Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2020

Accumulated Other Comprehensive Income (Loss)

Shareholders' equity included the following components of Accumulated Other Comprehensive Income ("AOCI") as of the dates indicated:


	September 30,
	2020		2019
Fixed maturities, net of impairment	$	7,704	$	5,827

Derivatives(1)	144		195
DAC/VOBA adjustment on available-for-sale securities	(1,837)		(1,593)
Premium deficiency reserve	(438)		(257)
Sales inducements and other intangibles adjustment on available-for-sale securities	(353)		(204)

Unrealized capital gains (losses), before tax	5,220		3,968
Deferred income tax asset (liability)	(742)		(479)
Net unrealized capital gains (losses)	4,478		3,489
Pension and other postretirement benefits liability, net of tax	5		8
AOCI	$	4,483	$	3,497

(1) Gains and losses reported in Accumulated Other Comprehensive Income (AOCI) from hedge transactions that resulted in the acquisition of an identified asset are reclassified into earnings in the same period or periods during which the asset acquired affects earnings. As of September 30, 2020, the portion of the AOCI that is expected to be reclassified into earnings within the next 12 months is $22.

Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations were as follows for the periods indicated:



	Three Months Ended September 30, 2020
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	783		$	(164)	$	619

Other	(1)			—		(1)

Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	7			(1)		6
DAC/VOBA	78			(17)		61
Premium deficiency reserve	(114)			24		(90)
Sales inducements and other intangibles	(140)			29		(111)
Change in unrealized gains/losses on available-for-sale securities	613			(129)		484

Derivatives:
Derivatives	(45)		(1)	10		(35)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(6)			1		(5)
Change in unrealized gains/losses on derivatives	(51)			11		(40)

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	—			—		—
Change in pension and other postretirement benefits liability	—			—		—
Change in Accumulated other comprehensive income (loss)	$	562		$	(118)	$	444

(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.


	Nine Months Ended September 30, 2020
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	2,114		$	(444)	$	1,670

Other	(1)			—		(1)

Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	44			(9)		35
DAC/VOBA	(339)		(1)	71		(268)
Premium deficiency reserve	(189)			40		(149)
Sales inducements and other intangibles	(168)			35		(133)
Change in unrealized gains/losses on available-for-sale securities	1,461			(307)		1,154

Derivatives:
Derivatives	17		(2)	(3)		14
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(18)			4		(14)
Change in unrealized gains/losses on derivatives	(1)			1		—

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(2)			—		(2)
Change in pension and other postretirement benefits liability	(2)			—		(2)
Change in Accumulated other comprehensive income (loss)	$	1,458		$	(306)	$	1,152

(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.



	Three Months Ended September 30, 2019
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	1,314		$	(275)	$	1,039


Impairments	—			—		—
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	(8)			1		(7)
DAC/VOBA	(364)			77		(287)
Premium deficiency reserve	(123)			26		(97)
Sales inducements and other intangibles	(47)			9		(38)
Change in unrealized gains/losses on available-for-sale securities	772			(162)		610

Derivatives:
Derivatives	32		(1)	(7)		25
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(6)			1		(5)
Change in unrealized gains/losses on derivatives	26			(6)		20

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1)			1		—
Change in pension and other postretirement benefits liability	(1)			1		—
Change in Accumulated other comprehensive income (loss)	$	797		$	(167)	$	630

(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.


	Nine Months Ended September 30, 2019
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	4,753		$	(997)	$	3,756


Impairments	2			—		2
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	(2)			—		(2)
DAC/VOBA	(1,212)		(1)	255		(957)
Premium deficiency reserve	(200)			42		(158)
Sales inducements and other intangibles	(140)			29		(111)
Change in unrealized gains/losses on available-for-sale securities	3,201			(671)		2,530

Derivatives:
Derivatives	43		(2)	(9)		34
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(19)			4		(15)
Change in unrealized gains/losses on derivatives	24			(5)		19

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(3)			1		(2)
Change in pension and other postretirement benefits liability	(3)			1		(2)
Change in Accumulated other comprehensive income (loss)	$	3,222		$	(675)	$	2,547

(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.