Missouri | 43-1627032 | |||||||
(State or other jurisdiction | (IRS employer | |||||||
of incorporation or organization) | identification number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.01 | RGA | New York Stock Exchange | ||||||||||||
6.20% Fixed-To-Floating Rate Subordinated Debentures due 2042 | RZA | New York Stock Exchange | ||||||||||||
5.75% Fixed-To-Floating Rate Subordinated Debentures due 2056 | RZB | New York Stock Exchange |
Item | Page | |||||||||||||
PART I – FINANCIAL INFORMATION | ||||||||||||||
1 | ||||||||||||||
2 | ||||||||||||||
3 | ||||||||||||||
4 | ||||||||||||||
PART II – OTHER INFORMATION | ||||||||||||||
1 | ||||||||||||||
1A | ||||||||||||||
2 | ||||||||||||||
6 | ||||||||||||||
Item | Page | |||
PART I – FINANCIAL INFORMATION | ||||
1 | ||||
2 | ||||
3 | ||||
4 | ||||
PART II – OTHER INFORMATION | ||||
1 | ||||
1A | ||||
2 | ||||
6 | ||||
June 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||
(Dollars in millions, except share data) | (Dollars in millions, except share data) | |||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost $46,903 and $46,753; allowance for credit losses of $33 at June 30, 2020) | $ | 52,346 | $ | 51,121 | ||||||||||||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $52,797 and $49,548; allowance for credit losses of $16 and $20) | Fixed maturity securities available-for-sale, at fair value (amortized cost of $52,797 and $49,548; allowance for credit losses of $16 and $20) | $ | 58,287 | $ | 56,735 | |||||||||||||||||
Equity securities, at fair value | 130 | 320 | Equity securities, at fair value | 147 | 132 | |||||||||||||||||
Mortgage loans on real estate (net of allowances of $56 and $12) | 5,974 | 5,706 | ||||||||||||||||||||
Mortgage loans on real estate (net of allowance for credit losses of $45 and $64) | Mortgage loans on real estate (net of allowance for credit losses of $45 and $64) | 6,481 | 5,787 | |||||||||||||||||||
Policy loans | 1,310 | 1,319 | Policy loans | 1,254 | 1,258 | |||||||||||||||||
Funds withheld at interest | 5,250 | 5,662 | Funds withheld at interest | 7,049 | 5,432 | |||||||||||||||||
Short-term investments | 84 | 64 | Short-term investments | 184 | 227 | |||||||||||||||||
Other invested assets | 2,547 | 2,363 | Other invested assets | 2,924 | 2,829 | |||||||||||||||||
Total investments | 67,641 | 66,555 | Total investments | 76,326 | 72,400 | |||||||||||||||||
Cash and cash equivalents | 4,313 | 1,449 | Cash and cash equivalents | 3,254 | 3,408 | |||||||||||||||||
Accrued investment income | 494 | 493 | Accrued investment income | 525 | 511 | |||||||||||||||||
Premiums receivable and other reinsurance balances | 2,852 | 2,940 | Premiums receivable and other reinsurance balances | 3,102 | 2,842 | |||||||||||||||||
Reinsurance ceded receivables | 945 | 904 | Reinsurance ceded receivables | 1,093 | 983 | |||||||||||||||||
Deferred policy acquisition costs | 3,565 | 3,512 | Deferred policy acquisition costs | 3,622 | 3,616 | |||||||||||||||||
Other assets | 919 | 878 | Other assets | 1,022 | 896 | |||||||||||||||||
Total assets | $ | 80,729 | $ | 76,731 | Total assets | $ | 88,944 | $ | 84,656 | |||||||||||||
Liabilities and Stockholders’ Equity | Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Future policy benefits | $ | 29,897 | $ | 28,672 | Future policy benefits | $ | 33,761 | $ | 31,453 | |||||||||||||
Interest-sensitive contract liabilities | 23,118 | 22,711 | Interest-sensitive contract liabilities | 26,161 | 23,276 | |||||||||||||||||
Other policy claims and benefits | 6,232 | 5,711 | Other policy claims and benefits | 6,795 | 6,413 | |||||||||||||||||
Other reinsurance balances | 510 | 557 | Other reinsurance balances | 531 | 598 | |||||||||||||||||
Deferred income taxes | 2,856 | 2,712 | Deferred income taxes | 2,699 | 3,263 | |||||||||||||||||
Other liabilities | 1,557 | 1,188 | Other liabilities | 2,057 | 1,340 | |||||||||||||||||
Long-term debt | 3,573 | 2,981 | Long-term debt | 3,173 | 3,573 | |||||||||||||||||
Collateral finance and securitization notes | 433 | 598 | Collateral finance and securitization notes | 323 | 388 | |||||||||||||||||
Total liabilities | 68,176 | 65,130 | Total liabilities | 75,500 | 70,304 | |||||||||||||||||
Commitments and contingent liabilities (See Note 8) | Commitments and contingent liabilities (See Note 8) | 0 | 0 | |||||||||||||||||||
Stockholders’ Equity: | Stockholders’ Equity: | |||||||||||||||||||||
Preferred stock – par value $.01 per share, 10,000,000 shares authorized, no shares issued or outstanding | — | — | ||||||||||||||||||||
Common stock – par value $.01 per share, 140,000,000 shares authorized, 85,310,598 shares issued at June 30, 2020 and 79,137,758 shares issued at December 31, 2019 | 1 | 1 | ||||||||||||||||||||
Preferred stock – par value $0.01 per share, 10,000,000 shares authorized, no shares issued or outstanding | Preferred stock – par value $0.01 per share, 10,000,000 shares authorized, no shares issued or outstanding | 0 | 0 | |||||||||||||||||||
Common stock – par value $0.01 per share, 140,000,000 shares authorized, 85,310,598 shares issued at June 30, 2021 and December 31, 2020 | Common stock – par value $0.01 per share, 140,000,000 shares authorized, 85,310,598 shares issued at June 30, 2021 and December 31, 2020 | 1 | 1 | |||||||||||||||||||
Additional paid-in capital | 2,413 | 1,937 | Additional paid-in capital | 2,430 | 2,406 | |||||||||||||||||
Retained earnings | 7,901 | 7,952 | Retained earnings | 8,531 | 8,148 | |||||||||||||||||
Treasury stock, at cost – 17,374,739 and 16,481,656 shares | (1,563 | ) | (1,426 | ) | ||||||||||||||||||
Treasury stock, at cost – 17,313,661 and 17,353,697 shares | Treasury stock, at cost – 17,313,661 and 17,353,697 shares | (1,559) | (1,562) | |||||||||||||||||||
Accumulated other comprehensive income | 3,801 | 3,137 | Accumulated other comprehensive income | 4,041 | 5,359 | |||||||||||||||||
Total stockholders’ equity | 12,553 | 11,601 | Total stockholders’ equity | 13,444 | 14,352 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 80,729 | $ | 76,731 | Total liabilities and stockholders’ equity | $ | 88,944 | $ | 84,656 |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Revenues: | (Dollars in millions, except per share data) | Revenues: | (Dollars in millions, except per share data) | |||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 2,790 | $ | 2,764 | $ | 5,609 | $ | 5,502 | Net premiums | $ | 3,098 | $ | 2,790 | $ | 6,012 | $ | 5,609 | |||||||||||||||||||||||||
Investment income, net of related expenses | 645 | 584 | 1,239 | 1,164 | Investment income, net of related expenses | 759 | 645 | 1,571 | 1,239 | |||||||||||||||||||||||||||||||||
Investment related gains (losses), net: | ||||||||||||||||||||||||||||||||||||||||||
Impairments and change in allowance for credit losses on fixed maturity securities | — | — | (34 | ) | (9 | ) | ||||||||||||||||||||||||||||||||||||
Other investment related gains (losses), net | 81 | 12 | (170 | ) | 29 | |||||||||||||||||||||||||||||||||||||
Total investment related gains (losses), net | 81 | 12 | (204 | ) | 20 | |||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | Investment related gains (losses), net | 112 | 81 | 414 | (204) | |||||||||||||||||||||||||||||||||||||
Other revenues | 90 | 107 | 166 | 201 | Other revenues | 168 | 90 | 259 | 166 | |||||||||||||||||||||||||||||||||
Total revenues | 3,606 | 3,467 | 6,810 | 6,887 | Total revenues | 4,137 | 3,606 | 8,256 | 6,810 | |||||||||||||||||||||||||||||||||
Benefits and Expenses: | Benefits and Expenses: | |||||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 2,700 | 2,516 | 5,364 | 5,024 | Claims and other policy benefits | 2,813 | 2,700 | 6,005 | 5,364 | |||||||||||||||||||||||||||||||||
Interest credited | 187 | 158 | 333 | 291 | Interest credited | 218 | 187 | 364 | 333 | |||||||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 290 | 260 | 538 | 572 | Policy acquisition costs and other insurance expenses | 339 | 290 | 672 | 538 | |||||||||||||||||||||||||||||||||
Other operating expenses | 188 | 222 | 383 | 424 | Other operating expenses | 240 | 188 | 454 | 383 | |||||||||||||||||||||||||||||||||
Interest expense | 42 | 43 | 83 | 83 | Interest expense | 43 | 42 | 88 | 83 | |||||||||||||||||||||||||||||||||
Collateral finance and securitization expense | 4 | 8 | 10 | 16 | Collateral finance and securitization expense | 2 | 4 | 5 | 10 | |||||||||||||||||||||||||||||||||
Total benefits and expenses | 3,411 | 3,207 | 6,711 | 6,410 | Total benefits and expenses | 3,655 | 3,411 | 7,588 | 6,711 | |||||||||||||||||||||||||||||||||
Income before income taxes | 195 | 260 | 99 | 477 | Income before income taxes | 482 | 195 | 668 | 99 | |||||||||||||||||||||||||||||||||
Provision for income taxes | 37 | 58 | 29 | 105 | Provision for income taxes | 138 | 37 | 185 | 29 | |||||||||||||||||||||||||||||||||
Net income | $ | 158 | $ | 202 | $ | 70 | $ | 372 | Net income | $ | 344 | $ | 158 | $ | 483 | $ | 70 | |||||||||||||||||||||||||
Earnings per share: | Earnings per share: | |||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 2.49 | $ | 3.23 | $ | 1.12 | $ | 5.93 | Basic earnings per share | $ | 5.06 | $ | 2.49 | $ | 7.11 | $ | 1.12 | |||||||||||||||||||||||||
Diluted earnings per share | $ | 2.48 | $ | 3.18 | $ | 1.11 | $ | 5.83 | Diluted earnings per share | $ | 5.02 | $ | 2.48 | $ | 7.06 | $ | 1.11 |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | (Dollars in millions) | Comprehensive income (loss) | (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||
Net income | $ | 158 | $ | 202 | $ | 70 | $ | 372 | Net income | $ | 344 | $ | 158 | $ | 483 | $ | 70 | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 13 | 25 | (118 | ) | 46 | Foreign currency translation adjustments | 19 | 13 | 49 | (118) | ||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | 2,663 | 851 | 790 | 1,960 | Net unrealized investment gains (losses) | 1,020 | 2,663 | (1,367) | 790 | |||||||||||||||||||||||||||||||||
Defined benefit pension and postretirement plan adjustments | (5 | ) | — | (8 | ) | — | Defined benefit pension and postretirement plan adjustments | 0 | (5) | 0 | (8) | |||||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | 2,671 | 876 | 664 | 2,006 | Total other comprehensive income (loss), net of tax | 1,039 | 2,671 | (1,318) | 664 | |||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | $ | 2,829 | $ | 1,078 | $ | 734 | $ | 2,378 | Total comprehensive income (loss) | $ | 1,383 | $ | 2,829 | $ | (835) | $ | 734 |
Three months ended June 30, 2021 and 2020 | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | 1 | $ | 2,411 | $ | 8,235 | $ | (1,559) | $ | 3,002 | $ | 12,090 | |||||||||||||||||||||||||||||
Net income | 344 | 344 | |||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | 1,039 | 1,039 | |||||||||||||||||||||||||||||||||||||||
Dividends to stockholders, $0.70 per share | (47) | (47) | |||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock | 19 | (1) | 1 | 19 | |||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 1 | $ | 2,430 | $ | 8,531 | $ | (1,559) | $ | 4,041 | $ | 13,444 |
Three months ended June 30, 2020 and 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | $ | 1 | $ | 1,942 | $ | 7,802 | $ | (1,574 | ) | $ | 1,130 | 9,301 | Balance, March 31, 2020 | $ | 1 | $ | 1,942 | $ | 7,802 | $ | (1,574) | $ | 1,130 | $ | 9,301 | |||||||||||||||||||||||||||||||||||||||
Net income | 158 | 158 | Net income | 158 | 158 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | 2,671 | 2,671 | Total other comprehensive income (loss) | 2,671 | 2,671 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to stockholders, $0.70 per share | (43 | ) | (43 | ) | Dividends to stockholders, $0.70 per share | (43) | (43) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | 481 | 481 | Issuance of common stock, net of expenses | 481 | 481 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (6 | ) | (6 | ) | Purchase of treasury stock | (6) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock | (10 | ) | (16 | ) | 17 | (9 | ) | Reissuance of treasury stock | (10) | (16) | 17 | (9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | 1 | $ | 2,413 | $ | 7,901 | $ | (1,563 | ) | $ | 3,801 | $ | 12,553 | Balance, June 30, 2020 | $ | 1 | $ | 2,413 | $ | 7,901 | $ | (1,563) | $ | 3,801 | $ | 12,553 |
Six months ended June 30, 2021 and 2020 | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | 1 | $ | 2,406 | $ | 8,148 | $ | (1,562) | $ | 5,359 | $ | 14,352 | |||||||||||||||||||||||||||||
Adoption of new accounting standards | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Net income | 483 | 483 | |||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | (1,318) | (1,318) | |||||||||||||||||||||||||||||||||||||||
Dividends to stockholders, $1.40 per share | (95) | (95) | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (2) | (2) | |||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock | 24 | (5) | 5 | 24 | |||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 1 | $ | 2,430 | $ | 8,531 | $ | (1,559) | $ | 4,041 | $ | 13,444 |
Balance, March 31, 2019 | $ | 1 | $ | 1,906 | $ | 7,412 | $ | (1,415 | ) | $ | 1,766 | 9,670 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | Balance, December 31, 2019 | $ | 1 | $ | 1,937 | $ | 7,952 | $ | (1,426) | $ | 3,137 | $ | 11,601 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of new accounting standards | Adoption of new accounting standards | (12) | (12) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 202 | 202 | Net income | 70 | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | 876 | 876 | Total other comprehensive income (loss) | 664 | 664 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to stockholders, $0.60 per share | (38 | ) | (38 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to stockholders, $1.40 per share | Dividends to stockholders, $1.40 per share | (87) | (87) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of expenses | Issuance of common stock, net of expenses | 481 | 481 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (19 | ) | (19 | ) | Purchase of treasury stock | (162) | (162) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock | 14 | (26 | ) | 30 | 18 | Reissuance of treasury stock | (5) | (22) | 25 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | 1 | $ | 1,920 | $ | 7,550 | $ | (1,404 | ) | $ | 2,642 | $ | 10,709 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | Balance, June 30, 2020 | $ | 1 | $ | 2,413 | $ | 7,901 | $ | (1,563) | $ | 3,801 | $ | 12,553 |
Six months ended June 30, 2020 and 2019 | |||||||||||||||||||||||
Common Stock | Additional Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||
Balance, December 31, 2019 | $ | 1 | $ | 1,937 | $ | 7,952 | $ | (1,426 | ) | $ | 3,137 | 11,601 | |||||||||||
Adoption of new accounting standards | (12 | ) | (12 | ) | |||||||||||||||||||
Net income | 70 | 70 | |||||||||||||||||||||
Total other comprehensive income (loss) | 664 | 664 | |||||||||||||||||||||
Dividends to stockholders, $1.40 per share | (87 | ) | (87 | ) | |||||||||||||||||||
Issuance of common stock, net of expenses | 481 | 481 | |||||||||||||||||||||
Purchase of treasury stock | (162 | ) | (162 | ) | |||||||||||||||||||
Reissuance of treasury stock | (5 | ) | (22 | ) | 25 | (2 | ) | ||||||||||||||||
Balance, June 30, 2020 | $ | 1 | $ | 2,413 | $ | 7,901 | $ | (1,563 | ) | $ | 3,801 | $ | 12,553 |
Balance, December 31, 2018 | $ | 1 | $ | 1,899 | $ | 7,285 | $ | (1,371 | ) | $ | 636 | $ | 8,450 | ||||||||||
Adoption of new accounting standards | — | ||||||||||||||||||||||
Net income | 372 | 372 | |||||||||||||||||||||
Total other comprehensive income (loss) | 2,006 | 2,006 | |||||||||||||||||||||
Dividends to stockholders, $1.20 per share | (75 | ) | (75 | ) | |||||||||||||||||||
Purchase of treasury stock | (68 | ) | (68 | ) | |||||||||||||||||||
Reissuance of treasury stock | 21 | (32 | ) | 35 | 24 | ||||||||||||||||||
Balance, June 30, 2019 | $ | 1 | $ | 1,920 | $ | 7,550 | $ | (1,404 | ) | $ | 2,642 | $ | 10,709 |
Six months ended June 30, | ||||||||||||||||||||||
Six months ended June 30, | 2021 | 2020 | ||||||||||||||||||||
2020 | 2019 | (Dollars in millions) | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||||
Net income | $ | 70 | $ | 372 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||
Change in operating assets and liabilities: | ||||||||||||||||||||||
Accrued investment income | (9 | ) | (12 | ) | ||||||||||||||||||
Premiums receivable and other reinsurance balances | 24 | 85 | ||||||||||||||||||||
Deferred policy acquisition costs | (107 | ) | (115 | ) | ||||||||||||||||||
Reinsurance ceded receivable balances | (32 | ) | (109 | ) | ||||||||||||||||||
Future policy benefits, other policy claims and benefits, and other reinsurance balances | 2,360 | 736 | ||||||||||||||||||||
Deferred income taxes | (88 | ) | 92 | |||||||||||||||||||
Other assets and other liabilities, net | 38 | (122 | ) | |||||||||||||||||||
Amortization of net investment premiums, discounts and other | (24 | ) | (34 | ) | ||||||||||||||||||
Depreciation and amortization expense | 23 | 22 | ||||||||||||||||||||
Investment related (gains) losses, net | 204 | (20 | ) | |||||||||||||||||||
Other, net | 120 | 75 | ||||||||||||||||||||
Net cash provided by operating activities | 2,579 | 970 | ||||||||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||
Net cash provided by (used in) operating activities | Net cash provided by (used in) operating activities | $ | 2,330 | $ | 2,579 | |||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||||||
Sales of fixed maturity securities available-for-sale | 3,835 | 5,097 | Sales of fixed maturity securities available-for-sale | 7,235 | 3,835 | |||||||||||||||||
Maturities of fixed maturity securities available-for-sale | 406 | 439 | Maturities of fixed maturity securities available-for-sale | 545 | 406 | |||||||||||||||||
Sales of equity securities | 180 | — | Sales of equity securities | 3 | 180 | |||||||||||||||||
Principal payments and sales of mortgage loans on real estate | 283 | 166 | Principal payments and sales of mortgage loans on real estate | 417 | 283 | |||||||||||||||||
Principal payments on policy loans | 15 | 44 | Principal payments on policy loans | 12 | 15 | |||||||||||||||||
Purchases of fixed maturity securities available-for-sale | (4,875 | ) | (5,689 | ) | Purchases of fixed maturity securities available-for-sale | (9,885) | (4,875) | |||||||||||||||
Purchases of equity securities | (21 | ) | (57 | ) | Purchases of equity securities | (1) | (21) | |||||||||||||||
Cash invested in mortgage loans on real estate | (604 | ) | (598 | ) | Cash invested in mortgage loans on real estate | (783) | (604) | |||||||||||||||
Cash invested in policy loans | (6 | ) | (5 | ) | Cash invested in policy loans | (8) | (6) | |||||||||||||||
Cash invested in funds withheld at interest | (49 | ) | (54 | ) | Cash invested in funds withheld at interest | (52) | (49) | |||||||||||||||
Purchase of businesses, net of cash acquired of $27 | — | 4 | ||||||||||||||||||||
Proceeds from sale of businesses, net of cash transferred of $43 | Proceeds from sale of businesses, net of cash transferred of $43 | 19 | 0 | |||||||||||||||||||
Purchases of property and equipment | (11 | ) | (18 | ) | Purchases of property and equipment | (10) | (11) | |||||||||||||||
Change in short-term investments | (19 | ) | 67 | Change in short-term investments | 223 | (19) | ||||||||||||||||
Change in other invested assets | (158 | ) | (160 | ) | Change in other invested assets | 112 | (158) | |||||||||||||||
Net cash used in investing activities | (1,024 | ) | (764 | ) | ||||||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||
Net cash provided by (used in) investing activities | Net cash provided by (used in) investing activities | (2,173) | (1,024) | |||||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||||||
Dividends to stockholders | (87 | ) | (75 | ) | Dividends to stockholders | (95) | (87) | |||||||||||||||
Proceeds from issuance of common stock, net | 481 | — | Proceeds from issuance of common stock, net | 0 | 481 | |||||||||||||||||
Repayment of collateral finance and securitization notes | (160 | ) | (53 | ) | Repayment of collateral finance and securitization notes | (65) | (160) | |||||||||||||||
Proceeds from long-term debt issuance | 598 | 599 | Proceeds from long-term debt issuance | 0 | 598 | |||||||||||||||||
Debt issuance costs | (5 | ) | (5 | ) | Debt issuance costs | 0 | (5) | |||||||||||||||
Principal payments of long-term debt | (1 | ) | (1 | ) | Principal payments of long-term debt | (401) | (1) | |||||||||||||||
Purchases of treasury stock | (162 | ) | (68 | ) | Purchases of treasury stock | (2) | (162) | |||||||||||||||
Exercise of stock options, net | 1 | 2 | Exercise of stock options, net | 0 | 1 | |||||||||||||||||
Change in cash collateral for derivative positions and other arrangements | 93 | (80 | ) | Change in cash collateral for derivative positions and other arrangements | 184 | 93 | ||||||||||||||||
Deposits on universal life and other investment type policies and contracts | 1,004 | 256 | Deposits on universal life and other investment type policies and contracts | 599 | 1,004 | |||||||||||||||||
Withdrawals on universal life and other investment type policies and contracts | (429 | ) | (390 | ) | Withdrawals on universal life and other investment type policies and contracts | (520) | (429) | |||||||||||||||
Net cash provided by financing activities | 1,333 | 185 | ||||||||||||||||||||
Net cash provided by (used in) financing activities | Net cash provided by (used in) financing activities | (300) | 1,333 | |||||||||||||||||||
Effect of exchange rate changes on cash | (24 | ) | 7 | Effect of exchange rate changes on cash | (11) | (24) | ||||||||||||||||
Change in cash and cash equivalents | 2,864 | 398 | Change in cash and cash equivalents | (154) | 2,864 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 1,449 | 1,890 | Cash and cash equivalents, beginning of period | 3,408 | 1,449 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 4,313 | $ | 2,288 | Cash and cash equivalents, end of period | $ | 3,254 | $ | 4,313 | |||||||||||||
Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | |||||||||||||||||||||
Interest paid | $ | 80 | $ | 86 | Interest paid | $ | 85 | $ | 80 | |||||||||||||
Income taxes (received) paid, net of refunds | $ | (12 | ) | $ | 23 | |||||||||||||||||
Income taxes paid (received), net of refunds | Income taxes paid (received), net of refunds | $ | 185 | $ | (12) | |||||||||||||||||
Non-cash investing activities: | Non-cash investing activities: | |||||||||||||||||||||
Transfer of invested assets | $ | — | $ | 3,421 | Transfer of invested assets | $ | 1,557 | $ | 0 | |||||||||||||
Right-of-use assets acquired through operating leases | $ | — | $ | 1 | ||||||||||||||||||
Purchase of businesses: | ||||||||||||||||||||||
Assets acquired, excluding cash acquired | $ | — | $ | 8 | ||||||||||||||||||
Liabilities assumed | — | (12 | ) | |||||||||||||||||||
Net cash received on purchase | $ | — | $ | (4 | ) | |||||||||||||||||
Sale of businesses: | Sale of businesses: | |||||||||||||||||||||
Assets disposed, net of cash transferred | Assets disposed, net of cash transferred | $ | (512) | $ | 0 | |||||||||||||||||
Liabilities disposed | Liabilities disposed | $ | 504 | $ | 0 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||
Net income | $ | 344 | $ | 158 | $ | 483 | $ | 70 | ||||||||||||||||||
Shares: | ||||||||||||||||||||||||||
Weighted average outstanding shares | 68 | 63 | 68 | 63 | ||||||||||||||||||||||
