QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | ☒ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | |||||
March 31, 2024 | December 31, 2023 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Investments: | |||||||||||
Fixed maturity securities available for sale, at fair value, at March 31, 2024 and December 31, 2023, at an amortized cost of $ | $ | $ | |||||||||
Preferred securities, at fair value | |||||||||||
Equity securities, at fair value | |||||||||||
Derivative investments | |||||||||||
Mortgage loans, net of allowance for credit losses of $ | |||||||||||
Investments in unconsolidated affiliates (certain investments at fair value of $ | |||||||||||
Other long-term investments | |||||||||||
Short-term investments | |||||||||||
Total investments | |||||||||||
Cash and cash equivalents | |||||||||||
Reinsurance recoverable, net of allowance for credit losses of $ | |||||||||||
Goodwill | |||||||||||
Prepaid expenses and other assets | |||||||||||
Other intangible assets, net | |||||||||||
Market risk benefits asset | |||||||||||
Income taxes receivable | |||||||||||
Deferred tax asset | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Contractholder funds | $ | $ | |||||||||
Future policy benefits | |||||||||||
Market risk benefits liability | |||||||||||
Accounts payable and accrued liabilities | |||||||||||
Notes payable | |||||||||||
Funds withheld for reinsurance liabilities | |||||||||||
Total liabilities | $ | $ | |||||||||
Equity: | |||||||||||
Preferred stock $ | $ | $ | |||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Treasury stock, at cost ( | ( | ( | |||||||||
Total F&G Annuities & Life, Inc. shareholders' equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(Unaudited) | |||||||||||
Revenues: | |||||||||||
Life insurance premiums and other fees | $ | $ | |||||||||
Interest and investment income | |||||||||||
Owned distribution revenues | |||||||||||
Recognized gains and (losses), net | ( | ||||||||||
Total revenues | |||||||||||
Benefits and expenses: | |||||||||||
Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) | |||||||||||
Market risk benefit (gains) losses | ( | ||||||||||
Depreciation and amortization | |||||||||||
Personnel costs | |||||||||||
Other operating expenses | |||||||||||
Interest expense | |||||||||||
Total benefits and expenses | |||||||||||
Earnings (loss) before income taxes | ( | ||||||||||
Income tax expense (benefit) | ( | ||||||||||
Net earnings (loss) | ( | ||||||||||
Less: Noncontrolling interests | |||||||||||
Net earnings (loss) attributable to F&G | ( | ||||||||||
Less: Preferred stock dividend | |||||||||||
Net earnings (loss) attributable to F&G common shareholders | $ | $ | ( | ||||||||
Earnings per share | |||||||||||
Basic | |||||||||||
Net earnings (loss) per share attributable to F&G common shareholders, basic | $ | $ | ( | ||||||||
Diluted | |||||||||||
Net earnings (loss) per share attributable to F&G common shareholders, diluted | $ | $ | ( | ||||||||
Weighted average shares outstanding F&G common stock, basic basis | |||||||||||
Weighted average shares outstanding F&G common stock, diluted basis |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(Unaudited) | |||||||||||
Net earnings (loss) | $ | $ | ( | ||||||||
Other comprehensive income (loss): | |||||||||||
Changes in current discount rate - future policy benefits | ( | ||||||||||
Changes in instrument-specific credit risk - market risk benefits | |||||||||||
Unrealized gain on investments and other financial instruments, net of deferred income taxes | |||||||||||
Unrealized gain (loss) on foreign currency translation | ( | ||||||||||
Reclassification adjustments included in net earnings | |||||||||||
Other comprehensive income | |||||||||||
Comprehensive income | |||||||||||
Less: Comprehensive income attributable to non-controlling interest | |||||||||||
Comprehensive income attributable to F&G common shareholders | $ | $ |
F&G Annuities & Life, Inc. shareholders' equity | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive income (loss) | Treasury Stock | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | — | $ | — | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | — | $ | — | $ | $ | $ | ( | $ | $ | $ |
F&G Annuities & Life, Inc. shareholders' equity | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive income (loss) | Treasury Stock | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | — | $ | — | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Acquisition of non-controlling interest | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends declared | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock dividends declared | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2024 | $ | — | $ | — | $ | $ | $ | ( | $ | ( | $ | $ |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
(Unaudited) | |||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net earnings (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
(Gain) loss on sales of investments and other assets and asset impairments, net | |||||||||||
Interest credited/index credits to contractholder account balances | |||||||||||
Change in market risk benefits, net | ( | ||||||||||
Deferred policy acquisition costs and deferred sales inducements | ( | ( | |||||||||
Charges assessed to contractholders for mortality and administration | ( | ( | |||||||||
Distributions from unconsolidated affiliates, return on investment | |||||||||||
Stock-based compensation cost | |||||||||||
Change in NAV of limited partnerships, net | ( | ( | |||||||||
Change in valuation of derivatives, equity and preferred securities and other assets, net | ( | ( | |||||||||
Changes in assets and liabilities, net of effects from acquisitions: | |||||||||||
Change in reinsurance recoverable | ( | ||||||||||
Change in future policy benefits | |||||||||||
Change in funds withheld from reinsurers | |||||||||||
Net change in income taxes | ( | ||||||||||
Net change in other assets and other liabilities | ( | ||||||||||
Net cash provided by operating activities | $ | $ | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Proceeds from sales, calls and maturities of investment securities | $ | $ | |||||||||
Additions to property and equipment and capitalized software | ( | ( | |||||||||
Purchases of investment securities | ( | ( | |||||||||
Net proceeds from (purchases of) sales and maturities of short-term investment securities | |||||||||||
Other acquisitions/disposals, net of cash acquired | ( | ||||||||||
Additional investments in unconsolidated affiliates | ( | ( | |||||||||
Distributions from unconsolidated affiliates, return of investment | |||||||||||
Net cash used in investing activities | $ | ( | $ | ( | |||||||
Cash Flows from Financing Activities: | |||||||||||
Borrowings | $ | $ | |||||||||
Debt issuance costs | ( | ( | |||||||||
Net revolving credit facility (repayments) borrowings | ( | ||||||||||
Common dividends paid | ( | ( | |||||||||
Purchases of treasury stock | ( | ||||||||||
Issuance of preferred stock | |||||||||||
Contractholder account deposits | |||||||||||
Contractholder account withdrawals | ( | ( | |||||||||
Net cash provided by financing activities | $ | $ | |||||||||
Net increase in cash and cash equivalents | |||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Three months ended March 31, 2024 | |||||||||||||||||||||||||||||
Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) | Change in current discount rate - future policy benefits | Change in instrument- specific credit risk - market risk benefits | Foreign Currency Translation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Balance at December 31, 2023 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||
Reclassification adjustments included in net earnings (a) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) before tax, net of reclassifications | ( | ||||||||||||||||||||||||||||
Income tax (expense) benefit | ( | ( | |||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | ( | $ | $ | ( | $ | ( | $ | ( |
Three months ended March 31, 2023 | |||||||||||||||||||||||||||||
Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) | Change in current discount rate - future policy benefits | Change in instrument- specific credit risk - market risk benefits | Foreign Currency Translation | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||
Reclassification adjustments included in net earnings (a) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) before tax, net of reclassifications | ( | ||||||||||||||||||||||||||||
Income tax (expense) benefit | ( | ( | ( | ||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | ( | $ | $ | ( | $ | ( | $ | ( |
March 31, 2024 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | Fair Value | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | |||||||||||||||||||||||||||||
Asset-backed securities | — | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | ||||||||||||||||||||||||||||
Corporates | — | ||||||||||||||||||||||||||||
Hybrids | — | ||||||||||||||||||||||||||||
Municipals | — | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | ||||||||||||||||||||||||||||
U.S. Government | — | ||||||||||||||||||||||||||||
Foreign Governments | — | ||||||||||||||||||||||||||||
Preferred securities | — | ||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Derivative investments | — | ||||||||||||||||||||||||||||
Investment in unconsolidated affiliates | — | ||||||||||||||||||||||||||||
Short term investments | — | ||||||||||||||||||||||||||||
Reinsurance related embedded derivative, included in other assets | — | ||||||||||||||||||||||||||||
Other long-term investments | |||||||||||||||||||||||||||||
Market risk benefits asset | — | ||||||||||||||||||||||||||||
Total financial assets at fair value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
Indexed annuities/IUL embedded derivatives, included in contractholder funds | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Interest rate swaps | — | ||||||||||||||||||||||||||||
Contingent consideration obligation | — | ||||||||||||||||||||||||||||
Market risk benefits liability | — | ||||||||||||||||||||||||||||
Total financial liabilities at fair value | $ | $ | $ | $ | — | $ |
December 31, 2023 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | Fair Value | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | |||||||||||||||||||||||||||||
Asset-backed securities | — | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | ||||||||||||||||||||||||||||
Corporates | — | ||||||||||||||||||||||||||||
Hybrids | — | ||||||||||||||||||||||||||||
Municipals | — | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | ||||||||||||||||||||||||||||
U.S. Government | — | ||||||||||||||||||||||||||||
Foreign Governments | — | ||||||||||||||||||||||||||||
Preferred securities | — | ||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Derivative investments | — | ||||||||||||||||||||||||||||
Investment in unconsolidated affiliates | — | ||||||||||||||||||||||||||||
Short term investments | — | ||||||||||||||||||||||||||||
Reinsurance related embedded derivative, included in other assets | — | ||||||||||||||||||||||||||||
Other long-term investments | — | ||||||||||||||||||||||||||||
Market risk benefits asset | — | ||||||||||||||||||||||||||||
Total financial assets at fair value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
Indexed annuities/IUL embedded derivatives, included in contractholder funds | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Market risk benefits liability | — | ||||||||||||||||||||||||||||
Total financial liabilities at fair value | $ | $ | $ | $ | — | $ |
Valuation Technique | Unobservable Input(s) | Range (Weighted average) | |||||||||||||||||||||
Fair Value at | |||||||||||||||||||||||
March 31, 2024 | March 31, 2024 | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Asset-backed securities | $ | Third-Party Valuation | Discount Rate | ( | |||||||||||||||||||
Commercial mortgage-backed securities | Third-Party Valuation | Discount Rate | ( | ||||||||||||||||||||
Corporates | Third-Party Valuation | Discount Rate | ( | ||||||||||||||||||||
Residential mortgage-backed securities | Third-Party Valuation | Discount Rate | ( | ||||||||||||||||||||
Foreign Governments | Third-Party Valuation | Discount Rate | ( | ||||||||||||||||||||
Investment in unconsolidated affiliates | Market Comparable Company Analysis | EBITDA Multiple | ( | ||||||||||||||||||||
Adjusted Transaction Value | N/A | N/A | |||||||||||||||||||||
Other long-term investments: | |||||||||||||||||||||||
Available-for-sale embedded derivative | Black Scholes Model | Market Value of AnchorPath Fund | |||||||||||||||||||||
Market risk benefits asset | Discounted Cash Flow | Mortality | ( | ||||||||||||||||||||
Surrender Rates | ( | ||||||||||||||||||||||
Partial Withdrawal Rates | ( | ||||||||||||||||||||||
Non-Performance Spread | ( | ||||||||||||||||||||||
GMWB Utilization | ( | ||||||||||||||||||||||
Total financial assets at fair value (a) | $ | ||||||||||||||||||||||
Valuation Technique | Unobservable Input(s) | Range (Weighted average) | |||||||||||||||||||||
Fair Value at | |||||||||||||||||||||||
March 31, 2024 | March 31, 2024 | ||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||
Indexed annuity/IUL embedded derivatives, included in contractholder funds | $ | Discounted Cash Flow | Market Value of Option | ( | |||||||||||||||||||
Mortality Multiplier | ( | ||||||||||||||||||||||
Surrender Rates | ( | ||||||||||||||||||||||
Partial Withdrawals | ( | ||||||||||||||||||||||
Non-Performance Spread | ( | ||||||||||||||||||||||
Option Cost | ( | ||||||||||||||||||||||
Contingent consideration | Discounted Cash Flow | Risk-Adjusted Discount Rate | ( | ||||||||||||||||||||
EBITDA Volatility | ( | ||||||||||||||||||||||
Counterparty-Discount Rate | ( | ||||||||||||||||||||||
Market risk benefits liability | Discounted Cash Flow | Mortality | ( | ||||||||||||||||||||
Surrender Rates | ( | ||||||||||||||||||||||
Partial Withdrawal Rates | ( | ||||||||||||||||||||||
Non-Performance Spread | ( | ||||||||||||||||||||||
GMWB Utilization | ( | ||||||||||||||||||||||
Total financial liabilities at fair value (a) | $ |
Valuation Technique | Unobservable Input(s) | Range (Weighted average) | |||||||||||||||||||||
Fair Value at | |||||||||||||||||||||||
December 31, 2023 | December 31, 2023 | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Asset-backed securities | $ | Third-Party Valuation | Discount Rate | ( | |||||||||||||||||||
Corporates | Third-Party Valuation | Discount Rate | ( | ||||||||||||||||||||
Municipals | Third-Party Valuation | Discount Rate | ( | ||||||||||||||||||||
Residential mortgage-backed securities | Third-Party Valuation | Discount Rate | ( | ||||||||||||||||||||
Foreign Governments | Third-Party Valuation | Discount Rate | ( | ||||||||||||||||||||
Investment in unconsolidated affiliates | Market Comparable Company Analysis | EBITDA Multiple | ( | ||||||||||||||||||||
Other long-term investments: | |||||||||||||||||||||||
Available-for-sale embedded derivative | Black Scholes Model | Market Value of Fund | |||||||||||||||||||||
Market risk benefits asset | Discounted Cash Flow | Mortality | ( | ||||||||||||||||||||
Surrender Rates | ( | ||||||||||||||||||||||
Partial Withdrawal Rates | ( | ||||||||||||||||||||||
Non-Performance Spread | ( | ||||||||||||||||||||||
GMWB Utilization | ( | ||||||||||||||||||||||
Total financial assets at fair value (a) | $ | ||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||
Indexed annuity/ IUL embedded derivatives, included in contractholder funds | $ | Discounted Cash Flow | Market Value of Option | ( | |||||||||||||||||||
Mortality Multiplier | ( | ||||||||||||||||||||||
Surrender Rates | ( | ||||||||||||||||||||||
Partial Withdrawals | ( | ||||||||||||||||||||||
Non-Performance Spread | ( | ||||||||||||||||||||||
Option Cost | ( | ||||||||||||||||||||||
Market risk benefits liability | Discounted Cash Flow | Mortality | ( | ||||||||||||||||||||
Surrender Rates | ( | ||||||||||||||||||||||
Partial Withdrawal Rates | ( | ||||||||||||||||||||||
Non-Performance Spread | ( | ||||||||||||||||||||||
GMWB Utilization | ( | ||||||||||||||||||||||
Total financial liabilities at fair value | $ |
Three months ended March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | Total Gains (Losses) | Purchases | Sales | Settlements | Net transfer In (Out) of Level 3 (a) | Balance at End of Period | Change in Unrealized Gains (Losses) Incl in OCI | ||||||||||||||||||||||||||||||||||||||||||||||
Included in AOCI | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporates | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipals | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Governments | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in unconsolidated affiliates | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Short term investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term investments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale embedded derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit linked note | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal assets at Level 3 fair value | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Market risk benefits asset (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets at Level 3 fair value | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Indexed annuity/ IUL embedded derivatives, included in contractholder funds | $ | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal liabilities at Level 3 fair value | $ | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Market risk benefits liability (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities at Level 3 fair value | $ | $ |
Three months ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | Total Gains (Losses) | Purchases | Sales | Settlements | Net transfer In (Out) of Level 3 (a) | Balance at End of Period | Change in Unrealized Included in OCI | ||||||||||||||||||||||||||||||||||||||||||||||
Included in AOCI | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporates | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Municipals | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in unconsolidated affiliates | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term investments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale embedded derivative | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit linked note | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured borrowing receivable | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal assets at Level 3 fair value | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Market risk benefits asset (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets at Level 3 fair value | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Indexed annuity/IUL embedded derivatives, included in contractholder funds | $ | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Subtotal liabilities at Level 3 fair value | $ | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Market risk benefits liability (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities at Level 3 fair value | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | Total Estimated Fair Value | Carrying Amount | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
FHLB common stock | $ | $ | $ | $ | — | $ | $ | ||||||||||||||||||||||||||||
Commercial mortgage loans | — | ||||||||||||||||||||||||||||||||||
Residential mortgage loans | — | ||||||||||||||||||||||||||||||||||
Investments in unconsolidated affiliates | |||||||||||||||||||||||||||||||||||
Policy loans | — | ||||||||||||||||||||||||||||||||||
Company-owned life insurance | — | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Investment contracts, included in contractholder funds | $ | $ | $ | $ | — | $ | $ | ||||||||||||||||||||||||||||
Debt | — | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | — | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | Total Estimated Fair Value | Carrying Amount | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
FHLB common stock | $ | $ | $ | $ | — | $ | $ | ||||||||||||||||||||||||||||
Commercial mortgage loans | — | ||||||||||||||||||||||||||||||||||
Residential mortgage loans | — | ||||||||||||||||||||||||||||||||||
Investments in unconsolidated affiliates | |||||||||||||||||||||||||||||||||||
Policy loans | — | ||||||||||||||||||||||||||||||||||
Company-owned life insurance | — | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Investment contracts, included in contractholder funds | $ | $ | $ | $ | — | $ | $ | ||||||||||||||||||||||||||||
Debt | — | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | — | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||
Amortized Cost | Allowance for Expected Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||
Corporates | ( | ||||||||||||||||||||||||||||
Hybrids | ( | ||||||||||||||||||||||||||||
Municipals | ( | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||
U.S. Government | ( | ||||||||||||||||||||||||||||
Foreign Governments | ( | ||||||||||||||||||||||||||||
Total AFS securities | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Amortized Cost | Allowance for Expected Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||
Corporates | ( | ||||||||||||||||||||||||||||
Hybrids | ( | ||||||||||||||||||||||||||||
Municipals | ( | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||
U.S. Government | ( | ||||||||||||||||||||||||||||
Foreign Governments | ( | ||||||||||||||||||||||||||||
Total AFS securities | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Corporates, Non-structured Hybrids, Municipal and U.S. Government Securities: | |||||||||||||||||||||||
Due in one year or less | $ | $ | $ | $ | |||||||||||||||||||
Due after one year through five years | |||||||||||||||||||||||
Due after five years through ten years | |||||||||||||||||||||||
Due after ten years | |||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||
Other securities, which provide for periodic payments: | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||
Total fixed maturity AFS securities | $ | $ | $ | $ |
Three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions | Reductions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | For credit losses on securities for which losses were not previously recorded | For initial credit losses on purchased securities accounted for as PCD financial assets (a) | (Additions) reductions in allowance recorded on previously impaired securities | For securities sold during the period | For securities intended/required to be sold prior to recovery of amortized cost basis | Write offs charged against the allowance | Recoveries of amounts previously written off | Balance at End of Period | ||||||||||||||||||||||||||||||||||||||||||||||||
AFS securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total AFS securities | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | $ | ( |
Three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions | Reductions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | For credit losses on securities for which losses were not previously recorded | For initial credit losses on purchased securities accounted for as PCD financial assets (a) | (Additions) reductions in allowance recorded on previously impaired securities | For securities sold during the period | For securities intended/required to be sold prior to recovery of amortized cost basis | Write offs charged against the allowance | Recoveries of amounts previously written off | Balance at End of Period | ||||||||||||||||||||||||||||||||||||||||||||||||
AFS securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporates | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total AFS securities | $ | ( | $ | ( | $ | $ | $ | $ | $ | $ | $ | ( |
March 31, 2024 | |||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Corporates | ( | ( | ( | ||||||||||||||||||||||||||||||||
Hybrids | ( | ( | ( | ||||||||||||||||||||||||||||||||
Municipals | ( | ( | ( | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. Government | ( | ( | ( | ||||||||||||||||||||||||||||||||
Foreign Government | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total AFS securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Total number of AFS in an unrealized loss position less than twelve months | |||||||||||||||||||||||||||||||||||
Total number of AFS securities in an unrealized loss position twelve months or longer | |||||||||||||||||||||||||||||||||||
Total number of AFS securities in an unrealized loss position |
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||
AFS securities | |||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Corporates | ( | ( | ( | ||||||||||||||||||||||||||||||||
Hybrids | ( | ( | ( | ||||||||||||||||||||||||||||||||
Municipals | ( | ( | ( | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. Government | ( | ( | |||||||||||||||||||||||||||||||||
Foreign Government | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total AFS securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Total number of AFS securities in an unrealized loss position less than twelve months | |||||||||||||||||||||||||||||||||||
Total number of AFS securities in an unrealized loss position twelve months or longer | |||||||||||||||||||||||||||||||||||
Total number of AFS securities in an unrealized loss position |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Gross Carrying Value | % of Total | Gross Carrying Value | % of Total | ||||||||||||||||||||
Property Type: | |||||||||||||||||||||||
Hotel | $ | % | $ | % | |||||||||||||||||||
Industrial | % | % | |||||||||||||||||||||
Mixed Use | % | % | |||||||||||||||||||||
Multifamily | % | % | |||||||||||||||||||||
Office | % | % | |||||||||||||||||||||
Retail | % | % | |||||||||||||||||||||
Student Housing | % | % | |||||||||||||||||||||
Other | % | % | |||||||||||||||||||||
Total CMLs, gross of valuation allowance | % | % | |||||||||||||||||||||
Allowance for expected credit loss | ( | ( | |||||||||||||||||||||
Total CMLs, net of valuation allowance | $ | $ | |||||||||||||||||||||
U.S. Region: | |||||||||||||||||||||||
East North Central | $ | % | $ | % | |||||||||||||||||||
East South Central | % | % | |||||||||||||||||||||
Middle Atlantic | % | % | |||||||||||||||||||||
Mountain | % | % | |||||||||||||||||||||
New England | % | % | |||||||||||||||||||||
Pacific | % | % | |||||||||||||||||||||
South Atlantic | % | % | |||||||||||||||||||||
West North Central | % | % | |||||||||||||||||||||
West South Central | % | % | |||||||||||||||||||||
Total CMLs, gross of valuation allowance | % | % | |||||||||||||||||||||
Allowance for expected credit loss | ( | ( | |||||||||||||||||||||
Total CMLs, net of valuation allowance | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |||||||||||||||||||||||||||||||||||
Current (less than 30 days past due) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
30-89 days past due | |||||||||||||||||||||||||||||||||||||||||
90 days or more past due | |||||||||||||||||||||||||||||||||||||||||
Total CMLs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Charge offs | $ | $ | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||||||||||||||||||
Current (less than 30 days past due) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
30-89 days past due | |||||||||||||||||||||||||||||||||||||||||
90 days or more past due | |||||||||||||||||||||||||||||||||||||||||
Total CMLs (a) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Charge offs | $ | $ | — | $ | $ | — | $ | $ | 3 | $ | $ | $ | $ |
Debt-Service Coverage Ratios | Total Amount | % of Total | Estimated Fair Value | % of Total | |||||||||||||||||||||||||||||||||||||
>1.25 | 1.00 - 1.25 | <1.00 | |||||||||||||||||||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
LTV Ratios: | |||||||||||||||||||||||||||||||||||||||||
Less than 50.00% | $ | $ | $ | $ | % | $ | % | ||||||||||||||||||||||||||||||||||
50.00% to 59.99% | % | % | |||||||||||||||||||||||||||||||||||||||
60.00% to 74.99% | % | % | |||||||||||||||||||||||||||||||||||||||
75.00% to 84.99% | % | % | |||||||||||||||||||||||||||||||||||||||
Total CMLs | $ | $ | $ | $ | % | $ | % | ||||||||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
LTV Ratios: | |||||||||||||||||||||||||||||||||||||||||
Less than 50.00% | $ | $ | $ | $ | % | $ | % | ||||||||||||||||||||||||||||||||||
50.00% to 59.99% | % | % | |||||||||||||||||||||||||||||||||||||||
60.00% to 74.99% | % | % | |||||||||||||||||||||||||||||||||||||||
75.00% to 84.99% | % | % | |||||||||||||||||||||||||||||||||||||||
Total CMLs (a) | $ | $ | $ | $ | % | $ | % |
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |||||||||||||||||||||||||||||||||||
LTV Ratios: | |||||||||||||||||||||||||||||||||||||||||
Less than 50.00% | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
50.00% to 59.99% | |||||||||||||||||||||||||||||||||||||||||
60.00% to 74.99% | |||||||||||||||||||||||||||||||||||||||||
75.00% to 84.99% | |||||||||||||||||||||||||||||||||||||||||
Total CMLs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
DSCR | |||||||||||||||||||||||||||||||||||||||||
Greater than 1.25x | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
1.00x - 1.25x | |||||||||||||||||||||||||||||||||||||||||
Less than 1.00x | |||||||||||||||||||||||||||||||||||||||||
Total CMLs | $ | $ | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||
LTV Ratios: | |||||||||||||||||||||||||||||||||||||||||
Less than 50.00% | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
50.00% to 59.99% | |||||||||||||||||||||||||||||||||||||||||
60.00% to 74.99% | |||||||||||||||||||||||||||||||||||||||||
75.00% to 84.99% | |||||||||||||||||||||||||||||||||||||||||
Total CMLs (a) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
DSCR | |||||||||||||||||||||||||||||||||||||||||
Greater than 1.25x | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
1.00x - 1.25x | |||||||||||||||||||||||||||||||||||||||||
Less than 1.00x | |||||||||||||||||||||||||||||||||||||||||
Total CMLs (a) | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | |||||||||||
Amortized Cost | % of Total | ||||||||||
U.S. State: | |||||||||||
Florida | $ | % | |||||||||
California | % | ||||||||||
All other states (a) | % | ||||||||||
Total RMLs, gross of valuation allowance | % | ||||||||||
Allowance for expected credit loss | ( | ||||||||||
Total RMLs, net of valuation allowance | $ |
December 31, 2023 | |||||||||||
Amortized Cost | % of Total | ||||||||||
U.S. State: | |||||||||||
Florida | $ | % | |||||||||
New York | % | ||||||||||
Texas | % | ||||||||||
All other states (a) | % | ||||||||||
Total RMLs, gross of valuation allowance | % | ||||||||||
Allowance for expected credit loss | ( | ||||||||||
Total RMLs, net of valuation allowance | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Performance indicators: | Amortized Cost | % of Total | Amortized Cost | % of Total | |||||||||||||||||||
Performing | $ | % | $ | % | |||||||||||||||||||
Non-performing | % | % | |||||||||||||||||||||
Total RMLs, gross of valuation allowance | % | % | |||||||||||||||||||||
Allowance for expected loan loss | ( | % | ( | % | |||||||||||||||||||
Total RMLs, net of valuation allowance | $ | % | $ | % |
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |||||||||||||||||||||||||||||||||||
Current (less than 30 days past due) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
30-89 days past due | |||||||||||||||||||||||||||||||||||||||||
90 days or more past due | |||||||||||||||||||||||||||||||||||||||||
Total RML mortgages | $ | $ | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||||||||||||||||||
Current (less than 30 days past due) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
30-89 days past due | |||||||||||||||||||||||||||||||||||||||||
90 days or more past due | |||||||||||||||||||||||||||||||||||||||||
Total RML mortgages | $ | $ | $ | $ | $ | $ | $ |
Amortized cost of loans on non-accrual | March 31, 2024 | December 31, 2023 | |||||||||
Residential mortgage: | $ | $ | |||||||||
Commercial mortgage: | |||||||||||
Total non-accrual mortgages | $ | $ | |||||||||
Three months ended March 31, 2024 | |||||||||||||||||
Residential Mortgage | Commercial Mortgage | Total | |||||||||||||||
Beginning Balance | $ | $ | $ | ||||||||||||||
Provision for loan losses | |||||||||||||||||
Ending Balance | $ | $ | $ |
Three months ended March 31, 2023 | |||||||||||||||||
Residential Mortgage | Commercial Mortgage | Total | |||||||||||||||
Beginning Balance | $ | $ | $ | ||||||||||||||
Provision for loan losses | |||||||||||||||||
Ending Balance | $ | $ | $ |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Fixed maturity securities, available-for-sale | $ | $ | |||||||||
Equity securities | |||||||||||
Preferred securities | |||||||||||
Mortgage loans | |||||||||||
Invested cash and short-term investments | |||||||||||
Limited partnerships | |||||||||||
Other investments | |||||||||||
Gross investment income | |||||||||||
Investment expense | ( | ( | |||||||||
Interest and investment income | $ | $ |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Net realized (losses) on fixed maturity available-for-sale securities | $ | ( | $ | ( | |||||||
Net realized/unrealized (losses) gains on equity securities (a) | ( | ||||||||||
Net realized/unrealized gains (losses) on preferred securities (b) | ( | ||||||||||
Net realized/unrealized gains on other invested assets | |||||||||||
Change in allowance for expected credit losses | ( | ||||||||||
Derivatives and embedded derivatives: | |||||||||||
Realized gains (losses) on certain derivative instruments | ( | ||||||||||
Unrealized gains on certain derivative instruments | |||||||||||
Change in fair value of reinsurance related embedded derivatives (c) | ( | ( | |||||||||
Change in fair value of other derivatives and embedded derivatives | |||||||||||
Realized gains on derivatives and embedded derivatives | |||||||||||
Recognized gains and (losses), net | $ | $ | ( |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Proceeds | $ | $ | |||||||||
Gross gains | |||||||||||
Gross losses | ( | ( |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Carrying Value | Maximum Loss Exposure | Carrying Value | Maximum Loss Exposure | ||||||||||||||||||||
Investment in unconsolidated affiliates | $ | $ | $ | $ | |||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||
Total unconsolidated VIE investments | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Blackstone Wave Asset Holdco (a) | $ | $ | |||||||||
ELBA (b) | |||||||||||
COLI (c) | |||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Assets: | |||||||||||
Derivative investments: | |||||||||||
Call options | $ | $ | |||||||||
Interest rate swaps | |||||||||||
Foreign currency forward | |||||||||||
Other long-term investments: | |||||||||||
Other embedded derivatives | |||||||||||
Prepaid expenses and other assets: | |||||||||||
Reinsurance related embedded derivatives | |||||||||||
Total | $ | $ | |||||||||
Liabilities: | |||||||||||
Contractholder funds: | |||||||||||
Indexed annuities/ IUL embedded derivatives | $ | $ | |||||||||
Accounts payable and accrued liabilities: | |||||||||||
Interest rate swaps | |||||||||||
Total | $ | $ |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Call options | $ | $ | |||||||||
Interest rate swaps | ( | ||||||||||
Futures contracts | |||||||||||
