Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Assets and (liabilities) carried at fair value by hierarchy level

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2021 (Successor Company)
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets Accounted for at Fair Value on a Recurring Basis
Fixed maturities, AFS
Asset backed securities ("ABS")	$	258	$	—	$	258	$	—
Collateralized loan obligations ("CLOs")	944		—		785		159
Commercial mortgage-backed securities ("CMBS")	2,335		—		2,059		276
Corporate	13,357		39		12,653		665
Foreign government/government agencies	362		—		362		—
Municipal	1,456		—		1,455		1
Residential mortgage-backed securities ("RMBS")	811		—		737		74
U.S. Treasuries	1,448		127		1,321		—
Total fixed maturities	20,971		166		19,630		1,175
Equity securities, at fair value	203		11		171		21
Derivative assets
Credit derivatives	2		—		2		—
Foreign exchange derivatives	7		—		7		—
Interest rate derivatives	18		—		15		3
Macro hedge program	16		—		(11)		27
Total derivative assets [1]	43		—		13		30
Short-term investments	1,254		744		435		75
Reinsurance recoverable for GMWB	(8)		—		—		(8)
Separate account assets [2]	110,021		69,089		40,449		79
Total assets accounted for at fair value on a recurring basis	$	132,484	$	70,010	$	60,698	$	1,372
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
FIA embedded derivative	$	(655)	$	—	$	—	$	(655)
GMWB embedded derivative	80		—		—		80
Total other policyholder funds and benefits payable	(575)		—		—		(575)
Derivative liabilities
Foreign exchange derivatives	2		—		2		—
Interest rate derivatives	(25)		—		(22)		(3)
Macro hedge program	(229)		—		(14)		(215)
Total derivative liabilities [3]	(252)		—		(34)		(218)
Modified coinsurance reinsurance contracts	15		—		15		—
Total liabilities accounted for at fair value on a recurring basis	$	(812)	$	—	$	(19)	$	(793)

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2020 (Predecessor Company)
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets Accounted for at Fair Value on a Recurring Basis
Fixed maturities, AFS
ABS	$	444	$	—	$	444	$	—
CLOs	1,428		—		1,169		259
CMBS	1,215		—		1,161		54
Corporate	8,552		—		8,224		328
Foreign government/government agencies	266		—		266		—
Municipal	875		—		875		—
RMBS	769		—		615		154
U.S. Treasuries	1,326		117		1,209		—
Total fixed maturities	14,875		117		13,963		795
Equity securities, at fair value	65		11		22		32
Derivative assets
Foreign exchange derivatives	(1)		—		(1)		—
Interest rate derivatives	6		—		4		2
Macro hedge program	7		—		7		—
Total derivative assets [1]	12		—		10		2
Short-term investments	802		586		194		22
Reinsurance recoverable for GMWB	7		—		—		7
Separate account assets [2]	108,748		67,679		40,609		20
Total assets accounted for at fair value on a recurring basis	$	124,509	$	68,393	$	54,798	$	878
Liabilities accounted for at fair value on a recurring basis
Other policyholder funds and benefits payable
GMWB embedded derivative	$	21	$	—	$	—	$	21
Total other policyholder funds and benefits payable	21		—		—		21
Derivative liabilities
Foreign exchange derivatives	(1)		—		(1)		—
Interest rate derivatives	(19)		—		(19)		—
Macro hedge program	(460)		—		(19)		(441)
Total derivative liabilities [3]	(480)		—		(39)		(441)
Modified coinsurance reinsurance contracts	(93)		—		(93)		—
Total liabilities accounted for at fair value on a recurring basis	$	(552)	$	—	$	(132)	$	(420)

[1]    Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 3 to this table for derivative liabilities.

[2]    Approximately $1.6 billion and $877 of investment sales receivables, as of December 31, 2021 (Successor Company) and 2020 (Predecessor Company), respectively, are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Included in the total fair value amount are $404 and $441 of investments, as of December 31, 2021 (Successor Company) and 2020 (Predecessor Company), respectively, for which the fair value is estimated using the net asset value per unit as a practical expedient which are excluded from the disclosure requirement to classify amounts in the fair value hierarchy.

[3]    Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law.

