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EQUITY | 6 Months Ended
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Jun. 30, 2023
Equity [Abstract] |
EQUITY | EQUITY Preferred Stock Preferred stock authorized, issued and outstanding was as follows:
|  | June 30, 2023 |  | December 31, 2022
Series |  | Shares Authorized |  | Shares Issued |  | Shares Outstanding |  | Shares Authorized |  | Shares Issued |  | Shares Outstanding
Series A |  | 32,000 |  |  | 32,000 |  |  | 32,000 |  |  | 32,000 |  |  | 32,000 |  |  | 32,000 |
Series B |  | 20,000 |  |  | 20,000 |  |  | 20,000 |  |  | 20,000 |  |  | 20,000 |  |  | 20,000 |
Series C |  | 12,000 |  |  | 12,000 |  |  | 12,000 |  |  | 12,000 |  |  | 12,000 |  |  | 12,000 |
Total |  | 64,000 |  |  | 64,000 |  |  | 64,000 |  |  | 64,000 |  |  | 64,000 |  |  | 64,000 |
Dividends declared per share were as follows for the periods indicated:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |
Series A dividends declared | $ | 328 |  |  | $ | 328 |  |  | $ | 656 |  |  | $ | 656 |  |  |
Series B dividends declared | $ | 619 |  |  | $ | 619 |  |  | $ | 619 |  |  | $ | 619 |  |  |
Series C dividends declared | $ | 269 |  |  | $ | 269 |  |  | $ | 538 |  |  | $ | 538 |  |  |
Common Stock Dividends declared per share of common stock were as follows for the periods indicated:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |
Dividends declared | $ | 0.22 |  |  | $ | 0.20 |  |  | $ | 0.42 |  |  | $ | 0.38 |  |  |
Share Repurchase On February 9, 2022, the Company’s Board of Directors authorized a new $1.2 billion share repurchase program. Under this program, the Company may, from time to time purchase shares of its common stock through various means. The Company may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate the Company to purchase any particular number of shares. On February 9, 2023, the Company’s Board of Directors authorized a new $700 million share repurchase program. Under this program, the Company may, from time to time, purchase shares of its common stock through various means. The Company may choose to suspend or discontinue the repurchase program at any time. The repurchase program does not obligate the Company to purchase any particular number of shares. As of June 30, 2023, Holdings had authorized capacity of approximately $629 million remaining in its share repurchase program. Holdings repurchased a total of 8.9 million, 7.6 million, 16.2 million and 16.2 million shares of its common stock at an average price of $25.33, $28.90, $27.19, and $30.81 through open market repurchases, ASRs and privately negotiated transactions during the three and six months ended June 30, 2023 and 2022, respectively. During the three and six months ended June 30, 2023 and 2022, Holdings repurchased 3.6 million, 0.0 million, 8.1 million and 7.9 million shares of its common stock through open market repurchases. Accelerated Share Repurchase Agreement In June 2023, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $75 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a pre-payment of $75 million and received initial delivery of 2.4 million Holdings’ shares. The ASR terminated in July 2023, at which time an additional 369,000 shares of common stock were received. In April 2023, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $75 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a pre-payment of $75 million and received initial delivery of 2.4 million Holdings’ shares. The ASR terminated in May 2023, at which time an additional 598,000 shares of common stock were received. In January 2023, Holdings entered into an ASR with a third-party financial institution to repurchase an aggregate of $75 million of Holdings’ common stock. Pursuant to the ASR, Holdings made a pre-payment of $75 million and received initial delivery of 2 million Holdings’ shares. The ASR terminated in March 2023, at which time an additional 424,000 shares of common stock were received. Accumulated Other Comprehensive Income (Loss) AOCI represents cumulative gains (losses) on items that are not reflected in net income (loss). The balances as of June 30, 2023 and December 31, 2022 follow:
| June 30, |  | December 31, |  |
| 2023 |  | 2022 |  |
| (in millions)
Unrealized gains (losses) on investments | $ | (8,537) |  |  | $ | (9,324) |  |  |
Market risk benefits - instrument-specific credit risk component | 1,745 |  |  | 668 |  |  |
Liability for future policy benefits - current discount rate component | 307 |  |  | 355 |  |  |
Defined benefit pension plans | (622) |  |  | (650) |  |  |
Foreign currency translation adjustments | (80) |  |  | (91) |  |  |
Total accumulated other comprehensive income (loss) | (7,187) |  |  | (9,042) |  |  |
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest | (45) |  |  | (50) |  |  |
Accumulated other comprehensive income (loss) attributable to Holdings | $ | (7,142) |  |  | $ | (8,992) |  |  |
The components of OCI, net of taxes for the three and six months ended June 30, 2023 and 2022 is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |
| (in millions)
Change in net unrealized gains (losses) on investments: |  |  |  |  |  |  |  |  |
Net unrealized gains (losses) arising during the period | $ | (700) |  |  | $ | (4,654) |  |  | $ | 871 |  |  | $ | (9,734) |  |  |
(Gains) losses reclassified into net income (loss) during the period (1) | 37 |  |  | 169 |  |  | 100 |  |  | 433 |  |  |
Net unrealized gains (losses) on investments | (663) |  |  | (4,485) |  |  | 971 |  |  | (9,301) |  |  |
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 39 |  |  | 132 |  |  | 31 |  |  | 271 |  |  |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(332), $(1,157), $9 and $(2,401)) | (624) |  |  | (4,353) |  |  | 1,002 |  |  | (9,030) |  |  |
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 $(23), $299, $226 and $718) | (87) |  |  | 1,126 |  |  | 851 |  |  | 2,699 |  |  |
Liability for future policy benefits - change in current discount rate (net of deferred income tax expense (benefit) of $20, $102, $(10) and $225) | 74 |  |  | 385 |  |  | (38) |  |  | 847 |  |  |
Change in defined benefit plans: |  |  |  |  |  |  |  |  |
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost (3) | 9 |  |  | 2 |  |  | 29 |  |  | 45 |  |  |
Change in defined benefit plans (net of deferred income tax expense (benefit) of $(2), $0, $(7), and $(9)) | 9 |  |  | 2 |  |  | 29 |  |  | 45 |  |  |
Foreign currency translation adjustments: |  |  |  |  |  |  |  |  |
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |
| (in millions)
Foreign currency translation gains (losses) arising during the period | 5 |  |  | (33) |  |  | 11 |  |  | (45) |  |  |
Foreign currency translation adjustment | 5 |  |  | (33) |  |  | 11 |  |  | (45) |  |  |
Total other comprehensive income (loss), net of income taxes | (623) |  |  | (2,873) |  |  | 1,855 |  |  | (5,484) |  |  |
Less: Other comprehensive income (loss) attributable to noncontrolling interest | 3 |  |  | (12) |  |  | 5 |  |  | (16) |  |  |
Other comprehensive income (loss) attributable to Holdings | $ | (626) |  |  | $ | (2,861) |  |  | $ | 1,850 |  |  | $ | (5,468) |  |  |
______________ (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 $(10) million, $(45) million, $(26) million and $(115) million for the three and six months ended June 30, 2023 and 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.

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