Shareholders' Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Other Comprehensive Income

The following tables present the changes in each component of AOCI and the effect of reclassifications out of AOCI on the respective line items in net income.

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Third Quarter 2021

	Net Unrealized Gains (Losses) on Investments with no Credit Impairment		Net Unrealized Gains (Losses) on Investments with Credit Impairment		Change in ISCR on  FG VIEs’ Liabilities with Recourse		Cumulative Translation Adjustment		Cash Flow  Hedge		Total
	(in millions)
Balance, June 30, 2021	$	509	$	(12)	$	(23)	$	(36)	$	7	$	445
Other comprehensive income (loss) before reclassifications	(69)		(2)		1		—		—		(70)
Less: Amounts reclassified from AOCI to:
Net realized investment gains (losses)	(3)		5		—		—		—		2
Fair value gains (losses) on FG VIEs	—		—		(1)		—		—		(1)
Interest expense	—		—		—		—		1		1
Total before tax	(3)		5		(1)		—		1		2
Tax (provision) benefit	—		(1)		—		—		—		(1)
Total amount reclassified from AOCI, net of tax	(3)		4		(1)		—		1		1
Net current period other comprehensive income (loss)	(66)		(6)		2		—		(1)		(71)
Balance, September 30, 2021	$	443	$	(18)	$	(21)	$	(36)	$	6	$	374

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Third Quarter 2020

	Net Unrealized Gains (Losses) on Investments with no Credit Impairment		Net Unrealized Gains (Losses) on Investments with Credit Impairment		Change in ISCR on  FG VIEs’ Liabilities with Recourse		Cumulative Translation Adjustment		Cash Flow  Hedge		Total
	(in millions)
Balance, June 30, 2020	$	427	$	(41)	$	(22)	$	(38)	$	7	$	333
Other comprehensive income (loss) before reclassifications	74		12		(1)		—		—		85
Less: Amounts reclassified from AOCI to:
Net realized investment gains (losses)	8		5		—		—		—		13
Fair value gains (losses) on FG VIEs	—		—		4		—		—		4
Total before tax	8		5		4		—		—		17
Tax (provision) benefit	(1)		(1)		(1)		—		—		(3)
Total amount reclassified from AOCI, net of tax	7		4		3		—		—		14
Net current period other comprehensive income (loss)	67		8		(4)		—		—		71
Balance, September 30, 2020	$	494	$	(33)	$	(26)	$	(38)	$	7	$	404

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Nine Months 2021

	Net Unrealized Gains (Losses) on Investments with no Credit Impairment		Net Unrealized Gains (Losses) on Investments with Credit Impairment		Change in ISCR on  FG VIEs’ Liabilities with Recourse		Cumulative Translation Adjustment		Cash Flow  Hedge		Total
	(in millions)
Balance, December 31, 2020	$	577	$	(30)	$	(20)	$	(36)	$	7	$	498
Other comprehensive income (loss) before reclassifications	(134)		14		(3)		—		—		(123)
Less: Amounts reclassified from AOCI to:
Net realized investment gains (losses)	1		2		—		—		—		3
Fair value gains (losses) on FG VIEs	—		—		(3)		—		—		(3)
Interest expense	—		—		—		—		1		1
Total before tax	1		2		(3)		—		1		1
Tax (provision) benefit	(1)		—		1		—		—		—
Total amount reclassified from AOCI, net of tax	—		2		(2)		—		1		1
Net current period other comprehensive income (loss)	(134)		12		(1)		—		(1)		(124)
Balance, September 30, 2021	$	443	$	(18)	$	(21)	$	(36)	$	6	$	374

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Nine Months 2020

	Net Unrealized Gains (Losses) on Investments with no Credit Impairment		Net Unrealized Gains (Losses) on Investments with Credit Impairment		Change in ISCR on  FG VIEs’ Liabilities with Recourse		Cumulative Translation Adjustment		Cash Flow  Hedge		Total
	(in millions)
Balance, December 31, 2019	$	352	$	48	$	(27)	$	(38)	$	7	$	342
Effect of adoption of accounting guidance on credit losses	62		(62)		—		—		—		—
Other comprehensive income (loss) before reclassifications	102		(30)		2		—		—		74
Less: Amounts reclassified from AOCI to:
Net realized investment gains (losses)	26		(14)		—		—		—		12
Fair value gains (losses) on FG VIEs	—		—		1		—		—		1
Total before tax	26		(14)		1		—		—		13
Tax (provision) benefit	(4)		3		—		—		—		(1)
Total amount reclassified from AOCI, net of tax	22		(11)		1		—		—		12
Net current period other comprehensive income (loss)	80		(19)		1		—		—		62
Balance, September 30, 2020	$	494	$	(33)	$	(26)	$	(38)	$	7	$	404

Share Repurchases

    On August 4, 2021, the Board of Directors (the Board) authorized the repurchase of an additional $350 million of

common shares. Under this and previous authorizations, as of November 4, 2021, the Company was authorized to purchase $220 million of its common shares. The Company expects to repurchase shares from time to time in the open market or in privately negotiated transactions. The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the parent company, other potential uses for such funds, market conditions, the Company’s capital position, legal requirements and other factors, some of which factors may be impacted by the direct and indirect consequences of the course and duration of the COVID-19 pandemic and evolving governmental and private responses to the pandemic. The repurchase program may be modified, extended or terminated by the Board at any time. It does not have an expiration date.

Share Repurchases

Period	Number of Shares Repurchased	Total Payments (in millions)		Average Price Paid Per Share
2020 (January 1 - March 31)	3,629,410	$	116	$	32.03
2020 (April 1 - June 30)	5,956,422	164		27.49
2020 (July 1- September 30)	1,857,323	40		21.72
2020 (October 1- December 31)	4,344,649	126		28.87
Total 2020	15,787,804	$	446	$	28.23
2021 (January 1 - March 31)	1,986,534	77		38.83
2021 (April 1 - June 30)	1,887,531	88		46.63
2021 (July 1- September 30)	2,918,993	140		47.76
2021 (October 1 - November 4)	1,498,751	77		51.90
Total 2021	8,291,809	$	382	$	46.11