | i 400 | ( i 21) | i 13 | i — | i — | ( i 16) | i — | i — | i — | i 376 | ( i 6) | ||||||||||||||||||||||||
| Reinsurance recoverables | i 1,881 | i 201 | i 4 | i — | i — | i 19 | ( i 239) | i — | i — | i 1,866 | i 222 | ||||||||||||||||||||||||
| Liabilities: | — | ||||||||||||||||||||||||||||||||||
| Future policy benefits | ( i 4,060) | i 715 | i — | i — | ( i 48) | i — | i — | i — | i — | ( i 3,393) | i 686 | ||||||||||||||||||||||||
| Policyholders' account balances(5) | ( i 2,041) | i 124 | i — | i — | i — | ( i 17) | i — | i — | i — | ( i 1,934) | i 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 | $ | i — | $ | i — | $ | ( i 12) | $ | i — | $ | i — | $ | i — | $ | ( i 12) | ||||||||||||||||||
| Other assets: | ||||||||||||||||||||||||||||||||
| Fixed maturities, trading | i — | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||
| Equity securities | i — | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||
| Other assets | ( i 21) | i — | i — | i — | ( i 6) | i — | i — | |||||||||||||||||||||||||
| Reinsurance recoverables | i 201 | i — | i — | i — | i 222 | i — | i — | |||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||
| Future policy benefits | i 715 | i — | i — | i — | i 686 | i — | i — | |||||||||||||||||||||||||
| Policyholders' account balances | i 124 | i — | i — | i — | i 89 | i — | i — | |||||||||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
| 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 | $ | i 15 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 15 | $ | i — | |||||||||||||
| Corporate securities(3) | i 166 | i 2 | i 96 | i — | i — | ( i 24) | i — | i — | ( i 8) | i 232 | i 1 | ||||||||||||||||||||||||
| Structured securities(4) | i 17 | ( i 1) | i 203 | i — | i — | ( i 3) | i — | i — | i — | i 216 | ( i 1) | ||||||||||||||||||||||||
| Other assets: | — | ||||||||||||||||||||||||||||||||||
| Fixed maturities, trading | i 5 | i — | i — | i — | i — | i — | i — | i — | i — | i 5 | i — | ||||||||||||||||||||||||
| Equity securities | i 4 | i 1 | i — | i — | i — | i — | i — | i — | i — | i 5 | i 1 | ||||||||||||||||||||||||
| Short term investments | i 12 | i — | i 22 | i — | i — | ( i 12) | i — | i 1 | i — | i 23 | i — | ||||||||||||||||||||||||
| Cash equivalents | i — | i — | i — | i — | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
| Other assets | i 63 | i 5 | i 4 | i — | i — | ( i 3) | i — | i — | i — | i 69 | i 1 | ||||||||||||||||||||||||
| Reinsurance recoverables | i 271 | i 27 | i 4 | i — | i — | i — | i — | i — | i — | i 302 | i 29 | ||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Future policy benefits | ( i 10,512) | ( i 1,727) | i — | i — | ( i 291) | i — | i — | i — | i — | ( i 12,530) | ( i 1,838) | ||||||||||||||||||||||||
| Policyholders' account balances(5) | ( i 986) | ( i 240) | i — | i — | ( i 135) | i — | i — | i — | i — | ( i 1,361) | ( i 211) | ||||||||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||
| Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
| 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 | $ | ( i 3) | $ | i — | $ | i 5 | $ | i — | $ | ( i 3) | $ | i — | $ | i 3 | |||||||||||||||
| Other assets: | |||||||||||||||||||||||||||||
| Fixed maturities, trading | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||