Foreign currency forwards | ( | ||||||||||
Other derivatives and embedded derivatives | |||||||||||
Reinsurance related embedded derivatives | ( | ( | |||||||||
Total net investment gains | $ | $ | |||||||||
Benefits and other changes in policy reserves: | |||||||||||
Indexed annuities/ IUL embedded derivatives increase | $ | $ | |||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||
Counterparty | Credit Rating (Fitch/Moody's/S&P) (a) | Notional Amount | Fair Value | Collateral | Net Credit Risk | |||||||||||||||||||||||||||
Merrill Lynch | AA/*/A+ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Morgan Stanley | AA-/Aa3/A+ | |||||||||||||||||||||||||||||||
Barclay's Bank | A+/A1/A+ | |||||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | AA-/A2/A- | |||||||||||||||||||||||||||||||
Wells Fargo | AA-/Aa2/A+ | |||||||||||||||||||||||||||||||
Goldman Sachs | A+/A1/A+ | |||||||||||||||||||||||||||||||
Credit Suisse | A+/A3/A+ | |||||||||||||||||||||||||||||||
Truist | A/A2/A | |||||||||||||||||||||||||||||||
Citibank | A+/Aa3/A+ | |||||||||||||||||||||||||||||||
JP Morgan | AA/Aa2/A+ | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||||||||
Counterparty | Credit Rating (Fitch/Moody's/S&P) (a) | Notional Amount | Fair Value | Collateral | Net Credit Risk | |||||||||||||||||||||||||||
Merrill Lynch | AA/*/A+ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Morgan Stanley | AA-/Aa3/A+ | |||||||||||||||||||||||||||||||
Barclay's Bank | A+/A1/A+ | |||||||||||||||||||||||||||||||
Canadian Imperial Bank of Commerce | AA-/A2/A- | |||||||||||||||||||||||||||||||
Wells Fargo | AA-/Aa2/A+ | |||||||||||||||||||||||||||||||
Goldman Sachs | A+/A1/A+ | |||||||||||||||||||||||||||||||
Credit Suisse | A+/A3/A+ | |||||||||||||||||||||||||||||||
Truist | A+/A2/A | |||||||||||||||||||||||||||||||
Citibank | A+/Aa3/A+ | |||||||||||||||||||||||||||||||
JP Morgan | AA/Aa2/A+ | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three months ended | |||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||||||||||||||
Net Premiums Earned | Net Benefits Incurred | Net Premiums Earned | Net Benefits Incurred | ||||||||||||||||||||
Direct | $ | $ | $ | $ | |||||||||||||||||||
Ceded | ( | ( | ( | ( | |||||||||||||||||||
Net | $ | $ | $ | $ |
Parent Company/ Principal Reinsurers | Reinsurance Recoverable (a) | Agreement Type | Products Covered | Accounting | ||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||
Aspida Life Re Ltd | $ | $ | Coinsurance Funds Withheld | Certain MYGA (b) | Deposit | |||||||||||||||||||||||||||
Somerset Reinsurance Ltd | Coinsurance Funds Withheld | Certain MYGA (b) and DA | Deposit | |||||||||||||||||||||||||||||
Wilton Reassurance Company | Coinsurance | Block of traditional, IUL and UL (c) | Reinsurance | |||||||||||||||||||||||||||||
Everlake Life Insurance Company | Coinsurance (d) | Certain MYGA (b) (d) | Deposit | |||||||||||||||||||||||||||||
Other (e) | ||||||||||||||||||||||||||||||||
Reinsurance recoverable, gross of allowance for credit losses | ||||||||||||||||||||||||||||||||
Allowance for expected credit loss | ( | ( | ||||||||||||||||||||||||||||||
Reinsurance recoverable, net of allowance for credit losses | $ | $ | ||||||||||||||||||||||||||||||
(a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies. | ||||||||||||||||||||||||||||||||
(b) As of March 31, 2024 and December 31, 2023, the combined quota share flow reinsurance amongst all reinsurers was | ||||||||||||||||||||||||||||||||
(c) Also includes certain FGL Insurance life insurance policies that are subject to redundant reserves, reported on a statutory basis, under Regulation XXX and Guideline AXXX. | ||||||||||||||||||||||||||||||||
(d) Reinsurance recoverable is collateralized by assets placed in a statutory comfort trust by the reinsurer and maintained for our sole benefit. | ||||||||||||||||||||||||||||||||
(e) Represents all other reinsurers, with no single reinsurer having a carrying value in excess of 5% of total reinsurance recoverable. |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Balance at beginning of period | $ | ( | $ | ( | |||||||
Changes in the expected credit loss reserve | |||||||||||
Balance at end of period | $ | ( | $ | ( |
Parent Company/Principal Reinsurers | Financial Strength Rating | ||||||||||||||||||||||
AM Best | S&P | Fitch | Moody's | ||||||||||||||||||||
Aspida Re | A- | — | — | — | |||||||||||||||||||
Somerset | A- | BBB+ | — | — | |||||||||||||||||||
Wilton Re | A+ | — | A | — | |||||||||||||||||||
Everlake | A+ | — | — | — |
March 31, 2024 | December 31, 2023 | ||||||||||
VOBA | $ | $ | |||||||||
DAC | |||||||||||
DSI | |||||||||||
Value of distribution asset | |||||||||||
Computer software | |||||||||||
Definite lived trademarks, tradenames, and other | |||||||||||
Indefinite lived tradenames and other | |||||||||||
Customer relationships | |||||||||||
Total Other intangible assets, net | $ | $ |
Indexed Annuities | Fixed Rate Annuities | Immediate Annuities | Universal Life | Traditional Life | Total | ||||||||||||||||||||||||||||||
Balance at January 1, 2024 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Amortization | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | $ | $ |
Indexed Annuities | Fixed Rate Annuities | Immediate Annuities | Universal Life | Traditional Life | Total | ||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Amortization | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | $ | $ |
Indexed Annuities | Fixed Rate Annuities | Universal Life | Total (a) | ||||||||||||||||||||
Balance at January 1, 2024 | $ | $ | $ | $ | |||||||||||||||||||
Capitalization | |||||||||||||||||||||||
Amortization | ( | ( | ( | ( | |||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | |||||||||||||||||||
Indexed Annuities | Fixed Rate Annuities | Universal Life | Total (a) | ||||||||||||||||||||
Balance at January 1, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Capitalization | |||||||||||||||||||||||
Amortization | ( | ( | ( | ( | |||||||||||||||||||
Reinsurance related adjustments | |||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Indexed Annuities | $ | $ | |||||||||
Fixed Rate Annuities | |||||||||||
Universal Life | |||||||||||
Funding Agreements | |||||||||||
Total | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Balance at January 1, | $ | $ | |||||||||
Capitalization | |||||||||||
Amortization | ( | ( | |||||||||
Balance at March 31, | $ | $ |
Three Months Ended March 31, 2024 | |||||
Balance at January 1, | $ | ||||
Acquired | |||||
Amortization | ( | ||||
Balance at March 31, | $ |
Customer Relationship Intangibles | VOBA | ||||||||||
Fiscal Year | |||||||||||
2024 | $ | $ | |||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
Thereafter | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Indexed annuities | Fixed rate annuities | Indexed annuities | Fixed rate annuities | ||||||||||||||||||||
Balance, beginning of period, net liability | $ | $ | $ | $ | |||||||||||||||||||
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | $ | $ | $ | $ | |||||||||||||||||||
Issuances and benefit payments | ( | ||||||||||||||||||||||
Attributed fees collected and interest accrual | |||||||||||||||||||||||
Actual policyholder behavior different from expected | |||||||||||||||||||||||
Changes in assumptions and other | ( | ||||||||||||||||||||||
Effects of market related movements | ( | ( | |||||||||||||||||||||
Balance, end of period, before effect of changes in the instrument-specific credit risk | |||||||||||||||||||||||
Effect of changes in the instrument-specific credit risk | |||||||||||||||||||||||
Balance, end of period, net liability | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average attained age of policyholders weighted by total AV (years) | |||||||||||||||||||||||
Net amount at risk | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
Asset | Liability | Net | Asset | Liability | Net | ||||||||||||||||||||||||||||||
Indexed annuities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Fixed rate annuities | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Tax credits and other benefits recognized | $ | ( | $ | ( | |||||||
Tax credit amortization expense | |||||||||||
Total | $ | ( | $ | ( |
March 31, 2024 | |||||||||||||||||||||||||||||
Indexed annuities | Fixed rate annuities | Universal Life | FABN (b) | FHLB (b) | |||||||||||||||||||||||||
Balance, beginning of year | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Issuances | |||||||||||||||||||||||||||||
Premiums received | |||||||||||||||||||||||||||||
Policy charges (a) | ( | ( | |||||||||||||||||||||||||||
Surrenders and withdrawals | ( | ( | ( | ||||||||||||||||||||||||||
Benefit payments | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Interest credited | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Balance, end of year | |||||||||||||||||||||||||||||
Embedded derivative adjustment (c) | |||||||||||||||||||||||||||||
Gross Liability, end of period | |||||||||||||||||||||||||||||
Less: Reinsurance | ( | ( | ( | ||||||||||||||||||||||||||
Net Liability, after Reinsurance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Weighted-average crediting rate | % | % | % | N/A | N/A | ||||||||||||||||||||||||
Net amount at risk (d) | N/A | N/A | $ | N/A | N/A | ||||||||||||||||||||||||
Cash surrender value (e) | $ | $ | $ | N/A | N/A |
December 31, 2023 | |||||||||||||||||||||||||||||
Indexed annuities | Fixed rate annuities | Universal Life | FABN (b) | FHLB (b) | |||||||||||||||||||||||||
Balance, beginning of year | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Issuances | |||||||||||||||||||||||||||||
Premiums received | |||||||||||||||||||||||||||||
Policy charges (a) | ( | ( | |||||||||||||||||||||||||||
Surrenders and withdrawals | ( | ( | ( | ||||||||||||||||||||||||||
Benefit payments | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Interest credited | |||||||||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||||||||
Balance, end of year | |||||||||||||||||||||||||||||
Embedded derivative adjustment (c) | |||||||||||||||||||||||||||||
Gross Liability, end of period | |||||||||||||||||||||||||||||
Less: Reinsurance | ( | ( | ( | ||||||||||||||||||||||||||
Net Liability, after Reinsurance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Weighted-average crediting rate | % | % | % | N/A | N/A | ||||||||||||||||||||||||
Net amount at risk (d) | N/A | N/A | $ | N/A | N/A | ||||||||||||||||||||||||
Cash surrender value (e) | $ | $ | $ | N/A | N/A |
March 31, 2024 | December 31, 2023 | ||||||||||
Indexed annuities | $ | $ | |||||||||
Fixed rate annuities | |||||||||||
Immediate annuities | |||||||||||
Universal life | |||||||||||
Traditional life | |||||||||||
Funding Agreement-FABN | |||||||||||
FHLB | |||||||||||
PRT | |||||||||||
Total | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||
Range of guaranteed minimum crediting rate | At Guaranteed Minimum | Greater Than | Total | ||||||||||||||||||||||||||
Indexed Annuities | |||||||||||||||||||||||||||||
0.00%-1.50% | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
1.51%-2.50% | |||||||||||||||||||||||||||||
Greater than 2.50% | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Fixed Rate Annuities | |||||||||||||||||||||||||||||
0.00%-1.50% | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
1.51%-2.50% | |||||||||||||||||||||||||||||
Greater than 2.50% | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Universal Life | |||||||||||||||||||||||||||||
0.00%-1.50% | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
1.51%-2.50% | |||||||||||||||||||||||||||||
Greater than 2.50% | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||
Range of guaranteed minimum crediting rate | At Guaranteed Minimum | Greater Than | Total | ||||||||||||||||||||||||||
Indexed Annuities | |||||||||||||||||||||||||||||
0.00%-1.50% | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
1.51%-2.50% | |||||||||||||||||||||||||||||
Greater than 2.50% | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Fixed Rate Annuities | |||||||||||||||||||||||||||||
0.00%-1.50% | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
1.51%-2.50% | |||||||||||||||||||||||||||||
Greater than 2.50% | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Universal Life | |||||||||||||||||||||||||||||
0.00%-1.50% | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
1.51%-2.50% | |||||||||||||||||||||||||||||
Greater than 2.50% | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Traditional Life | |||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Expected net premiums | |||||||||||
Balance, beginning of year | $ | $ | |||||||||
Beginning balance at original discount rate | |||||||||||
Effect of actual variances from expected experience | ( | ( | |||||||||
Balance adjusted for variances from expectation | |||||||||||
Interest accrual | |||||||||||
Net premiums collected | ( | ( | |||||||||
Ending Balance at original discount rate | |||||||||||
Effect of changes in discount rate assumptions | ( | ( | |||||||||
Balance, end of year | $ | $ | |||||||||
Expected FPB | |||||||||||
Balance, beginning of year | $ | $ | |||||||||
Beginning balance at original discount rate | |||||||||||
Effect of actual variances from expected experience | ( | ( | |||||||||
Balance adjusted for variances from expectation | |||||||||||
Interest accrual | |||||||||||
Benefits payments | ( | ( | |||||||||
Ending Balance at original discount rate | |||||||||||
Effect of changes in discount rate assumptions | ( | ( | |||||||||
Balance, end of year | $ | $ | |||||||||
Net liability for future policy benefits | $ | $ | |||||||||
Less: Reinsurance recoverable | |||||||||||
Net liability for future policy benefits, after reinsurance recoverable | $ | $ | |||||||||
Weighted-average duration of liability for future policyholder benefits (years) |
PRT | |||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Balance, beginning of year | $ | $ | |||||||||
Beginning balance at original discount rate | |||||||||||
Effect of changes in cash flow assumptions | ( | ||||||||||
Effect of actual variances from expected experience | ( | ( | |||||||||
Balance adjusted for variances from expectation | |||||||||||
Issuances | |||||||||||
Interest accrual | |||||||||||
Benefits payments | ( | ( | |||||||||
Ending Balance at original discount rate | |||||||||||
Effect of changes in discount rate assumptions | ( | ( | |||||||||
Balance, end of year | $ | $ | |||||||||
Net liability for future policy benefits | $ | $ | |||||||||
Less: Reinsurance recoverable | |||||||||||
Net liability for future policy benefits, after reinsurance recoverable | $ | $ | |||||||||
Weighted-average duration of liability for future policyholder benefits (years) |
Immediate annuities | |||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Balance, beginning of year | $ | $ | |||||||||
Beginning balance at original discount rate | |||||||||||
Effect of changes in cash flow assumptions | |||||||||||
Effect of actual variances from expected experience | ( | ( | |||||||||
Balance adjusted for variances from expectation | |||||||||||
Issuances | |||||||||||
Interest accrual | |||||||||||
Benefits payments | ( | ( | |||||||||
Ending Balance at original discount rate | |||||||||||
Effect of changes in discount rate assumptions | ( | ( | |||||||||
Balance, end of year | $ | $ | |||||||||
Net liability for future policy benefits | $ | $ | |||||||||
Less: Reinsurance recoverable | |||||||||||
Net liability for future policy benefits, after reinsurance recoverable | $ | $ | |||||||||
Weighted-average duration of liability for future policyholder benefits (years) |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Immediate annuities | PRT | Immediate annuities | PRT | ||||||||||||||||||||
Balance, beginning of year | $ | $ | $ | $ | |||||||||||||||||||
Effect of modeling changes | |||||||||||||||||||||||
Effect of changes in cash flow assumptions | ( | ||||||||||||||||||||||
Effect of actual variances from expected experience | |||||||||||||||||||||||
Balance adjusted for variances from expectation | |||||||||||||||||||||||
Issuances | |||||||||||||||||||||||
Interest accrual | |||||||||||||||||||||||
Amortization | ( | ( | ( | ||||||||||||||||||||
Balance, end of year | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Traditional Life | $ | $ | |||||||||
Immediate annuities | |||||||||||
PRT | |||||||||||
Immediate annuities DPL | |||||||||||
PRT DPL | |||||||||||
Total | $ | $ |
Undiscounted | Discounted | ||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | March 31, 2024 | March 31, 2023 | ||||||||||||||||||||
Traditional Life | |||||||||||||||||||||||
Expected future benefit payments | $ | $ | $ | $ | |||||||||||||||||||
Expected future gross premiums | |||||||||||||||||||||||
Immediate annuities | |||||||||||||||||||||||
Expected future benefit payments | $ | $ | $ | $ | |||||||||||||||||||
Expected future gross premiums | |||||||||||||||||||||||
PRT | |||||||||||||||||||||||
Expected future benefit payments | $ | $ | $ | $ | |||||||||||||||||||
Expected future gross premiums |
Gross Premiums (a) | Interest Expense (b) | ||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | March 31, 2024 | March 31, 2023 | ||||||||||||||||||||
Traditional Life | $ | $ | $ | $ | |||||||||||||||||||
Immediate annuities | |||||||||||||||||||||||
PRT | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Traditional Life | |||||||||||
Interest accretion rate | % | % | |||||||||
Current discount rate | % | % | |||||||||
Immediate annuities | |||||||||||
Interest accretion rate | % | % | |||||||||
Current discount rate | % | % | |||||||||
PRT | |||||||||||
Interest accretion rate | % | % | |||||||||
Current discount rate | % | % |
March 31, 2024 | |||||||||||||||||
Traditional Life | Immediate annuities | PRT | |||||||||||||||
Mortality | |||||||||||||||||
Actual experience | % | % | % | ||||||||||||||
Expected experience | % | % | % | ||||||||||||||
Lapses | |||||||||||||||||
Actual experience | % | % | % | ||||||||||||||
Expected experience | % | % | % |
December 31, 2023 | |||||||||||||||||
Traditional Life | Immediate annuities | PRT | |||||||||||||||
Mortality | |||||||||||||||||
Actual experience | % | % | % | ||||||||||||||
Expected experience | % | % | % | ||||||||||||||
Lapses | |||||||||||||||||
Actual experience | % | % | % | ||||||||||||||
Expected experience | % | % | % |
March 31, 2024 | December 31, 2023 | ||||||||||
Salaries and incentives | $ | $ | |||||||||
Accrued benefits | |||||||||||
URL | |||||||||||
Trade accounts payable | |||||||||||
Liability for policy and contract claims | |||||||||||
Retained asset account | |||||||||||
Remittances and items not allocated | |||||||||||
Option collateral liabilities | |||||||||||
Lease liability | |||||||||||
Investment purchases payable | |||||||||||
Contingent consideration | |||||||||||
Interest rate swaps | |||||||||||
Other accrued liabilities | |||||||||||
Accounts payable and accrued liabilities | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Balance at January 1, | $ | $ | |||||||||
Capitalization | |||||||||||
Amortization | ( | ( | |||||||||
Balance at March 31, | $ | $ | |||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
$ | $ | ||||||||||
Revolving Credit Facility - Short-term, net of deferred issuance costs of $ | |||||||||||
Total | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
$ | $ | ||||||||||
Revolving Credit Facility | |||||||||||
Total | $ | $ |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Cash paid for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | |||||||||||
Deferred sales inducements | |||||||||||
Non-cash investing and financing activities: | |||||||||||
Change in proceeds of sales of investments available for sale receivable in period | ( | ||||||||||
Change in purchases of investments available for sale payable in period | |||||||||||
March 31, 2024 | |||||
Unconsolidated VIEs: | |||||
Limited partnerships | $ | ||||
Whole loans | |||||
Fixed maturity securities, ABS | |||||
Direct Lending | |||||
Other fixed maturity securities, AFS | |||||
Commercial mortgage loans | |||||
Other assets | |||||
Other invested assets | |||||
Total | $ |
Subsidiary (state of domicile) (a) | |||||||||||||||||||||||
FGL Insurance (IA) | FGL NY Insurance (NY) | Raven Re (VT) | Corbeau Re (VT) | ||||||||||||||||||||
Statutory net income (loss): | |||||||||||||||||||||||
For the three months ended March 31, 2024 | $ | $ | $ | $ | ( | ||||||||||||||||||
For the three months ended March 31, 2023 | ( | ||||||||||||||||||||||
Statutory capital and surplus: | |||||||||||||||||||||||
March 31, 2024 | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023 |
Subsidiary (country of domicile) | |||||||||||
F&G Cayman Re (Cayman Islands) | F&G Life Re (Bermuda) | ||||||||||
Statutory net income (loss): | |||||||||||
For the three months ended March 31, 2024 | $ | ( | $ | ||||||||
For the three months ended March 31, 2023 | |||||||||||
Statutory capital and surplus: | |||||||||||
March 31, 2024 | $ | $ | |||||||||
December 31, 2023 |
Cash paid for | $ | ||||
Less: Cash acquired net of noncontrolling interests | |||||
Net cash paid for | |||||
Initial fair value of contingent consideration | |||||
Total net initial consideration | $ |
Fair Value as of January 2, 2024 | |||||
Goodwill | $ | ||||
Prepaid expenses and other assets | |||||
Other intangible assets | |||||
Total assets acquired | |||||
Accounts payable and accrued liabilities | |||||
Total liabilities assumed | |||||
Noncontrolling interests (fair value determined using income approach) | |||||
Total liabilities assumed and non-controlling interests | |||||
Net assets acquired | $ |
Gross Carrying Value | Estimated Useful Life (in years) | ||||||||||
Other intangible assets: | |||||||||||
Customer relationships | $ | ||||||||||
Definite lived trademarks, tradenames, and other | |||||||||||
Total Other intangible assets | $ | ||||||||||
Three months ended | |||||
March 31, 2023 | |||||
Total revenues | $ | ||||
Net earnings (loss) attributable to F&G shareholders | $ | ( | |||
Three months ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net earnings (loss) | $ | $ | ( | ||||||||
Less: Noncontrolling interests | |||||||||||
Net earnings (loss) attributable to F&G | ( | ||||||||||
Less: Preferred stock dividend | |||||||||||
Net earnings (loss) attributable to F&G common shareholders | $ | $ | ( | ||||||||
Weighted-average common shares outstanding - basic | |||||||||||
Dilutive effect of unvested restricted stock | |||||||||||
Dilutive effect of mandatory convertible preferred stock | |||||||||||
Weighted-average shares outstanding - diluted | |||||||||||
Net earnings (loss) per share attributable to F&G common shareholders | |||||||||||
Basic - net | $ | $ | ( | ||||||||
Diluted - net | $ | $ | ( |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Revenues | |||||||||||
Life insurance premiums and other fees | $ | 718 | $ | 365 | |||||||
Interest and investment income | 616 | 519 | |||||||||
Owned distribution revenues | 23 | — | |||||||||
Recognized gains and (losses), net | 212 | (15) | |||||||||
Total revenues | 1,569 | 869 | |||||||||
Benefits and expenses | |||||||||||
Benefits and other changes in policy reserves | 1,161 | 812 | |||||||||
Market risk benefit (gains) losses | (11) | 59 | |||||||||
Depreciation and amortization | 123 | 90 | |||||||||
Personnel costs | 66 | 53 | |||||||||
Other operating expenses | 58 | 36 | |||||||||
Interest expense | 30 | 22 | |||||||||
Total benefits and expenses | 1,427 | 1,072 | |||||||||
Earnings (loss) before income taxes | 142 | (203) | |||||||||
Income tax expense (benefit) | 26 | (8) | |||||||||
Net earnings (loss) | 116 | (195) | |||||||||
Less: Noncontrolling interests | 1 | — | |||||||||
Net earnings (loss) attributable to F&G | 115 | (195) | |||||||||
Less: Preferred stock dividend | 4 | — | |||||||||
Net earnings (loss) attributable to F&G common shareholders | $ | 111 | $ | (195) |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Indexed annuities ("FIA/RILA") | $ | 1,437 | $ | 1,211 | |||||||
Fixed rate annuities ("MYGA") | 1,327 | 1,513 | |||||||||
Total annuity | 2,764 | 2,724 | |||||||||
IUL | 42 | 37 | |||||||||
Funding agreements | 105 | 256 | |||||||||
PRT | 584 | 264 | |||||||||
Gross sales | 3,495 | 3,281 | |||||||||
Sales attributable to flow reinsurance to third parties | (1,193) | (1,072) | |||||||||
Net sales | $ | 2,302 | $ | 2,209 |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Life-contingent pension risk transfer premiums | $ | 584 | $ | 263 | |||||||
Traditional life insurance and life-contingent immediate annuity premiums | 12 | 12 | |||||||||
Surrender charges | 43 | 23 | |||||||||
Policyholder fees and other income | 79 | 67 | |||||||||
Life insurance premiums and other fees | $ | 718 | $ | 365 |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Fixed maturity securities, available-for-sale | $ | 516 | $ | 432 | |||||||
Equity securities | 6 | 5 | |||||||||
Preferred securities | 6 | 10 | |||||||||
Mortgage loans | 66 | 51 | |||||||||
Invested cash and short-term investments | 28 | 16 | |||||||||
Limited partnerships | 54 | 57 | |||||||||
Other investments | 10 | 9 | |||||||||
Gross investment income | 686 | 580 | |||||||||
Investment expense | (70) | (61) | |||||||||
Interest and investment income | $ | 616 | $ | 519 |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
AAUM | $ | 49,400 | $ | 44,309 | |||||||
Yield on AAUM (at amortized cost) | 4.99 | % | 4.69 | % |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Owned distribution revenues | $ | 23 | $ | — | |||||||
Total owned distribution revenues | $ | 23 | $ | — |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Net realized and unrealized gains (losses) on fixed maturity available-for-sale securities, equity securities and other invested assets | $ | 48 | $ | (48) | |||||||
Change in allowance for expected credit losses | — | (8) | |||||||||
Net realized and unrealized gains (losses) on certain derivatives instruments | 179 | 58 | |||||||||
Change in fair value of reinsurance related embedded derivatives | (18) | (19) | |||||||||
Change in fair value of other derivatives and embedded derivatives | 3 | 2 | |||||||||
Recognized gains and (losses), net | $ | 212 | $ | (15) |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Call options: | |||||||||||
Realized gains (losses) | $ | 11 | $ | (91) | |||||||
Change in unrealized gains (losses) | 239 | 146 | |||||||||
Futures contracts: | |||||||||||
Gains (losses) on futures contracts expiration | 7 | 3 | |||||||||
Change in unrealized (losses) gains | (1) | 1 | |||||||||
Interest rate swap (losses) gains | (80) | — | |||||||||
Foreign currency forward: | |||||||||||
Gains (losses) on foreign currency forward | 3 | (1) | |||||||||
Total net change in fair value | $ | 179 | $ | 58 | |||||||
Annual Point-to-Point Change in S&P 500 Index during the periods | 28 | % | (9) | % | |||||||
Secured Overnight Financing Rates | 5.34 | % | 4.87 | % |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Average Crediting Rate | 3 | % | — | % | |||||||
S&P 500 Index: | |||||||||||
Point-to-point strategy | 3 | % | — | % | |||||||
Monthly average strategy | 3 | % | — | % | |||||||
Monthly point-to-point strategy | 3 | % | — | % | |||||||
3 year high water mark | 5 | % | 13 | % |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
PRT agreements | $ | 598 | $ | 266 | |||||||
Indexed annuities/IUL market related liability movements | 225 | 369 | |||||||||
Index credits, interest credited and bonuses | 327 | 134 | |||||||||
Other changes in policy reserves | 11 | 43 | |||||||||
Total benefits and other changes in policy reserves | $ | 1,161 | $ | 812 |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Market risk benefit (gains) losses | $ | (11) | $ | 59 |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Amortization of VOBA, DAC and DSI | $ | 107 | $ | 82 | |||||||
Amortization of other intangible assets and fixed asset depreciation | 16 | 8 | |||||||||
Total depreciation and amortization | $ | 123 | $ | 90 |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Personnel costs | $ | 66 | $ | 53 | |||||||
Other operating expenses | 58 | 36 | |||||||||
Total personnel costs and other operating expenses | $ | 124 | $ | 89 |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Interest expense | $ | 30 | $ | 22 | |||||||
Total interest expense | $ | 30 | $ | 22 |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Earnings (loss) before taxes | $ | 142 | $ | (203) | |||||||
Income tax expense (benefit) before valuation allowance | 25 | (45) | |||||||||
Change in valuation allowance | 1 | 37 | |||||||||
Income tax expense (benefit) | $ | 26 | $ | (8) | |||||||
Effective rate | 18 | % | 4 | % |
Three months ended | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Net earnings (loss) attributable to common shareholders | $ | 111 | $ | (195) | |||||||
Non-GAAP adjustments: | |||||||||||
Recognized (gains) and losses, net | |||||||||||
Net realized and unrealized (gains) losses on fixed maturity available-for-sale securities, equity securities and other invested assets | (48) | 48 | |||||||||
Change in allowance for expected credit losses | 1 | 8 | |||||||||
Change in fair value of reinsurance related embedded derivatives | 18 | 19 | |||||||||
Change in fair value of other derivatives and embedded derivatives | 61 | (1) | |||||||||
Recognized (gains) losses, net | 32 | 74 | |||||||||
Market related liability adjustments | (55) | 244 | |||||||||
Purchase price amortization | 22 | 5 | |||||||||
Transaction costs and other non-recurring items | — | 2 | |||||||||
Noncontrolling interest | (3) | — | |||||||||
Income taxes adjustment | 1 | (69) | |||||||||
Adjusted net earnings attributable to common shareholders | $ | 108 | $ | 61 |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Fair Value | Percent | Fair Value | Percent | ||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||
United States Government full faith and credit | $ | 276 | — | % | $ | 261 | 1 | % | |||||||||||||||
United States Government sponsored entities | 33 | — | % | 31 | — | % | |||||||||||||||||
United States municipalities, states and territories | 1,504 | 3 | % | 1,567 | 3 | % | |||||||||||||||||
Foreign Governments | 224 | — | % | 226 | — | % | |||||||||||||||||
Corporate securities: | |||||||||||||||||||||||
Finance, insurance and real estate | 7,571 | 14 | % | 6,895 | 13 | % | |||||||||||||||||
Manufacturing, construction and mining | 1,119 | 2 | % | 947 | 2 | % | |||||||||||||||||
Utilities, energy and related sectors | 2,456 | 5 | % | 2,374 | 5 | % | |||||||||||||||||
Wholesale/retail trade | 2,512 | 5 | % | 2,433 | 5 | % | |||||||||||||||||
Services, media and other | 4,011 | 8 | % | 3,930 | 8 | % | |||||||||||||||||
Hybrid securities | 633 | 1 | % | 618 | 1 | % | |||||||||||||||||
Non-agency residential mortgage-backed securities | 2,426 | 5 | % | 2,393 | 5 | % | |||||||||||||||||
Commercial mortgage-backed securities | 4,758 | 9 | % | 4,410 | 9 | % | |||||||||||||||||
Asset-backed securities | 9,491 | 18 | % | 8,929 | 17 | % | |||||||||||||||||
Collateral loan obligations ("CLO") | 5,617 | 10 | % | 5,405 | 10 | % | |||||||||||||||||
Total fixed maturity available for sale securities | $ | 42,631 | 80 | % | $ | 40,419 | 79 | % | |||||||||||||||
Equity securities (a) | 519 | 1 | % | 606 | 1 | % | |||||||||||||||||
Limited partnerships: | |||||||||||||||||||||||
Private equity | 1,389 | 3 | % | 1,277 | 2 | % | |||||||||||||||||
Real assets | 473 | 1 | % | 463 | 1 | % | |||||||||||||||||
Credit | 1,156 | 2 | % | 1,039 | 2 | % | |||||||||||||||||
Limited Partnerships | 3,018 | 6 | % | 2,779 | 5 | % | |||||||||||||||||
Commercial mortgage loans | 2,229 | 4 | % | 2,253 | 4 | % | |||||||||||||||||
Residential mortgage loans | 2,590 | 5 | % | 2,545 | 5 | % | |||||||||||||||||
Other (primarily derivatives, company owned life insurance and unconsolidated owned distribution investments) | 2,008 | 4 | % | 1,697 | 3 | % | |||||||||||||||||
Short term investments | 263 | — | % | 1,452 | 3 | % | |||||||||||||||||
Total investments | $ | 53,258 | 100 | % | $ | 51,751 | 100 | % |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||
NRSRO Rating | NAIC Designation | Amortized Cost | Fair Value | Fair Value Percent | Amortized Cost | Fair Value | Fair Value Percent | |||||||||||||||||||||||||
AAA/AA/A | 1 | $ | 29,392 | $ | 27,470 | 64 | % | $ | 28,052 | $ | 26,170 | 65 | % | |||||||||||||||||||
BBB | 2 | 14,292 | 13,196 | 31 | % | 13,421 | 12,302 | 30 | % | |||||||||||||||||||||||
BB | 3 | 1,595 | 1,552 | 4 | % | 1,633 | 1,554 | 4 | % | |||||||||||||||||||||||
B | 4 | 273 | 221 | 1 | % | 268 | 215 | 1 | % | |||||||||||||||||||||||
CCC | 5 | 122 | 82 | — | % | 103 | 72 | — | % | |||||||||||||||||||||||
CC and lower | 6 | 118 | 110 | — | % | 124 | 106 | — | % | |||||||||||||||||||||||
Total | $ | 45,792 | $ | 42,631 | 100 | % | $ | 43,601 | $ | 40,419 | 100 | % | ||||||||||||||||||||
March 31, 2024 | |||||||||||
Top 10 Concentrations | Fair Value | Percent of Total Fair Value | |||||||||
ABS other | $ | 9,491 | 22 | % | |||||||
CLO securities | 5,617 | 13 | % | ||||||||
Commercial mortgage-backed securities | 4,758 | 11 | % | ||||||||
Diversified financial services | 3,657 | 8 | % | ||||||||
Banking | 2,158 | 5 | % | ||||||||
Whole loan collateralized mortgage obligation | 2,078 | 5 | % | ||||||||
Insurance | 1,616 | 4 | % | ||||||||
Municipal | 1,504 | 3 | % | ||||||||
Electric | 1,146 | 3 | % | ||||||||
Telecommunications | 700 | 2 | % | ||||||||
Total | $ | 32,725 | 76 | % |
December 31, 2023 | |||||||||||
Top 10 Concentrations | Fair Value | Percent of Total Fair Value | |||||||||
ABS other | $ | 8,929 | 22 | % | |||||||
CLO securities | 5,405 | 13 | % | ||||||||
Commercial mortgage-backed securities | 4,410 | 11 | % | ||||||||
Diversified financial services | 3,272 | 8 | % | ||||||||
Banking | 2,048 | 5 | % | ||||||||
Whole loan collateralized mortgage obligation | 2,043 | 5 | % | ||||||||
Municipal | 1,600 | 4 | % | ||||||||
Insurance | 1,567 | 4 | % | ||||||||
Electric | 1,086 | 3 | % | ||||||||
Telecommunications | 696 | 2 | % | ||||||||
Total | $ | 31,056 | 77 | % |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Corporate, Non-structured Hybrids, Municipal and U.S. Government securities: | |||||||||||||||||||||||
Due in one year or less | $ | 404 | $ | 393 | $ | 383 | $ | 374 | |||||||||||||||
Due after one year through five years | 3,700 | 3,614 | 3,207 | 3,129 | |||||||||||||||||||
Due after five years through ten years | 3,492 | 3,333 | 2,822 | 2,680 | |||||||||||||||||||
Due after ten years | 15,424 | 12,966 | 15,333 | 13,068 | |||||||||||||||||||
Subtotal | 23,020 | 20,306 | 21,745 | 19,251 | |||||||||||||||||||
Other securities, which provide for periodic payments: | |||||||||||||||||||||||
Asset-backed securities | 15,247 | 15,108 | 14,623 | 14,334 | |||||||||||||||||||
Commercial-mortgage-backed securities | 4,980 | 4,758 | 4,732 | 4,410 | |||||||||||||||||||
Residential mortgage-backed securities | 2,545 | 2,459 | 2,501 | 2,424 | |||||||||||||||||||
Subtotal | 22,772 | 22,325 | 21,856 | 21,168 | |||||||||||||||||||
Total fixed maturity available-for-sale securities | $ | 45,792 | $ | 42,631 | $ | 43,601 | $ | 40,419 |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
Fair Value | Percent | Fair Value | Percent | |||||||||||||||||||||||
NRSRO Rating | NAIC Designation | |||||||||||||||||||||||||
