Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2022

Condensed Balance Sheets


	December 31,
	2022		2021

	(In millions, except per-share data)
ASSETS
Current assets:
Cash and cash equivalents	$	329	$	274
Investments	46		74

Due from affiliates	143		74
Prepaid expenses and other current assets	106		142
Total current assets	624		564
Property, equipment, and capitalized software, net	224		349
Goodwill and intangible assets, net	731		699
Investments in subsidiaries	4,142		3,772
Deferred income taxes	37		(18)
Advances to related parties and other assets	78		68
Total assets	$	5,836	$	5,434
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued liabilities and other	$	448	$	378
Total current liabilities	448		378
Long-term debt	2,176		2,173
Finance lease liabilities	215		219
Other long-term liabilities	33		34
Total liabilities	2,872		2,804
Stockholders’ equity:
Common stock, $0.001 par value; 150 million shares authorized; outstanding: 58 million shares at each of December 31, 2022 and December 31, 2021	—		—
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding	—		—
Additional paid-in capital	328		236
Accumulated other comprehensive loss	(160)		(5)
Retained earnings	2,796		2,399
Total stockholders’ equity	2,964		2,630
Total liabilities and stockholders’ equity	$	5,836	$	5,434

Condensed Statements of Income


	Year Ended December 31,
	2022		2021		2020

	(In millions)
Revenue:
Administrative services fees	$	1,826	$	1,496	$	1,208
Investment income and other revenue	8		11		13
Total revenue	1,834		1,507		1,221
Expenses:
General and administrative expenses	1,721		1,424		1,089
Depreciation and amortization	141		98		67
Impairment	138		—		—
Other	—		5		24
Total operating expenses	2,000		1,527		1,180
Operating (loss) income	(166)		(20)		41
Interest expense	110		120		102
Other expenses, net	—		25		15
Total other expenses, net	110		145		117
Loss before income tax benefit and equity in net earnings of subsidiaries	(276)		(165)		(76)
Income tax benefit	(42)		(21)		(5)
Net loss before equity in net earnings of subsidiaries	(234)		(144)		(71)
Equity in net earnings of subsidiaries	1,026		803		744
Net income	$	792	$	659	$	673

Condensed Statements of Comprehensive Income


	Year Ended December 31,
	2022		2021		2020

	(In millions)
Net income	$	792	$	659	$	673
Other comprehensive (loss) income:
Unrealized investment (loss) income	(204)		(55)		44
Less: effect of income taxes	(49)		(13)		11
Other comprehensive (loss) income, net of tax	(155)		(42)		33
Comprehensive income	$	637	$	617	$	706

Condensed Statements of Cash Flows


	Year Ended December 31,
	2022		2021		2020

	(In millions)
Operating activities:
Net cash provided by operating activities	$	119	$	60	$	67
Investing activities:
Capital contributions to subsidiaries	(159)		(440)		(107)
Dividends received from subsidiaries	668		564		635
Purchases of investments	(29)		(27)		(188)
Proceeds from sales and maturities of investments	49		21		282
Purchases of property, equipment and capitalized software	(86)		(70)		(74)
Net cash paid in business combinations	—		(263)		(1,028)
Change in amounts due to/from affiliates	(69)		40		(68)
Other, net	3		(3)		3
Net cash provided by (used in) investing activities	377		(178)		(545)
Financing activities:
Common stock purchases	(400)		(128)		(606)
Common stock withheld to settle employee tax obligations	(54)		(53)		(8)
Contingent consideration liabilities settled	(20)		(20)		—
Proceeds from senior notes offering, net of issuance costs	—		740		1,429
Repayment of senior notes	—		(723)		(338)
Repayment of term loan facility	—		—		(600)
Proceeds from borrowings under term loan facility	—		—		380
Cash paid for partial termination of warrants	—		—		(30)
Cash paid for partial settlement of conversion option	—		—		(27)
Cash received for partial settlement of call option	—		—		27
Repayment of principal amount of convertible notes	—		—		(12)
Other, net	33		1		2
Net cash (used in) provided by financing activities	(441)		(183)		217
Net increase (decrease) in cash and cash equivalents	55		(301)		(261)
Cash and cash equivalents at beginning of period	274		575		836
Cash and cash equivalents at end of period	$	329	$	274	$	575