| Equity securities | i — | i 1 | i — | i — | i — | i 1 | i — | ||||||||||||||||||||||
| Short term investments | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||
| Cash equivalents | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||
| Other assets | i 5 | i — | i — | i — | i 1 | i — | i — | ||||||||||||||||||||||
| Reinsurance recoverables | i 26 | i — | i — | i — | i 29 | i — | i — | ||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Future policy benefits | ( i 1,728) | i — | i — | i — | ( i 1,838) | i — | i — | ||||||||||||||||||||||
| Policyholders' account balances | ( i 240) | i — | i — | i — | ( i 211) | i — | i — | ||||||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
| 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 | $ | i 15 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 15 | $ | i — | |||||||||||||
| Corporate securities(3) | i 149 | i 1 | i 106 | i — | i — | ( i 31) | i — | i 15 | ( i 8) | i 232 | ( i 1) | ||||||||||||||||||||||||
| Structured securities(4) | i 18 | ( i 1) | i 203 | i — | i — | ( i 4) | i — | i — | i — | i 216 | ( i 1) | ||||||||||||||||||||||||
| Other assets: | |||||||||||||||||||||||||||||||||||
| Fixed maturities, trading | i 5 | i — | i — | i — | i — | i — | i — | i — | i — | i 5 | i — | ||||||||||||||||||||||||
| Equity securities | i 4 | i 1 | i — | i — | i — | i — | i — | i — | i — | i 5 | i 1 | ||||||||||||||||||||||||
| Short term investments | i 10 | i — | i 24 | i — | i — | ( i 12) | i — | i 1 | i — | i 23 | i — | ||||||||||||||||||||||||
| Cash equivalents | i — | i — | i — | i — | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
| Other assets | i 54 | i 13 | i 7 | i — | i — | ( i 5) | i — | i — | i — | i 69 | i 8 | ||||||||||||||||||||||||
| Reinsurance recoverables | i 409 | ( i 116) | i 9 | i — | i — | i — | i — | i — | i — | i 302 | ( i 106) | ||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Future policy benefits | ( i 17,314) | i 5,366 | i — | i — | ( i 582) | i — | i — | i — | i — | ( i 12,530) | i 4,982 | ||||||||||||||||||||||||
| Policyholders' account balances(5) | ( i 580) | ( i 508) | i — | i — | ( i 273) | i — | i — | i — | i — | ( i 1,361) | ( i 464) | ||||||||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||
| Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
| 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 | $ | ( i 3) | $ | i — | $ | i 4 | $ | i — | $ | ( i 3) | $ | i — | $ | i 2 | |||||||||||||||
| Other assets: | |||||||||||||||||||||||||||||
| Fixed maturities, trading | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||
| Equity securities | i — | i 1 | i — | i — | i — | i 1 | i — | ||||||||||||||||||||||
| Short term investments | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||
| Cash equivalents | i — | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||||
| Other assets | i 13 | i — | i — | i — | i 8 | i — | i — | ||||||||||||||||||||||
| Reinsurance recoverables | ( i 116) | i — | i — | i — | ( i 106) | i — | i — | ||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Future policy benefits | i 5,366 | i — | i — | i — | i 4,982 | i — | i — | ||||||||||||||||||||||
| Policyholders' account balances | ( i 508) | i — | i — | i — | ( i 464) | i — | i — | ||||||||||||||||||||||
| Successor Company | |||||
| Three Months Ended June 30, 2022 | |||||
