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Investments (Tables)

12 Months Ended

Dec. 31, 2021


Net Investment Income
	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 Years Ended December 31,
(Before tax)					2020		2019
Fixed maturities [1]	$	174	$	243	$	518	$	586
Equity securities	10		2		7		6
Mortgage loans	32		45		92		92
Policy loans	36		40		82		84
Limited partnerships and other alternative investments	259		216		130		161
Other [2]	1		1		13		19
Investment expense	(14)		(13)		(26)		(24)
Total net investment income	$	498	$	534	$	816	$	924

[1] Includes net investment income on short-term investments.

[2] Includes income from derivatives that qualify for hedge accounting and hedge fixed maturities along with income on assets from the COLI block of business.

Realized Gain (Loss) on Investments


Net Realized Capital Gains (Losses)
	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 Years Ended December 31,
(Before tax)					2020		2019
Gross gains on sales	$	14	$	55	$	166	$	67
Gross losses on sales	(20)		(8)		(32)		(18)
Net realized gains (losses) on sales of equity securities	19		—		—		—
Change in net unrealized gains (losses) on equity securities [1]	(2)		—		1		2
Net credit losses on fixed maturities, AFS [2]	—		—		(1)
Change in ACL on mortgage loans [3]	—		6		(8)
Intent-to-sell impairments	—		—		(6)		—
Net other-than-temporary impairments ("OTTI") losses recognized in earnings							(4)


Results of variable annuity hedge program:
GMWB derivatives, net					82		53
Macro hedge program	(67)		(243)		(414)		(418)


Total results of variable annuity hedge program	(67)		(243)		(332)		(365)


Transactional foreign currency revaluation	—		—		3		(4)
Non-qualifying foreign currency derivatives	5		(2)		(7)		(4)
Modified coinsurance reinsurance derivative contracts	15		22		(50)		(55)
Other, net [4]	16		(72)		192		106
Net realized capital losses	$	(20)	$	(242)	$	(74)	$	(275)

[1] The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2021, were $(3) for the period of July 1, 2021 to December 31, 2021 (Successor Company). The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of June 30, 2021, were $1 for the six months ended June 30, 2021 (Predecessor Company). The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2020, were $4 for the year ended December 31, 2020 (Predecessor Company). The net unrealized gains (losses) on equity securities included in net

realized capital gains (losses) related to equity securities still held as of December 31, 2019 were $(2) for year ended December 31, 2019 (Predecessor Company).

[2] Due to the adoption of accounting guidance for credit losses on January 1, 2020, realized capital losses previously reported as OTTI are now presented as credit losses which are net of any recoveries. For further information, refer to Note 1 - Basis of Presentation and Significant Accounting Policies.

[3] Represents the change in ACL recorded during the period following the adoption of accounting guidance for credit losses on January 1, 2020. For further information, refer to Note 1 - Basis of Presentation and Significant Accounting Policies.

[4] Includes gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $37 for the period of July 1, 2021 to December 31, 2021 (Successor Company), $(54) for the six months ended June 30, 2021 (Predecessor Company), and $149 and $54 for the years ended December 31, 2020 and 2019, respectively (Predecessor Company).

Debt Securities, Available-for-sale


Sales of AFS Securities
	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 Years Ended December 31,
					2020		2019
Fixed maturities, AFS
Sale proceeds	$	2,372	$	1,007	$	1,789	$	2,541
Gross gains	14		55		165		67
Gross losses	(16)		(8)		(31)		(16)

Debt Securities, Available-for-sale, Allowance for Credit Loss

ACL on Fixed Maturities, AFS by Type for the Period of July 1, 2021 to December 31, 2021 (Successor Company)

(Before tax)

Corporate

Total

Balance, beginning of period

—

Credit losses on fixed maturities where an allowance was not previously recorded

—

Balance, end of period

—


ACL on Fixed Maturities, AFS by Type for the Six Months Ended June 30, 2021 (Predecessor Company)
(Before tax)	Corporate		Total
Balance, beginning of period	$	1	$	1
Credit losses on fixed maturities where an allowance was not previously recorded	—		—


Balance, end of period	$	1	$	1


ACL on Fixed Maturities, AFS by Type for the Year Ended December 31, 2020 (Predecessor Company)
(Before tax)	Corporate		Total
Balance, beginning of period	$	—	$	—
Credit losses on fixed maturities where an allowance was not previously recorded	1		1


Balance, end of period	$	1	$	1

Other than Temporary Impairment, Credit Losses Recognized in Earnings


Cumulative Credit Impairments on Fixed Maturities, AFS (Predecessor Company)
	For the Year Ended December 31, 2019
(Before tax)
Balance as of beginning of period	$	(6)
Additions for credit impairments recognized on [1]:
Fixed maturities not previously impaired	(4)

Reductions for credit impairments previously recognized on:
Fixed maturities that matured or were sold during the period	6

Fixed maturities due to an increase in expected cash flows	—
Balance as of end of period	$	(4)

[1] These additions are included in net realized capital gains (losses) on the Consolidated Statements of Operations.

