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SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2022
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 EarningsAccumulated Other Comprehensive IncomeTotal
(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 taxes707 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.
Liability for Future Policy Benefit, Activity 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 SolutionsIndividual
Retirement		Corporate & OtherTotal
TermPayoutGroup
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 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)
$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.
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 RetirementLegacyTotal
GMxB CoreGMxB LegacyPurchased 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 date505 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 twelve months ended and as of December 31, 2022 and 2021.
December 31, 2022December 31, 2021
Individual RetirementLegacyIndividual RetirementLegacy
 GMxB CoreGMxB LegacyPurchased MRB (3)Net LegacyGMxB CoreGMxB LegacyPurchased MRB (3)Net Legacy
(Dollars in millions)
Balance, beginning of the period (“BOP”)$1,061 $20,236 $(14,059)$6,177 $2,143 $24,405 $(2,763)$21,642 
Balance BOP before changes in the instrument specific credit risk$666 19,719 (14,051)5,668 $1,639 23,944 (2,766)21,178 
Model changes and effect of changes in cash flow assumptions(5)317 (143)174 (280)(196)36 (160)
Actual market movement effect1,074 3,402 (1,226)2,176 (665)(3,026)799 (2,227)
Interest accrual37 731 (489)242 7 197 (122)75 
Attributed fees accrued (1)399 882 (295)587 386 918 (194)724 
Benefit payments(37)(1,179)669 (510)(14)(902)350 (552)
Actual policyholder behavior different from expected behavior24 142 (102)40 (9)135 (56)79 
Changes in future economic assumptions(1,626)(8,700)5,279 (3,421)(397)(1,351)(950)(2,301)
Issuances(3)— — — (1)— (11,148)(11,148)
Balance EOP before changes in the instrument-specific credit risk$529 15,314 (10,358)4,956 $666 19,719 (14,051)5,668 
Changes in the instrument-specific credit risk (2)1 (615)(57)(672)395 517 (8)509 
Balance, end of the period (“EOP”)$530 $14,699 $(10,415)$4,284 $1,061 $20,236 $(14,059)$6,177 
Weighted-average age of policyholders (years)63.572.667.5N/A62.672.066.9N/A
Net amount at risk$3,530 $22,631 $10,766 N/A$1,115 $15,901 $6,341 N/A
______________
(1)    Attributed fees accrued represents the portion of the fees needed to fund future GMxB claims.
(2)    Changes are recorded in OCI.
(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 December 31, 2022 and 2021.
December 31, 2022December 31, 2021
Direct AssetDirect LiabilityNet Direct MRBPurchased MRBTotalDirect AssetDirect LiabilityNet Direct MRBPurchased MRBTotal
(in millions)
Legacy Segment
GMxB Legacy$(51)$14,749 $14,699 $(10,412)$4,287 $(47)$20,282 $20,235 $(14,058)$6,177 
Individual Retirement
GMxB Core(387)917 530 — 530 (237)1,298 $1,061 — 1,061 
Other (1)(52)100 47 (11)36 (34)107 $73 (16)57 
Total$(490)$15,766 $15,276 $(10,423)$4,853 $(318)$21,687 $21,369 $(14,074)$7,295 
______________(1)Other primarily includes Individual EQUI-VEST MRB.
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 SolutionsLegacyIndividual RetirementGroup RetirementTotal
TermUL (1)VUL (2)IUL (3)GMxB LegacyGMxB CoreEI (4)IE (5)SCSEG (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 years ended December 31, 2022, and 2021 were as follows:
December 31, 2022
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVULIULGMxBCoreEI IE SCSGMxB LegacyEGMomentumCB
(1)
(in millions)
Balance beginning of the year$385 $180 $799 $180 $1,653 $156 $121 $1,070 $631 $677 $94 $138 $6,084 
Capitalization18 11 142 16 109 12 40 378 27 74 14 — 841 
Amortization (2)(41)(12)(52)(11)(137)(12)(13)(169)(65)(41)(19)(11)(583)
Balance, December 31, 2022$362 $179 $889 $185 $1,625 $156 $148 $1,279 $593 $710 $89 $127 $6,342 
______________
(1)    “CB” defined as Closed Block
(2)     DAC amortization of $3 million related to Other not reflected in table above.

December 31, 2021
Protection SolutionsIndividual RetirementLegacyGroup RetirementCorporate and OtherTotal
TermULVULIULGMxB CoreEI IE SCSGMxB LegacyEGMomentumCB
(1)
(in millions)
Balance beginning of the year$403 $177 $714 $162 $1,646 $154 $94 $855 $667 $634 $101 $150 $5,757 
Capitalization26 15 133 28 141 15 38 350 30 84 16 — 876 
Amortization (2)(44)(12)(48)(10)(134)(13)(11)(135)(66)(41)(23)(12)(549)
Balance, December 31, 2021$385 $180 $799 $180 $1,653 $156 $121 $1,070 $631 $677 $94 $138 $6,084 
______________
(1)     “CB” defined as Closed Block
(2)     DAC amortization of $3 million related to Other not reflected in table above.

Prior to the Company’s adoption of ASU 2018-12 effective January 1, 2021, changes in the DAC asset for the year ended 2020 were as follows:
December 31,
 2020
(in millions)
Balance, beginning of year$5,840 
Capitalization of commissions, sales and issue expenses669 
Amortization:
Impact of assumptions updates and model changes(1,109)
All other(504)
Total amortization(1,613)
Change in unrealized investment gains and losses(654)
Reclassified to assets HFS1 
Balance, end of year$4,243 


Changes in the Individual Retirement Sales Inducement Assets for the years ended December 31, 2022, and 2021 were as follows:
December 31, 2022December 31, 2021
GMxB CoreGMxB LegacyGMxB CoreGMxB Legacy
( in millions)
Balance beginning of the year$147 $222 $158 $246 
Capitalization2 — 1 — 
Amortization(12)(22)(12)(24)
Balance, end of the year$137 $200 $147 $222 

Changes in the Protection Solutions Unearned Revenue Liability for the years ended December 31, 2022, and 2021 were as follows:
 December 31, 2022December 31, 2021
ULVULIULULVULIUL
(in millions)
Balance beginning of the year$80 $619 $94 $60 $566 $24 
Capitalization21 105 71 25 92 74 
Amortization(6)(40)(8)(5)(39)(4)
Balance, end of the year$95 $684 $157 $80 $619 $94 

Prior to the Company’s adoption of ASU 2018-12 effective January 1, 2021, changes in the Sales Inducement Assets asset for the year ended 2020 were as follows:

Year Ended December 31,
 2020
(in millions)
Balance, beginning of year$430 
Amortization charged to income(26)
Balance, end of year$404 
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
LegacyIndividual RetirementTotal
GMxB LegacyGMxB 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
Unearned Revenue LiabilityTotal
ULVULIUL
(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