Equivalent shares from outstanding stock options | 1 | 1 | 1 | 1 | ||||||||||||||||||||||
Denominator for diluted calculation | 69 | 64 | 69 | 64 | ||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Basic | $ | 5.06 | $ | 2.49 | $ | 7.11 | $ | 1.12 | ||||||||||||||||||
Diluted | $ | 5.02 | $ | 2.48 | $ | 7.06 | $ | 1.11 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Earnings: | ||||||||||||||||
Net income | $ | 158 | $ | 202 | $ | 70 | $ | 372 | ||||||||
Shares: | ||||||||||||||||
Weighted average outstanding shares | 63 | 63 | 63 | 63 | ||||||||||||
Equivalent shares from outstanding stock options | 1 | 1 | 1 | 1 | ||||||||||||
Denominator for diluted calculation | 64 | 64 | 64 | 64 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 2.49 | $ | 3.23 | $ | 1.12 | $ | 5.93 | ||||||||
Diluted | $ | 2.48 | $ | 3.18 | $ | 1.11 | $ | 5.83 |
Three months ended June 30, | Six months ended June 30, | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Excluded from common equivalent shares: | ||||||||||||
Stock options | 1,638 | 250 | 1,200 | 420 | ||||||||
Performance contingent shares | 96 | 242 | 130 | 171 |
Issued | Held In Treasury | Outstanding | ||||||||||||||||||
Balance, December 31, 2020 | 85,310,598 | 17,353,697 | 67,956,901 | |||||||||||||||||
Issuance of common stock | 0 | 0 | 0 | |||||||||||||||||
Common stock acquired | 0 | 0 | 0 | |||||||||||||||||
Stock-based compensation (1) | 0 | (40,036) | 40,036 | |||||||||||||||||
Balance, June 30, 2021 | 85,310,598 | 17,313,661 | 67,996,937 | |||||||||||||||||
Issued | Held In Treasury | Outstanding | Issued | Held In Treasury | Outstanding | ||||||||||||||||||||||||
Balance, December 31, 2019 | 79,137,758 | 16,481,656 | 62,656,102 | Balance, December 31, 2019 | 79,137,758 | 16,481,656 | 62,656,102 | ||||||||||||||||||||||
Issuance of common stock | 6,172,840 | — | 6,172,840 | Issuance of common stock | 6,172,840 | 0 | 6,172,840 | ||||||||||||||||||||||
Common stock acquired | — | 1,074,413 | (1,074,413 | ) | Common stock acquired | 0 | 1,074,413 | (1,074,413) | |||||||||||||||||||||
Stock-based compensation (1) | — | (181,330 | ) | 181,330 | Stock-based compensation (1) | 0 | (181,330) | 181,330 | |||||||||||||||||||||
Balance, June 30, 2020 | 85,310,598 | 17,374,739 | 67,935,859 | Balance, June 30, 2020 | 85,310,598 | 17,374,739 | 67,935,859 |
Issued | Held In Treasury | Outstanding | |||||||
Balance, December 31, 2018 | 79,137,758 | 16,323,390 | 62,814,368 | ||||||
Common stock acquired | — | 344,237 | (344,237 | ) | |||||
Stock-based compensation (1) | — | (288,360 | ) | 288,360 | |||||
Balance, June 30, 2019 | 79,137,758 | 16,379,267 | 62,758,491 |
Accumulated Currency Translation Adjustments | Unrealized Appreciation (Depreciation) of Investments(1) | Pension and Postretirement Benefits | Total | |||||||||||||||||||||||
Balance, December 31, 2020 | $ | (69) | $ | 5,500 | $ | (72) | $ | 5,359 | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 55 | (1,607) | (3) | (1,555) | ||||||||||||||||||||||
Amounts reclassified to (from) AOCI | 0 | (154) | 3 | (151) | ||||||||||||||||||||||
Deferred income tax benefit (expense) | (6) | 394 | 0 | 388 | ||||||||||||||||||||||
Balance, June 30, 2021 | $ | (20) | $ | 4,133 | $ | (72) | $ | 4,041 |
Accumulated Currency Translation Adjustments | Unrealized Appreciation (Depreciation) of Investments(1) | Pension and Postretirement Benefits | Total | Accumulated Currency Translation Adjustments | Unrealized Appreciation (Depreciation) of Investments(1) | Pension and Postretirement Benefits | Total | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | (92 | ) | $ | 3,299 | $ | (70 | ) | $ | 3,137 | Balance, December 31, 2019 | $ | (92) | $ | 3,299 | $ | (70) | $ | 3,137 | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (116 | ) | 1,034 | (12 | ) | 906 | Other comprehensive income (loss) before reclassifications | (116) | 1,034 | (12) | 906 | |||||||||||||||||||||||||||||||
Amounts reclassified to (from) AOCI | — | — | 2 | 2 | Amounts reclassified to (from) AOCI | 0 | 0 | 2 | 2 | |||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (2 | ) | (244 | ) | 2 | (244 | ) | Deferred income tax benefit (expense) | (2) | (244) | 2 | (244) | ||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | (210 | ) | $ | 4,089 | $ | (78 | ) | $ | 3,801 | Balance, June 30, 2020 | $ | (210) | $ | 4,089 | $ | (78) | $ | 3,801 |
Accumulated Currency Translation Adjustments | Unrealized Appreciation (Depreciation) of Investments(1) | Pension and Postretirement Benefits | Total | |||||||||||||
Balance, December 31, 2018 | $ | (169 | ) | $ | 856 | $ | (51 | ) | $ | 636 | ||||||
Other comprehensive income (loss) before reclassifications | 44 | 2,617 | (3 | ) | 2,658 | |||||||||||
Amounts reclassified to (from) AOCI | — | (98 | ) | 3 | (95 | ) | ||||||||||
Deferred income tax benefit (expense) | 2 | (559 | ) | — | (557 | ) | ||||||||||
Balance, June 30, 2019 | $ | (123 | ) | $ | 2,816 | $ | (51 | ) | $ | 2,642 |
Amount Reclassified from AOCI | ||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||
Details about AOCI Components | 2021 | 2020 | 2021 | 2020 | Affected Line Item in Statements of Income | |||||||||||||||||||||||||||
Net unrealized investment gains (losses): | ||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on available-for-sale securities | $ | 26 | $ | 11 | $ | 183 | $ | (28) | Investment related gains (losses), net | |||||||||||||||||||||||
Cash flow hedges – Interest rate | 0 | (1) | (2) | (1) | (1) | |||||||||||||||||||||||||||
Cash flow hedges – Currency/Interest rate | (4) | 0 | (4) | 0 | (1) | |||||||||||||||||||||||||||
Deferred policy acquisition costs attributed to unrealized gains and losses | 19 | 131 | (23) | 29 | (2) | |||||||||||||||||||||||||||
Total | 41 | 141 | 154 | 0 | ||||||||||||||||||||||||||||
Provision for income taxes | (9) | (29) | (33) | (2) | ||||||||||||||||||||||||||||
Net unrealized gains (losses), net of tax | $ | 32 | $ | 112 | $ | 121 | $ | (2) | ||||||||||||||||||||||||
Amortization of defined benefit plan items: | ||||||||||||||||||||||||||||||||
Prior service cost (credit) | $ | 1 | $ | 1 | $ | 1 | $ | 1 | (3) | |||||||||||||||||||||||
Actuarial gains (losses) | (3) | (2) | (4) | (3) | (3) | |||||||||||||||||||||||||||
Total | (2) | (1) | (3) | (2) | ||||||||||||||||||||||||||||
Provision for income taxes | 1 | — | 1 | — | ||||||||||||||||||||||||||||
Amortization of defined benefit plans, net of tax | $ | (1) | $ | (1) | $ | (2) | $ | (2) | ||||||||||||||||||||||||
Total reclassifications for the period | $ | 31 | $ | 111 | $ | 119 | $ | (4) |
Amount Reclassified from AOCI | ||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||
Details about AOCI Components | 2020 | 2019 | 2020 | 2019 | Affected Line Item in Statements of Income | |||||||||||||
Net unrealized investment gains (losses): | ||||||||||||||||||
Net unrealized gains (losses) on available-for-sale securities | $ | 11 | $ | 20 | $ | (28 | ) | $ | 20 | Investment related gains (losses), net | ||||||||
Cash flow hedges – Interest rate | (1 | ) | — | (1 | ) | 1 | (1) | |||||||||||
Cash flow hedges – Currency/Interest rate | — | — | — | — | (1) | |||||||||||||
Deferred policy acquisition costs attributed to unrealized gains and losses | 131 | 63 | 29 | 77 | (2) | |||||||||||||
Total | 141 | 83 | — | 98 | ||||||||||||||
Provision for income taxes | (29 | ) | (17 | ) | (2 | ) | (20 | ) | ||||||||||
Net unrealized gains (losses), net of tax | $ | 112 | $ | 66 | $ | (2 | ) | $ | 78 | |||||||||
Amortization of defined benefit plan items: | ||||||||||||||||||
Prior service (cost) credit | $ | 1 | $ | 1 | $ | 1 | $ | 1 | (3) | |||||||||
Actuarial gains (losses) | (2 | ) | (1 | ) | (3 | ) | (3 | ) | (3) | |||||||||
Total | (1 | ) | — | (2 | ) | (2 | ) | |||||||||||
Provision for income taxes | — | — | — | 1 | ||||||||||||||
Amortization of defined benefit plans, net of tax | $ | (1 | ) | $ | — | $ | (2 | ) | $ | (1 | ) | |||||||
Total reclassifications for the period | $ | 111 | $ | 66 | $ | (4 | ) | $ | 77 |
June 30, 2021: | Amortized Cost | Allowance for Credit Losses | Unrealized Gains | Unrealized Losses | Estimated Fair Value | % of Total | ||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||||||
Corporate | $ | 33,687 | $ | 11 | $ | 3,465 | $ | 137 | $ | 37,004 | 63.4 | % | ||||||||||||||||||||||||||
Canadian government | 3,303 | 0 | 1,602 | 2 | 4,903 | 8.4 | ||||||||||||||||||||||||||||||||
RMBS | 1,323 | 0 | 60 | 6 | 1,377 | 2.4 | ||||||||||||||||||||||||||||||||
ABS | 3,467 | 0 | 36 | 21 | 3,482 | 6.0 | ||||||||||||||||||||||||||||||||
CMBS | 1,774 | 1 | 102 | 6 | 1,869 | 3.2 | ||||||||||||||||||||||||||||||||
U.S. government | 1,295 | 0 | 47 | 24 | 1,318 | 2.3 | ||||||||||||||||||||||||||||||||
State and political subdivisions | 1,206 | 0 | 144 | 6 | 1,344 | 2.3 | ||||||||||||||||||||||||||||||||
Other foreign government | 6,742 | 4 | 317 | 65 | 6,990 | 12.0 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 52,797 | $ | 16 | $ | 5,773 | $ | 267 | $ | 58,287 | 100.0 | % |
June 30, 2020: | Amortized Cost | Allowance for Credit Losses | Unrealized Gains | Unrealized Losses | Estimated Fair Value | % of Total | Impairments in AOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020: | December 31, 2020: | Amortized Cost | Allowance for Credit Losses | Unrealized Gains | Unrealized Losses | Estimated Fair Value | % of Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale: | Available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | $ | 29,785 | $ | 32 | $ | 3,071 | $ | 254 | $ | 32,570 | 62.3 | % | $ | — | Corporate | $ | 31,963 | $ | 17 | $ | 4,356 | $ | 94 | $ | 36,208 | 63.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
Canadian government | 2,917 | — | 1,941 | — | 4,858 | 9.3 | — | Canadian government | 3,145 | 0 | 1,995 | 0 | 5,140 | 9.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | 1,962 | — | 104 | 1 | 2,065 | 3.9 | — | RMBS | 1,735 | 0 | 84 | 2 | 1,817 | 3.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ABS | 2,798 | — | 20 | 87 | 2,731 | 5.2 | — | ABS | 3,099 | 0 | 35 | 42 | 3,092 | 5.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 1,850 | — | 42 | 41 | 1,851 | 3.5 | — | CMBS | 1,790 | 3 | 102 | 21 | 1,868 | 3.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government | 1,395 | — | 244 | — | 1,639 | 3.1 | — | U.S. government | 1,242 | 0 | 196 | 1 | 1,437 | 2.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | 1,056 | — | 135 | 7 | 1,184 | 2.3 | — | State and political subdivisions | 1,237 | 0 | 157 | 4 | 1,390 | 2.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other foreign government | 5,140 | 1 | 367 | 58 | 5,448 | 10.4 | — | Other foreign government | 5,337 | 0 | 479 | 33 | 5,783 | 10.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 46,903 | $ | 33 | $ | 5,924 | $ | 448 | $ | 52,346 | 100.0 | % | $ | — | Total fixed maturity securities | $ | 49,548 | $ | 20 | $ | 7,404 | $ | 197 | $ | 56,735 | 100.0 | % |
December 31, 2019: | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | % of Total | Impairments in AOCI | |||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
Corporate | $ | 29,205 | $ | 2,269 | $ | 81 | $ | 31,393 | 61.4 | % | $ | — | |||||||||||
Canadian government | 3,016 | 1,596 | — | 4,612 | 9.0 | — | |||||||||||||||||
RMBS | 2,339 | 62 | 3 | 2,398 | 4.7 | — | |||||||||||||||||
ABS | 2,973 | 19 | 14 | 2,978 | 5.8 | — | |||||||||||||||||
CMBS | 1,841 | 61 | 3 | 1,899 | 3.7 | — | |||||||||||||||||
U.S. government | 2,096 | 57 | 1 | 2,152 | 4.2 | — | |||||||||||||||||
State and political subdivisions | 1,074 | 93 | 3 | 1,164 | 2.3 | — | |||||||||||||||||
Other foreign government | 4,209 | 321 | 5 | 4,525 | 8.9 | — | |||||||||||||||||
Total fixed maturity securities | $ | 46,753 | $ | 4,478 | $ | 110 | $ | 51,121 | 100.0 | % | $ | — |
June 30, 2020 | December 31, 2019 | ||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
Fixed maturity securities pledged as collateral | $ | 136 | $ | 148 | $ | 113 | $ | 116 | |||||||
Fixed maturity securities received as collateral | n/a | 1,206 | n/a | 727 | |||||||||||
Assets in trust held to satisfy collateral requirements | 27,353 | 29,726 | 27,290 | 29,239 |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||
Fixed maturity securities pledged as collateral | $ | 125 | $ | 135 | $ | 148 | $ | 162 | |||||||||||||||
Fixed maturity securities received as collateral | n/a | 1,881 | n/a | 1,784 | |||||||||||||||||||
Assets in trust held to satisfy collateral requirements | 27,929 | 30,749 | 27,675 | 31,179 |
June 30, 2020 | December 31, 2019 | ||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
Fixed maturity securities guaranteed or issued by: | |||||||||||||||
Government of Japan | $ | 1,566 | $ | 1,555 | $ | 813 | $ | 852 | |||||||
Canadian province of Quebec | 1,187 | 2,332 | 1,205 | 2,163 | |||||||||||
Canadian province of Ontario | 980 | 1,436 | 1,014 | 1,379 |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||
Fixed maturity securities guaranteed or issued by: | |||||||||||||||||||||||
Government of Japan | $ | 2,890 | $ | 2,879 | $ | 1,493 | $ | 1,491 | |||||||||||||||
Canadian province of Quebec | 1,372 | 2,315 | 1,303 | 2,474 | |||||||||||||||||||
Canadian province of Ontario | 1,097 | 1,477 | 1,054 | 1,528 |
Amortized Cost | Estimated Fair Value | |||||||
Available-for-sale: | ||||||||
Due in one year or less | $ | 1,453 | $ | 1,454 | ||||
Due after one year through five years | 8,028 | 8,412 | ||||||
Due after five years through ten years | 10,013 | 10,979 | ||||||
Due after ten years | 20,799 | 24,854 | ||||||
Structured securities | 6,610 | 6,647 | ||||||
Total | $ | 46,903 | $ | 52,346 |
Amortized Cost | Estimated Fair Value | |||||||||||||
Available-for-sale: | ||||||||||||||
Due in one year or less | $ | 1,143 | $ | 1,150 | ||||||||||
Due after one year through five years | 8,350 | 8,887 | ||||||||||||
Due after five years through ten years | 10,565 | 11,518 | ||||||||||||
Due after ten years | 26,175 | 30,004 | ||||||||||||
Structured securities | 6,564 | 6,728 | ||||||||||||
Total | $ | 52,797 | $ | 58,287 |
June 30, 2020: | Estimated | ||||||||||
Amortized Cost | Fair Value | % of Total | |||||||||
Finance | $ | 11,189 | $ | 12,127 | 37.2 | % | |||||
Industrial | 14,962 | 16,316 | 50.1 | ||||||||
Utility | 3,634 | 4,127 | 12.7 | ||||||||
Total | $ | 29,785 | $ | 32,570 | 100.0 | % | |||||
December 31, 2019: | Estimated | ||||||||||
Amortized Cost | Fair Value | % of Total | |||||||||
Finance | $ | 10,896 | $ | 11,653 | 37.2 | % | |||||
Industrial | 14,692 | 15,803 | 50.3 | ||||||||
Utility | 3,617 | 3,937 | 12.5 | ||||||||
Total | $ | 29,205 | $ | 31,393 | 100.0 | % |
June 30, 2021: | Estimated | |||||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | % of Total | ||||||||||||||||||||||||||||||||||||
Finance | $ | 12,479 | $ | 13,627 | 36.8 | % | ||||||||||||||||||||||||||||||||
Industrial | 17,032 | 18,749 | 50.7 | |||||||||||||||||||||||||||||||||||
Utility | 4,176 | 4,628 | 12.5 | |||||||||||||||||||||||||||||||||||
Total | $ | 33,687 | $ | 37,004 | 100.0 | % | ||||||||||||||||||||||||||||||||
December 31, 2020: | Estimated | |||||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | % of Total | ||||||||||||||||||||||||||||||||||||
Finance | $ | 11,785 | $ | 13,236 | 36.6 | % | ||||||||||||||||||||||||||||||||
Industrial | 16,274 | 18,435 | 50.9 | |||||||||||||||||||||||||||||||||||
Utility | 3,904 | 4,537 | 12.5 | |||||||||||||||||||||||||||||||||||
Total | $ | 31,963 | $ | 36,208 | 100.0 | % |
Corporate | Other Foreign Government | Total | |||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | |||||
Credit losses recognized on securities for which credit losses were not previously recorded | 40 | 2 | 42 | ||||||||
Reductions for securities sold during the period | (8 | ) | (1 | ) | (9 | ) | |||||
Balance, end of period | $ | 32 | $ | 1 | $ | 33 |
Six months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
Corporate | CMBS | Other Foreign Government | Total | ||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 17 | $ | 3 | $ | 0 | $ | 20 | |||||||||||||||||||||||||||
Credit losses recognized on securities for which credit losses were not previously recorded | 2 | 1 | 4 | 7 | |||||||||||||||||||||||||||||||
Reductions for securities sold during the period | (8) | (2) | 0 | (10) | |||||||||||||||||||||||||||||||
Additional increases or decreases for credit losses on securities that had an allowance recorded in a previous period | 0 | (1) | 0 | (1) | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 11 | $ | 1 | $ | 4 | $ | 16 |
Six months ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Corporate | CMBS | Other Foreign Government | Total | ||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||
Credit losses recognized on securities for which credit losses were not previously recorded | 40 | 0 | 2 | 42 | |||||||||||||||||||||||||||||||
Reductions for securities sold during the period | (8) | 0 | (1) | (9) | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 32 | $ | 0 | $ | 1 | $ | 33 |
June 30, 2020 | December 31, 2019 | |||||||||||||
Gross Unrealized Losses | % of Total | Gross Unrealized Losses | % of Total | |||||||||||
Less than 20% | $ | 348 | 77.7 | % | $ | 76 | 69.1 | % | ||||||
20% or more for less than six months | 91 | 20.3 | 20 | 18.2 | ||||||||||
20% or more for six months or greater | 9 | 2.0 | 14 | 12.7 | ||||||||||
Total | $ | 448 | 100.0 | % | $ | 110 | 100.0 | % |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Gross Unrealized Losses | % of Total | Gross Unrealized Losses | % of Total | |||||||||||||||||||||||
Less than 20% | $ | 213 | 79.8 | % | $ | 133 | 67.5 | % | ||||||||||||||||||
20% or more for less than six months | 2 | 0.7 | 42 | 21.3 | ||||||||||||||||||||||
20% or more for six months or greater | 52 | 19.5 | 22 | 11.2 | ||||||||||||||||||||||
Total | $ | 267 | 100.0 | % | $ | 197 | 100.0 | % |
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||||
June 30, 2021: | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||||||||||||||||
Investment grade securities: | ||||||||||||||||||||||||||||||||||||||
Corporate | $ | 2,596 | $ | 79 | $ | 168 | $ | 6 | $ | 2,764 | $ | 85 | ||||||||||||||||||||||||||
Canadian government | 24 | 2 | — | — | 24 | 2 | ||||||||||||||||||||||||||||||||
RMBS | 261 | 5 | 21 | 1 | 282 | 6 | ||||||||||||||||||||||||||||||||
ABS | 800 | 4 | 754 | 5 | 1,554 | 9 | ||||||||||||||||||||||||||||||||
CMBS | 0 | 0 | 24 | 1 | 24 | 1 | ||||||||||||||||||||||||||||||||
U.S. government | 364 | 24 | 0 | 0 | 364 | 24 | ||||||||||||||||||||||||||||||||
State and political subdivisions | 95 | 2 | 29 | 4 | 124 | 6 | ||||||||||||||||||||||||||||||||
Other foreign government | 1,630 | 37 | 561 | 23 | 2,191 | 60 | ||||||||||||||||||||||||||||||||
Total investment grade securities | 5,770 | 153 | 1,557 | 40 | 7,327 | 193 | ||||||||||||||||||||||||||||||||
Below investment grade securities: | ||||||||||||||||||||||||||||||||||||||
Corporate | 258 | 42 | 168 | 10 | 426 | 52 | ||||||||||||||||||||||||||||||||
ABS | 24 | 1 | 15 | 11 | 39 | 12 | ||||||||||||||||||||||||||||||||
CMBS | 0 | 0 | 43 | 5 | 43 | 5 | ||||||||||||||||||||||||||||||||
Other foreign government | 66 | 3 | 16 | 2 | 82 | 5 | ||||||||||||||||||||||||||||||||
Total below investment grade securities | 348 | 46 | 242 | 28 | 590 | 74 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 6,118 | $ | 199 | $ | 1,799 | $ | 68 | $ | 7,917 | $ | 267 |
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
June 30, 2020: | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||
Investment grade securities: | ||||||||||||||||||||||||
Corporate | $ | 2,359 | $ | 125 | $ | 67 | $ | 9 | $ | 2,426 | $ | 134 | ||||||||||||
RMBS | — | — | 28 | 1 | 28 | 1 | ||||||||||||||||||
ABS | 1,425 | 53 | 558 | 29 | 1,983 | 82 | ||||||||||||||||||
CMBS | 690 | 37 | 13 | 1 | 703 | 38 | ||||||||||||||||||
U.S. government | — | — | — | — | — | — | ||||||||||||||||||
State and political subdivisions | 59 | 5 | 12 | 2 | 71 | 7 | ||||||||||||||||||
Other foreign government | 1,073 | 47 | — | — | 1,073 | 47 | ||||||||||||||||||
Total investment grade securities | 5,606 | 267 | 678 | 42 | 6,284 | 309 | ||||||||||||||||||
Below investment grade securities: | ||||||||||||||||||||||||
Corporate | 780 | 114 | 53 | 6 | 833 | 120 | ||||||||||||||||||
ABS | 20 | 5 | — | — | 20 | 5 | ||||||||||||||||||
CMBS | 23 | 3 | — | — | 23 | 3 | ||||||||||||||||||
Other foreign government | 103 | 8 | 12 | 3 | 115 | 11 | ||||||||||||||||||
Total below investment grade securities | 926 | 130 | 65 | 9 | 991 | 139 | ||||||||||||||||||
Total fixed maturity securities | $ | 6,532 | $ | 397 | $ | 743 | $ | 51 | $ | 7,275 | $ | 448 |
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
December 31, 2019: | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||
Investment grade securities: | ||||||||||||||||||||||||
Corporate | $ | 1,936 | $ | 29 | $ | 293 | $ | 7 | $ | 2,229 | $ | 36 | ||||||||||||
RMBS | 367 | 2 | 84 | 1 | 451 | 3 | ||||||||||||||||||
ABS | 773 | 5 | 739 | 9 | 1,512 | 14 | ||||||||||||||||||
CMBS | 253 | 3 | — | — | 253 | 3 | ||||||||||||||||||
U.S. government | 49 | 1 | — | — | 49 | 1 | ||||||||||||||||||
State and political subdivisions | 103 | 2 | 12 | 1 | 115 | 3 | ||||||||||||||||||
Other foreign government | 278 | 4 | — | — | 278 | 4 | ||||||||||||||||||
Total investment grade securities | 3,759 | 46 | 1,128 | 18 | 4,887 | 64 | ||||||||||||||||||
Below investment grade securities: | ||||||||||||||||||||||||
Corporate | 220 | 38 | 100 | 7 | 320 | 45 | ||||||||||||||||||
ABS | — | — | — | — | — | — | ||||||||||||||||||
CMBS | — | — | — | — | — | — | ||||||||||||||||||
Other foreign government | — | — | 10 | 1 | 10 | 1 | ||||||||||||||||||
Total below investment grade securities | 220 | 38 | 110 | 8 | 330 | 46 | ||||||||||||||||||
Total fixed maturity securities | $ | 3,979 | $ | 84 | $ | 1,238 | $ | 26 | $ | 5,217 | $ | 110 |
Less than 12 months | 12 months or greater | Total | ||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||||
December 31, 2020: | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||||||||||||||||
Investment grade securities: | ||||||||||||||||||||||||||||||||||||||
Corporate | $ | 930 | $ | 29 | $ | 70 | $ | 5 | $ | 1,000 | $ | 34 | ||||||||||||||||||||||||||
Canadian government | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
RMBS | 294 | 2 | 0 | 0 | 294 | 2 | ||||||||||||||||||||||||||||||||
ABS | 1,096 | 17 | 570 | 11 | 1,666 | 28 | ||||||||||||||||||||||||||||||||
CMBS | 160 | 6 | 0 | 0 | 160 | 6 | ||||||||||||||||||||||||||||||||
U.S. government | 27 | 1 | 0 | 0 | 27 | 1 | ||||||||||||||||||||||||||||||||
State and political subdivisions | 66 | 1 | 16 | 3 | 82 | 4 | ||||||||||||||||||||||||||||||||
Other foreign government | 973 | 27 | 0 | 0 | 973 | 27 | ||||||||||||||||||||||||||||||||
Total investment grade securities | 3,546 | 83 | 656 | 19 | 4,202 | 102 | ||||||||||||||||||||||||||||||||
Below investment grade securities: | ||||||||||||||||||||||||||||||||||||||
Corporate | 375 | 49 | 81 | 11 | 456 | 60 | ||||||||||||||||||||||||||||||||
ABS | 20 | 13 | 4 | 1 | 24 | 14 | ||||||||||||||||||||||||||||||||
CMBS | 91 | 15 | 0 | 0 | 91 | 15 | ||||||||||||||||||||||||||||||||
Other foreign government | 36 | 3 | 28 | 3 | 64 | 6 | ||||||||||||||||||||||||||||||||
Total below investment grade securities | 522 | 80 | 113 | 15 | 635 | 95 | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 4,068 | $ | 163 | $ | 769 | $ | 34 | $ | 4,837 | $ | 197 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Fixed maturity securities available-for-sale | $ | 474 | $ | 428 | $ | 954 | $ | 843 | |||||||
Equity securities | 1 | 1 | 3 | 2 | |||||||||||
