CLOSED BLOCK

9 Months Ended

Sep. 30, 2023

Closed Block Disclosure [Abstract]

CLOSED BLOCK

CLOSED BLOCK

As a result of demutualization, the Company’s Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and earnings of the Closed Block are specifically identified to support its participating policyholders.

Assets allocated to the Closed Block insure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of the Company’s General Account, any of its Separate Accounts or any affiliate of the Company without the approval of the New York State Department of Financial Services (the “NYDFS”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. For more information on the Closed Block, see Note 5 to the Company’s consolidated financial statements included in the Recast 2022 Annual Report.

Summarized financial information for the Company’s Closed Block is as follows:

	September 30, 2023		December 31, 2022
	(in millions)
Closed Block Liabilities:
Future policy benefits, policyholders’ account balances and other	$	5,508	$	5,692
Policyholder dividend obligation	—		—
Other liabilities	110		68
Total Closed Block liabilities	5,618		5,760
Assets Designated to the Closed Block:
Fixed maturities AFS, at fair value (amortized cost of $3,062 and $3,171) (allowance for credit losses of $0 and $0)	2,804		2,948
Mortgage loans on real estate (net of allowance for credit losses of $11 and $4)	1,622		1,645
Policy loans	555		569
Cash and other invested assets	6		—
Other assets	193		187
Total assets designated to the Closed Block	5,180		5,349
Excess of Closed Block liabilities over assets designated to the Closed Block	438		411
Amounts included in AOCI:
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $54 and $47	(203)		(177)
Maximum future earnings to be recognized from Closed Block assets and liabilities	$	235	$	234

The Company’s Closed Block revenues and expenses were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in millions)
Revenues:
Premiums and other income	$	27	$	29	$	86	$	93
Net investment income (loss)	53		52		156		164
Investment gains (losses), net	(6)		(2)		(6)		(2)
Total revenues	74		79		236		255

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in millions)
Benefits and Other Deductions:
Policyholders’ benefits and dividends	79		93		237		249
Other operating costs and expenses	—		—		—		—
Total benefits and other deductions	79		93		237		249
Net income (loss), before income taxes	(5)		(14)		(1)		6
Income tax (expense) benefit	2		1		—		(1)
Net income (loss)	$	(3)	$	(13)	$	(1)	$	5