AAA/AA/A | 1 | $ | 7,444 | 78% | $ | 7,023 | 79% | |||||||||||||||||||
BBB | 2 | 1,495 | 16% | 1,375 | 15% | |||||||||||||||||||||
BB | 3 | 441 | 5% | 418 | 5% | |||||||||||||||||||||
B | 4 | 61 | 1% | 59 | 1% | |||||||||||||||||||||
CCC | 5 | 8 | —% | 13 | —% | |||||||||||||||||||||
CC and lower | 6 | 42 | —% | 41 | —% | |||||||||||||||||||||
Total | $ | 9,491 | 100% | $ | 8,929 | 100% |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
Fair Value | Percent | Fair Value | Percent | |||||||||||||||||||||||
NRSRO Rating | NAIC Designation | |||||||||||||||||||||||||
AAA/AA/A | 1 | $ | 3,433 | 61% | $ | 3,288 | 61% | |||||||||||||||||||
BBB | 2 | 1,649 | 29% | 1,582 | 29% | |||||||||||||||||||||
BB | 3 | 476 | 9% | 480 | 9% | |||||||||||||||||||||
B | 4 | 18 | —% | 17 | —% | |||||||||||||||||||||
CCC | 5 | — | —% | — | —% | |||||||||||||||||||||
CC and lower | 6 | 41 | 1% | 38 | 1% | |||||||||||||||||||||
Total | $ | 5,617 | 100% | $ | 5,405 | 100% |
March 31, 2024 | |||||||||||||||||||||||||||||
Number of Securities | Amortized Cost | Allowance for Expected Credit Losses | Unrealized Losses | Fair Value | |||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||
United States Government full faith and credit | 23 | $ | 171 | $ | — | $ | (2) | $ | 169 | ||||||||||||||||||||
United States Government sponsored agencies | 55 | 29 | — | (3) | 26 | ||||||||||||||||||||||||
United States municipalities, states and territories | 173 | 1,464 | — | (231) | 1,233 | ||||||||||||||||||||||||
Foreign Governments | 46 | 212 | — | (43) | 169 | ||||||||||||||||||||||||
Corporate securities: | |||||||||||||||||||||||||||||
Finance, insurance and real estate | 778 | 6,233 | — | (718) | 5,515 | ||||||||||||||||||||||||
Manufacturing, construction and mining | 133 | 1,185 | — | (149) | 1,036 | ||||||||||||||||||||||||
Utilities, energy and related sectors | 353 | 2,537 | — | (494) | 2,043 | ||||||||||||||||||||||||
Wholesale/retail trade | 405 | 2,402 | — | (431) | 1,971 | ||||||||||||||||||||||||
Services, media and other | 495 | 3,765 | — | (751) | 3,014 | ||||||||||||||||||||||||
Hybrid securities | 34 | 574 | — | (38) | 536 | ||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 297 | 1,301 | (1) | (113) | 1,187 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 404 | 2,809 | (21) | (239) | 2,549 | ||||||||||||||||||||||||
Asset-backed securities | 614 | 6,565 | (11) | (408) | 6,146 | ||||||||||||||||||||||||
Total fixed maturity available for sale securities | 3,810 | 29,247 | (33) | (3,620) | 25,594 | ||||||||||||||||||||||||
Equity securities | 35 | 441 | — | (89) | 352 | ||||||||||||||||||||||||
Total investments | 3,845 | $ | 29,688 | $ | (33) | $ | (3,709) | $ | 25,946 |
December 31, 2023 | |||||||||||||||||||||||||||||
Number of Securities | Amortized Cost | Allowance for Expected Credit Losses | Unrealized Losses | Fair Value | |||||||||||||||||||||||||
Fixed maturity securities, available for sale: | |||||||||||||||||||||||||||||
United States Government full faith and credit | 8 | $ | 15 | $ | — | $ | (1) | $ | 14 | ||||||||||||||||||||
United States Government sponsored agencies | 56 | 30 | — | (3) | 27 | ||||||||||||||||||||||||
United States municipalities, states and territories | 180 | 1,498 | — | (222) | 1,276 | ||||||||||||||||||||||||
Foreign Governments | 50 | 209 | — | (39) | 170 | ||||||||||||||||||||||||
Corporate securities: | |||||||||||||||||||||||||||||
Finance, insurance and real estate | 637 | 5,529 | — | (690) | 4,839 | ||||||||||||||||||||||||
Manufacturing, construction and mining | 117 | 965 | — | (135) | 830 | ||||||||||||||||||||||||
Utilities, energy and related sectors | 316 | 2,402 | — | (471) | 1,931 | ||||||||||||||||||||||||
Wholesale/retail trade | 332 | 2,165 | — | (397) | 1,768 | ||||||||||||||||||||||||
Services, media and other | 401 | 3,370 | — | (686) | 2,684 | ||||||||||||||||||||||||
Hybrid securities | 36 | 597 | — | (53) | 544 | ||||||||||||||||||||||||
Non-agency residential mortgage-backed securities | 244 | 1,118 | (2) | (101) | 1,015 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 435 | 3,198 | (22) | (323) | 2,853 | ||||||||||||||||||||||||
Asset-backed securities | 800 | 8,078 | (9) | (470) | 7,599 | ||||||||||||||||||||||||
Total fixed maturity available for sale securities | 3,612 | 29,174 | (33) | (3,591) | 25,550 | ||||||||||||||||||||||||
Equity securities | 41 | 567 | — | (100) | 467 | ||||||||||||||||||||||||
Total investments | 3,653 | $ | 29,741 | $ | (33) | $ | (3,691) | $ | 26,017 |
March 31, 2024 | |||||||||||||||||||||||||||||
Number of Securities | Amortized Cost | Fair Value | Allowance for Credit Loss | Gross Unrealized Losses | |||||||||||||||||||||||||
Investment grade: | |||||||||||||||||||||||||||||
Less than six months | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Six months or more and less than twelve months | 1 | 15 | 14 | — | (1) | ||||||||||||||||||||||||
Twelve months or greater | 83 | 1,112 | 768 | — | (344) | ||||||||||||||||||||||||
Total investment grade | 84 | 1,127 | 782 | — | (345) | ||||||||||||||||||||||||
Below investment grade: | |||||||||||||||||||||||||||||
Less than six months | — | — | — | — | — | ||||||||||||||||||||||||
Six months or more and less than twelve months | — | — | — | — | — | ||||||||||||||||||||||||
Twelve months or greater | 3 | 41 | 30 | — | (11) | ||||||||||||||||||||||||
Total below investment grade | 3 | 41 | 30 | — | (11) | ||||||||||||||||||||||||
Total | 87 | $ | 1,168 | $ | 812 | $ | — | $ | (356) |
December 31, 2023 | |||||||||||||||||||||||||||||
Number of Securities | Amortized Cost | Fair Value | Allowance for Credit Loss | Gross Unrealized Losses | |||||||||||||||||||||||||
Investment grade: | |||||||||||||||||||||||||||||
Less than six months | 1 | $ | 15 | $ | 14 | $ | — | $ | (1) | ||||||||||||||||||||
Six months or more and less than twelve months | 1 | 54 | 44 | — | (10) | ||||||||||||||||||||||||
Twelve months or greater | 47 | 634 | 444 | — | (190) | ||||||||||||||||||||||||
Total investment grade | 49 | 703 | 502 | — | (201) | ||||||||||||||||||||||||
Below investment grade: | |||||||||||||||||||||||||||||
Less than six months | — | — | — | — | — | ||||||||||||||||||||||||
Six months or more and less than twelve months | — | — | — | — | — | ||||||||||||||||||||||||
Twelve months or greater | 3 | 19 | 15 | — | (4) | ||||||||||||||||||||||||
Total below investment grade | 3 | 19 | 15 | — | (4) | ||||||||||||||||||||||||
Total | 52 | $ | 722 | $ | 517 | $ | — | $ | (205) |
Three months ended | Year ended | ||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Summarized Statement of Operations: | |||||||||||
Total revenues | $ | 49 | $ | (5) | |||||||
Total expenses | (27) | (94) | |||||||||
Income tax (expense) benefit | 1 | (1) | |||||||||
Net earnings (loss) | $ | 23 | $ | (100) | |||||||
Summarized Balance Sheet: | March 31, 2024 | December 31, 2023 | |||||||||
Investments | $ | 491 | $ | 532 | |||||||
Cash and cash equivalents | 253 | 322 | |||||||||
Goodwill | 1,725 | 1,725 | |||||||||
Due from non-guarantor affiliates | 18 | 64 | |||||||||
Other assets | 30 | 33 | |||||||||
Total assets | $ | 2,517 | $ | 2,676 | |||||||
Notes payable | $ | 1,748 | $ | 1,754 | |||||||
Other liabilities | 109 | 145 | |||||||||
Total liabilities | $ | 1,857 | $ | 1,899 |
Exhibit No. | Description of Exhibits | |||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
10.1 | ||||||||
31.1 * | ||||||||
31.2 * | ||||||||
32.1 * | ||||||||
32.2 * | ||||||||
101 * | The following financial information from the Company’s Quarterly Report on Form 10-Q for the three-month period ended March 31, 2024 is formatted in Inline XBRL (Extensible Business Reporting Language): (i) the unaudited Condensed Consolidated Balance Sheets, (ii) the unaudited Condensed Consolidated Statements of Operations, (iii) the unaudited Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the unaudited Condensed Consolidated Statements of Equity, (v) the unaudited Condensed Consolidated Statements of Cash Flows, and (vi) notes to these unaudited Condensed Consolidated financial statements, and (vii) the Cover Page to the Company’s Quarterly Report on Form 10-Q. | |||||||
104 * | The cover page from the Company’s Quarterly Report on Form 10-Q for the three-month period ended March 31, 2024 is formatted in Inline XBRL (Extensible Business Reporting Language) and contained in Exhibit 101. |
F&G Annuities & Life, Inc. (Registrant) | |||||||||||
Date: | May 10, 2024 | By: | /s/ Wendy J.B. Young | ||||||||
Wendy J.B. Young | |||||||||||
Chief Financial Officer | |||||||||||
(on behalf of the Registrant and as Principal Financial Officer) |
/s/ Christopher O. Blunt | |||||
Christopher O. Blunt President and Chief Executive Officer (Principal Executive Officer) |
/s/ Wendy J.B. Young | |||||
Wendy J.B. Young Chief Financial Officer (Principal Financial Officer) |
/s/ Christopher O. Blunt | |||||
Christopher O. Blunt President and Chief Executive Officer (Principal Executive Officer) |
/s/ Wendy J.B. Young | |||||
Wendy J.B. Young Chief Financial Officer (Principal Financial Officer) |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Statement [Abstract] | ||
Remeasurement gains (losses) | $ 7 | $ (4) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ 116 | $ (195) |
Other comprehensive income (loss): | ||
Changes in current discount rate - future policy benefits | 91 | (100) |
Changes in instrument-specific credit risk - market risk benefits | 1 | 7 |
Unrealized gain on investments and other financial instruments, net of deferred income taxes | 2 | 321 |
Unrealized gain (loss) on foreign currency translation | (2) | 1 |
Reclassification adjustments for change in unrealized gains and losses included in net earnings | 15 | 41 |
Other comprehensive income | 107 | 270 |
Comprehensive income | 223 | 75 |
Less: Comprehensive income attributable to non-controlling interest | 1 | 0 |
Comprehensive income attributable to F&G common shareholders | $ 222 | $ 75 |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions |
Total |
Series A Preferred Stock |
Additional Paid-in Capital |
Additional Paid-in Capital
Series A Preferred Stock
|
Retained Earnings |
Accumulated other comprehensive income (loss) |
Treasury Stock |
Noncontrolling Interests |
---|---|---|---|---|---|---|---|---|
Balance, Beginning at Dec. 31, 2022 | $ 2,405 | $ 3,162 | $ 2,061 | $ (2,818) | $ 0 | $ 0 | ||
Stock-based compensation | 5 | 5 | ||||||
Other comprehensive income | 270 | 270 | ||||||
Net earnings | (195) | (195) | ||||||
Balance, Ending at Mar. 31, 2023 | 2,485 | 3,167 | 1,866 | (2,548) | 0 | 0 | ||
Balance, Beginning at Dec. 31, 2023 | 3,103 | 3,185 | 1,926 | (1,990) | (18) | 0 | ||
Acquisition of non-controlling interest | 136 | 136 | ||||||
Issuance of preferred stock | $ 250 | $ 250 | ||||||
Treasury stock purchased | (6) | (6) | ||||||
Stock-based compensation | 7 | 7 | ||||||
Preferred stock dividends declared | (4) | (4) | ||||||
Common stock dividends declared | (26) | (26) | ||||||
Other comprehensive income | 107 | 107 | ||||||
Net earnings | 116 | 115 | 1 | |||||
Balance, Ending at Mar. 31, 2024 | $ 3,683 | $ 3,442 | $ 2,011 | $ (1,883) | $ (24) | $ 137 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Cash Flows from Operating Activities: | ||
Net earnings (loss) | $ 116 | $ (195) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 123 | 90 |
(Gain) loss on sales of investments and other assets and asset impairments, net | 8 | 182 |
Interest credited/index credits to contractholder account balances | 513 | 463 |
Change in market risk benefits, net | (11) | 59 |
Deferred policy acquisition costs and deferred sales inducements | (311) | (251) |
Charges assessed to contractholders for mortality and administration | (66) | (58) |
Distributions from unconsolidated affiliates, return on investment | 17 | 19 |
Stock-based compensation cost | 7 | 5 |
Change in NAV of limited partnerships, net | (49) | (57) |
Change in valuation of derivatives, equity and preferred securities and other assets, net | (223) | (166) |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Change in reinsurance recoverable | (22) | 0 |
Change in future policy benefits | 505 | 224 |
Change in funds withheld from reinsurers | 940 | 1,124 |
Net change in income taxes | 20 | (13) |
Net change in other assets and other liabilities | (33) | 11 |
Net cash provided by operating activities | 1,534 | 1,437 |
Cash Flows from Investing Activities: | ||
Proceeds from sales, calls and maturities of investment securities | 1,586 | 915 |
Additions to property and equipment and capitalized software | (7) | (6) |
Purchases of investment securities | (3,636) | (3,900) |
Other acquisitions/disposals, net of cash acquired | (268) | 0 |
Net proceeds from (purchases of) sales and maturities of short-term investment securities | 1,190 | 785 |
Additional investments in unconsolidated affiliates | (266) | (293) |
Distributions from unconsolidated affiliates, return of investment | 17 | 91 |
Net cash used in investing activities | (1,384) | (2,408) |
Cash Flows from Financing Activities: | ||
Borrowings | 0 | 500 |
Debt issuance costs | (5) | (10) |
Net revolving credit facility (repayments) borrowings | 0 | (35) |
Common dividends paid | (26) | (25) |
Purchases of treasury stock | (6) | 0 |
Issuance of preferred stock | 250 | 0 |
Contractholder account deposits | 1,929 | 2,115 |
Contractholder account withdrawals | (1,483) | (950) |
Net cash provided by financing activities | 659 | 1,595 |
Net increase in cash and cash equivalents | 809 | 624 |
Cash and cash equivalents at beginning of period | 1,563 | 960 |
Cash and cash equivalents at end of period | $ 2,372 | $ 1,584 |
Basis of Financial Statements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Financial Statements | Basis of Financial Statements The financial information in this report presented for interim periods is unaudited and includes the accounts of F&G Annuities & Life, Inc. (“FGAL”) and its subsidiaries (collectively, “we”, “us”, “our”, the "Company" or “F&G”) prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023, filed on February 29, 2024. Description of the Business F&G is a majority-owned subsidiary of Fidelity National Financial, Inc. (NYSE: FNF)(“FNF”). We provide insurance solutions and market a broad portfolio of annuity and life insurance products through retail channels and institutional markets. F&G has one reporting segment, which is consistent with and reflects the manner by which our chief operating decision maker (“CODM”) views and manages the business. For certain disclosures within this Quarterly Report on Form 10-Q, we have elected to aggregate business based on the applicable product type, the manner in which information is regularly reviewed by management and the nature of disclosures that exist outside the Company’s GAAP financial statements. Retail distribution channels products include: •Deferred annuities including fixed indexed annuities (“FIA”), registered index-linked annuities (“RILA”), (together referred to as “indexed annuities”) and fixed rate annuities including multi-year guarantee annuities (“MYGA”), •Immediate annuities, and •Indexed universal life (“IUL”) insurance. Institutional markets products include: •Pension risk transfer (“PRT”) solutions, and •Funding agreements, including funding agreement backed notes (“FABN”) and Federal Home Loan Bank funding agreements (“FHLB”). Recent Developments Owned Distribution Investments On January 2, 2024, F&G acquired a 70% majority ownership stake in the equity of Roar Joint Venture, LLC (“Roar”) resulting in the consolidation of Roar in F&G’s financial statements. Roar wholesales life insurance and annuity products to banks and broker dealers through a network of agents. Total initial consideration is comprised of cash of approximately $269 million and $48 million of contingent consideration. Under the terms of the purchase agreement, the Company has agreed to make cash payments of up to approximately $90 million over a three-year period upon the achievement by Roar of certain earnings before interest, taxes, depreciation and amortization (“EBITDA”) milestones. Owned distribution revenues generated from commissions earned on contracts with insurance carriers are considered variable consideration. Revenue is recognized at the effective date of each policy sold under a contract and reported net of related expenses within Owned Distribution Revenues on the accompanying unaudited Condensed Consolidated Statements of Operations. Intercompany transactions are eliminated in consolidation. For more information regarding the Roar acquisition, refer to Note P - Acquisition. The contingent consideration is recorded at fair value in Accounts payable and accrued liabilities in the unaudited Condensed Consolidated Balance Sheets. Changes in the fair value of the contingent consideration are recorded in Other operating expenses in the unaudited Condensed Consolidated Statements of Operations. Unconsolidated Owned Distribution Investments For the three months ended March 31, 2024 and 2023, we paid approximately $50 million and $37 million in commissions on sales through our unconsolidated funded owned distribution investments and their affiliates, with the acquisition expense deferred and amortized in Depreciation and amortization on the accompanying unaudited Condensed Consolidated Statements of Operations. FNF $250 million Preferred Stock Investment On January 12, 2024, we completed a $250 million preferred stock investment from FNF. F&G will use net proceeds from the investment to support the growth of its assets under management. Under the terms of the agreement, FNF agreed to invest $250 million in exchange for 5,000,000 shares of F&G’s 6.875% Series A Mandatory Convertible Preferred Stock, par value $.0.001 per share, liquidation preference of $50.00 per share (the “FNF Preferred Stock”). Each outstanding share of the FNF Preferred Stock will automatically convert into shares of F&G common stock on or before January 15, 2027. Revolving Credit Facility On February 16, 2024, F&G entered into an amendment and extension of its existing senior unsecured revolving credit agreement (the “Credit Agreement”). The maturity date of the Credit Agreement was extended by approximately two years from November 22, 2025 to November 22, 2027. Total borrowing availability increased from $665 million to $750 million. Pricing and advance rates remain unchanged. Financial covenants also remain essentially the same. For more information regarding the amendment and extension, refer to Note L - Notes Payable. Dividends On May 8, 2024, our Board of Directors declared a quarterly cash dividend of $0.8594 per share on the FNF Preferred Stock for the period from April 15, 2024 to and excluding July 15, 2024, to be payable on July 15, 2024, to FNF Preferred Stock record holders on July 1, 2024. On May 8, 2024, we also announced that our Board of Directors declared a quarterly cash dividend of $0.21 per common share, payable on June 28, 2024, to F&G common shareholders of record as of June 14, 2024. Generally, no dividends will be declared or paid on F&G common stock and no common stock can be acquired by F&G unless all preferred dividends are declared and paid on the FNF Preferred Stock. Earnings Per Share Basic earnings per share (“EPS”), as presented on the unaudited Condensed Consolidated Statements of Operations, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such period. Net earnings available to common shareholders is net earnings adjusted for net earnings attributable to noncontrolling interests, preferred stock dividends, including preferred stock dividends declared. In periods when earnings are positive, diluted EPS is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted loss per share is equal to basic loss per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. Certain shares of restricted stock, using the treasury stock method and, as of January 12, 2024, the FNF Preferred Stock, using the if-converted method, are treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which the effect is dilutive. The if- converted method assumes that the convertible preferred stock converts into common stock at the beginning of the period or date of issuance, if later. Comprehensive Income (Loss) We report comprehensive income (loss) in accordance with GAAP on the unaudited Condensed Consolidated Statements of Comprehensive Income (Loss). Total comprehensive income is defined as all changes in shareholders' equity during a period, other than those resulting from investments by and distributions to shareholders. While total comprehensive income (loss) is the activity in a period and is largely driven by net earnings in that period, Accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income, net of tax, as of the balance sheet date. Amounts reclassified to net earnings relate to the realized gains (losses) on our investments and other financial instruments, excluding investments in unconsolidated affiliates, and are included in Recognized gains and (losses), net on the unaudited Condensed Consolidated Statements of Operations. Changes in the balance of Other comprehensive income (loss) for the three months ended March 31, 2024 and 2023 by component are as follows (in millions).
(a) Net of income tax benefit of $4 million for the three months ended March 31, 2024
(a) Net of $11 million of income tax benefit for the three months ended March 31, 2023 Recent Accounting Pronouncements Adopted Pronouncements In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-02, Accounting for Investments in Tax Credit Structure Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force). The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. We adopted this standard on January 1, 2024, as required, and there was no material impact to our unaudited Condensed Consolidated Financial Statements. Refer to Note H - Income Taxes for further information. Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expense categories that are regularly provided to the CODM and included in each reported measure of a segment’s profit or loss. In addition, the amendments enhance interim disclosure requirements that are currently required annually, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. Additionally, the amendments require that entities with a single reportable segment must now provide all the disclosures previously required under Topic 280. The amendments in this update are incremental to the current requirements of Topic 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The enhanced segment disclosure requirements apply retrospectively to all prior periods presented in the financial statements. The significant segment expense and other segment item amounts disclosed in prior periods shall be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments in this update are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted, and the updates must be applied retrospectively to all periods presented in the financial statements. We do not expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update enhance the transparency of the income tax disclosures by expanding on the disclosures required annually. The amendments require entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes, in addition to providing details about the reconciling items in some categories if above a quantitative threshold. Additionally, the amendments require annual disclosure of income taxes paid (net of refunds received) disaggregated by jurisdiction based on a quantitative threshold. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis, and retrospective application is permitted. We do not expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption.
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Fair Value of Financial Instruments |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or non-performance risk, which may include our own credit risk. We estimate an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market for that asset or liability in the absence of a principal market as opposed to the price that would be paid to acquire the asset or assume a liability (“entry price”). We categorize financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique, along with net asset value. The three-level hierarchy for fair value measurement is defined as follows: Level 1 – Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Level 2 – Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads, and yield curves. Level 3 – Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. Net Asset Value (“NAV”) – Certain equity investments are measured using NAV as a practical expedient in determining fair value. In addition, our unconsolidated affiliates (primarily limited partnerships) are primarily accounted for using the equity method of accounting with fair value determined using NAV as a practical expedient. Our carrying value reflects our pro rata ownership percentage as indicated by NAV in the unconsolidated affiliate’s financial statements, which we may adjust if we determine NAV is not calculated consistent with investment company fair value principles. The underlying investments of the unconsolidated affiliates may have significant unobservable inputs, which may include, but are not limited to, comparable multiples and weighted average cost of capital rates applied in valuation models or a discounted cash flow model. Additionally, management inquires quarterly with the general partner to determine whether any credit or other market events have occurred since prior period financial statements to ensure any material events are properly included in current period valuation and investment income. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. In addition to the unobservable inputs, Level 3 fair value investments may include observable components, which are components that are actively quoted or can be validated to market-based sources. Our assets and liabilities measured at fair value on a recurring basis, summarized according to the hierarchy previously described, are as follows (in millions):
Valuation Methodologies Cash and Cash Equivalents The carrying amounts reported in the unaudited Condensed Consolidated Balance Sheets for these instruments approximate fair value. Fixed Maturity, Preferred and Equity Securities We measure the fair value of our securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity, preferred or equity security, and we will then consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach include third-party pricing services, independent broker quotations, or pricing matrices. We use observable and unobservable inputs in our valuation methodologies. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. In addition, market indicators and industry and economic events are monitored and further market data will be acquired when certain thresholds are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. The significant input used in the fair value measurement of equity securities for which the market approach valuation technique is employed is yield for comparable securities. Increases or decreases in the yields would result in lower or higher, respectively, fair value measurements. For broker-quoted only securities, quotes from market makers or broker-dealers are obtained from sources recognized to be market participants. We believe the broker quotes are prices at which trades could be executed based on historical trades executed at broker-quoted or slightly higher prices. We analyze the third-party valuation methodologies and related inputs to perform assessments to determine the appropriate level within the fair value hierarchy. However, we did not adjust prices received from third parties as of March 31, 2024 or December 31, 2023. Certain equity investments are measured using NAV as a practical expedient in determining fair value. Derivative Financial Instruments Our call options, futures contracts, and interest rate swaps can either be exchange traded or over the counter. Exchange traded derivatives typically fall within Level 1 of the fair value hierarchy if there is active trading activity. Two methods are used to value over-the-counter derivatives. When required inputs are available, certain derivatives are valued using valuation pricing models, which represent what we would expect to receive or pay at the balance sheet date if we cancelled or exercised the derivative, or entered into offsetting positions. Valuation models require a variety of inputs, which include the use of market-observable inputs, including interest rate, yield curve volatilities, and other factors. These over-the-counter derivatives are typically classified within Level 2 of the fair value hierarchy as the majority trade in liquid markets, we can verify model inputs and model selection does not involve significant management judgment. When inputs aren’t available for valuation models, certain over-the-counter derivatives are valued using independent broker quotes, which are based on unobservable market data and classified within Level 3. The fair value of the reinsurance-related embedded derivatives in our funds withheld reinsurance agreements are estimated based upon the fair value of the assets supporting the funds withheld from reinsurance liabilities. The fair value of the assets is based on a quoted market price of similar assets (Level 2), and therefore the fair value of the embedded derivative is based on market-observable inputs and classified as Level 2. The fair value measurement of the indexed annuities/IUL embedded derivatives included in contractholder funds is determined through a combination of market observable information and significant unobservable inputs using the option budget method. The market observable inputs are the market value of option and treasury rates. The significant unobservable inputs are the budgeted option cost (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature), surrender rates, mortality multiplier and non-performance spread. The mortality multiplier at March 31, 2024 and December 31, 2023 was applied to the 2012 Individual Annuity mortality tables. Increases or decreases in the market value of an option in isolation would result in a higher or lower, respectively, fair value measurement. Increases or decreases in treasury rates, mortality multiplier, surrender rates, or non-performance spread in isolation would result in a lower or higher fair value measurement, respectively. Generally, a change in any one unobservable input would not directly result in a change in any other unobservable input. Investments in Unconsolidated affiliates We have elected the fair value option (“FVO”) for certain investments in unconsolidated affiliates as we believe this better aligns them with other investments in unconsolidated affiliates that are measured using NAV as a practical expedient in determining fair value. Investments measured using the fair value option are included in Level 3 and the fair value of these investments are determined using either a multiple of the affiliates’ EBITDA, which is derived from market analysis of transactions involving comparable companies, or an adjusted transaction value, which contemplates measures such as EBITDA margins, revenue growth over certain time periods, growth opportunities and marketability. The fair values are based on the affiliates’ financial information. The inputs are usually considered unobservable, as not all market participants have access to this data. Short-term Investments The carrying amounts reported in the unaudited Condensed Consolidated Balance Sheets for these instruments approximate fair value. Other Long-term Investments We hold a fund-linked note, which provides for an additional payment at maturity based on the value of an embedded derivative based on the actual return of a dedicated return fund. Fair value of the embedded derivative is based on an unobservable input, the NAV of the fund at the balance sheet date. The embedded derivative is similar to a call option on the net asset value of the fund with a strike price of zero since we will not be required to make any additional payments at maturity of the fund-linked note in order to receive the NAV of the fund on the maturity date. A Black-Scholes model determines the NAV of the fund as the fair value of the call option regardless of the values used for the other inputs to the option pricing model. The NAV of the fund is provided by the fund manager at the end of each calendar month and represents the value an investor would receive if it withdrew its investment on the balance sheet date. Therefore, the key unobservable input used in the Black-Scholes model is the value of the fund. As the value of the fund increases or decreases, the fair value of the embedded derivative will increase or decrease. See further discussion on the available-for-sale embedded derivative in Note D - Derivative Financial Instruments. The fair value of the credit-linked note is based on a weighted average of a broker quote and a discounted cash flow analysis. The discounted cash flow approach is based on the expected portfolio cash flows and amortization schedule reflecting investment expectations, adjusted for assumptions on the portfolio's default and recovery rates, and the note's discount rate. The fair value of the note is provided by the fund manager at the end of each quarter. Contingent Consideration The contingent consideration liability is measured at fair value using a discounted cash flow model applied using a Monte Carlo simulation of estimated EBITDA at each measurement period and for each simulated path relative to contractual EBITDA milestones. The Monte Carlo simulation utilizes a risk-adjusted discount rate, volatility assumption, and risk-free rates to assess the probability Roar's EBITDA trajectory reaches required milestones for the earn out payments to be made. The discounted cash flow approach applies a company-specific discount rate based on F&G credit profile to future expected earn out payments to calculate the estimated fair value based on the average outcome from the simulation. See further discussion on the contingent consideration in Note N - Commitments and Contingencies. Market Risk Benefits (“MRB”) MRBs are measured at fair value using an attributed fee measurement approach where attributed fees are explicit rider charges collectible from the policyholder used to cover the excess benefits. The fair value is calculated using a risk neutral valuation method and is based on current net amounts at risk, market data, internal and industry experience, and other factors. The balances are computed using assumptions including mortality, full and partial surrender, rider benefit utilization, risk-free rates including non-performance spread and risk margin, market value of options and economic scenarios. Policyholder behavior assumptions are reviewed at least annually, typically in the third quarter, for any revisions. See further discussion on MRBs in Note G - Market Risk Benefits. Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of March 31, 2024 and December 31, 2023, excluding assets and liabilities for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services), are as follows (in millions):
(a) Assets of $9,129 million and liabilities of $19 million for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are excluded from the respective totals in the table above.
