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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We provide products and services and report results through our Annuities, Life Insurance, Group Protection and Retirement Plan Services business segments. The accounting policies of the business segments and Other Operations are the same as those described in
Note 1 in our 2024 Form 10-K. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our business segments and Other Operations reflect the manner by which our CODM views and manages the business. Our CODM is the Chief Executive Officer. A discussion of these segments and Other Operations is found in Note 19 in our 2024 Form 10-K.

Income (loss) from operations is the internal measure used by our CODM that explains the results of our ongoing operations in a manner that allows for a better understanding of the underlying trends by excluding items that are not necessarily indicative of current operating fundamentals or future performance, and, in most instances, decisions regarding these adjustments do not necessarily relate to the operations of the individual business segments. Income (loss) from operations is used by our CODM to evaluate financial performance, to assess the budgeting and forecasting process and to determine future resource allocation. In the third quarter of 2024, we revised our definition of income (loss) from operations to exclude the impact of certain additional items that are not indicative of the ongoing operations of the business and may obscure trends in the underlying performance of the Company. The presentation of prior period income (loss) from operations was recast for such third quarter 2024 revisions to conform to the current period presentation.

Income (loss) from operations is GAAP net income (loss) excluding the following items, as applicable:

•Items related to annuity product features, which include changes in MRBs, changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits, and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products (collectively, “net annuity product features”);
•Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”);
•Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”);
•Changes in the fair value of equity securities and certain other investments, the impact of certain derivatives, and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”);
•Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”);
•Income (loss) from the initial adoption of new accounting standards, accounting policy changes and new regulations, including changes in tax law;
•Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
•Losses from the impairment of intangible assets and gains (losses) on other non-financial assets;
•Income (loss) from discontinued operations;
•Other items, which include the following: certain legal and regulatory accruals; severance expense related to initiatives that realign the workforce; transaction, integration and other costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business, and certain other corporate initiatives; mark-to-market adjustment related to the LNC stock component of our deferred compensation plans (“deferred compensation mark-to-market adjustment”); gains (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of defined benefit obligations; and
•Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances.

We use our prevailing corporate federal income tax rate of 21% and an estimated state income tax rate, where applicable, net of the impacts related to dividends-received deduction and foreign tax credits and any other permanent differences for events recognized differently in the consolidated financial statements and federal income tax returns.

We do not report total assets by segment because this is not a metric used by the CODM to allocate resources or evaluate segment performance.
The tables below reconcile our internal measure of performance to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss) (in millions):

For the Three Months Ended June 30, 2025
AnnuitiesLife InsuranceGroup ProtectionRetirement Plan ServicesOther OperationsTotal
Operating Revenues (1)
$1,214 $1,602 $1,538 $331 $41 $4,726 
Operating Expenses (2)
Benefits and policyholder liability
remeasurement (gain) loss32 956 913 – 7 1,908 
Interest credited439 289 1 174 13 916 
Commissions292 111 139 28 – 570 
General and administrative expenses126 133 227 83 57 626 
Interest and debt expense– – – – 81 81 
Other (3)
(13)79 39 4 (1)108 
Total operating expenses876 1,568 1,319 289 157 4,209 
Total federal income tax expense (benefit)51 2 46 5 (25)79 
Total income (loss) from operations287 32 173 37 (91)438 
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (4)
405 
Net life insurance product features, pre-tax(58)
Credit loss-related adjustments, pre-tax(25)
Investment gains (losses), pre-tax(81)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (5)
14 
Other items, pre-tax (6) (7) (8) (9)
75 
Income tax benefit (expense) related to
the above pre-tax items(69)
Total net income (loss)$699 

(1)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).
(2)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.
(3)    Other operating expenses include: Annuities: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and letters of credit (“LOCs”) and amortization of deferred loss on business sold through reinsurance. Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs; amortization of deferred loss on business sold through reinsurance and other intangible amortization. Group Protection: DAC capitalization and amortization; taxes, licenses and fees; other intangible amortization and expenses associated with LOCs. Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs. Other Operations: Taxes, licenses and fees; DAC capitalization and amortization and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.
(4)    Includes changes in MRBs of $932 million; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $(595) million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $68 million.
(5)    Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7.
(6)    Includes severance expense related to initiatives to realign the workforce of $(2) million.
(7)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(18) million primarily related to the Bain Capital transaction.
(8)    Includes deferred compensation mark-to-market adjustment of $1 million.
(9)    Includes gains (losses) on early extinguishment of debt of $94 million.

