Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows:

Level 1    Fair values based primarily on unadjusted quoted prices for identical assets, or liabilities, in active markets that the Company has the ability to access at the measurement date.

Level 2    Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities.

Level 3    Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers.

The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3.

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.

Fixed Maturities, Equity Securities, Short-term Investments and Freestanding Derivatives

Valuation Techniques

The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order:

•Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1.

•Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3.

•Internal matrix pricing is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s sector, financial strength, and term to maturity, using an independent public security index, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the significant inputs are observable or can be corroborated with observable data.

•Independent broker quotes, which are typically non-binding use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3.

The fair value of freestanding derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporates counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Unobservable market data is used in the valuation of customized derivatives that are used to hedge certain GMWB variable annuity riders. See the section “GMWB Embedded, Customized, and Reinsurance Derivatives” below for further discussion of the valuation model used to value these customized derivatives.

Valuation Inputs

Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded futures and option contracts.

Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Freestanding Derivatives
	Level 2 Primary Observable Inputs	Level 3 Primary Unobservable Inputs
Fixed Maturity Investments
Structured securities (includes ABS, CLOs, CMBS and RMBS)
	• Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS, CLOs, and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral	• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity
Corporates
	• Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature	• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities and private bank loans: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature
U.S Treasuries, Municipals, and Foreign government/government agencies
	• Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements	• Credit spreads beyond observable curve • Interest rates beyond observable curve
Equity Securities
	• Quoted prices in markets that are not active	• For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable
Short-term Investments
	• Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates	• Independent broker quotes
Derivatives
Credit derivatives
	• Swap yield curve • Credit default swap curves	Not applicable
Foreign exchange derivatives
	• Swap yield curve • Currency spot and forward rates • Cross currency basis curves	Not applicable
Interest rate derivatives
	• Swap yield curve	• Independent broker quotes • Interest rate volatility • Swap curve beyond 30 years

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.

GMWB and FIA Embedded, Customized and Reinsurance Derivatives

GMWB Embedded Derivatives

The Company formerly offered certain variable annuity products with GMWB riders that provide the policyholder with a GRB which is generally equal to premiums less withdrawals. If the policyholder’s account value is reduced to a specified level through a combination of market declines and withdrawals but the GRB still has value, the Company is obligated to continue to make annuity payments to the policyholder until the GRB is exhausted. When payments of the GRB are not life-contingent, the GMWB represents an embedded derivative carried at fair value reported in other policyholder funds and benefits payable on the Consolidated Balance Sheets with changes in fair value reported in net realized capital gains and losses.

FIA Embedded Derivative

The Company assumed through reinsurance FIA contracts that provide the policyholder with benefits that depend on the performance of market indices. Benefits in excess of contract guarantees represent an embedded derivative carried at fair value and reported in other policyholder funds and benefits payable on the Consolidated Balance Sheets with changes in fair value reported in net realized capital gains (losses).

Freestanding Customized Derivatives

The Company previously held freestanding customized derivative contracts to provide protection from certain capital markets risks for the remaining term of specified blocks of GMWB riders written on a direct basis. These customized derivatives are based on policyholder behavior assumptions specified at the inception of the derivative contracts. The Company retained the risk for differences between assumed and actual policyholder behavior and between the performance of the actively managed funds underlying the separate accounts and their respective indices. These derivatives were reported on the Consolidated Balance Sheets within other investments or other liabilities, as appropriate, after considering the impact of master netting agreements.

GMWB Reinsurance Derivative

The Company has reinsurance arrangements with unaffiliated reinsurers in place to transfer a portion of its risk of loss due to GMWB. These arrangements are recognized as derivatives carried at fair value and reported in reinsurance recoverables on the Consolidated Balance Sheets. Changes in the fair value of the reinsurance agreements are reported in net realized capital gains and losses.

Valuation Techniques

Fair values for FIA and GMWB embedded derivatives, freestanding customized derivatives and reinsurance derivatives are classified as Level 3 in the fair value hierarchy and are calculated using internally developed models that utilize significant unobservable inputs because active, observable markets do not exist for these items. In valuing the GMWB embedded derivative, the Company attributes to the derivative a portion of the expected fees to be collected over the expected life of the contract from the contract holder equal to the present value of future GMWB claims. The excess of fees collected from the contract holder in the current period over the portion of fees attributed to the embedded derivative in the current period are associated with the host variable annuity contract and reported in fee income.

Valuation Inputs

The fair value for each of the non-life contingent GMWBs, FIA embedded derivative, the freestanding customized derivatives and the GMWB reinsurance derivative is calculated as an aggregation of the following components: Best Estimate Benefits; Credit Standing Adjustment; and Margins. The Company believes the aggregation of these components results in an amount that a market participant in an active liquid market would require, if such a market existed, to assume the risks associated with the guaranteed minimum benefits and the related reinsurance and customized derivatives. Each component described in the following discussion is unobservable in the marketplace and requires subjectivity by the Company in determining its value.

Best Estimate Benefits

The Best Estimate Benefits are calculated based on actuarial and capital market assumptions related to projected cash flows, including the present value of benefits and related contract charges, over the lives of the contracts, incorporating unobservable inputs including expectations concerning policyholder behavior.

Credit Standing Adjustment

The credit standing adjustment is an estimate of the adjustment to the fair value that market participants would require in determining fair value to reflect the risk that GMWB benefit obligations or the GMWB reinsurance recoverables will not be fulfilled. The Company incorporates a blend of estimates of peer company and reinsurer bond spreads and credit default spreads from capital markets, adjusted for market recoverability.

Margins

The behavior risk margin adds a margin that market participants would require, in determining fair value, for the risk that the Company’s assumptions about policyholder behavior could differ from actual experience. The behavior risk margin is calculated by taking the difference between adverse policyholder behavior assumptions and best estimate assumptions.

Valuation Inputs Used in Levels 2 and 3 Measurements for GMWB and FIA Embedded, Customized and Reinsurance Derivatives
	Level 2 Primary Observable Inputs	Level 3 Primary Unobservable Inputs
	• Risk-free rates as represented by the Eurodollar futures, LIBOR deposits and swap rates to derive forward curve rates • Correlations of 10 years of observed historical returns across underlying well-known market indices • Correlations of historical index returns compared to separate account fund returns • Equity index levels	• Market implied equity volatility assumptions • Credit standing adjustment assumptions • Option budgets Assumptions about policyholder behavior, including: • Withdrawal utilization • Withdrawal rates • Lapse rates • Reset elections

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.

Separate Account Assets

Separate account assets are primarily invested in mutual funds. Other separate account assets include fixed maturities, limited partnerships, equity securities, short-term investments and derivatives that are valued in the same manner, and using the same pricing sources and inputs, as those investments held by the Company. For limited partnerships in which fair value represents the separate account’s share of the NAV, 40% and 43% were subject to significant liquidation restrictions as of December 31, 2021 (Successor Company) and 2020 (Predecessor Company), respectively. Total limited partnerships that do not allow any form of redemption were 0% as of December 31, 2021 (Successor Company) and 2020 (Predecessor Company), respectively. Separate account assets classified as Level 3 primarily include long-dated bank loans, subprime RMBS and commercial mortgage loans.

Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified within the same fair value hierarchy level as the associated asset or liability. Therefore, the realized and unrealized gains and losses on derivatives reported in the Level 3 roll-forwards may be offset by realized and unrealized gains and losses of the associated assets and liabilities in other line items of the financial statements.

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).

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").