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three months ended March 31, 2024 and 2023 (in millions). The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
(b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. (c) The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above. Refer to Note P - Acquisition for more information.
(a)The net transfers out of Level 3 during the three months ended March 31, 2023 were to Level 2. (b)Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans The fair value of mortgage loans is established using a discounted cash flow method based on internal credit rating, maturity and future income. This yield-based approach is sourced from our third-party vendor. The internal ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt service coverage, loan-to-value, quality of tenancy, borrower, and payment record. The inputs used to measure the fair value of our mortgage loans are classified as Level 3 within the fair value hierarchy. Investments in Unconsolidated affiliates The fair value of investments in unconsolidated affiliates is primarily determined using NAV as a practical expedient. Recognition of income and adjustments to the carrying amount are delayed due to the availability of the related financial statements, which are obtained from the general partner typically on a one to three-month delay. Policy Loans (included within Other long-term investments) Policy loans are reported at the unpaid principal balance and are fully collateralized by the cash surrender value of underlying insurance policies. The carrying value of the policy loans approximates the fair value and are classified as Level 3 in the fair value hierarchy. Company Owned Life Insurance Company owned life insurance (“COLI”) is a life insurance program used to finance certain employee benefit expenses. The fair value of COLI is based on net realizable value, which is generally cash surrender value. COLI is classified as Level 3 within the fair value hierarchy. Investment Contracts Investment contracts include deferred annuities (indexed annuities and fixed rate annuities), IUL policies, funding agreements and PRT and immediate annuity contracts without life contingencies. The indexed annuities/IUL embedded derivatives, included in contractholder funds, are excluded as they are carried at fair value. The fair value of the deferred annuities (indexed annuities and fixed rate annuities) and IUL contracts is based on their cash surrender value (i.e., the cost the Company would incur to extinguish the liability) as these contracts are generally issued without an annuitization date. The fair value of funding agreements and PRT and immediate annuity contracts without life contingencies is derived by calculating a new fair value interest rate using the updated yield curve and treasury spreads as of the respective reporting date. The Company is not required to, and has not, estimated the fair value of the liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value. Other Federal Home Loan Bank of Atlanta (“FHLB”) common stock is carried at cost, which approximates fair value. The carrying amount of FHLB common stock represents the value it can be sold back to the FHLB and is classified as Level 2 within the hierarchy. Debt The fair value of the $345 million aggregate principal amount of its 7.95% F&G Notes, $500 million aggregate principal amount of its 7.40% Senior Notes and the $550 million aggregate principal amount of its 5.50% Senior Notes are based on quoted market prices of debt with similar credit risk and tenor. The inputs used to measure the fair value of these debts results in a Level 2 classification within the fair value hierarchy. The carrying value of the revolving credit facility approximates fair value as the rates are comparable to those at which we could currently borrow under similar terms. As such, the fair value of the revolving credit facility was classified as a Level 2 measurement. The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described (in millions).
For investments for which NAV is used, we do not have any significant restrictions in our ability to liquidate our positions in these investments, other than obtaining general partner approval, nor do we believe it is probable a price less than NAV would be received in the event of a liquidation. We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3, or between other levels, at the beginning fair value for the reporting period in which the changes occur. The transfers into and out of Level 3 were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value.
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Our investments in fixed maturity securities have been designated as available-for-sale (“AFS”) and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within AOCI, net of deferred income taxes. Our preferred and equity securities investments are carried at fair value with unrealized gains and losses included in net earnings. The Company’s consolidated investments are summarized as follows (in millions):
As of March 31, 2024 and December 31, 2023, the Company held $69 million and $47 million, respectively, of investments that were non-income producing for a period greater than twelve months. As of March 31, 2024 and December 31, 2023, the Company's accrued interest receivable balance was $ million and $ million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed Consolidated Balance Sheets. In accordance with our FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to us for general purposes. The collateral investments had a fair value of $4,518 million and $4,345 million as of March 31, 2024 and December 31, 2023, respectively. The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below (in millions). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.
Allowance for Current Expected Credit Loss We regularly review AFS securities for declines in fair value that we determine to be credit related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit related, and if so, the magnitude of the credit loss: •The extent to which the fair value is less than the amortized cost basis; •The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); •The financial condition of and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal based upon the issuer's financial strength); •Current delinquencies and nonperforming assets of underlying collateral; •Expected future default rates; •Collateral value by vintage, geographic region, industry concentration or property type; •Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and •Contractual and regulatory cash obligations and the issuer's plans to meet such obligations. We recognize an allowance for current expected credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We measure the credit loss using a discounted cash flow model that utilizes the single best estimate cash flow and the recognized credit loss is limited to the total unrealized loss on the security (i.e., the fair value floor). Cash flows are discounted using the implicit yield of bonds at their time of purchase and the current book yield for asset and mortgage-backed securities as well as variable rate securities. We recognize the expected credit losses in Recognized gains and (losses), net in the unaudited Condensed Consolidated Statements of Operations, with an offset for the amount of non-credit impairments recognized in AOCI. We do not measure a credit loss allowance on accrued investment income because we write-off accrued interest through Interest and investment income when collectability concerns arise. We consider the following in determining whether write-offs of a security’s amortized cost are necessary: •We believe amounts related to securities have become uncollectible; •We intend to sell a security; or •It is more likely than not that we will be required to sell a security prior to recovery. If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and (losses), net in the accompanying unaudited Condensed Consolidated Statements of Operations. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible, an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and (losses), net in the accompanying unaudited Condensed Consolidated Statements of Operations. The remainder of unrealized loss is held in other comprehensive income in the accompanying unaudited Condensed Consolidated Statements of Equity. The activity in the allowance for expected credit losses of AFS securities aggregated by investment category was as follows (in millions):
(a) Purchased credit deteriorated financial assets (“PCD”) PCDs are AFS securities purchased at a discount, where part of that discount is attributable to credit. Credit loss allowances are calculated for these securities as of the date of their acquisition, with the initial allowance serving to increase amortized cost. There were no purchases of PCD AFS securities during the three months ended March 31, 2024 or for the year ended December 31, 2023. The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of March 31, 2024 and December 31, 2023 were as follows (dollars in millions):
We determined the unrealized losses were caused by higher treasury rates compared to those at the time of the FNF acquisition or the purchase of the security if later. For securities in an unrealized loss position as of March 31, 2024, our allowance for expected credit loss was $33 million. We believe the unrealized loss position for which we have not recorded an allowance for expected credit loss as of March 31, 2024 was primarily attributable to interest rate increases, near-term illiquidity, and other macroeconomic uncertainties as opposed to issuer specific credit concerns. Mortgage Loans Our mortgage loans are collateralized by commercial and residential properties. Commercial Mortgage Loans Commercial mortgage loans (“CMLs”) represented approximately 5% of our total investments as of March 31, 2024 and December 31, 2023. The mortgage loans in our investment portfolio, are generally comprised of high quality commercial first lien and mezzanine real estate loans. Mortgage loans are primarily on income producing properties including industrial properties, retail buildings, multifamily properties and office buildings. We diversify our CML portfolio by geographic region and property type to attempt to reduce concentration risk. We continuously evaluate CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt. The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables (dollars in millions):
CMLs segregated by aging of the loans and charge offs (by year of origination) as of March 31, 2024 and December 31, 2023, were as follows, gross of valuation allowances (in millions):
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million. Loan-to-value (“LTV”) and debt service coverage (“DSC”) ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.00 indicates that a property’s operations do not generate sufficient income to cover debt payments. We normalize our DSC ratios to a 25-year amortization period for purposes of our general loan allowance evaluation. The following tables present the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios, gross of valuation allowances at March 31, 2024 and December 31, 2023 (dollars in millions):
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million.
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million. We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At March 31, 2024 and December 31, 2023 we had no CMLs that were delinquent in principal or interest payments as shown in the risk rating exposure table above. Residential Mortgage Loans Residential mortgage loans (“RMLs”) represented approximately 5% of our total investments as of March 31, 2024 and December 31, 2023. Our RMLs are closed end, amortizing loans and 100% of the properties are located in the United States. We diversify our RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances (dollars in millions):
(a) The individual concentration of each state is equal to or less than 5% as of March 31, 2024.
(a) The individual concentration of each state is equal to or less than 5% as of December 31, 2023. RMLs have a primary credit quality indicator of either a performing or nonperforming loan. We define non-performing residential mortgage loans as those that are 90 or more days past due or in non-accrual status, which is assessed monthly. The credit quality of RMLs as of March 31, 2024 and December 31, 2023, was as follows (dollars in millions):
There were no charge offs recorded by RMLs during the three months ended March 31, 2024 or during the year ended December 31, 2023. RMLs segregated by aging of the loans (by year of origination) as of March 31, 2024 and December 31, 2023, were as follows, gross of valuation allowances (in millions):
Immaterial interest income was recognized on non-accrual financing receivables for the three months ended March 31, 2024 and March 31, 2023. It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes 90 days or more delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of March 31, 2024 and December 31, 2023, we had $66 million and $57 million respectively, of mortgage loans that were over 90 days past due, of which $58 million and $41 million were in the process of foreclosure as of March 31, 2024 and December 31, 2023, respectively. Allowance for Expected Credit Loss We estimate expected credit losses for our commercial and residential mortgage loan portfolios using a probability of default/loss given default model. Significant inputs to this model include, where applicable, the loans' current performance, underlying collateral type, location, contractual life, LTV, DSC and Debt to Income or FICO. The model projects losses using a two-year reasonable and supportable forecast and then reverts over a three-year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and (losses), net in the accompanying unaudited Condensed Consolidated Statements of Operations. The allowances for our mortgage loan portfolio are summarized as follows (in millions):
An allowance for expected credit loss is not measured on accrued interest income for commercial mortgage loans as we have a process to write-off interest on loans that enter into non-accrual status (90 days or more past due). Allowances for expected credit losses are measured on accrued interest income for residential mortgage loans and were immaterial for the three months ended March 31, 2024 and March 31, 2023. Interest and Investment Income The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows (in millions):
Interest and investment income is shown net of amounts attributable to certain funds withheld reinsurance agreements which is passed along to the reinsurer in accordance with the terms of these agreements. Interest and investment income attributable to these agreements, and thus excluded from the totals in the table above, was $127 million and $58 million for the three months ended March 31, 2024 and March 31, 2023, respectively. Recognized Gains and (Losses), Net Details underlying Recognized gains and (losses), net reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows (in millions):
(a) Includes net valuation (losses) gains of $(1) million and $5 million for the three months ended March 31, 2024 and March 31, 2023, respectively. (b) Includes net valuation gains of $9 million and $26 million for the three months ended March 31, 2024 and March 31, 2023, respectively. (c) Change in fair value of reinsurance related embedded derivatives is due to activity related to reinsurance treaties. Recognized gains and (losses), net is shown net of amounts attributable to certain funds withheld reinsurance agreements which are passed along to the reinsurer in accordance with the terms of these agreements. Recognized gains and (losses) attributable to these agreements, and thus excluded from the totals in the table above, was $(19) million and $(22) million for the three months ended March 31, 2024 and March 31, 2023, respectively. The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions):
Unconsolidated Variable Interest Entities We own investments in variable interest entities (“VIE”) that are not consolidated within our financial statements. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. VIEs are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While we participate in the benefits from VIEs in which we invest, but do not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under our common control. It is for this reason that we are not considered the primary beneficiary for the VIE investments that are not consolidated. We invest in various limited partnerships and limited liability companies primarily as a passive investor. These investments are primarily in credit funds with a bias towards current income, real assets, or private equity. Limited partnership and limited liability company interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our unaudited Condensed Consolidated Balance Sheets. In addition, we invest in structured investments, which may be VIEs, but for which we are not the primary beneficiary. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities included in fixed maturity securities available for sale on our unaudited Condensed Consolidated Balance Sheets. Our maximum loss exposure with respect to these VIEs is limited to the investment carrying amounts reported in our unaudited Condensed Consolidated Balance Sheets for limited partnerships and the amortized costs of our fixed maturity securities, in addition to any required unfunded commitments (also refer to Note N - Commitments and Contingencies). The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of March 31, 2024 and December 31, 2023 (in millions):
Concentrations Our underlying investment concentrations that exceed 10% of shareholders equity are as follows (in millions):
(a)Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries. (b)Represents special purpose vehicles that hold an underlying minority ownership interest in a single operating liquified natural gas export facility. (c)Investment did not exceed 10% of shareholder’s equity as of March 31, 2024.
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The carrying amounts of derivative instruments, including derivative instruments embedded in indexed annuities and IUL contracts, and reinsurance is as follows (in millions):
The change in fair value of derivative instruments included within Recognized gains and (losses), net in the accompanying unaudited Condensed Consolidated Statements of Operations is as follows (in millions):
Additional Disclosures See descriptions of the fair value methodologies used for derivative financial instruments in Note B - Fair Value of Financial Instruments. Indexed Annuities/IUL Embedded Derivative, Call Options and Futures We have indexed annuities and IUL contracts that permit the holder to elect an interest rate return or an equity index linked component, where interest credited to the contracts is linked to the performance of various equity indices, primarily the S&P 500 Index. This feature represents an embedded derivative under GAAP. The indexed annuities/IUL embedded derivatives are valued at fair value and included in the liability for contractholder funds in the accompanying unaudited Condensed Consolidated Balance Sheets with changes in fair value included as a component of Benefits and other changes in policy reserves in the unaudited Condensed Consolidated Statements of Operations. We purchase derivatives consisting of a combination of call options and futures contracts (specifically for indexed annuity contracts) on the applicable market indices to fund the index credits due to indexed annuity/IUL contractholders. The call options are , , , and year options purchased to match the funding requirements of the underlying policies. On the respective anniversary dates of the indexed policies, the index used to compute the interest credit is reset and we purchase new call options to fund the next index credit. We manage the cost of these purchases through the terms of our indexed annuities/IUL contracts, which permit us to change caps, spreads or participation rates, subject to guaranteed minimums, on each contract’s anniversary date. The change in the fair value of the call options and futures contracts is generally designed to offset the portion of the change in the fair value of the indexed annuities/IUL embedded derivatives related to index performance through the current credit period. The call options and futures contracts are marked to fair value with the change in fair value included as a component of Recognized gains and (losses), net, in the accompanying unaudited Condensed Consolidated Statements of Operations. The change in fair value of the call options and futures contracts includes the gains and losses recognized at the expiration of the instrument term or upon early termination and the changes in fair value of open positions. Other market exposures are hedged periodically depending on market conditions and our risk tolerance. Our indexed annuities/IUL hedging strategy economically hedges the equity returns and exposes us to the risk that unhedged market exposures result in divergence between changes in the fair value of the liabilities and the hedging assets. We use a variety of techniques, including direct estimation of market sensitivities, to monitor this risk daily. We intend to continue to adjust the hedging strategy as market conditions and our risk tolerance changes. Interest Rate Swaps We utilize interest rate swaps to reduce market risks from interest rate changes on our earnings associated with our floating rate investments. With an interest rate swap, we agree with another party to exchange the difference between fixed-rate and floating-rate interest amounts tied to an agreed upon notional principal at specified intervals. The interest rate swaps are marked to fair value with the change in fair value, including accrued interest and related periodic cash flows received or paid, included as a component of Recognized gains and (losses), net, in the accompanying unaudited Condensed Consolidated Statements of Operations. Reinsurance Related Embedded Derivatives F&G cedes certain business on a coinsurance funds withheld basis. Investment results for the assets that support the coinsurance that are segregated within the funds withheld account are passed directly to the reinsurer pursuant to the contractual terms of the reinsurance agreement, which creates embedded derivatives considered to be total return swaps. These total return swaps are not clearly and closely related to the underlying reinsurance contract and thus require bifurcation. The fair value of the total return swaps is based on the change in fair value of the underlying assets held in the funds withheld account. These embedded derivatives are reported in Prepaid expenses and other assets if in a net gain position, or Accounts payable and accrued liabilities, if in a net loss position on the unaudited Condensed Consolidated Balance Sheets and the related gains or losses are reported in Recognized gains and (losses), net, on the unaudited Condensed Consolidated Statements of Operations. Credit Risk We are exposed to credit loss in the event of non-performance by our counterparties on the call options and interest rate swaps and reflect assumptions regarding this non-performance risk in the fair value of these derivatives. The non-performance risk is the net counterparty exposure based on the fair value of the open contracts less collateral held. We maintain a policy of requiring all derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. Information regarding our exposure to credit loss on the call options and interest rate swaps we hold is presented in the following tables (in millions):
(a) An * represents credit ratings that were not available. Collateral Agreements We are required to maintain minimum ratings as a matter of routine practice as part of our over-the-counter derivative agreements on ISDA forms. Under some ISDA agreements, we have agreed to maintain certain financial strength ratings. A downgrade below these levels provides the counterparty under the agreement the right to terminate the open derivative contracts between the parties, at which time any amounts payable by us or the counterparty would be dependent on the market value of the underlying contracts. Our current rating does not allow any counterparty the right to terminate ISDA agreements. In certain transactions, both us and the counterparty have entered into a collateral support agreement requiring either party to post collateral when the net exposures exceed pre-determined thresholds. For all counterparties, except Merrill Lynch, this threshold is set to zero. As of March 31, 2024 and December 31, 2023 counterparties posted $968 million and $775 million, respectively, of collateral of which $740 million and $588 million, respectively, is included in Cash and cash equivalents with an associated payable for this collateral included in Accounts payable and accrued liabilities on the unaudited Condensed Consolidated Balance Sheets. Accordingly, the maximum amount of loss due to credit risk that we would incur if parties to the derivatives failed completely to perform according to the terms of the contracts was $46 million at March 31, 2024 and $39 million at December 31, 2023. We are required to pay counterparties the effective federal funds rate each day for cash collateral posted to F&G for daily mark to market margin changes. We reinvest derivative cash collateral to reduce the interest cost. Cash collateral is invested in overnight investment sweep products, which are included in Cash and cash equivalents in the accompanying unaudited Condensed Consolidated Balance Sheets. We held 379 and 439 futures contracts at March 31, 2024 and December 31, 2023, respectively. The fair value of the futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements). We provide cash collateral to the counterparties for the initial and variation margin on the futures contracts, which is included in Cash and cash equivalents in the accompanying unaudited Condensed Consolidated Balance Sheets. The amount of cash collateral held by the counterparties for such contracts was $4 million at both March 31, 2024 and December 31, 2023.
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Reinsurance |
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Insurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance | Reinsurance F&G reinsures portions of its policy risks with other insurance companies. The use of indemnity reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance liability regardless of whether it is entitled to or able to receive payment from the reinsurer. The portion of risks exceeding F&G's retention limit is reinsured. F&G primarily seeks reinsurance coverage in order to manage loss exposures, to enhance our capital position, to diversify risks and earnings, and to manage new business volume. F&G follows reinsurance accounting when the treaty adequately transfers insurance risk. Otherwise, F&G follows deposit accounting if there is inadequate transfer of insurance risk or if the underlying policy for which risk is being transferred is an investment contract that does not contain insurance risk. The effects of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three months ended March 31, 2024 and March 31, 2023 were as follows (in millions):
Amounts payable or recoverable for reinsurance on paid and unpaid claims are not subject to periodic or maximum limits. No policies issued by F&G have been reinsured with any foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. F&G has not entered into any reinsurance agreements in which the reinsurer may unilaterally cancel any reinsurance for reasons other than non-payment of premiums or other similar credit issues. There have been no significant changes to reinsurance contracts for the three months ended March 31, 2024. The following summarizes our reinsurance recoverable (in millions) as of March 31, 2024 and December 31, 2023:
F&G incurred risk charge fees of $10 million during the three months ended March 31, 2024, and 2023 in relation to reinsurance agreements. Credit Losses F&G estimates expected credit losses on reinsurance recoverables using a probability of default/loss given default model. Significant inputs to the model include the reinsurer's credit risk, expected timing of recovery, industry-wide historical default experience, senior unsecured bond recovery rates, and credit enhancement features. The expected credit loss reserves were as follows (in millions):
Concentration of Reinsurance Risk As indicated above, F&G has a significant concentration of reinsurance risk with third party reinsurers, ASPIDA Life Re Ltd. (“Aspida Re”), Somerset Reinsurance Ltd. (“Somerset”), Wilton Reinsurance (“Wilton Re”) and Everlake Life Insurance Company (“Everlake”) that could have a material impact on our financial position in the event that any of these reinsurers fails to perform its obligations under the various reinsurance treaties. We monitor the financial condition and financial strength of individual reinsurers using public ratings (refer to table below) and ratings reports of individual reinsurers to attempt to reduce the risk of default by such reinsurers. In addition, the risk of non-performance is further mitigated with various forms of collateral or collateral arrangements, including secured trusts, funds withheld accounts and irrevocable letters of credit. We believe that all amounts due from Aspida Re, Somerset, Wilton Re, and Everlake for periodic treaty settlements, net of any applicable credit loss reserves, are collectible as of March 31, 2024. The following table presents financial strength ratings as of March 31, 2024:
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Intangibles |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangibles | Intangibles The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in millions):
The following tables roll forward VOBA by product for the three months ended March 31, 2024 and March 31, 2023 (in millions):
VOBA amortization expense of $39 million and $43 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and March 31, 2023, respectively. The following tables roll forward DAC by product for the three months ended March 31, 2024 and March 31, 2023 (in millions):
DAC amortization expense of $60 million and $35 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and March 31, 2023, respectively, excluding insignificant amounts related to FABN. The following table presents a reconciliation of DAC to the table above which is reconciled to the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in millions):
The following table rolls forward DSI for our indexed annuity products for the three months ended March 31, 2024 and March 31, 2023 (in millions):
DSI amortization expense of $8 million and $4 million was recorded in Depreciation and amortization on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and March 31, 2023, respectively. The cash flow assumptions used to amortize VOBA and DAC were consistent with the assumptions used to estimate the future policy benefits (“FPB”) for life contingent immediate annuities, and will be reviewed and unlocked, if applicable, in the same period as those balances. For nonparticipating traditional life contracts, the VOBA amortization is straight-line, without the use of cash flow assumptions. For indexed annuity contracts, the cash flow assumptions used to amortize VOBA, DAC, and DSI were consistent with the assumptions used to estimate the value of the embedded derivative and MRBs, and will be reviewed and unlocked, if applicable, in the same period as those balances. For fixed rate annuities and IUL the cash flow assumptions used to amortize VOBA, DAC and DSI reflect the Company’s best estimates for policyholder behavior, consistent with the development of assumptions for indexed annuities and immediate annuities. We review cash flow assumptions annually, generally in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuity (indexed annuity and fixed rate annuity) and IUL products, including surrender rates, partial withdrawal rates, mortality improvement, premium persistency, and option budgets. All updates to these assumptions brought us more in line with our company and overall industry experience since the prior assumption update. The following table rolls forward the customer relationship intangible acquired in the Roar acquisition on January 2, 2024, (in millions). For more information, refer to Note P - Acquisition.
The following table shows the estimated amortization expense in future fiscal periods for customer relationship intangibles and VOBA for the in-force liabilities as of March 31, 2024 (in millions):
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Market Risk Benefits |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market Risk Benefits | Market Risk Benefits The following table presents the balances of and changes in MRBs associated with indexed annuities and fixed rate annuities for the three months ended March 31, 2024 and the year ended December 31, 2023 (in millions):
The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRBs amounts in the unaudited Condensed Consolidated Balance Sheets (in millions):
The net MRB liability increased for the three months ended March 31, 2024, primarily as a result of collection of attributed fees and interest accrual as well as new MRB reserves for contracts issued within the period. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections. For the three months ended March 31, 2024, notable changes made to the inputs to the fair value estimates of MRBs calculations included an increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs. In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. The net MRB liability increased for the year ended December 31, 2023, primarily as a result of collection of attributed fees and interest accrual as well as actual policyholder behavior different than expected and changes in assumptions as discussed below. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections. For the year ended December 31, 2023, notable changes made to the inputs to the fair value estimates of MRBs calculations included a significant increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs; and F&G’s credit spread decreased, lead to a corresponding unfavorable change in the MRBs associated with both indexed annuities and fixed rate annuities. In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuities (indexed annuities and fixed rate annuities) with MRBs including surrender rates, partial withdrawal rates, mortality improvement, and option budgets. All updates to these assumptions brought us more in line with our Company and overall industry experience since the prior assumption update. These updates, in total, led to an increase in the net MRB liability during the year ended December 31, 2023. Contractholder FundsThe following tables summarize balances of and changes in contractholder funds’ account balances (in millions):
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance.
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance. The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the unaudited Condensed Consolidated Balance Sheets (in millions):
Annually, typically in the third quarter, we review assumptions associated with reserves for policy benefits and product guarantees. For the three months ended March 31, 2024, based on increases in interest rates and pricing changes, we updated certain indexed annuity assumptions used to calculate the fair value of the embedded derivative component within contractholder funds and also aligned reserves to actual policyholder behavior. These changes resulted in an increase in total benefits and other changes in policy reserves of approximately $57 million for the three months ended March 31, 2024. The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums (in millions):
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Income Taxes |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The effective tax rate for the three months ended March 31, 2024 was 18%. The effective tax rate for the three months ended March 31, 2023 was 4%. The effective tax rate on pre-tax income for the three months ended March 31, 2024 differs from the U.S. Federal statutory rate of 21% primarily due to favorable permanent adjustments, including low income housing tax credits (“LIHTC”), the dividends received deduction (“DRD”), and company owned life insurance (“COLI”). The effective tax rate on pre-tax income for the three months ended March 31, 2023 differed from the U.S. Federal statutory rate of 21% primarily due to the valuation allowance recorded on capital deferred tax assets for U.S. Life companies, partially offset by favorable permanent adjustments, including LIHTC, DRD, and COLI. As of March 31, 2024, the Company had a partial valuation allowance of $86 million against its net deferred tax assets of $431 million. As of December 31, 2023, the Company had a partial valuation allowance of $85 million against its net deferred tax assets of $473 million. There was a $1 million increase in the valuation allowance for the three months ended March 31, 2024. The valuation allowance consisted of a full valuation allowance on the unrealized capital loss deferred tax assets for F&G Life Re, F&G Cayman Re, and the US Non-life companies, a full valuation allowance on the foreign deferred tax assets on F&G Life Re, and a partial valuation allowance on the capital loss deferred tax assets on the U.S. life insurance companies. The valuation allowance is reviewed quarterly and will be maintained until there is sufficient positive evidence, if any, to support a release. At each reporting date, management considers new evidence, both positive and negative, that could impact the future realization of deferred tax assets. Management will consider a release of the valuation allowance once there is sufficient positive evidence that it is more likely than not that the deferred tax assets will be realized. All other deferred tax assets are more likely than not to be realized based on expectations as to our future taxable income and considering all other available evidence, both positive and negative. The Company makes certain investments in limited partnerships, which invest in affordable housing projects that qualify for the Low-Income Housing Tax Credit (“LIHTC”). The Company’s investment in the funds is amortized through income tax expense on the unaudited Condensed Consolidated Statements of Operations using the proportional amortization method. The tax credits and other benefits recognized are included in the net change in income taxes on the unaudited Condensed Consolidated Statement of Cash Flows. The following table presents the impacts of the LIHTC investments included in income tax expense on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 (in millions):
At March 31, 2024 and December 31, 2023, LIHTC investments included in Prepaid expenses and other assets on the unaudited Condensed Consolidated Balance Sheets totaled $120 million and $108 million, respectively. The Inflation Reduction Act of 2022 (the “IRA”) was signed into law on August 16, 2022. Among other changes, the IRA introduced a 15% corporate alternative minimum tax (“CAMT”) on adjusted financial statement income and a 1% excise tax on treasury stock repurchases. These provisions were effective January 1, 2023. For purposes of calculating adjusted financial statement income, the Company is included in the controlled group of FNF, its parent company. Though the Company is subject to the minimum tax, the Company does not expect to be in a perpetual CAMT position. The life companies will join the consolidated tax return group with FNF and file a life/non-life consolidated return once the five-year waiting period has completed in 2026, which should strengthen that position as FNF is not anticipating owing CAMT on its future returns. As a result, the Company has assessed that there is no material impact of CAMT to tax for the three months ended March 31, 2024. The Corporate Income Tax Act of 2023 was passed in Bermuda on December 27, 2023. The CIT will commence on January 1, 2025 and will apply a statutory rate of 15% to the taxable income or loss of Bermuda tax resident entities and permanent establishments. F&G Life Re, a 953(d) company with no or minimal US permanent tax differences, is not expected to owe any Bermuda CIT due to the foreign tax credit. As a result, the Company has assessed that there is no material impact of the CIT to tax for the three months ended March 31, 2024.
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Contractholder Funds |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractholder Funds | Market Risk Benefits The following table presents the balances of and changes in MRBs associated with indexed annuities and fixed rate annuities for the three months ended March 31, 2024 and the year ended December 31, 2023 (in millions):
The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRBs amounts in the unaudited Condensed Consolidated Balance Sheets (in millions):
The net MRB liability increased for the three months ended March 31, 2024, primarily as a result of collection of attributed fees and interest accrual as well as new MRB reserves for contracts issued within the period. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections. For the three months ended March 31, 2024, notable changes made to the inputs to the fair value estimates of MRBs calculations included an increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs. In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. The net MRB liability increased for the year ended December 31, 2023, primarily as a result of collection of attributed fees and interest accrual as well as actual policyholder behavior different than expected and changes in assumptions as discussed below. These increases were partially offset by the effects of market related movements, including the impacts of higher risk-free rates and increases in the equity market related projections. For the year ended December 31, 2023, notable changes made to the inputs to the fair value estimates of MRBs calculations included a significant increase in risk-free rates leading to a favorable change in the MRBs associated with indexed annuities and fixed rate annuities; increases in the equity market related projections resulted in a decrease in the net amount at risk associated with indexed annuities, leading to a favorable change in the value of the associated MRBs; and F&G’s credit spread decreased, lead to a corresponding unfavorable change in the MRBs associated with both indexed annuities and fixed rate annuities. In addition, the cash flow assumptions used to calculate MRBs reflect the Company’s best estimates for policyholder behavior. We review cash flow assumptions annually, generally in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised several assumptions relating to our deferred annuities (indexed annuities and fixed rate annuities) with MRBs including surrender rates, partial withdrawal rates, mortality improvement, and option budgets. All updates to these assumptions brought us more in line with our Company and overall industry experience since the prior assumption update. These updates, in total, led to an increase in the net MRB liability during the year ended December 31, 2023. Contractholder FundsThe following tables summarize balances of and changes in contractholder funds’ account balances (in millions):
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance.
