XML 22 R9.htm IDEA: XBRL DOCUMENT
v3.23.1

Financial Services, Insurance, ASU 2018-12 Transition | 3 Months Ended
--- | ---
Mar. 31, 2023
ASU 2018-12 Transition [Abstract] |
ASU 2018-12 Transition | ASU 2018-12 Transition The Company adopted ASU 2018-12 for LFPBs, DAC and other balances amortized on a basis consistent with DAC by applying the guidance to contracts in-force on the basis of their existing carrying amounts at the transition date. The Company adopted ASU 2018-12 for MRBs on a fully retrospective basis. The effect of transition adjustments on stockholders’ equity at January 1, 2021 due to the adoption of ASU 2018-12 was as follows:
|  | Retained Earnings (Deficit) |  | AOCI
|  | (In millions)
Liability for future policy benefits |  | $ | (436) |  |  | $ | (2,073) |
Market risk benefits and related adjustments |  | (6,237) |  |  | (3,454) |
DAC and VOBA |  | — |  |  | 520 |
Reinsurance recoverables |  | (141) |  |  | 34 |
Deferred income tax asset |  | 1,431 |  |  | 1,044 |
Total |  | $ | (5,383) |  |  | $ | (3,929) |
For LFPBs, the transition adjustment to retained earnings relates to instances where net premiums exceed gross premiums resulting in LFPBs being increased to eliminate the premium deficiency. The premium deficiency primarily relates to structured settlement annuities. The transition adjustment related to AOCI represents the effect of the requirement to discount LFPBs based on an upper-medium grade fixed income rate as well as the removal of amounts previously recorded in AOCI for the effects of unrealized investment gains and losses. For MRBs, the transition adjustment to AOCI relates to the cumulative effect of changes in the nonperformance risk between contract issue date and transition date. The remaining difference between the estimated fair value and carrying amount of MRBs at transition, excluding the amounts recorded in AOCI, was recorded as an adjustment to retained earnings as of the transition date. For DAC and VOBA, the Company removed amounts previously recorded in AOCI for the effect of unrealized investment gains and losses. For reinsurance, the adjustments to both retained earnings and AOCI were made to align the measurement of reinsurance recoverables with the related LFPBs. The balances of and changes in LFPBs at January 1, 2021 due to the adoption of ASU 2018-12 were as follows:
|  | Term and Whole Life Insurance |  | Income Annuities |  | Structured Settlement and Pension Risk Transfer Annuities
|  | (In millions)
Balance at December 31, 2020 |  | $ | 2,854 |  |  | $ | 4,311 |  |  | $ | 10,115 |
Removal of related balances in AOCI |  | — |  |  | (203) |  |  | (1,784) |
Change in cash flow assumptions |  | 14 |  |  | (171) |  |  | 200 |
Initial recognition of deferred profit liabilities |  | — |  |  | 176 |  |  | 217 |
Change in discount rate assumptions |  | 536 |  |  | 754 |  |  | 2,770 |
Adjusted balance at January 1, 2021 |  | 3,404 |  |  | 4,867 |  |  | 11,518 |
Less: Reinsurance recoverable |  | 85 |  |  | 29 |  |  | 102 |
Adjusted balance at January 1, 2021, net of reinsurance |  | $ | 3,319 |  |  | $ | 4,838 |  |  | $ | 11,416 |
The balance of and changes in liabilities classified as MRBs at January 1, 2021 due to the adoption of ASU 2018-12 were as follows:
|  | Variable Annuities
|  | (In millions)
Balance at December 31, 2020 |  | $ | 8,924 |
Adjustment for the difference between carrying amount and estimated fair value, except for the difference due to nonperformance risk |  | 6,010 |
Adjustment for cumulative effect of changes in nonperformance risk since issuance |  | 3,454 |
Adjusted balance at January 1, 2021 |  | 18,388 |
Less: Reinsurance recoverable |  | 169 |
Adjusted balance at January 1, 2021, net of reinsurance |  | $ | 18,219 |
The balances of and changes in DAC and VOBA on January 1, 2021 due to the adoption of ASU 2018-12 were as follows:
|  | Variable Annuities |  | Fixed Rate Annuities |  | Index-Linked Annuities |  | Term and Whole Life Insurance |  | Universal Life Insurance
|  | (In millions)
DAC: |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2020 |  | $ | 2,440 |  |  | $ | 64 |  |  | $ | 886 |  |  | $ | 527 |  |  | $ | 492 |
Removal of related amounts in AOCI |  | 472 |  |  | — |  |  | — |  |  | — |  |  | (23) |