For the Three Months Ended June 30, 2024
AnnuitiesLife InsuranceGroup ProtectionRetirement Plan ServicesOther OperationsTotal
Operating Revenues (1)
$1,209 $1,511 $1,441 $327 $39 $4,527 
Operating Expenses (2)
Benefits and policyholder liability
remeasurement (gain) loss40 964 908 – 5 1,917 
Interest credited377 299 1 168 8 853 
Commissions269 113 113 26 – 521 
General and administrative expenses116 139 226 83 64 628 
Interest and debt expense– – – – 86 86 
Other (3)
56 47 28 4 (2)133 
Total operating expenses858 1,562 1,276 281 161 4,138 
Total federal income tax expense (benefit)54 (16)35 6 (25)54 
Total income (loss) from operations297 (35)130 40 (97)335 
Reconciliation of total income (loss) from
operations to net income (loss) (4):
Net annuity product features, pre-tax (5)
252 
Net life insurance product features, pre-tax4 
Credit loss-related adjustments, pre-tax(34)
Investment gains (losses), pre-tax(230)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (6)
201 
Gains (losses) on other non-financial assets –
sale of subsidiaries/businesses, pre-tax (7)
584 
Other items, pre-tax (8) (9) (10)
(33)
Income tax benefit (expense) related to
the above pre-tax items(184)
Total net income (loss)$895 

(1)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).
(2)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.
(3)    Other operating expenses include: Annuities: DAC and VOBA capitalization and amortization; broker-dealer expenses; taxes, licenses and fees and expenses associated with reserve financing and LOCs. Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs and other intangible amortization. Group Protection: DAC capitalization and amortization; taxes, licenses and fees; other intangible amortization and expenses associated with LOCs. Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs. Other Operations: Taxes, licenses and fees and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.
(4)    The prior period presentation was recast to conform to the revised definition of income (loss) from operations.
(5)    Includes changes in MRBs of $126 million; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $50 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $76 million.
(6)    Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7.
(7)    Relates to the sale of our wealth management business.
(8)    Includes severance expense related to initiatives to realign the workforce of $(7) million.
(9)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(27) million related to the sale of our wealth management business.
(10)    Includes deferred compensation mark-to-market adjustment of $1 million.

For the Six Months Ended June 30, 2025
AnnuitiesLife InsuranceGroup ProtectionRetirement Plan ServicesOther OperationsTotal
Operating Revenues (1)
$2,412 $3,188 $3,059 $658 $94 $9,411 
Operating Expenses (2)
Benefits and policyholder liability
remeasurement (gain) loss60 1,958 1,908 – 11 3,937 
Interest credited858 576 – 344 27 1,805 
Commissions590 210 272 55 – 1,127 
General and administrative expenses251 263 449 168 125 1,256 
Interest and debt expense– – – – 161 161 
Other (3)
(25)179 83 11 (2)246 
Total operating expenses1,734 3,186 2,712 578 322 8,532 
Total federal income tax expense (benefit)101 (14)73 9 (42)127 
Total income (loss) from operations577 16 274 71 (186)752 
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (4)
(687)
Net life insurance product features, pre-tax(15)
Credit loss-related adjustments, pre-tax(53)
Investment gains (losses), pre-tax(183)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (5)
(76)
Other items, pre-tax (6) (7) (8) (9) (10)
40 
Income tax benefit (expense) related to
the above pre-tax items199 
Total net income (loss)$(23)

(1)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).
(2)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.
(3)    Other operating expenses include: Annuities: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs and amortization of deferred loss on business sold through reinsurance. Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs; amortization of deferred loss on business sold through reinsurance and other intangible amortization. Group Protection: Taxes, licenses and fees; DAC capitalization and amortization; other intangible amortization and expenses associated with LOCs. Retirement Plan Services: Taxes, licenses and fees; DAC capitalization and amortization and expenses associated with LOCs. Other Operations: Taxes, licenses and fees; DAC capitalization and amortization and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.
(4)    Includes changes in MRBs of $(370) million; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $(321) million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $4 million.
(5)    Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7.
(6)    Includes severance expense related to initiatives to realign the workforce of $(8) million.
(7)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(38) million related to the Bain Capital transaction and the sale of our wealth management business.
(8)    Includes deferred compensation mark-to-market adjustment of $(8) million.
(9)    Includes gains (losses) on early extinguishment of debt of $94 million.