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance. The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the unaudited Condensed Consolidated Balance Sheets (in millions):
Annually, typically in the third quarter, we review assumptions associated with reserves for policy benefits and product guarantees. For the three months ended March 31, 2024, based on increases in interest rates and pricing changes, we updated certain indexed annuity assumptions used to calculate the fair value of the embedded derivative component within contractholder funds and also aligned reserves to actual policyholder behavior. These changes resulted in an increase in total benefits and other changes in policy reserves of approximately $57 million for the three months ended March 31, 2024. The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums (in millions):
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Future Policy Benefits |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Policy Benefits | Future Policy Benefits The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts (in millions):
The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts (in millions):
The following tables summarize balances and changes in the liability for DPL for limited-payment contracts (in millions):
The following table reconciles the net FPB to the FPB in the unaudited Condensed Consolidated Balance Sheets (in millions). The DPL for Immediate Annuities and PRT is presented together with the FPB in the unaudited Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below:
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts (in millions):
The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Operations (in millions):
(a) Included in Life insurance premiums and other fees on the unaudited Condensed Consolidated Statements of Operations. (b) Included in Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) on the unaudited Condensed Consolidated Statements of Operations. The following table presents the weighted-average interest rate:
The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB:
Premium deficiency testing F&G conducts annual premium deficiency testing for its long-duration contracts except for the FPB for nonparticipating traditional and limited-payment contracts. F&G also conducts annual premium deficiency testing for the VOBA of all long-duration contracts. Premium deficiency testing is performed by reviewing assumptions used to calculate the insurance liabilities and determining whether the sum of the existing contract liabilities and the present value of future gross premiums is sufficient to cover the present value of future benefits to be paid to or on behalf of policyholders and settlement costs and recover unamortized present value of future profits. Anticipated investment income, based on F&G’s experience, is considered when performing premium deficiency testing for long-duration contracts. During 2024, F&G was not required to establish any additional liabilities as a result of premium deficiency testing. F&G made changes to assumptions during the three months ended March 31, 2024 and the year ended December 31, 2023. Significant assumption inputs used in the calculation of our FPB are described below. Refer to the tables above for further details on changes to our FPB. Traditional life Significant assumption inputs to the calculation of the FPB for traditional life include mortality, lapses (including lapses due to nonpayment of premium and surrenders for cash surrender value), and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2023, F&G undertook a review of all significant assumptions and revised the lapse assumption, resulting in a slight decrease to the FPB. There have been no other significant changes. Market data that underlies current discount rates was updated in 2024 from that utilized in 2023 resulting in increased discount rates that drove a moderate decrease to the FPB. Immediate annuities (life contingent) Significant assumption inputs to the calculation of the FPB for immediate annuities (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2023, F&G undertook a review of the significant cash flow assumptions and did not make any changes to mortality. Market data that underlies current discount rates was updated in 2024 from that utilized in 2023, resulting in increased discount rates that drove a material decrease to the FPB. PRT (life contingent) Significant assumption inputs to the calculation of the FPB for PRT (life contingent) include mortality and discount rates (both accretion and current). We review the cash flow assumptions annually, typically in the third quarter. In 2023, F&G undertook a review of the significant cash flow assumptions and did not make any changes to mortality. Market data that underlies current discount rates was updated in 2024 from 2023 resulting in increased discount rates that drove a material decrease to the FPB.
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Accounts Payable and Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities As of March 31, 2024 and December 31, 2023, the total unearned revenue liabilities (“URL”) balance of $301 million and $270 million, respectively, is included in Accounts payable and accrued liabilities on the unaudited Condensed Consolidated Balance Sheets. The following table presents a reconciliation of Accounts payable and accrued liabilities to the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in millions):
The following tables roll forward URL for our universal life product for the three months ended March 31, 2024 and March 31, 2023 (in millions):
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Notes Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | Notes Payable The carrying amounts of notes payable are summarized as follows (in millions):
Revolving Credit Facility - On February 16, 2024, F&G entered into an amendment and extension of its existing senior unsecured revolving credit agreement (the “Credit Agreement”). The maturity date of the Credit Agreement was extended from November 22, 2025 to November 22, 2027. Total borrowing availability increased from $665 million to $750 million. Pricing and advance rates remain unchanged. Financial covenants also remain essentially the same. At March 31, 2024, the remaining borrowing availability was $385 million. The average variable interest rate on the revolver was 7.09% and 7.11% for the three months ended March 31, 2024 and for the year ended December 31, 2023, respectively. Covenants - The Credit Agreement and the indentures governing the 7.95% F&G Notes, the 7.40% F&G Notes and the 5.50% F&G Notes impose certain operating and financial restrictions, including financial covenants, on F&G. As of March 31, 2024, we were in compliance with all covenants. Interest Expense - Amortization of deferred issuance costs and purchase premiums are recognized as components of interest expense. Interest expense on F&G’s outstanding notes payable for the three months ended March 31, 2024 and 2023 was as follows (in millions):
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities (in millions):
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Contingent Consideration Under the terms of the purchase agreement for Roar, we have agreed to make cash payments of up to approximately $90 million over a three-year period upon the achievement by Roar of certain EBITDA milestones. The contingent consideration is recorded at fair value in Accounts payable and accrued liabilities on the unaudited Condensed Consolidated Balance Sheets. Refer to Note P - Acquisition for more information on the Roar purchase and refer to Note B - Fair Value of Financial Instruments for more information regarding the fair value of the contingent consideration. Legal and Regulatory Contingencies In the ordinary course of business, we are involved in various pending and threatened litigation matters related to our operations, some of which include claims for punitive or exemplary damages. Like other companies, our ordinary course litigation includes a number of class action and purported class action lawsuits, which make allegations related to aspects of our operations. We believe that no actions, other than the matters discussed below, if any, depart from customary litigation incidental to our business. We review lawsuits and other legal and regulatory matters (collectively “legal proceedings”) on an ongoing basis when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, management bases its decision on its assessment of the ultimate outcome assuming all appeals have been exhausted. For legal proceedings in which it has been determined that a loss is both probable and reasonably estimable, a liability based on known facts and that represents our best estimate has been recorded. Our accrual for legal and regulatory matters was insignificant as of March 31, 2024 and December 31, 2023. We do not consider (i) the amounts we have currently recorded for all legal proceedings in which it has been determined that a loss is both probable and reasonably estimable and (ii) reasonably possible losses for all pending legal proceedings to be material to our financial statements either individually or in the aggregate. Actual losses may materially differ from the amounts recorded and the ultimate outcome of our pending legal proceedings is generally not yet determinable. While some of these matters could be material to our operating results or cash flows for any particular period if an unfavorable outcome results, at present we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition. In August 2020, a lawsuit styled, In the Matter of FGL Holdings, was filed in the Grand Court of the Cayman Islands related to FNF's acquisition of F&G where dissenting shareholders, Kingfishers LP, Kingstown 1740 Fund LP, Kingstown Partners II LP, Kingstown Partners Master Ltd., and Ktown LP, asserted statutory appraisal rights relative to their ownership of 12,000,000 shares of F&G stock. They sought a judicial determination of the fair value of their shares of F&G stock as of the date of valuation under the law of the Cayman Islands, together with interest and legal costs. On October 5, 2022, the Grand Court of the Cayman Islands decided in favor of F&G. The dissenting shareholders failed to appeal the fair value order, and its appeal period expired on October 19, 2022. On April 19, 2023, the Grand Court of the Cayman Islands determined that the dissenting shareholders should pay F&G's Cayman Islands legal expenses and discovery costs relating to the lawsuit, by way of interim payment of $4 million with the balance to be determined after assessment. We collected the interim payment in 2023 and an additional payment of approximately $2 million in April 2024. The matter is now concluded. F&G is a defendant in two putative class action lawsuits related to the alleged compromise of certain of F&G’s customers’ personal information resulting from an alleged vulnerability in the MOVEit file transfer software. F&G’s vendor, Pension Benefit Information, LLC (“PBI”), used the MOVEit software in the course of providing audit and address research services to F&G and many other corporate customers. Miller v. F&G, No. 4:23-cv-00326 (“Miller”), was filed against F&G in the Southern District of Iowa on August 31, 2023. Miller alleges that he is a F&G customer whose information was impacted in the MOVEit incident and brings common law tort and implied contract claims. Plaintiff seeks injunctive relief and damages. Cooper v. Progress Software Corp., No. 1:23-cv-12067 (“Cooper”), was filed against F&G and five other defendants in the District of Massachusetts on September 7, 2023. Cooper also alleges that he is a F&G customer and brings similar common law tort claims and alleges claims as a purported third-party beneficiary of an alleged contract. Plaintiff seeks declaratory and injunctive relief and damages. Well over 150 similar lawsuits have been filed against other entities impacted by the MOVEit incident including a number of such lawsuits related to PBI’s use of MOVEit. On October 4, 2023, the U.S. Judicial Panel on Multidistrict Litigation created a multidistrict litigation (“MDL”) pursuant to 28 U.S.C. § 1407 to handle all litigation brought by individuals whose information was potentially compromised in connection with the alleged MOVEit vulnerability. Both Miller and Cooper have been transferred to the MDL. At this time, F&G does not believe the incident will have a material impact on its business, operations, or financial results. From time to time, we receive inquiries and requests for information from state insurance departments, attorneys general and other regulatory agencies about various matters relating to our business. Sometimes these take the form of civil investigative demands or subpoenas. We cooperate with all such inquiries and we have responded to or are currently responding to inquiries from multiple governmental agencies. From time to time, we are assessed fines for violations of regulations or other matters or enter into settlements with such authorities, which may require us to pay fines or claims or take other actions. We do not anticipate such fines and settlements, either individually or in the aggregate, will have a material adverse effect on the Company’s business, operations, or financial results. Commitments We have unfunded commitments as of March 31, 2024 based upon the timing of when investments and agreements are executed or signed compared to when the actual investments and agreements are funded or closed. Some investments require that funding occur over a period of months or years. A summary of unfunded commitments by commitment type as of March 31, 2024 is included below (in millions):
Concurrent with the Roar purchase agreement, we executed a separate loan agreement with the sellers of Roar for us to lend up to $40 million. The loan agreement matures 60 days following the third anniversary of the first advance date. There was no balance outstanding as of March 31, 2024 and the unfunded loan commitment is included in the unfunded commitments table above in the “Other assets” line item. Refer to Note P - Acquisition for more information on the Roar acquisition.
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Insurance Subsidiary Financial Information and Regulatory Matters |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Subsidiary Financial Information and Regulatory Matters | Insurance Subsidiary Financial Information and Regulatory Matters Our U.S. insurance subsidiaries, FGL Insurance, FGL NY Insurance, Raven Re and Corbeau Re file financial statements with state insurance regulatory authorities and, with the exception of Raven Re, with the National Association of Insurance Commissioners (“NAIC”) that are prepared in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by such authorities, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the NAIC as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect VOBA, DAC, and DSI, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contractholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Accordingly, SAP operating results and SAP capital and surplus may differ substantially from amounts reported in the GAAP basis financial statements for comparable items. Our non-U.S. insurance subsidiaries, F&G Life Re Ltd (Bermuda) and F&G Cayman Re Ltd (“F&G Cayman Re”), file financial statements with their respective regulators. U.S. Companies Our principal insurance subsidiaries' statutory financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of our wholly owned insurance subsidiaries as of March 31, 2024 and December 31, 2023, were as follows (in millions):
Non-U.S. Companies Net income and capital and surplus of our wholly owned Bermuda and Cayman Islands regulated insurance subsidiaries under U.S. GAAP were as follows (in millions):
There have been no material changes to the prescribed and permitted practices for our U.S. insurance subsidiaries, which were detailed in our Annual Report on Form 10-K, and no significant changes in the regulatory status of our insurance subsidiaries as of March 31, 2024. The prescribed and permitted statutory accounting practices have no impact on our unaudited Condensed Consolidated Financial Statements, which are prepared in accordance with GAAP.
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Acquisition |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition | Acquisition Owned Distribution - Acquisition of Roar Joint Venture, LLC On January 2, 2024, F&G acquired a 70% majority ownership stake in the equity of Roar Joint Venture, LLC (“Roar”). Roar wholesales life insurance and annuity products to banks and broker dealers through a network of agents. Total initial consideration is comprised of approximately $269 million of cash and $48 million of contingent consideration. Under the terms of the purchase agreement, the Company has agreed to make cash payments of up to approximately $90 million over a three-year period upon the achievement of certain EBITDA milestones of Roar. The initial purchase price is as follows (in millions):
The following table summarizes the fair value amounts recognized for the assets acquired and liabilities assumed as of the acquisition date (dollars in millions):
The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the Roar acquisition consist of the following (dollars in millions):
Goodwill consists primarily of intangible assets that do not qualify for separate recognition, such as the assembled workforce and synergies between the entities. The goodwill recorded is not expected to be deductible for tax purposes. Roars’s revenues of $23 million and net earnings attributable to F&G of $3 million are included in the unaudited Condensed Consolidated Statement of Operations for the three months ended March 31, 2024. Unaudited Supplemental Pro-Forma Financial Results For comparative purposes, selected unaudited pro-forma consolidated results of operations of F&G for the three months ended March 31, 2023 are presented below (in millions). Unaudited pro-forma results presented assume the acquisition of Roar occurred as of January 1, 2023 and are not intended to represent or be indicative of actual or future results of operations.
Amounts reflect certain pro forma adjustments to revenue and net earnings attributable to F&G shareholders that were directly attributable to the acquisition, primarily reflecting the elimination of intercompany activity between the entities.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted EPS (share amounts in thousands):
Under applicable accounting guidance, companies in a loss position are required to use basic weighted average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our net loss for the three months ended March 31, 2023, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of 120 thousand restricted shares would have been antidilutive to the calculation. If we had not incurred a net loss for the three months ended March 31, 2023, dilutive potential common shares would have been 125 million. Restricted stock, options or other instruments, which provide the ability to acquire shares of our common stock that are antidilutive are excluded from the computation of diluted earnings per share. For the three months ended March 31, 2023, the diluted earnings per share calculation excluded the weighted average effect of 120 thousand restricted stock units issued under the 2022 F&G Omnibus Plan due to their antidilutive effect.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
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Mar. 31, 2024 |
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Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 115 | $ (195) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Financial Statements (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | The financial information in this report presented for interim periods is unaudited and includes the accounts of F&G Annuities & Life, Inc. (“FGAL”) and its subsidiaries (collectively, “we”, “us”, “our”, the "Company" or “F&G”) prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments made were of a normal, recurring nature. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023, filed on February 29, 2024.
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Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”), as presented on the unaudited Condensed Consolidated Statements of Operations, is computed by dividing net earnings available to common shareholders in a given period by the weighted average number of common shares outstanding during such period. Net earnings available to common shareholders is net earnings adjusted for net earnings attributable to noncontrolling interests, preferred stock dividends, including preferred stock dividends declared. In periods when earnings are positive, diluted EPS is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding plus assumed conversions of potentially dilutive securities. For periods when we recognize a net loss, diluted loss per share is equal to basic loss per share as the impact of assumed conversions of potentially dilutive securities is considered to be antidilutive. Certain shares of restricted stock, using the treasury stock method and, as of January 12, 2024, the FNF Preferred Stock, using the if-converted method, are treated as common share equivalents for purposes of calculating diluted earnings per share for periods in which the effect is dilutive. The if- converted method assumes that the convertible preferred stock converts into common stock at the beginning of the period or date of issuance, if later.
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Comprehensive Income (Loss) | Comprehensive Income (Loss) We report comprehensive income (loss) in accordance with GAAP on the unaudited Condensed Consolidated Statements of Comprehensive Income (Loss). Total comprehensive income is defined as all changes in shareholders' equity during a period, other than those resulting from investments by and distributions to shareholders. While total comprehensive income (loss) is the activity in a period and is largely driven by net earnings in that period, Accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income, net of tax, as of the balance sheet date. Amounts reclassified to net earnings relate to the realized gains (losses) on our investments and other financial instruments, excluding investments in unconsolidated affiliates, and are included in Recognized gains and (losses), net on the unaudited Condensed Consolidated Statements of Operations.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Pronouncements In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-02, Accounting for Investments in Tax Credit Structure Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force). The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. We adopted this standard on January 1, 2024, as required, and there was no material impact to our unaudited Condensed Consolidated Financial Statements. Refer to Note H - Income Taxes for further information. Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expense categories that are regularly provided to the CODM and included in each reported measure of a segment’s profit or loss. In addition, the amendments enhance interim disclosure requirements that are currently required annually, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. Additionally, the amendments require that entities with a single reportable segment must now provide all the disclosures previously required under Topic 280. The amendments in this update are incremental to the current requirements of Topic 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The enhanced segment disclosure requirements apply retrospectively to all prior periods presented in the financial statements. The significant segment expense and other segment item amounts disclosed in prior periods shall be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments in this update are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted, and the updates must be applied retrospectively to all periods presented in the financial statements. We do not expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update enhance the transparency of the income tax disclosures by expanding on the disclosures required annually. The amendments require entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes, in addition to providing details about the reconciling items in some categories if above a quantitative threshold. Additionally, the amendments require annual disclosure of income taxes paid (net of refunds received) disaggregated by jurisdiction based on a quantitative threshold. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis, and retrospective application is permitted. We do not expect to early adopt this standard and are in the process of assessing its impact on our disclosures upon adoption.
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Basis of Financial Statements (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in the balance of Other comprehensive income (loss) for the three months ended March 31, 2024 and 2023 by component are as follows (in millions).
(a) Net of income tax benefit of $4 million for the three months ended March 31, 2024
(a) Net of $11 million of income tax benefit for the three months ended March 31, 2023
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Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Our assets and liabilities measured at fair value on a recurring basis, summarized according to the hierarchy previously described, are as follows (in millions):
The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described (in millions).
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Fair Value Measurement Inputs and Valuation Techniques | Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of March 31, 2024 and December 31, 2023, excluding assets and liabilities for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services), are as follows (in millions):
(a) Assets of $9,129 million and liabilities of $19 million for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are excluded from the respective totals in the table above.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three months ended March 31, 2024 and 2023 (in millions). The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
(b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. (c) The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above. Refer to Note P - Acquisition for more information.
(a)The net transfers out of Level 3 during the three months ended March 31, 2023 were to Level 2. (b)Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three months ended March 31, 2024 and 2023 (in millions). The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
(b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability. (c) The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above. Refer to Note P - Acquisition for more information.
(a)The net transfers out of Level 3 during the three months ended March 31, 2023 were to Level 2. (b)Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
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Investments (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Investments | The Company’s consolidated investments are summarized as follows (in millions):
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Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below (in millions). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.
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Activity in Allowance for Credit Loses of Available-for-sale Securities Aggregated by Investment Category | The activity in the allowance for expected credit losses of AFS securities aggregated by investment category was as follows (in millions):
(a) Purchased credit deteriorated financial assets (“PCD”)
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Fair Value and Gross Unrealized Losses of Available-for-sale Securities | The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of March 31, 2024 and December 31, 2023 were as follows (dollars in millions):
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Schedule of Distribution of CMLs, Gross Valuation by Property Type and Geographic Region | The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables (dollars in millions):
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Loans Segregated by Risk Rating Exposure | CMLs segregated by aging of the loans and charge offs (by year of origination) as of March 31, 2024 and December 31, 2023, were as follows, gross of valuation allowances (in millions):
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million. RMLs segregated by aging of the loans (by year of origination) as of March 31, 2024 and December 31, 2023, were as follows, gross of valuation allowances (in millions):
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Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios | The following tables present the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios, gross of valuation allowances at March 31, 2024 and December 31, 2023 (dollars in millions):
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million.
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Distribution of Residential Mortgage Loans by State | The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances (dollars in millions):
(a) The individual concentration of each state is equal to or less than 5% as of March 31, 2024.
(a) The individual concentration of each state is equal to or less than 5% as of December 31, 2023.
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Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming | The credit quality of RMLs as of March 31, 2024 and December 31, 2023, was as follows (dollars in millions):
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Nonaccrual Loans by Amortized Cost | Non-accrual loans by amortized cost as of March 31, 2024 and December 31, 2023, were as follows (in millions):
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Allowance for Expected Credit Losses on Loans | The allowances for our mortgage loan portfolio are summarized as follows (in millions):
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Schedule of Sources of Net Investment Income Reported | The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows (in millions):
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Recognized Gains (Losses) Net | Details underlying Recognized gains and (losses), net reported on the accompanying unaudited Condensed Consolidated Statements of Operations were as follows (in millions):
(a) Includes net valuation (losses) gains of $(1) million and $5 million for the three months ended March 31, 2024 and March 31, 2023, respectively. (b) Includes net valuation gains of $9 million and $26 million for the three months ended March 31, 2024 and March 31, 2023, respectively. (c) Change in fair value of reinsurance related embedded derivatives is due to activity related to reinsurance treaties.
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Proceeds from Sale of Fixed Maturity Available-for-sale Securities | The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions):
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Schedule of Carrying Value and Maximum Loss Exposure, Unconsolidated VIEs | The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of March 31, 2024 and December 31, 2023 (in millions):
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Schedules of Investment Concentrations | Our underlying investment concentrations that exceed 10% of shareholders equity are as follows (in millions):
(a)Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries. (b)Represents special purpose vehicles that hold an underlying minority ownership interest in a single operating liquified natural gas export facility. (c)Investment did not exceed 10% of shareholder’s equity as of March 31, 2024.
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Derivative Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount of Derivative Instruments | The carrying amounts of derivative instruments, including derivative instruments embedded in indexed annuities and IUL contracts, and reinsurance is as follows (in millions):
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Change in Fair Value of Derivative Instruments | The change in fair value of derivative instruments included within Recognized gains and (losses), net in the accompanying unaudited Condensed Consolidated Statements of Operations is as follows (in millions):
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Schedule of Exposure to Credit Loss on Call Options | Information regarding our exposure to credit loss on the call options and interest rate swaps we hold is presented in the following tables (in millions):
(a) An * represents credit ratings that were not available.
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Reinsurance (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effect of Reinsurance on Premiums Earned and Benefits Incurred and Reserve Changes Table | The effects of reinsurance on net premiums earned and net benefits incurred (benefits paid and reserve changes) for the three months ended March 31, 2024 and March 31, 2023 were as follows (in millions):
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Schedule of Reinsurance Recoverable | The following summarizes our reinsurance recoverable (in millions) as of March 31, 2024 and December 31, 2023:
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Reinsurance Recoverable, Allowance for Credit Loss | The expected credit loss reserves were as follows (in millions):
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Schedule Of Credit Ratings Of Principal Reinsurers | The following table presents financial strength ratings as of March 31, 2024:
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Intangibles (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in millions):
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Schedule of Indefinite-Lived Intangible Assets | The following table reconciles to Other intangible assets, net, on the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in millions):
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Rollforward of Value of Business Acquired | The following tables roll forward VOBA by product for the three months ended March 31, 2024 and March 31, 2023 (in millions):
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Rollforward of Deferred Policy Acquisition Costs | The following tables roll forward DAC by product for the three months ended March 31, 2024 and March 31, 2023 (in millions):
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Schedule of Reconciliation of Deferred Policy Acquisition Cost to Statement of Financial Position | The following table presents a reconciliation of DAC to the table above which is reconciled to the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in millions):
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Rollforward of Deferred Sale Inducement Cost | The following table rolls forward DSI for our indexed annuity products for the three months ended March 31, 2024 and March 31, 2023 (in millions):
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Finite-Lived Intangible Assets Rollforward Schedule | The following table rolls forward the customer relationship intangible acquired in the Roar acquisition on January 2, 2024, (in millions). For more information, refer to Note P - Acquisition.
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Estimated Amortization Expense in Future Periods for Customer Relationship Intangibles and VOBA | The following table shows the estimated amortization expense in future fiscal periods for customer relationship intangibles and VOBA for the in-force liabilities as of March 31, 2024 (in millions):
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Market Risk Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances and Changes in Market Risk Benefit | The following table presents the balances of and changes in MRBs associated with indexed annuities and fixed rate annuities for the three months ended March 31, 2024 and the year ended December 31, 2023 (in millions):
The following table reconciles MRBs by amounts in an asset position and amounts in a liability position to the MRBs amounts in the unaudited Condensed Consolidated Balance Sheets (in millions):
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impacts of the LIHTC Investments | The following table presents the impacts of the LIHTC investments included in income tax expense on the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 (in millions):
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Contractholder Funds (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Balances and Changes in Contractholder Funds | The following tables summarize balances of and changes in contractholder funds’ account balances (in millions):
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance.
(a) Contracts included in the contractholder funds are generally charged a premium and/or monthly assessments on the basis of the account balance. (b) FABN and FHLB are considered funding agreements that are investment contracts which follow the interest method of accounting, and therefore are not subject to ASU 2018-12 disclosure requirements. However, the Company has elected to present the liability for these agreements within the disaggregated roll forward as we believe it will provide meaningful information for users of the financials. (c) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. (d) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (e) These amounts are gross of reinsurance.
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Schedule of Reconciliation of Policyholder Account Balances to Statement of Financial Position | The following table reconciles contractholder funds’ account balances to the contractholder funds liability in the unaudited Condensed Consolidated Balance Sheets (in millions):
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Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following tables present the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums (in millions):
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Future Policy Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Balances and Changes in the Present Value of Expected Net Premiums and Present Value FPB | The following table summarizes balances and changes in the present value of expected net premiums and the present value of the expected FPB for nonparticipating traditional contracts (in millions):
The following tables summarize balances and changes in the present value of the expected FPB for limited-payment contracts (in millions):
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Summary of Changes in Liability for Deferred Profit Liability | The following tables summarize balances and changes in the liability for DPL for limited-payment contracts (in millions):
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Schedule of Reconciliation of Future Policy Benefits to Statement of Financial Position | The following table reconciles the net FPB to the FPB in the unaudited Condensed Consolidated Balance Sheets (in millions). The DPL for Immediate Annuities and PRT is presented together with the FPB in the unaudited Condensed Consolidated Balance Sheets and has been included as a reconciling item in the table below:
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Schedule of Liability for Future Policy Benefit Expected Future Policy Benefit Undiscounted Before Reinsurance | The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts (in millions):
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Revenue from External Customers by Products and Services | The following table summarizes the amount of revenue and interest related to nonparticipating traditional and limited-payment contracts recognized in the unaudited Condensed Consolidated Statements of Operations (in millions):
(a) Included in Life insurance premiums and other fees on the unaudited Condensed Consolidated Statements of Operations. (b) Included in Benefits and other changes in policy reserves (remeasurement gains (losses) (a)) on the unaudited Condensed Consolidated Statements of Operations.
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Schedule of Liability for Future Policy Benefit, Weighted Average Discount Rates | The following table presents the weighted-average interest rate:
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Schedule of Liability for Future Policy Benefit, Mortality and Lapse, Actual and Expected Experience | The following tables summarize the actual experience and expected experience for mortality and lapses of the FPB:
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Accounts Payable and Accrued Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities | The following table presents a reconciliation of Accounts payable and accrued liabilities to the unaudited Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in millions):
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Schedule Of Unearned Revenue Liability (URL) | The following tables roll forward URL for our universal life product for the three months ended March 31, 2024 and March 31, 2023 (in millions):
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Notes Payable (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Notes Payable | The carrying amounts of notes payable are summarized as follows (in millions):
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Schedule Of Interest Expense On Notes Payable | Interest expense on F&G’s outstanding notes payable for the three months ended March 31, 2024 and 2023 was as follows (in millions):
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Supplemental Cash Flow Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow Information | The following supplemental cash flow information is provided with respect to certain cash payment and non-cash investing and financing activities (in millions):
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Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Unfunded Commitments | A summary of unfunded commitments by commitment type as of March 31, 2024 is included below (in millions):
|
Insurance Subsidiary Financial Information and Regulatory Matters (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory Accounting Practices | Our principal insurance subsidiaries' statutory financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of our wholly owned insurance subsidiaries as of March 31, 2024 and December 31, 2023, were as follows (in millions):
Non-U.S. Companies Net income and capital and surplus of our wholly owned Bermuda and Cayman Islands regulated insurance subsidiaries under U.S. GAAP were as follows (in millions):
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Acquisition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Initial Purchase Price | The initial purchase price is as follows (in millions):
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Schedule of Fair Value Amounts Expected to be Recognized for Assets Acquired and Liabilities Assumed | The following table summarizes the fair value amounts recognized for the assets acquired and liabilities assumed as of the acquisition date (dollars in millions):
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Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the Roar acquisition consist of the following (dollars in millions):
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Business Acquisition, Pro Forma Information | Unaudited pro-forma results presented assume the acquisition of Roar occurred as of January 1, 2023 and are not intended to represent or be indicative of actual or future results of operations.
