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SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Adoption of New Accounting Pronouncements

Description			Effect on the Financial Statement or Other Significant Matters
ASU 2018-12: Financial Services - Insurance (Topic 944)
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of Market Risk Benefits (“MRBs”). MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement.			On January 1, 2023, the Company adopted the new accounting standard ASU 2018-12 using the modified retrospective approach, except for MRBs which will use the full retrospective approach. Refer to “Transition impact of ASU 2018-12, Financial Services- Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts” section within this note for further details.

The following table presents the effect of transition adjustment to total equity resulting from the adoption of ASU 2018-12 as of January 1, 2021:

			Retained Earnings						Accumulated Other Comprehensive Income												Total
			(in millions)
Liability for future policy benefits			$	30					$	(1,343)											$	(1,313)
Market risk benefits			(3,398)						(902)												(4,300)
DAC			—						1,548												1,548
Unearned revenue liability and sales inducement assets (1)			—						(166)												(166)
Total transition adjustment before taxes			(3,368)						(863)												(4,231)
Income taxes			707						181												888
Total transition adjustment (net of taxes)			$	(2,661)					$	(682)											$	(3,343)

_______________

(1)Unearned revenue liability included within liability for future policy benefits financial statement line item in the consolidated balance sheet. Sales inducement assets are included in other assets in the consolidated balance sheets.

Schedule of Balance of and Changes in Liability for Future Policy Benefits

The following table summarizes the balance of and changes in liability for future policy benefits on January 1, 2021 resulting from the adoption of ASU 2018-12:

			Protection Solutions									Individual Retirement						Corporate & Other									Total
			Term												Payout						Group Pension									Health
			(in millions)
Balance, December 31, 2020			$	1,423											$	3,047					$	771					$	2,100		$	7,341
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income			—												(171)						(85)						(100)			(356)
Effect of remeasurement of liability at current single A rate (1)			560												531						94						300			1,485
Balance, January 1, 2021 (1)			1,983												3,407						780						2,300			8,470
Less: Reinsurance recoverable			(59)												—						—						(1,837)			(1,896)
Balance, January 1, 2021, net of reinsurance			$	1,924											$	3,407					$	780					$	463		$	6,574

________________

(1)LFPB transition table not inclusive of the following transition adjustments to AOCI including Protection Solutions PFBL of $550 million, PDR of $(230) million, Rider Reserves and Term Reinsurance of $(24) million and Corporate and Other of $(111) million.

Schedule of Market Risk Benefit, Activity

The following table summarizes the balance of and changes in the net liability position of market risk benefits on January 1, 2021 resulting from the adoption of ASU 2018-12:

			Individual Retirement						Legacy												Total
			GMxB Core						GMxB Legacy						Purchased MRB
			(in millions)
Balance, December 31, 2020			$	2,206					$	19,891					$	(2,572)					$	19,525
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income			(4)						(70)						—						(74)
Adjustments for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date (1)			505						461						2						968
Adjustments for the remaining difference (exclusive of the instrument specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurement for the MRB (1)			(563)						4,122						(194)						3,365
Balance, January 1, 2021			$	2,144					$	24,404					$	(2,764)					$	23,784

_____________

(1)MRB transition table not inclusive of the following transition adjustments to retained earnings and AOCI including Individual Retirement EQUI-VEST of $43 million, SCS of $21 million, Protection Solutions of $(2) million and Group Retirement EQUI-VEST of $(20) million.

The following table presents the balances and changes to the balances for the market risk benefits for the GMxB benefits on deferred variable annuities for the three and six months ended June 30, 2023 and 2022.

			Three Months Ended June 30,
			2023																								2022
			Individual Retirement						Legacy																		Individual Retirement						Legacy
			GMxB Core						GMxB Legacy						Purchased MRB (3)						Net Legacy						GMxB Core						GMxB Legacy						Purchased MRB (3)						Net Legacy
			(in millions)
Balance, beginning of period			$	317					$	14,082					$	(10,669)					$	3,413					$	498					$	16,931					$	(12,507)					$	4,424
Balance BOP before changes in the instrument specific credit risk			550						15,599						(10,570)						5,029						540						17,901						(12,441)						5,460
Model changes and effect of changes in cash flow assumptions			—						—						—						—						—						—						—						—
Actual market movement effect			(119)						(636)						315						(321)						674						2,562						(1,015)						1,547
Interest accrual			20						194						(134)						60						12						179						(103)						76
Attributed fees accrued (1)			111						209						(58)						151						109						219						(61)						158
Benefit payments			(12)						(344)						185						(159)						(8)						(282)						152						(130)
Actual policyholder behavior different from expected behavior			5						(7)						(8)						(15)						4						26						(25)						1
Changes in future economic assumptions			(202)						(873)						443						(430)						(553)						(2,870)						1,870						(1,000)
Issuances			(2)						—						—						—						1						—						—						—
Balance EOP before changes in the instrument-specific credit risk			351						14,142						(9,827)						4,315						779						17,735						(11,623)						6,112
Changes in the instrument-specific credit risk (2)			(220)						(1,422)						(96)						(1,518)						(365)						(2,027)						(102)						(2,129)
Balance, end of period			$	131					$	12,720					$	(9,923)					$	2,797					$	414					$	15,708					$	(11,725)					$	3,983
Weighted-average age of policyholders (years)			64.0						72.8						72.3						N/A						63.0						72.2						71.8						N/A
Net amount at risk			$	3,165					$	22,195					$	11,821					N/A						$	3,181					$	22,421					$	11,946					N/A

