Segment Information

9 Months Ended

Sep. 30, 2020

Segment Information [Abstract]

Segment Information

14. 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”);

GLB rider fees ceded to LNBAR;

The net valuation premium of the GLB attributed rider fees; 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 GLB riders;

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						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Revenues
Operating revenues:
Annuities	$	1,082		$	1,024		$	3,055		$	3,177
Retirement Plan Services		307			293			878			877
Life Insurance		2,032			1,995			5,297			5,264
Group Protection		1,184			1,136			3,607			3,429
Other Operations		37			47			115			152
Excluded realized gain (loss), pre-tax		(71	)		(268	)		(609	)		(981	)
Total revenues	$	4,571		$	4,227		$	12,343		$	11,918

	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Net Income (Loss)
Income (loss) from operations:
Annuities	$	32		$	216		$	589		$	723
Retirement Plan Services		47			41			111			117
Life Insurance		(318	)		(227	)		(149	)		103
Group Protection		6			61			85			184
Other Operations		(34	)		(50	)		(109	)		(119	)
Excluded realized gain (loss), after-tax		(56	)		(212	)		(480	)		(775	)
Benefit ratio unlocking, after-tax		-			-			(4	)		-
Acquisition and integration costs related to mergers
and acquisitions, after-tax		(4	)		(30	)		(12	)		(78	)
Net income (loss)	$	(327	)	$	(201	)	$	31		$	155