Segment Information

3 Months Ended

Mar. 31, 2023

Segment Information [Abstract]

Segment Information

15. Segment Information

We provide products and services and report results through our Life Insurance, Annuities, Group Protection and Retirement Plan Services 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 to the Consolidated Financial Statements in our 2022 Form 10-K/A.

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:

Changes in market risk benefits (“MRBs”), including gains and losses and benefit payments (“MRB-related impacts”);

Investment and reinsurance-related realized gain (loss):

Changes in the carrying value of mortgage loans on real estate attributable to current expected credit losses (“CECL”) (“changes in CECL reserve for mortgage loans on real estate”);

Changes in the carrying value of reinsurance-related assets attributable to CECL (“changes in CECL reserve for reinsurance-related assets”);

Changes in the carrying value of fixed maturity AFS securities attributable to the estimation of credit losses (“changes in the credit loss allowance for fixed maturity AFS securities”); and

Changes in the fair value of investments, including trading securities, equity securities, certain derivatives, and mortgage loans on real estate electing the fair value option, and of embedded derivatives within certain reinsurance arrangements, as well as sales or disposals of investments (“changes in investments and reinsurance-related embedded derivatives”);

Changes in the fair value of the derivative instruments we hold to hedge GLB and GDB, net of fee income allocated to support the cost of hedging them (“changes in fair value of GLB and GDB hedge instruments, net of hedge allowance”);

Changes in the fair value of the embedded derivative liabilities of our indexed annuity and indexed universal life insurance contracts and the associated index options we hold to hedge them, including collateral expense associated with hedge programs; (“indexed product net derivative results”);

Changes in reserves resulting from benefit ratio unlocking on variable universal life insurance products with secondary guarantees (“benefit ratio unlocking”);

Income (loss) from the initial adoption of new accounting standards, regulations and policy changes;

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

Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business;

Gains (losses) on modification or early extinguishment of debt;

Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and

Income (loss) from discontinued operations.

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

Investment and reinsurance-related realized gain (loss);

Changes in fair value of GLB and GDB hedge instruments, net of hedge allowance;

Indexed product net derivative results;

Revenue adjustments from the initial adoption of new accounting standards; 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 the Consolidated Statements of Comprehensive Income (Loss) (in millions):

	For the Three
	Months Ended
	March 31,
	2023			2022
Revenues
Operating revenues:
Life Insurance	$	1,757		$	1,729
Annuities		1,141			1,147
Group Protection		1,388			1,303
Retirement Plan Services		328			318
Other Operations		43			40
Investment and reinsurance-related
realized gain (loss)		(196	)		1
Changes in fair value of GLB and GDB
hedge instruments, net of hedge
allowance		(476	)		72
Indexed product net derivative results		(171	)		110
Total revenues	$	3,814		$	4,720

	For the Three
	Months Ended
	March 31,
	2023			2022
Net Income (Loss)
Income (loss) from operations:
Life Insurance	$	(13	)	$	23
Annuities		274			317
Group Protection		71			(46	)
Retirement Plan Services		43			58
Other Operations		(87	)		(78	)
MRB-related impacts, after-tax		(506	)		1,062
Investment and reinsurance-related
realized gain (loss), after-tax		(154	)		1
Changes in fair value of GLB and GDB hedge
hedge instruments, net of hedge allowance,
after-tax		(377	)		58
Indexed product net derivative results,
after-tax		(135	)		87
Benefit ratio unlocking, after-tax		3			-
Net income (loss)	$	(881	)	$	1,482

Other segment information (in millions) was as follows:

	As of		As of
	March 31,		December 31,
	2023		2022
Assets
Life Insurance	$	96,168	$	94,536
Annuities		172,978		167,377
Group Protection		9,780		9,780
Retirement Plan Services		42,874		41,900
Other Operations		21,342		20,624
Total assets	$	343,142	$	334,217