Realized Gain (Loss)

12 Months Ended

Dec. 31, 2023

Details underlying realized gain (loss) (in millions) reported on the Consolidated Statements of Comprehensive Income (Loss) were as follows:


	For the Years Ended December 31,
	2023		2022		2021
Fixed maturity AFS securities: (1)
Gross gains	$	630	$	38	$	663
Gross losses	(408)		(53)		(37)
Credit loss benefit (expense) (2)	(22)		(15)		(11)
Intent to sell impairments	(1,091)		–		–
Realized gain (loss) on equity securities (3)	(6)		15		44
Credit loss benefit (expense) on mortgage loans on real estate	(16)		(3)		112
Credit loss benefit (expense) on reinsurance-related assets (4)	(41)		(112)		6
Realized gain (loss) on the mark-to-market on certain instruments (5)(6)	(1,298)		37		63
Indexed product derivative results (7)	(232)		74		22
Derivative results (8)	(1,830)		901		(1,717)
Other realized gain (loss)	3		(42)		(12)
Total realized gain (loss)	$	(4,311)	$	840	$	(867)

(1) Includes impairments of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the Fortitude Re reinsurance transaction. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreements in the second quarter of 2023 and recognized additional impairment on certain of these securities during the third quarter of 2023 due to higher interest rates. Interest rates declined during the fourth quarter of 2023, which resulted in recognition of a $335 million pre-tax net gain upon close of the transaction, included in gross gains and gross losses. See Notes 4 and 8 for additional information.

(2) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events.

(3) Includes mark-to-market adjustments on equity securities still held of $3 million, $10 million and $47 million for the years ended December 31, 2023, 2022 and 2021, respectively.

(4) Includes the release of reinsurance recoverables and the corresponding allowance for credit losses related to a third-party reinsurer, Scottish Re, where liquidation proceedings commenced during the third quarter of 2023. As of September 30, 2023, reinsurance coverage terminated and all business ceded to Scottish Re was therefore recaptured.

(5) Represents changes in the fair values of derivatives we hold as part of VUL hedging, reinsurance-related embedded derivatives and trading securities. We recognized a pre-tax loss of $789 million on a reinsurance-related embedded derivative due to the increase in the market value of the fixed maturity AFS securities included within the Fortitude Re funds withheld account. Also includes an $87 million pre-tax loss related to interest rate futures used to hedge the assets used as consideration in the Fortitude Re reinsurance transaction. See Note 8 for additional information.

(6) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $(11) million, $(24) million and $3 million for the years ended December 31, 2023, 2022 and 2021, respectively.

(7) Represents the change in fair value of the index options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts, and the associated index options to hedge policyholder index allocations applicable to future reset periods for our indexed annuity products.

(8) Includes the change in the fair value of the derivative instruments we own to support capital needs associated with our GLB and GDB riders net of fee income allocated to support the cost of purchasing the hedging instruments.