For the Six Months Ended June 30, 2024
AnnuitiesLife InsuranceGroup ProtectionRetirement Plan ServicesOther OperationsTotal
Operating Revenues (1)
$2,477 $3,052 $2,867 $649 $66 $9,111 
Operating Expenses (2)
Benefits and policyholder liability
remeasurement (gain) loss67 1,951 1,871 – 11 3,900 
Interest credited729 592 2 335 17 1,675 
Commissions523 226 222 49 – 1,020 
General and administrative expenses236 282 435 168 120 1,241 
Interest and debt expense– – – – 167 167 
Other (3)
253 102 71 9 (7)428 
Total operating expenses1,808 3,153 2,601 561 308 8,431 
Total federal income tax expense (benefit)113 (31)56 12 (50)100 
Total income (loss) from operations556 (70)210 76 (192)580 
Reconciliation of total income (loss) from
operations to net income (loss) (4):
Net annuity product features, pre-tax (5)
1,702 
Net life insurance product features, pre-tax(128)
Credit loss-related adjustments, pre-tax(36)
Investment gains (losses), pre-tax(311)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (6)
395 
Gains (losses) on other non-financial assets –
sale of subsidiaries/businesses, pre-tax (7)
584 
Other items, pre-tax (8) (9) (10) (11)
(219)
Income tax benefit (expense) related to
the above pre-tax items(451)
Total net income (loss)$2,116 

(1)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).
(2)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.
(3)    Other operating expenses include: Annuities: Broker-dealer expenses; DAC and VOBA capitalization and amortization; taxes, licenses and fees and expenses associated with reserve financing and LOCs. Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs and other intangible amortization. Group Protection: Taxes, licenses and fees; DAC capitalization and amortization; other intangible amortization and expenses associated with LOCs. Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs. Other Operations: Taxes, licenses and fees and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.
(4)    The prior period presentation was recast to conform to the revised definition of income (loss) from operations.
(5)    Includes changes in MRBs of $2,021 million; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $(537) million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $218 million.
(6)    Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7.
(7)    Relates to the sale of our wealth management business.
(8)    Includes $(114) million primarily related to the settlement of cost of insurance litigation in the first quarter of 2024.
(9)    Includes severance expense related to initiatives to realign the workforce of $(56) million.
(10)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(37) million primarily related to the sale of our wealth management business.
(11)    Includes deferred compensation mark-to-market adjustment of $(12) million.

The tables below reconcile our total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss) (in millions):

For the Three Months Ended June 30, 2025
AnnuitiesLife InsuranceGroup ProtectionRetirement Plan ServicesOther OperationsTotal
Operating revenues$1,214 $1,602 $1,538 $331 $41 $4,726 
Revenue adjustments from annuity and life
insurance product features(526)(64)– – – (590)
Credit loss-related adjustments(2)(2)– (7)(14)(25)
Investment gains (losses)(2)(25)– (3)(51)(81)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans– 13 – – 1 14 
Total revenues$684 $1,524 $1,538 $321 $(23)$4,044 


For the Three Months Ended June 30, 2024
AnnuitiesLife InsuranceGroup ProtectionRetirement Plan ServicesOther OperationsTotal
Operating revenues$1,209 $1,511 $1,441 $327 $39 $4,527 
Revenue adjustments from annuity and life
insurance product features126 (21)– – – 105 
Credit loss-related adjustments(19)7 – (13)(9)(34)
Investment gains (losses)9 (119)(1)– (119)(230)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans– 204 – – (3)201 
Gains (losses) on other non-financial assets -
sale of subsidiaries/businesses– – – – 584 584 
Total revenues$1,325 $1,582 $1,440 $314 $492 $5,153 
For the Six Months Ended June 30, 2025
AnnuitiesLife InsuranceGroup ProtectionRetirement Plan ServicesOther OperationsTotal
Operating revenues$2,412 $3,188 $3,059 $658 $94 $9,411 
Revenue adjustments from annuity and life
insurance product features(317)(47)– – – (364)
Credit loss-related adjustments(19)(1)(2)(9)(22)(53)
Investment gains (losses)(8)(133)1 (6)(37)(183)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans10 (76)– – (10)(76)
Total revenues$2,078 $2,931 $3,058 $643 $25 $8,735 

For the Six Months Ended June 30, 2024
AnnuitiesLife InsuranceGroup ProtectionRetirement Plan ServicesOther OperationsTotal
Operating revenues$2,477 $3,052 $2,867 $649 $66 $9,111 
Revenue adjustments from annuity and life
insurance product features(320)(154)– – – (474)
Credit loss-related adjustments(23)11 – (13)(11)(36)
Investment gains (losses)27 (148)(1)(5)(184)(311)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans(3)409 – – (11)395 
Gains (losses) on other non-financial assets -
sale of subsidiaries/businesses– – – – 584 584 
Total revenues$2,158 $3,170 $2,866 $631 $444 $9,269 

Other business segment and Other Operations information (in millions) was as follows:

 For the Three
Months Ended
June 30, 		 For the Six
Months Ended
June 30,
2025202420252024
Net Investment Income
Annuities$464 $405 $916 $785 
Life Insurance631 565 1,255 1,187 
Group Protection94 88 183 173 
Retirement Plan Services252 247 503 491 
Other Operations25 27 67 43 
Total net investment income$1,466 $1,332 $2,924 $2,679