Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income (Loss)

Shareholder's equity included the following components of AOCI as of the dates indicated.


	December 31,
	2021		2020		2019
Fixed maturities, net of impairment	$	2,126	$	3,430	$	2,113

Derivatives(1)	77		73		117
DAC/VOBA and Sales inducements adjustments on available-for-sale securities	(567)		(855)		(551)
Premium deficiency reserve adjustment	—		(434)		(211)
Other	—		2		—
Unrealized capital gains (losses), before tax	1,636		2,216		1,468
Deferred income tax asset (liability)	(215)		(337)		(180)
Unrealized capital gains (losses), after tax	1,421		1,879		1,288
Pension and other postretirement benefits liability, net of tax	2		3		4
AOCI	$	1,423	$	1,882	$	1,292

(1) Gains and losses reported in 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 December 31, 2021, the portion of the AOCI that is expected to be reclassified into earnings within the next twelve months is $20.

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


	Year Ended December 31, 2021
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(756)		$	160	$	(596)

Other	(1)			—		(1)

Adjustments for amounts recognized in Net gains (losses) in the Consolidated Statements of Operations	(549)			115		(434)
DAC/VOBA and Sales inducements	288		(1)	(61)		227
Premium deficiency reserve adjustment	434			(91)		343
Change in unrealized gains (losses) on available-for-sale securities	(584)			123		(461)

Derivatives:
Derivatives	25		(2)	(5)		20
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations	(21)			4		(17)
Change in unrealized gains (losses) on derivatives	4			(1)		3

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations	(1)		(3)	—		(1)
Change in pension and other postretirement benefits liability	(1)			—		(1)
Change in Accumulated other comprehensive income (loss)	$	(581)		$	122	$	(459)

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

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

(3) See the Benefit Plans Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs.


	Year Ended December 31, 2020
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	1,309		$	(275)	$	1,034

Other	2			—		2

Adjustments for amounts recognized in Net gains (losses) in the Consolidated Statements of Operations	8			(2)		6
DAC/VOBA and Sales inducements	(302)		(1)	63		(239)
Premium deficiency reserve adjustment	(224)			47		(177)
Change in unrealized gains (losses) on available-for-sale securities	793			(167)		626

Derivatives:
Derivatives	(22)		(2)	5		(17)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations	(23)			5		(18)
Change in unrealized gains (losses) on derivatives	(45)			10		(35)

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations	(1)		(3)	—		(1)
Change in pension and other postretirement benefits liability	(1)			—		(1)
Change in Accumulated other comprehensive income (loss)	$	747		$	(157)	$	590

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

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

(3) See the Benefit Plans Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs.


	Year Ended December 31, 2019
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	1,996		$	(419)	$	1,577

Other	—			—		—

Adjustments for amounts recognized in Net gains (losses) in the Consolidated Statements of Operations	(11)			2		(9)
DAC/VOBA and Sales inducements	(479)		(1)	100		(379)
Premium deficiency reserve adjustment	(160)			33		(127)
Change in unrealized gains (losses) on available-for-sale securities	1,346			(284)		1,062

Derivatives:
Derivatives	1		(2)	—		1
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations	(23)			5		(18)
Change in unrealized gains (losses) on derivatives	(22)			5		(17)

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations	(1)		(3)	3		2
Change in pension and other postretirement benefits liability	(1)			3		2
Change in Accumulated other comprehensive income (loss)	$	1,323		$	(276)	$	1,047

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

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

(3) See the Benefit Plans Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs.