SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2023

BALANCE SHEETS

(Parent Company Only) (in millions, except share data)


	As of December 31,
	2023		2022
ASSETS
Investments in subsidiaries (1)	$	12,205	$	9,782
Derivative investments	169		119
Other investments	34		92
Cash and invested cash	129		715
Loans and accrued interest to subsidiaries (1)	2,606		2,491
Other assets	144		101
Total assets	$	15,287	$	13,300

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Common stock dividends payable	$	76	$	76

Short-term debt	250		500
Long-term debt	6,949		6,455
Loans from subsidiaries (1)	572		679
Other liabilities	547		488
Total liabilities	8,394		8,198

Contingencies and Commitments

Stockholders’ Equity
Preferred stock – 10,000,000 shares authorized:
Series C preferred stock – 20,000 shares authorized, issued and outstanding as of December 31, 2023	493		493
Series D preferred stock – 20,000 shares authorized, issued and outstanding as of December 31, 2023	493		493
Common stock – 800,000,000 shares authorized; 169,666,137 and 169,220,511 shares
issued and outstanding as of December 31, 2023, and December 31, 2022, respectively	4,605		4,544
Retained earnings	4,778		5,924
Accumulated other comprehensive income (loss)	(3,476)		(6,352)
Total stockholders’ equity	6,893		5,102
Total liabilities and stockholders’ equity	$	15,287	$	13,300

(1) Eliminated in consolidation

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Parent Company Only) (in millions)


	For the Years Ended December 31,
	2023		2022		2021
Revenues
Dividends from subsidiaries (1)	$	685	$	797	$	2,060
Interest from subsidiaries (1)	233		159		114
Net investment income	25		3		1
Total revenues	943		959		2,175
Expenses
Operating and administrative expenses	78		52		69
Interest – subsidiaries (1)	175		38		10
Interest – other	289		266		263
Total expenses	542		356		342
Income (loss) before federal income taxes, equity in income (loss) of subsidiaries	401		603		1,833
Federal income tax expense (benefit)	(61)		(42)		(49)
Income (loss) before equity in income (loss) of subsidiaries	462		645		1,882
Equity in income (loss) of subsidiaries	(1,214)		713		1,896
Net income (loss)	(752)		1,358		3,778
Other comprehensive income (loss), net of tax:
Unrealized investment gain (loss)	3,715		(18,059)		(3,287)
Market risk benefit non-performance risk gain (loss)	(671)		(210)		(923)
Policyholder liability discount rate remeasurement gain (loss)	(160)		2,012		591
Foreign currency translation adjustment	8		(20)		(2)
Funded status of employee benefit plans	(16)		(59)		47
Total other comprehensive income (loss), net of tax	2,876		(16,336)		(3,574)
Comprehensive income (loss)	$	2,124	$	(14,978)	$	204

(1) Eliminated in consolidation.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued)

STATEMENTS OF CASH FLOWS

(Parent Company Only) (in millions)


	For the Years Ended December 31,
	2023		2022		2021
Net Cash Provided by (Used in) Operating Activities	$	398	$	608	$	1,860
Cash Flows from Investing Activities
Capital contribution to subsidiaries (1)	(7)		(925)		(65)
Net change in collateral on investments, derivatives and related settlements	69		583		168
Other	45		(5)		(40)
Net cash provided by (used in) investing activities	107		(347)		63
Cash Flows from Financing Activities
Payment of long-term debt, including current maturities	(500)		(300)		–
Issuance of long-term debt, net of issuance costs	–		296		–
Payment related to modification or early extinguishment of debt	–		–		(8)
Increase (decrease) in loans from subsidiaries, net (1)	(84)		(563)		(188)
Increase (decrease) in loans to subsidiaries, net (1)	(113)		708		(234)
Common stock issued for benefit plans	(7)		(16)		20
Issuance of preferred stock, net of issuance costs	–		986		–
Repurchase of common stock	–		(550)		(1,105)
Dividends paid to preferred stockholders	(82)		–		–
Dividends paid to common stockholders	(305)		(310)		(319)

Net cash provided by (used in) financing activities	(1,091)		251		(1,834)
Net increase (decrease) in cash, invested cash and restricted cash	(586)		512		89
Cash, invested cash and restricted cash as of beginning-of-year	715		203		114
Cash, invested cash and restricted cash as of end-of-year	$	129	$	715	$	203

(1) Eliminated in consolidation.