| (in millions) | |||||
| Assets: | |||||
| Reinsurance recoverables | $ | i 34 | |||
| Net modified coinsurance receivable | i 210 | ||||
| Deposit asset | ( i 457) | ||||
| Liabilities: | |||||
| Insurance liabilities | $ | i 2,404 | |||
| Successor Company | |||||
| June 30, 2022 | |||||
| (in millions) | |||||
| Unpaid Principal Balance | $ | i 1,622 | |||
| Mark to Fair Value | ( i 67) | ||||
| Fair Value | $ | i 1,555 | |||
| Successor Company | |||||||||||||||||||||||||||||
| June 30, 2022 | |||||||||||||||||||||||||||||
| Fair Value | Carrying Amount(1) | ||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Accrued investment income | $ | i — | $ | i 69 | $ | i — | $ | i 69 | $ | i 69 | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Cash collateral for loaned securities | $ | i — | $ | i 186 | $ | i — | $ | i 186 | $ | i 186 | |||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||
| Fair Value | Carrying Amount(1) | ||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Commercial mortgage and other loans | $ | i — | $ | i — | $ | i 1,516 | $ | i 1,516 | $ | i 1,504 | |||||||||||||||||||
| Policy loans | i — | i — | i 12 | i 12 | i 12 | ||||||||||||||||||||||||
| Short-term investments | i 81 | i — | i — | i 81 | i 81 | ||||||||||||||||||||||||
| Cash and cash equivalents | i 277 | i — | i — | i 277 | i 277 | ||||||||||||||||||||||||
| Accrued investment income | i — | i 61 | i — | i 61 | i 61 | ||||||||||||||||||||||||
| Reinsurance recoverables | i — | i — | i 9 | i 9 | i 8 | ||||||||||||||||||||||||
| Receivables from parent and affiliates | i — | i 5 | i — | i 5 | i 5 | ||||||||||||||||||||||||
| Other assets | i — | i 4 | i 2,275 | i 2,279 | i 2,279 | ||||||||||||||||||||||||
| Total assets | $ | i 358 | $ | i 70 | $ | i 3,812 | $ | i 4,240 | $ | i 4,227 | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Policyholders’ account balances - investment contracts | $ | i — | $ | i — | $ | i 2,391 | $ | i 2,391 | $ | i 2,381 | |||||||||||||||||||
| Payables to parent and affiliates | i — | i 36 | i — | i 36 | i 36 | ||||||||||||||||||||||||
| Other liabilities | i — | i 105 | i — | i 105 | i 105 | ||||||||||||||||||||||||
| Separate account liabilities - investment contracts | i — | i — | i — | i — | i — | ||||||||||||||||||||||||
| Total liabilities | $ | i — | $ | i 141 | $ | i 2,391 | $ | i 2,532 | $ | i 2,522 | |||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
| 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) | $ | ( i 1) | $ | i — | $ | i 171 | $ | i 170 | |||||||||||||||
| Change in OCI before reclassifications | i — | i — | ( i 576) | ( i 576) | |||||||||||||||||||
| Amounts reclassified from AOCI | i — | i — | i 15 | i 15 | |||||||||||||||||||
| Income tax benefit (expense) | i — | i — | i 118 | i 118 | |||||||||||||||||||
| Balance, March 31, 2022 (Predecessor Company) | $ | ( i 1) | $ | i — | $ | ( i 272) | $ | ( i 273) | |||||||||||||||
| Balance, April 1, 2022 (Successor Company) | $ | i — | $ | i — | $ | i — | $ | i — | |||||||||||||||
| Change in OCI before reclassifications | i — | i 245 | i — | i 245 | |||||||||||||||||||
| Amounts reclassified from AOCI | i — | i — | i — | i — | |||||||||||||||||||
| Income tax expense | i — | ( i 51) | i — | ( i 51) | |||||||||||||||||||
