Derivatives (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value


	Net Derivatives								Asset Derivatives				Liability Derivatives
	Notional Amount				Fair Value				Fair Value				Fair Value
	Successor Company				Successor Company				Successor Company				Successor Company
					As Restated				As Restated				As Restated
Hedge Designation/Derivative Type	Dec 31, 2022		Dec 31, 2021		Dec 31, 2022		Dec 31, 2021		Dec 31, 2022		Dec 31, 2021		Dec 31, 2022		Dec 31, 2021
Cash flow hedges
Interest rate swaps	$	250	$	100	$	—	$	—	$	—	$	—	$	—	$	—

Total cash flow hedges	250		100		—		—		—		—		—		—



Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	1,363		3,074		(1)		(7)		3		19		(4)		(26)
Foreign exchange contracts
Foreign currency swaps and forwards	161		161		15		9		16		10		(1)		(1)

Credit contracts

Credit derivatives that assume credit risk	500		100		4		2		4		2		—		—



Variable annuity hedge program
GMWB product derivatives [1]	6,308		7,086		131		80		131		100		—		(20)
GMWB reinsurance contracts	1,397		1,555		(131)		(8)		—		—		(131)		(8)

Macro hedge program	22,823		22,991		211		(213)		506		145		(295)		(358)
Fixed indexed annuities
FIA product derivative [1] [2]	—		—		(385)		(655)		—		—		(385)		(655)
FIA reinsurance contracts [2]	—		—		288		—		288		—		—		—
Other
Modified coinsurance reinsurance contracts [2]	—		—		726		15		129		15		597		—
Total non-qualifying strategies	32,552		34,967		858		(777)		1,077		291		(219)		(1,068)
Total cash flow hedges and non-qualifying strategies	$	32,802	$	35,067	$	858	$	(777)	$	1,077	$	291	$	(219)	$	(1,068)
Balance Sheet Location
Fixed maturities, AFS	$	56	$	56	$	—	$	—	$	—	$	—	$	—	$	—
Other investments	11,998		8,163		195		43		237		91		(42)		(48)
Other liabilities	13,043		18,206		34		(252)		292		85		(258)		(337)
Reinsurance recoverables	1,397		1,556		286		7		417		15		(131)		(8)
Funds withheld liability	—		—		597		—		—		—		597		—
Other policyholder funds and benefits payable	6,308		7,086		(254)		(575)		131		100		(385)		(675)
Total derivatives	$	32,802	$	35,067	$	858	$	(777)	$	1,077	$	291	$	(219)	$	(1,068)

[1] These derivatives are embedded within liabilities and are not held for risk management purposes.

[2] For certain assumed and ceded reinsurance agreements the notional value is not indicative of the volume of activity. Refer to Note 5 - Reinsurance for additional information regarding the activity which generated the value of the embedded derivative.

Offsetting Assets


Offsetting Derivative Assets and Liabilities
	(i)		(ii)		(iii) = (i) - (ii)				(iv)		(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, 2022 (Successor Company)
Other investments	$	529	$	446	$	195	$	(112)	$	68	$	15
Other liabilities	(300)		(195)		34		(139)		(103)		(2)
As of December 31, 2021 (Successor Company)
Other investments	$	176	$	162	$	43	$	(29)	$	5	$	9
Other liabilities	(385)		(134)		(252)		1		(251)		—

[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.

Offsetting Liabilities


Repurchase Agreements
	Successor Company
	December 31, 2022		December 31, 2021
	Fair Value		Fair Value




Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	564	$	663
Gross amount of collateral pledged related to repurchase agreements [1]	$	577	$	679
Gross amount of recognized receivables for reverse repurchase agreements [2]	$	7	$	44

[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
	(i)		(ii)		(iii) = (i) - (ii)				(iv)		(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, 2022 (Successor Company)
Other investments	$	529	$	446	$	195	$	(112)	$	68	$	15
Other liabilities	(300)		(195)		34		(139)		(103)		(2)
As of December 31, 2021 (Successor Company)
Other investments	$	176	$	162	$	43	$	(29)	$	5	$	9
Other liabilities	(385)		(134)		(252)		1		(251)		—

[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.

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location


Derivatives in Cash Flow Hedging Relationships
Pre-Tax Gain (Loss) Recognized in OCI
	Successor Company				Predecessor Company
	For the Year Ended December 31, 2022		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
	For the Year Ended December 31, 2022		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
Interest rate swaps	$	(35)	$	—	$	—	$	—
Foreign currency swaps	—		—		—		(2)
Total	$	(35)	$	—	$	—	$	(2)


Derivatives in Cash Flow Hedging Relationships (Successor Company)
Gain (Loss) Reclassified from AOCI into Income
	As Restated
	For the Year Ended December 31, 2022				For the Period of July 1, 2021 to December 31, 2021
	Net Realized Capital Losses		Net Investment Income		Net Realized Capital Losses		Net Investment Income
Interest rate swaps	$	—	$	(1)	$	—	$	—
Foreign currency swaps	—		—		—		—
Total	$	—	$	(1)	$	—	$	—
Total amounts presented in the Consolidated Statements of Operations	$	(10)	$	778	$	(20)	$	498

Derivative Instruments, Gain (Loss)


Non-qualifying Strategies Gain (Loss) Recognized within Net Realized Capital Gains (Losses)
	Successor Company				Predecessor Company
	As Restated
	For the Year Ended December 31, 2022		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

Variable annuity hedge program
GMWB product derivatives	$	88	$	29	$	82	$	67
GMWB reinsurance contracts	(88)		4		(24)		(27)
GMWB hedging instruments							42
Variable annuity macro hedge program	(1)		(100)		(301)		(414)
Total variable annuity hedge program	(1)		(67)		(243)		(332)
Fixed Index Annuity
FIA product derivatives	270		—		—		—



Foreign exchange contracts
Foreign currency swaps and forwards	7		5		(2)		(4)


Other non-qualifying derivatives
Interest rate contracts
Interest rate swaps, swaptions, and futures	(306)		21		(76)		180
Credit contracts
Credit derivatives that purchase credit protection	—		—		—		19
Credit derivatives that assume credit risk	3		1		—		—




Other

Modified coinsurance reinsurance contracts	809		15		22		(50)
Total other non-qualifying derivatives	506		37		(54)		149
Total [1]	$	782	$	(25)	$	(299)	$	(187)

[1] Excludes investments that contain an embedded credit derivative for which the Company has elected the FVO.

Disclosure of Credit Derivatives


As of December 31, 2022 (Successor Company)
						Underlying Referenced Credit Obligation(s) [1]
Credit Derivative Type by Derivative Risk Exposure	Notional Amount [2]		Fair Value		Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount		Offsetting Fair Value



Basket credit default swaps [3]
Investment grade risk exposure	$	500	$	4	5 years	Corporate Credit	BBB+	$	—	$	—





Total	$	500	$	4				$	—	$	—
As of December 31, 2021 (Successor Company)
						Underlying Referenced Credit Obligation(s) [1]
Credit Derivative Type by Derivative Risk Exposure	Notional Amount [2]		Fair Value		Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount		Offsetting Fair Value



Basket credit default swaps [3]
Investment grade risk exposure	$	100	$	2	5 years	Corporate Credit	BBB+	$	—	$	—





Total	$	100	$	2				$	—	$	—

[1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

[2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.

[3] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details