Adjusted balance at January 1, 2021 |  | $ | 2,912 |  |  | $ | 64 |  |  | $ | 886 |  |  | $ | 527 |  |  | $ | 469 |
VOBA: |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2020 |  | $ | 363 |  |  | $ | 76 |  |  | $ | — |  |  | $ | 8 |  |  | $ | 55 |
Removal of related amounts in AOCI |  | 65 |  |  | — |  |  | — |  |  | — |  |  | 6 |
Adjusted balance at January 1, 2021 |  | $ | 428 |  |  | $ | 76 |  |  | $ | — |  |  | $ | 8 |  |  | $ | 61 |
The following tables present amounts previously reported in 2022 and 2021, the effect on those amounts of the change due to the adoption of ASU 2018-12 as described in Note 1, and the currently reported amounts in the Unaudited Interim Consolidated Balance Sheets and Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). See Notes 4 and 5 for more information.
|  | December 31, 2022 |  | December 31, 2021
|  | As Previously Reported |  | Effect of Change |  | As Currently Reported |  | As Previously Reported |  | Effect of Change |  | As Currently Reported
|  | (In millions)
Total assets |  | $ | 225,580 |  |  | $ | (733) |  |  | $ | 224,847 |  |  | $ | 259,840 |  |  | $ | 2,417 |  |  | $ | 262,257 |
Future policy benefits |  | $ | 41,569 |  |  | $ | (10,072) |  |  | $ | 31,497 |  |  | $ | 43,807 |  |  | $ | (3,817) |  |  | $ | 39,990 |
Policyholder account balances |  | $ | 74,836 |  |  | $ | (1,309) |  |  | $ | 73,527 |  |  | $ | 66,851 |  |  | $ | (1,602) |  |  | $ | 65,249 |
Market risk benefit liabilities |  | $ | — |  |  | $ | 10,389 |  |  | $ | 10,389 |  |  | $ | — |  |  | $ | 16,034 |  |  | $ | 16,034 |
Total liabilities |  | $ | 219,542 |  |  | $ | (293) |  |  | $ | 219,249 |  |  | $ | 243,633 |  |  | $ | 10,174 |  |  | $ | 253,807 |
Retained earnings (deficit) |  | $ | (637) |  |  | $ | 242 |  |  | $ | (395) |  |  | $ | (642) |  |  | $ | (3,632) |  |  | $ | (4,274) |
Accumulated other comprehensive income (loss) |  | $ | (5,424) |  |  | $ | (682) |  |  | $ | (6,106) |  |  | $ | 4,172 |  |  | $ | (4,125) |  |  | $ | 47 |
Total equity |  | $ | 6,038 |  |  | $ | (440) |  |  | $ | 5,598 |  |  | $ | 16,207 |  |  | $ | (7,757) |  |  | $ | 8,450 |
Total liabilities and equity |  | $ | 225,580 |  |  | $ | (733) |  |  | $ | 224,847 |  |  | $ | 259,840 |  |  | $ | 2,417 |  |  | $ | 262,257 |
|  | Year Ended December 31, 2022 |  | Year Ended December 31, 2021
|  | As Previously Reported |  | Effect of Change |  | As Currently Reported |  | As Previously Reported |  | Effect of Change |  | As Currently Reported
|  | (In millions)
Universal life and investment-type product policy fees |  | $ | 3,141 |  |  | $ | (706) |  |  | $ | 2,435 |  |  | $ | 3,636 |  |  | $ | (656) |  |  | $ | 2,980 |
Net derivative gains (losses) |  | $ | 304 |  |  | $ | (896) |  |  | $ | (592) |  |  | $ | (2,469) |  |  | $ | (1,514) |  |  | $ | (3,983) |
Total revenues |  | $ | 8,473 |  |  | $ | (1,600) |  |  | $ | 6,873 |  |  | $ | 7,142 |  |  | $ | (2,166) |  |  | $ | 4,976 |
Policyholder benefits and claims |  | $ | 4,165 |  |  | $ | (1,972) |  |  | $ | 2,193 |  |  | $ | 3,443 |  |  | $ | (697) |  |  | $ | 2,746 |
Change in market risk benefits |  | $ | — |  |  | $ | (4,104) |  |  | $ | (4,104) |  |  | $ | — |  |  | $ | (4,134) |  |  | $ | (4,134) |
Total expenses |  | $ | 8,645 |  |  | $ | (6,504) |  |  | $ | 2,141 |  |  | $ | 7,350 |  |  | $ | (4,383) |  |  | $ | 2,967 |
Net income (loss) |  | $ | 10 |  |  | $ | 3,874 |  |  | $ | 3,884 |  |  | $ | (103) |  |  | $ | 1,751 |  |  | $ | 1,648 |

X
- References No definition available. + Details
Name: | us-gaap_AccountingStandardsUpdate201812Abstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (g)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480016/944-40-65-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (g)(2)(ii) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480016/944-40-65-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (g)(2)(iii) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480016/944-40-65-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (g)(2)(iv) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480016/944-40-65-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480016/944-40-65-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 