BUSINESS SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The table below presents Operating earnings (loss) by segment and Corporate and Other and a reconciliation to Net income (loss) attributable to Holdings for the three months ended March 31, 2020 and 2019, respectively:

	Three Months Ended March 31,
	2020			2019
	(in millions)
Net income (loss) attributable to Holdings	$	5,410		$	(775	)
Adjustments related to:
Variable annuity product features (1)	(6,861		)	1,540
Investment (gains) losses	(4		)	11
Net actuarial (gains) losses related to pension and other postretirement benefit obligations	27			24
Other adjustments (2) (3)	634			40
Income tax expense (benefit) related to above adjustments (4)	1,303			(337		)
Non-recurring tax items	6			6
Non-GAAP Operating Earnings	$	515		$	509

	Three Months Ended March 31,
	2020			2019
	(in millions)
Operating earnings (loss) by segment:
Individual Retirement	$	372		$	370
Group Retirement	$	106		$	81
Investment Management and Research	$	95		$	77
Protection Solutions	$	38		$	49
Corporate and Other (5)	$	(96	)	$	(68	)

______________

(1) Includes COVID Impact on Variable annuity product features due to assumption update of $1.5 billion and other COVID-19 related impacts of $35 million three months ended March 31, 2020.

(2) Includes assumption updates due to COVID-19 of $1.0 billion and other COVID-19 related impacts of $51 million three months ended March 31, 2020.

(3) Include separation costs of $32 million and $24 million for the three months ended March 31, 2020 and 2019, respectively.

(4) Includes income taxes of $(534) million for the above COVID-19 items for the three months ended March 31, 2020.

(5) Includes interest expense and financing fees of $56 million and $52 million for the three months ended March 31, 2020 and 2019, respectively.

Segment revenues is a measure of the Company’s revenue by segment as adjusted to exclude certain items. The following table reconciles segment revenues to Total revenues by excluding the following items:

• Items related to variable annuity product features, which include certain changes in the fair value of the derivatives and other securities we use to hedge these features and changes in the fair value of the embedded derivatives reflected within the net derivative results of variable annuity product features;

• Investment (gains) losses, which includes credit loss impairments of securities/investments, sales or disposals of securities/investments, realized capital gains/losses and valuation allowances;

• Other adjustments, which includes investment income (loss) from certain derivative instruments, excluding derivative instruments used to hedge risks associated with interest margins on interest sensitive life and annuity contracts and freestanding and embedded derivatives associated with products with GMxB features.

The table below presents segment revenues for the three months ended March 31, 2020 and 2019.

	Three Months Ended March 31,
	2020		2019
	(in millions)
Segment revenues:
Individual Retirement (1)	$	1,481	$	1,007
Group Retirement (1)	282		251
Investment Management and Research (2)	907		780
Protection Solutions (1)	859		831
Corporate and Other (1)	299		312
Adjustments related to:
Variable annuity product features	8,339		(1,478		)
Investment gains (losses), net	4		(11		)
Other adjustments to segment revenues (3)	422		22
Total revenues	$	12,593	$	1,714

______________

(1) Includes investment expenses charged by AB of $18 million and $18 million for the three months ended March 31, 2020 and 2019, respectively, for services provided to the Company.

(2) Inter-segment investment management and other fees of $27 million and $25 million for the three months ended March 31, 2020 and 2019, respectively, are included in segment revenues of the Investment Management and Research segment.

(3) Includes assumption updates due to COVID-19 of $46 million and other COVID-19 related impacts of $(51) million for the three months ended March 31, 2020.

The table below presents Total assets by segment as of March 31, 2020 and December 31, 2019:

	March 31, 2020		December 31, 2019
	(in millions)
Total assets by segment:
Individual Retirement	$	117,299	$	123,626
Group Retirement	41,194		43,588
Investment Management and Research	11,915		10,170
Protection Solutions	45,266		46,886
Corporate and Other	25,107		25,600
Total assets	$	240,781	$	249,870