Mortgage loans on real estate | 66 | �� | 61 | 133 | 120 | ||||||||||
Policy loans | 14 | 14 | 29 | 29 | |||||||||||
Funds withheld at interest | 69 | 66 | 122 | 128 | |||||||||||
Short-term investments and cash and cash equivalents | 2 | 7 | 6 | 14 | |||||||||||
Other invested assets | 41 | 32 | 36 | 74 | |||||||||||
Investment income | 667 | 609 | 1,283 | 1,210 | |||||||||||
Investment expense | (22 | ) | (25 | ) | (44 | ) | (46 | ) | |||||||
Investment income, net of related expenses | $ | 645 | $ | 584 | $ | 1,239 | $ | 1,164 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Fixed maturity securities available-for-sale | $ | 516 | $ | 474 | $ | 1,011 | $ | 954 | |||||||||||||||
Equity securities | 1 | 1 | 3 | 3 | |||||||||||||||||||
Mortgage loans on real estate | 73 | 66 | 139 | 133 | |||||||||||||||||||
Policy loans | 13 | 14 | 27 | 29 | |||||||||||||||||||
Funds withheld at interest | 95 | 69 | 179 | 122 | |||||||||||||||||||
Short-term investments and cash and cash equivalents | 0 | 2 | 1 | 6 | |||||||||||||||||||
Other invested assets | 87 | 41 | 261 | 36 | |||||||||||||||||||
Investment income | 785 | 667 | 1,621 | 1,283 | |||||||||||||||||||
Investment expense | (26) | (22) | (50) | (44) | |||||||||||||||||||
Investment income, net of related expenses | $ | 759 | $ | 645 | $ | 1,571 | $ | 1,239 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||
Impairments and change in allowance for credit losses | $ | 5 | $ | 0 | $ | 3 | $ | (34) | |||||||||||||||
Gain on investment activity | 53 | 46 | 220 | 73 | |||||||||||||||||||
Loss on investment activity | (30) | (46) | (43) | (54) | |||||||||||||||||||
Net gains (losses) on equity securities | 20 | 8 | 23 | (15) | |||||||||||||||||||
Other impairment losses and change in mortgage loan allowance for credit losses | 3 | (22) | 21 | (35) | |||||||||||||||||||
Change in fair value of certain limited partnership investments and other, net | 32 | 8 | 143 | 17 | |||||||||||||||||||
Net gains (losses) on derivatives | 29 | 87 | 47 | (156) | |||||||||||||||||||
Total investment related gains (losses), net | $ | 112 | $ | 81 | $ | 414 | $ | (204) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||
Impairment losses and change in allowance for credit losses | $ | — | $ | — | $ | (34 | ) | $ | (9 | ) | |||||
Gain on investment activity | 46 | 20 | 73 | 48 | |||||||||||
Loss on investment activity | (46 | ) | (7 | ) | (54 | ) | (26 | ) | |||||||
Net gains (losses) on equity securities | 8 | 3 | (15 | ) | 7 | ||||||||||
Other impairment losses and change in mortgage loan provision | (22 | ) | (6 | ) | (35 | ) | (8 | ) | |||||||
Derivatives and other, net | 95 | 2 | (139 | ) | 8 | ||||||||||
Total investment related gains (losses), net | $ | 81 | $ | 12 | $ | (204 | ) | $ | 20 |
June 30, 2020 | December 31, 2019 | ||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
Borrowed securities | $ | 270 | $ | 300 | $ | 339 | $ | 369 | |||||||
Securities lending: | |||||||||||||||
Securities loaned | 102 | 105 | 98 | 104 | |||||||||||
Securities received | n/a | 107 | n/a | 107 | |||||||||||
Repurchase program/reverse repurchase program: | |||||||||||||||
Securities pledged | 449 | 481 | 356 | 384 | |||||||||||
Securities received | n/a | 372 | n/a | 370 |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||
Borrowed securities | $ | 318 | $ | 360 | $ | 118 | $ | 161 | |||||||||||||||
Securities lending: | |||||||||||||||||||||||
Securities loaned | 94 | 103 | 94 | 105 | |||||||||||||||||||
Securities received | n/a | 102 | n/a | 102 | |||||||||||||||||||
Repurchase program/reverse repurchase program: | |||||||||||||||||||||||
Securities pledged | 877 | 919 | 653 | 711 | |||||||||||||||||||
Securities received | n/a | 670 | n/a | 669 | |||||||||||||||||||
Cash received | n/a | 207 | n/a | 0 |
June 30, 2021 | |||||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30 – 90 Days | Greater than 90 Days | Total | |||||||||||||||||||||||||
Securities lending transactions: | |||||||||||||||||||||||||||||
Corporate | $ | 0 | $ | 0 | $ | 0 | $ | 103 | $ | 103 | |||||||||||||||||||
Total | 0 | 0 | 0 | 103 | 103 | ||||||||||||||||||||||||
Repurchase/reverse repurchase transactions: | |||||||||||||||||||||||||||||
Corporate | 0 | 0 | 0 | 411 | 411 | ||||||||||||||||||||||||
Other foreign government | 0 | 0 | 220 | 288 | 508 | ||||||||||||||||||||||||
Total | 0 | 0 | 220 | 699 | 919 | ||||||||||||||||||||||||
Total transactions | $ | 0 | $ | 0 | $ | 220 | $ | 802 | $ | 1,022 | |||||||||||||||||||
Gross amount of recognized liabilities for securities lending and repurchase/reverse repurchase transactions in preceding table | $ | 979 | |||||||||||||||||||||||||||
Amounts related to agreements not included in offsetting disclosure | $ | 43 |
June 30, 2020 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater than 90 Days | Total | Overnight and Continuous | Up to 30 Days | 30 – 90 Days | Greater than 90 Days | Total | |||||||||||||||||||||||||||||||||||||||
Securities lending transactions: | Securities lending transactions: | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate | $ | — | $ | — | $ | — | $ | 105 | $ | 105 | Corporate | $ | 0 | $ | 0 | $ | 0 | $ | 105 | $ | 105 | |||||||||||||||||||||||||||
Total | — | — | — | 105 | 105 | Total | 0 | 0 | 0 | 105 | 105 | |||||||||||||||||||||||||||||||||||||
Repurchase/reverse repurchase transactions: | Repurchase/reverse repurchase transactions: | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | — | 353 | 353 | Corporate | 0 | 0 | 0 | 417 | 417 | |||||||||||||||||||||||||||||||||||||
Other foreign government | — | — | — | 128 | 128 | Other foreign government | 0 | 0 | 0 | 294 | 294 | |||||||||||||||||||||||||||||||||||||
Total | — | — | — | 481 | 481 | Total | 0 | 0 | 0 | 711 | 711 | |||||||||||||||||||||||||||||||||||||
Total transactions | $ | — | $ | — | $ | — | $ | 586 | $ | 586 | Total transactions | $ | 0 | $ | 0 | $ | 0 | $ | 816 | $ | 816 | |||||||||||||||||||||||||||
Gross amount of recognized liabilities for securities lending and repurchase/reverse repurchase transactions in preceding table | Gross amount of recognized liabilities for securities lending and repurchase/reverse repurchase transactions in preceding table | $ | 533 | Gross amount of recognized liabilities for securities lending and repurchase/reverse repurchase transactions in preceding table | $ | 771 | ||||||||||||||||||||||||||||||||||||||||||
Amounts related to agreements not included in offsetting disclosure | Amounts related to agreements not included in offsetting disclosure | $ | 53 | Amounts related to agreements not included in offsetting disclosure | $ | 45 |
December 31, 2019 | |||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater than 90 Days | Total | |||||||||||||||
Securities lending transactions: | |||||||||||||||||||
Corporate | $ | — | $ | — | $ | — | $ | 104 | $ | 104 | |||||||||
Total | — | — | — | 104 | 104 | ||||||||||||||
Repurchase/reverse repurchase transactions: | |||||||||||||||||||
Corporate | — | — | — | 286 | 286 | ||||||||||||||
Other foreign government | — | — | — | 98 | 98 | ||||||||||||||
Total | — | — | — | 384 | 384 | ||||||||||||||
Total borrowings | $ | — | $ | — | $ | — | $ | 488 | $ | 488 | |||||||||
Gross amount of recognized liabilities for securities lending and repurchase/reverse repurchase transactions in preceding table | $ | 478 | |||||||||||||||||
Amounts related to agreements not included in offsetting disclosure | $ | 10 |
June 30, 2020 | December 31, 2019 | |||||||||||||
Property type: | Carrying Value | % of Total | Carrying Value | % of Total | ||||||||||
Office | $ | 1,773 | 29.4 | % | $ | 1,771 | 31.0 | % | ||||||
Retail | 1,705 | 28.2 | 1,686 | 29.4 | ||||||||||
Industrial | 1,253 | 20.7 | 1,169 | 20.4 | ||||||||||
Apartment | 868 | 14.4 | 766 | 13.4 | ||||||||||
Other commercial | 441 | 7.3 | 335 | 5.8 | ||||||||||
Recorded investment | 6,040 | 100.0 | % | 5,727 | 100.0 | % | ||||||||
Unamortized balance of loan origination fees and expenses | (10 | ) | (9 | ) | ||||||||||
Valuation allowances | (56 | ) | (12 | ) | ||||||||||
Total mortgage loans on real estate | $ | 5,974 | $ | 5,706 |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Property type: | Carrying Value | % of Total | Carrying Value | % of Total | ||||||||||||||||||||||
Office | $ | 1,733 | 26.5 | % | $ | 1,702 | 29.0 | % | ||||||||||||||||||
Retail | 2,036 | 31.2 | 1,711 | 29.3 | ||||||||||||||||||||||
Industrial | 1,388 | 21.2 | 1,210 | 20.6 | ||||||||||||||||||||||
Apartment | 897 | 13.7 | 808 | 13.8 | ||||||||||||||||||||||
Other commercial | 483 | 7.4 | 430 | 7.3 | ||||||||||||||||||||||
Recorded investment | 6,537 | 100.0 | % | 5,861 | 100.0 | % | ||||||||||||||||||||
Unamortized balance of loan origination fees and expenses | (11) | (10) | ||||||||||||||||||||||||
Allowance for credit losses | (45) | (64) | ||||||||||||||||||||||||
Total mortgage loans on real estate | $ | 6,481 | $ | 5,787 |
June 30, 2020 | December 31, 2019 | |||||||||||||
Recorded Investment | % of Total | Recorded Investment | % of Total | |||||||||||
Due within five years | $ | 2,257 | 37.3 | % | $ | 1,841 | 32.2 | % | ||||||
Due after five years through ten years | 2,854 | 47.3 | 2,944 | 51.4 | ||||||||||
Due after ten years | 929 | 15.4 | 942 | 16.4 | ||||||||||
Total | $ | 6,040 | 100.0 | % | $ | 5,727 | 100.0 | % |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Recorded Investment | % of Total | Recorded Investment | % of Total | |||||||||||||||||||||||
Due within five years | $ | 2,585 | 39.6 | % | $ | 2,276 | 38.8 | % | ||||||||||||||||||
Due after five years through ten years | 2,845 | 43.5 | 2,768 | 47.3 | ||||||||||||||||||||||
Due after ten years | 1,107 | 16.9 | 817 | 13.9 | ||||||||||||||||||||||
Total | $ | 6,537 | 100.0 | % | $ | 5,861 | 100.0 | % |
Recorded Investment | |||||||||||||||||||||||||||||||||||
Debt Service Ratios | Construction Loans | ||||||||||||||||||||||||||||||||||
>1.20x | 1.00x – 1.20x | <1.00x | Total | % of Total | |||||||||||||||||||||||||||||||
June 30, 2021: | |||||||||||||||||||||||||||||||||||
Loan-to-Value Ratio | |||||||||||||||||||||||||||||||||||
0% – 59.99% | $ | 3,053 | $ | 274 | $ | 65 | $ | 24 | $ | 3,416 | 52.2 | % | |||||||||||||||||||||||
60% – 69.99% | 2,110 | 200 | 42 | 0 | 2,352 | 36.0 | |||||||||||||||||||||||||||||
70% – 79.99% | 503 | 36 | 16 | 0 | 555 | 8.5 | |||||||||||||||||||||||||||||
80% or greater | 193 | 0 | 21 | 0 | 214 | 3.3 | |||||||||||||||||||||||||||||
Total | $ | 5,859 | $ | 510 | $ | 144 | $ | 24 | $ | 6,537 | 100.0 | % |
Recorded Investment | ||||||||||||||||||||||
Debt Service Ratios | Construction Loans | |||||||||||||||||||||
>1.20x | 1.00x - 1.20x | <1.00x | Total | % of Total | ||||||||||||||||||
June 30, 2020: | ||||||||||||||||||||||
Loan-to-Value Ratio | ||||||||||||||||||||||
0% - 59.99% | $ | 3,074 | $ | 114 | $ | 9 | $ | 1 | $ | 3,198 | 53.0 | % | ||||||||||
60% - 69.99% | 1,923 | 78 | 30 | — | 2,031 | 33.6 | ||||||||||||||||
70% - 79.99% | 559 | 60 | 4 | — | 623 | 10.3 | ||||||||||||||||
80% or greater | 101 | 61 | 26 | — | 188 | 3.1 | ||||||||||||||||
Total | $ | 5,657 | $ | 313 | $ | 69 | $ | 1 | $ | 6,040 | 100.0 | % |
Recorded Investment | ||||||||||||||||||||||
Debt Service Ratios | Construction Loans | |||||||||||||||||||||
>1.20x | 1.00x - 1.20x | <1.00x | Total | % of Total | ||||||||||||||||||
December 31, 2019: | ||||||||||||||||||||||
Loan-to-Value Ratio | ||||||||||||||||||||||
0% - 59.99% | $ | 3,025 | $ | 52 | $ | 7 | $ | — | $ | 3,084 | 53.8 | % | ||||||||||
60% - 69.99% | 1,841 | 53 | 11 | — | 1,905 | 33.3 | ||||||||||||||||
70% - 79.99% | 492 | 13 | 39 | — | 544 | 9.5 | ||||||||||||||||
80% or greater | 96 | 61 | 37 | — | 194 | 3.4 | ||||||||||||||||
Total | $ | 5,454 | $ | 179 | $ | 94 | $ | — | $ | 5,727 | 100.0 | % |
Recorded Investment | |||||||||||||||||||||||||||||||||||
Debt Service Ratios | Construction Loans | ||||||||||||||||||||||||||||||||||
>1.20x | 1.00x – 1.20x | <1.00x | Total | % of Total | |||||||||||||||||||||||||||||||
December 31, 2020: | |||||||||||||||||||||||||||||||||||
Loan-to-Value Ratio | |||||||||||||||||||||||||||||||||||
0% – 59.99% | $ | 2,774 | $ | 106 | $ | 17 | $ | 12 | $ | 2,909 | 49.6 | % | |||||||||||||||||||||||
60% – 69.99% | 2,013 | 62 | 33 | 0 | 2,108 | 36.0 | |||||||||||||||||||||||||||||
70% – 79.99% | 555 | 49 | 13 | 0 | 617 | 10.5 | |||||||||||||||||||||||||||||
80% or greater | 189 | 21 | 17 | 0 | 227 | 3.9 | |||||||||||||||||||||||||||||
Total | $ | 5,531 | $ | 238 | $ | 80 | $ | 12 | $ | 5,861 | 100.0 | % |
Recorded Investment | |||||||||||||||||||||||||||
Year of Origination | |||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||
June 30, 2020: | |||||||||||||||||||||||||||
Internal credit quality grade: | |||||||||||||||||||||||||||
High investment grade | $ | 332 | $ | 674 | $ | 622 | $ | 401 | $ | 601 | $ | 1,115 | $ | 3,745 | |||||||||||||
Investment grade | 263 | 517 | 317 | 342 | 271 | 409 | 2,119 | ||||||||||||||||||||
Average | — | — | 9 | 25 | 27 | 94 | 155 | ||||||||||||||||||||
Watch list | — | — | — | — | — | 4 | 4 | ||||||||||||||||||||
In or near default | — | — | — | — | — | 17 | 17 | ||||||||||||||||||||
Total | $ | 595 | $ | 1,191 | $ | 948 | $ | 768 | $ | 899 | $ | 1,639 | $ | 6,040 |
Recorded Investment | |||||||||||||||||||||||||||||||||||||||||
Year of Origination | |||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | |||||||||||||||||||||||||||||||||||
June 30, 2021: | |||||||||||||||||||||||||||||||||||||||||
Internal credit quality grade: | |||||||||||||||||||||||||||||||||||||||||
High investment grade | $ | 491 | $ | 406 | $ | 569 | $ | 468 | $ | 304 | $ | 1,686 | $ | 3,924 | |||||||||||||||||||||||||||
Investment grade | 263 | 366 | 474 | 371 | 399 | 580 | 2,453 | ||||||||||||||||||||||||||||||||||
Average | 6 | 0 | 0 | 39 | 18 | 57 | 120 | ||||||||||||||||||||||||||||||||||
Watch list | 0 | 0 | 0 | 0 | 0 | 4 | 4 | ||||||||||||||||||||||||||||||||||
In or near default | 0 | 0 | 0 | 0 | 0 | 36 | 36 | ||||||||||||||||||||||||||||||||||
Total | $ | 760 | $ | 772 | $ | 1,043 | $ | 878 | $ | 721 | $ | 2,363 | $ | 6,537 |
Recorded Investment | |||||||||||||||||||||||||||||||||||||||||
Year of Origination | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||||||||
December 31, 2020: | |||||||||||||||||||||||||||||||||||||||||
Internal credit quality grade: | |||||||||||||||||||||||||||||||||||||||||
High investment grade | $ | 411 | $ | 616 | $ | 493 | $ | 336 | $ | 574 | $ | 1,008 | $ | 3,438 | |||||||||||||||||||||||||||
Investment grade | 352 | 496 | 399 | 407 | 249 | 368 | 2,271 | ||||||||||||||||||||||||||||||||||
Average | 0 | 0 | 0 | 19 | 37 | 55 | 111 | ||||||||||||||||||||||||||||||||||
Watch list | 0 | 0 | 0 | 0 | 0 | 4 | 4 | ||||||||||||||||||||||||||||||||||
In or near default | 0 | 0 | 0 | 0 | 0 | 37 | 37 | ||||||||||||||||||||||||||||||||||
Total | $ | 763 | $ | 1,112 | $ | 892 | $ | 762 | $ | 860 | $ | 1,472 | $ | 5,861 |
June 30, 2020 | December 31, 2019 | |||||||
31-60 days past due | $ | 63 | $ | — | ||||
61-90 days past due | 9 | — | ||||||
Greater than 90 days | 15 | — | ||||||
Total past due | 87 | — | ||||||
Current | 5,953 | 5,727 | ||||||
Total | $ | 6,040 | $ | 5,727 |
June 30, 2021 | December 31, 2020 | |||||||||||||
Current | $ | 6,522 | $ | 5,846 | ||||||||||
31 – 60 days past due | 15 | 15 | ||||||||||||
Total | $ | 6,537 | $ | 5,861 |
June 30, 2021 | December 31, 2020 | |||||||||||||
Mortgage loans: | ||||||||||||||
Individually measured for impairment | $ | 36 | $ | 37 | ||||||||||
Collectively measured for impairment | 6,501 | 5,824 | ||||||||||||
Recorded investment | $ | 6,537 | $ | 5,861 | ||||||||||
Allowance for credit losses: | ||||||||||||||
Individually measured for impairment | $ | 0 | $ | 0 | ||||||||||
Collectively measured for impairment | 45 | 64 | ||||||||||||
Total allowance for credit losses | $ | 45 | $ | 64 |
June 30, 2020 | December 31, 2019 | |||||||
Mortgage loans: | ||||||||
Individually measured for impairment | $ | 17 | $ | 17 | ||||
Collectively measured for impairment | 6,023 | 5,710 | ||||||
Recorded investment | $ | 6,040 | $ | 5,727 | ||||
Valuation allowances: | ||||||||
Individually measured for impairment | $ | — | $ | — | ||||
Collectively measured for impairment | 56 | 12 | ||||||
Total valuation allowances | $ | 56 | $ | 12 |
Six months ended June 30, | |||||||||
2020 | 2019 | ||||||||
Balance, beginning of period | $ | 12 | $ | 11 | |||||
Adoption of new accounting standard, see Note 13 | 14 | — | |||||||
Provision (release) | 30 | 1 | |||||||
Balance, end of period | $ | 56 | $ | 12 |
Six months ended June 30, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Balance, beginning of period | $ | 64 | $ | 12 | ||||||||||||||||||||||
Adoption of new accounting standard, see Note 14 | 0 | 14 | ||||||||||||||||||||||||
Change in allowance for credit losses | (19) | 30 | ||||||||||||||||||||||||
Balance, end of period | $ | 45 | $ | 56 |
Unpaid Principal Balance | Recorded Investment | Related Allowance | Carrying Value | |||||||||||||
June 30, 2020: | ||||||||||||||||
Impaired mortgage loans with no valuation allowance recorded | $ | 17 | $ | 17 | $ | — | $ | 17 | ||||||||
Impaired mortgage loans with valuation allowance recorded | — | — | — | — | ||||||||||||
Total impaired mortgage loans | $ | 17 | $ | 17 | $ | — | $ | 17 | ||||||||
December 31, 2019: | ||||||||||||||||
Impaired mortgage loans with no valuation allowance recorded | $ | 17 | $ | 17 | $ | — | $ | 17 | ||||||||
Impaired mortgage loans with valuation allowance recorded | — | — | — | — | ||||||||||||
Total impaired mortgage loans | $ | 17 | $ | 17 | $ | — | $ | 17 | ||||||||
The Company’s average investment balance of impaired mortgage loans and the related interest income are reflected in the table below for the periods indicated (dollars in millions): | ||||||||||||||||
Three months ended June 30, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
Average Recorded Investment(1) | Interest Income | Average Recorded Investment(1) | Interest Income | |||||||||||||
Impaired mortgage loans with no valuation allowance recorded | $ | 17 | $ | — | $ | 17 | $ | — | ||||||||
Impaired mortgage loans with valuation allowance recorded | — | — | — | — | ||||||||||||
Total impaired mortgage loans | $ | 17 | $ | — | $ | 17 | $ | — | ||||||||
Six months ended June 30, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
Average Recorded Investment(1) | Interest Income | Average Recorded Investment(1) | Interest Income | |||||||||||||
Impaired mortgage loans with no valuation allowance recorded | $ | 17 | $ | — | $ | 22 | $ | — | ||||||||
Impaired mortgage loans with valuation allowance recorded | — | — | — | — | ||||||||||||
Total impaired mortgage loans | $ | 17 | $ | — | $ | 22 | $ | — |
Unpaid Principal Balance | Recorded Investment | Related Allowance | Carrying Value | |||||||||||||||||||||||
June 30, 2021: | ||||||||||||||||||||||||||
Impaired mortgage loans with no allowance for credit losses recorded | $ | 36 | $ | 36 | $ | 0 | $ | 36 | ||||||||||||||||||
Impaired mortgage loans with allowance for credit losses recorded | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total impaired mortgage loans | $ | 36 | $ | 36 | $ | 0 | $ | 36 | ||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||
Impaired mortgage loans with no allowance for credit losses recorded | $ | 37 | $ | 37 | $ | 0 | $ | 37 | ||||||||||||||||||
Impaired mortgage loans with allowance for credit losses recorded | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total impaired mortgage loans | $ | 37 | $ | 37 | $ | 0 | $ | 37 | ||||||||||||||||||
The Company’s average investment balance of impaired mortgage loans and the related interest income are reflected in the table below for the periods indicated (dollars in millions): | ||||||||||||||||||||||||||
Three months ended June 30, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Average Recorded Investment(1) | Interest Income | Average Recorded Investment(1) | Interest Income | |||||||||||||||||||||||
Impaired mortgage loans with no allowance for credit losses recorded | $ | 36 | $ | 1 | $ | 17 | $ | 0 | ||||||||||||||||||
Total impaired mortgage loans | $ | 36 | $ | 1 | $ | 17 | $ | 0 | ||||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Average Recorded Investment(1) | Interest Income | Average Recorded Investment(1) | Interest Income | |||||||||||||||||||||||
Impaired mortgage loans with no allowance for credit losses recorded | $ | 36 | $ | 1 | $ | 17 | $ | 0 | ||||||||||||||||||
Total impaired mortgage loans | $ | 36 | $ | 1 | $ | 17 | $ | 0 |
June 30, 2020 | December 31, 2019 | |||||||
Limited partnership interests and real estate joint ventures | $ | 1,204 | $ | 1,134 | ||||
Lifetime mortgages | 787 | 775 | ||||||
Derivatives | 205 | 117 | ||||||
FVO contractholder-directed unit-linked investments | 250 | 260 | ||||||
Other | 101 | 77 | ||||||
Total other invested assets | $ | 2,547 | $ | 2,363 |
June 30, 2021 | December 31, 2020 | |||||||||||||
Limited partnership interests and real estate joint ventures | $ | 1,611 | $ | 1,367 | ||||||||||
Lifetime mortgages | 958 | 935 | ||||||||||||
Derivatives | 146 | 140 | ||||||||||||
FVO contractholder-directed unit-linked investments | 54 | 289 | ||||||||||||
Other | 155 | 98 | ||||||||||||
Total other invested assets | $ | 2,924 | $ | 2,829 |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Primary Underlying Risk | Notional | Carrying Value/Fair Value | Notional | Carrying Value/Fair Value | ||||||||||||||||||||||||||||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | 1,089 | $ | 74 | $ | 1 | $ | 1,084 | $ | 93 | $ | 1 | |||||||||||||||||||||||||||||||
Financial futures | Equity | 254 | 0 | 0 | 258 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Foreign currency swaps | Foreign currency | 150 | 0 | 6 | 150 | 0 | 18 | |||||||||||||||||||||||||||||||||||||
Foreign currency forwards | Foreign currency | 459 | 1 | 4 | 347 | 4 | 2 | |||||||||||||||||||||||||||||||||||||
CPI swaps | CPI | 607 | 19 | 11 | 612 | 11 | 19 | |||||||||||||||||||||||||||||||||||||
Credit default swaps | Credit | 1,893 | 36 | 1 | 1,517 | 13 | 0 | |||||||||||||||||||||||||||||||||||||
Equity options | Equity | 479 | 23 | 0 | 395 | 29 | 0 | |||||||||||||||||||||||||||||||||||||
Synthetic GICs | Interest rate | 16,489 | 0 | 0 | 16,644 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Embedded derivatives in: | ||||||||||||||||||||||||||||||||||||||||||||
Modco or funds withheld arrangements | 0 | 124 | 0 | 0 | 58 | 0 | ||||||||||||||||||||||||||||||||||||||
Indexed annuity products | 0 | 0 | 726 | 0 | 0 | 752 | ||||||||||||||||||||||||||||||||||||||
Variable annuity products | 0 | 0 | 154 | 0 | 0 | 155 | ||||||||||||||||||||||||||||||||||||||
Total non-hedging derivatives | 21,420 | 277 | 903 | 21,007 | 208 | 947 | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Foreign currency/Interest rate | 920 | 5 | 27 | 802 | 3 | 24 | |||||||||||||||||||||||||||||||||||||
Foreign currency swaps | Foreign currency | 193 | 3 | 1 | 234 | 8 | 1 | |||||||||||||||||||||||||||||||||||||
Foreign currency forwards | Foreign currency | 1,327 | 9 | 24 | 1,255 | 10 | 15 | |||||||||||||||||||||||||||||||||||||
Forward bond purchase commitments | Interest rate | 369 | 7 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Total hedging derivatives | 2,809 | 24 | 52 | 2,291 | 21 | 40 | ||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 24,229 | $ | 301 | $ | 955 | $ | 23,298 | $ | 229 | $ | 987 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Primary Underlying Risk | Notional | Carrying Value/Fair Value | Notional | Carrying Value/Fair Value | ||||||||||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | 1,086 | $ | 105 | $ | 3 | $ | 909 | $ | 70 | $ | 3 | |||||||||||||
