Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Shareholder’s equity included the following components of AOCI as of the dates indicated:

	June 30,
	2020		2019
Fixed maturities, net of impairments	$	2,625	$	1,715
Derivatives(1)	169		137
DAC/VOBA and Sales inducements adjustment on available-for-sale securities	(739)		(458)
Premium deficiency reserve adjustment	(278)		(118)
Unrealized capital gains (losses), before tax	1,777		1,276
Deferred income tax asset (liability)	(245)		(139)
Unrealized capital gains (losses), after tax	1,532		1,137
Pension and other postretirement benefits liability, net of tax	3		3
AOCI	$	1,535	$	1,140

⁽¹⁾ Gains and losses reported in Accumulated Other Comprehensive Income (AOCI) from hedge transactions that resulted in the acquisition of an identified asset are reclassified into earnings in the same period or periods during which the asset acquired affects earnings. As of June 30, 2020, the portion of the AOCI that is expected to be reclassified into earnings within the next twelve months is $22.

Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations were as follows for the periods indicated:

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

	Six Months Ended June 30, 2020
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	497		$	(104)	$	393
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	16			(3)		13
DAC/VOBA and Sales inducements	(187)		(1)	39		(148)
Premium deficiency reserve adjustment	(69)			14		(55)
Change in unrealized gains/losses on available-for-sale securities	257			(54)		203
Derivatives:
Derivatives	63		(2)	(13)		50
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(11)			2		(9)
Change in unrealized gains/losses on derivatives	52			(11)		41
Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	—			—		—
Change in pension and other postretirement benefits liability	(1)			—		(1)
Change in Other comprehensive income (loss)	$	308		$	(65)	$	243

(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.

	Three Months Ended June 30, 2019
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	687		$	(145)	$	542
Impairments	1			—		1
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	(2)			—		(2)
DAC/VOBA and Sales inducements	(166)			35		(131)
Premium deficiency reserve adjustment	(32)			7		(25)
Change in unrealized gains/losses on available-for-sale securities	488			(103)		385
Derivatives:
Derivatives	17		(1)	(4)		13
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(6)			2		(4)
Change in unrealized gains/losses on derivatives	11			(2)		9
Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1)			—		(1)
Change in pension and other postretirement benefits liability	(1)			—		(1)
Change in Other comprehensive income (loss)	$	498		$	(105)	$	393

⁽¹⁾ See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.

	Six Months Ended June 30, 2019
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	1,574		$	(329)	$	1,245
Impairments	1			—		1
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	13			(3)		10
DAC/VOBA and Sales inducements	(386)		(1)	81		(305)
Premium deficiency reserve adjustment	(67)			14		(53)
Change in unrealized gains/losses on available-for-sale securities	1,135			(237)		898
Derivatives:
Derivatives	9		(2)	(2)		7
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(12)			3		(9)
Change in unrealized gains/losses on derivatives	(3)			1		(2)
Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1)			—		(1)
Change in pension and other postretirement benefits liability	(1)			—		(1)
Change in Other comprehensive income (loss)	$	1,131		$	(236)	$	895

⁽¹⁾ See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

⁽²⁾ See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.