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted EPS (share amounts in thousands):
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Basis of Financial Statements - Description of Business (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
insuranceAgent
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reporting segments | 1 |
Basis of Financial Statements - Recent Developments (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |||||||
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May 08, 2024 |
Feb. 16, 2024 |
Jan. 12, 2024 |
Jan. 02, 2024 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Feb. 15, 2024 |
Dec. 31, 2023 |
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Debt Instrument [Line Items] | ||||||||
Contingent consideration obligation | $ 57 | $ 0 | ||||||
Issuance of preferred stock | $ 250 | $ 0 | ||||||
Preferred stock, shares issued (in shares) | 5,000,000 | 0 | ||||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||||
Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Dividends declared (in usd per share) | $ 0.21 | |||||||
Revolving Credit Facility | Credit Agreement | Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit agreement, maturity date, extension, period | 2 years | |||||||
Credit facility, maximum borrowing capacity | $ 750 | $ 665 | ||||||
6.875% Series A Mandatory Convertible Preferred Stock | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Preferred stock dividends declared (in usd per share) | $ 0.8594 | |||||||
Parent Company | 6.875% Series A Mandatory Convertible Preferred Stock | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance of preferred stock | $ 250 | |||||||
Preferred stock, shares issued (in shares) | 5,000,000 | |||||||
Preferred stock, dividend rate, percentage | 6.875% | |||||||
Preferred stock, par value (in dollars per share) | $ 0.001 | |||||||
Preferred stock, liquidation preference per share (in usd per share) | $ 50.00 | |||||||
Distribution Investments and Affiliates | Commission Fees Paid | ||||||||
Debt Instrument [Line Items] | ||||||||
Commissions paid | $ 50 | $ 37 | ||||||
Roar | ||||||||
Debt Instrument [Line Items] | ||||||||
Ownership interests acquired | 70.00% | |||||||
Cash consideration | $ 269 | |||||||
Contingent consideration obligation | 48 | |||||||
Contingent consideration obligation, payments (up to) | $ 90 | |||||||
Contingent consideration liability payment period | 3 years | 3 years |
Basis of Financial Statements - Schedule of Changes in Other Comprehensive Earnings (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, Beginning | $ 3,103 | $ 2,405 |
Balance, Ending | 3,683 | 2,485 |
Reclassification adjustments, tax (benefit) | 4 | 11 |
Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, Beginning | (2,479) | (3,528) |
Reclassification adjustments included in net earnings | 15 | 41 |
Other comprehensive income (loss) before tax, net of reclassifications | 2 | 408 |
Income tax (expense) benefit | 0 | (86) |
Balance, Ending | (2,462) | (3,165) |
Change in current discount rate - future policy benefits | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, Beginning | 573 | 763 |
Reclassification adjustments included in net earnings | 0 | 0 |
Other comprehensive income (loss) before tax, net of reclassifications | 115 | (127) |
Income tax (expense) benefit | (24) | 27 |
Balance, Ending | 664 | 663 |
Change in instrument- specific credit risk - market risk benefits | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, Beginning | (83) | (49) |
Reclassification adjustments included in net earnings | 0 | 0 |
Other comprehensive income (loss) before tax, net of reclassifications | 1 | 8 |
Income tax (expense) benefit | 0 | (2) |
Balance, Ending | (82) | (43) |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, Beginning | (1) | (4) |
Reclassification adjustments included in net earnings | 0 | 0 |
Other comprehensive income (loss) before tax, net of reclassifications | (2) | 1 |
Income tax (expense) benefit | 0 | 0 |
Balance, Ending | (3) | (3) |
Total Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, Beginning | (1,990) | (2,818) |
Reclassification adjustments included in net earnings | 15 | 41 |
Other comprehensive income (loss) before tax, net of reclassifications | 116 | 290 |
Income tax (expense) benefit | (24) | (61) |
Balance, Ending | $ (1,883) | $ (2,548) |
Fair Value of Financial Instruments - Carrying Amounts of Assets and Liabilities at Estimated Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Assets | ||
Fixed maturity securities available for sale | $ 42,631 | $ 40,419 |
Derivative investments | 1,024 | 797 |
Investments in unconsolidated affiliates | 343 | 285 |
Market risk benefits asset | 95 | 88 |
Total financial assets at fair value | 1,326 | 1,296 |
Derivatives: | ||
Contingent consideration obligation | 57 | 0 |
Market risk benefits liability | 425 | 403 |
Fair Value | ||
Assets | ||
Cash and cash equivalents | 2,372 | 1,563 |
Derivative investments | 1,024 | 797 |
Investments in unconsolidated affiliates | 3,024 | 2,786 |
Short term investments | 263 | 1,452 |
Market risk benefits asset | 95 | 88 |
Total financial assets at fair value | 47,420 | 45,399 |
Derivatives: | ||
Market risk benefits liability | 425 | 403 |
Total financial liabilities at fair value | 4,661 | |
Carrying Amount | ||
Assets | ||
Investments in unconsolidated affiliates | 3,024 | 2,786 |
Derivatives: | ||
Contingent consideration obligation | 57 | |
Total financial liabilities at fair value | 5,180 | |
Level 1 | ||
Assets | ||
Cash and cash equivalents | 2,372 | 1,563 |
Derivative investments | 0 | 0 |
Investments in unconsolidated affiliates | 0 | 0 |
Short term investments | 254 | 1,444 |
Market risk benefits asset | 0 | 0 |
Total financial assets at fair value | 3,205 | 3,593 |
Derivatives: | ||
Contingent consideration obligation | 0 | |
Market risk benefits liability | 0 | 0 |
Total financial liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Derivative investments | 1,015 | 740 |
Investments in unconsolidated affiliates | 0 | 0 |
Short term investments | 0 | 8 |
Market risk benefits asset | 0 | 0 |
Total financial assets at fair value | 33,701 | 32,095 |
Derivatives: | ||
Contingent consideration obligation | 0 | |
Market risk benefits liability | 0 | 0 |
Total financial liabilities at fair value | 0 | 0 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Derivative investments | 9 | 57 |
Investments in unconsolidated affiliates | 6 | 7 |
Short term investments | 9 | 0 |
Market risk benefits asset | 95 | 88 |
Total financial assets at fair value | 10,455 | 9,652 |
Derivatives: | ||
Contingent consideration obligation | 57 | |
Market risk benefits liability | 425 | 403 |
Total financial liabilities at fair value | 5,180 | 4,661 |
NAV | ||
Assets | ||
Investments in unconsolidated affiliates | 3,018 | 2,779 |
Total financial assets at fair value | 59 | 59 |
Reinsurance related embedded derivative, included in other assets | Fair Value | ||
Assets | ||
Derivative investments | 134 | 152 |
Reinsurance related embedded derivative, included in other assets | Level 1 | ||
Assets | ||
Derivative investments | 0 | 0 |
Reinsurance related embedded derivative, included in other assets | Level 2 | ||
Assets | ||
Derivative investments | 134 | 152 |
Reinsurance related embedded derivative, included in other assets | Level 3 | ||
Assets | ||
Derivative investments | 0 | 0 |
Indexed annuities/ IUL embedded derivatives | Fair Value | ||
Derivatives: | ||
Derivative liabilities | 4,258 | |
Indexed annuities/ IUL embedded derivatives | Carrying Amount | ||
Derivatives: | ||
Derivative liabilities | 4,679 | |
Indexed annuities/ IUL embedded derivatives | Level 1 | ||
Derivatives: | ||
Derivative liabilities | 0 | 0 |
Indexed annuities/ IUL embedded derivatives | Level 2 | ||
Derivatives: | ||
Derivative liabilities | 0 | 0 |
Indexed annuities/ IUL embedded derivatives | Level 3 | ||
Derivatives: | ||
Derivative liabilities | 4,679 | 4,258 |
Interest rate swaps | Carrying Amount | ||
Derivatives: | ||
Derivative liabilities | 19 | |
Interest rate swaps | Level 1 | ||
Derivatives: | ||
Derivative liabilities | 0 | |
Interest rate swaps | Level 2 | ||
Derivatives: | ||
Derivative liabilities | 0 | |
Interest rate swaps | Level 3 | ||
Derivatives: | ||
Derivative liabilities | 19 | |
Asset-backed securities | ||
Assets | ||
Fixed maturity securities available for sale | 15,108 | 14,334 |
Asset-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 15,108 | 14,334 |
Asset-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Asset-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 7,372 | 7,212 |
Asset-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 7,736 | 7,122 |
Commercial mortgage-backed securities | ||
Assets | ||
Fixed maturity securities available for sale | 4,758 | 4,410 |
Commercial mortgage-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 4,758 | 4,410 |
Commercial mortgage-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 4,746 | 4,392 |
Commercial mortgage-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 12 | 18 |
Corporates | ||
Assets | ||
Fixed maturity securities available for sale | 17,669 | 16,579 |
Corporates | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 17,669 | 16,579 |
Corporates | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Corporates | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 15,491 | 14,609 |
Corporates | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 2,178 | 1,970 |
Hybrids | ||
Assets | ||
Fixed maturity securities available for sale | 633 | 618 |
Hybrids | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 633 | 618 |
Hybrids | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 99 | 95 |
Hybrids | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 534 | 523 |
Hybrids | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Municipals | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 1,504 | 1,567 |
Municipals | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Municipals | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 1,486 | 1,518 |
Municipals | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 18 | 49 |
Residential mortgage-backed securities | ||
Assets | ||
Fixed maturity securities available for sale | 2,459 | 2,424 |
Residential mortgage-backed securities | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 2,459 | 2,424 |
Residential mortgage-backed securities | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 2,455 | 2,421 |
Residential mortgage-backed securities | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 4 | 3 |
U.S. Government | ||
Assets | ||
Fixed maturity securities available for sale | 276 | 261 |
U.S. Government | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 276 | 261 |
U.S. Government | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 276 | 261 |
U.S. Government | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
U.S. Government | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Foreign Governments | ||
Assets | ||
Fixed maturity securities available for sale | 224 | 226 |
Foreign Governments | Fair Value | ||
Assets | ||
Fixed maturity securities available for sale | 224 | 226 |
Foreign Governments | Level 1 | ||
Assets | ||
Fixed maturity securities available for sale | 0 | 0 |
Foreign Governments | Level 2 | ||
Assets | ||
Fixed maturity securities available for sale | 219 | 210 |
Foreign Governments | Level 3 | ||
Assets | ||
Fixed maturity securities available for sale | 5 | 16 |
Preferred securities | ||
Assets | ||
Equity and preferred securities | 381 | 469 |
Preferred securities | Fair Value | ||
Assets | ||
Equity and preferred securities | 381 | 469 |
Preferred securities | Level 1 | ||
Assets | ||
Equity and preferred securities | 125 | 152 |
Preferred securities | Level 2 | ||
Assets | ||
Equity and preferred securities | 249 | 310 |
Preferred securities | Level 3 | ||
Assets | ||
Equity and preferred securities | 7 | 7 |
Equity securities | Fair Value | ||
Assets | ||
Equity and preferred securities | 138 | 137 |
Equity securities | Level 1 | ||
Assets | ||
Equity and preferred securities | 79 | 78 |
Equity securities | Level 2 | ||
Assets | ||
Equity and preferred securities | 0 | 0 |
Equity securities | Level 3 | ||
Assets | ||
Equity and preferred securities | 0 | 0 |
Equity securities | NAV | ||
Assets | ||
Equity and preferred securities | 59 | 59 |
Investment in unconsolidated affiliates | Fair Value | ||
Assets | ||
Investments in unconsolidated affiliates | 343 | 285 |
Investment in unconsolidated affiliates | Level 1 | ||
Assets | ||
Investments in unconsolidated affiliates | 0 | 0 |
Investment in unconsolidated affiliates | Level 2 | ||
Assets | ||
Investments in unconsolidated affiliates | 0 | 0 |
Investment in unconsolidated affiliates | Level 3 | ||
Assets | ||
Investments in unconsolidated affiliates | 285 | |
Other long-term investments | Fair Value | ||
Assets | ||
Other long-term investments | 39 | 37 |
Other long-term investments | Level 1 | ||
Assets | ||
Other long-term investments | 0 | 0 |
Other long-term investments | Level 2 | ||
Assets | ||
Other long-term investments | 0 | 0 |
Other long-term investments | Level 3 | ||
Assets | ||
Other long-term investments | $ 39 | $ 37 |
Fair Value of Financial Instruments - Narrative (Details) $ in Millions |
Mar. 31, 2024
$ / Contract
|
Dec. 06, 2023
USD ($)
|
Jan. 13, 2023
USD ($)
|
Jun. 01, 2020
USD ($)
|
---|---|---|---|---|
5.50% Senior Notes Due 2025 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Aggregate principal amount | $ 550 | |||
Senior Notes | 7.40% Senior Notes Due 2028 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Aggregate principal amount | $ 500 | |||
Interest rate, stated percentage | 7.40% | 7.40% | ||
Senior Notes | 5.50% Senior Notes Due 2025 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate, stated percentage | 5.50% | |||
Senior Notes | 7.95% Senior Notes Due 2053 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Aggregate principal amount | $ 345 | |||
Interest rate, stated percentage | 7.95% | 7.95% | ||
Credit linked note | Third-Party Valuation | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative, strike price | $ / Contract | 0 |
Fair Value of Financial Instruments - Quantitative Information Regarding Significant Unobservable Inputs Used for Recurring Level 3 Fair Value Measurements of Financial Instruments (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
---|---|---|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1,326 | $ 1,296 |
Liabilities, fair value | 5,161 | 4,661 |
Market Comparable | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 8,356 | |
Third-Party Valuation | Offered Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | 9,129 | |
Liabilities, fair value | $ 19 | |
Minimum | Discounted Cash Flow | Risk-Adjusted Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability | 0.1350 | |
Minimum | Discounted Cash Flow | EBITDA Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability | 0.3500 | |
Minimum | Discounted Cash Flow | Counterparty-Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability | 0.0700 | |
Maximum | Discounted Cash Flow | Risk-Adjusted Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability | 0.1350 | |
Maximum | Discounted Cash Flow | EBITDA Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability | 0.3500 | |
Maximum | Discounted Cash Flow | Counterparty-Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability | 0.0700 | |
Weighted Average | Discounted Cash Flow | Risk-Adjusted Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability | 0.1350 | |
Weighted Average | Discounted Cash Flow | EBITDA Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability | 0.3500 | |
Weighted Average | Discounted Cash Flow | Counterparty-Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability | 0.0700 | |
Indexed annuities/ IUL embedded derivatives | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 4,679 | $ 4,258 |
Indexed annuities/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0025 | 0.0025 |
Indexed annuities/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0200 | 0.0200 |
Indexed annuities/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0035 | 0.0038 |
Indexed annuities/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0000 | 0.0000 |
Indexed annuities/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1.0000 | 1.0000 |
Indexed annuities/ IUL embedded derivatives | Minimum | Discounted Cash Flow | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0007 | 0.0007 |
Indexed annuities/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.7000 | 0.7000 |
Indexed annuities/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.3571 | 0.3448 |
Indexed annuities/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0102 | 0.0110 |
Indexed annuities/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.2411 | 0.1893 |
Indexed annuities/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1.0000 | 1.0000 |
Indexed annuities/ IUL embedded derivatives | Maximum | Discounted Cash Flow | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0570 | 0.0548 |
Indexed annuities/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0680 | 0.0683 |
Indexed annuities/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0274 | 0.0274 |
Indexed annuities/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0087 | 0.0096 |
Indexed annuities/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Market Value of Option | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0352 | 0.0263 |
Indexed annuities/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Mortality Multiplier | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 1.0000 | 1.0000 |
Indexed annuities/ IUL embedded derivatives | Weighted Average | Discounted Cash Flow | Option Cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative liability | 0.0247 | 0.0238 |
Contingent Consideration | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 57 | |
Asset-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 89 | $ 57 |
Asset-backed securities | Minimum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0527 | 0.0509 |
Asset-backed securities | Maximum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0654 | 0.0695 |
Asset-backed securities | Weighted Average | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0603 | 0.0600 |
Commercial mortgage-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 1 | |
Commercial mortgage-backed securities | Minimum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0690 | |
Commercial mortgage-backed securities | Maximum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0784 | |
Commercial mortgage-backed securities | Weighted Average | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0722 | |
Corporates | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 760 | $ 787 |
Corporates | Minimum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0416 | 0.0000 |
Corporates | Maximum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.1287 | 0.1287 |
Corporates | Weighted Average | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0706 | 0.0691 |
Municipals | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 32 | |
Municipals | Minimum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0625 | |
Municipals | Maximum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0625 | |
Municipals | Weighted Average | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0625 | |
Residential mortgage-backed securities | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 3 | $ 3 |
Residential mortgage-backed securities | Minimum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0564 | 0.0546 |
Residential mortgage-backed securities | Maximum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0564 | 0.0546 |
Residential mortgage-backed securities | Weighted Average | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0564 | 0.0546 |
Foreign Governments | Third-Party Valuation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 5 | $ 16 |
Foreign Governments | Minimum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0677 | 0.0694 |
Foreign Governments | Maximum | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0677 | 0.0768 |
Foreign Governments | Weighted Average | Third-Party Valuation | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities | 0.0677 | 0.0745 |
Investment in unconsolidated affiliates | Market Comparable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 285 | |
Investment in unconsolidated affiliates | Market Comparable | Affiliated Entity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 343 | |
Investment in unconsolidated affiliates | Minimum | Market Comparable | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliates | 4.4 | |
Investment in unconsolidated affiliates | Minimum | Market Comparable | EBITDA Multiple | Affiliated Entity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliates | 14.1 | |
Investment in unconsolidated affiliates | Maximum | Market Comparable | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliates | 31.8 | |
Investment in unconsolidated affiliates | Maximum | Market Comparable | EBITDA Multiple | Affiliated Entity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliates | 20.2 | |
Investment in unconsolidated affiliates | Weighted Average | Market Comparable | EBITDA Multiple | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliates | 23.2 | |
Investment in unconsolidated affiliates | Weighted Average | Market Comparable | EBITDA Multiple | Affiliated Entity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment in unconsolidated affiliates | 16.0 | |
Available-for-sale embedded derivative | Black Scholes Model | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 30 | $ 28 |
Available-for-sale embedded derivative | Black Scholes Model | Market Value of AnchorPath Fund | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded derivative asset | 1.0000 | 1.0000 |
Market risk benefit asset | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Assets, fair value | $ 95 | $ 88 |
Market risk benefit asset | Minimum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1.0000 | 1.0000 |
Market risk benefit asset | Minimum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0025 | 0.0025 |
Market risk benefit asset | Minimum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0200 | 0.0000 |
Market risk benefit asset | Minimum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0035 | 0.0038 |
Market risk benefit asset | Minimum | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5000 | 0.5000 |
Market risk benefit asset | Maximum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1.0000 | 1.0000 |
Market risk benefit asset | Maximum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.1000 | 0.1000 |
Market risk benefit asset | Maximum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.2041 | 0.2326 |
Market risk benefit asset | Maximum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0102 | 0.0110 |
Market risk benefit asset | Maximum | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.6000 | 0.6000 |
Market risk benefit asset | Weighted Average | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1.0000 | 1.0000 |
Market risk benefit asset | Weighted Average | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0513 | 0.0522 |
Market risk benefit asset | Weighted Average | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0250 | 0.0250 |
Market risk benefit asset | Weighted Average | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0087 | 0.0096 |
Market risk benefit asset | Weighted Average | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5081 | 0.5081 |
Market risk benefits liability | Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Liabilities, fair value | $ 425 | $ 403 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1.0000 | 1.0000 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0025 | 0.0025 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0200 | 0.0000 |
Market risk benefits liability | Minimum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0035 | 0.0038 |
Market risk benefits liability | Minimum | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5000 | 0.5000 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1.0000 | 1.0000 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.1000 | 0.1000 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.2041 | 0.2326 |
Market risk benefits liability | Maximum | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0102 | 0.0110 |
Market risk benefits liability | Maximum | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.6000 | 0.6000 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Mortality | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 1.0000 | 1.0000 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Surrender Rates | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0513 | 0.0522 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Partial Withdrawals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0250 | 0.0250 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | Non-Performance Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.0087 | 0.0096 |
Market risk benefits liability | Weighted Average | Discounted Cash Flow | GMWB utilization | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market risk benefit | 0.5081 | 0.5081 |
Fair Value of Financial Instruments - Changes to Fair Value of Financial Instruments Level 3 (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Liabilities: | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Recognized gains and (losses), net | Recognized gains and (losses), net |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Recognized gains and (losses), net | Recognized gains and (losses), net |
Level 3 | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | $ 9,652 | $ 8,262 |
Balance at End of Period | 10,455 | 8,205 |
Liabilities: | ||
Balance at Beginning of Period | 4,661 | 3,397 |
Balance at End of Period | 5,180 | 3,893 |
Indexed annuities/ IUL embedded derivatives | ||
Liabilities: | ||
Balance at Beginning of Period | 4,258 | 3,115 |
Liabilities, Total Gains (Losses) Included in Earnings | 200 | 385 |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 |
Liabilities, Purchases | 288 | 96 |
Liabilities, Sales | 0 | 0 |
Liabilities, Settlements | (67) | (27) |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 4,679 | 3,569 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 |
Interest rate swaps | ||
Liabilities: | ||
Balance at Beginning of Period | 0 | |
Liabilities, Total Gains (Losses) Included in Earnings | 19 | |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | |
Liabilities, Purchases | 0 | |
Liabilities, Sales | 0 | |
Liabilities, Settlements | 0 | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 19 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | |
Contingent consideration (c) | ||
Liabilities: | ||
Balance at Beginning of Period | 0 | |
Liabilities, Total Gains (Losses) Included in Earnings | 9 | |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | |
Liabilities, Purchases | 48 | |
Liabilities, Sales | 0 | |
Liabilities, Settlements | 0 | |
Liabilities, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 57 | |
Asset-backed securities | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 7,122 | 6,263 |
Assets, Total Gains (Losses) Included in Earnings | (12) | (8) |
Assets, Total Gains (Losses) Included in AOCI | 104 | 18 |
Assets, Purchases | 762 | 416 |
Assets, Sales | (19) | (83) |
Assets, Settlements | (202) | (235) |
Assets, Net transfer In (Out) of Level 3 | (19) | (71) |
Balance at End of Period | 7,736 | 6,300 |
Change in Unrealized Gains (Losses) Incl in OCI | 104 | 18 |
Commercial mortgage-backed securities | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 18 | 37 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 1 |
Assets, Purchases | 1 | 12 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | (7) | (21) |
Balance at End of Period | 12 | 29 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 1 |
Corporates | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 1,970 | 1,427 |
Assets, Total Gains (Losses) Included in Earnings | 0 | (1) |
Assets, Total Gains (Losses) Included in AOCI | 13 | (23) |
Assets, Purchases | 217 | 134 |
Assets, Sales | 0 | 0 |
Assets, Settlements | (22) | (5) |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 2,178 | 1,532 |
Change in Unrealized Gains (Losses) Incl in OCI | 13 | (23) |
Municipals | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 49 | 29 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 1 | 3 |
Assets, Purchases | 0 | 0 |
Assets, Sales | (32) | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 18 | 32 |
Change in Unrealized Gains (Losses) Incl in OCI | 1 | 3 |
Residential mortgage-backed securities | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 3 | 302 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 1 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 8 |
Assets, Purchases | 1 | 8 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | (8) |
Assets, Net transfer In (Out) of Level 3 | 0 | (299) |
Balance at End of Period | 4 | 12 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 8 |
Foreign Governments | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 16 | 16 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | (11) | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 5 | 16 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | |
Preferred Stock | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 7 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 7 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | |
Interest rate swaps | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 57 | |
Assets, Total Gains (Losses) Included in Earnings | (48) | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 9 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | |
Investment in unconsolidated affiliates | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 285 | 23 |
Assets, Total Gains (Losses) Included in Earnings | 58 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 84 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 343 | 107 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 |
Short-term investments | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 0 | 0 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 9 | 23 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 9 | 23 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 |
Available-for-sale embedded derivative | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 27 | 23 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 3 | 2 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 30 | 25 |
Change in Unrealized Gains (Losses) Incl in OCI | 3 | 2 |
Credit linked note | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 10 | 15 |
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 |
Assets, Purchases | 0 | 0 |
Assets, Sales | 0 | 0 |
Assets, Settlements | (1) | (2) |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 |
Balance at End of Period | 9 | 13 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 |
Secured borrowing receivable | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 10 | |
Assets, Total Gains (Losses) Included in Earnings | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | |
Assets, Purchases | 0 | |
Assets, Sales | 0 | |
Assets, Settlements | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | |
Balance at End of Period | 10 | |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | |
Subtotal assets at Level 3 fair value | ||
Fixed maturity securities, available-for-sale: | ||
Assets, Total Gains (Losses) Included in Earnings | (2) | (8) |
Assets, Total Gains (Losses) Included in AOCI | 121 | 9 |
Assets, Purchases | 990 | 677 |
Assets, Sales | (51) | (83) |
Assets, Settlements | (236) | (250) |
Assets, Net transfer In (Out) of Level 3 | (26) | (391) |
Change in Unrealized Gains (Losses) Incl in OCI | 121 | 9 |
Subtotal assets at Level 3 fair value | Level 3 | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 9,564 | 8,145 |
Balance at End of Period | 10,360 | 8,099 |
Market risk benefit asset | Level 3 | ||
Fixed maturity securities, available-for-sale: | ||
Balance at Beginning of Period | 88 | 117 |
Balance at End of Period | 95 | 106 |
Subtotal liabilities at Level 3 fair value | ||
Liabilities: | ||
Liabilities, Total Gains (Losses) Included in Earnings | 228 | 385 |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 |
Liabilities, Purchases | 336 | 96 |
Liabilities, Sales | 0 | 0 |
Liabilities, Settlements | (67) | (27) |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 |
Change in Unrealized Gains (Losses) Incl in OCI | 0 | 0 |
Subtotal liabilities at Level 3 fair value | Level 3 | ||
Liabilities: | ||
Balance at Beginning of Period | 4,258 | 3,115 |
Balance at End of Period | 4,755 | 3,569 |
Market risk benefits liability | Level 3 | ||
Liabilities: | ||
Balance at Beginning of Period | 403 | 282 |
Balance at End of Period | $ 425 | $ 324 |
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
ASSETS | ||
Investments in unconsolidated affiliates | $ 343 | $ 285 |
Total Estimated Fair Value | ||
ASSETS | ||
FHLB common stock | 138 | 138 |
Commercial mortgage loans | 2,229 | 2,253 |
Residential mortgage loans | 2,590 | 2,545 |
Investments in unconsolidated affiliates | 3,024 | 2,786 |
Policy loans | 78 | 71 |
Company-owned life insurance | 379 | 362 |
Total | 8,438 | 8,155 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 41,488 | 40,229 |
Debt | 1,783 | 1,777 |
Total | 43,271 | 42,006 |
Carrying Amount | ||
ASSETS | ||
FHLB common stock | 138 | 138 |
Commercial mortgage loans | 2,550 | 2,538 |
Residential mortgage loans | 2,890 | 2,798 |
Investments in unconsolidated affiliates | 3,024 | 2,786 |
Policy loans | 78 | 71 |
Company-owned life insurance | 379 | 362 |
Total | 9,059 | 8,693 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 46,194 | 44,540 |
Debt | 1,748 | 1,754 |
Total | 47,942 | 46,294 |
Level 1 | ||
ASSETS | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Investments in unconsolidated affiliates | 0 | 0 |
Policy loans | 0 | 0 |
Company-owned life insurance | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
ASSETS | ||
FHLB common stock | 138 | 138 |
Commercial mortgage loans | 0 | 0 |
Residential mortgage loans | 0 | 0 |
Investments in unconsolidated affiliates | 0 | 0 |
Policy loans | 0 | 0 |
Company-owned life insurance | 0 | 0 |
Total | 138 | 138 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 0 | 0 |
Debt | 1,783 | 1,777 |
Total | 1,783 | 1,777 |
Level 3 | ||
ASSETS | ||
FHLB common stock | 0 | 0 |
Commercial mortgage loans | 2,229 | 2,253 |
Residential mortgage loans | 2,590 | 2,545 |
Investments in unconsolidated affiliates | 6 | 7 |
Policy loans | 78 | 71 |
Company-owned life insurance | 379 | 362 |
Total | 5,282 | 5,238 |
Liabilities: | ||
Investment contracts, included in contractholder funds | 41,488 | 40,229 |
Debt | 0 | 0 |
Total | 41,488 | 40,229 |
NAV | ||
ASSETS | ||
Investments in unconsolidated affiliates | 3,018 | 2,779 |
Total | $ 3,018 | $ 2,779 |
Investments - Consolidated Investments (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Available-for-sale securities | ||||
Amortized Cost | $ 45,792 | $ 43,601 | ||
Allowance for Expected Credit Losses | (33) | (35) | $ (16) | $ (31) |
Gross Unrealized Gains | 492 | 444 | ||
Gross Unrealized Losses | (3,620) | (3,591) | ||
Fair Value/Carrying Value | 42,631 | 40,419 | ||
Asset-backed securities | ||||
Available-for-sale securities | ||||
Amortized Cost | 15,247 | 14,623 | ||
Allowance for Expected Credit Losses | (11) | (11) | (10) | (8) |
Gross Unrealized Gains | 280 | 191 | ||
Gross Unrealized Losses | (408) | (469) | ||
Fair Value/Carrying Value | 15,108 | 14,334 | ||
Commercial mortgage-backed securities | ||||
Available-for-sale securities | ||||
Amortized Cost | 4,980 | 4,732 | ||
Allowance for Expected Credit Losses | (21) | (22) | 0 | (1) |
Gross Unrealized Gains | 38 | 23 | ||
Gross Unrealized Losses | (239) | (323) | ||
Fair Value/Carrying Value | 4,758 | 4,410 | ||
Corporates | ||||
Available-for-sale securities | ||||
Amortized Cost | 20,086 | 18,780 | ||
Allowance for Expected Credit Losses | 0 | 0 | 0 | (15) |
Gross Unrealized Gains | 126 | 178 | ||
Gross Unrealized Losses | (2,543) | (2,379) | ||
Fair Value/Carrying Value | 17,669 | 16,579 | ||
Hybrids | ||||
Available-for-sale securities | ||||
Amortized Cost | 667 | 668 | ||
Allowance for Expected Credit Losses | 0 | 0 | ||
Gross Unrealized Gains | 4 | 3 | ||
Gross Unrealized Losses | (38) | (53) | ||
Fair Value/Carrying Value | 633 | 618 | ||
Municipals | ||||
Available-for-sale securities | ||||
Amortized Cost | 1,724 | 1,776 | ||
Allowance for Expected Credit Losses | 0 | 0 | ||
Gross Unrealized Gains | 11 | 14 | ||
Gross Unrealized Losses | (231) | (223) | ||
Fair Value/Carrying Value | 1,504 | 1,567 | ||
Residential mortgage-backed securities | ||||
Available-for-sale securities | ||||
Amortized Cost | 2,545 | 2,501 | ||
Allowance for Expected Credit Losses | (1) | (2) | $ (6) | $ (7) |
Gross Unrealized Gains | 31 | 29 | ||
Gross Unrealized Losses | (116) | (104) | ||
Fair Value/Carrying Value | 2,459 | 2,424 | ||
U.S. Government | ||||
Available-for-sale securities | ||||
Amortized Cost | 276 | 258 | ||
Allowance for Expected Credit Losses | 0 | 0 | ||
Gross Unrealized Gains | 2 | 4 | ||
Gross Unrealized Losses | (2) | (1) | ||
Fair Value/Carrying Value | 276 | 261 | ||
Foreign Governments | ||||
Available-for-sale securities | ||||
Amortized Cost | 267 | 263 | ||
Allowance for Expected Credit Losses | 0 | 0 | ||
Gross Unrealized Gains | 0 | 2 | ||
Gross Unrealized Losses | (43) | (39) | ||
Fair Value/Carrying Value | $ 224 | $ 226 |
Investments - Narrative (Details) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2024
USD ($)
loan
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
loan
|
|
Debt Securities, Available-for-sale [Line Items] | |||
Non-income producing investment fair value | $ 69,000,000 | $ 47,000,000 | |
Accrued interest receivable | $ 512,000,000 | $ 469,000,000 | |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other assets | Prepaid expenses and other assets | |