Financial futures | Equity | 342 | — | — | 307 | — | — | |||||||||||||||||||
Foreign currency swaps | Foreign currency | 150 | — | 21 | 150 | — | 9 | |||||||||||||||||||
Foreign currency forwards | Foreign currency | 252 | 1 | — | 175 | 1 | — | |||||||||||||||||||
CPI swaps | CPI | 569 | 9 | 52 | 441 | — | 28 | |||||||||||||||||||
Credit default swaps | Credit | 1,327 | 3 | 1 | 1,306 | 5 | — | |||||||||||||||||||
Equity options | Equity | 366 | 38 | — | 364 | 15 | — | |||||||||||||||||||
Synthetic GICs | Interest rate | 14,888 | — | — | 13,823 | — | — | |||||||||||||||||||
Embedded derivatives in: | ||||||||||||||||||||||||||
Modco or funds withheld arrangements | — | — | 108 | — | 121 | — | ||||||||||||||||||||
Indexed annuity products | — | — | 746 | — | — | 767 | ||||||||||||||||||||
Variable annuity products | — | — | 184 | — | — | 163 | ||||||||||||||||||||
Total non-hedging derivatives | 18,980 | 156 | 1,115 | 17,475 | 212 | 970 | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate swaps | Foreign currency/Interest rate | 489 | 1 | 41 | 535 | 1 | 29 | |||||||||||||||||||
Foreign currency swaps | Foreign currency | 302 | 23 | 10 | 342 | 17 | 2 | |||||||||||||||||||
Foreign currency forwards | Foreign currency | 1,092 | 68 | — | 1,094 | 28 | 2 | |||||||||||||||||||
Total hedging derivatives | 1,883 | 92 | 51 | 1,971 | 46 | 33 | ||||||||||||||||||||
Total derivatives | $ | 20,863 | $ | 248 | $ | 1,166 | $ | 19,446 | $ | 258 | $ | 1,003 |
Type of Fair Value Hedge | Hedged Item | Gains (Losses) Recognized for Derivatives | Gains (Losses) Recognized for Hedged Items | |||||||
Investment Related Gains (Losses) | ||||||||||
For the three months ended June 30, 2020: | ||||||||||
Foreign currency swaps | Foreign-denominated fixed maturity securities | $ | 15 | $ | (13 | ) | ||||
For the three months ended June 30, 2019: | ||||||||||
Foreign currency swaps | Foreign-denominated fixed maturity securities | $ | (4 | ) | $ | 1 | ||||
For the six months ended June 30, 2020: | ||||||||||
Foreign currency swaps | Foreign-denominated fixed maturity securities | $ | (8 | ) | $ | 2 | ||||
For the six months ended June 30, 2019: | ||||||||||
Foreign currency swaps | Foreign-denominated fixed maturity securities | $ | (4 | ) | $ | — |
Type of Fair Value Hedge | Hedged Item | Gains (Losses) Recognized for Derivatives | Gains (Losses) Recognized for Hedged Items | |||||||||||||||||
Investment Related Gains (Losses) | ||||||||||||||||||||
For the three months ended June 30, 2021: | ||||||||||||||||||||
Foreign currency swaps | Foreign-denominated fixed maturity securities | $ | (2) | $ | 2 | |||||||||||||||
For the three months ended June 30, 2020: | ||||||||||||||||||||
Foreign currency swaps | Foreign-denominated fixed maturity securities | $ | 15 | $ | (13) | |||||||||||||||
For the six months ended June 30, 2021: | ||||||||||||||||||||
Foreign currency swaps | Foreign-denominated fixed maturity securities | $ | (2) | $ | 3 | |||||||||||||||
For the six months ended June 30, 2020: | ||||||||||||||||||||
Foreign currency swaps | Foreign-denominated fixed maturity securities | $ | (8) | $ | 2 |
Three months ended June 30, | ||||||||
2020 | 2019 | |||||||
Balance, beginning of period | $ | (87 | ) | $ | (2 | ) | ||
Gains (losses) deferred in other comprehensive income (loss) | 12 | (13 | ) | |||||
Amounts reclassified to investment income | — | — | ||||||
Amounts reclassified to interest expense | 1 | — | ||||||
Balance, end of period | $ | (74 | ) | $ | (15 | ) | ||
Six months ended June 30, | ||||||||
2020 | 2019 | |||||||
Balance, beginning of period | $ | (26 | ) | $ | 9 | |||
Gains (losses) deferred in other comprehensive income (loss) | (49 | ) | (23 | ) | ||||
Amounts reclassified to investment income | — | — | ||||||
Amounts reclassified to interest expense | 1 | (1 | ) | |||||
Balance, end of period | $ | (74 | ) | $ | (15 | ) |
Three months ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Balance, beginning of period | $ | (71) | $ | (87) | ||||||||||
Gains deferred in other comprehensive income (loss) | 29 | 12 | ||||||||||||
Amounts reclassified to investment income | 0 | 0 | ||||||||||||
Amounts reclassified to interest expense | 2 | 1 | ||||||||||||
Balance, end of period | $ | (40) | $ | (74) | ||||||||||
Six months ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Balance, beginning of period | $ | (49) | $ | (26) | ||||||||||
Gains (losses) deferred in other comprehensive income (loss) | 5 | (49) | ||||||||||||
Amounts reclassified to investment income | 0 | 0 | ||||||||||||
Amounts reclassified to interest expense | 4 | 1 | ||||||||||||
Balance, end of period | $ | (40) | $ | (74) |
Derivative Type | Gain (Loss) Deferred in AOCI | Gain (Loss) Reclassified into Income from AOCI | ||||||||||||||||||||||||
Investment Income | Interest Expense | |||||||||||||||||||||||||
For the three months ended June 30, 2021: | ||||||||||||||||||||||||||
Interest rate | $ | 29 | $ | 0 | $ | (2) | ||||||||||||||||||||
Foreign currency/interest rate | 0 | 0 | 0 | |||||||||||||||||||||||
Total | $ | 29 | $ | 0 | $ | (2) | ||||||||||||||||||||
For the three months ended June 30, 2020: | ||||||||||||||||||||||||||
Interest rate | $ | (1) | $ | 0 | $ | (1) | ||||||||||||||||||||
Foreign currency/interest rate | 13 | 0 | 0 | |||||||||||||||||||||||
Total | $ | 12 | $ | 0 | $ | (1) | ||||||||||||||||||||
For the six months ended June 30, 2021: | ||||||||||||||||||||||||||
Interest rate | $ | 6 | $ | 0 | $ | (4) | ||||||||||||||||||||
Foreign currency/interest rate | (1) | 0 | 0 | |||||||||||||||||||||||
Total | $ | 5 | $ | 0 | $ | (4) | ||||||||||||||||||||
For the six months ended June 30, 2020: | ||||||||||||||||||||||||||
Interest rate | $ | (36) | $ | 0 | $ | (1) | ||||||||||||||||||||
Foreign currency/interest rate | (13) | 0 | 0 | |||||||||||||||||||||||
Total | $ | (49) | $ | 0 | $ | (1) |
Derivative Type | Gain (Loss) Deferred in AOCI | Gain (Loss) Reclassified into Income from AOCI | ||||||||||
Investment Income | Interest Expense | |||||||||||
For the three months ended June 30, 2020: | ||||||||||||
Interest rate | $ | (1 | ) | $ | — | $ | (1 | ) | ||||
Currency/Interest rate | 13 | — | — | |||||||||
Total | $ | 12 | $ | — | $ | (1 | ) | |||||
For the three months ended June 30, 2019: | ||||||||||||
Interest rate | $ | (10 | ) | $ | — | $ | — | |||||
Currency/Interest rate | (3 | ) | — | — | ||||||||
Total | $ | (13 | ) | $ | — | $ | — | |||||
For the six months ended June 30, 2020: | ||||||||||||
Interest rate | $ | (36 | ) | $ | — | $ | (1 | ) | ||||
Currency/Interest rate | (13 | ) | — | — | ||||||||
Total | $ | (49 | ) | $ | — | $ | (1 | ) | ||||
For the six months ended June 30, 2019: | ||||||||||||
Interest rate | $ | (22 | ) | $ | — | $ | 1 | |||||
Currency/Interest rate | (1 | ) | — | — | ||||||||
Total | $ | (23 | ) | $ | — | $ | 1 |
Derivative Gains (Losses) Deferred in AOCI | ||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
Type of NIFO Hedge | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Foreign currency swaps | $ | (2) | $ | (6) | $ | (3) | $ | 9 | ||||||||||||||||||
Foreign currency forwards | (10) | (34) | (24) | 46 | ||||||||||||||||||||||
Total | $ | (12) | $ | (40) | $ | (27) | $ | 55 |
Derivative Gains (Losses) Deferred in AOCI | ||||||||||||||||
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
Type of NIFO Hedge | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Foreign currency swaps | $ | (6 | ) | $ | (2 | ) | $ | 9 | $ | (10 | ) | |||||
Foreign currency forwards | (34 | ) | (6 | ) | 46 | (24 | ) | |||||||||
Total | $ | (40 | ) | $ | (8 | ) | $ | 55 | $ | (34 | ) |
Three months ended June 30, | ||||||||||||||||||||
Type of Non-hedging Derivative | Income Statement Location of Gain (Loss) | 2021 | 2020 | |||||||||||||||||
Interest rate swaps | Investment related gains (losses), net | $ | 33 | $ | 3 | |||||||||||||||
Financial futures | Investment related gains (losses), net | (9) | (48) | |||||||||||||||||
Foreign currency swaps | Investment related gains (losses), net | 3 | 3 | |||||||||||||||||
Foreign currency forwards | Investment related gains (losses), net | (1) | 1 | |||||||||||||||||
CPI swaps | Investment related gains (losses), net | 3 | 26 | |||||||||||||||||
Credit default swaps | Investment related gains (losses), net | 12 | 17 | |||||||||||||||||
Equity options | Investment related gains (losses), net | (11) | (25) | |||||||||||||||||
Subtotal | 30 | (23) | ||||||||||||||||||
Embedded derivatives in: | ||||||||||||||||||||
Modco or funds withheld arrangements | Investment related gains (losses), net | 16 | 1 | |||||||||||||||||
Indexed annuity products | Interest credited | (13) | (7) | |||||||||||||||||
Variable annuity products | Investment related gains (losses), net | (17) | 107 | |||||||||||||||||
Total non-hedging derivatives | $ | 16 | $ | 78 | ||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||
Type of Non-hedging Derivative | Income Statement Location of Gain (Loss) | 2021 | 2020 | |||||||||||||||||
Interest rate swaps | Investment related gains (losses), net | $ | (37) | $ | 109 | |||||||||||||||
Financial futures | Investment related gains (losses), net | (19) | (4) | |||||||||||||||||
Foreign currency swaps | Investment related gains (losses), net | 12 | (10) | |||||||||||||||||
Foreign currency forwards | Investment related gains (losses), net | (9) | (2) | |||||||||||||||||
CPI swaps | Investment related gains (losses), net | 21 | (14) | |||||||||||||||||
Credit default swaps | Investment related gains (losses), net | 32 | (7) | |||||||||||||||||
Equity options | Investment related gains (losses), net | (21) | 28 | |||||||||||||||||
Subtotal | (21) | 100 | ||||||||||||||||||
Embedded derivatives in: | ||||||||||||||||||||
Modco or funds withheld arrangements | Investment related gains (losses), net | 66 | (229) | |||||||||||||||||
Indexed annuity products | Interest credited | 1 | (1) | |||||||||||||||||
Variable annuity products | Investment related gains (losses), net | 1 | (21) | |||||||||||||||||
Total non-hedging derivatives | $ | 47 | $ | (151) |
Gain (Loss) for the three months ended June 30, | ||||||||||
Type of Non-hedging Derivative | Income Statement Location of Gain (Loss) | 2020 | 2019 | |||||||
Interest rate swaps | Investment related gains (losses), net | $ | 3 | $ | 34 | |||||
Financial futures | Investment related gains (losses), net | (48 | ) | (8 | ) | |||||
Foreign currency swaps | Investment related gains (losses), net | 3 | (6 | ) | ||||||
Foreign currency forwards | Investment related gains (losses), net | 1 | — | |||||||
CPI swaps | Investment related gains (losses), net | 26 | (7 | ) | ||||||
Credit default swaps | Investment related gains (losses), net | 17 | 5 | |||||||
Equity options | Investment related gains (losses), net | (25 | ) | (5 | ) | |||||
Longevity swaps | Other revenues | — | 2 | |||||||
Mortality swaps | Other revenues | — | (1 | ) | ||||||
Subtotal | (23 | ) | 14 | |||||||
Embedded derivatives in: | ||||||||||
Modco or funds withheld arrangements | Investment related gains (losses), net | 1 | 5 | |||||||
Indexed annuity products | Interest credited | (7 | ) | (8 | ) | |||||
Variable annuity products | Investment related gains (losses), net | 107 | (18 | ) | ||||||
Total non-hedging derivatives | $ | 78 | $ | (7 | ) | |||||
Gain (Loss) for the six months ended June 30, | ||||||||||
Type of Non-hedging Derivative | Income Statement Location of Gain (Loss) | 2020 | 2019 | |||||||
Interest rate swaps | Investment related gains (losses), net | $ | 109 | $ | 58 | |||||
Financial futures | Investment related gains (losses), net | (4 | ) | (30 | ) | |||||
Foreign currency swaps | Investment related gains (losses), net | (10 | ) | (5 | ) | |||||
Foreign currency forwards | Investment related gains (losses), net | (2 | ) | — | ||||||
CPI swaps | Investment related gains (losses), net | (14 | ) | (16 | ) | |||||
Credit default swaps | Investment related gains (losses), net | (7 | ) | 20 | ||||||
Equity options | Investment related gains (losses), net | 28 | (28 | ) | ||||||
Longevity swaps | Other revenues | — | 4 | |||||||
Mortality swaps | Other revenues | — | — | |||||||
Subtotal | 100 | 3 | ||||||||
Embedded derivatives in: | ||||||||||
Modco or funds withheld arrangements | Investment related gains (losses), net | (229 | ) | 3 | ||||||
Indexed annuity products | Interest credited | (1 | ) | (5 | ) | |||||
Variable annuity products | Investment related gains (losses), net | (21 | ) | — | ||||||
Total non-hedging derivatives | $ | (151 | ) | $ | 1 |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||
Rating Agency Designation of Referenced Credit Obligations(1) | Estimated Fair Value of Credit Default Swaps | Maximum Amount of Future Payments under Credit Default Swaps(2) | Weighted Average Years to Maturity(3) | Estimated Fair Value of Credit Default Swaps | Maximum Amount of Future Payments under Credit Default Swaps(2) | Weighted Average Years to Maturity(3) | ||||||||||||||||||||||||||||||||
AAA/AA+/AA/AA-/A+/A/A- | ||||||||||||||||||||||||||||||||||||||
Single name credit default swaps | $ | 34 | $ | 715 | 12.4 | $ | 11 | $ | 287 | 15.0 | ||||||||||||||||||||||||||||
Subtotal | 34 | 715 | 12.4 | 11 | 287 | 15.0 | ||||||||||||||||||||||||||||||||
BBB+/BBB/BBB- | ||||||||||||||||||||||||||||||||||||||
Single name credit default swaps | 1 | 181 | 2.0 | 2 | 232 | 1.6 | ||||||||||||||||||||||||||||||||
Credit default swaps referencing indices | 0 | 988 | 3.4 | 0 | 988 | 3.9 | ||||||||||||||||||||||||||||||||
Subtotal | 1 | 1,169 | 3.2 | 2 | 1,220 | 3.5 | ||||||||||||||||||||||||||||||||
BB+/BB/BB- | ||||||||||||||||||||||||||||||||||||||
Single name credit default swaps | 0 | 9 | 0.5 | 0 | 10 | 0.7 | ||||||||||||||||||||||||||||||||
Subtotal | 0 | 9 | 0.5 | 0 | 10 | 0.7 | ||||||||||||||||||||||||||||||||
Total | $ | 35 | $ | 1,893 | 6.7 | $ | 13 | $ | 1,517 | 5.6 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||
Rating Agency Designation of Referenced Credit Obligations(1) | Estimated Fair Value of Credit Default Swaps | Maximum Amount of Future Payments under Credit Default Swaps(2) | Weighted Average Years to Maturity(3) | Estimated Fair Value of Credit Default Swaps | Maximum Amount of Future Payments under Credit Default Swaps(2) | Weighted Average Years to Maturity(3) | ||||||||||||||
AAA/AA+/AA/AA-/A+/A/A- | ||||||||||||||||||||
Single name credit default swaps | $ | 1 | $ | 87 | 1.7 | $ | 2 | $ | 142 | 1.7 | ||||||||||
Subtotal | 1 | 87 | 1.7 | 2 | 142 | 1.7 | ||||||||||||||
BBB+/BBB/BBB- | ||||||||||||||||||||
Single name credit default swaps | — | 252 | 1.8 | 3 | 291 | 1.9 | ||||||||||||||
Credit default swaps referencing indices | 1 | 988 | 4.4 | — | 873 | 4.7 | ||||||||||||||
Subtotal | 1 | 1,240 | 3.9 | 3 | 1,164 | 4.0 | ||||||||||||||
Total | $ | 2 | $ | 1,327 | 3.7 | $ | 5 | $ | 1,306 | 3.7 |
Gross Amounts Not Offset in the Balance Sheet | ||||||||||||||||||||||||||||||||||||||
Gross Amounts Recognized | Gross Amounts Offset in the Balance Sheet | Net Amounts Presented in the Balance Sheet | Financial Instruments (1) | Cash Collateral Pledged/ Received | Net Amount | |||||||||||||||||||||||||||||||||
June 30, 2021: | ||||||||||||||||||||||||||||||||||||||
Derivative assets | $ | 177 | $ | (31) | $ | 146 | $ | (36) | $ | (100) | $ | 10 | ||||||||||||||||||||||||||
Derivative liabilities | 75 | (31) | 44 | (121) | (48) | (125) | ||||||||||||||||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||||||||||||||
Derivative assets | $ | 171 | $ | (31) | $ | 140 | $ | (30) | $ | (98) | $ | 12 | ||||||||||||||||||||||||||
Derivative liabilities | 80 | (31) | 49 | (146) | (47) | (144) |
Gross Amounts Not Offset in the Balance Sheet | ||||||||||||||||||||||||
Gross Amounts Recognized | Gross Amounts Offset in the Balance Sheet | Net Amounts Presented in the Balance Sheet | Financial Instruments (1) | Cash Collateral Pledged/ Received | Net Amount | |||||||||||||||||||
June 30, 2020: | ||||||||||||||||||||||||
Derivative assets | $ | 248 | $ | (43 | ) | $ | 205 | $ | — | $ | (205 | ) | $ | — | ||||||||||
Derivative liabilities | 128 | (43 | ) | 85 | (128 | ) | (89 | ) | (132 | ) | ||||||||||||||
December 31, 2019: | ||||||||||||||||||||||||
Derivative assets | $ | 137 | $ | (20 | ) | $ | 117 | $ | — | $ | (119 | ) | $ | (2 | ) | |||||||||
Derivative liabilities | 73 | (20 | ) | 53 | (92 | ) | (52 | ) | (91 | ) |
June 30, 2021: | Fair Value Measurements Using: | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Fixed maturity securities – available-for-sale: | ||||||||||||||||||||||||||
Corporate | $ | 37,004 | $ | 0 | $ | 33,796 | $ | 3,208 | ||||||||||||||||||
Canadian government | 4,903 | 0 | 4,903 | 0 | ||||||||||||||||||||||
RMBS | 1,377 | 0 | 1,375 | 2 | ||||||||||||||||||||||
ABS | 3,482 | 0 | 2,896 | 586 | ||||||||||||||||||||||
CMBS | 1,869 | 0 | 1,804 | 65 | ||||||||||||||||||||||
U.S. government | 1,318 | 1,198 | 107 | 13 | ||||||||||||||||||||||
State and political subdivisions | 1,344 | 0 | 1,336 | 8 | ||||||||||||||||||||||
Other foreign government | 6,990 | 0 | 6,949 | 41 | ||||||||||||||||||||||
Total fixed maturity securities – available-for-sale | 58,287 | 1,198 | 53,166 | 3,923 | ||||||||||||||||||||||
Equity securities | 147 | 84 | 0 | 63 | ||||||||||||||||||||||
Funds withheld at interest – embedded derivatives and other | 206 | 0 | 0 | 206 | ||||||||||||||||||||||
Cash equivalents | 1,167 | 1,152 | 15 | 0 | ||||||||||||||||||||||
Short-term investments | 166 | 1 | 165 | 0 | ||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||
Derivatives | 146 | 0 | 146 | 0 | ||||||||||||||||||||||
FVO contractholder-directed unit-linked investments | 54 | 0 | 54 | 0 | ||||||||||||||||||||||
Other | 53 | 0 | 53 | 0 | ||||||||||||||||||||||
Total other invested assets (1) | 253 | 0 | 253 | 0 | ||||||||||||||||||||||
Total | $ | 60,226 | $ | 2,435 | $ | 53,599 | $ | 4,192 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Interest-sensitive contract liabilities – embedded derivatives | $ | 880 | $ | 0 | $ | 0 | $ | 880 | ||||||||||||||||||
Other liabilities: | ||||||||||||||||||||||||||
Derivatives | 44 | 0 | 44 | 0 | ||||||||||||||||||||||
Total | $ | 924 | $ | 0 | $ | 44 | $ | 880 |
June 30, 2020: | Fair Value Measurements Using: | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Fixed maturity securities – available-for-sale: | ||||||||||||||||
Corporate | $ | 32,570 | $ | — | $ | 30,262 | $ | 2,308 | ||||||||
Canadian government | 4,858 | — | 4,858 | — | ||||||||||||
RMBS | 2,065 | — | 2,061 | 4 | ||||||||||||
ABS | 2,731 | — | 2,623 | 108 | ||||||||||||
CMBS | 1,851 | — | 1,810 | 41 | ||||||||||||
U.S. government | 1,639 | 1,528 | 96 | 15 | ||||||||||||
State and political subdivisions | 1,184 | — | 1,175 | 9 | ||||||||||||
Other foreign government | 5,448 | — | 5,431 | 17 | ||||||||||||
Total fixed maturity securities – available-for-sale | 52,346 | 1,528 | 48,316 | 2,502 | ||||||||||||
Equity securities | 130 | 68 | — | 62 | ||||||||||||
Funds withheld at interest – embedded derivatives | (108 | ) | — | — | (108 | ) | ||||||||||
Cash equivalents | 2,945 | 2,945 | — | — | ||||||||||||
Short-term investments | 35 | 17 | 13 | 5 | ||||||||||||
Other invested assets: | ||||||||||||||||
Derivatives | 205 | — | 205 | — | ||||||||||||
FVO contractholder-directed unit-linked investments | 250 | 192 | 58 | — | ||||||||||||
Other | 2 | — | 2 | — | ||||||||||||
Total other invested assets | 457 | 192 | 265 | — | ||||||||||||
Total | $ | 55,805 | $ | 4,750 | $ | 48,594 | $ | 2,461 | ||||||||
Liabilities: | ||||||||||||||||
Interest-sensitive contract liabilities – embedded derivatives | $ | 930 | $ | — | $ | — | $ | 930 | ||||||||
Other liabilities: | ||||||||||||||||
Derivatives | 85 | — | 85 | — | ||||||||||||
Total | $ | 1,015 | $ | — | $ | 85 | $ | 930 |
December 31, 2019: | Fair Value Measurements Using: | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Fixed maturity securities – available-for-sale: | ||||||||||||||||
Corporate | $ | 31,393 | $ | — | $ | 29,207 | $ | 2,186 | ||||||||
Canadian government | 4,612 | — | 3,908 | 704 | ||||||||||||
RMBS | 2,398 | — | 2,349 | 49 | ||||||||||||
ABS | 2,978 | — | 2,865 | 113 | ||||||||||||
CMBS | 1,899 | — | 1,853 | 46 | ||||||||||||
U.S. government | 2,152 | 2,030 | 106 | 16 | ||||||||||||
State and political subdivisions | 1,164 | — | 1,155 | 9 | ||||||||||||
Other foreign government | 4,525 | — | 4,509 | 16 | ||||||||||||
Total fixed maturity securities – available-for-sale | 51,121 | 2,030 | 45,952 | 3,139 | ||||||||||||
Equity securities | 320 | 243 | — | 77 | ||||||||||||
Funds withheld at interest – embedded derivatives | 121 | — | — | 121 | ||||||||||||
Cash equivalents | 274 | 274 | — | — | ||||||||||||
Short-term investments | 32 | 4 | 26 | 2 | ||||||||||||
Other invested assets: | ||||||||||||||||
Derivatives | 117 | — | 117 | — | ||||||||||||
FVO contractholder-directed unit-linked investments | 260 | 207 | 53 | — | ||||||||||||
Other | — | — | — | — | ||||||||||||
Total other invested assets | 377 | 207 | 170 | — | ||||||||||||
Total | $ | 52,245 | $ | 2,758 | $ | 46,148 | $ | 3,339 | ||||||||
Liabilities: | ||||||||||||||||
Interest-sensitive contract liabilities – embedded derivatives | $ | 930 | $ | — | $ | — | $ | 930 | ||||||||
Other liabilities: | ||||||||||||||||
Derivatives | 53 | — | 53 | — | ||||||||||||
Total | $ | 983 | $ | — | $ | 53 | $ | 930 |
December 31, 2020: | Fair Value Measurements Using: | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Fixed maturity securities – available-for-sale: | ||||||||||||||||||||||||||
Corporate | $ | 36,208 | $ | 0 | $ | 33,179 | $ | 3,029 | ||||||||||||||||||
Canadian government | 5,140 | 0 | 5,140 | 0 | ||||||||||||||||||||||
RMBS | 1,817 | 0 | 1,814 | 3 | ||||||||||||||||||||||
ABS | 3,092 | 0 | 2,896 | 196 | ||||||||||||||||||||||
CMBS | 1,868 | 0 | 1,813 | 55 | ||||||||||||||||||||||
U.S. government | 1,437 | 1,312 | 111 | 14 | ||||||||||||||||||||||
State and political subdivisions | 1,390 | 0 | 1,381 | 9 | ||||||||||||||||||||||
Other foreign government | 5,783 | 0 | 5,766 | 17 | ||||||||||||||||||||||
Total fixed maturity securities – available-for-sale | 56,735 | 1,312 | 52,100 | 3,323 | ||||||||||||||||||||||
Equity securities | 132 | 79 | 0 | 53 | ||||||||||||||||||||||
Funds withheld at interest – embedded derivatives and other | 114 | 0 | 0 | 114 | ||||||||||||||||||||||
Cash equivalents | 1,478 | 1,478 | 0 | 0 | ||||||||||||||||||||||
Short-term investments | 197 | 32 | 150 | 15 | ||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||
Derivatives | 140 | 0 | 140 | 0 | ||||||||||||||||||||||
FVO contractholder-directed unit-linked investments | 289 | 224 | 65 | 0 | ||||||||||||||||||||||
Total other invested assets | 429 | 224 | 205 | 0 | ||||||||||||||||||||||
Total | $ | 59,085 | $ | 3,125 | $ | 52,455 | $ | 3,505 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Interest-sensitive contract liabilities – embedded derivatives | $ | 907 | $ | 0 | $ | 0 | $ | 907 | ||||||||||||||||||
Other liabilities: | ||||||||||||||||||||||||||
Derivatives | 49 | 0 | 49 | 0 | ||||||||||||||||||||||
Total | $ | 956 | $ | 0 | $ | 49 | $ | 907 |
Estimated Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Corporate | $ | 45 | $ | 37 | Market comparable securities | Liquidity premium | 1% | 0-1% (1%) | |||||||||||||||||||||||||||
EBITDA Multiple | 5.0x-7.0x (5.9x) | 5.2x-11.2x (7.1x) | |||||||||||||||||||||||||||||||||