			Six Months Ended June 30,
			2023																								2022
			Individual Retirement						Legacy																		Individual Retirement						Legacy
			GMxB Core						GMxB Legacy						Purchased MRB (3)						Net Legacy						GMxB Core						GMxB Legacy						Purchased MRB (3)						Net Legacy
			(in millions)
Balance, beginning of period			$	530					$	14,699					$	(10,415)					$	4,284					$	1,061					$	20,236					$	(14,059)					$	6,177
Balance BOP before changes in the instrument specific credit risk			529						15,314						(10,358)						4,956						666						19,719						(14,051)						5,668
Model changes and effect of changes in cash flow assumptions			—						—						—						—						—						(87)						29						(58)
Actual market movement effect			(330)						(1,380)						702						(678)						1,002						3,660						(1,414)						2,246
Interest accrual			38						391						(287)						104						17						283						(164)						119
Attributed fees accrued (1)			206						418						(141)						277						201						438						(147)						291
Benefit payments			(24)						(686)						370						(316)						(13)						(533)						288						(245)
Actual policyholder behavior different from expected behavior			12						14						(26)						(12)						5						59						(40)						19
Changes in future economic assumptions			(77)						71						(87)						(16)						(1,095)						(5,804)						3,876						(1,928)
Issuances			(3)						—						—						—						(4)						—						—						—
Balance EOP before changes in the instrument-specific credit risk			351						14,142						(9,827)						4,315						779						17,735						(11,623)						6,112
Changes in the instrument-specific credit risk (2)			(220)						(1,422)						(96)						(1,518)						(365)						(2,027)						(102)						(2,129)
Balance, end of period			$	131					$	12,720					$	(9,923)					$	2,797					$	414					$	15,708					$	(11,725)					$	3,983
Weighted-average age of policyholders (years)			64.0						72.8						72.3						N/A						63.0						72.2						71.8						N/A
Net amount at risk			$	3,165					$	22,195					$	11,821					N/A						$	3,181					$	22,421					$	11,946					N/A

_____________

(1)Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims.

(2)Changes are recorded in OCI except for reinsurer credit which is reflected in the income statement.

(3)Purchased MRB is the impact of non-affiliated reinsurance.

The following table reconciles market risk benefits by the amounts in an asset position and amounts in a liability position to the market risk amounts in the consolidated balance sheet as of June 30, 2023 and December 31, 2022.

			June 30, 2023																														December 31, 2022
			Direct Asset						Direct Liability						Net Direct MRB						Purchased MRB						Total						Direct Asset						Direct Liability						Net Direct MRB						Purchased MRB						Total
			(in millions)
Individual Retirement
GMxB Core			$	(599)					$	729					$	131					$	—					$	131					$	(387)					$	917					$	530					$	—					$	530
Legacy Segment
GMxB Legacy			(120)						12,840						12,720						(9,923)						2,797						(51)						14,749						14,699						(10,412)						4,287
Other (1)			(58)						73						14						(8)						6						(52)						100						47						(11)						36
Total			$	(777)					$	13,642					$	12,865					$	(9,931)					$	2,934					$	(490)					$	15,766					$	15,276					$	(10,423)					$	4,853

______________

(1)Other primarily includes Individual EQUI-VEST MRB.