| Balance, June 30, 2022 (Successor Company) | $ | i — | $ | i 194 | $ | i — | $ | i 194 | |||||||||||||||
| Predecessor Company | |||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
| Foreign Currency Translation Adjustment | Net Unrealized Investment Gains (Losses)(1) | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
| (in millions) | |||||||||||||||||
| Balance, December 31, 2020 | $ | ( i 1) | $ | i 1,534 | $ | i 1,533 | |||||||||||
| Change in OCI before reclassifications | i — | ( i 418) | ( i 418) | ||||||||||||||
| Amounts reclassified from AOCI | i — | ( i 1,074) | ( i 1,074) | ||||||||||||||
| Income tax benefit (expense) | i — | i 313 | i 313 | ||||||||||||||
| Balance, June 30, 2021 | $ | ( i 1) | $ | i 355 | $ | i 354 | |||||||||||
| Predecessor Company | |||||||||||||||||
| Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||||
| (in millions) | |||||||||||||||||
| Amounts reclassified from AOCI(1)(2): | |||||||||||||||||
| Net unrealized investment gains (losses): | |||||||||||||||||
| Cash flow hedges—Currency/ Interest rate(3) | $ | i 5 | $ | i 6 | $ | i 18 | |||||||||||
| Net unrealized investment gains (losses) on available-for-sale securities | ( i 21) | ( i 26) | i 1,056 | ||||||||||||||
| Total net unrealized investment gains (losses)(4) | ( i 16) | ( i 20) | i 1,074 | ||||||||||||||
| Total reclassifications for the period | $ | ( i 16) | $ | ( i 20) | $ | i 1,074 | |||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||||||||
| Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized | 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 | $ | i — | $ | i 240 | $ | ( i 16) | $ | ( i 7) | $ | ( i 46) | $ | i 171 | |||||||||||||||||||||||
| Net investment gains (losses) on investments arising during the period | i — | ( i 592) | i — | i — | i 124 | ( i 468) | |||||||||||||||||||||||||||||
| Reclassification adjustment for (gains) losses included in net income | i — | i 16 | i — | i — | ( i 4) | i 12 | |||||||||||||||||||||||||||||
Impact
of net unrealized investment (gains) losses | i — | i — | i 10 | i 6 | ( i 3) | i 13 | |||||||||||||||||||||||||||||
| Balance, March 31, 2022 | $ | i — | $ | ( i 336) | $ | ( i 6) | $ | ( i 1) | $ | i 71 | $ | ( i 272) | |||||||||||||||||||||||
| Predecessor Company | |||||||||||||||||||||||||||||||||||
| Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized | 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, 2020 | $ | i — | $ | i 2,369 | $ | ( i 363) | $ | ( i 63) | $ | ( i 409) | $ | i 1,534 | |||||||||||||||||||||||
| Net investment gains (losses) on investments arising during the period | i 2 | ( i 676) | i — | i — | i 142 | ( i 533) | |||||||||||||||||||||||||||||
| Reclassification adjustment for (gains) losses included in net income | i — | ( i 1,074) | i — | i — | i 226 | ( i 848) | |||||||||||||||||||||||||||||
| Reclassification due to allowance for credit losses recorded during the period | i — | i — | i — | i — | i — | i — | |||||||||||||||||||||||||||||
Impact
of net unrealized investment (gains) losses | i — | i — | i 228 | i 28 | ( i 54) | i 202 | |||||||||||||||||||||||||||||
| Balance, June 30, 2021 | $ | i 2 | $ | i 619 | $ | ( i 136) | $ | ( i 35) | $ | ( i 95) | $ | i 355 | |||||||||||||||||||||||