Schedule of Available-for-sale Securities Reconciliation


Fixed Maturities, AFS by Type
	Successor Company										Predecessor Company
	December 31, 2021										December 31, 2020
	Amortized Cost		ACL		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost [1]		ACL		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
ABS	$	260	$	—	$	—	$	(2)	$	258	$	436	$	—	$	8	$	—	$	444
CLOs	945		—		—		(1)		944		1,425		—		7		(4)		1,428
CMBS	2,345		—		4		(14)		2,335		1,152		—		77		(11)		1,215
Corporate	13,380		—		50		(73)		13,357		7,240		(1)		1,296		(12)		8,552
Foreign government/government agencies	365		—		1		(4)		362		236		—		32		—		266
Municipal bonds	1,452		—		10		(6)		1,456		761		—		115		(1)		875
RMBS	818		—		—		(7)		811		745		—		26		(2)		769
U.S. Treasuries	1,421		—		28		(1)		1,448		1,142		—		192		(8)		1,326
Total fixed maturities, AFS	$	20,986	$	—	$	93	$	(108)	$	20,971	$	13,137	$	(1)	$	1,753	$	(38)	$	14,875

[1] The cost or amortized cost of assets that support modified coinsurance reinsurance contracts were not adjusted as part of the application of pushdown accounting. As a result, gross unrealized gains (losses) only include subsequent changes in value recorded in AOCI beginning June 1, 2018. Prior changes in value have been recorded in additional paid-in capital.

Investments Classified by Contractual Maturity Date


Fixed Maturities, AFS by Contractual Maturity Year
	Successor Company				Predecessor Company
	December 31, 2021				December 31, 2020
Contractual Maturity	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	341	$	341	$	238	$	241
Over one year through five years	2,904		2,890		1,376		1,462
Over five years through ten years	5,248		5,241		1,808		2,052
Over ten years	8,125		8,151		5,957		7,264
Subtotal	16,618		16,623		9,379		11,019
Mortgage-backed and asset-backed securities	4,368		4,348		3,758		3,856
Total fixed maturities, AFS	$	20,986	$	20,971	$	13,137	$	14,875

Schedule of Unrealized Loss on Investments

Unrealized Losses on Fixed Maturities, AFS


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2021
Successor Company
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	252	$	(2)	$	—	$	—	$	252	$	(2)
CLOs	751		(1)		—		—		751		(1)
CMBS	961		(14)		—		—		961		(14)
Corporate	5,788		(73)		—		—		5,788		(73)
Foreign government/government agencies	173		(4)		—		—		173		(4)
Municipal	337		(6)		—		—		337		(6)
RMBS	537		(7)		—		—		537		(7)
U.S. Treasuries	217		(1)		—		—		217		(1)
Total fixed maturities, AFS in an unrealized loss position	$	9,016	$	(108)	$	—	$	—	$	9,016	$	(108)


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2020
Predecessor Company
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	—	$	—	$	16	$	—	$	16	$	—
CLOs	346		(1)		411		(3)		757		(4)
CMBS	214		(11)		2		—		216		(11)
Corporate	110		(9)		63		(3)		173		(12)
Foreign government/government agencies	1		—		—		—		1		—
Municipal	28		(1)		—		—		28		(1)
RMBS	223		(1)		39		(1)		262		(2)
U.S. Treasuries	236		(8)		—		—		236		(8)
Total fixed maturities, AFS in an unrealized loss position	$	1,158	$	(31)	$	531	$	(7)	$	1,689	$	(38)

Financing Receivable, Allowance for Credit Loss


ACL on Mortgage Loans
	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 Years Ended December 31,
					2020		2019
Beginning balance	$	—	$	17	$	—	$	5
Cumulative effect of accounting changes [1]					9
Cumulative effect of pushdown accounting	12
Adjusted beginning balance ACL [2]	12		17		9		5
Current period provision (release)	—		(6)		8		(5)
Ending balance	$	12	$	11	$	17	$	—

[1] Represents the establishment of ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information, refer to Note 1 - Basis of Presentation and Significant Accounting Policies.

[2] Prior to adoption of accounting guidance for credit losses on January 1, 2020, amounts were presented as a valuation allowance on mortgage loans.

Financing Receivable Credit Quality Indicators


Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2021 (Successor Company)
	2021			2020			2019			2018			2017			2016 & Prior			Total
Loan-to-Value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR

65% - 80%	7		2.37x	18		2.62x	25		1.55x	43		1.00x	41		1.94x	37		1.23x	171		1.60x
Less than 65%	378		2.68x	160		2.43x	234		2.89x	270		2.00x	235		2.27x	695		2.54x	1,972		2.50x
Total mortgage loans	$	385	2.68x	$	178	2.45x	$	259	2.76x	$	313	1.86x	$	276	2.22x	$	732	2.47x	$	2,143	2.42x

[1] As of December 31, 2021 (Successor Company), the amortized cost of mortgage loans excludes ACL of $12.


Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2020 (Predecessor Company)
	2020			2019			2018			2017			2016			2015 & Prior			Total
Loan-to-Value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR

65% - 80%	6		1.24x	78		1.56x	175		1.75x	94		1.98x	1		2.95x	54		1.12x	408		1.68x
Less than 65%	164		2.26x	207		2.95x	178		2.24x	248		2.35x	176		2.90x	728		2.29x	1,701		2.44x
Total mortgage loans	$	170	2.23x	$	285	2.56x	$	353	1.99x	$	342	2.25x	$	177	2.90x	$	782	2.21x	$	2,109	2.29x

[1] As of December 31, 2020 (Predecessor Company), the amortized cost of mortgage loans excludes ACL of $17.

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate


Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2020 (Predecessor Company)
	2020			2019			2018			2017			2016			2015 & Prior			Total
Loan-to-Value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR

65% - 80%	6		1.24x	78		1.56x	175		1.75x	94		1.98x	1		2.95x	54		1.12x	408		1.68x
Less than 65%	164		2.26x	207		2.95x	178		2.24x	248		2.35x	176		2.90x	728		2.29x	1,701		2.44x
Total mortgage loans	$	170	2.23x	$	285	2.56x	$	353	1.99x	$	342	2.25x	$	177	2.90x	$	782	2.21x	$	2,109	2.29x


Mortgage Loans by Region
	Successor Company				Predecessor Company
	December 31, 2021				December 31, 2020
	Amortized Cost [1]		Percent of Total		Amortized Cost [1]		Percent of Total
East North Central	$	78	3.6	%	$	80	3.8	%
East South Central	20		0.9	%	19		0.9	%
Middle Atlantic	152		7.1	%	154		7.3	%
Mountain	142		6.6	%	78		3.7	%
New England	87		4.1	%	83		3.9	%
Pacific	559		26.1	%	562		26.7	%
South Atlantic	627		29.3	%	569		27.0	%

West South Central	184		8.6	%	213		10.1	%
Other [2]	294		13.7	%	351		16.6	%
Total mortgage loans	$	2,143	100	%	$	2,109	100	%

[1] As of December 31, 2021 (Successor Company) and 2020 (Predecessor Company), the amortized cost of mortgage loans excludes ACL of $12 and $17, respectively.

[2] Primarily represents loans collateralized by multiple properties in various regions.


Mortgage Loans by Property Type
	Successor Company				Predecessor Company
	December 31, 2021				December 31, 2020
	Amortized Cost [1]		Percent of Total		Amortized Cost [1]		Percent of Total
Commercial

Industrial	$	711	33.2	%	$	602	28.6	%
Lodging	—		—	%	22		1.0	%
Multifamily	590		27.5	%	536		25.4	%
Office	423		19.7	%	481		22.8	%
Retail	403		18.8	%	418		19.8	%
Single Family	16		0.8	%	50		2.4	%

Total mortgage loans	$	2,143	100	%	$	2,109	100	%

[1] As of December 31, 2021 (Successor Company) and 2020 (Predecessor Company), the amortized cost of mortgage loans excludes ACL of $12 and $17, respectively.

Offsetting Liabilities


Repurchase Agreements
	Successor Company		Predecessor Company
	December 31, 2021		December 31, 2020
	Fair Value		Fair Value




Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	663	$	262
Gross amount of collateral pledged related to repurchase agreements [1]	$	679	$	267
Gross amount of recognized receivables for reverse repurchase agreements [2]	$	44	$	28

[1] Collateral pledged is included within fixed maturities, AFS and short-term investments on the Company's Consolidated Balance Sheets.

[2] Collateral received is included within short-term investments on the Company's Consolidated Balance Sheets.


Offsetting Derivative Assets and Liabilities (Successor Company)
	(i)		(ii)		(iii) = (i) - (ii)						(v) = (iii) - (iv)
					Net Amounts Presented on the Statement of Financial Position				Collateral Disallowed for Offset on the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset on the Statement of Financial Position		Derivative Assets [1] (Liabilities) [2]		Accrued Interest and Cash Collateral (Received) [3] Pledged [2]		Financial Collateral (Received) Pledged [4]		Net Amount
As of December 31, 2021 (Successor Company)
Other investments	$	176	$	162	$	43	$	(29)	$	5	$	9
Other liabilities	(385)		(134)		(252)		1		(251)		—
As of December 31, 2020 (Predecessor Company)
Other investments	$	304	$	295	$	12	$	(3)	$	—	$	9
Other liabilities	(772)		(279)		(480)		(13)		(488)		(5)

[1] Included in other invested assets on the Company's Consolidated Balance Sheets.

[2] Included in other liabilities on the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

[3] Included in other investments on the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

[4] Excludes collateral associated with exchange-traded derivative instruments.