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Derivative Instruments (Tables) | 12 Months Ended
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Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Financial Statement Location and Amounts | The notional and fair values of derivative instruments, presented in the Consolidated Statements of Financial Position, are shown below:
|  |  |  | December 31,
| Primary Underlying Risk | Location in the Consolidated Statements of Financial Position |  | 2024 |  | 2023
| Notional Amount |  | Carrying Value / Fair Value |  | Notional Amount |  | Carrying Value / Fair Value
|  | Assets |  | Liabilities |  |  | Assets |  | Liabilities
|  |  |  | (Dollars in millions)
Derivatives Designated as Hedging Instruments:
Foreign exchange forwards | Foreign currency | Other invested assets, Other liabilities |  | $ | 897 |  |  | $ | 20 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivatives Not Designated as Hedging Instruments:
Equity-indexed options | Equity | Other invested assets, Other liabilities |  | 46,374 |  |  | 1,303 |  |  | 5 |  |  | 4,084 |  |  | 227 |  |  | — |
Foreign exchange forwards | Foreign currency | Other invested assets, Other liabilities |  | 1,066 |  |  | 23 |  |  | — |  |  | — |  |  | — |  |  | — |
Embedded Derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indexed annuity and variable annuity product | Interest rate | Policyholders’ account balances |  | — |  |  | — |  |  | 1,123 |  |  | — |  |  | — |  |  | 873 |
Funds withheld and Modco arrangements | Interest rate | Funds withheld for reinsurance liabilities |  | — |  |  | — |  |  | 37 |  |  | — |  |  | — |  |  | — |
|  |  |  | $ | 48,337 |  |  | $ | 1,346 |  |  | $ | 1,165 |  |  | $ | 4,084 |  |  | $ | 227 |  |  | $ | 873 |
The following represents the amount of gains (losses) related to the derivatives and hedged items that qualify for fair value hedge accounting:
| Successor |  |  | Predecessor
| Year Ended December 31, |  | Period From May 25 to December 31, |  |  | Period From January 1 to May 24,
| 2024 |  | 2023 |  | 2022 |  |  | 2022
| (Dollars in millions)
Hedged items | $ | (22) |  |  | $ | — |  |  | $ | — |  |  |  | $ | — |
Derivatives designated as hedging instruments | 21 |  |  | — |  |  | — |  |  |  | — |
Investment related gains (losses) | $ | (1) |  |  | $ | — |  |  | $ | — |  |  |  | $ | — |
Schedule of Derivatives Instruments | The following represents the financial statement location and amount of gains (losses) related to the derivatives not designated as hedging instruments:
|  |  | Derivative Gains (Losses) Recognized in Income
|  |  | Successor |  |  | Predecessor
| Location in the Consolidated Statements of Operations |  | Year Ended December 31, |  | Period From May 25 to December 31, |  |  | Period From January 1 to May 24,
|  | 2024 |  | 2023 |  | 2022 |  |  | 2022
|  |  | (Dollars in millions)
Equity-indexed options | Change in fair value of insurance-related derivatives and embedded derivatives |  | $ | 489 |  |  | $ | 112 |  |  | $ | (38) |  |  |  | $ | (128) |
Foreign exchange forwards | Investment related gains (losses) |  | 27 |  |  | — |  |  | — |  |  |  | — |
Embedded derivatives: |  |  |  |  |  |  |  |  |  |
Indexed annuity and variable annuity product | Change in fair value of insurance-related derivatives and embedded derivatives |  | (233) |  |  | (148) |  |  | 61 |  |  |  | 97 |
Funds withheld and Modco arrangements | Change in fair value of insurance-related derivatives and embedded derivatives |  | (162) |  |  | — |  |  | — |  |  |  | — |
|  |  | $ | 121 |  |  | $ | (36) |  |  | $ | 23 |  |  |  | $ | (31) |
Schedule of Derivative Instruments | The fair value of our derivatives by counterparty and each counterparty's current credit rating are as follows:
|  |  |  |  |  |  |  | December 31,
|  |  |  |  |  |  |  | 2024 |  |  |  | 2023
Counterparty |  | Credit Rating (S&P) |  | Credit Rating (Moody's) |  |  |  | Fair Value |  |  |  | Fair Value
|  |  |  |  |  |  |  | (Dollars in millions)
Bank of America |  | A+ |  | Aa1 |  |  |  | $ | 99 |  |  |  |  | $ | 24 |
Barclays |  | A+ |  | A1 |  |  |  | 79 |  |  |  |  | 24 |
BNP Paribas |  | A+ |  | A1 |  |  |  | 3 |  |  |  |  | — |
Canadian Imperial Bank of Commerce |  | A+ |  | Aa2 |  |  |  | 42 |  |  |  |  | — |
Citibank, N.A. |  | A+ |  | Aa3 |  |  |  | 35 |  |  |  |  | — |
Credit Suisse |  | A- |  | A3 |  |  |  | — |  |  |  |  | 16 |
Goldman Sachs |  | A+ |  | A1 |  |  |  | 20 |  |  |  |  | — |
ING |  | A- |  | Baa1 |  |  |  | 6 |  |  |  |  | 10 |
J.P. Morgan |  | AA- |  | Aa2 |  |  |  | 128 |  |  |  |  | 12 |
Mizuho |  | A |  | A1 |  |  |  | 266 |  |  |  |  | — |
Morgan Stanley |  | A+ |  | Aa3 |  |  |  | 84 |  |  |  |  | 43 |
NATIXIS |  | A+ |  | A1 |  |  |  | 2 |  |  |  |  | 4 |
Royal Bank of Canada |  | AA- |  | A1 |  |  |  | 115 |  |  |  |  | — |