| Affiliate | Date | Transaction | Security Type | Fair Value | Book Value | Realized Investment Gain (Loss) | ||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Prudential Insurance | April 2021 | Purchase | Fixed Maturities | $ | i 201 | $ | i 201 | $ | i — | |||||||||||||||||
| Prudential Insurance | April 2021 | Purchase | Commercial Mortgage Loan | $ | i 177 | $ | i 177 | $ | i — | |||||||||||||||||
| Vantage Casualty Insurance Co. | June 2021 | Purchase | Fixed Maturities | $ | i 15 | $ | i 15 | $ | i — | |||||||||||||||||
| Prudential Insurance | June 2021 | Sale | Equities | $ | i 3 | $ | i 3 | $ | i — | |||||||||||||||||
| Pruco Life | June 2021 | Sale | Equities | $ | i 40 | $ | i 38 | $ | i 2 | |||||||||||||||||
| Passaic Fund LLC | June 2021 | Transfer Out | Other Invested Assets | $ | i 12 | $ | i 12 | $ | i — | |||||||||||||||||
| Passaic Fund LLC | July 2021 | Transfer Out | Other Invested Assets | $ | i 196 | $ | i 196 | $ | i — | |||||||||||||||||
| Prudential Insurance | September 2021 | Purchase | Fixed Maturities | $ | i 2 | $ | i 2 | $ | i — | |||||||||||||||||
| Prudential Insurance | September 2021 | Sale | Fixed Maturities | $ | i 12 | $ | i 11 | $ | i 1 | |||||||||||||||||
| Prudential Retirement Insurance and Annuity Company | September 2021 | Sale | Fixed Maturities | $ | i 26 | $ | i 24 | $ | i 2 | |||||||||||||||||
| Prudential Retirement Insurance and Annuity Company | September 2021 | Purchase | Fixed Maturities | $ | i 35 | $ | i 35 | $ | i — | |||||||||||||||||
| Prudential Insurance | September 2021 | Purchase | Derivatives | $ | i — | $ | i — | $ | i — | |||||||||||||||||
| Prudential Retirement Insurance and Annuity Company | September 2021 | Purchase | Derivatives | $ | ( i 1) | $ | ( i 1) | $ | i — | |||||||||||||||||
| Prudential Financial | October 2021 | Sale | Equities | $ | i 10 | $ | i 10 | $ | i — | |||||||||||||||||
| Pruco Life | November 2021 | Sale | Derivatives | $ | i 1 | $ | i — | $ | i 1 | |||||||||||||||||
| Affiliate | Date | Transaction | Security Type | Fair Value | Book Value | Realized Investment Gain (Loss) | ||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Prudential Arizona Reinsurance | November 2021 | Purchase | Fixed Maturities | $ | i 55 | $ | i 55 | $ | i — | |||||||||||||||||
| Pruco Life | December 2021 | Transfer Out | Fixed Maturities | $ | i 2,038 | $ | i 1,934 | $ | i 104 | |||||||||||||||||
| Pruco Life | December 2021 | Sale | Fixed Maturities | $ | i 57 | $ | i 57 | $ | i — | |||||||||||||||||
| Prudential Financial | December 2021 | Dividend | Fixed Maturities | $ | i 167 | $ | i 167 | $ | i — | |||||||||||||||||
| Prudential Financial | December 2021 | Sale | Fixed Maturities | $ | i 144 | $ | i 138 | $ | i 6 | |||||||||||||||||
| Prudential Financial | December 2021 | Purchase | Commercial Mortgage Loan | $ | i 185 | $ | i 185 | $ | i — | |||||||||||||||||
| Pruco Life | December 2021 | Transfer Out | Commercial Mortgage Loan | $ | i 538 | $ | i 517 | $ | i 21 | |||||||||||||||||
| Pruco Life | December 2021 | Sale | Derivatives | $ | i 8 | $ | i 2 | $ | i 6 | |||||||||||||||||
| Pruco Life | January 2022 | Sale | Fixed Maturities | $ | i 4 | $ | i 5 | $ | ( i 1) | |||||||||||||||||
| Prudential Financial | January 2022 | Sale | Commercial Mortgage Loan | $ | i 29 | $ | i 30 | $ | i — | |||||||||||||||||