ABS | 78 | 87 | Market comparable securities | Liquidity premium | 1-18% (5%) | 1-18% (1%) | |||||||||||||||||||||||||||||
U.S. government | 13 | 14 | Market comparable securities | Liquidity premium | 0-1% (1%) | 0-1% (1%) | |||||||||||||||||||||||||||||
Equity securities | 10 | 10 | Market comparable securities | EBITDA Multiple | 6.3x-10.6x (7.9x) | 6.9x-10.6x (7.9x) | |||||||||||||||||||||||||||||
Funds withheld at interest – embedded derivatives | 124 | 58 | Total return swap | Mortality | 0-100% (3%) | 0-100% (3%) | |||||||||||||||||||||||||||||
Lapse | 0-35% (16%) | 0-35% (13%) | |||||||||||||||||||||||||||||||||
Withdrawal | 0-5% (3%) | 0-5% (3%) | |||||||||||||||||||||||||||||||||
CVA | 0-5% (0%) | 0-5% (1%) | |||||||||||||||||||||||||||||||||
Crediting rate | 1-4% (2%) | 2-4% (2%) | |||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Interest-sensitive contract liabilities – embedded derivatives – indexed annuities | 726 | 752 | Discounted cash flow | Mortality | 0-100% (3%) | 0-100% (3%) | |||||||||||||||||||||||||||||
Lapse | 0-35% (16%) | 0-35% (13%) | |||||||||||||||||||||||||||||||||
Withdrawal | 0-5% (3%) | 0-5% (3%) | |||||||||||||||||||||||||||||||||
Option budget projection | 1-4% (2%) | 2-4% (2%) | |||||||||||||||||||||||||||||||||
Interest-sensitive contract liabilities – embedded derivatives – variable annuities | 154 | 155 | Discounted cash flow | Mortality | 0-100% (2%) | 0-100% (2%) | |||||||||||||||||||||||||||||
Lapse | 0-25% (4%) | 0-25% (4%) | |||||||||||||||||||||||||||||||||
Withdrawal | 0-7% (5%) | 0-7% (5%) | |||||||||||||||||||||||||||||||||
CVA | 0-5% (1%) | 0-5% (1%) | |||||||||||||||||||||||||||||||||
Long-term volatility | 0-27% (14%) | 0-27% (13%) | |||||||||||||||||||||||||||||||||
Estimated Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||
June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | ||||||||||||||
Assets: | |||||||||||||||||
Corporate | $ | 1,155 | $ | 1,070 | Market comparable securities | Liquidity premium | 0-2% (1%) | 0-2% (1%) | |||||||||
EBITDA Multiple | 5.2x-8.0x (6.9x) | 5.2x-7.1x (6.5x) | |||||||||||||||
ABS | 88 | 101 | Market comparable securities | Liquidity premium | 1-18% (3%) | 0-4% (1%) | |||||||||||
U.S. government | 15 | 16 | Market comparable securities | Liquidity premium | 0-1% (1%) | 0-1% (1%) | |||||||||||
Other foreign government | 17 | 16 | Market comparable securities | Liquidity premium | 0-1% (1%) | 0-1% (1%) | |||||||||||
Equity securities | 32 | 32 | Market comparable securities | Liquidity premium | 4 | % | 4 | % | |||||||||
EBITDA Multiple | 6.9x-10.6x (8.0x) | 6.9x-9.3x (7.8x) | |||||||||||||||
Funds withheld at interest – embedded derivatives | (108 | ) | 121 | Total return swap | Mortality | 0-100% (2%) | 0-100% (2%) | ||||||||||
Lapse | 0-35% (14%) | 0-35% (13%) | |||||||||||||||
Withdrawal | 0-5% (3%) | 0-5% (3%) | |||||||||||||||
CVA | 0-5% (2%) | 0-5% (1%) | |||||||||||||||
Crediting rate | 2-4% (2%) | 2-4% (2%) | |||||||||||||||
Liabilities: | |||||||||||||||||
Interest-sensitive contract liabilities – embedded derivatives – indexed annuities | 746 | 768 | Discounted cash flow | Mortality | 0-100% (2%) | 0-100% (2%) | |||||||||||
Lapse | 0-35% (14%) | 0-35% (10%) | |||||||||||||||
Withdrawal | 0-5% (3%) | 0-5% (3%) | |||||||||||||||
Option budget projection | 2-4% (2%) | 2-4% (2%) | |||||||||||||||
Interest-sensitive contract liabilities – embedded derivatives – variable annuities | 184 | 163 | Discounted cash flow | Mortality | 0-100% (2%) | 0-100% (1%) | |||||||||||
Lapse | 0-25% (5%) | 0-25% (5%) | |||||||||||||||
Withdrawal | 0-7% (5%) | 0-7% (5%) | |||||||||||||||
CVA | 0-5% (2%) | 0-5% (1%) | |||||||||||||||
Long-term volatility | 0-27% (12%) | 0-27% (12%) |
For the three months ended June 30, 2020: | Fixed maturity securities - available-for-sale | Funds withheld at interest – embedded derivatives | Other assets and liabilities, net – longevity and mortality swaps | Interest-sensitive contract liabilities – embedded derivatives | ||||||||||||||||||||||||||||||||
Corporate | Foreign govt | Structured securities | U.S. and local govt | Equity securities | Short-term investments | |||||||||||||||||||||||||||||||
Fair value, beginning of period | $ | 2,197 | $ | 15 | $ | 144 | $ | 25 | $ | 56 | $ | 1 | $ | (109 | ) | $ | — | $ | (1,042 | ) | ||||||||||||||||
Total gains/losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Investment related gains (losses), net | (14 | ) | — | — | — | 3 | — | 1 | — | 106 | ||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | — | — | (7 | ) | ||||||||||||||||||||||||||
Included in other comprehensive income | 112 | 2 | 17 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Purchases(1) | 79 | — | 15 | — | 3 | 5 | — | — | (8 | ) | ||||||||||||||||||||||||||
Sales(1) | (18 | ) | — | (3 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements(1) | (44 | ) | — | (18 | ) | (1 | ) | — | (1 | ) | — | — | 21 | |||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Transfers out of Level 3 | (4 | ) | — | (2 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Fair value, end of period | $ | 2,308 | $ | 17 | $ | 153 | $ | 24 | $ | 62 | $ | 5 | $ | (108 | ) | $ | — | $ | (930 | ) | ||||||||||||||||
Unrealized gains and losses recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period | ||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Investment related gains (losses), net | (15 | ) | — | — | — | 3 | — | 1 | — | 103 | ||||||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | — | — | (27 | ) | ||||||||||||||||||||||||||
Included in other comprehensive income | 111 | 2 | 16 | — | — | — | — | — | — |
For the three months ended June 30, 2021: | Fixed maturity securities – available-for-sale | Funds withheld at interest – embedded derivatives & other | Interest-sensitive contract liabilities – embedded derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Foreign govt | Structured securities | U.S. and local govt | Equity securities | Short-term investments | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, beginning of period | $ | 3,101 | $ | 16 | $ | 388 | $ | 22 | $ | 54 | $ | 11 | $ | 176 | $ | (857) | ||||||||||||||||||||||||||||||||||||||||
Total gains/losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | 2 | 0 | 0 | 0 | 0 | 0 | (1) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | 2 | 0 | 0 | 0 | 10 | 0 | 16 | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (13) | ||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | 49 | 0 | 5 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases(1) | 317 | 25 | 262 | 0 | 0 | 0 | 16 | (13) | ||||||||||||||||||||||||||||||||||||||||||||||||
Sales(1) | (19) | 0 | (2) | 0 | (1) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Settlements(1) | (269) | 0 | (24) | (1) | 0 | (10) | (1) | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | 25 | 0 | 24 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | 0 | (1) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, end of period | $ | 3,208 | $ | 41 | $ | 653 | $ | 21 | $ | 63 | $ | 0 | $ | 206 | $ | (880) | ||||||||||||||||||||||||||||||||||||||||
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (1) | $ | 0 | ||||||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | 0 | 0 | 0 | 0 | 9 | 0 | 16 | (19) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (33) | ||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | 51 | 0 | 5 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2021: | Fixed maturity securities – available-for-sale | Funds withheld at interest – embedded derivatives & other | Interest-sensitive contract liabilities – embedded derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Foreign govt | Structured securities | U.S. and local govt | Equity securities | Short-term investments | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, beginning of period | $ | 3,029 | $ | 17 | $ | 254 | $ | 23 | $ | 53 | $ | 15 | $ | 114 | $ | (907) | ||||||||||||||||||||||||||||||||||||||||
Total gains/losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | 3 | 0 | 0 | 0 | 0 | 0 | (6) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | 1 | 0 | 0 | 0 | 11 | 0 | 66 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | (33) | (1) | 4 | 0 | 0 | 0 | 1 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases(1) | 540 | 25 | 428 | 0 | 0 | 0 | 32 | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||
Sales(1) | (20) | 0 | (2) | 0 | (1) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Settlements(1) | (341) | 0 | (85) | (2) | 0 | (10) | (1) | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | 29 | 0 | 54 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | 0 | 0 | 0 | (5) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, end of period | $ | 3,208 | $ | 41 | $ | 653 | $ | 21 | $ | 63 | $ | 0 | $ | 206 | $ | (880) | ||||||||||||||||||||||||||||||||||||||||
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (6) | $ | 0 | ||||||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | (1) | 0 | 0 | 0 | 10 | 0 | 66 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (41) | ||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | (31) | (1) | 4 | 0 | 0 | 0 | 1 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended June 30, 2020: | Fixed maturity securities – available-for-sale | Funds withheld at interest – embedded derivatives | Interest-sensitive contract liabilities – embedded derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Foreign govt | Structured securities | U.S. and local govt | Equity securities | Short-term investments | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, beginning of period | $ | 2,197 | $ | 15 | $ | 144 | $ | 25 | $ | 56 | $ | 1 | $ | (109) | $ | (1,042) | ||||||||||||||||||||||||||||||||||||||||
Total gains/losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | (14) | 0 | 0 | 0 | 3 | 0 | 1 | 106 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (7) | ||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | 112 | 2 | 17 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases(1) | 79 | 0 | 15 | 0 | 3 | 5 | 0 | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||
Sales(1) | (18) | 0 | (3) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Settlements(1) | (44) | 0 | (18) | (1) | 0 | (1) | 0 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | (4) | 0 | (2) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, end of period | $ | 2,308 | $ | 17 | $ | 153 | $ | 24 | $ | 62 | $ | 5 | $ | (108) | $ | (930) | ||||||||||||||||||||||||||||||||||||||||
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | (15) | 0 | 0 | 0 | 3 | 0 | 1 | 103 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (27) | ||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | 111 | 2 | 16 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2020: | Fixed maturity securities - available-for-sale | Funds withheld at interest – embedded derivatives | Other assets and liabilities, net – longevity and mortality swaps | Interest-sensitive contract liabilities – embedded derivatives | ||||||||||||||||||||||||||||||||
Corporate | Foreign govt | Structured securities | U.S. and local govt | Equity securities | Short-term investments | |||||||||||||||||||||||||||||||
Fair value, beginning of period | $ | 2,186 | $ | 720 | $ | 208 | $ | 25 | $ | 77 | $ | 2 | $ | 121 | $ | — | $ | (930 | ) | |||||||||||||||||
Total gains/losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | 1 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Investment related gains (losses), net | (25 | ) | — | — | — | (4 | ) | — | (229 | ) | — | (22 | ) | |||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | — | — | (1 | ) | ||||||||||||||||||||||||||
Included in other comprehensive income | (3 | ) | 1 | (10 | ) | 1 | — | — | — | — | — | |||||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Purchases(1) | 310 | — | 24 | — | 3 | 5 | — | — | (19 | ) | ||||||||||||||||||||||||||
Sales(1) | (62 | ) | — | (4 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements(1) | (96 | ) | — | (31 | ) | (2 | ) | — | (1 | ) | — | — | 42 | |||||||||||||||||||||||
Transfers into Level 3 | 1 | — | 21 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Transfers out of Level 3 | (4 | ) | (704 | ) | (55 | ) | — | (14 | ) | (1 | ) | — | — | — | ||||||||||||||||||||||
Fair value, end of period | $ | 2,308 | $ | 17 | $ | 153 | $ | 24 | $ | 62 | $ | 5 | $ | (108 | ) | $ | — | $ | (930 | ) | ||||||||||||||||
Unrealized gains and losses recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period | ||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Investment related gains (losses), net | (26 | ) | — | — | — | (4 | ) | — | (229 | ) | — | (27 | ) | |||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Claims & other policy benefits | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | — | — | (43 | ) | ||||||||||||||||||||||||||
Included in other comprehensive income | (29 | ) | 1 | (11 | ) | 1 | — | — | — | — | — |
For the three months ended June 30, 2019: | Fixed maturity securities - available-for-sale | Funds withheld at interest – embedded derivatives | Other assets and liabilities, net – longevity and mortality swaps | Interest-sensitive contract liabilities – embedded derivatives | ||||||||||||||||||||||||||||||||
Corporate | Foreign govt | Structured securities | U.S. and local govt | Equity securities | Short-term investments | |||||||||||||||||||||||||||||||
Fair value, beginning of period | $ | 1,531 | $ | 613 | $ | 120 | $ | 27 | $ | 40 | $ | 29 | $ | 108 | $ | 49 | $ | (904 | ) | |||||||||||||||||
Total gains/losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | — | 3 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Investment related gains (losses), net | — | — | — | — | 2 | — | 5 | — | (18 | ) | ||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | — | — | (8 | ) | ||||||||||||||||||||||||||
Included in other comprehensive income | 17 | 61 | 1 | 1 | — | — | — | 1 | — | |||||||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | 1 | 3 | |||||||||||||||||||||||||||
Purchases(1) | 176 | 10 | 12 | — | 3 | 1 | — | — | — | |||||||||||||||||||||||||||
Sales(1) | (14 | ) | — | — | — | — | (1 | ) | — | — | — | |||||||||||||||||||||||||
Settlements(1) | (81 | ) | — | (14 | ) | (1 | ) | — | (1 | ) | — | — | 19 | |||||||||||||||||||||||
Transfers into Level 3 | 16 | — | 7 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Transfers out of Level 3 | (1 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Fair value, end of period | $ | 1,644 | $ | 687 | $ | 126 | $ | 27 | $ | 45 | $ | 28 | $ | 113 | $ | 51 | $ | (908 | ) | |||||||||||||||||
Unrealized gains and losses recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period | ||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | $ | — | $ | 4 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Investment related gains (losses), net | — | — | — | — | 2 | — | 5 | — | (20 | ) | ||||||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | 1 | — | |||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | — | — | (28 | ) |
For the six months ended June 30, 2019: | Fixed maturity securities - available-for-sale | Funds withheld at interest – embedded derivatives | Other assets and liabilities, net – longevity and mortality swaps | Interest-sensitive contract liabilities – embedded derivatives | ||||||||||||||||||||||||||||||||
Corporate | Foreign govt | Structured securities | U.S. and local govt | Equity securities | Short-term investments | |||||||||||||||||||||||||||||||
Fair value, beginning of period | $ | 1,331 | $ | 533 | $ | 103 | $ | 28 | $ | 33 | $ | 2 | $ | 110 | $ | 47 | $ | (945 | ) | |||||||||||||||||
Total gains/losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | — | 7 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Investment related gains (losses), net | — | — | — | — | 6 | — | 3 | — | — | |||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | — | — | (5 | ) | ||||||||||||||||||||||||||
Included in other comprehensive income | 36 | 137 | 2 | 1 | — | — | — | — | — | |||||||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | 4 | — | |||||||||||||||||||||||||||
Purchases(1) | 391 | 10 | 43 | — | 6 | 28 | — | — | 4 | |||||||||||||||||||||||||||
Sales(1) | (25 | ) | — | — | — | — | (1 | ) | — | — | — | |||||||||||||||||||||||||
Settlements(1) | (104 | ) | — | (29 | ) | (2 | ) | — | (1 | ) | — | — | 38 | |||||||||||||||||||||||
Transfers into Level 3 | 16 | — | 7 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Transfers out of Level 3 | (1 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Fair value, end of period | $ | 1,644 | $ | 687 | $ | 126 | $ | 27 | $ | 45 | $ | 28 | $ | 113 | $ | 51 | $ | (908 | ) | |||||||||||||||||
Unrealized gains and losses recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period | ||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | $ | — | $ | 7 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Investment related gains (losses), net | — | — | — | — | 6 | — | 3 | — | (3 | ) | ||||||||||||||||||||||||||
Other revenues | — | — | — | — | — | — | — | 4 | — | |||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | — | — | (3 | ) |
For the six months ended June 30, 2020: | Fixed maturity securities – available-for-sale | Funds withheld at interest – embedded derivatives | Interest-sensitive contract liabilities – embedded derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Foreign govt | Structured securities | U.S. and local govt | Equity securities | Short-term investments | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, beginning of period | $ | 2,186 | $ | 720 | $ | 208 | $ | 25 | $ | 77 | $ | 2 | $ | 121 | $ | (930) | ||||||||||||||||||||||||||||||||||||||||
Total gains/losses (realized/unrealized) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | (25) | 0 | 0 | 0 | (4) | 0 | (229) | (22) | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | (3) | 1 | (10) | 1 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases(1) | 310 | 0 | 24 | 0 | 3 | 5 | 0 | (19) | ||||||||||||||||||||||||||||||||||||||||||||||||
Sales(1) | (62) | 0 | (4) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Settlements(1) | (96) | 0 | (31) | (2) | 0 | (1) | 0 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | 1 | 0 | 21 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | (4) | (704) | (55) | 0 | (14) | (1) | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, end of period | $ | 2,308 | $ | 17 | $ | 153 | $ | 24 | $ | 62 | $ | 5 | $ | (108) | $ | (930) | ||||||||||||||||||||||||||||||||||||||||
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings, net: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | (26) | 0 | 0 | 0 | (4) | 0 | (229) | (27) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (43) | ||||||||||||||||||||||||||||||||||||||||||||||||
Included in other comprehensive income | (29) | 1 | (11) | 1 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021: | Carrying Value (1) | Estimated Fair Value | Fair Value Measurement Using: | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | |||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | $ | 6,481 | $ | 6,744 | $ | 0 | $ | 0 | $ | 6,744 | $ | 0 | ||||||||||||||||||||||||||
Policy loans | 1,254 | 1,254 | 0 | 1,254 | 0 | 0 | ||||||||||||||||||||||||||||||||
Funds withheld at interest | 6,825 | 7,169 | 0 | 0 | 7,169 | 0 | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | 2,087 | 2,087 | 2,087 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Short-term investments | 18 | 18 | 18 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Other invested assets | 1,133 | 1,141 | 6 | 84 | 1,051 | 0 | ||||||||||||||||||||||||||||||||
Accrued investment income | 525 | 525 | 0 | 525 | 0 | 0 | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest-sensitive contract liabilities | $ | 21,274 | $ | 22,983 | $ | 0 | $ | 0 | $ | 22,983 | $ | 0 | ||||||||||||||||||||||||||
Long-term debt | 3,173 | 3,455 | 0 | 0 | 3,455 | 0 | ||||||||||||||||||||||||||||||||
Collateral finance and securitization notes | 323 | 292 | 0 | 0 | 292 | 0 | ||||||||||||||||||||||||||||||||
December 31, 2020: | Carrying Value (1) | Estimated Fair Value | Fair Value Measurement Using: | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | |||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||
Mortgage loans on real estate | $ | 5,787 | $ | 6,167 | $ | 0 | $ | 0 | $ | 6,167 | $ | 0 | ||||||||||||||||||||||||||
Policy loans | 1,258 | 1,258 | 0 | 1,258 | 0 | 0 | ||||||||||||||||||||||||||||||||
Funds withheld at interest | 5,292 | 5,676 | 0 | 0 | 5,676 | 0 | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | 1,930 | 1,930 | 1,930 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Short-term investments | 30 | 30 | 30 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Other invested assets | 1,482 | 1,601 | 5 | 89 | 1,018 | 489 | ||||||||||||||||||||||||||||||||
Accrued investment income | 511 | 511 | 0 | 511 | 0 | 0 | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest-sensitive contract liabilities | $ | 18,106 | $ | 19,683 | $ | 0 | $ | 0 | $ | 19,683 | $ | 0 | ||||||||||||||||||||||||||
Long-term debt | 3,573 | 3,901 | 0 | 0 | 3,901 | 0 | ||||||||||||||||||||||||||||||||
Collateral finance and securitization notes | 388 | 351 | 0 | 0 | 351 | 0 |
June 30, 2020: | Carrying Value (1) | Estimated Fair Value | Fair Value Measurement Using: | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Mortgage loans on real estate | $ | 5,974 | $ | 6,225 | $ | — | $ | — | $ | 6,225 | $ | — | ||||||||||||
Policy loans | 1,310 | 1,310 | — | 1,310 | — | — | ||||||||||||||||||
Funds withheld at interest | 5,344 | 5,605 | — | — | 5,605 | — | ||||||||||||||||||
Cash and cash equivalents | 1,368 | 1,368 | 1,368 | — | — | — | ||||||||||||||||||
Short-term investments | 49 | 49 | 49 | — | — | — | ||||||||||||||||||
Other invested assets | 1,300 | 1,385 | 4 | 91 | 896 | 394 | ||||||||||||||||||
Accrued investment income | 494 | 494 | — | 494 | — | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest-sensitive contract liabilities | $ | 17,945 | $ | 18,659 | $ | — | $ | — | $ | 18,659 | $ | — | ||||||||||||
Long-term debt | 3,573 | 3,661 | — | — | 3,661 | — | ||||||||||||||||||
Collateral finance and securitization notes | 433 | 391 | — | — | 391 | — | ||||||||||||||||||
December 31, 2019: | Carrying Value (1) | Estimated Fair Value | Fair Value Measurement Using: | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Mortgage loans on real estate | $ | 5,706 | $ | 5,935 | $ | — | $ | — | $ | 5,935 | $ | — | ||||||||||||
Policy loans | 1,319 | 1,319 | — | 1,319 | — | — | ||||||||||||||||||
Funds withheld at interest | 5,526 | 5,870 | — | — | 5,870 | — | ||||||||||||||||||
Cash and cash equivalents | 1,175 | 1,175 | 1,175 | — | — | — | ||||||||||||||||||
Short-term investments | 32 | 32 | 32 | — | — | — | ||||||||||||||||||
Other invested assets | 1,259 | 1,278 | 5 | 68 | 803 | 402 | ||||||||||||||||||
Accrued investment income | 493 | 493 | — | 493 | — | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest-sensitive contract liabilities | $ | 19,163 | $ | 21,542 | $ | — | $ | — | $ | 21,542 | $ | — | ||||||||||||
Long-term debt | 2,981 | 3,179 | — | — | 3,179 | — | ||||||||||||||||||
Collateral finance and securitization notes | 598 | 551 | — | — | 551 | — |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
Revenues: | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
U.S. and Latin America: | ||||||||||||||||||||||||||
Traditional | $ | 1,816 | $ | 1,642 | $ | 3,453 | $ | 3,175 | ||||||||||||||||||
Financial Solutions | 433 | 323 | 751 | 462 | ||||||||||||||||||||||