Fair Value Measurement Inputs and Valuation Techniques

Significant Unobservable Inputs for Level 3 - Securities
As of December 31, 2021 (Successor Company)
Assets Accounted for at Fair Value on a Recurring Basis	Fair Value		Predominant Valuation Technique	Significant Unobservable Input	Minimum	Maximum	Weighted Average [1]	Impact of Increase in Input on Fair Value [2]
CLOs [3]	$	159	Discounted cash flows	Spread	234bps	258bps	257bps	Decrease
CMBS [3]	276		Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	203bps	637bps	303bps	Decrease
Corporate [4]	623		Discounted cash flows	Spread	125bps	1,227bps	278bps	Decrease
RMBS [3]	65		Discounted cash flows	Spread [6]	39bps	229bps	90bps	Decrease
				Constant prepayment rate [6]	4%	16%	8%	Decrease [5]
				Constant default rate [6]	1%	4%	3%	Decrease
				Loss severity [6]	—%	100%	64%	Decrease
As of December 31, 2020 (Predecessor Company)
Assets accounted for at Fair Value on a Recurring Basis	Fair Value		Predominant Valuation Technique	Significant Unobservable Input	Minimum	Maximum	Weighted Average [1]	Impact of Increase in Input on Fair Value [2]
CLOs [3]	$	259	Discounted cash flows	Spread	249bps	305bps	304bps	Decrease
CMBS [3]	49		Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	255bps	1,582bps	570bps	Decrease
Corporate [4]	269		Discounted cash flows	Spread	116bps	1,210bps	304bps	Decrease
RMBS [3]	154		Discounted cash flows	Spread [6]	7bps	592bps	119bps	Decrease
				Constant prepayment rate [6]	—%	10%	5%	Decrease [5]
				Constant default rate [6]	2%	6%	3%	Decrease
				Loss severity [6]	—%	100%	81%	Decrease

[1]    The weighted average is determined based on the fair value of the securities.

[2]    Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

[3]    Excludes securities for which the Company bases fair value on broker quotations.

[4]    Excludes securities for which the Company bases fair value on broker quotations; however, included are broker-priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.

[5]    Decrease for above market rate coupons and increase for below market rate coupons.

[6]    Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads.

The tables below exclude certain securities for which fair values are predominately based on independent broker quotes.

Significant Unobservable Inputs for Level 3 - Freestanding Derivatives
As of December 31, 2021 (Successor Company)
	Fair Value		Predominant Valuation Technique	Significant Unobservable Input	Minimum	Maximum	Weighted Average [1]	Impact of Increase in Input on Fair Value [2]
Interest rate derivatives
Interest rate swaps	$	3	Discounted cash flows	Swap curve beyond 30 years	2%	2%	2%	Decrease
Interest rate swaptions	(3)		Option model	Interest rate volatility	1%	1%	1%	Increase
Macro hedge program [3] [4]
Equity options	(195)		Option model	Equity volatility	17%	63%	28%	Increase
Interest rate swaption	7		Option model	Interest rate volatility	1%	1%	1%	Increase
As of December 31, 2020 (Predecessor Company)
	Fair Value		Predominant Valuation Technique	Significant Unobservable Input	Minimum	Maximum	Weighted Average [1]	Impact of Increase in Input on Fair Value [2]
Interest rate derivatives
Interest rate swaps	$	2	Discounted cash flows	Swap curve beyond 30 years	1%	1%	1%	Decrease
Macro hedge program [3] [4]
Equity options	(471)		Option model	Equity volatility	—%	53%	31%	Increase
Customized swaps	21		Discounted cash flows	Equity volatility	16%	26%	19%	Increase
Interest rate swaption	9		Option model	Interest rate volatility	1%	1%	1%	Increase

[1]    The weighted average is determined based on the fair value of the securities.

[2]    Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.

[3]    Excludes derivatives for which the Company bases fair value on broker quotations.

[4]    Includes activity previously reported as GMWB hedging instruments. For further discussion please refer to the section GMWB Derivatives, net in Note 4 - Derivatives of Notes to Consolidated Financial Statements.