| Pruco Life | January 2022 | Sale | Derivatives | $ | i — | $ | i — | $ | i — | |||||||||||||||||
| Pruco Life | February 2022 | Sale | Fixed Maturities | $ | i 129 | $ | i 138 | $ | ( i 10) | |||||||||||||||||
| Prudential Financial | March 2022 | Sale | Fixed Maturities | $ | i 33 | $ | i 33 | $ | ( i 1) | |||||||||||||||||
| December 31, 2021 | |||||
| (in millions) | |||||
| Reinsurance recoverables | $ | i 8,108 | |||
| Deferred policy acquisition costs | ( i 530) | ||||
| Deferred sales inducements | ( i 26) | ||||
| Value of business acquired | ( i 2) | ||||
| Other assets | i 54 | ||||
| Reinsurance payables | i 7,183 | ||||
| Other liabilities | i 824 | ||||
| December 31, 2021 | |||||
| (in millions) | |||||
| Prudential Insurance | $ | i 372 | |||
| Pruco Life | i 7,736 | ||||
| Total reinsurance recoverables | $ | i 8,108 | |||
| Predecessor Company | |||||||||||||||||
| Three Months Ended March 31 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
| 2022 | 2021 | ||||||||||||||||
| (in millions) | |||||||||||||||||
| Premiums: | |||||||||||||||||
| Direct | $ | i 9 | $ | i 6 | $ | i 13 | |||||||||||
| Assumed | i — | i 6 | i 16 | ||||||||||||||
| Ceded | ( i 1) | ( i 1) | ( i 2) | ||||||||||||||
| Net premiums | i 8 | i 11 | i 27 | ||||||||||||||
| Policy charges and fee income: | |||||||||||||||||
| Direct | i 102 | i 109 | i 216 | ||||||||||||||
| Assumed | i — | i 412 | i 819 | ||||||||||||||
| Ceded(1) | ( i 5) | ( i 7) | ( i 13) | ||||||||||||||
| Net policy charges and fee income | i 97 | i 514 | i 1,022 | ||||||||||||||
| Asset management and service fees: | |||||||||||||||||
| Direct | i 22 | i 25 | i 48 | ||||||||||||||
| Assumed | i — | i 84 | i 165 | ||||||||||||||
| Ceded | ( i 2) | ( i 2) | ( i 4) | ||||||||||||||
| Net asset management and service fees | i 20 | i 107 | i 209 | ||||||||||||||
| Realized investment gains (losses), net: | |||||||||||||||||
| Direct | i 312 | i 493 | ( i 1,613) | ||||||||||||||
| Assumed | i — | ( i 1,356) | i 4,022 | ||||||||||||||
| Ceded | i 169 | i 26 | ( i 117) | ||||||||||||||
| Realized investment gains (losses), net | i 481 | ( i 837) | i 2,292 | ||||||||||||||
| Policyholders' benefits (including change in reserves): | |||||||||||||||||
| Direct | i 31 | i 7 | i 24 | ||||||||||||||
| Assumed | i — | ( i 10) | i 3 | ||||||||||||||
| Ceded(2) | ( i 5) | ( i 1) | ( i 1) | ||||||||||||||
| Net policyholders' benefits (including change in reserves) | i 26 | ( i 4) | i 26 | ||||||||||||||
| Interest credited to policyholders’ account balances: | |||||||||||||||||
| Direct | i 91 | i 15 | i 96 | ||||||||||||||
| Assumed | i — | i 6 | i 77 | ||||||||||||||
| Ceded | ( i 6) | i — | ( i 4) | ||||||||||||||
| Net interest credited to policyholders’ account balances | i 85 | i 21 | i 169 | ||||||||||||||
| Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | ( i 41) | i 175 | i 514 | ||||||||||||||
| Predecessor Company | |||||||||||||||||
| Three Months Ended March 31 | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
| 2022 | 2021 | ||||||||||||||||
| (in millions) | |||||||||||||||||
| U.S. GAAP embedded derivative and hedging positions | |||||||||||||||||
| Change in value of U.S.GAAP liability, pre-NPR(2) | $ | 459 | $ | (1,883) | $ | 5,581 | |||||||||||
| Change in the NPR adjustment | 156 | (104) | (903) | ||||||||||||||