Schedule of Deferred Policy Acquisition Costs

The following table summarizes the balance of and changes in DAC on January 1, 2021 resulting from the adoption of ASU 2018-12:

			Protection Solutions																								Legacy						Individual Retirement																								Group Retirement												Total
			Term						UL (1)						VUL (2)						IUL (3)						GMxB Legacy						GMxB Core						EI (4)						IE (5)						SCS						EG (6)						Momentum
			(in millions)
Balance, December 31, 2020			$	403					$	—					$	—					$	—					$	654					$	1,635					$	134					$	95					$	645					$	553					$	79					$	4,198
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income			—						177						714						162						13						11						20						(1)						210						81						22						1,409
Balance, January 1, 2021 (7)			$	403					$	177					$	714					$	162					$	667					$	1,646					$	154					$	94					$	855					$	634					$	101					$	5,607

______________

(1)    “UL” defined as Universal Life

(2)    “VUL” defined as Variable Universal Life

(3)    “IUL” defined as Indexed Universal Life

(4)    “EI” defined as EQUI-VEST Individual

(5)    “IE” defined as Investment Edge

(6)    “EG” defined as EQUI-VEST Group

(7)     DAC transition table not inclusive of Closed Block of $136 million and Protection Solutions of $3 million transition adjustment.

Changes in the DAC asset for the six months ended June 30, 2023 and 2022 were as follows:

			Six Months Ended June 30, 2023
			Protection Solutions																								Individual Retirement																								Legacy						Group Retirement												Corporate and Other						Total
			Term						UL						VUL						IUL						GMxB Core						EI						IE						SCS						GMxB Legacy						EG						Momentum						CB (1)
			(in millions)
Balance, beginning of period			$	362					$	179					$	889					$	185					$	1,625					$	156					$	148					$	1,279					$	593					$	710					$	89					$	127					$	6,342
Capitalization			8						3						73						6						54						6						21						228						14						33						5						—						451
Amortization (2)			(20)						(6)						(28)						(5)						(70)						(6)						(7)						(96)						(32)						(20)						(9)						(5)						(304)
Balance, end of period			$	350					$	176					$	934					$	186					$	1,609					$	156					$	162					$	1,411					$	575					$	723					$	85					$	122					$	6,489

______________

(1)“CB” defined as Closed Block.

(2)DAC amortization of $2 million related to Other not reflected in table above.

			Six Months Ended June 30, 2022
			Protection Solutions																								Individual Retirement																								Legacy						Group Retirement												Corporate and Other						Total
			Term						UL						VUL						IUL						GMxB Core						EI						IE						SCS						GMxB Legacy						EG						Momentum						CB (1)
			(in millions)
Balance, beginning of period			$	385					$	180					$	799					$	180					$	1,653					$	156					$	121					$	1,070					$	631					$	677					$	94					$	138					$	6,084
Capitalization			9						6						72						8						60						6						21						189						16						36						7						—						430
Amortization (2)			(21)						(6)						(25)						(5)						(67)						(6)						(7)						(81)						(33)						(20)						(10)						(6)						(287)
Balance, end of period			$	373					$	180					$	846					$	183					$	1,646					$	156					$	135					$	1,178					$	614					$	693					$	91					$	132					$	6,227

______________

(1)“CB” defined as Closed Block.

(2)DAC amortization of $2 million related to Other not reflected in table above.

Changes in the Individual Retirement sales inducement assets for the six months ended June 30, 2023 and 2022 were as follows:

			Six Months Ended June 30,
			2023												2022
			GMxB Core						GMxB Legacy						GMxB Core						GMxB Legacy
			(in millions)
Balance, beginning of period			$	137					$	200					$	147					$	222
Capitalization			1						—						1						—
Amortization			(6)						(11)						(6)						(11)
Balance, end of period			$	132					$	189					$	142					$	211

Changes in the Protection Solutions unearned revenue liability for the six months ended June 30, 2023 and 2022 were as follows:

			Six Months Ended June 30,
			2023																		2022
			UL						VUL						IUL						UL						VUL						IUL
			(in millions)
Balance, beginning of period			$	95					$	684					$	157					$	80					$	619					$	94
Capitalization			9						56						33						11						50						36
Amortization			(3)						(22)						(5)						(3)						(20)						(3)
Balance, end of period			$	101					$	718					$	185					$	88					$	649					$	127

Schedule of Deferred Income

The following tables summarizes the balance of and changes in sales inducement assets and unearned revenue liability on January 1, 2021 resulting from the adoption of ASU 2018-12:

			Sales Inducement Assets
			Legacy						Individual Retirement						Total
			GMxB Legacy						GMxB Core
			(in millions)
Balance, December 31, 2020			$	246					$	158					$	404
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income			—						—						—
Balance, January 1, 2021			$	246					$	158					$	404

			Protection Solutions																		Total
			Unearned Revenue Liability
			UL						VUL						IUL
			(in millions)
Balance, December 31, 2020			$	31					$	438					$	14					$	483
Adjustment for reversal of balances recorded in Accumulated Other Comprehensive Income			29						127						9						165
Balance, January 1, 2021			$	60					$	565					$	23					$	648

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