Significant Unobservable Inputs for Level 3 GMWB Embedded, Customized and Reinsurance Derivatives
As of December 31, 2021 (Successor Company)
	Unobservable Inputs (Minimum)	Unobservable Inputs (Maximum)	Weighted Average	Impact of Increase in Input on Fair Value Liability [1]
Withdrawal utilization [2]	—%	100%	62%	Increase
Withdrawal rates [3]	4%	8%	6%	Increase
Lapse rates [4]	—%	48%	5%	Decrease [8]
Reset elections [5]	—%	99%	8%	Decrease [8]
Equity volatility [6]	11%	25%	21%	Increase
Credit standing adjustment [7]	0.03%	0.15%	0.09%	Decrease
As of December 31, 2020 (Predecessor Company)
	Unobservable Inputs (Minimum)	Unobservable Inputs (Maximum)	Weighted Average	Impact of Increase in Input on Fair Value Liability [1]
Withdrawal utilization [2]	—%	100%	62%	Increase
Withdrawal rates [3]	4%	8%	6%	Increase
Lapse rates [4]	—%	55%	5%	Decrease [8]
Reset elections [5]	—%	99%	8%	Decrease [8]
Equity volatility [6]	16%	28%	21%	Increase
Credit standing adjustment [7]	0.18%	0.45%	0.34%	Decrease
Significant Unobservable Inputs for Level 3 FIA Embedded Derivative
As of December 31, 2021 (Successor Company)
	Unobservable Inputs (Minimum)	Unobservable Inputs (Maximum)	Weighted Average	Impact of Increase in Input on Fair Value Liability [1]
Withdrawal rates [3]	—%	16%	2%	Decrease
Lapse rates [4]	1%	34%	6%	Decrease
Option budgets [9]	1%	4%	2%	Increase
Credit standing adjustment [7]	0.01%	0.08%	0.05%	Decrease

[1]    Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

[2]    Range represents assumed percentages of policyholders taking withdrawals.

[3]    Range represents assumed annual percentage of allowable amount withdrawn.

[4]    Range represents assumed annual percentages of policyholders electing a full surrender.

[5]    Range represents assumed annual percentages of eligible policyholders electing to reset their guaranteed benefit base.

[6]    Range represents implied market volatilities for equity indices based on multiple pricing sources.

[7]    Range represents Company credit spreads, adjusted for market recoverability.

[8]    The impact may be an increase for some contracts, particularly those with out of the money guarantees.

[9]    Range represents assumed annual budget for index options.

Roll-forward of Financial Instruments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the period of July 1, 2021 to December 31, 2021 (Successor Company), for which the Company used significant unobservable inputs (Level 3):

Fair Value Rollforwards for Financial Instruments Classified as Level 3
			Total Realized/Unrealized Gains (Losses)
	Fair Value as of July 1, 2021		Included in Net Income [1] [2] [6]		Included in OCI [3]		Purchases		Settlements		Sales		Transfers into Level 3 [4]		Transfers out of Level 3 [4]		Fair Value as of December 31, 2021
Assets
Fixed maturities, AFS
ABS	$	8	$	—	$	—	$	—	$	—	$	—	$	—	$	(8)	$	—
CLOs	248		—		—		34		(64)		—		—		(59)		159
CMBS	143		—		(2)		136		(1)		—		—		—		276
Corporate	460		3		(2)		245		(30)		(11)		—		—		665
Municipal	—		—		—		—		—		—		1		—		1
RMBS	108		—		—		29		(29)		(19)		—		(15)		74
Total fixed maturities, AFS	967		3		(4)		444		(124)		(30)		1		(82)		1,175
Equity securities, at fair value	33		20		—		—		(32)		—		—		—		21
Freestanding derivatives
Interest rate	2		2		—		(4)		—		—		—		—		—
Total freestanding derivatives [5]	2		2		—		(4)		—		—		—		—		—
Reinsurance recoverable for GMWB	(6)		(8)		—		—		6		—		—		—		(8)
Separate accounts	15		—		—		71		—		(5)		4		(6)		79
Short-term investments	14		—		—		88		(27)		—		—		—		75
Total assets	$	1,025	$	17	$	(4)	$	599	$	(177)	$	(35)	$	5	$	(88)	$	1,342
Liabilities
Freestanding derivatives
Macro hedge program	$	(237)	$	153	$	—	$	(1)	$	(103)	$	—	$	—	$	—	$	(188)
Total freestanding derivatives [5]	(237)		153		—		(1)		(103)		—		—		—		(188)
Other policyholder funds and benefits payable
FIA embedded derivative	—		—		—		(655)		—		—		—		—		(655)
Guaranteed withdrawal benefits	77		29		—		—		(26)		—		—		—		80
Total other policyholder funds and benefits payable	77		29		—		(655)		(26)		—		—		—		(575)
Total liabilities	$	(160)	$	182	$	—	$	(656)	$	(129)	$	—	$	—	$	—	$	(763)