Total | 2,249 | 1,965 | 4,204 | 3,637 | ||||||||||||||||||||||
Canada: | ||||||||||||||||||||||||||
Traditional | 366 | 311 | 709 | 607 | ||||||||||||||||||||||
Financial Solutions | 26 | 22 | 52 | 46 | ||||||||||||||||||||||
Total | 392 | 333 | 761 | 653 | ||||||||||||||||||||||
Europe, Middle East and Africa: | ||||||||||||||||||||||||||
Traditional | 459 | 371 | 916 | 778 | ||||||||||||||||||||||
Financial Solutions | 139 | 136 | 285 | 214 | ||||||||||||||||||||||
Total | 598 | 507 | 1,201 | 992 | ||||||||||||||||||||||
Asia Pacific: | ||||||||||||||||||||||||||
Traditional | 653 | 636 | 1,300 | 1,303 | ||||||||||||||||||||||
Financial Solutions | 104 | 75 | 208 | 143 | ||||||||||||||||||||||
Total | 757 | 711 | 1,508 | 1,446 | ||||||||||||||||||||||
Corporate and Other | 141 | 90 | 582 | 82 | ||||||||||||||||||||||
Total | $ | 4,137 | $ | 3,606 | $ | 8,256 | $ | 6,810 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Revenues: | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes: | Income (loss) before income taxes: | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||
U.S. and Latin America: | U.S. and Latin America: | |||||||||||||||||||||||||||||||||||||||||
Traditional | $ | 1,642 | $ | 1,584 | $ | 3,175 | $ | 3,125 | Traditional | $ | 135 | $ | (158) | $ | (203) | $ | (220) | |||||||||||||||||||||||||
Financial Solutions | 323 | 302 | 462 | 556 | Financial Solutions | 186 | 117 | 269 | 102 | |||||||||||||||||||||||||||||||||
Total | 1,965 | 1,886 | 3,637 | 3,681 | Total | 321 | (41) | 66 | (118) | |||||||||||||||||||||||||||||||||
Canada: | Canada: | |||||||||||||||||||||||||||||||||||||||||
Traditional | 311 | 318 | 607 | 630 | Traditional | 32 | 44 | 56 | 67 | |||||||||||||||||||||||||||||||||
Financial Solutions | 22 | 24 | 46 | 48 | Financial Solutions | 4 | 4 | 10 | 7 | |||||||||||||||||||||||||||||||||
Total | 333 | 342 | 653 | 678 | Total | 36 | 48 | 66 | 74 | |||||||||||||||||||||||||||||||||
Europe, Middle East and Africa: | Europe, Middle East and Africa: | |||||||||||||||||||||||||||||||||||||||||
Traditional | 371 | 370 | 778 | 754 | Traditional | (12) | 16 | (80) | 33 | |||||||||||||||||||||||||||||||||
Financial Solutions | 136 | 114 | 214 | 223 | Financial Solutions | 83 | 98 | 143 | 128 | |||||||||||||||||||||||||||||||||
Total | 507 | 484 | 992 | 977 | Total | 71 | 114 | 63 | 161 | |||||||||||||||||||||||||||||||||
Asia Pacific: | Asia Pacific: | |||||||||||||||||||||||||||||||||||||||||
Traditional | 636 | 634 | 1,303 | 1,307 | Traditional | (12) | 47 | 29 | 71 | |||||||||||||||||||||||||||||||||
Financial Solutions | 75 | 59 | 143 | 114 | Financial Solutions | 31 | 26 | 59 | 1 | |||||||||||||||||||||||||||||||||
Total | 711 | 693 | 1,446 | 1,421 | Total | 19 | 73 | 88 | 72 | |||||||||||||||||||||||||||||||||
Corporate and Other | 90 | 62 | 82 | 130 | Corporate and Other | 35 | 1 | 385 | (90) | |||||||||||||||||||||||||||||||||
Total | $ | 3,606 | $ | 3,467 | $ | 6,810 | $ | 6,887 | Total | $ | 482 | $ | 195 | $ | 668 | $ | 99 |
Assets: | June 30, 2021 | December 31, 2020 | ||||||||||||
U.S. and Latin America: | ||||||||||||||
Traditional | $ | 20,760 | $ | 20,071 | ||||||||||
Financial Solutions | 29,272 | 25,433 | ||||||||||||
Total | 50,032 | 45,504 | ||||||||||||
Canada: | ||||||||||||||
Traditional | 5,017 | 4,682 | ||||||||||||
Financial Solutions | 8 | 13 | ||||||||||||
Total | 5,025 | 4,695 | ||||||||||||
Europe, Middle East and Africa: | ||||||||||||||
Traditional | 5,058 | 4,763 | ||||||||||||
Financial Solutions | 6,419 | 7,292 | ||||||||||||
Total | 11,477 | 12,055 | ||||||||||||
Asia Pacific: | ||||||||||||||
Traditional | 8,664 | 8,197 | ||||||||||||
Financial Solutions | 6,814 | 4,299 | ||||||||||||
Total | 15,478 | 12,496 | ||||||||||||
Corporate and Other | 6,932 | 9,906 | ||||||||||||
Total | $ | 88,944 | $ | 84,656 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
Income (loss) before income taxes: | 2020 | 2019 | 2020 | 2019 | ||||||||||||
U.S. and Latin America: | ||||||||||||||||
Traditional | $ | (158 | ) | $ | 55 | $ | (220 | ) | $ | 67 | ||||||
Financial Solutions | 117 | 92 | 102 | 175 | ||||||||||||
Total | (41 | ) | 147 | (118 | ) | 242 | ||||||||||
Canada: | ||||||||||||||||
Traditional | 44 | 46 | 67 | 97 | ||||||||||||
Financial Solutions | 4 | 4 | 7 | 5 | ||||||||||||
Total | 48 | 50 | 74 | 102 | ||||||||||||
Europe, Middle East and Africa: | ||||||||||||||||
Traditional | 16 | 16 | 33 | 32 | ||||||||||||
Financial Solutions | 98 | 52 | 128 | 90 | ||||||||||||
Total | 114 | 68 | 161 | 122 | ||||||||||||
Asia Pacific: | ||||||||||||||||
Traditional | 47 | 34 | 71 | 71 | ||||||||||||
Financial Solutions | 26 | 2 | 1 | 8 | ||||||||||||
Total | 73 | 36 | 72 | 79 | ||||||||||||
Corporate and Other | 1 | (41 | ) | (90 | ) | (68 | ) | |||||||||
Total | $ | 195 | $ | 260 | $ | 99 | $ | 477 |
Assets: | June 30, 2020 | December 31, 2019 | ||||||
U.S. and Latin America: | ||||||||
Traditional | $ | 19,867 | $ | 19,353 | ||||
Financial Solutions | 24,832 | 25,117 | ||||||
Total | 44,699 | 44,470 | ||||||
Canada: | ||||||||
Traditional | 4,282 | 4,361 | ||||||
Financial Solutions | 19 | 64 | ||||||
Total | 4,301 | 4,425 | ||||||
Europe, Middle East and Africa: | ||||||||
Traditional | 4,087 | 4,032 | ||||||
Financial Solutions | 6,449 | 6,502 | ||||||
Total | 10,536 | 10,534 | ||||||
Asia Pacific: | ||||||||
Traditional | 7,559 | 6,800 | ||||||
Financial Solutions | 3,829 | 2,557 | ||||||
Total | 11,388 | 9,357 | ||||||
Corporate and Other | 9,805 | 7,945 | ||||||
Total | $ | 80,729 | $ | 76,731 |
June 30, 2020 | December 31, 2019 | ||||||
Limited partnership interests and joint ventures | $ | 656 | $ | 685 | |||
Commercial mortgage loans | 70 | 243 | |||||
Bank loans and private placements | 141 | 181 | |||||
Lifetime mortgages | 69 | 87 |
June 30, 2021 | December 31, 2020 | ||||||||||
Limited partnership interests and joint ventures | $ | 867 | $ | 678 | |||||||
Mortgage loans on real estate | 175 | 199 | |||||||||
Bank loans and private placements | 541 | 194 | |||||||||
Lifetime mortgages | 46 | 43 |
Commitment Period: | Maximum Potential Obligation | |
2035 | 2,627 | |
2036 | 3,408 | |
2037 | 2,850 | |
2038 | 2,300 | |
2039 | 11,350 |
Commitment Period: | Maximum Potential Obligation | ||||
2034 | $ | 1,243 | |||
2035 | 2,444 | ||||
2036 | 3,599 | ||||
2037 | 2,850 | ||||
2038 | 2,300 | ||||
2039 | 11,350 | ||||
2046 | 3,000 |
June 30, 2021 | December 31, 2020 | ||||||||||
Treaty guarantees | $ | 2,104 | $ | 1,934 | |||||||
Treaty guarantees, net of assets in trust | 1,133 | 961 | |||||||||
Securities borrowing and repurchase arrangements | 136 | 133 | |||||||||
June 30, 2020 | December 31, 2019 | ||||||
Treaty guarantees | $ | 1,719 | $ | 1,821 | |||
Treaty guarantees, net of assets in trust | 829 | 891 | |||||
Securities borrowing and repurchase arrangements | 271 | 275 | |||||
Financing arrangements | 24 | 42 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Tax provision at U.S. statutory rate | $ | 41 | $ | 55 | $ | 21 | $ | 100 | ||||||||
Increase (decrease) in income taxes resulting from: | ||||||||||||||||
Tax rate differences on income in other jurisdictions | 8 | 1 | 13 | 1 | ||||||||||||
Differences in tax bases in foreign jurisdictions | (17 | ) | (6 | ) | (13 | ) | (21 | ) | ||||||||
Deferred tax valuation allowance | 8 | 5 | 3 | 23 | ||||||||||||
Amounts related to uncertain tax positions | 1 | 2 | 7 | 3 | ||||||||||||
Corporate rate changes | — | — | — | (2 | ) | |||||||||||
Equity based compensation | 1 | (4 | ) | — | (5 | ) | ||||||||||
Return to provision adjustments | (2 | ) | 3 | (1 | ) | 4 | ||||||||||
Accrued Expenses | (4 | ) | 1 | (1 | ) | 1 | ||||||||||
Other, net | 1 | 1 | — | 1 | ||||||||||||
Total provision for income taxes | $ | 37 | $ | 58 | $ | 29 | $ | 105 | ||||||||
Effective tax rate | 18.9 | % | 22.1 | % | 28.6 | % | 21.9 | % |
Pension Benefits | Other Benefits | |||||||||||||||
Three months ended June 30, | Three months ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Service cost | $ | 4 | $ | 3 | $ | 1 | $ | 1 | ||||||||
Interest cost | 1 | 2 | 1 | 1 | ||||||||||||
Expected return on plan assets | (3 | ) | (1 | ) | — | — | ||||||||||
Amortization of prior service cost (credit) | — | — | (1 | ) | (1 | ) | ||||||||||
Amortization of prior actuarial losses | 1 | 1 | 1 | — | ||||||||||||
Net periodic benefit cost | $ | 3 | $ | 5 | $ | 2 | $ | 1 |
Pension Benefits | Other Benefits | |||||||||||||||||||||||||
Three months ended June 30, | Three months ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Service cost | $ | 5 | $ | 4 | $ | 1 | $ | 1 | ||||||||||||||||||
Interest cost | 1 | 1 | 1 | 1 | ||||||||||||||||||||||
Expected return on plan assets | (3) | (3) | 0 | 0 | ||||||||||||||||||||||
Amortization of prior service cost (credit) | 0 | 0 | (1) | (1) | ||||||||||||||||||||||
Amortization of prior actuarial losses | 2 | 1 | 1 | 1 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 5 | $ | 3 | $ | 2 | $ | 2 |
Pension Benefits | Other Benefits | |||||||||||||||
Six months ended June 30, | Six months ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Service cost | $ | 7 | $ | 6 | $ | 1 | $ | 2 | ||||||||
Interest cost | 3 | 3 | 2 | 1 | ||||||||||||
Expected return on plan assets | (5 | ) | (3 | ) | — | — | ||||||||||
Amortization of prior service cost (credit) | — | — | (1 | ) | (1 | ) | ||||||||||
Amortization of prior actuarial losses | 2 | 2 | 1 | 1 | ||||||||||||
Net periodic benefit cost | $ | 7 | $ | 8 | $ | 3 | $ | 3 |
Pension Benefits | Other Benefits | |||||||||||||||||||||||||
Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Service cost | $ | 9 | $ | 7 | $ | 2 | $ | 1 | ||||||||||||||||||
Interest cost | 2 | 3 | 1 | 2 | ||||||||||||||||||||||
Expected return on plan assets | (5) | (5) | 0 | 0 | ||||||||||||||||||||||
Amortization of prior service cost (credit) | 0 | 0 | (1) | (1) | ||||||||||||||||||||||
Amortization of prior actuarial losses | 3 | 2 | 1 | 1 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 9 | $ | 7 | $ | 3 | $ | 3 |
June 30, 2020 | December 31, 2019 | |||||||||||||||
Reinsurer | A.M. Best Rating | Amount | % of Total | Amount | % of Total | |||||||||||
Reinsurer A | A+ | $ | 400 | 42.3 | % | $ | 367 | 40.6 | % | |||||||
Reinsurer B | A+ | 201 | 21.3 | 208 | 23.0 | |||||||||||
Reinsurer C | A | 70 | 7.4 | 84 | 9.3 | |||||||||||
Reinsurer D | A++ | 49 | 5.2 | 53 | 5.9 | |||||||||||
Reinsurer E | A+ | 46 | 4.9 | 43 | 4.8 | |||||||||||
Other reinsurers | 179 | 18.9 | 149 | 16.4 | ||||||||||||
Total | $ | 945 | 100.0 | % | $ | 904 | 100.0 | % |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
Reinsurer | A.M. Best Rating | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||
Reinsurer A | A+ | $ | 476 | 43.5 | % | $ | 420 | 42.7 | % | |||||||||||||||||||||||
Reinsurer B | A+ | 225 | 20.6 | 216 | 22.0 | |||||||||||||||||||||||||||
Reinsurer C | A | 67 | 6.1 | 64 | 6.5 | |||||||||||||||||||||||||||
Reinsurer D | A++ | 66 | 6.0 | 55 | 5.6 | |||||||||||||||||||||||||||
Reinsurer E | A+ | 50 | 4.6 | 46 | 4.7 | |||||||||||||||||||||||||||
Other reinsurers | 209 | 19.2 | 182 | 18.5 | ||||||||||||||||||||||||||||
Total | $ | 1,093 | 100.0 | % | $ | 983 | 100.0 | % |
Six months ended June 30, | ||||||||
2020 | 2019 | |||||||
Balance at beginning of year | $ | 6,786 | $ | 6,585 | ||||
Less: reinsurance recoverable | (564 | ) | (433 | ) | ||||
Net balance at beginning of year | 6,222 | 6,152 | ||||||
Incurred: | ||||||||
Current year | 5,740 | 5,457 | ||||||
Prior years | 59 | 58 | ||||||
Total incurred | 5,799 | 5,515 | ||||||
Payments: | ||||||||
Current year | (1,332 | ) | (1,063 | ) | ||||
Prior years | (3,903 | ) | (3,979 | ) | ||||
Total payments | (5,235 | ) | (5,042 | ) | ||||
Other changes: | ||||||||
Interest accretion | 18 | 13 | ||||||
Foreign exchange adjustments | (142 | ) | 3 | |||||
Total other changes | (124 | ) | 16 | |||||
Net balance at end the period | 6,662 | 6,641 | ||||||
Plus: reinsurance recoverable | 633 | 525 | ||||||
Balance at end of the period | $ | 7,295 | $ | 7,166 |
Six Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Balance, beginning of period | $ | 7,556 | $ | 6,786 | ||||||||||
Less: reinsurance recoverable | (641) | (564) | ||||||||||||
Net balance, beginning of period | 6,915 | 6,222 | ||||||||||||
Incurred: | ||||||||||||||
Current year | 7,631 | 5,740 | ||||||||||||
Prior years | (122) | 59 | ||||||||||||
Total incurred | 7,509 | 5,799 | ||||||||||||
Payments: | ||||||||||||||
Current year | (2,747) | (1,332) | ||||||||||||
Prior years | (4,358) | (3,903) | ||||||||||||
Total payments | (7,105) | (5,235) | ||||||||||||
Other changes: | ||||||||||||||
Interest accretion | 20 | 18 | ||||||||||||
Foreign exchange adjustments | (38) | (142) | ||||||||||||
Total other changes | (18) | (124) | ||||||||||||
Net balance, end of period | 7,302 | 6,662 | ||||||||||||
Plus: reinsurance recoverable | 674 | 633 | ||||||||||||
Balance, end of period | $ | 7,976 | $ | 7,295 |
Description | Date of Adoption | Effect on the Consolidated Financial Statements | ||||||
Standards adopted: | ||||||||
Financial Instruments – Credit Losses This guidance adds to U.S. GAAP an impairment model, known as current expected credit loss (“CECL”) model, that is based on expected losses rather than incurred losses. For traditional and other receivables, held-to-maturity debt securities, loans and other instruments entities will be required to use the new forward-looking “expected loss” model that generally will result in earlier recognition of allowance for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses similar to what they do today, except the losses will be recognized through an allowance for credit losses and adjusted each period for changes in credit risks. Early adoption is permitted. | January 1, 2020 | For asset classes within the scope of the CECL model, this guidance was adopted through a cumulative-effect adjustment to retained earnings (that is, a modified-retrospective approach). For available-for-sale debt securities, this guidance was applied prospectively. The allowance for credit losses increased when this guidance was adopted to include expected losses over the lifetime of commercial mortgages and other loans, including reasonable and supportable forecasts and expected changes in future economic conditions. The overall impact was an approximate $15 million pre-tax increase in the allowance for credit losses. This increase was reflected as a decrease to opening retained earnings, net of income taxes, as of January 1, 2020. | ||||||
Fair Value Measurement This guidance is part of the FASB’s disclosure framework project and eliminates certain disclosure requirements for fair value measurement, requires entities to disclose new information and modifies existing disclosure requirements. Early adoption is permitted. | January 1, 2020 | Certain disclosure changes in the new guidance were applied prospectively in the year of adoption. The remaining changes in the new guidance were applied retrospectively to all periods presented in the year of adoption. As of December 31, 2019, the Company early adopted the guidance that removed the requirements relating to transfers between fair value hierarchy levels and certain disclosures about valuation processes for Level 3 fair value measurements. The Company adopted the remainder of the guidance on January 1, 2020. The adoption of the new guidance was not material to the Company’s financial position. | ||||||
Reference Rate Reform This | January 1, 2020 |
Description | Anticipated Date of Adoption | Effect on the Consolidated Financial Statements | ||||||
Standards not yet adopted: | ||||||||
Financial Services – Insurance This guidance significantly changes how insurers account for long-duration insurance contracts. The new guidance also significantly expands the disclosure requirements of long-duration insurance contracts. The new guidance is | January 1, 2023 | See each significant area of change below for the method of adoption and expected impact to the Company’s results of operations and financial position. | ||||||
Cash flow assumptions for measuring liability for future policy benefits The new guidance requires insurers to review, and if necessary, update the cash flow assumptions used to measure liabilities for future policy benefits periodically. The change in the liability estimate as a result of updating cash flow assumptions will be recognized in net income. | Cash flow assumptions for measuring liability for future policy benefits The Company will likely adopt this guidance on a modified retrospective basis as of the earliest period presented in the year of adoption. The Company is currently evaluating the impact of this amendment on its results of operations and financial position but anticipates the updated guidance will likely have a material impact. | |||||||
Discount rate assumption for measuring liability for future policy benefits The new guidance requires insurers to update the discount rate assumption used to measure liabilities for future policy benefits at each reporting period, and the discount rate utilized must be based on an upper-medium grade fixed income instrument yield. The change in the liability estimate as a result of updating the discount rate assumption will be recognized in other comprehensive income. | Discount rate assumption for measuring liability for future policy benefits The Company will likely adopt this guidance on a modified retrospective basis as of the earliest period presented in the year of adoption. The Company is currently evaluating the impact of this amendment on its results of operations and financial position but anticipates the updated guidance will likely have a material impact. | |||||||
Market risk benefits The new guidance created a new category of benefit features called market risk benefits that will be measured at fair value with changes in fair value attributable to a change in the instrument-specific credit risk recognized in other comprehensive income. | Market risk benefits The Company will adopt this guidance on a retrospective basis as of the earliest period presented in the year of adoption. The Company is currently evaluating the impact of this amendment on its results of operations and financial position but anticipates the updated guidance will likely have a material impact. | |||||||
Amortization of deferred acquisition costs (“DAC”) and other balancesThe new guidance requires DAC and other balances to be amortized on a constant level basis over the expected term of the related contracts. | Amortization of deferred acquisition costs (“DAC”) and other balances The Company will likely adopt this guidance on a modified retrospective basis as of the earliest period presented in the year of adoption. The Company is currently evaluating the impact of this amendment on its results of operations and financial position but anticipates the updated guidance will likely have a material impact. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues: | (Dollars in millions, except per share data) | |||||||||||||||
Net premiums | $ | 2,790 | $ | 2,764 | $ | 5,609 | $ | 5,502 | ||||||||
Investment income, net of related expenses | 645 | 584 | 1,239 | 1,164 | ||||||||||||
Investment related gains (losses), net: | ||||||||||||||||
Impairments and change in allowance for credit losses on fixed maturity securities | — | — | (34 | ) | (9 | ) | ||||||||||
Other investment related gains (losses), net | 81 | 12 | (170 | ) | 29 | |||||||||||
Investment related gains (losses), net | 81 | 12 | (204 | ) | 20 | |||||||||||
Other revenues | 90 | 107 | 166 | 201 | ||||||||||||
Total revenues | 3,606 | 3,467 | 6,810 | 6,887 | ||||||||||||
Benefits and Expenses: | ||||||||||||||||
Claims and other policy benefits | 2,700 | 2,516 | 5,364 | 5,024 | ||||||||||||
Interest credited | 187 | 158 | 333 | 291 | ||||||||||||
Policy acquisition costs and other insurance expenses | 290 | 260 | 538 | 572 | ||||||||||||
Other operating expenses | 188 | 222 | 383 | 424 | ||||||||||||
Interest expense | 42 | 43 | 83 | 83 | ||||||||||||
Collateral finance and securitization expense | 4 | 8 | 10 | 16 | ||||||||||||
Total benefits and expenses | 3,411 | 3,207 | 6,711 | 6,410 | ||||||||||||
Income before income taxes | 195 | 260 | 99 | 477 | ||||||||||||
Provision for income taxes | 37 | 58 | 29 | 105 | ||||||||||||
Net income | $ | 158 | $ | 202 | $ | 70 | $ | 372 | ||||||||
Earnings per share: | ||||||||||||||||
Basic earnings per share | $ | 2.49 | $ | 3.23 | $ | 1.12 | $ | 5.93 | ||||||||
Diluted earnings per share | $ | 2.48 | $ | 3.18 | $ | 1.11 | $ | 5.83 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||||||
Revenues: | (Dollars in millions, except per share data) | |||||||||||||||||||||||||||||||||||||
Net premiums | $ | 3,098 | $ | 2,790 | $ | 308 | $ | 6,012 | $ | 5,609 | $ | 403 | ||||||||||||||||||||||||||
Investment income, net of related expenses | 759 | 645 | 114 | 1,571 | 1,239 | 332 | ||||||||||||||||||||||||||||||||
Investment related gains (losses), net | 112 | 81 | 31 | 414 | (204) | 618 | ||||||||||||||||||||||||||||||||
Other revenues | 168 | 90 | 78 | 259 | 166 | 93 | ||||||||||||||||||||||||||||||||
Total revenues | 4,137 | 3,606 | 531 | 8,256 | 6,810 | 1,446 | ||||||||||||||||||||||||||||||||
Benefits and Expenses: | ||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 2,813 | 2,700 | 113 | 6,005 | 5,364 | 641 | ||||||||||||||||||||||||||||||||
Interest credited | 218 | 187 | 31 | 364 | 333 | 31 | ||||||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 339 | 290 | 49 | 672 | 538 | 134 | ||||||||||||||||||||||||||||||||
Other operating expenses | 240 | 188 | 52 | 454 | 383 | 71 | ||||||||||||||||||||||||||||||||
Interest expense | 43 | 42 | 1 | 88 | 83 | 5 | ||||||||||||||||||||||||||||||||
Collateral finance and securitization expense | 2 | 4 | (2) | 5 | 10 | (5) | ||||||||||||||||||||||||||||||||
Total benefits and expenses | 3,655 | 3,411 | 244 | 7,588 | 6,711 | 877 | ||||||||||||||||||||||||||||||||
Income before income taxes | 482 | 195 | 287 | 668 | 99 | 569 | ||||||||||||||||||||||||||||||||
Provision for income taxes | 138 | 37 | 101 | 185 | 29 | 156 | ||||||||||||||||||||||||||||||||
Net income | $ | 344 | $ | 158 | $ | 186 | $ | 483 | $ | 70 | $ | 413 | ||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 5.06 | $ | 2.49 | $ | 2.57 | $ | 7.11 | $ | 1.12 | $ | 5.99 | ||||||||||||||||||||||||||
Diluted earnings per share | $ | 5.02 | $ | 2.48 | $ | 2.54 | $ | 7.06 | $ | 1.11 | $ | 5.95 | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | ||||||||||||||||||||||||||||||
Modco/Funds withheld: | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) | $ | 16 | $ | 1 | $ | 15 | $ | 66 | $ | (229) | $ | 295 | |||||||||||||||||||||||
Deferred acquisition costs/retrocession | (7) | 2 | (9) | (23) | 115 | (138) | |||||||||||||||||||||||||||||
Net effect | 9 | 3 | 6 | 43 | (114) | 157 | |||||||||||||||||||||||||||||
EIAs: | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) | 3 | (7) | 10 | 33 | (19) | 52 | |||||||||||||||||||||||||||||
Deferred acquisition costs/retrocession | (1) | 2 | (3) | (17) | 10 | (27) | |||||||||||||||||||||||||||||
Net effect | 2 | (5) | 7 | 16 | (9) | 25 | |||||||||||||||||||||||||||||
Guaranteed minimum benefit riders: | |||||||||||||||||||||||||||||||||||
Unrealized gains (losses) | (16) | 107 | (123) | 1 | (21) | 22 | |||||||||||||||||||||||||||||
Related freestanding derivatives, net of deferred acquisition costs/retrocession | 20 | (70) | 90 | (33) | 94 | (127) | |||||||||||||||||||||||||||||
Net effect | 4 | 37 | (33) | (32) | 73 | (105) | |||||||||||||||||||||||||||||