Societe Generale |  | A |  | A1 |  |  |  | 86 |  |  |  |  | — |
Truist |  | A |  | A3 |  |  |  | 104 |  |  |  |  | 59 |
UBS AG |  | A- |  | A3 |  |  |  | 34 |  |  |  |  | — |
Wells Fargo |  | A+ |  | Aa2 |  |  |  | 238 |  |  |  |  | 35 |
|  |  |  |  |  |  |  | $ | 1,341 |  |  |  |  | $ | 227 |
Schedule of Derivative Assets and Effects of Rights of Offset | Information regarding the Company’s exposure to credit loss on the derivatives it holds, including the effect of rights of offset, is presented below:
| Gross Amount of Derivative Instruments (1) |  | Gross Amount Offset in the Consolidated Statements of Financial Position (2) |  | Net Amount Presented in the Consolidated Statements of Financial Position |  | Collateral (Received) Pledged in Cash (3) |  | Collateral (Received) Pledged in Invested Assets (3) |  | Exposure of Net Collateral
| (Dollars in millions)
As of December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | 1,303 |  |  | $ | (5) |  |  | $ | 1,298 |  |  | $ | (1,298) |  |  | $ | — |  |  | $ | — |
Foreign exchange forwards | 43 |  |  | — |  |  | 43 |  |  | — |  |  | — |  |  | 43 |
Total derivative assets | $ | 1,346 |  |  | $ | (5) |  |  | $ | 1,341 |  |  | $ | (1,298) |  |  | $ | — |  |  | $ | 43 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | (5) |  |  | $ | 5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign exchange forwards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total derivative liabilities | $ | (5) |  |  | $ | 5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | 227 |  |  | $ | — |  |  | $ | 227 |  |  | $ | (205) |  |  | $ | (21) |  |  | $ | 1 |
Foreign exchange forwards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total derivative assets | $ | 227 |  |  | $ | — |  |  | $ | 227 |  |  | $ | (205) |  |  | $ | (21) |  |  | $ | 1 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign exchange forwards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total derivative liabilities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
(1)Represents derivative assets and liabilities on a gross basis, which are not offset under enforceable master netting agreements that meet all offsetting criteria. (2)Represents netting of derivative exposures covered by qualifying master netting agreements. (3)Excludes a portion of collateral held in cash and invested assets that are excess collateral. As of December 31, 2024 and 2023, the Company held excess collateral of $76 million and $4 million, respectively.
Schedule of Derivative Liabilities and Effects of Rights of Offset | Information regarding the Company’s exposure to credit loss on the derivatives it holds, including the effect of rights of offset, is presented below:
| Gross Amount of Derivative Instruments (1) |  | Gross Amount Offset in the Consolidated Statements of Financial Position (2) |  | Net Amount Presented in the Consolidated Statements of Financial Position |  | Collateral (Received) Pledged in Cash (3) |  | Collateral (Received) Pledged in Invested Assets (3) |  | Exposure of Net Collateral
| (Dollars in millions)
As of December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | 1,303 |  |  | $ | (5) |  |  | $ | 1,298 |  |  | $ | (1,298) |  |  | $ | — |  |  | $ | — |
Foreign exchange forwards | 43 |  |  | — |  |  | 43 |  |  | — |  |  | — |  |  | 43 |
Total derivative assets | $ | 1,346 |  |  | $ | (5) |  |  | $ | 1,341 |  |  | $ | (1,298) |  |  | $ | — |  |  | $ | 43 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | (5) |  |  | $ | 5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign exchange forwards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total derivative liabilities | $ | (5) |  |  | $ | 5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | 227 |  |  | $ | — |  |  | $ | 227 |  |  | $ | (205) |  |  | $ | (21) |  |  | $ | 1 |
Foreign exchange forwards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total derivative assets | $ | 227 |  |  | $ | — |  |  | $ | 227 |  |  | $ | (205) |  |  | $ | (21) |  |  | $ | 1 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Equity-indexed options | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign exchange forwards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total derivative liabilities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
(1)Represents derivative assets and liabilities on a gross basis, which are not offset under enforceable master netting agreements that meet all offsetting criteria. (2)Represents netting of derivative exposures covered by qualifying master netting agreements. (3)Excludes a portion of collateral held in cash and invested assets that are excess collateral. As of December 31, 2024 and 2023, the Company held excess collateral of $76 million and $4 million, respectively.

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