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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 asset1,431 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 InsuranceIncome AnnuitiesStructured 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 assumptions14 (171)200 
Initial recognition of deferred profit liabilities— 176 217 
Change in discount rate assumptions536 754 2,770 
Adjusted balance at January 1, 20213,404 4,867 11,518 
Less: Reinsurance recoverable85 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 risk6,010 
Adjustment for cumulative effect of changes in nonperformance risk since issuance3,454 
Adjusted balance at January 1, 202118,388 
Less: Reinsurance recoverable169 
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 AnnuitiesFixed Rate AnnuitiesIndex-Linked AnnuitiesTerm and Whole Life InsuranceUniversal Life Insurance
(In millions)
DAC:
Balance at December 31, 2020$2,440 $64 $886 $527 $492 
Removal of related amounts in AOCI472 — — — (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 AOCI65 — — — 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, 2022December 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, 2022Year 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