Total net effect after freestanding derivatives | $ | 15 | $ | 35 | $ | (20) | $ | 27 | $ | (50) | $ | 77 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Modco/Funds withheld: | |||||||||||||||
Unrealized gains (losses) | $ | 1 | $ | 5 | $ | (229 | ) | $ | 3 | ||||||
Deferred acquisition costs/retrocession | 2 | (5 | ) | 115 | (8 | ) | |||||||||
Net effect | 3 | — | (114 | ) | (5 | ) | |||||||||
EIAs: | |||||||||||||||
Unrealized gains (losses) | (7 | ) | (19 | ) | (19 | ) | (20 | ) | |||||||
Deferred acquisition costs/retrocession | 2 | 10 | 10 | 10 | |||||||||||
Net effect | (5 | ) | (9 | ) | (9 | ) | (10 | ) | |||||||
Guaranteed minimum benefit riders: | |||||||||||||||
Unrealized gains (losses) | 107 | (18 | ) | (21 | ) | — | |||||||||
Related freestanding derivatives, net of deferred acquisition costs/retrocession | (70 | ) | 21 | 94 | 2 | ||||||||||
Net effect | 37 | 3 | 73 | 2 | |||||||||||
Total net effect after freestanding derivatives | $ | 35 | $ | (6 | ) | $ | (50 | ) | $ | (13 | ) |
For the three months ended June 30, 2020: | Financial Solutions | |||||||||||||||
(dollars in millions) | Asset-Intensive | Capital Solutions | Total U.S. and Latin America | |||||||||||||
Traditional | ||||||||||||||||
Revenues: | ||||||||||||||||
Net premiums | $ | 1,454 | $ | 15 | $ | — | $ | 1,469 | ||||||||
Investment income, net of related expenses | 177 | 241 | 2 | 420 | ||||||||||||
Investment related gains (losses), net | 7 | 15 | — | 22 | ||||||||||||
Other revenues | 4 | 24 | 26 | 54 | ||||||||||||
Total revenues | 1,642 | 295 | 28 | 1,965 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Claims and other policy benefits | 1,558 | 49 | — | 1,607 | ||||||||||||
Interest credited | 18 | 139 | — | 157 | ||||||||||||
Policy acquisition costs and other insurance expenses | 195 | 7 | 2 | 204 | ||||||||||||
Other operating expenses | 29 | 7 | 2 | 38 | ||||||||||||
Total benefits and expenses | 1,800 | 202 | 4 | 2,006 | ||||||||||||
Income before income taxes | $ | (158 | ) | $ | 93 | $ | 24 | $ | (41 | ) | ||||||
For the three months ended June 30, 2019: | Financial Solutions | |||||||||||||||
(dollars in millions) | Asset-Intensive | Capital Solutions | Total U.S. and Latin America | |||||||||||||
Traditional | ||||||||||||||||
Revenues: | ||||||||||||||||
Net premiums | $ | 1,410 | $ | 9 | $ | — | $ | 1,419 | ||||||||
Investment income, net of related expenses | 173 | 204 | 1 | 378 | ||||||||||||
Investment related gains (losses), net | (4 | ) | 17 | — | 13 | |||||||||||
Other revenues | 5 | 50 | 21 | 76 | ||||||||||||
Total revenues | 1,584 | 280 | 22 | 1,886 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Claims and other policy benefits | 1,293 | 49 | — | 1,342 | ||||||||||||
Interest credited | 19 | 124 | — | 143 | ||||||||||||
Policy acquisition costs and other insurance expenses | 180 | 25 | (1 | ) | 204 | |||||||||||
Other operating expenses | 37 | 10 | 3 | 50 | ||||||||||||
Total benefits and expenses | 1,529 | 208 | 2 | 1,739 | ||||||||||||
Income before income taxes | $ | 55 | $ | 72 | $ | 20 | $ | 147 |
For the six months ended June 30, 2020: | Financial Solutions | |||||||||||||||
(dollars in millions) | Asset-Intensive | Capital Solutions | Total U.S. and Latin America | |||||||||||||
Traditional | ||||||||||||||||
Revenues: | ||||||||||||||||
Net premiums | $ | 2,827 | $ | 27 | $ | — | $ | 2,854 | ||||||||
Investment income, net of related expenses | 338 | 474 | 3 | 815 | ||||||||||||
Investment related gains (losses), net | — | (145 | ) | — | (145 | ) | ||||||||||
Other revenues | 10 | 52 | 51 | 113 | ||||||||||||
Total revenues | 3,175 | 408 | 54 | 3,637 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Claims and other policy benefits | 2,925 | 102 | — | 3,027 | ||||||||||||
Interest credited | 37 | 268 | — | 305 | ||||||||||||
Policy acquisition costs and other insurance expenses | 370 | (31 | ) | 2 | 341 | |||||||||||
Other operating expenses | 63 | 14 | 5 | 82 | ||||||||||||
Total benefits and expenses | 3,395 | 353 | 7 | 3,755 | ||||||||||||
Income before income taxes | $ | (220 | ) | $ | 55 | $ | 47 | $ | (118 | ) | ||||||
For the six months ended June 30, 2019: | Financial Solutions | |||||||||||||||
(dollars in millions) | Asset-Intensive | Capital Solutions | Total U.S. and Latin America | |||||||||||||
Traditional | ||||||||||||||||
Revenues: | ||||||||||||||||
Net premiums | $ | 2,767 | $ | 16 | $ | — | $ | 2,783 | ||||||||
Investment income, net of related expenses | 359 | 401 | 2 | 762 | ||||||||||||
Investment related gains (losses), net | (10 | ) | 18 | — | 8 | |||||||||||
Other revenues | 9 | 73 | 46 | 128 | ||||||||||||
Total revenues | 3,125 | 508 | 48 | 3,681 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Claims and other policy benefits | 2,593 | 97 | — | 2,690 | ||||||||||||
Interest credited | 39 | 213 | — | 252 | ||||||||||||
Policy acquisition costs and other insurance expenses | 356 | 44 | 5 | 405 | ||||||||||||
Other operating expenses | 70 | 17 | 5 | 92 | ||||||||||||
Total benefits and expenses | 3,058 | 371 | 10 | 3,439 | ||||||||||||
Income before income taxes | $ | 67 | $ | 137 | $ | 38 | $ | 242 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 1,593 | $ | 1,469 | $ | 124 | $ | 3,025 | $ | 2,854 | $ | 171 | |||||||||||||||||||||||
Investment income, net of related expenses | 509 | 420 | 89 | 974 | 815 | 159 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 31 | 22 | 9 | 31 | (145) | 176 | |||||||||||||||||||||||||||||
Other revenues | 116 | 54 | 62 | 174 | 113 | 61 | |||||||||||||||||||||||||||||
Total revenues | 2,249 | 1,965 | 284 | 4,204 | 3,637 | 567 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 1,439 | 1,607 | (168) | 3,239 | 3,027 | 212 | |||||||||||||||||||||||||||||
Interest credited | 200 | 157 | 43 | 331 | 305 | 26 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 238 | 204 | 34 | 469 | 341 | 128 | |||||||||||||||||||||||||||||
Other operating expenses | 51 | 38 | 13 | 99 | 82 | 17 | |||||||||||||||||||||||||||||
Total benefits and expenses | 1,928 | 2,006 | (78) | 4,138 | 3,755 | 383 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 321 | $ | (41) | $ | 362 | $ | 66 | $ | (118) | $ | 184 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 1,578 | $ | 1,454 | $ | 124 | $ | 2,997 | $ | 2,827 | $ | 170 | |||||||||||||||||||||||
Investment income, net of related expenses | 233 | 177 | 56 | 440 | 338 | 102 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 1 | 7 | (6) | 7 | — | 7 | |||||||||||||||||||||||||||||
Other revenues | 4 | 4 | — | 9 | 10 | (1) | |||||||||||||||||||||||||||||
Total revenues | 1,816 | 1,642 | 174 | 3,453 | 3,175 | 278 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 1,418 | 1,558 | (140) | 3,158 | 2,925 | 233 | |||||||||||||||||||||||||||||
Interest credited | 18 | 18 | — | 35 | 37 | (2) | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 206 | 195 | 11 | 388 | 370 | 18 | |||||||||||||||||||||||||||||
Other operating expenses | 39 | 29 | 10 | 75 | 63 | 12 | |||||||||||||||||||||||||||||
Total benefits and expenses | 1,681 | 1,800 | (119) | 3,656 | 3,395 | 261 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 135 | $ | (158) | $ | 293 | $ | (203) | $ | (220) | $ | 17 | |||||||||||||||||||||||
Key metrics: | |||||||||||||||||||||||||||||||||||
Life insurance in force | $1,619.4 billion | $1,620.5 billion | |||||||||||||||||||||||||||||||||
Claims and other policy benefits as a percentage of net premiums (“loss ratios”) | 89.9 | % | 107.2 | % | 105.4 | % | 103.5 | % | |||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses as a percentage of net premiums | 13.1 | % | 13.4 | % | 12.9 | % | 13.1 | % | |||||||||||||||||||||||||||
Other operating expenses as a percentage of net premiums | 2.5 | % | 2.0 | % | 2.5 | % | 2.2 | % |
For the three months ended June 30, | 2021 | 2020 | 2021 vs 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-Intensive | Capital Solutions | Total | Asset-Intensive | Capital Solutions | Total | Asset-Intensive | Capital Solutions | Total | |||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 15 | $ | — | $ | 15 | $ | 15 | $ | — | $ | 15 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | 276 | — | 276 | 241 | 2 | 243 | 35 | (2) | 33 | ||||||||||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | 30 | — | 30 | 15 | — | 15 | 15 | — | 15 | ||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 85 | 27 | 112 | 24 | 26 | 50 | 61 | 1 | 62 | ||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 406 | 27 | 433 | 295 | 28 | 323 | 111 | (1) | 110 | ||||||||||||||||||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 21 | — | 21 | 49 | — | 49 | (28) | — | (28) | ||||||||||||||||||||||||||||||||||||||||||||
Interest credited | 182 | — | 182 | 139 | — | 139 | 43 | — | 43 | ||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 32 | — | 32 | 7 | 2 | 9 | 25 | (2) | 23 | ||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses | 8 | 4 | 12 | 7 | 2 | 9 | 1 | 2 | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Total benefits and expenses | 243 | 4 | 247 | 202 | 4 | 206 | 41 | — | 41 | ||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 163 | $ | 23 | $ | 186 | $ | 93 | $ | 24 | $ | 117 | $ | 70 | $ | (1) | $ | 69 |
For the six months ended June 30, | 2021 | 2020 | 2021 vs 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-Intensive | Capital Solutions | Total | Asset-Intensive | Capital Solutions | Total | Asset-Intensive | Capital Solutions | Total | |||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums | $ | 28 | $ | — | $ | 28 | $ | 27 | $ | — | $ | 27 | $ | 1 | $ | — | $ | 1 | |||||||||||||||||||||||||||||||||||
Investment income, net of related expenses | 533 | 1 | 534 | 474 | 3 | 477 | 59 | (2) | 57 | ||||||||||||||||||||||||||||||||||||||||||||
Investment related gains (losses), net | 24 | — | 24 | (145) | — | (145) | 169 | — | 169 | ||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 111 | 54 | 165 | 52 | 51 | 103 | 59 | 3 | 62 | ||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 696 | 55 | 751 | 408 | 54 | 462 | 288 | 1 | 289 | ||||||||||||||||||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 81 | — | 81 | 102 | — | 102 | (21) | — | (21) | ||||||||||||||||||||||||||||||||||||||||||||
Interest credited | 296 | — | 296 | 268 | — | 268 | 28 | — | 28 | ||||||||||||||||||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 79 | 2 | 81 | (31) | 2 | (29) | 110 | — | 110 | ||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses | 17 | 7 | 24 | 14 | 5 | 19 | 3 | 2 | 5 | ||||||||||||||||||||||||||||||||||||||||||||
Total benefits and expenses | 473 | 9 | 482 | 353 | 7 | 360 | 120 | 2 | 122 | ||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 223 | $ | 46 | $ | 269 | $ | 55 | $ | 47 | $ | 102 | $ | 168 | $ | (1) | $ | 167 |
(dollars in millions) | Three months ended June 30, | Six months ended June 30, | (dollars in millions) | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 295 | $ | 280 | $ | 408 | $ | 508 | Total revenues | $ | 406 | $ | 295 | $ | 696 | $ | 408 | |||||||||||||||||||||||||
Less: | Less: | |||||||||||||||||||||||||||||||||||||||||
Embedded derivatives – modco/funds withheld treaties | (7 | ) | 9 | (230 | ) | 14 | Embedded derivatives – modco/funds withheld treaties | 14 | (7) | 59 | (230) | |||||||||||||||||||||||||||||||
Guaranteed minimum benefit riders and related free standing derivatives | 39 | 4 | 113 | 1 | Guaranteed minimum benefit riders and related free standing derivatives | — | 39 | (65) | 113 | |||||||||||||||||||||||||||||||||
Revenues before certain derivatives | 263 | 267 | 525 | 493 | Revenues before certain derivatives | 392 | 263 | 702 | 525 | |||||||||||||||||||||||||||||||||
Benefits and expenses: | Benefits and expenses: | |||||||||||||||||||||||||||||||||||||||||
Total benefits and expenses | 202 | 208 | 353 | 371 | Total benefits and expenses | 243 | 202 | 473 | 353 | |||||||||||||||||||||||||||||||||
Less: | Less: | |||||||||||||||||||||||||||||||||||||||||
Embedded derivatives – modco/funds withheld treaties | (2 | ) | 6 | (115 | ) | 8 | Embedded derivatives – modco/funds withheld treaties | 6 | (2) | 23 | (115) | |||||||||||||||||||||||||||||||
Guaranteed minimum benefit riders and related free standing derivatives | 2 | 1 | 40 | (1 | ) | Guaranteed minimum benefit riders and related free standing derivatives | (4) | 2 | (33) | 40 | ||||||||||||||||||||||||||||||||
Equity-indexed annuities | 5 | 9 | 9 | 10 | Equity-indexed annuities | (2) | 5 | (16) | 9 | |||||||||||||||||||||||||||||||||
Benefits and expenses before certain derivatives | 197 | 192 | 419 | 354 | Benefits and expenses before certain derivatives | 243 | 197 | 499 | 419 | |||||||||||||||||||||||||||||||||
Income before income taxes: | Income before income taxes: | |||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 93 | 72 | 55 | 137 | Income before income taxes | 163 | 93 | 223 | 55 | |||||||||||||||||||||||||||||||||
Less: | Less: | |||||||||||||||||||||||||||||||||||||||||
Embedded derivatives – modco/funds withheld treaties | (5 | ) | 3 | (115 | ) | 6 | Embedded derivatives – modco/funds withheld treaties | 8 | (5) | 36 | (115) | |||||||||||||||||||||||||||||||
Guaranteed minimum benefit riders and related free standing derivatives | 37 | 3 | 73 | 2 | Guaranteed minimum benefit riders and related free standing derivatives | 4 | 37 | (32) | 73 | |||||||||||||||||||||||||||||||||
Equity-indexed annuities | (5 | ) | (9 | ) | (9 | ) | (10 | ) | Equity-indexed annuities | 2 | (5) | 16 | (9) | |||||||||||||||||||||||||||||
Income before income taxes and certain derivatives | $ | 66 | $ | 75 | $ | 106 | $ | 139 | Income before income taxes and certain derivatives | $ | 149 | $ | 66 | $ | 203 | $ | 106 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 324 | $ | 274 | $ | 50 | $ | 627 | $ | 555 | $ | 72 | |||||||||||||||||||||||
Investment income, net of related expenses | 63 | 50 | 13 | 123 | 100 | 23 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | — | 6 | (6) | 2 | (6) | 8 | |||||||||||||||||||||||||||||
Other revenues | 5 | 3 | 2 | 9 | 4 | 5 | |||||||||||||||||||||||||||||
Total revenues | 392 | 333 | 59 | 761 | 653 | 108 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 298 | 233 | 65 | 582 | 473 | 109 | |||||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 47 | 43 | 4 | 92 | 88 | 4 | |||||||||||||||||||||||||||||
Other operating expenses | 11 | 9 | 2 | 21 | 18 | 3 | |||||||||||||||||||||||||||||
Total benefits and expenses | 356 | 285 | 71 | 695 | 579 | 116 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 36 | $ | 48 | $ | (12) | $ | 66 | $ | 74 | $ | (8) |
(dollars in millions) | Three months ended June 30, | ||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Revenues: | Traditional | Financial Solutions | Total Canada | Traditional | Financial Solutions | Total Canada | |||||||||||||||||
Net premiums | $ | 254 | $ | 20 | $ | 274 | $ | 264 | $ | 23 | $ | 287 | |||||||||||
Investment income, net of related expenses | 50 | — | 50 | 51 | — | 51 | |||||||||||||||||
Investment related gains (losses), net | 6 | — | 6 | 3 | — | 3 | |||||||||||||||||
Other revenues | 1 | 2 | 3 | — | 1 | 1 | |||||||||||||||||
Total revenues | 311 | 22 | 333 | 318 | 24 | 342 | |||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Claims and other policy benefits | 216 | 17 | 233 | 206 | 20 | 226 | |||||||||||||||||
Interest credited | — | — | — | — | — | — | |||||||||||||||||
Policy acquisition costs and other insurance expenses | 42 | 1 | 43 | 57 | 1 | 58 | |||||||||||||||||
Other operating expenses | 9 | — | 9 | 9 | (1 | ) | 8 | ||||||||||||||||
Total benefits and expenses | 267 | 18 | 285 | 272 | 20 | 292 | |||||||||||||||||
Income before income taxes | $ | 44 | $ | 4 | $ | 48 | $ | 46 | $ | 4 | $ | 50 |
(dollars in millions) | Six months ended June 30, | ||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Revenues: | Traditional | Financial Solutions | Total Canada | Traditional | Financial Solutions | Total Canada | |||||||||||||||||
Net premiums | $ | 514 | $ | 41 | $ | 555 | $ | 519 | $ | 45 | $ | 564 | |||||||||||
Investment income, net of related expenses | 99 | 1 | 100 | 100 | 1 | 101 | |||||||||||||||||
Investment related gains (losses), net | (6 | ) | — | (6 | ) | 10 | — | 10 | |||||||||||||||
Other revenues | — | 4 | 4 | 1 | 2 | 3 | |||||||||||||||||
Total revenues | 607 | 46 | 653 | 630 | 48 | 678 | |||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Claims and other policy benefits | 436 | 37 | 473 | 406 | 41 | 447 | |||||||||||||||||
Interest credited | — | — | — | — | — | — | |||||||||||||||||
Policy acquisition costs and other insurance expenses | 87 | 1 | 88 | 111 | 1 | 112 | |||||||||||||||||
Other operating expenses | 17 | 1 | 18 | 16 | 1 | 17 | |||||||||||||||||
Total benefits and expenses | 540 | 39 | 579 | 533 | 43 | 576 | |||||||||||||||||
Income before income taxes | $ | 67 | $ | 7 | $ | 74 | $ | 97 | $ | 5 | $ | 102 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 301 | $ | 254 | $ | 47 | $ | 581 | $ | 514 | $ | 67 | |||||||||||||||||||||||
Investment income, net of related expenses | 63 | 50 | 13 | 123 | 99 | 24 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | — | 6 | (6) | 2 | (6) | 8 | |||||||||||||||||||||||||||||
Other revenues | 2 | 1 | 1 | 3 | — | 3 | |||||||||||||||||||||||||||||
Total revenues | 366 | 311 | 55 | 709 | 607 | 102 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 277 | 216 | 61 | 543 | 436 | 107 | |||||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 46 | 42 | 4 | 91 | 87 | 4 | |||||||||||||||||||||||||||||
Other operating expenses | 11 | 9 | 2 | 19 | 17 | 2 | |||||||||||||||||||||||||||||
Total benefits and expenses | 334 | 267 | 67 | 653 | 540 | 113 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 32 | $ | 44 | $ | (12) | $ | 56 | $ | 67 | $ | (11) | |||||||||||||||||||||||
Key metrics: | |||||||||||||||||||||||||||||||||||
Life insurance in force | $468.3 billion | $409.2 billion | |||||||||||||||||||||||||||||||||
Claims and other policy benefits as a percentage of net premiums (“loss ratios”) | 92.0 | % | 85.0 | % | 93.5 | % | 84.8 | % | |||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses as a percentage of net premiums | 15.3 | % | 16.5 | % | 15.7 | % | 16.9 | % | |||||||||||||||||||||||||||
Other operating expenses as a percentage of net premiums | 3.7 | % | 3.5 | % | 3.3 | % | 3.3 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 23 | $ | 20 | $ | 3 | $ | 46 | $ | 41 | $ | 5 | |||||||||||||||||||||||
Investment income, net of related expenses | — | — | — | — | 1 | (1) | |||||||||||||||||||||||||||||
Investment related gains (losses), net | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other revenues | 3 | 2 | 1 | 6 | 4 | 2 | |||||||||||||||||||||||||||||
Total revenues | 26 | 22 | 4 | 52 | 46 | 6 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 21 | 17 | 4 | 39 | 37 | 2 | |||||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 1 | 1 | — | 1 | 1 | — | |||||||||||||||||||||||||||||
Other operating expenses | — | — | — | 2 | 1 | 1 | |||||||||||||||||||||||||||||
Total benefits and expenses | 22 | 18 | 4 | 42 | 39 | 3 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 4 | $ | 4 | $ | — | $ | 10 | $ | 7 | $ | 3 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 517 | $ | 409 | $ | 108 | $ | 1,034 | $ | 852 | $ | 182 | |||||||||||||||||||||||
Investment income, net of related expenses | 74 | 79 | (5) | 142 | 126 | 16 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 2 | 16 | (14) | 18 | 10 | 8 | |||||||||||||||||||||||||||||
Other revenues | 5 | 3 | 2 | 7 | 4 | 3 | |||||||||||||||||||||||||||||
Total revenues | 598 | 507 | 91 | 1,201 | 992 | 209 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 456 | 314 | 142 | 1,000 | 701 | 299 | |||||||||||||||||||||||||||||
Interest credited | 2 | 16 | (14) | 1 | (1) | 2 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 28 | 33 | (5) | 59 | 64 | (5) | |||||||||||||||||||||||||||||
Other operating expenses | 41 | 30 | 11 | 78 | 67 | 11 | |||||||||||||||||||||||||||||
Total benefits and expenses | 527 | 393 | 134 | 1,138 | 831 | 307 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 71 | $ | 114 | $ | (43) | $ | 63 | $ | 161 | $ | (98) |
(dollars in millions) | Three months ended June 30, | ||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Revenues: | Traditional | Financial Solutions | Total EMEA | Traditional | Financial Solutions | Total EMEA | |||||||||||||||||
Net premiums | $ | 352 | $ | 57 | $ | 409 | $ | 351 | $ | 57 | $ | 408 | |||||||||||
Investment income, net of related expenses | 18 | 61 | 79 | 18 | 47 | 65 | |||||||||||||||||
Investment related gains (losses), net | — | 16 | 16 | — | 3 | 3 | |||||||||||||||||
Other revenues | 1 | 2 | 3 | 1 | 7 | 8 | |||||||||||||||||
Total revenues | 371 | 136 | 507 | 370 | 114 | 484 | |||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Claims and other policy benefits | 301 | 13 | 314 | 296 | 47 | 343 | |||||||||||||||||
Interest credited | — | 16 | 16 | — | 3 | 3 | |||||||||||||||||
Policy acquisition costs and other insurance expenses | 32 | 1 | 33 | 28 | 1 | 29 | |||||||||||||||||
Other operating expenses | 22 | 8 | 30 | 30 | 11 | 41 | |||||||||||||||||
Total benefits and expenses | 355 | 38 | 393 | 354 | 62 | 416 | |||||||||||||||||
Income before income taxes | $ | 16 | $ | 98 | $ | 114 | $ | 16 | $ | 52 | $ | 68 |
(dollars in millions) | Six months ended June 30, | ||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Revenues: | Traditional | Financial Solutions | Total EMEA | Traditional | Financial Solutions | Total EMEA | |||||||||||||||||
Net premiums | $ | 742 | $ | 110 | $ | 852 | $ | 715 | $ | 109 | $ | 824 | |||||||||||
Investment income, net of related expenses | 37 | 89 | 126 | 37 | 95 | 132 | |||||||||||||||||
Investment related gains (losses), net | — | 10 | 10 | — | 6 | 6 | |||||||||||||||||
Other revenues | (1 | ) | 5 | 4 | 2 | 13 | 15 | ||||||||||||||||
Total revenues | 778 | 214 | 992 | 754 | 223 | 977 | |||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Claims and other policy benefits | 635 | 66 | 701 | 608 | 96 | 704 | |||||||||||||||||
Interest credited | — | (1 | ) | (1 | ) | — | 15 | 15 | |||||||||||||||
Policy acquisition costs and other insurance expenses | 62 | 2 | 64 | 57 | 2 | 59 | |||||||||||||||||
Other operating expenses | 48 | 19 | 67 | 57 | 20 | 77 | |||||||||||||||||
Total benefits and expenses | 745 | 86 | 831 | 722 | 133 | 855 | |||||||||||||||||
Income before income taxes | $ | 33 | $ | 128 | $ | 161 | $ | 32 | $ | 90 | $ | 122 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 433 | $ | 352 | $ | 81 | $ | 871 | $ | 742 | $ | 129 | |||||||||||||||||||||||
Investment income, net of related expenses | 24 | 18 | 6 | 44 | 37 | 7 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other revenues | 2 | 1 | 1 | 1 | (1) | 2 | |||||||||||||||||||||||||||||
Total revenues | 459 | 371 | 88 | 916 | 778 | 138 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 414 | 301 | 113 | 883 | 635 | 248 | |||||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 27 | 32 | (5) | 56 | 62 | (6) | |||||||||||||||||||||||||||||
Other operating expenses | 30 | 22 | 8 | 57 | 48 | 9 | |||||||||||||||||||||||||||||
Total benefits and expenses | 471 | 355 | 116 | 996 | 745 | 251 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | (12) | $ | 16 | $ | (28) | $ | (80) | $ | 33 | $ | (113) | |||||||||||||||||||||||
Key metrics: | |||||||||||||||||||||||||||||||||||
Life insurance in force | $861.4 billion | $772.8 billion | |||||||||||||||||||||||||||||||||
