Segment Information

3 Months Ended

Mar. 31, 2020

Segment Information [Abstract]

Segment Information

15. Segment Information

We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. A discussion of these segments and Other Operations is found in Note 21 of our 2019 Form 10-K.

Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

Realized gains and losses associated with the following (“excluded realized gain (loss)”):

Sales or disposals and impairments of financial assets;

Changes in the fair value of equity securities;

Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”);

Changes in the fair value of the derivatives we own to hedge our GDB riders within our variable annuities;

Changes in the fair value of the embedded derivatives of our GLB riders reflected within variable annuity net derivative results accounted for at fair value;

Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results; and

Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”);

Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”);

Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

Gains (losses) on early extinguishment of debt;

Losses from the impairment of intangible assets;

Income (loss) from discontinued operations;

Acquisition and integration costs related to mergers and acquisitions; and

Income (loss) from the initial adoption of new accounting standards, regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act.

Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:

Excluded realized gain (loss);

Revenue adjustments from the initial adoption of new accounting standards;

Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and

Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

The tables below reconcile our segment measures of performance to the GAAP measures presented in our Consolidated Statements of Comprehensive Income (Loss) (in millions):

	For the Three
	Months Ended
	March 31,
	2020			2019
Revenues
Operating revenues:
Annuities	$	1,129		$	1,174
Retirement Plan Services		297			293
Life Insurance		1,821			1,700
Group Protection		1,224			1,138
Other Operations		38			57
Excluded realized gain (loss), pre-tax		(75	)		(400	)
Amortization of DFEL associated
with benefit ratio unlocking, pre-tax		(9	)		3
Total revenues	$	4,425		$	3,965

	For the Three
	Months Ended
	March 31,
	2020			2019
Net Income (Loss)
Income (loss) from operations:
Annuities	$	261		$	250
Retirement Plan Services		40			39
Life Insurance		171			157
Group Protection		40			55
Other Operations		(47	)		(60	)
Excluded realized gain (loss), after-tax		(60	)		(316	)
Benefit ratio unlocking, after-tax		(349	)		142
Acquisition and integration costs related to
mergers and acquisitions, after-tax		(4	)		(15	)
Net income (loss)	$	52		$	252