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the six months ended June 30, 2021 (Predecessor Company), for which the Company used significant unobservable inputs (Level 3):

Fair Value Rollforwards for Financial Instruments Classified as Level 3
			Total Realized/Unrealized Gains (Losses)
	Fair Value as of December 31, 2020		Included in Net Income [1] [2] [6]		Included in OCI [3]		Purchases		Settlements		Sales		Transfers into Level 3 [4]		Transfers out of Level 3 [4]		Fair Value as of June 30, 2021
Assets
Fixed maturities, AFS
ABS	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	(2)	$	8
CLOs	259		—		—		50		(36)		—		—		(25)		248
CMBS	54		—		2		90		—		—		2		(5)		143
Corporate	328		—		(6)		132		(23)		(9)		53		(15)		460
RMBS	154		—		1		5		(34)		(15)		—		(3)		108
Total fixed maturities, AFS	795		—		(3)		287		(93)		(24)		55		(50)		967
Equity securities, at fair value	32		—		—		1		—		—		—		—		33
Freestanding derivatives
Interest rate	2		—		—		—		—		—		—		—		2
Total freestanding derivatives [5]	2		—		—		—		—		—		—		—		2
Reinsurance recoverable for GMWB	7		(19)		—		—		6		—		—		—		(6)
Separate accounts	20		—		—		2		—		(4)		2		(5)		15
Short-term investments	22		—		—		2		(10)		—		—		—		14
Total assets	$	878	$	(19)	$	(3)	$	292	$	(97)	$	(28)	$	57	$	(55)	$	1,025
Liabilities
Freestanding derivatives
Macro hedge program	$	(441)	$	385	$	—	$	12	$	(193)	$	—	$	—	$	—	$	(237)
Total freestanding derivatives [5]	(441)		385		—		12		(193)		—		—		—		(237)
Other policyholder funds and benefits payable
Guaranteed withdrawal benefits	21		82		—		—		(26)		—		—		—		77
Total other policyholder funds and benefits payable	21		82		—		—		(26)		—		—		—		77
Total liabilities	$	(420)	$	467	$	—	$	12	$	(219)	$	—	$	—	$	—	$	(160)

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the year ended December 31, 2020 (Predecessor Company), for which the Company used significant unobservable inputs (Level 3):

Fair Value Rollforwards for Financial Instruments Classified as Level 3
			Total Realized/Unrealized Gains (Losses)
	Fair Value as of December 31, 2019		Included in Net Income [1] [2] [6]		Included in OCI [3]		Purchases		Settlements		Sales		Transfers into Level 3 [4]		Transfers out of Level 3 [4]		Fair Value as of December 31, 2020
Assets
Fixed maturities, AFS
ABS	$	13	$	—	$	(1)	$	40	$	—	$	—	$	—	$	(52)	$	—
CLOs	58		—		2		237		(28)		—		—		(10)		259
CMBS	37		—		(3)		18		—		—		2		—		54
Corporate	387		2		12		51		(40)		(24)		357		(417)		328
RMBS	247		—		—		57		(64)		(28)		—		(58)		154
Total fixed maturities, AFS	742		2		10		403		(132)		(52)		359		(537)		795
Equity securities, at fair value	33		—		—		1		—		(2)		—		—		32
Freestanding derivatives
Interest rate	(2)		4		—		—		—		—		—		—		2
GWMB hedging instruments	38		(38)		—		—		—		—		—		—		—
Total freestanding derivatives [5]	36		(34)		—		—		—		—		—		—		2
Reinsurance recoverable for GMWB	17		(21)		—		—		11		—		—		—		7
Separate accounts	23		—		—		12		—		(7)		—		(8)		20
Short-term investments	6		—		—		22		(6)		—		—		—		22
Total assets	$	857	$	(53)	$	10	$	438	$	(127)	$	(61)	$	359	$	(545)	$	878
Liabilities
Freestanding derivatives
Macro hedge program	(113)		(456)		—		339		(211)		—		—		—		(441)
Total freestanding derivatives [5]	(113)		(456)		—		339		(211)		—		—		—		(441)
Other policyholder funds and benefits payable
Guaranteed withdrawal benefits	5		67		—		—		(51)		—		—		—		21
Total other policyholder funds and benefits payable	5		67		—		—		(51)		—		—		—		21
Total liabilities	$	(108)	$	(389)	$	—	$	339	$	(262)	$	—	$	—	$	—	$	(420)