FHLB collateral pledged | $ 4,518,000,000 | $ 4,345,000,000 | |
PCD available for sale securities purchased | 0 | $ 0 | |
Allowance for credit loss for securities in an unrealized loss position | $ 0 | ||
DSC ratio, amortization period | 25 years | ||
Amortized cost of loans on non-accrual | $ 66,000,000 | $ 57,000,000 | |
Gross investment income | (686,000,000) | (580,000,000) | |
Reinsurance agreement, recognized gains (losses) | $ (19,000,000) | (22,000,000) | |
Commercial mortgage loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Loans delinquent in principal or interest payments | loan | 0 | 0 | |
Funds Withheld, Reinsurance Agreements | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross investment income | $ (127,000,000) | (58,000,000) | |
90 days or more past due | Mortgage loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Mortgage loans in process of foreclosure | $ 58,000,000 | $ 41,000,000 | |
United States | |||
Debt Securities, Available-for-sale [Line Items] | |||
Residential mortgage loans, location percentage | 100.00% | ||
Commercial mortgages | |||
Debt Securities, Available-for-sale [Line Items] | |||
Commercial mortgage loans, percentage of investments | 5.00% | 5.00% | |
Charge offs | $ 0 | $ 3,000,000 | |
Amortized cost of loans on non-accrual | $ 0 | $ 0 | |
Commercial mortgages | Mortgage loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Allowance for expected credit loss, probability of loss/default model, projected loss, using reasonable forecast period | 2 years | ||
Allowance for credit loss, probability of loss/default, using market historical loss experience, period | 3 years | ||
Residential mortgages | |||
Debt Securities, Available-for-sale [Line Items] | |||
Percentage of total investments | 5.00% | 5.00% | |
Charge offs | $ 0 | $ 0 | |
Amortized cost of loans on non-accrual | $ 66,000,000 | $ 57,000,000 | |
Residential mortgages | Mortgage loans | |||
Debt Securities, Available-for-sale [Line Items] | |||
Allowance for expected credit loss, probability of loss/default model, projected loss, using reasonable forecast period | 2 years | ||
Allowance for credit loss, probability of loss/default, using market historical loss experience, period | 3 years |
Investments - Amortized Cost and Fair Value of Fixed Maturity by Contractual Maturity (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 404 | $ 383 |
Due after one year through five years, Amortized Cost | 3,700 | 3,207 |
Due after five years through ten years, Amortized Cost | 3,492 | 2,822 |
Due after ten years, Amortized Cost | 15,424 | 15,333 |
Subtotal | 23,020 | 21,745 |
Other securities which provide for periodic payments, Amortized Cost | 22,772 | 21,856 |
Amortized Cost | 45,792 | 43,601 |
Due in one year or less, Fair Value | 393 | 374 |
Due after one year through five years, Fair Value | 3,614 | 3,129 |
Due after five years through ten years, Fair Value | 3,333 | 2,680 |
Due after ten years, Fair Value | 12,966 | 13,068 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value, Total | 20,306 | 19,251 |
Other securities which provide for periodic payments, Fair Value | 22,325 | 21,168 |
Total fixed maturity available-for-sale securities | 42,631 | 40,419 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 15,247 | 14,623 |
Amortized Cost | 15,247 | 14,623 |
Other securities which provide for periodic payments, Fair Value | 15,108 | 14,334 |
Total fixed maturity available-for-sale securities | 15,108 | 14,334 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 4,980 | 4,732 |
Amortized Cost | 4,980 | 4,732 |
Other securities which provide for periodic payments, Fair Value | 4,758 | 4,410 |
Total fixed maturity available-for-sale securities | 4,758 | 4,410 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 2,545 | 2,501 |
Other securities which provide for periodic payments, Fair Value | $ 2,459 | $ 2,424 |
Investments - Activity in Allowance for Credit Loss Aggregated by Investment Category (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ (35) | $ (31) |
Additions | ||
For credit losses on securities for which losses were not previously recorded | (1) | (7) |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 3 | 7 |
Reductions | ||
For securities sold during the period | 0 | 15 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Balance at End of Period | (33) | (16) |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (11) | (8) |
Additions | ||
For credit losses on securities for which losses were not previously recorded | (1) | (7) |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 1 | 5 |
Reductions | ||
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Balance at End of Period | (11) | (10) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (22) | (1) |
Additions | ||
For credit losses on securities for which losses were not previously recorded | 0 | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 1 | 1 |
Reductions | ||
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Balance at End of Period | (21) | 0 |
Corporates | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 0 | (15) |
Additions | ||
For credit losses on securities for which losses were not previously recorded | 0 | |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | |
(Additions) reductions in allowance recorded on previously impaired securities | 0 | |
Reductions | ||
For securities sold during the period | 15 | |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | |
Write offs charged against the allowance | 0 | |
Recoveries of amounts previously written off | 0 | |
Balance at End of Period | 0 | 0 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (2) | (7) |
Additions | ||
For credit losses on securities for which losses were not previously recorded | 0 | 0 |
For initial credit losses on purchased securities accounted for as PCD financial assets (a) | 0 | 0 |
(Additions) reductions in allowance recorded on previously impaired securities | 1 | 1 |
Reductions | ||
For securities sold during the period | 0 | 0 |
For securities intended/required to be sold prior to recovery of amortized cost basis | 0 | 0 |
Write offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Balance at End of Period | $ (1) | $ (6) |
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) $ in Millions |
Mar. 31, 2024
USD ($)
security
|
Dec. 31, 2023
USD ($)
security
|
---|---|---|
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 6,474 | $ 5,594 |
Gross Unrealized Losses Less than 12 months | (239) | (293) |
Fair Value, 12 Months or longer | 19,000 | 19,711 |
Gross Unrealized Losses, 12 months or longer | (3,334) | (3,242) |
Total Fair Value | 25,474 | 25,305 |
Total Gross Unrealized Losses | $ (3,573) | $ (3,535) |
Total number of AFS securities in an unrealized loss position less than twelve months | security | 1,213 | 927 |
Total number of AFS securities in an unrealized loss position twelve months or longer | security | 2,550 | 2,602 |
Total number of AFS securities in an unrealized loss position | security | 3,763 | 3,529 |
Asset-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | $ 1,558 | $ 1,707 |
Gross Unrealized Losses Less than 12 months | (41) | (56) |
Fair Value, 12 Months or longer | 4,568 | 5,835 |
Gross Unrealized Losses, 12 months or longer | (358) | (404) |
Total Fair Value | 6,126 | 7,542 |
Total Gross Unrealized Losses | (399) | (460) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 429 | 798 |
Gross Unrealized Losses Less than 12 months | (7) | (53) |
Fair Value, 12 Months or longer | 2,043 | 1,916 |
Gross Unrealized Losses, 12 months or longer | (202) | (234) |
Total Fair Value | 2,472 | 2,714 |
Total Gross Unrealized Losses | (209) | (287) |
Corporates | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 3,393 | 2,273 |
Gross Unrealized Losses Less than 12 months | (128) | (128) |
Fair Value, 12 Months or longer | 10,186 | 9,779 |
Gross Unrealized Losses, 12 months or longer | (2,415) | (2,251) |
Total Fair Value | 13,579 | 12,052 |
Total Gross Unrealized Losses | (2,543) | (2,379) |
Hybrids | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 71 | 60 |
Gross Unrealized Losses Less than 12 months | (2) | (2) |
Fair Value, 12 Months or longer | 464 | 483 |
Gross Unrealized Losses, 12 months or longer | (36) | (51) |
Total Fair Value | 535 | 543 |
Total Gross Unrealized Losses | (38) | (53) |
Municipals | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 333 | 392 |
Gross Unrealized Losses Less than 12 months | (50) | (48) |
Fair Value, 12 Months or longer | 900 | 884 |
Gross Unrealized Losses, 12 months or longer | (181) | (174) |
Total Fair Value | 1,233 | 1,276 |
Total Gross Unrealized Losses | (231) | (222) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 505 | 334 |
Gross Unrealized Losses Less than 12 months | (9) | (5) |
Fair Value, 12 Months or longer | 685 | 660 |
Gross Unrealized Losses, 12 months or longer | (99) | (89) |
Total Fair Value | 1,190 | 994 |
Total Gross Unrealized Losses | (108) | (94) |
U.S. Government | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 160 | 5 |
Gross Unrealized Losses Less than 12 months | (1) | 0 |
Fair Value, 12 Months or longer | 9 | 9 |
Gross Unrealized Losses, 12 months or longer | (1) | (1) |
Total Fair Value | 169 | 14 |
Total Gross Unrealized Losses | (2) | (1) |
Foreign Governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Values, Less than 12 months | 25 | 25 |
Gross Unrealized Losses Less than 12 months | (1) | (1) |
Fair Value, 12 Months or longer | 145 | 145 |
Gross Unrealized Losses, 12 months or longer | (42) | (38) |
Total Fair Value | 170 | 170 |
Total Gross Unrealized Losses | $ (43) | $ (39) |
Investments - Distribution of Commercial Mortgage Loan, Gross of Valuation Allowances, by Property Type and Region (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Schedule of Investments [Line Items] | ||||
Allowance for expected credit loss | $ (67) | $ (66) | $ (60) | $ (42) |
Loans, net | 5,440 | 5,336 | ||
Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | 2,563 | 2,550 | ||
Allowance for expected credit loss | (13) | (12) | $ (12) | $ (10) |
Loans, net | $ 2,550 | $ 2,538 | ||
% of Total | 100.00% | 100.00% | ||
East North Central | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 104 | $ 151 | ||
% of Total | 4.00% | 6.00% | ||
East South Central | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 75 | $ 75 | ||
% of Total | 3.00% | 3.00% | ||
Middle Atlantic | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 354 | $ 354 | ||
% of Total | 14.00% | 14.00% | ||
Mountain | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 386 | $ 352 | ||
% of Total | 15.00% | 14.00% | ||
New England | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 92 | $ 168 | ||
% of Total | 3.00% | 6.00% | ||
Pacific | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 765 | $ 766 | ||
% of Total | 30.00% | 30.00% | ||
South Atlantic | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 618 | $ 563 | ||
% of Total | 24.00% | 22.00% | ||
West North Central | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 21 | $ 4 | ||
% of Total | 1.00% | 0.00% | ||
West South Central | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 148 | $ 117 | ||
% of Total | 6.00% | 5.00% | ||
Hotel | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 18 | $ 18 | ||
% of Total | 1.00% | 1.00% | ||
Industrial | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 617 | $ 616 | ||
% of Total | 24.00% | 24.00% | ||
Mixed Use | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 11 | $ 11 | ||
% of Total | 0.00% | 0.00% | ||
Multifamily | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 1,012 | $ 1,012 | ||
% of Total | 39.00% | 40.00% | ||
Office | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 315 | $ 316 | ||
% of Total | 13.00% | 13.00% | ||
Retail | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 101 | $ 102 | ||
% of Total | 4.00% | 4.00% | ||
Student Housing | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 83 | $ 392 | ||
% of Total | 3.00% | 15.00% | ||
Other | Commercial mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 406 | $ 83 | ||
% of Total | 16.00% | 3.00% |
Investments - Commercial Mortgage Loans Segregated by Aging of Loans and Charge Offs (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Charge offs | |||
Year one | $ 0 | $ 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
Loans under development, amortized cost | $ 22 | ||
Loans under development, fair value | 22 | ||
Commercial mortgages | |||
Credit Quality Indicator Current Year [Abstract] | |||
2024 | 35 | 213 | |
2023 | 214 | 288 | |
2022 | 288 | 1,256 | |
2021 | 1,256 | 512 | |
2020 | 513 | 0 | |
Prior | 257 | 259 | |
Total | 2,563 | 2,528 | |
Credit Quality Indicator Prior Year [Abstract] | |||
2023 | 35 | 213 | |
2022 | 214 | 288 | |
2021 | 288 | 1,256 | |
2020 | 1,256 | 512 | |
2019 | 513 | 0 | |
Total | 2,563 | 2,550 | |
Charge offs | |||
Prior | 0 | 3 | |
Total | 0 | $ 3 | |
Commercial mortgages | Current (less than 30 days past due) | |||
Credit Quality Indicator Current Year [Abstract] | |||
2024 | 35 | 213 | |
2023 | 214 | 288 | |
2022 | 288 | 1,256 | |
2021 | 1,256 | 512 | |
2020 | 513 | 0 | |
Prior | 257 | 259 | |
Total | 2,563 | 2,528 | |
Credit Quality Indicator Prior Year [Abstract] | |||
2023 | 35 | 213 | |
2022 | 214 | 288 | |
2021 | 288 | 1,256 | |
2020 | 1,256 | 512 | |
2019 | 513 | 0 | |
Commercial mortgages | 30-89 days past due | |||
Credit Quality Indicator Current Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Total | 0 | 0 | |
Credit Quality Indicator Prior Year [Abstract] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Commercial mortgages | 90 days or more past due | |||
Credit Quality Indicator Current Year [Abstract] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Total | 0 | 0 | |
Credit Quality Indicator Prior Year [Abstract] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | $ 0 | $ 0 |
Investments - Schedule of Investment in CMLs by Loan to Value and Debt Service Coverage Ratios (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Credit Quality Indicator Prior Year [Abstract] | ||
Loans under development, amortized cost | $ 22 | |
Loans under development, fair value | 22 | |
Commercial mortgages | ||
Schedule of Investments [Line Items] | ||
Loans | $ 2,563 | $ 2,528 |
% of Total | 100.00% | 100.00% |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | $ 35 | $ 213 |
2023 | 214 | 288 |
2022 | 288 | 1,256 |
2021 | 1,256 | 512 |
2020 | 513 | 0 |
Prior | 257 | 259 |
Total | 2,563 | 2,528 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 35 | 213 |
2022 | 214 | 288 |
2021 | 288 | 1,256 |
2020 | 1,256 | 512 |
2019 | 513 | 0 |
Prior | 257 | 259 |
Total | 2,563 | 2,528 |
Commercial mortgages | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans | $ 2,229 | $ 2,231 |
% of Total | 100.00% | 100.00% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 2,229 | $ 2,231 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 2,229 | 2,231 |
Commercial mortgages | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loans | $ 493 | $ 533 |
% of Total | 19.00% | 21.00% |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | $ 35 | $ 85 |
2023 | 86 | 17 |
2022 | 17 | 77 |
2021 | 77 | 232 |
2020 | 156 | 0 |
Prior | 122 | 122 |
Total | 493 | 533 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 35 | 85 |
2022 | 86 | 17 |
2021 | 17 | 77 |
2020 | 77 | 232 |
2019 | 156 | 0 |
Prior | 122 | 122 |
Total | 493 | 533 |
Commercial mortgages | Less than 50.00% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans | $ 477 | $ 510 |
% of Total | 21.00% | 23.00% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 477 | $ 510 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 477 | 510 |
Commercial mortgages | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loans | $ 864 | $ 764 |
% of Total | 34.00% | 30.00% |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | $ 0 | $ 53 |
2023 | 53 | 149 |
2022 | 149 | 267 |
2021 | 292 | 158 |
2020 | 235 | 0 |
Prior | 135 | 137 |
Total | 864 | 764 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 53 |
2022 | 53 | 149 |
2021 | 149 | 267 |
2020 | 292 | 158 |
2019 | 235 | 0 |
Prior | 135 | 137 |
Total | 864 | 764 |
Commercial mortgages | 50.00% to 59.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans | $ 754 | $ 679 |
% of Total | 34.00% | 30.00% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 754 | $ 679 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 754 | 679 |
Commercial mortgages | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loans | $ 1,191 | $ 1,216 |
% of Total | 46.00% | 48.00% |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | $ 0 | $ 69 |
2023 | 69 | 113 |
2022 | 113 | 912 |
2021 | 887 | 122 |
2020 | 122 | 0 |
Prior | 0 | 0 |
Total | 1,191 | 1,216 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 69 |
2022 | 69 | 113 |
2021 | 113 | 912 |
2020 | 887 | 122 |
2019 | 122 | 0 |
Prior | 0 | 0 |
Total | 1,191 | 1,216 |
Commercial mortgages | 60.00% to 74.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans | $ 983 | $ 1,028 |
% of Total | 44.00% | 46.00% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 983 | $ 1,028 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 983 | 1,028 |
Commercial mortgages | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loans | $ 15 | $ 15 |
% of Total | 1.00% | 1.00% |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | $ 0 | $ 6 |
2023 | 6 | 9 |
2022 | 9 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Total | 15 | 15 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 6 |
2022 | 6 | 9 |
2021 | 9 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Total | 15 | 15 |
Commercial mortgages | 75.00% to 84.99% | Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans | $ 15 | $ 14 |
% of Total | 1.00% | 1.00% |
Credit Quality Indicator Current Year [Abstract] | ||
Total | $ 15 | $ 14 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 15 | 14 |
Greater than 1.25 | Commercial mortgages | ||
Schedule of Investments [Line Items] | ||
Loans | 2,477 | 2,443 |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 35 | 154 |
2023 | 154 | 276 |
2022 | 276 | 1,256 |
2021 | 1,256 | 512 |
2020 | 513 | 0 |
Prior | 243 | 245 |
Total | 2,477 | 2,443 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 35 | 154 |
2022 | 154 | 276 |
2021 | 276 | 1,256 |
2020 | 1,256 | 512 |
2019 | 513 | 0 |
Prior | 243 | 245 |
Total | 2,477 | 2,443 |
Greater than 1.25 | Commercial mortgages | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loans | 479 | 519 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 479 | 519 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 479 | 519 |
Greater than 1.25 | Commercial mortgages | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 864 | 764 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 864 | 764 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 864 | 764 |
Greater than 1.25 | Commercial mortgages | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 1,134 | 1,160 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 1,134 | 1,160 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 1,134 | 1,160 |
Greater than 1.25 | Commercial mortgages | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Greater than 1.00 but less than 1.25 | Commercial mortgages | ||
Schedule of Investments [Line Items] | ||
Loans | 63 | 66 |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 0 | 59 |
2023 | 60 | 3 |
2022 | 3 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 4 |
Total | 63 | 66 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 59 |
2022 | 60 | 3 |
2021 | 3 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 4 |
Total | 63 | 66 |
Greater than 1.00 but less than 1.25 | Commercial mortgages | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loans | 0 | 4 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 4 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 4 |
Greater than 1.00 but less than 1.25 | Commercial mortgages | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Greater than 1.00 but less than 1.25 | Commercial mortgages | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 57 | 56 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 57 | 56 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 57 | 56 |
Greater than 1.00 but less than 1.25 | Commercial mortgages | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 6 | 6 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 6 | 6 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 6 | 6 |
Less than 1.00 | Commercial mortgages | ||
Schedule of Investments [Line Items] | ||
Loans | 23 | 19 |
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 0 | 0 |
2023 | 0 | 9 |
2022 | 9 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 14 | 10 |
Total | 23 | 19 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 0 |
2022 | 0 | 9 |
2021 | 9 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 14 | 10 |
Total | 23 | 19 |
Less than 1.00 | Commercial mortgages | Less than 50.00% | ||
Schedule of Investments [Line Items] | ||
Loans | 14 | 10 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 14 | 10 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 14 | 10 |
Less than 1.00 | Commercial mortgages | 50.00% to 59.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Less than 1.00 | Commercial mortgages | 60.00% to 74.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 0 | 0 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 0 | 0 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 0 | 0 |
Less than 1.00 | Commercial mortgages | 75.00% to 84.99% | ||
Schedule of Investments [Line Items] | ||
Loans | 9 | 9 |
Credit Quality Indicator Current Year [Abstract] | ||
Total | 9 | 9 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | $ 9 | $ 9 |
Investments - Distribution of Residential Mortgage Loans by State (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Schedule of Investments [Line Items] | ||||
Allowance for expected credit loss | $ (67) | $ (66) | $ (60) | $ (42) |
Loans, net | 5,440 | 5,336 | ||
Residential mortgages | ||||
Schedule of Investments [Line Items] | ||||
Loans | 2,944 | 2,852 | ||
Allowance for expected credit loss | (54) | (54) | $ (48) | $ (32) |
Loans, net | $ 2,890 | $ 2,798 | ||
% of Total | 100.00% | 100.00% | ||
Florida | Residential mortgages | ||||
Schedule of Investments [Line Items] | ||||
Loans | $ 164 | $ 163 | ||
% of Total | 5.00% | 6.00% | ||
California | Residential mortgages | ||||
Schedule of Investments [Line Items] | ||||
Loans | $ 142 | |||
% of Total | 5.00% | |||
New York | Residential mortgages | ||||
Schedule of Investments [Line Items] | ||||
Loans | $ 129 | |||
% of Total | 5.00% | |||
Texas | Residential mortgages | ||||
Schedule of Investments [Line Items] | ||||
Loans | $ 129 | |||
% of Total | 5.00% | |||
All other states | Residential mortgages | ||||
Schedule of Investments [Line Items] | ||||
Loans | $ 2,638 | $ 2,431 | ||
% of Total | 90.00% | 84.00% |
Investments - Schedule of Residential Mortgage Loans with Credit Quality Indicators, Performing or Nonperforming (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Schedule of Investments [Line Items] | ||||
Allowance for expected credit loss | $ (67) | $ (66) | $ (60) | $ (42) |
Mortgage loans, net of valuation | 5,440 | 5,336 | ||
Residential mortgages | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 2,944 | $ 2,852 | ||
% of Total | 100.00% | 100.00% | ||
Allowance for expected credit loss | $ (54) | $ (54) | $ (48) | $ (32) |
Allowance for expected credit loss, percent | 0.00% | 0.00% | ||
Mortgage loans, net of valuation | $ 2,890 | $ 2,798 | ||
Total residential mortgage loans, net of valuation allowance, % of Total | 100.00% | 100.00% | ||
Residential mortgages | Performing Financial Instruments | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 2,878 | $ 2,795 | ||
% of Total | 98.00% | 98.00% | ||
Residential mortgages | Nonperforming Financial Instruments | ||||
Schedule of Investments [Line Items] | ||||
Amortized Cost | $ 66 | $ 57 | ||
% of Total | 2.00% | 2.00% |
Investments - Schedule of Residential Loans Segregated by Risk Rating Exposure and Non-accrual Loans by Amortized Cost (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | $ 66 | $ 57 |
Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 56 | 373 |
2023 | 404 | 995 |
2022 | 997 | 877 |
2021 | 895 | 208 |
2020 | 203 | 204 |
Prior | 389 | 195 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 56 | 373 |
2022 | 404 | 995 |
2021 | 997 | 877 |
2020 | 895 | 208 |
2019 | 203 | 204 |
Prior | 389 | 195 |
Total | 2,944 | 2,852 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | 66 | 57 |
Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
Loans | 2,563 | 2,528 |
Credit Quality Indicator Prior Year [Abstract] | ||
Total | 2,563 | 2,550 |
Amortized Cost of Non-Accrual Loans [Abstract] | ||
Amortized cost of loans on non-accrual | 0 | 0 |
Current (less than 30 days past due) | Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 56 | 373 |
2023 | 402 | 985 |
2022 | 984 | 854 |
2021 | 874 | 192 |
2020 | 185 | 183 |
Prior | 361 | 192 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 56 | 373 |
2022 | 402 | 985 |
2021 | 984 | 854 |
2020 | 874 | 192 |
2019 | 185 | 183 |
Prior | 361 | 192 |
Total | 2,862 | 2,779 |
Current (less than 30 days past due) | Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
Loans | 2,563 | 2,528 |
30-89 days past due | Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 0 | 0 |
2023 | 1 | 4 |
2022 | 2 | 7 |
2021 | 3 | 3 |
2020 | 6 | 0 |
Prior | 4 | 2 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 0 |
2022 | 1 | 4 |
2021 | 2 | 7 |
2020 | 3 | 3 |
2019 | 6 | 0 |
Prior | 4 | 2 |
Total | 16 | 16 |
30-89 days past due | Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
Loans | 0 | 0 |
90 days or more past due | Residential mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
2024 | 0 | 0 |
2023 | 1 | 6 |
2022 | 11 | 16 |
2021 | 18 | 13 |
2020 | 12 | 21 |
Prior | 24 | 1 |
Credit Quality Indicator Prior Year [Abstract] | ||
2023 | 0 | 0 |
2022 | 1 | 6 |
2021 | 11 | 16 |
2020 | 18 | 13 |
2019 | 12 | 21 |
Prior | 24 | 1 |
Total | 66 | 57 |
90 days or more past due | Commercial mortgages | ||
Credit Quality Indicator Current Year [Abstract] | ||
Loans | $ 0 | $ 0 |
Investments - Changes in Allowance for Expected Credit Losses on Mortgage Loans (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | $ 66 | $ 42 |
Provision for loan losses | 1 | 18 |
Ending Balance | 67 | 60 |
Residential mortgages | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 54 | 32 |
Provision for loan losses | 0 | 16 |
Ending Balance | 54 | 48 |
Commercial mortgages | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | 12 | 10 |
Provision for loan losses | 1 | 2 |
Ending Balance | $ 13 | $ 12 |
Investments - Schedule of Sources of Net Investment Income Reported (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Schedule of Investments [Line Items] | ||
Gross investment income | $ 686 | $ 580 |
Investment expense | (70) | (61) |
Interest and investment income | 616 | 519 |
Fixed maturity securities, available-for-sale | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 516 | 432 |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 6 | 5 |
Preferred securities | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 6 | 10 |
Mortgage loans | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 66 | 51 |
Invested cash and short-term investments | ||
Schedule of Investments [Line Items] | ||
Gross investment income | 28 | 16 |
Limited partnerships | ||
Schedule of Investments [Line Items] | ||
Limited partnerships | 54 | 57 |
Other investments | ||
Schedule of Investments [Line Items] | ||
Gross investment income | $ 10 | $ 9 |
Investments - Recognized Gains (Loss) , Net (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Schedule of Investments [Line Items] | ||
Net realized (losses) on fixed maturity available-for-sale securities | $ (19) | $ (44) |
Net realized/unrealized gains on other invested assets | 58 | 0 |
Change in allowance for expected credit losses | 0 | (8) |
Realized gains (losses) on certain derivative instruments | 21 | (89) |
Unrealized gains on certain derivative instruments | 158 | 147 |
Change in fair value of other derivatives and embedded derivatives | 3 | 2 |
Realized (losses) gains on derivatives and embedded derivatives | 164 | 41 |
Recognized gains and (losses), net | 212 | (15) |
Reinsurance related embedded derivatives | ||
Schedule of Investments [Line Items] | ||
Change in fair value of reinsurance related embedded derivatives | (18) | (19) |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Net realized/unrealized (losses) gains on equity securities and gains (losses) on preferred securities | (1) | 5 |
Valuation (losses) gains | (1) | 5 |
Preferred securities | ||
Schedule of Investments [Line Items] | ||
Net realized/unrealized (losses) gains on equity securities and gains (losses) on preferred securities | 10 | (9) |
Valuation (losses) gains | $ 9 | $ 26 |
Investments - Proceeds from Sale of Fixed Maturity AFS Securities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 578 | $ 445 |
Gross gains | 8 | 3 |
Gross losses | $ (24) | $ (49) |
Investments - Schedule of Carrying Value and Maximum Loss Exposure Unconsolidated VIEs (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Schedule of Investments [Line Items] | ||
Carrying Value | $ 25,358 | $ 23,908 |
Maximum Loss Exposure | 29,175 | 27,152 |
Investment in unconsolidated affiliates | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 3,367 | 3,071 |
Maximum Loss Exposure | 5,733 | 4,806 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 21,991 | 20,837 |
Maximum Loss Exposure | $ 23,442 | $ 22,346 |
Investments - Schedules of Investment Concentrations (Details) - Stockholders' Equity, Total - Investment Risk Concentration - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Blackstone Wave Asset Holdco | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | $ 733 | $ 725 |
ELBA | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | 457 | 463 |
COLI | ||
Schedule of Investments [Line Items] | ||
Investment owned, at fair value | $ 0 | $ 324 |
Derivative Financial Instruments - Carrying Amounts of Derivative Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 1,188 | $ 977 |
Total liability derivatives | 4,698 | 4,258 |
Derivative investments | Call options | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | 1,015 | 739 |
Derivative investments | Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | 9 | 57 |
Derivative investments | Forward Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | 0 | 1 |
Other long-term investments | Embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | 30 | 28 |
Prepaid expenses and other assets | Reinsurance related embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | 134 | 152 |
Contractholder funds | Indexed annuities/ IUL embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total liability derivatives | 4,679 | 4,258 |
Accounts payable and accrued liabilities | Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total liability derivatives | $ 19 | $ 0 |
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Derivative [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Recognized gains and (losses), net | Recognized gains and (losses), net |
Call options | ||
Derivative [Line Items] | ||
Recognized gains and (losses), net | $ 250 | $ 55 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Recognized gains and (losses), net | (80) | 0 |
Futures contracts | ||
Derivative [Line Items] | ||
Recognized gains and (losses), net | 6 | 5 |
Foreign currency forwards | ||
Derivative [Line Items] | ||
Recognized gains and (losses), net | 3 | (1) |
Embedded derivatives | ||
Derivative [Line Items] | ||
Recognized gains and (losses), net | 3 | 1 |
Reinsurance related embedded derivatives | ||
Derivative [Line Items] | ||
Recognized gains and (losses), net | (18) | (19) |
Total net investment gains | ||
Derivative [Line Items] | ||
Recognized gains and (losses), net | 164 | 41 |
Indexed annuities/ IUL embedded derivatives increase | ||
Derivative [Line Items] | ||
Recognized gains and (losses), net | $ 421 | $ 454 |
Derivative Financial Instruments - Narrative (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
contract
|
Dec. 31, 2023
USD ($)
contract
|
|
All Counterparties Except Merrill Lynch | ||
Derivative [Line Items] | ||
Counterparties, collateral required threshold | 0.00% | |
Embedded derivatives | ||
Derivative [Line Items] | ||
Term of contract, term one | 1 year | |
Term of contract, term two | 2 years | |
Term of contract, term three | 3 years | |
Term of contract, term four | 5 years | |
Call options | Derivatives for Trading and Investment | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral | $ 968 | $ 775 |
Net credit risk | 46 | 39 |
Call options | Cash and Cash Equivalents | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Collateral | $ 740 | $ 588 |
Futures contracts | ||
Derivative [Line Items] | ||
Number of instruments held | contract | 379 | 439 |
Collateral held | $ 4 | $ 4 |
Derivative Financial Instruments - Information Regarding Exposure to Credit Loss on Call Options Held (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 1,188 | $ 977 |
Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 32,521 | 29,968 |
Fair Value | 1,005 | 796 |
Collateral | 968 | 775 |
Net Credit Risk | 46 | 39 |
Merrill Lynch | Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,340 | 4,408 |
Fair Value | 132 | 96 |
Collateral | 93 | 59 |
Net Credit Risk | 39 | 37 |
Morgan Stanley | Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,353 | 3,466 |
Fair Value | 159 | 102 |
Collateral | 166 | 116 |
Net Credit Risk | 0 | 0 |
Barclay's Bank | Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,389 | 6,236 |
Fair Value | 124 | 102 |
Collateral | 122 | 100 |
Net Credit Risk | 2 | 2 |
Canadian Imperial Bank of Commerce | Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 5,552 | 5,983 |
Fair Value | 163 | 147 |
Collateral | 163 | 148 |
Net Credit Risk | 0 | 0 |
Wells Fargo | Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,313 | 1,443 |
Fair Value | 69 | 58 |
Collateral | 70 | 60 |
Net Credit Risk | 0 | 0 |
Goldman Sachs | Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,340 | 1,919 |
Fair Value | 45 | 45 |
Collateral | 44 | 45 |
Net Credit Risk | 1 | 0 |
Credit Suisse | Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 16 | 92 |
Fair Value | 1 | 4 |
Collateral | 1 | 4 |
Net Credit Risk | 0 | 0 |
Truist | Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,185 | 2,759 |
Fair Value | 135 | 124 |
Collateral | 134 | 124 |
Net Credit Risk | 1 | 0 |
Citibank | Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,145 | 1,073 |
Fair Value | 25 | 27 |
Collateral | 26 | 28 |
Net Credit Risk | 0 | 0 |
JP Morgan | Call Options and Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,888 | 2,589 |
Fair Value | 152 | 91 |
Collateral | 149 | 91 |
Net Credit Risk | $ 3 | $ 0 |
Reinsurance - Effect of Reinsurance on Premiums Earned and Benefits Incurred and Reserve Changes Table (Details) - Life Insurance Product Line - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Net Premiums Earned | ||
Direct | $ 620 | $ 301 |
Ceded | (24) | (26) |
Net | 596 | 275 |
Net Benefits Incurred | ||
Direct | 1,213 | 872 |
Ceded | (52) | (60) |
Net | $ 1,161 | $ 812 |
Reinsurance - Narrative (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
policy
|
Mar. 31, 2023
USD ($)
|
|
Insurance [Abstract] | ||
Number of policies reinsured by foreign company not engaged in insurance | policy | 0 | |
Reinsurance risk charge fees | $ | $ 10 | $ 10 |
Reinsurance - Summary of Reinsurance Recoverable (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | $ 10,133 | $ 8,981 | ||
Allowance for expected credit loss | (21) | (21) | $ (9) | $ (10) |
Reinsurance recoverable, net of allowance for credit losses | $ 10,112 | $ 8,960 | ||
Reinsurance, retrocession, quota share basis, percentage | 90.00% | 90.00% | ||
Aspida Re | Certain MYGA | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | $ 6,489 | $ 6,128 | ||
Somerset | Certain MYGA and DA | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | 1,250 | 716 | ||
Wilton Reassurance Company | Block of traditional, IUL and UL | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | 1,085 | 1,092 | ||
Everlake Life Insurance Company | Certain MYGA | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | 791 | 509 | ||
Other | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverable, gross of allowance for credit losses | $ 518 | $ 536 |
Reinsurance - Allowance for Credit Loss (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ (21) | $ (10) |
Changes in the expected credit loss reserve | 0 | 1 |
Balance at End of Period | $ (21) | $ (9) |
Intangibles - Reconciliation of Other Intangibles to Balance Sheet (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||||
VOBA | $ 1,407 | $ 1,446 | $ 1,572 | $ 1,615 |
DAC | 2,412 | 2,215 | ||
DSI | 392 | 346 | $ 225 | |
Total Other intangible assets, net | 4,612 | 4,207 | ||
Indefinite lived tradenames and other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite lived tradenames and other | 8 | 8 | ||
Value of distribution asset | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 83 | 86 | ||
Computer software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 68 | 65 | ||
Definite lived trademarks, tradenames, and other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | 72 | 41 | ||
Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite lived | $ 170 | $ 0 |
Intangibles - VOBA (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
VOBA | ||
VOBA at beginning of period | $ 1,446 | $ 1,615 |
Amortization | (39) | (43) |
VOBA at end of period | 1,407 | 1,572 |
Indexed annuities | ||
VOBA | ||
VOBA at beginning of period | 1,025 | 1,166 |
Amortization | (33) | (36) |
VOBA at end of period | 992 | 1,130 |
Fixed rate annuities | ||
VOBA | ||
VOBA at beginning of period | 27 | 32 |
Amortization | (1) | (1) |
VOBA at end of period | 26 | 31 |
Immediate Annuities | ||
VOBA | ||
VOBA at beginning of period | 191 | 201 |
Amortization | (2) | (3) |
VOBA at end of period | 189 | 198 |
Universal Life | ||