5 -Subparagraph (SAB Topic 11.M.Q2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480530/250-10-S99-5 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(4) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-1 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 20 -Name Accounting Standards Codification -Section 65 -Paragraph 6 -Subparagraph (i)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480528/815-20-65-6 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 5 -Subparagraph (f)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479832/842-10-65-5 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 5 -Subparagraph (f)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479832/842-10-65-5 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (c)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480175/815-40-65-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (c)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480175/815-40-65-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480175/815-40-65-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 848 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483550/848-10-65-2 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 105 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 6 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479343/105-10-65-6 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-1 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 8 -Subparagraph (e)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482615/740-10-65-8 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 8 -Subparagraph (e)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482615/740-10-65-8 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 8 -Subparagraph (e)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482615/740-10-65-8 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 6 -Subparagraph (e)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482833/825-10-65-6 Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 6 -Subparagraph (e)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482833/825-10-65-6 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 6 -Subparagraph (e)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482833/825-10-65-6 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 4 -Subparagraph (e)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479654/326-10-65-4 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 10 -Name Accounting Standards Codification -Section 65 -Paragraph 4 -Subparagraph (e)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479654/326-10-65-4 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 926 -SubTopic 20 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (f)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483194/926-20-65-2 Reference 26: http://www.xbrl.org/2003/role/disclosureRef -Topic 926 -SubTopic 20 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (f)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483194/926-20-65-2 Reference 27: http://www.xbrl.org/2003/role/disclosureRef -Topic 926 -SubTopic 20 -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (f)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483194/926-20-65-2 Reference 28: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480530/250-10-S99-6 Reference 29: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-1 Reference 30: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-1 Reference 31: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 250 -Publisher FASB -URI https://asc.fasb.org//250/tableOfContent Reference 32: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 65 -Paragraph 1 -Subparagraph (e)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480175/815-40-65-1 Reference 33: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (d)(1) -SubTopic 20 -Topic 310 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481925/310-20-65-2 Reference 34: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 65 -Paragraph 2 -Subparagraph (d)(2) -SubTopic 20 -Topic 310 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481925/310-20-65-2 + Details
Name: | us-gaap_NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration