Financial Services, Insurance, ASU 2018-12 Transition (Tables)

12 Months Ended

Dec. 31, 2023

ASU 2018-12 Transition [Abstract]

Accounting Standards Update and Change in Accounting Principle

The effect of transition adjustments on stockholder’s equity at January 1, 2021 due to the adoption of ASU 2018-12 was as follows:

	Retained Earnings (Deficit)		AOCI
	(In millions)
Liability for future policy benefits	$	(434)	$	(2,053)
Market risk benefits and related adjustments	(5,971)		(3,452)
DAC and VOBA	—		494
Reinsurance recoverables	(141)		30
Deferred income tax asset	1,375		1,046
Total	$	(5,171)	$	(3,935)

The balances of and changes in LFPBs at January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Term and Whole Life Insurance		Income Annuities		Structured Settlement and Pension Risk Transfer Annuities
	(In millions)
Balance at December 31, 2020	$	2,797	$	4,260	$	10,115
Removal of related balances in AOCI	—		(203)		(1,784)
Change in cash flow assumptions	13		(168)		200
Initial recognition of deferred profit liabilities	—		172		217
Change in discount rate assumptions	522		748		2,770
Adjusted balance at January 1, 2021	3,332		4,809		11,518
Less: Reinsurance recoverable	59		29		102
Adjusted balance at January 1, 2021, net of reinsurance	$	3,273	$	4,780	$	11,416

The balance of and changes in liabilities classified as MRBs at January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Variable Annuities
	(In millions)
Balance at December 31, 2020	$	8,622
Adjustment for the difference between carrying amount and estimated fair value, except for the difference due to nonperformance risk	6,347
Adjustment for cumulative effect of changes in nonperformance risk since issuance	3,452
Adjusted balance at January 1, 2021	18,421
Less: Reinsurance recoverable	169
Adjusted balance at January 1, 2021, net of reinsurance	$	18,252

The balances of and changes in DAC and VOBA on January 1, 2021 due to the adoption of ASU 2018-12 were as follows:

	Variable Annuities		Fixed Rate Annuities		Index-Linked Annuities		Term and Whole Life Insurance		Universal Life Insurance
	(In millions)
DAC:
Balance at December 31, 2020	$	2,326	$	64	$	886	$	451	$	144
Removal of related amounts in AOCI	460		—		—		—		(37)
Adjusted balance at January 1, 2021	$	2,786	$	64	$	886	$	451	$	107
VOBA:
Balance at December 31, 2020	$	363	$	76	$	—	$	8	$	38
Removal of related amounts in AOCI	65		—		—		—		6
Adjusted balance at January 1, 2021	$	428	$	76	$	—	$	8	$	44

The following tables present amounts previously reported in 2022 and 2021, the effect on those amounts of the change due to the adoption of ASU 2018-12 as described in Note 1, and the currently reported amounts in the Consolidated Balance Sheets and Consolidated Statements of Operations. See Notes 4, 5, 6 and 7 for more information.

	December 31, 2022						December 31, 2021
	As Previously Reported		Effect of Change		As Currently Reported		As Previously Reported		Effect of Change		As Currently Reported
	(In millions)
Total assets	$	216,151	$	(713)	$	215,438	$	247,255	$	2,476	$	249,731
Future policy benefits	$	41,105	$	(9,959)	$	31,146	$	43,589	$	(3,759)	$	39,830
Policyholder account balances	$	74,112	$	(1,510)	$	72,602	$	66,195	$	(1,905)	$	64,290
Market risk benefit liabilities	$	—	$	10,411	$	10,411	$	—	$	16,062	$	16,062
Total liabilities	$	209,287	$	(363)	$	208,924	$	231,144	$	10,051	$	241,195
Retained earnings (deficit)	$	(5,717)	$	299	$	(5,418)	$	(5,653)	$	(3,475)	$	(9,128)
Accumulated other comprehensive income (loss)	$	(5,282)	$	(649)	$	(5,931)	$	3,901	$	(4,100)	$	(199)
Total equity	$	6,864	$	(350)	$	6,514	$	16,111	$	(7,575)	$	8,536
Total liabilities and equity	$	216,151	$	(713)	$	215,438	$	247,255	$	2,476	$	249,731

	Year Ended December 31, 2022						Year Ended December 31, 2021
	As Previously Reported		Effect of Change		As Currently Reported		As Previously Reported		Effect of Change		As Currently Reported
	(In millions)
Universal life and investment-type product policy fees	$	2,562	$	(686)	$	1,876	$	2,986	$	(666)	$	2,320
Net derivative gains (losses)	$	402	$	(987)	$	(585)	$	(2,359)	$	(1,627)	$	(3,986)
Total revenues	$	7,832	$	(1,670)	$	6,162	$	6,400	$	(2,290)	$	4,110
Policyholder benefits and claims	$	4,143	$	(1,957)	$	2,186	$	3,213	$	(728)	$	2,485
Change in market risk benefits	$	—	$	(4,105)	$	(4,105)	$	—	$	(4,142)	$	(4,142)
Total expenses	$	8,103	$	(6,447)	$	1,656	$	6,404	$	(4,436)	$	1,968
Net income (loss)	$	(63)	$	3,774	$	3,711	$	67	$	1,696	$	1,763