VOBA | ||
VOBA at beginning of period | 134 | 143 |
Amortization | (2) | (2) |
VOBA at end of period | 132 | 141 |
Traditional Life | ||
VOBA | ||
VOBA at beginning of period | 69 | 73 |
Amortization | (1) | (1) |
VOBA at end of period | $ 68 | $ 72 |
Intangibles - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
VOBA amortization | $ (39) | $ (43) |
DAC amortization | (60) | (35) |
Indexed annuities | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
VOBA amortization | (33) | (36) |
DAC amortization | (33) | (22) |
Finite-Lived Intangible Assets [Line Items] | ||
DSI amortization | $ (8) | $ (4) |
Intangibles - DAC (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
DAC | ||
DAC at beginning of period | $ 2,211 | $ 1,402 |
Capitalization | 257 | 221 |
Amortization | (60) | (35) |
Reinsurance related adjustments | 79 | |
DAC at end of period | 2,408 | 1,667 |
Indexed annuities | ||
DAC | ||
DAC at beginning of period | 1,378 | 971 |
Capitalization | 147 | 113 |
Amortization | (33) | (22) |
Reinsurance related adjustments | 0 | |
DAC at end of period | 1,492 | 1,062 |
Fixed rate annuities | ||
DAC | ||
DAC at beginning of period | 288 | 83 |
Capitalization | 44 | 52 |
Amortization | (19) | (5) |
Reinsurance related adjustments | 79 | |
DAC at end of period | 313 | 209 |
Universal Life | ||
DAC | ||
DAC at beginning of period | 545 | 348 |
Capitalization | 66 | 56 |
Amortization | (8) | (8) |
Reinsurance related adjustments | 0 | |
DAC at end of period | $ 603 | $ 396 |
Intangibles - Reconciliation of DAC to the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
DAC | $ 2,412 | $ 2,215 |
Indexed annuities | ||
Finite-Lived Intangible Assets [Line Items] | ||
DAC | 1,492 | 1,378 |
Fixed rate annuities | ||
Finite-Lived Intangible Assets [Line Items] | ||
DAC | 313 | 288 |
Universal Life | ||
Finite-Lived Intangible Assets [Line Items] | ||
DAC | 603 | 545 |
Funding Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
DAC | $ 4 | $ 4 |
Intangibles - DSI (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Movement in Deferred Sales Inducements [Roll Forward] | ||
DSI at beginning of period | $ 346 | |
DSI at end of period | 392 | $ 225 |
Indexed annuities | ||
Movement in Deferred Sales Inducements [Roll Forward] | ||
DSI at beginning of period | 346 | 200 |
Capitalization | 54 | 29 |
Amortization | (8) | $ (4) |
DSI at end of period | $ 392 |
Intangibles - Rollforward Of Customer Relationship Intangibles Acquired in the Roar Acquisition (Details) - Customer Relationships $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Finite-Lived Intangible Assets [Line Items] | |
Balance, Beginning | $ 0 |
Balance, Ending | 170 |
Roar | |
Finite-Lived Intangible Assets [Line Items] | |
Balance, Beginning | 0 |
Acquired | 179 |
Amortization | (9) |
Balance, Ending | $ 170 |
Intangibles - Estimated Amortization Expense for Customer Relationship and VOBA in Future Fiscal Periods (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Present Value of Future Insurance Profits, Expected Amortization, Next Five Years [Abstract] | ||||
2024 | $ 111 | |||
2025 | 138 | |||
2026 | 126 | |||
2027 | 115 | |||
2028 | 105 | |||
Thereafter | 812 | |||
Total | 1,407 | $ 1,446 | $ 1,572 | $ 1,615 |
Customer Relationships | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2024 | 24 | |||
2025 | 28 | |||
2026 | 23 | |||
2027 | 19 | |||
2028 | 16 | |||
Thereafter | 60 | |||
Total | $ 170 | $ 0 |
Market Risk Benefits - Balances and Changes in Market Risk Benefit (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Market Risk Benefit [Line Items] | ||
Balance, beginning of period, net liability | $ 315 | |
Balance, end of period, net liability | 330 | $ 315 |
Indexed annuities | ||
Market Risk Benefit [Line Items] | ||
Balance, beginning of period, net liability | 314 | 164 |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 209 | 102 |
Issuances and benefit payments | 12 | (10) |
Attributed fees collected and interest accrual | 36 | 131 |
Actual policyholder behavior different from expected | 8 | 27 |
Changes in assumptions and other | (2) | 29 |
Effects of market related movements | (37) | (70) |
Balance, end of period, before effect of changes in the instrument-specific credit risk | 226 | 209 |
Instrument-specific credit risk - market risk benefits | 103 | 105 |
Balance, end of period, net liability | $ 329 | $ 314 |
Weighted-average attained age of policyholders weighted by total AV (years) | 68 years 2 months 12 days | 68 years 3 months 10 days |
Net amount at risk | $ 1,091 | $ 1,059 |
Fixed rate annuities | ||
Market Risk Benefit [Line Items] | ||
Balance, beginning of period, net liability | 1 | 1 |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 1 | 1 |
Issuances and benefit payments | 0 | 0 |
Attributed fees collected and interest accrual | 0 | 0 |
Actual policyholder behavior different from expected | 0 | 0 |
Changes in assumptions and other | 0 | 0 |
Effects of market related movements | 0 | 0 |
Balance, end of period, before effect of changes in the instrument-specific credit risk | 1 | 1 |
Instrument-specific credit risk - market risk benefits | 0 | 0 |
Balance, end of period, net liability | $ 1 | $ 1 |
Weighted-average attained age of policyholders weighted by total AV (years) | 72 years 6 months 18 days | 72 years 7 months 2 days |
Net amount at risk | $ 2 | $ 2 |
Market Risk Benefits - Reconciliation of Asset and Liability (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Market Risk Benefit [Line Items] | |||
Market risk benefits asset | $ 95 | $ 88 | |
Market risk benefits liability | 425 | 403 | |
Net | 330 | 315 | |
Indexed annuities | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits asset | 95 | 88 | |
Market risk benefits liability | 424 | 402 | |
Net | 329 | 314 | $ 164 |
Fixed rate annuities | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits asset | 0 | 0 | |
Market risk benefits liability | 1 | 1 | |
Net | $ 1 | $ 1 | $ 1 |
Income Taxes - Additional (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 18.00% | 4.00% | ||
Deferred tax assets, valuation allowance | $ 86 | $ 85 | ||
Deferred tax assets | 431 | $ 473 | ||
Valuation allowance, increase | 1 | |||
LIHTC investments | $ 120 | $ 108 |
Income Taxes - Impacts of LIHTC Investments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Tax credits and other benefits recognized | $ (8) | $ (6) |
Tax credit amortization expense | 6 | 5 |
Total | $ 2 | $ 1 |
Contractholder Funds - Summary of Balances and Changes in Contractholder Funds (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | $ 48,798 | ||
Balance, end of year | 50,875 | $ 48,798 | |
Change in fair value of other derivatives and embedded derivatives | 3 | $ 2 | |
Gross Liability, end of period | 50,875 | 48,798 | |
Reinsurance recoverable, net of allowance for credit losses of $21 and $21 at March 31, 2024 and December 31, 2023, respectively | (10,112) | (8,960) | |
Indexed annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | 27,164 | 24,766 | 24,766 |
Issuances | 1,381 | 4,722 | |
Premiums received | 28 | 103 | |
Policy charge | (46) | (182) | |
Surrenders and withdrawals | (690) | (2,005) | |
Benefit payments | (119) | (526) | |
Interest credited | 139 | 270 | |
Other | 5 | 16 | |
Balance, end of year | 27,862 | 27,164 | |
Change in fair value of other derivatives and embedded derivatives | 468 | 243 | |
Gross Liability, end of period | 28,330 | 27,407 | |
Reinsurance recoverable, net of allowance for credit losses of $21 and $21 at March 31, 2024 and December 31, 2023, respectively | (13) | (17) | |
Net Liability, after Reinsurance | $ 28,317 | $ 27,390 | |
Weighted-average crediting rate | 2.04% | 1.40% | |
Cash surrender value | $ 25,724 | $ 25,099 | |
Fixed rate annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | 13,443 | 9,358 | 9,358 |
Issuances | 1,341 | 5,061 | |
Premiums received | 0 | 1 | |
Policy charge | 0 | 0 | |
Surrenders and withdrawals | (364) | (1,142) | |
Benefit payments | (76) | (240) | |
Interest credited | 142 | 405 | |
Other | 0 | 0 | |
Balance, end of year | 14,486 | 13,443 | |
Change in fair value of other derivatives and embedded derivatives | 0 | 0 | |
Gross Liability, end of period | 14,486 | 13,443 | |
Reinsurance recoverable, net of allowance for credit losses of $21 and $21 at March 31, 2024 and December 31, 2023, respectively | (8,612) | (7,520) | |
Net Liability, after Reinsurance | $ 5,874 | $ 5,923 | |
Weighted-average crediting rate | 4.15% | 4.85% | |
Cash surrender value | $ 13,502 | $ 12,505 | |
Universal Life | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | 2,391 | 2,112 | 2,112 |
Issuances | 51 | 199 | |
Premiums received | 114 | 382 | |
Policy charge | (74) | (261) | |
Surrenders and withdrawals | (22) | (90) | |
Benefit payments | (5) | (27) | |
Interest credited | 33 | 76 | |
Other | 0 | 0 | |
Balance, end of year | 2,488 | 2,391 | |
Change in fair value of other derivatives and embedded derivatives | 107 | 84 | |
Gross Liability, end of period | 2,595 | 2,475 | |
Reinsurance recoverable, net of allowance for credit losses of $21 and $21 at March 31, 2024 and December 31, 2023, respectively | (894) | (894) | |
Net Liability, after Reinsurance | $ 1,701 | $ 1,581 | |
Weighted-average crediting rate | 5.54% | 3.44% | |
Net amount at risk | $ 63,968 | $ 60,389 | |
Cash surrender value | 1,938 | 1,872 | |
Funding Agreements, FABN | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | 2,613 | 2,613 | 2,613 |
Issuances | 0 | 0 | |
Premiums received | 0 | 0 | |
Policy charge | 0 | 0 | |
Surrenders and withdrawals | 0 | 0 | |
Benefit payments | (16) | (53) | |
Interest credited | 14 | 54 | |
Other | 0 | (1) | |
Balance, end of year | 2,611 | 2,613 | |
Change in fair value of other derivatives and embedded derivatives | 0 | 0 | |
Gross Liability, end of period | 2,611 | 2,613 | |
Reinsurance recoverable, net of allowance for credit losses of $21 and $21 at March 31, 2024 and December 31, 2023, respectively | 0 | 0 | |
Net Liability, after Reinsurance | 2,611 | 2,613 | |
Federal Home Loan Bank Funding Agreements | |||
Policyholder Account Balance [Roll Forward] | |||
Balance, beginning of year | 2,539 | $ 1,982 | 1,982 |
Issuances | 305 | 1,256 | |
Premiums received | 0 | 0 | |
Policy charge | 0 | 0 | |
Surrenders and withdrawals | 0 | 0 | |
Benefit payments | (329) | (763) | |
Interest credited | 24 | 64 | |
Other | 0 | 0 | |
Balance, end of year | 2,539 | 2,539 | |
Change in fair value of other derivatives and embedded derivatives | 0 | 0 | |
Gross Liability, end of period | 2,539 | 2,539 | |
Reinsurance recoverable, net of allowance for credit losses of $21 and $21 at March 31, 2024 and December 31, 2023, respectively | 0 | 0 | |
Net Liability, after Reinsurance | $ 2,539 | $ 2,539 |
Contractholder Funds - Reconciliation to Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Policyholder Account Balance [Line Items] | ||
Contractholder funds | $ 50,875 | $ 48,798 |
Indexed annuities | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 28,330 | 27,407 |
Fixed rate annuities | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 14,486 | 13,443 |
Immediate annuities | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 304 | 311 |
Universal Life | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 2,595 | 2,475 |
Traditional Life | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 5 | 5 |
Funding Agreements, FABN | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 2,611 | 2,613 |
Federal Home Loan Bank Funding Agreements | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | 2,539 | 2,539 |
PRT | ||
Policyholder Account Balance [Line Items] | ||
Contractholder funds | $ 5 | $ 5 |
Contractholder Funds - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Insurance [Abstract] | |
Change in total benefits and other changes in policy reserves (decrease) increase | $ 57 |
Contractholder Funds - Account Values by Range of Guaranteed Minimum Credit Rating (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
---|---|---|---|
Policyholder Account Balance [Line Items] | |||
Contractholder funds | $ 50,875 | $ 48,798 | |
1 Basis Point-50 Basis Points Above | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0001 | 0.0001 | |
1 Basis Point-50 Basis Points Above | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0050 | 0.0050 | |
51 Basis Points-150 Basis Points Above | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0051 | 0.0051 | |
51 Basis Points-150 Basis Points Above | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | |
Greater Than 150 Basis Points Above | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | |
Indexed annuities | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | $ 27,862 | $ 27,164 | $ 24,766 |
Indexed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 23,355 | 22,965 | |
Indexed annuities | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,393 | 1,446 | |
Indexed annuities | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 615 | 550 | |
Indexed annuities | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,499 | 2,203 | |
Indexed annuities | 0.00% to 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 26,515 | 26,315 | |
Indexed annuities | 0.00% to 1.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 22,671 | 22,392 | |
Indexed annuities | 0.00% to 1.50% | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,391 | 1,444 | |
Indexed annuities | 0.00% to 1.50% | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 522 | 526 | |
Indexed annuities | 0.00% to 1.50% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,931 | 1,953 | |
Indexed annuities | 1.51% to 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 993 | 471 | |
Indexed annuities | 1.51% to 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 331 | 196 | |
Indexed annuities | 1.51% to 2.50% | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1 | 1 | |
Indexed annuities | 1.51% to 2.50% | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 93 | 24 | |
Indexed annuities | 1.51% to 2.50% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 568 | 250 | |
Indexed annuities | Greater Than 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 354 | 378 | |
Indexed annuities | Greater Than 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 353 | 377 | |
Indexed annuities | Greater Than 2.50% | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1 | 1 | |
Indexed annuities | Greater Than 2.50% | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Indexed annuities | Greater Than 2.50% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Fixed rate annuities | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 14,486 | 13,443 | 9,358 |
Fixed rate annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 910 | 921 | |
Fixed rate annuities | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 33 | 35 | |
Fixed rate annuities | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,365 | 1,559 | |
Fixed rate annuities | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 12,178 | 10,928 | |
Fixed rate annuities | 0.00% to 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 12,659 | 11,851 | |
Fixed rate annuities | 0.00% to 1.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 36 | 23 | |
Fixed rate annuities | 0.00% to 1.50% | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 24 | 25 | |
Fixed rate annuities | 0.00% to 1.50% | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,340 | 1,532 | |
Fixed rate annuities | 0.00% to 1.50% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 11,259 | 10,271 | |
Fixed rate annuities | 1.51% to 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 488 | 489 | |
Fixed rate annuities | 1.51% to 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 4 | 5 | |
Fixed rate annuities | 1.51% to 2.50% | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 7 | 8 | |
Fixed rate annuities | 1.51% to 2.50% | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 21 | 23 | |
Fixed rate annuities | 1.51% to 2.50% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 456 | 453 | |
Fixed rate annuities | Greater Than 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1,339 | 1,103 | |
Fixed rate annuities | Greater Than 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 870 | 893 | |
Fixed rate annuities | Greater Than 2.50% | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2 | 2 | |
Fixed rate annuities | Greater Than 2.50% | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 4 | 4 | |
Fixed rate annuities | Greater Than 2.50% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 463 | 204 | |
Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,488 | 2,391 | $ 2,112 |
Universal Life | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,454 | 2,348 | |
Universal Life | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 11 | 21 | |
Universal Life | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1 | 1 | |
Universal Life | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 22 | 21 | |
Universal Life | 0.00% to 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,113 | 2,013 | |
Universal Life | 0.00% to 1.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 2,085 | 1,987 | |
Universal Life | 0.00% to 1.50% | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 6 | 5 | |
Universal Life | 0.00% to 1.50% | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | 0.00% to 1.50% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 22 | 21 | |
Universal Life | 1.51% to 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | 1.51% to 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | 1.51% to 2.50% | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | 1.51% to 2.50% | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | 1.51% to 2.50% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 0 | 0 | |
Universal Life | Greater Than 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 375 | 378 | |
Universal Life | Greater Than 2.50% | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 369 | 361 | |
Universal Life | Greater Than 2.50% | 1 Basis Point-50 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 5 | 16 | |
Universal Life | Greater Than 2.50% | 51 Basis Points-150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | 1 | 1 | |
Universal Life | Greater Than 2.50% | Greater Than 150 Basis Points Above | |||
Policyholder Account Balance [Line Items] | |||
Contractholder funds | $ 0 | $ 0 |
Future Policy Benefits - Summary Balances and Changes in the Present Value of Expected Net Premiums and Present Value of FPB (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Net liability for future policy benefits | $ 7,441 | $ 7,050 | |
Traditional Life | |||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||
Balance, beginning of year | 722 | 797 | |
Beginning balance at original discount rate | 874 | 974 | |
Effect of actual variances from expected experience | (4) | $ (1) | |
Balance adjusted for variances from expectation | 870 | 973 | |
Interest accrual | 4 | 19 | |
Net premiums collected | (28) | (118) | |
Ending Balance at original discount rate | 846 | 874 | |
Effect of changes in discount rate assumptions | (157) | (152) | |
Balance, end of year | 689 | 722 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of year | 2,071 | 2,151 | |
Beginning balance of original discount rate | 2,492 | 2,665 | |
Effect of actual variances from expected experience | (9) | (24) | |
Balance adjusted for variances from expectation | 2,483 | 2,641 | |
Interest accrual | 14 | 56 | |
Benefits payments | (51) | (205) | |
Ending Balance at original discount rate | 2,446 | 2,492 | |
Effect of changes in discount rate assumptions | (439) | (421) | |
Balance, end of year | 2,007 | 2,071 | |
Net liability for future policy benefits | 1,318 | 1,349 | |
Less: Reinsurance recoverable | 483 | 413 | |
Net liability for future policy benefits, after reinsurance recoverable | $ 835 | $ 936 | |
Weighted-average duration of liability for future policyholder benefits (years) | 6 years 11 months 15 days | 7 years 4 months 9 days | |
PRT | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of year | $ 4,189 | $ 2,165 | |
Beginning balance of original discount rate | 4,351 | 2,475 | |
Effect of changes in cash flow assumptions | 11 | (9) | |
Effect of actual variances from expected experience | (8) | (7) | |
Balance adjusted for variances from expectation | 4,354 | 2,459 | |
Issuances | 596 | 2,041 | |
Interest accrual | 49 | 109 | |
Benefits payments | (107) | (258) | |
Ending Balance at original discount rate | 4,892 | 4,351 | |
Effect of changes in discount rate assumptions | (237) | (162) | |
Balance, end of year | 4,655 | 4,189 | |
Net liability for future policy benefits | 4,655 | 4,189 | |
Less: Reinsurance recoverable | 0 | 0 | |
Net liability for future policy benefits, after reinsurance recoverable | $ 4,655 | $ 4,189 | |
Weighted-average duration of liability for future policyholder benefits (years) | 7 years 11 months 15 days | 8 years 2 months 23 days | |
Immediate annuities | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of year | $ 1,415 | $ 1,429 | |
Beginning balance of original discount rate | 1,788 | 1,858 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of actual variances from expected experience | (4) | (15) | |
Balance adjusted for variances from expectation | 1,784 | $ 1,843 | |
Issuances | 7 | 22 | |
Interest accrual | 14 | 51 | |
Benefits payments | (29) | (128) | |
Ending Balance at original discount rate | 1,776 | 1,788 | |
Effect of changes in discount rate assumptions | (404) | (373) | |
Balance, end of year | 1,372 | 1,415 | |
Net liability for future policy benefits | 1,372 | 1,415 | |
Less: Reinsurance recoverable | 113 | 116 | |
Net liability for future policy benefits, after reinsurance recoverable | $ 1,259 | $ 1,299 | |
Weighted-average duration of liability for future policyholder benefits (years) | 12 years 10 days | 12 years 5 months 19 days |
Future Policy Benefits - Summary of Balances and Changes in the Deferred Profit Liability (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Immediate annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance, beginning of year | $ 87 | $ 69 | |
Effect of modeling changes | 0 | $ 4 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of actual variances from expected experience | 2 | 16 | |
Balance adjusted for variances from expectation | 89 | 89 | |
Issuances | 1 | 3 | |
Interest accrual | 0 | 2 | |
Amortization | (2) | (7) | |
Balance, end of year | 88 | 87 | |
PRT | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance, beginning of year | 10 | 4 | |
Effect of modeling changes | 0 | 0 | |
Effect of changes in cash flow assumptions | (4) | 1 | |
Effect of actual variances from expected experience | 2 | 5 | |
Balance adjusted for variances from expectation | 8 | $ 10 | |
Issuances | 0 | 0 | |
Interest accrual | 0 | 1 | |
Amortization | 0 | (1) | |
Balance, end of year | $ 8 | $ 10 |
Future Policy Benefits - Reconciliation of Net FPB to the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future policy benefits | $ 7,441 | $ 7,050 | |
Traditional Life | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future policy benefits | 1,318 | 1,349 | |
Immediate annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future policy benefits | 1,372 | 1,415 | |
Deferred profit liability | 88 | 87 | $ 69 |
PRT | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Future policy benefits | 4,655 | 4,189 | |
Deferred profit liability | 8 | 10 | $ 4 |
Immediate annuities DPL | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Deferred profit liability | 88 | 87 | |
PRT DPL | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Deferred profit liability | $ 8 | $ 10 |
Future Policy Benefits - Liability for Future Policy Benefit Expected Future Policy Benefit Undiscounted (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Mar. 31, 2023 |
---|---|---|
Traditional Life | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | $ 2,874 | $ 3,073 |
Expected future gross premiums | 1,042 | 1,142 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 2,013 | 2,155 |
Expected future gross premiums | 751 | 839 |
Immediate annuities | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | 3,271 | 3,402 |
Expected future gross premiums | 0 | 0 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 1,371 | 1,452 |
Expected future gross premiums | 0 | 0 |
PRT | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit, Undiscounted [Abstract] | ||
Expected future benefit payments | 8,344 | 3,916 |
Expected future gross premiums | 0 | 0 |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Discounted [Abstract] | ||
Expected future benefit payments | 4,899 | 2,708 |
Expected future gross premiums | $ 0 | $ 0 |
Future Policy Benefits - Gross Premium Income and Interest Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | $ 620 | $ 301 |
Interest expense | 73 | 48 |
Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 28 | 32 |
Interest expense | 10 | 9 |
Immediate annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 8 | 6 |
Interest expense | 14 | 16 |
PRT | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premium income | 584 | 263 |
Interest expense | $ 49 | $ 23 |
Future Policy Benefits - Weighted Average Rates (Details) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 1.74% | 2.33% |
Current discount rate | 4.64% | 5.03% |
Immediate annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 3.16% | 3.14% |
Current discount rate | 5.20% | 4.98% |
PRT | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest accretion rate | 4.68% | 4.61% |
Current discount rate | 5.30% | 5.03% |
Future Policy Benefits - Actual Experience and Expected Experience for Mortality and Lapses (Details) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Actual experience | Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 1.20% | 1.70% |
Lapse rate | 0.00% | 0.00% |
Actual experience | Immediate annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 3.20% | 3.20% |
Lapse rate | 0.00% | 0.00% |
Actual experience | PRT | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 4.20% | 3.20% |
Lapse rate | 0.00% | 0.00% |
Expected experience | Traditional Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 1.40% | 1.40% |
Lapse rate | 0.40% | 0.30% |
Expected experience | Immediate annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 2.30% | 1.80% |
Lapse rate | 0.00% | 0.00% |
Expected experience | PRT | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Mortality rate | 2.80% | 2.30% |
Lapse rate | 0.00% | 0.00% |
Accounts Payable and Accrued Liabilities - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Payables and Accruals [Abstract] | ||
URL | $ 301 | $ 270 |
Accounts Payable and Accrued Liabilities - Reconciliation (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Payables and Accruals [Abstract] | ||
Salaries and incentives | $ 48 | $ 99 |
Accrued benefits | 65 | 60 |
URL | 301 | 270 |
Trade accounts payable | 176 | 297 |
Liability for policy and contract claims | 93 | 92 |
Retained asset account | 74 | 81 |
Remittances and items not allocated | 236 | 284 |
Option collateral liabilities | 740 | 588 |
Lease liability | 11 | 11 |
Investment purchases payable | 193 | 21 |
Contingent consideration | 57 | 0 |
Interest rate swaps | 19 | 0 |
Other accrued liabilities | 224 | 208 |
Accounts payable and accrued liabilities | $ 2,237 | $ 2,011 |
Accounts Payable and Accrued Liabilities - Rollforward of Unearned Revenue Liabilities (URL) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Contract With Customer Liability [Roll Forward] | ||
Balance, beginning | $ 270 | |
Balance, ending | 301 | |
Universal Life | ||
Contract With Customer Liability [Roll Forward] | ||
Balance, beginning | 270 | $ 166 |
Capitalization | 35 | 27 |
Amortization | (4) | (3) |
Balance, ending | $ 301 | $ 190 |
Notes Payable - Components of Notes Payable (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Dec. 06, 2023 |
Jan. 13, 2023 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Notes payable | $ 1,748 | $ 1,754 | ||
7.95% Senior Notes Due 2053 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 7.95% | 7.95% | ||
Debt issuance costs | $ 9 | 9 | ||
Notes payable | $ 336 | 336 | ||
7.40% Senior Notes Due 2028 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 7.40% | 7.40% | ||
Debt issuance costs | $ 4 | 5 | ||
Notes payable | $ 496 | 495 | ||
5.50% F&G Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.50% | |||
Debt issuance costs | $ 9 | 11 | ||
Notes payable | 559 | 561 | ||
Credit Agreement | Revolving Credit Facility | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | 8 | 3 | ||
Notes payable | $ 357 | $ 362 |
Notes Payable - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Feb. 16, 2024 |
Feb. 15, 2024 |
Dec. 06, 2023 |
Jan. 13, 2023 |
|
Credit Agreement | Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 750 | $ 665 | ||||
Credit facility, remaining borrowing available | $ 385 | |||||
Average variable interest rate | 7.09% | 7.11% | ||||
7.95% Senior Notes Due 2053 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 7.95% | 7.95% | ||||
7.40% Senior Notes Due 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 7.40% | 7.40% | ||||
5.50% F&G Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 5.50% |
Notes Payable - Interest Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 06, 2023 |
Jan. 13, 2023 |
|
Debt Instrument [Line Items] | ||||
Interest expense | $ 30 | $ 22 | ||
7.95% F&G Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 7.95% | 7.95% | ||
Interest expense | $ 8 | 0 | ||
7.40% F&G Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 7.40% | 7.40% | ||
Interest expense | $ 10 | 8 | ||
5.50% F&G Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 5.50% | |||
Interest expense | $ 6 | 6 | ||
Revolving Credit Facility | Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 6 | $ 8 |
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Cash paid for: | ||
Interest | $ 32 | $ 9 |
Income taxes | 1 | 0 |
Deferred sales inducements | 54 | 29 |
Non-cash investing and financing activities: | ||
Change in proceeds of sales of investments available for sale receivable in period | (23) | 22 |
Change in purchases of investments available for sale payable in period | $ 171 | $ 79 |
Commitments and Contingencies - Narrative (Details) shares in Thousands, $ in Millions |
1 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jan. 12, 2024 |
Jan. 02, 2024
USD ($)
|
Sep. 07, 2023
lawsuit
|
Apr. 19, 2023
USD ($)
|
Apr. 30, 2024
USD ($)
|
Aug. 31, 2020
shares
|
Mar. 31, 2024
USD ($)
lawsuit
|
|
Roar | |||||||
Loss Contingencies [Line Items] | |||||||
Contingent consideration obligation, payments (up to) | $ 90 | ||||||
Contingent consideration liability payment period | 3 years | 3 years | |||||
Other assets | |||||||
Loss Contingencies [Line Items] | |||||||
Loan agreement with seller (up to) | $ 173 | ||||||
Commitment to Invest | |||||||
Loss Contingencies [Line Items] | |||||||
Loan agreement with seller (up to) | 4,225 | ||||||
Loan Commitment | Roar | |||||||
Loss Contingencies [Line Items] | |||||||
Loan agreement, maturity period | 60 days | ||||||
Loan outstanding | $ 0 | ||||||
Loan Commitment | Roar | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Loan agreement with seller (up to) | $ 40 | ||||||
Damages from Data Breach | |||||||
Loss Contingencies [Line Items] | |||||||
Similar lawsuits against other entities ( over) | lawsuit | 150 | ||||||
In the Matter of FGL Holdings | |||||||
Loss Contingencies [Line Items] | |||||||
Number of shares in which statutory appraisal rights have been claimed (in shares) | shares | 12,000 | ||||||
Pending Litigation | Damages from Data Breach | |||||||
Loss Contingencies [Line Items] | |||||||
Lawsuits filed | lawsuit | 2 | ||||||
In the Matter of FGL Holdings | Settled Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Amount awarded from other party | $ 4 | ||||||
In the Matter of FGL Holdings | Settled Litigation | Subsequent Event | |||||||
Loss Contingencies [Line Items] | |||||||
Proceeds from Legal Settlements | $ 2 | ||||||
Cooper v. Progress Software Corp., No. 1:23-cv-12067 | |||||||
Loss Contingencies [Line Items] | |||||||
Number of defendants | lawsuit | 5 |
Commitments and Contingencies - Unfunded Commitments (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
---|---|
Limited partnerships | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 2,366 |
Whole loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 678 |
Fixed maturity securities, ABS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 341 |
Direct Lending | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 530 |
Other fixed maturity securities, AFS | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 11 |
Commercial mortgage loans | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 82 |
Other assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 173 |
Other invested assets | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 44 |
Commitment to Invest | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 4,225 |
Insurance Subsidiary Financial Information and Regulatory Matters - Statutory Accounting Practices Disclosure (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Corbeau Re | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital surplus (deficit) | $ 156 | ||
IOWA | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital surplus (deficit) | 1,940 | $ 2,009 | |
IOWA | F&G Segment | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 0 | $ (3) | |
New York | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital surplus (deficit) | 89 | 86 | |
New York | F&G Segment | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 2 | 1 | |
Vermont | Raven Reinsurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital surplus (deficit) | 155 | 140 | |
Vermont | Raven Reinsurance Company | F&G Segment | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 15 | 14 | |
Vermont | Corbeau Re | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital surplus (deficit) | 171 | ||
Vermont | Corbeau Re | F&G Segment | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | (134) | 0 | |
Cayman Islands | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | (31) | 35 | |
Statutory capital surplus (deficit) | 143 | 114 | |
Bermuda | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | 49 | $ 68 | |
Statutory capital surplus (deficit) | $ 61 | $ 11 |
Acquisition - Narrative (Details) - USD ($) $ in Millions |
Jan. 12, 2024 |
Jan. 02, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Contingent consideration obligation | $ 57 | $ 0 | ||
Roar | ||||
Business Acquisition [Line Items] | ||||
Ownership interests acquired | 70.00% | |||
Cash consideration | $ 269 | |||
Contingent consideration obligation | 48 | |||
Contingent consideration obligation, payments (up to) | $ 90 | |||
Contingent consideration liability payment period | 3 years | 3 years | ||
Revenue of acquiree | $ 23 | |||
Earnings or loss of acquiree | $ 3 |
Acquisition - Initial Purchase Price (Details) - USD ($) $ in Millions |
Jan. 02, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Contingent consideration obligation | $ 57 | $ 0 | |
Roar | |||
Business Acquisition [Line Items] | |||
Ownership interests acquired | 70.00% | ||
Cash consideration | $ 269 | ||
Less: Cash acquired net of noncontrolling interests | 1 | ||
Net cash paid for 70% majority interest of Roar | 268 | ||
Contingent consideration obligation | 48 | ||
Total net initial consideration | $ 316 |
Acquisition - Fair Value Amounts Expected to be Recognized for Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Jan. 02, 2024 |
Dec. 31, 2023 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 2,017 | $ 1,749 | |
Roar | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 268 | ||
Prepaid expenses and other assets | 3 | ||
Other intangible assets | 183 | ||
Total assets acquired | 454 | ||
Accounts payable and accrued liabilities | 2 | ||
Total liabilities assumed | 2 | ||
Noncontrolling interests (fair value determined using income approach) | 136 | ||
Total liabilities assumed and non-controlling interests | 138 | ||
Net assets acquired | $ 316 |
Acquisition - Gross Carrying Value and Weighted Average Estimated Useful Lives of Other Intangible Assets (Details) - Roar $ in Millions |
Jan. 02, 2024
USD ($)
|
---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | |
Other intangible assets, gross carrying value | $ 183 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Other intangible assets, gross carrying value | $ 179 |
Estimated useful life (in years) | 12 years |
Definite lived trademarks, tradenames, and other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Other intangible assets, gross carrying value | $ 4 |
Estimated useful life (in years) | 10 years |
Acquisition - Proforma Information (Details) - Roar $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Business Acquisition [Line Items] | |
Total revenues | $ 881 |
Net earnings (loss) attributable to F&G shareholders | $ (202) |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net earnings (loss) | $ 116 | $ (195) |
Less: Noncontrolling interests | 1 | 0 |
Net earnings (loss) attributable to F&G | 115 | (195) |
Less: Preferred stock dividend | 4 | 0 |
Net earnings (loss) attributable to F&G common shareholders | $ 111 | $ (195) |
Weighted average shares outstanding F&G common stock, basic basis (in shares) | 124,000 | 125,000 |
Dilutive effect of unvested restricted stock (in shares) | 1,000 | |
Dilutive effect of mandatory convertible preferred stock | 5,000 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 130,000 | 125,000 |
Net earnings (loss) per share attributable to F&G common shareholders | ||
Basic - net (in usd per share) | $ 0.90 | $ (1.56) |
Diluted - net (in usd per share) | $ 0.88 | $ (1.56) |
Restricted Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Dilutive effect of unvested restricted stock (in shares) | 0 |
Earnings Per Share - Narrative (Details) shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
shares
| |
Common Stock | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 125,000 |
Restricted Stock | Restricted Stock | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 120 |
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