[1]    The Company classifies realized and unrealized gains (losses) on FIA and GMWB reinsurance derivatives and GMWB embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives.

[2]    Amounts in these columns are generally reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization.

[3]    All amounts are before income taxes and amortization.

[4]    Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

[5]    Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Consolidated Balance Sheets in other investments and other liabilities.

[6]    Includes both market and non-market impacts in deriving realized and unrealized gains (losses).

Changes in Unrealized Gains (Losses) Included in Net Income for Financial Instruments Classified as Level 3 Still Held at End of Period [1] [2]
	Successor Company		Predecessor Company
	For the Period of July 1, 2021 to December 31, 2021		For the Six Months Ended June 30, 2021		For the Year Ended December 31, 2020
Assets
Freestanding derivatives
Interest rate	$	2	$	(40)	$	6
GMWB hedging instruments [3]					(16)
Total freestanding derivatives	2		(40)		(10)
Reinsurance recoverable for GMWB	(8)		(19)		(21)
Total assets	(6)		(59)		(31)
Liabilities
Freestanding derivatives
Macro hedge program [3]	(63)		(121)		(212)
Total freestanding derivatives	(63)		(121)		(212)
Other policyholder funds and benefits payable
Guaranteed withdrawal benefits	29		82		67
Total other policyholder funds and benefits payable	29		82		67
Total liabilities	$	(34)	$	(39)	$	(145)

[1]    All amounts presented are reported in net realized capital gains (losses).The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization.

[2]    Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.

[3]    The dynamic hedge program, which included GMWB hedging instruments, was closed in the first half of 2020. Any risks previously covered by the dynamic hedging are now covered by the macro hedge program.

Changes in Unrealized Gains (Losses) Included in OCI for Financial Instruments Classified as Level 3 Still Held at End of Period [1]
	Successor Company		Predecessor Company
	For the Period of July 1, 2021 to December 31, 2021		For the Six Months Ended June 30, 2021		For the Year Ended December 31, 2020
Assets
Fixed maturities, AFS
CLOs	$	—	$	—	$	1
CMBS	(2)		3		(3)
Corporate	(2)		(4)		7
RMBS	—		1		(1)
Total fixed maturities, AFS	(4)		—		4
Total assets	$	(4)	$	—	$	4

[1]    Changes in unrealized gains (losses) on fixed maturities, AFS are reported in changes in net unrealized gain on fixed maturities, AFS on the Consolidated Statements of Comprehensive Income (Loss).

Fair Value Disclosure of Asset and Liability Not Measured at Fair Value

Financial Assets and Liabilities Not Carried at Fair Value
	Fair Value Hierarchy Level	Successor Company				Predecessor Company
		Carrying Amount [1]		Fair Value		Carrying Amount [1]		Fair Value
		December 31, 2021				December 31, 2020
Assets
Policy loans	Level 3	$	1,484	$	1,484	$	1,452	$	1,452
Mortgage loans [1]	Level 3	$	2,131	$	2,138	$	2,092	$	2,248
Liabilities
Other policyholder funds and benefits payable [2]	Level 3	$	5,137	$	4,792	$	5,282	$	5,261
Funds withheld liability	Level 3	$	6,379	$	6,379

[1]    As of December 31, 2021 (Successor Company) and 2020 (Predecessor Company), the carrying amount of mortgage loans was net of ACL of $12 and $17, respectively.

[2]    Excludes group accident and health and universal life insurance contracts, including Corporate Owned Life Insurance ("COLI").