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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

Our income tax expense is as follows:

			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)
Current tax expense (recovery)			$	93					$	(9)					$	21								$	57
Deferred tax expense (recovery)			(263)						56						53									(24)
Total income tax expense (recovery)			$	(170)					$	47					$	74								$	33

Income tax expense (recovery) differed from the amount computed at the statutory federal income tax rate of 21% is as follows:

			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)
Net income (loss) before income taxes			$	510					$	444					$	400								$	166
Income tax at statutory rate			$	107					$	93					$	84								$	35
Tax effect of:
Change in tax rates and imposition of new tax legislation			(292)						(35)						—									—
Tax credits			(3)						(12)						(11)									(1)
Valuation allowance			18						—						—									—
Other			—						1						1									(1)
Total income tax expense (recovery)			$	(170)					$	47					$	74								$	33

Schedule of Reconciliation of Effective Income Tax Rate

The following table presents a reconciliation of the statutory income tax rate to the effective income tax rate:

			Successor																					Predecessor
			Year Ended December 31,												Period From May 25 to December 31,									Period From January 1 to May 24,
			2024						2023						2022									2022
Statutory income tax rate			21.0		%				21.0		%				21.0		%							21.0		%
Increase (reduction) in rate resulting from:
Change in tax rates and imposition of new tax legislation			(57.4)		%				(8.0)		%				—		%							—		%
Tax credits			(0.6)		%				(2.7)		%				(2.8)		%							(0.5)		%
Valuation allowance			3.5		%				—		%				—		%							—		%
Other			0.2		%				0.4		%				0.4		%							(0.7)		%
Effective income tax rate			(33.3)		%				10.7		%				18.6		%							19.8		%

Schedule of Deferred Tax Assets

The tax effects of temporary differences that gave rise to the deferred tax assets and liabilities are shown below:

			December 31,
			2024						2023
			(Dollars in millions)
Deferred tax assets
Investments			$	1,445					$	291
Value of business acquired and other intangible assets			—						109
Policyholders' account balances			60						58
Bermuda DTA			377						35
Reinsurance recoverables			3,920						—
Loss carryforwards			624						28
Tax credit carryforwards			88						3
Other			45						—
Gross deferred tax assets			6,559						524
Valuation allowance			(21)						(5)
Deferred tax assets after valuation allowance			6,538						519
Deferred tax liabilities
Deferred acquisition costs			198						4
Pension assets			64						49
Value of business acquired and other intangible assets			2,060						—
Future policy benefits			4,153						138
Other			—						37
Gross deferred tax liabilities			6,475						228
Total net deferred tax asset			$	63					$	291

Below is a reconciliation of deferred tax assets (liabilities) as reported on the financial statements:

			December 31,
			2024						2023
			(Dollars in millions)
Deferred tax assets			$	529					$	291
Deferred tax liabilities			466						—
Total net deferred tax asset			$	63					$	291

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-2

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
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-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

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