EQUITY

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

EQUITY

EQUITY AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances of AOCI were as follows:

	September 30,		December 31,
	2023		2022
	(in millions)
Unrealized gains (losses) on investments	$	(9,385)	$	(8,873)
Market risk benefits - instrument-specific credit risk component	317		665
Liability for future policy benefits - current discount rate component	535		357
Defined benefit pension plans	(4)		(4)
Accumulated other comprehensive income (loss) attributable to Equitable Financial	$	(8,537)	$	(7,855)

The components of OCI, net of taxes were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in millions)
Change in net unrealized gains (losses) on investments:
Net unrealized gains (losses) arising during the period	$	(1,900)	$	(3,010)	$	(1,064)	$	(12,224)
(Gains) losses reclassified into net income (loss) during the period	352		258		446		696
Net unrealized gains (losses) on investments (1)	(1,548)		(2,752)		(618)		(11,528)
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other	37		161		70		850
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(326), $(689), $(319) and $(2,839))	(1,511)		(2,591)		(548)		(10,678)
Change in LFPB discount rate and MRB credit risk, net of tax
Market risk benefits - change in instrument-specific credit risk (net of deferred income tax expense (benefit) of $(298), $(52), $(73) and $663	(1,120)		(197)		(275)		2,494
Liability for future policy benefits - change in current discount rate (net of deferred income tax expense (benefit) of $47, $72, $37 and $291)	177		270		141		1,094
Other comprehensive income (loss) attributable to Equitable Financial	$	(2,454)	$	(2,518)	$	(682)	$	(7,090)

______________

(1)See “Reclassification adjustment” in Note 3 of the Notes to these Consolidated Financial Statements. Reclassification amounts presented net of income tax expense (benefit) of $(93) million, and $(118) million for the three and nine months ended September 30, 2023, respectively, and $(69) million and $(185) million for the three and nine months ended September 30, 2022, respectively.

Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and credit losses of AFS securities and are included in total investment gains (losses), net on the consolidated statements of income (loss). Amounts reclassified from AOCI to net income (loss) as related to defined benefit plans primarily consist of amortization of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in compensation and benefits in the consolidated statements of income (loss). Amounts presented in the table above are net of tax.