| Change in fair value of hedge assets, excluding capital hedges(3) | (392) | 1,334 | (3,112) | ||||||||||||||
| Change in fair value of capital hedges(4) | 39 | (503) | (803) | ||||||||||||||
| Other | 218 | 578 | 1,106 | ||||||||||||||
| Realized investment gains (losses), net, and related adjustments | 480 | (578) | 1,869 | ||||||||||||||
| Market experience updates(5) | (57) | 92 | 161 | ||||||||||||||
| Charges related to realized investments gains (losses), net | (97) | 74 | (260) | ||||||||||||||
| Net impact from changes in the U.S. GAAP embedded derivative and hedge positions, after the impact of NPR, DAC and other costs(6) | $ | 326 | $ | (412) | $ | 1,770 | |||||||||||
| Return of Capital | |||||
| (in millions) | |||||
| March 31, 2022 | $ | 306 | |||
| December 31, 2021 | $ | 451 | |||
| September 30, 2021 | $ | 3,813 | |||
| As of June 30, 2022 | ||||||||||||||
| Hypothetical Change in Fair Value | ||||||||||||||
| Notional | Fair Value | 100 bps Decrease | 100 bps Increase | |||||||||||
| (in millions) | ||||||||||||||
| Assets | ||||||||||||||
| Fixed maturity securities | $ | 4,213 | $ | 538 | $ | (437) | ||||||||
| Liabilities | ||||||||||||||
| Interest rate swaps | $ | 3,567 | $ | 335 | $ | 413 | $ | (354) | ||||||
| Non-OCR fair value of variable annuity liabilities | 1,951 | (1,120) | 903 | |||||||||||
| $ | (707) | $ | 549 | |||||||||||
| Net change | $ | (169) | $ | 112 | ||||||||||
| As of June 30, 2022 | ||||||||||||||
| Hypothetical Change in Fair Value | ||||||||||||||
| Notional | Fair Value | 10% Decrease | 10% Increase | |||||||||||
| (in millions) | ||||||||||||||
| Assets | ||||||||||||||
| Equity futures | $ | 36 | $ | 36 | $ | 165 | $ | (165) | ||||||
| Total return swaps | — | 43 | 173 | (173) | ||||||||||
| Equity options | 3,798 | 224 | 125 | (88) | ||||||||||
| $ | 303 | $ | 463 | $ | (426) | |||||||||
| Liabilities | ||||||||||||||
| Non-OCR fair value of variable annuity liabilities | $ | 1,951 | $ | (437) | $ | 402 | ||||||||
| Net change | $ | 26 | $ | (24) | ||||||||||
| EXHIBIT INDEX | ||
| 101.INS - XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||
| 101.SCH - XBRL Taxonomy Extension Schema Document. | ||
| 101.CAL - XBRL Taxonomy Extension Calculation Linkbase Document | ||
| 101.LAB - XBRL Taxonomy Extension Label Linkbase Document | ||
| 101.PRE - XBRL Taxonomy Extension Presentation Linkbase Document | ||
| 101.DEF - XBRL Taxonomy Extension Definition Linkbase Document | ||
| 104.Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||
| FORTITUDE LIFE INSURANCE & ANNUITY COMPANY | ||||||||
| By: | /s/ Kai Talarek | |||||||
| Name | ||||||||
| Senior Vice President and Chief Financial Officer | ||||||||
| (Authorized Signatory and Principal Financial Officer) | ||||||||
| This ‘10-Q’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 6/30/23 | ||||
| 1/1/23 | ||||
| Filed on: | 8/12/22 | |||
| For Period end: | 6/30/22 | |||
| 4/1/22 | 8-K | |||
| 3/31/22 | 10-Q | |||
| 1/1/22 | ||||
| 12/31/21 | 10-K | |||
| 12/1/21 | ||||
| 9/30/21 | 10-Q, NT 10-Q | |||
| 7/1/21 | ||||
| 6/30/21 | 10-Q | |||
| 3/31/21 | 10-Q | |||
| 1/1/21 | ||||
| 12/31/20 | 10-K | |||
| 6/30/20 | 10-Q | |||
| 1/1/20 | ||||
| 8/15/18 | ||||
| 4/1/16 | ||||
| 12/31/15 | 10-K | |||
| List all Filings | ||||