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General (Tables) | 9 Months Ended
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Sep. 30, 2023
Accounting Policies [Abstract] |
Schedule of new accounting pronouncements and changes in accounting principles | The following table presents a roll-forward of the pre-transition LFPB balance as of January 1, 2021:
(In millions) |
Balance as of December 31, 2020, as previously reported | $ | 13,318 |
Reclassification of reserves for policyholders currently receiving benefits to Future policy benefits (1) | 2,844 |
De-recognition of shadow reserves | (3,293) |
Re-measurement using an upper-medium grade fixed income instrument yield discount rate | 6,255 |
Other adjustments | 8 |
Balance as of January 1, 2021, as adjusted | $ | 19,132 |
(1) In conjunction with the adoption of ASU 2018-12, at January 1, 2023, the Company reclassified the long term care reserves for policyholders currently receiving benefits from Claim and claim adjustment expenses to Future policy benefits. This change was applied retrospectively as of January 1, 2021. The following table presents after tax adjustments to the opening balance of Stockholders’ equity resulting from adoption of ASU 2018-12:
(In millions) | Accumulated other comprehensive income (loss) |  | Retained earnings
Balance as of December 31, 2020, as previously reported | $ | 803 |  |  | $ | 9,081 |
De-recognition of shadow reserves | 2,601 |  |  | — |
Re-measurement of LFPB using an upper-medium grade fixed income instrument yield discount rate | (4,941) |  |  | — |
Other adjustments | — |  |  | (6) |
Balance as of January 1, 2021, as adjusted | $ | (1,537) |  |  | $ | 9,075 |
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Operations for the three months ended September 30, 2022 were as follows:
(In millions) | Prior to Adoption |  | Effect of Adoption |  | As reported
Insurance claims and policyholders’ benefits (1) | $ | 1,665 |  |  | $ | 215 |  |  | $ | 1,880 |
Income (loss) before income tax | 164 |  |  | (215) |  |  | (51) |
Income tax (expense) benefit | (36) |  |  | 45 |  |  | 9 |
Net income | 128 |  |  | (170) |  |  | (42) |
Basic earnings (loss) per share | 0.47 |  |  | (0.62) |  |  | (0.15) |
Diluted earnings (loss) per share | 0.47 |  |  | (0.62) |  |  | (0.15) |
(1) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain (loss) of $(211) million, which is presented parenthetically on the Condensed Consolidated Statement of Operations. The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Operations for the nine months ended September 30, 2022 were as follows:
(In millions) | Prior to Adoption |  | Effect of Adoption |  | As reported
Insurance claims and policyholders’ benefits (1) | $ | 4,703 |  |  | $ | 256 |  |  | $ | 4,959 |
Income (loss) before income tax | 787 |  |  | (256) |  |  | 531 |
Income tax (expense) benefit | (141) |  |  | 53 |  |  | (88) |
Net income | 646 |  |  | (203) |  |  | 443 |
Basic earnings (loss) per share | 2.38 |  |  | (0.75) |  |  | 1.63 |
Diluted earnings (loss) per share | 2.37 |  |  | (0.74) |  |  | 1.63 |
(1) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement gain (loss) of $(205) million, which is presented parenthetically on the Condensed Consolidated Statement of Operations. The effects of adoption of ASU 2018-12 on the Condensed Consolidated Balance Sheet as of December 31, 2022 were as follows:
(In millions) | Prior to Adoption |  | Effect of Adoption |  | As reported
Deferred income taxes | $ | 1,178 |  |  | $ | 73 |  |  | $ | 1,251 |
Total assets | 60,927 |  |  | 73 |  |  | 61,000 |
Claim and claim adjustment expenses (1) | 25,099 |  |  | (2,979) |  |  | 22,120 |
Future policy benefits (1) | 10,151 |  |  | 3,329 |  |  | 13,480 |
Total liabilities | 52,102 |  |  | 350 |  |  | 52,452 |
Retained earnings | 9,572 |  |  | (236) |  |  | 9,336 |
Accumulated other comprehensive income (loss) | (3,557) |  |  | (41) |  |  | (3,598) |
Total stockholders' equity | 8,825 |  |  | (277) |  |  | 8,548 |
