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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2023
Accounting Policies [Abstract] |
Adopted Accounting Updates | The following table illustrates the effect of adopting ASU 2018-12 in the consolidated balance sheets:
(Dollars in millions) | December 31, 2023 |  | December 31, 2022
|  |  | As originally reported | As adjusted | Difference
Reinsurance recoverable | $ | 651 |  |  | $ | 640 |  | $ | 665 |  | $ | 25 |
Prepaid reinsurance premiums | 55 |  |  | 79 |  | 51 |  | (28) |
Deferred policy acquisition costs | 1,093 |  |  | 1,014 |  | 1,013 |  | (1) |
Total assets | 32,769 |  |  | 29,736 |  | 29,732 |  | (4) |
Life policy and investment contract reserves | 3,068 |  |  | 3,059 |  | 3,015 |  | (44) |
Deferred income tax | 1,324 |  |  | 1,045 |  | 1,054 |  | 9 |
Total liabilities | 20,671 |  |  | 19,205 |  | 19,170 |  | (35) |
Retained earnings | 13,084 |  |  | 11,702 |  | 11,711 |  | 9 |
Accumulated other comprehensive income | (435) |  |  | (636) |  | (614) |  | 22 |
Total shareholders' equity | 12,098 |  |  | 10,531 |  | 10,562 |  | 31 |
Total liabilities and shareholders' equity | 32,769 |  |  | 29,736 |  | 29,732 |  | (4) |
The following table illustrates the effect of adopting ASU 2018-12 in the consolidated statements of income and consolidated statements of comprehensive income:
(Dollars in millions, except per share data) | Years ended December 31,
| 2023 |  | 2022 | 2021 |  |
|  |  | As originally reported | As adjusted | Difference | As originally reported | As adjusted | Difference |  |  |  |
Earned premiums | $ | 7,958 |  |  | $ | 7,219 |  | $ | 7,225 |  | $ | 6 |  | $ | 6,482 |  | $ | 6,478 |  | $ | (4) |  |  |  |  |
Insurance losses and contract holders' benefits | 5,274 |  |  | 5,012 |  | 5,019 |  | 7 |  | 3,936 |  | 3,909 |  | (27) |  |  |  |  |
Underwriting, acquisition and insurance expenses | 2,384 |  |  | 2,162 |  | 2,162 |  | — |  | 1,951 |  | 1,946 |  | (5) |  |  |  |  |
Deferred income tax expense | 223 |  |  | (355) |  | (355) |  | — |  | 477 |  | 483 |  | 6 |  |  |  |  |
Net Income (Loss) | 1,843 |  |  | (486) |  | (487) |  | (1) |  | 2,946 |  | 2,968 |  | 22 |  |  |  |  |
Change in life policy reserves, reinsurance recoverable and other, net of tax | (34) |  |  | 1 |  | 374 |  | 373 |  | 9 |  | 92 |  | 83 |  |  |  |  |
Other comprehensive income (loss) | 179 |  |  | (1,284) |  | (911) |  | 373 |  | (121) |  | (38) |  | 83 |  |  |  |  |
Comprehensive Income (Loss) | 2,022 |  |  | (1,770) |  | (1,398) |  | 372 |  | 2,825 |  | 2,930 |  | 105 |  |  |  |  |
Net income (loss) per share: |  |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 11.74 |  |  | $ | (3.06) |  | $ | (3.06) |  | $ | — |  | $ | 18.29 |  | $ | 18.43 |  | $ | 0.14 |  |  |  |  |
Diluted | 11.66 |  |  | (3.06) |  | (3.06) |  | — |  | 18.10 |  | 18.24 |  | 0.14 |  |  |  |  |
The table below shows the ASU 2018-12 adoption impacts to the life policy and investment contract reserves as of January 1, 2021, (transition date), pre-tax:
(Dollars in millions) |  |  |  | Term |  | Whole life |  | Deferred annuity |  | Universal life |  |  |  | Other |  | Total
At January 1, 2021
Balance, pre-adoption at December 31, 2020 |  |  |  | $ | 901 |  |  | $ | 363 |  |  | $ | 761 |  |  | $ | 567 |  |  |  |  | $ | 323 |  |  | $ | 2,915 |
Removal of shadow adjustments |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | 13 |  |  | 13 |
Net premiums in excess of gross premiums |  |  |  | 14 |  |  | 1 |  |  | — |  |  | — |  |  |  |  | — |  |  | 15 |
Remeasurement at market value discount rates |  |  |  | 372 |  |  | 245 |  |  | — |  |  | — |  |  |  |  | — |  |  | 617 |
Balance, post-adoption at January 1, 2021 |  |  |  | $ | 1,287 |  |  | $ | 609 |  |  | $ | 761 |  |  | $ | 567 |  |  |  |  | $ | 336 |  |  | $ | 3,560 |
The table below shows the ASU 2018-12 adoption impacts to the life reinsurance recoverable asset as of January 1, 2021, pre-tax:
(Dollars in millions) |  |  |  | Term |  | Whole life |  | Deferred annuity |  | Universal life |  | Other |  | Total
At January 1, 2021 |  |  |  |  |  |  |
Balance, pre-adoption at December 31, 2020 |  |  |  | $ | 113 |  |  | $ | 26 |  |  | $ | — |  |  | $ | — |  |  | $ | 78 |  |  | $ | 217 |
Remeasurement at market value discount rates |  |  |  | 29 |  |  | 18 |  |  | — |  |  | — |  |  | — |  |  | 47 |
Other adjustments |  |  |  | 20 |  |  | 1 |  |  | — |  |  | 2 |  |  | — |  |  | 23 |
Balance, post-adoption at January 1, 2021 |  |  |  | $ | 162 |  |  | $ | 45 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 78 |  |  | $ | 287 |

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