Claims and other policy benefits as a percentage of net premiums (“loss ratios”) | 95.6 | % | 85.5 | % | 101.4 | % | 85.6 | % | |||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses as a percentage of net premiums | 6.2 | % | 9.1 | % | 6.4 | % | 8.4 | % | |||||||||||||||||||||||||||
Other operating expenses as a percentage of net premiums | 6.9 | % | 6.3 | % | 6.5 | % | 6.5 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 84 | $ | 57 | $ | 27 | $ | 163 | $ | 110 | $ | 53 | |||||||||||||||||||||||
Investment income, net of related expenses | 50 | 61 | (11) | 98 | 89 | 9 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 2 | 16 | (14) | 18 | 10 | 8 | |||||||||||||||||||||||||||||
Other revenues | 3 | 2 | 1 | 6 | 5 | 1 | |||||||||||||||||||||||||||||
Total revenues | 139 | 136 | 3 | 285 | 214 | 71 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 42 | 13 | 29 | 117 | 66 | 51 | |||||||||||||||||||||||||||||
Interest credited | 2 | 16 | (14) | 1 | (1) | 2 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 1 | 1 | — | 3 | 2 | 1 | |||||||||||||||||||||||||||||
Other operating expenses | 11 | 8 | 3 | 21 | 19 | 2 | |||||||||||||||||||||||||||||
Total benefits and expenses | 56 | 38 | 18 | 142 | 86 | 56 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 83 | $ | 98 | $ | (15) | $ | 143 | $ | 128 | $ | 15 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 664 | $ | 638 | $ | 26 | $ | 1,326 | $ | 1,348 | $ | (22) | |||||||||||||||||||||||
Investment income, net of related expenses | 65 | 48 | 17 | 126 | 92 | 34 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 15 | 15 | — | 26 | (18) | 44 | |||||||||||||||||||||||||||||
Other revenues | 13 | 10 | 3 | 30 | 24 | 6 | |||||||||||||||||||||||||||||
Total revenues | 757 | 711 | 46 | 1,508 | 1,446 | 62 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 620 | 546 | 74 | 1,184 | 1,163 | 21 | |||||||||||||||||||||||||||||
Interest credited | 15 | 11 | 4 | 30 | 24 | 6 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 52 | 39 | 13 | 106 | 102 | 4 | |||||||||||||||||||||||||||||
Other operating expenses | 51 | 42 | 9 | 100 | 85 | 15 | |||||||||||||||||||||||||||||
Total benefits and expenses | 738 | 638 | 100 | 1,420 | 1,374 | 46 | |||||||||||||||||||||||||||||
Income before income taxes | $ | 19 | $ | 73 | $ | (54) | $ | 88 | $ | 72 | $ | 16 |
(dollars in millions) | Three months ended June 30, | ||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Revenues: | Traditional | Financial Solutions | Total Asia Pacific | Traditional | Financial Solutions | Total Asia Pacific | |||||||||||||||||
Net premiums | $ | 607 | $ | 31 | $ | 638 | $ | 606 | $ | 44 | $ | 650 | |||||||||||
Investment income, net of related expenses | 27 | 21 | 48 | 24 | 11 | 35 | |||||||||||||||||
Investment related gains (losses), net | — | 15 | 15 | — | (1 | ) | (1 | ) | |||||||||||||||
Other revenues | 2 | 8 | 10 | 4 | 5 | 9 | |||||||||||||||||
Total revenues | 636 | 75 | 711 | 634 | 59 | 693 | |||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Claims and other policy benefits | 514 | 32 | 546 | 568 | 37 | 605 | |||||||||||||||||
Interest credited | — | 11 | 11 | — | 6 | 6 | |||||||||||||||||
Policy acquisition costs and other insurance expenses | 34 | 5 | 39 | (12 | ) | 10 | (2 | ) | |||||||||||||||
Other operating expenses | 41 | 1 | 42 | 44 | 4 | 48 | |||||||||||||||||
Total benefits and expenses | 589 | 49 | 638 | 600 | 57 | 657 | |||||||||||||||||
Income (loss) before income taxes | $ | 47 | $ | 26 | $ | 73 | $ | 34 | $ | 2 | $ | 36 |
(dollars in millions) | Six months ended June 30, | ||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Revenues: | Traditional | Financial Solutions | Total Asia Pacific | Traditional | Financial Solutions | Total Asia Pacific | |||||||||||||||||
Net premiums | $ | 1,243 | $ | 105 | $ | 1,348 | $ | 1,253 | $ | 78 | $ | 1,331 | |||||||||||
Investment income, net of related expenses | 54 | 38 | 92 | 50 | 21 | 71 | |||||||||||||||||
Investment related gains (losses), net | — | (18 | ) | (18 | ) | — | 3 | 3 | |||||||||||||||
Other revenues | 6 | 18 | 24 | 4 | 12 | 16 | |||||||||||||||||
Total revenues | 1,303 | 143 | 1,446 | 1,307 | 114 | 1,421 | |||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Claims and other policy benefits | 1,069 | 94 | 1,163 | 1,114 | 69 | 1,183 | |||||||||||||||||
Interest credited | — | 24 | 24 | — | 13 | 13 | |||||||||||||||||
Policy acquisition costs and other insurance expenses | 83 | 19 | 102 | 39 | 15 | 54 | |||||||||||||||||
Other operating expenses | 80 | 5 | 85 | 83 | 9 | 92 | |||||||||||||||||
Total benefits and expenses | 1,232 | 142 | 1,374 | 1,236 | 106 | 1,342 | |||||||||||||||||
Income before income taxes | $ | 71 | $ | 1 | $ | 72 | $ | 71 | $ | 8 | $ | 79 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 616 | $ | 607 | $ | 9 | $ | 1,225 | $ | 1,243 | $ | (18) | |||||||||||||||||||||||
Investment income, net of related expenses | 34 | 27 | 7 | 67 | 54 | 13 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | — | — | — | (1) | — | (1) | |||||||||||||||||||||||||||||
Other revenues | 3 | 2 | 1 | 9 | 6 | 3 | |||||||||||||||||||||||||||||
Total revenues | 653 | 636 | 17 | 1,300 | 1,303 | (3) | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 578 | 514 | 64 | 1,096 | 1,069 | 27 | |||||||||||||||||||||||||||||
Interest credited | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 41 | 34 | 7 | 84 | 83 | 1 | |||||||||||||||||||||||||||||
Other operating expenses | 46 | 41 | 5 | 91 | 80 | 11 | |||||||||||||||||||||||||||||
Total benefits and expenses | 665 | 589 | 76 | 1,271 | 1,232 | 39 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | (12) | $ | 47 | $ | (59) | $ | 29 | $ | 71 | $ | (42) | |||||||||||||||||||||||
Key metrics: | |||||||||||||||||||||||||||||||||||
Life insurance in force | $516.1 billion | $649.5 billion | |||||||||||||||||||||||||||||||||
Claims and other policy benefits as a percentage of net premiums (“loss ratios”) | 93.8 | % | 84.7 | % | 89.5 | % | 86.0 | % | |||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses as a percentage of net premiums | 6.7 | % | 5.6 | % | 6.9 | % | 6.7 | % | |||||||||||||||||||||||||||
Other operating expenses as a percentage of net premiums | 7.5 | % | 6.8 | % | 7.4 | % | 6.4 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | 48 | $ | 31 | $ | 17 | $ | 101 | $ | 105 | $ | (4) | |||||||||||||||||||||||
Investment income, net of related expenses | 31 | 21 | 10 | 59 | 38 | 21 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 15 | 15 | — | 27 | (18) | 45 | |||||||||||||||||||||||||||||
Other revenues | 10 | 8 | 2 | 21 | 18 | 3 | |||||||||||||||||||||||||||||
Total revenues | 104 | 75 | 29 | 208 | 143 | 65 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | 42 | 32 | 10 | 88 | 94 | (6) | |||||||||||||||||||||||||||||
Interest credited | 15 | 11 | 4 | 30 | 24 | 6 | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance expenses | 11 | 5 | 6 | 22 | 19 | 3 | |||||||||||||||||||||||||||||
Other operating expenses | 5 | 1 | 4 | 9 | 5 | 4 | |||||||||||||||||||||||||||||
Total benefits and expenses | 73 | 49 | 24 | 149 | 142 | 7 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 31 | $ | 26 | $ | 5 | $ | 59 | $ | 1 | $ | 58 |
(dollars in millions) | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 vs 2020 | 2021 | 2020 | 2021 vs 2020 | ||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net premiums | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Investment income, net of related expenses | 48 | 48 | — | 206 | 106 | 100 | |||||||||||||||||||||||||||||
Investment related gains (losses), net | 64 | 22 | 42 | 337 | (45) | 382 | |||||||||||||||||||||||||||||
Other revenues | 29 | 20 | 9 | 39 | 21 | 18 | |||||||||||||||||||||||||||||
Total revenues | 141 | 90 | 51 | 582 | 82 | 500 | |||||||||||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||||||||||
Claims and other policy benefits | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Interest credited | 1 | 3 | (2) | 2 | 5 | (3) | |||||||||||||||||||||||||||||
Policy acquisition costs and other insurance income | (26) | (29) | 3 | (54) | (57) | 3 | |||||||||||||||||||||||||||||
Other operating expenses | 86 | 69 | 17 | 156 | 131 | 25 | |||||||||||||||||||||||||||||
Interest expense | 43 | 42 | 1 | 88 | 83 | 5 | |||||||||||||||||||||||||||||
Collateral finance and securitization expense | 2 | 4 | (2) | 5 | 10 | (5) | |||||||||||||||||||||||||||||
Total benefits and expenses | 106 | 89 | 17 | 197 | 172 | 25 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 35 | $ | 1 | $ | 34 | $ | 385 | $ | (90) | $ | 475 |
(dollars in millions) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Net premiums | $ | — | $ | — | $ | — | $ | — | ||||||||
Investment income, net of related expenses | 48 | 55 | 106 | 98 | ||||||||||||
Investment related gains (losses), net | 22 | (6 | ) | (45 | ) | (7 | ) | |||||||||
Other revenues | 20 | 13 | 21 | 39 | ||||||||||||
Total revenues | 90 | 62 | 82 | 130 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Claims and other policy benefits | — | — | — | — | ||||||||||||
Interest credited | 3 | 6 | 5 | 11 | ||||||||||||
Policy acquisition costs and other insurance income | (29 | ) | (29 | ) | (57 | ) | (58 | ) | ||||||||
Other operating expenses | 69 | 75 | 131 | 146 | ||||||||||||
Interest expense | 42 | 43 | 83 | 83 | ||||||||||||
Collateral finance and securitization expense | 4 | 8 | 10 | 16 | ||||||||||||
Total benefits and expenses | 89 | 103 | 172 | 198 | ||||||||||||
Income (loss) before income taxes | $ | 1 | $ | (41 | ) | $ | (90 | ) | $ | (68 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Interest and dividend income | $ | 32 | $ | 183 | $ | 64 | $ | 408 | ||||||||||||||||||
Interest expense | 51 | 50 | 103 | 100 | ||||||||||||||||||||||
Capital contributions to subsidiaries | 3 | 18 | 7 | 33 | ||||||||||||||||||||||
Issuance of unaffiliated debt | — | 598 | — | 598 | ||||||||||||||||||||||
Dividends to shareholders | 47 | 43 | 95 | 87 | ||||||||||||||||||||||
Issuance of common stock, net of expenses | — | 481 | — | 481 | ||||||||||||||||||||||
Purchase of treasury stock | 2 | — | 2 | 153 | ||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Interest and dividend income | $ | 183 | $ | 36 | $ | 408 | $ | 66 | ||||||||
Interest expense | 50 | 52 | 100 | 100 | ||||||||||||
Capital contributions to subsidiaries | 18 | 18 | 33 | 39 | ||||||||||||
Issuance of unaffiliated debt | 598 | 599 | 598 | 599 | ||||||||||||
Dividends to shareholders | 43 | 38 | 87 | 75 | ||||||||||||
Issuance of common stock, net of expenses | 481 | — | 481 | — | ||||||||||||
Repurchases of treasury stock | — | — | 153 | 50 |
June 30, 2020 | December 31, 2019 | |||||||
Cash and invested assets | $ | 1,513 | $ | 554 |
June 30, 2021 | December 31, 2020 | |||||||||||||
Cash and invested assets | $ | 611 | $ | 1,308 |
Six months ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Dividends to shareholders | $ | 95 | $ | 87 | |||||||
Purchase of treasury stock (1) | — | 153 | |||||||||
Total amount paid to shareholders | $ | 95 | $ | 240 | |||||||
Number of treasury shares purchased (1) | — | 1,074,413 | |||||||||
Average price per share | $ | — | $ | 142.05 |
Six months ended June 30, | |||||||
2020 | 2019 | ||||||
Dividends to shareholders | $ | 87 | $ | 75 | |||
Repurchases of treasury stock | 153 | 50 | |||||
Total amount paid to shareholders | $ | 240 | $ | 125 | |||
Number of shares repurchased | 1,074,413 | 344,237 | |||||
Average price per share | $ | 142.05 | $ | 145.25 |
For the six months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||
Sources: | Sources: | Sources: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 2,330 | $ | 2,579 | ||||||||||||||||||
Net cash provided by operating activities | $ | 2,579 | $ | 970 | ||||||||||||||||||
Proceeds from issuance of common stock, net | 481 | — | Proceeds from issuance of common stock, net | — | 481 | |||||||||||||||||
Proceeds from long-term debt issuance | 598 | 599 | Proceeds from long-term debt issuance | — | 598 | |||||||||||||||||
Exercise of stock options, net | 1 | 2 | Exercise of stock options, net | — | 1 | |||||||||||||||||
Change in cash collateral for derivative positions and other arrangements | 93 | — | Change in cash collateral for derivative positions and other arrangements | 184 | 93 | |||||||||||||||||
Cash provided by changes in universal life and other | Cash provided by changes in universal life and other | |||||||||||||||||||||
investment type policies and contracts | 575 | — | investment type policies and contracts | 79 | 575 | |||||||||||||||||
Effect of exchange rate changes on cash | — | 7 | ||||||||||||||||||||
Total sources | 4,327 | 1,578 | Total sources | 2,593 | 4,327 | |||||||||||||||||
Uses: | Uses: | Uses: | ||||||||||||||||||||
Net cash used in investing activities | 1,024 | 764 | Net cash used in investing activities | 2,173 | 1,024 | |||||||||||||||||
Dividends to stockholders | 87 | 75 | Dividends to stockholders | 95 | 87 | |||||||||||||||||
Repayment of collateral finance and securitization notes | 160 | 53 | Repayment of collateral finance and securitization notes | 65 | 160 | |||||||||||||||||
Debt issuance costs | 5 | 5 | Debt issuance costs | — | 5 | |||||||||||||||||
Principal payments of long-term debt | 1 | 1 | Principal payments of long-term debt | 401 | 1 | |||||||||||||||||
Purchases of treasury stock | 162 | 68 | ||||||||||||||||||||
Change in cash collateral for derivatives and other arrangements | — | 80 | Purchases of treasury stock | 2 | 162 | |||||||||||||||||
Cash used for changes in universal life and other | ||||||||||||||||||||||
investment type policies and contracts | — | 134 | ||||||||||||||||||||
Effect of exchange rate changes on cash | 24 | — | ||||||||||||||||||||
Total uses | 1,463 | 1,180 | ||||||||||||||||||||
Effect of exchange rate changes on cash | 11 | 24 | ||||||||||||||||||||
Total uses | 2,747 | 1,463 | ||||||||||||||||||||
Net change in cash and cash equivalents | Net change in cash and cash equivalents | $ | 2,864 | $ | 398 | Net change in cash and cash equivalents | $ | (154) | $ | 2,864 |
June 30, 2020 | % of Total | December 31, 2019 | % of Total | |||||||||||
Fixed maturity securities, available-for-sale | $ | 52,346 | 72.8 | % | $ | 51,121 | 75.3 | % | ||||||
Equity securities | 130 | 0.2 | 320 | 0.5 | ||||||||||
Mortgage loans on real estate | 5,974 | 8.3 | 5,706 | 8.3 | ||||||||||
Policy loans | 1,310 | 1.8 | 1,319 | 1.9 | ||||||||||
Funds withheld at interest | 5,250 | 7.3 | 5,662 | 8.3 | ||||||||||
Short-term investments | 84 | 0.1 | 64 | 0.1 | ||||||||||
Other invested assets | 2,547 | 3.5 | 2,363 | 3.5 | ||||||||||
Cash and cash equivalents | 4,313 | 6.0 | 1,449 | 2.1 | ||||||||||
Total cash and invested assets | $ | 71,954 | 100.0 | % | $ | 68,004 | 100.0 | % |
June 30, 2021 | % of Total | December 31, 2020 | % of Total | |||||||||||||||||||||||
Fixed maturity securities, available-for-sale | $ | 58,287 | 73.2 | % | $ | 56,735 | 74.8 | % | ||||||||||||||||||
Equity securities | 147 | 0.2 | 132 | 0.2 | ||||||||||||||||||||||
Mortgage loans on real estate | 6,481 | 8.1 | 5,787 | 7.6 | ||||||||||||||||||||||
Policy loans | 1,254 | 1.6 | 1,258 | 1.7 | ||||||||||||||||||||||
Funds withheld at interest | 7,049 | 8.9 | 5,432 | 7.2 | ||||||||||||||||||||||
Short-term investments | 184 | 0.2 | 227 | 0.3 | ||||||||||||||||||||||
Other invested assets | 2,924 | 3.7 | 2,829 | 3.7 | ||||||||||||||||||||||
Cash and cash equivalents | 3,254 | 4.1 | 3,408 | 4.5 | ||||||||||||||||||||||
Total cash and invested assets | $ | 79,580 | 100.0 | % | $ | 75,808 | 100.0 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | Increase/ (Decrease) | 2021 | 2020 | Increase/ (Decrease) | ||||||||||||||||||||||||||||||
Average invested assets at amortized cost | $ | 33,587 | $ | 30,420 | $ | 3,167 | $ | 33,266 | $ | 29,923 | $ | 3,343 | |||||||||||||||||||||||
Net investment income | $ | 383 | $ | 305 | $ | 78 | $ | 846 | $ | 604 | $ | 242 | |||||||||||||||||||||||
Annualized investment yield (ratio of net investment income to average invested assets at amortized cost) | 4.64 | % | 4.07 | % | 57 bps | 5.15 | % | 4.07 | % | 108 bps | |||||||||||||||||||||||||
VII (included in net investment income) | $ | 78 | $ | 16 | $ | 62 | $ | 240 | $ | 19 | $ | 221 | |||||||||||||||||||||||
Annualized investment yield excluding VII (ratio of net investment income, excluding VII, to average invested assets, excluding assets with only VII, at amortized cost) | 3.84 | % | 3.99 | % | (15) bps | 3.82 | % | 4.09 | % | (27) bps |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2020 | 2019 | Increase/ (Decrease) | 2020 | 2019 | Increase/ (Decrease) | ||||||||||||||||
Average invested assets at amortized cost | $ | 30,420 | $ | 28,487 | 6.8 | % | $ | 29,923 | $ | 28,138 | 6.3 | % | |||||||||
Net investment income | 305 | 307 | (0.7 | )% | 604 | 617 | (2.1 | )% | |||||||||||||
Investment yield (ratio of net investment income to average invested assets) | 4.07 | % | 4.38 | % | (31) bps | 4.07 | % | 4.43 | % | (36) bps |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
NAIC Designation | Rating Agency Designation | Amortized Cost | Estimated Fair Value | % of Total | Amortized Cost | Estimated Fair Value | % of Total | |||||||||||||||||||||||||||||||||||||
1 | AAA/AA/A | $ | 31,394 | $ | 34,862 | 59.8 | % | $ | 29,770 | $ | 34,589 | 60.9 | % | |||||||||||||||||||||||||||||||
2 | BBB | 17,948 | 19,896 | 34.1 | 16,440 | 18,751 | 33.1 | |||||||||||||||||||||||||||||||||||||
3 | BB | 2,575 | 2,683 | 4.6 | 2,480 | 2,588 | 4.6 | |||||||||||||||||||||||||||||||||||||
4 | B | 686 | 678 | 1.2 | 713 | 697 | 1.2 | |||||||||||||||||||||||||||||||||||||
5 | CCC and lower | 179 | 159 | 0.3 | 131 | 102 | 0.2 | |||||||||||||||||||||||||||||||||||||
6 | In or near default | 15 | 9 | — | 14 | 8 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 52,797 | $ | 58,287 | 100.0 | % | $ | 49,548 | $ | 56,735 | 100.0 | % |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
NAIC Designation | Rating Agency Designation | Amortized Cost | Estimated Fair Value | % of Total | Amortized Cost | Estimated Fair Value | % of Total | |||||||||||||||||
1 | AAA/AA/A | $ | 29,018 | $ | 33,246 | 63.5 | % | $ | 30,100 | $ | 33,284 | 65.2 | % | |||||||||||
2 | BBB | 15,222 | 16,555 | 31.6 | 14,366 | 15,514 | 30.3 | |||||||||||||||||
3 | BB | 1,987 | 1,963 | 3.8 | 1,706 | 1,748 | 3.4 | |||||||||||||||||
4 | B | 560 | 515 | 1.0 | 514 | 518 | 1.0 | |||||||||||||||||
5 | CCC and lower | 91 | 46 | 0.1 | 36 | 23 | — | |||||||||||||||||
6 | In or near default | 25 | 21 | — | 31 | 34 | 0.1 | |||||||||||||||||
Total | $ | 46,903 | $ | 52,346 | 100.0 | % | $ | 46,753 | $ | 51,121 | 100.0 | % |
June 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Estimated Fair Value | % of Total | Amortized Cost | Estimated Fair Value | % of Total | Amortized Cost | Estimated Fair Value | % of Total | Amortized Cost | Estimated Fair Value | % of Total | |||||||||||||||||||||||||||||||||||||||||||||||||
RMBS: | RMBS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency | $ | 708 | $ | 776 | 11.8 | % | $ | 742 | $ | 777 | 10.6 | % | Agency | $ | 623 | $ | 667 | 9.9 | % | $ | 686 | $ | 744 | 11.0 | % | |||||||||||||||||||||||||||||||||||
Non-agency | 1,254 | 1,289 | 19.4 | 1,597 | 1,621 | 22.3 | Non-agency | 700 | 710 | 10.5 | 1,049 | 1,073 | 15.8 | |||||||||||||||||||||||||||||||||||||||||||||||
Total RMBS | 1,962 | 2,065 | 31.2 | 2,339 | 2,398 | 32.9 | Total RMBS | 1,323 | 1,377 | 20.4 | 1,735 | 1,817 | 26.8 | |||||||||||||||||||||||||||||||||||||||||||||||
ABS: | ABS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations (“CLOs”) | 1,612 | 1,558 | 23.4 | 1,750 | 1,743 | 24.0 | Collateralized loan obligations (“CLOs”) | 1,722 | 1,720 | 25.6 | 1,707 | 1,689 | 24.9 | |||||||||||||||||||||||||||||||||||||||||||||||
ABS, excluding CLOs | 1,186 | 1,173 | 17.6 | 1,223 | 1,235 | 17.0 | ABS, excluding CLOs | 1,745 | 1,762 | 26.2 | 1,392 | 1,403 | 20.7 | |||||||||||||||||||||||||||||||||||||||||||||||
Total ABS | 2,798 | 2,731 | 41.0 | 2,973 | 2,978 | 41.0 | Total ABS | 3,467 | 3,482 | 51.8 | 3,099 | 3,092 | 45.6 | |||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 1,850 | 1,851 | 27.8 | 1,841 | 1,899 | 26.1 | CMBS | 1,774 | 1,869 | 27.8 | 1,790 | 1,868 | 27.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,610 | $ | 6,647 | 100.0 | % | $ | 7,153 | $ | 7,275 | 100.0 | % | Total | $ | 6,564 | $ | 6,728 | 100.0 | % | $ | 6,624 | $ | 6,777 | 100.0 | % |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Recorded Investment | % of Total | Recorded Investment | % of Total | |||||||||||||||||||||||
U.S. Region: | ||||||||||||||||||||||||||
West | $ | 2,361 | 36.1 | % | $ | 2,253 | 38.5 | % | ||||||||||||||||||
South | 2,235 | 34.2 | 2,040 | 34.8 | ||||||||||||||||||||||
Midwest | 1,204 | 18.4 | 1,027 | 17.5 | ||||||||||||||||||||||
Northeast | 410 | 6.3 | 277 | 4.7 | ||||||||||||||||||||||
Subtotal - U.S. | 6,210 | 95.0 | 5,597 | 95.5 | ||||||||||||||||||||||
Canada | 208 | 3.2 | 188 | 3.2 | ||||||||||||||||||||||
United Kingdom | 117 | 1.8 | 76 | 1.3 | ||||||||||||||||||||||
Other | 2 | — | — | — | ||||||||||||||||||||||
Total | $ | 6,537 | 100.0 | % | $ | 5,861 | 100.0 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Impairments and change in allowance for credit losses on fixed maturity securities | $ | (5) | $ | — | $ | (3) | $ | 34 | |||||||||||||||
Other impairment losses and changes in provision | (1) | 5 | (2) | 5 | |||||||||||||||||||
Change in mortgage loan allowance for credit losses | (2) | 17 | (19) | 30 | |||||||||||||||||||
Total | $ | (8) | $ | 22 | $ | (24) | $ | 69 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Impairment losses and change in allowance for credit losses on fixed maturity securities | $ | — | $ | — | $ | 34 | $ | 9 | |||||||
Other impairment losses | 5 | 5 | 5 | 7 | |||||||||||
Change in mortgage loan provision | 17 | 1 | 30 | 1 | |||||||||||
Total | $ | 22 | $ | 6 | $ | 69 | $ | 17 |
June 30, 2020 | December 31, 2019 | |||||||||||||
Recorded Investment | % of Total | Recorded Investment | % of Total | |||||||||||
U.S. Region: | ||||||||||||||
West | $ | 2,349 | 38.8 | % | $ | 2,302 | 40.2 | % | ||||||
South | 2,111 | 34.9 | 1,929 | 33.6 | ||||||||||
Midwest | 1,074 | 17.8 | 996 | 17.4 | ||||||||||
Northeast | 275 | 4.6 | 262 | 4.6 | ||||||||||
Subtotal - U.S. | 5,809 | 96.1 | 5,489 | 95.8 | ||||||||||
Canada | 179 | 3.0 | 182 | 3.2 | ||||||||||
United Kingdom | 52 | 0.9 | 56 | 1.0 | ||||||||||
Total | $ | 6,040 | 100.0 | % | $ | 5,727 | 100.0 | % |
Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plan or Program | |||||||||||||||||||||||
April 1, 2021 – April 30, 2021 | — | $ | — | — | $ | 167,573,148 | ||||||||||||||||||||
May 1, 2021 – May 31, 2021 | 845 | $ | 126.86 | — | $ | 167,573,148 | ||||||||||||||||||||
June 1, 2021 – June 30, 2021 | 124 | $ | 115.80 | — | $ | 167,573,148 |
Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plan or Program | |||||||||||
April 1, 2020 - April 30, 2020 | 655 | $ | 106.16 | — | $ | 167,573,148 | ||||||||
May 1, 2020 - May 31, 2020 | 63,935 | $ | 86.57 | — | $ | 167,573,148 | ||||||||
June 1, 2020 - June 30, 2020 | 132 | $ | 103.00 | — | $ | 167,573,148 |
Exhibit Number | Description | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101). |
Reinsurance Group of America, Incorporated | |||||||||||
Date: August | By: | /s/ Anna Manning | |||||||||
Anna Manning | |||||||||||
President & Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: August | By: | /s/ Todd C. Larson | |||||||||
Todd C. Larson | |||||||||||
Senior Executive Vice President & Chief Financial Officer | |||||||||||
(Principal Financial and Accounting Officer) |