(1) In conjunction with the adoption of ASU 2018-12, at January 1, 2023, the Company reclassified the long term care reserves for policyholders currently receiving benefits from Claim and claim adjustment expenses to Future policy benefits. This change was applied retrospectively as of January 1, 2021. The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months ended September 30, 2022 were as follows:
(In millions) | Prior to Adoption |  | Effect of Adoption |  | As reported
Changes in: Net unrealized gains and losses on other investments | $ | (1,327) |  |  | $ | (408) |  |  | $ | (1,735) |
Net unrealized gains and losses on investments | (1,329) |  |  | (408) |  |  | (1,737) |
Impact of changes in discount rates used to measure long-duration contract liabilities | — |  |  | 994 |  |  | 994 |
Other comprehensive income (loss), net of tax | (1,426) |  |  | 586 |  |  | (840) |
Total comprehensive income (loss) | (1,298) |  |  | 416 |  |  | (882) |
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Comprehensive Income (Loss) for the nine months ended September 30, 2022 were as follows:
(In millions) | Prior to Adoption |  | Effect of Adoption |  | As reported
Changes in: Net unrealized gains and losses on other investments | $ | (4,284) |  |  | $ | (2,320) |  |  | $ | (6,604) |
Net unrealized gains and losses on investments | (4,292) |  |  | (2,320) |  |  | (6,612) |
Impact of changes in discount rates used to measure long-duration contract liabilities | — |  |  | 4,136 |  |  | 4,136 |
Other comprehensive income (loss), net of tax | (4,459) |  |  | 1,816 |  |  | (2,643) |
Total comprehensive income (loss) | (3,813) |  |  | 1,613 |  |  | (2,200) |
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2022 were as follows:
(In millions) | Prior to Adoption |  | Effect of Adoption |  | As reported
Net income | $ | 646 |  |  | $ | (203) |  |  | $ | 443 |
Deferred income tax expense (benefit) | (18) |  |  | (53) |  |  | (71) |
Changes in: Insurance reserves | 1,743 |  |  | 256 |  |  | 1,999 |
The effects of adoption of ASU 2018-12 on segment results of operations of the Life & Group segment for the three months ended September 30, 2022 were as follows:
(In millions) | Prior to Adoption |  | Effect of Adoption |  | As reported
Net incurred claims and benefits (1) | $ | 310 |  |  | $ | 215 |  |  | $ | 525 |
Core income (loss) before income tax | (36) |  |  | (215) |  |  | (251) |
Income tax (expense) benefit on core income (loss) | 14 |  |  | 45 |  |  | 59 |
Core income (loss) | (22) |  |  | (170) |  |  | (192) |
(1) The effect of adopting ASU 2018-12 on Net incurred claims and benefits is inclusive of the re-measurement gain (loss) of $(211) million, which is presented parenthetically on the Condensed Consolidated Statement of Operations. The effects of adoption of ASU 2018-12 on segment results of operations of the Life & Group segment for the nine months ended September 30, 2022 were as follows:
(In millions) | Prior to Adoption |  | Effect of Adoption |  | As reported
Net incurred claims and benefits (1) | $ | 884 |  |  | $ | 256 |  |  | $ | 1,140 |
Core income (loss) before income tax | (24) |  |  | (256) |  |  | (280) |
Income tax (expense) benefit on core income (loss) | 31 |  |  | 53 |  |  | 84 |
Core income (loss) | 7 |  |  | (203) |  |  | (196) |
(1) The effect of adopting ASU 2018-12 on Net incurred claims and benefits is inclusive of the re-measurement gain (loss) of $(205) million, which is presented parenthetically on the Condensed Consolidated Statement of Operations. The effects of adoption of ASU 2018-12 on segment results for selected balance sheet lines of the Life & Group segment as of December 31, 2022 were as follows:
(In millions) | Prior to Adoption |  | Effect of Adoption |  | As reported
Claim and claim adjustment expenses (1) | $ | 3,674 |  |  | $ | (2,979) |  |  | $ | 695 |
Future policy benefits (1) | 10,151 |  |  | 3,329 |  |  | 13,480 |
(1) In conjunction with the adoption of ASU 2018-12, at January 1, 2023, the Company reclassified the long term care reserves for policyholders currently receiving benefits from Claim and claim adjustment expenses to Future policy benefits. This change was applied retrospectively as of January 1, 2021.

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