Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2023

Condensed Balance Sheets


	December 31,
	2023		2022

	(In millions, except per-share data)
ASSETS
Current assets:
Cash and cash equivalents	$	694	$	329
Investments	48		46

Due from affiliates	174		143
Prepaid expenses and other current assets	133		106
Total current assets	1,049		624
Property, equipment, and capitalized software, net	234		224
Goodwill and intangible assets, net	825		731
Investments in subsidiaries	4,911		4,142
Deferred income taxes, net	57		37
Advances to related parties and other assets	94		78
Total assets	$	7,170	$	5,836
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued liabilities and other	$	527	$	448
Total current liabilities	527		448
Long-term debt	2,180		2,176
Finance lease liabilities	205		215
Other long-term liabilities	43		33
Total liabilities	2,955		2,872
Stockholders’ equity:
Common stock, $0.001 par value; 150 million shares authorized; outstanding: 58 million shares at each of December 31, 2023 and December 31, 2022	—		—
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding	—		—
Additional paid-in capital	410		328
Accumulated other comprehensive loss	(82)		(160)
Retained earnings	3,887		2,796
Total stockholders’ equity	4,215		2,964
Total liabilities and stockholders’ equity	$	7,170	$	5,836

Condensed Statements of Income


	Year Ended December 31,
	2023		2022		2021

	(In millions)
Revenue:
Administrative services fees	$	2,038	$	1,826	$	1,496
Investment income and other revenue	27		8		11
Total revenue	2,065		1,834		1,507
Expenses:
General and administrative expenses	1,952		1,721		1,424
Depreciation and amortization	131		141		98
Impairment	—		138		—
Other	20		—		5
Total operating expenses	2,103		2,000		1,527
Operating loss	(38)		(166)		(20)
Interest expense	109		110		120
Other expenses, net	—		—		25
Total other expenses, net	109		110		145
Loss before income tax benefit and equity in net earnings of subsidiaries	(147)		(276)		(165)
Income tax benefit	(7)		(42)		(21)
Net loss before equity in net earnings of subsidiaries	(140)		(234)		(144)
Equity in net earnings of subsidiaries	1,231		1,026		803
Net income	$	1,091	$	792	$	659

Condensed Statements of Comprehensive Income


	Year Ended December 31,
	2023		2022		2021

	(In millions)
Net income	$	1,091	$	792	$	659
Other comprehensive income (loss):
Unrealized investment income (loss)	102		(204)		(55)
Less: effect of income taxes	24		(49)		(13)
Other comprehensive income (loss), net of tax	78		(155)		(42)
Comprehensive income	$	1,169	$	637	$	617

Condensed Statements of Cash Flows


	Year Ended December 31,
	2023		2022		2021

	(In millions)
Operating activities:
Net cash provided by operating activities	$	81	$	119	$	60
Investing activities:
Capital contributions to subsidiaries	(221)		(159)		(440)
Dividends received from subsidiaries	705		668		564
Purchases of investments	(2)		(29)		(27)
Proceeds from sales and maturities of investments	1		49		21
Purchases of property, equipment and capitalized software	(79)		(86)		(70)
Net cash paid in business combinations	(74)		—		(263)
Change in amounts due to/from affiliates	5		(69)		40
Other, net	7		3		(3)
Net cash provided by (used in) investing activities	342		377		(178)
Financing activities:
Common stock purchases	—		(400)		(128)
Common stock withheld to settle employee tax obligations	(60)		(54)		(53)
Contingent consideration liabilities settled	—		(20)		(20)
Proceeds from senior notes offering, net of issuance costs	—		—		740
Repayment of senior notes	—		—		(723)






Other, net	2		33		1
Net cash used in financing activities	(58)		(441)		(183)
Net increase (decrease) in cash and cash equivalents	365		55		(301)
Cash and cash equivalents at beginning of period	329		274		575
Cash and cash equivalents at end of period	$	694	$	329	$	274