Securities Registered Pursuant to Section 12(b) of the Act: | |||||||||||||||||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | |||||||||||||||
Common Stock | AFG | New York Stock Exchange | |||||||||||||||
6% Subordinated Debentures due November 15, 2055 | AFGH | New York Stock Exchange | |||||||||||||||
5.875% Subordinated Debentures due March 30, 2059 | AFGB | New York Stock Exchange | |||||||||||||||
5.625% Subordinated Debentures due June 1, 2060 | AFGD | New York Stock Exchange | |||||||||||||||
5.125% Subordinated Debentures due December 15, 2059 | AFGC | New York Stock Exchange | |||||||||||||||
4.50% Subordinated Debentures due September 15, 2060 | AFGE | New York Stock Exchange |
Page | |||||
September 30, 2020 | December 31, 2019 | ||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 3,747 | $ | 2,314 | |||||||
Investments: | |||||||||||
Fixed maturities, available for sale at fair value (amortized cost — $45,297 and $44,524; allowance for expected credit losses of $54 at September 30, 2020) | 48,193 | 46,505 | |||||||||
Fixed maturities, trading at fair value | 92 | 113 | |||||||||
Equity securities, at fair value | 1,606 | 1,937 | |||||||||
Investments accounted for using the equity method | 1,841 | 1,688 | |||||||||
Mortgage loans | 1,482 | 1,329 | |||||||||
Policy loans | 154 | 164 | |||||||||
Equity index call options | 697 | 924 | |||||||||
Real estate and other investments | 275 | 278 | |||||||||
Total cash and investments | 58,087 | 55,252 | |||||||||
Recoverables from reinsurers | 3,819 | 3,415 | |||||||||
Prepaid reinsurance premiums | 862 | 678 | |||||||||
Agents’ balances and premiums receivable | 1,384 | 1,335 | |||||||||
Deferred policy acquisition costs | 497 | 1,037 | |||||||||
Assets of managed investment entities | 4,717 | 4,736 | |||||||||
Other receivables | 1,185 | 975 | |||||||||
Variable annuity assets (separate accounts) | 603 | 628 | |||||||||
Other assets | 1,749 | 1,867 | |||||||||
Goodwill | 207 | 207 | |||||||||
Total assets | $ | 73,110 | $ | 70,130 | |||||||
Liabilities and Equity: | |||||||||||
Unpaid losses and loss adjustment expenses | $ | 10,754 | $ | 10,232 | |||||||
Unearned premiums | 3,015 | 2,830 | |||||||||
Annuity benefits accumulated | 41,932 | 40,406 | |||||||||
Life, accident and health reserves | 609 | 612 | |||||||||
Payable to reinsurers | 977 | 814 | |||||||||
Liabilities of managed investment entities | 4,541 | 4,571 | |||||||||
Long-term debt | 2,108 | 1,473 | |||||||||
Variable annuity liabilities (separate accounts) | 603 | 628 | |||||||||
Other liabilities | 2,231 | 2,295 | |||||||||
Total liabilities | 66,770 | 63,861 | |||||||||
Redeemable noncontrolling interests | 0 | 0 | |||||||||
Shareholders’ equity: | |||||||||||
Common Stock, 0 par value — 200,000,000 shares authorized — 87,266,582 and 90,303,686 shares outstanding | 87 | 90 | |||||||||
Capital surplus | 1,283 | 1,307 | |||||||||
Retained earnings | 3,737 | 4,009 | |||||||||
Accumulated other comprehensive income, net of tax | 1,233 | 863 | |||||||||
Total shareholders’ equity | 6,340 | 6,269 | |||||||||
Noncontrolling interests | 0 | 0 | |||||||||
Total equity | 6,340 | 6,269 | |||||||||
Total liabilities and equity | $ | 73,110 | $ | 70,130 |
March 31, 2020 | December 31, 2019 | ||||||
Assets: | |||||||
Cash and cash equivalents | $ | 1,673 | $ | 2,314 | |||
Investments: | |||||||
Fixed maturities, available for sale at fair value (amortized cost — $46,101 and $44,524; allowance for expected credit losses of $61 at March 31, 2020) | 46,134 | 46,505 | |||||
Fixed maturities, trading at fair value | 96 | 113 | |||||
Equity securities, at fair value | 1,559 | 1,937 | |||||
Investments accounted for using the equity method | 1,763 | 1,688 | |||||
Mortgage loans | 1,346 | 1,329 | |||||
Policy loans | 161 | 164 | |||||
Equity index call options | 209 | 924 | |||||
Real estate and other investments | 280 | 278 | |||||
Total cash and investments | 53,221 | 55,252 | |||||
Recoverables from reinsurers | 3,387 | 3,415 | |||||
Prepaid reinsurance premiums | 708 | 678 | |||||
Agents’ balances and premiums receivable | 1,302 | 1,335 | |||||
Deferred policy acquisition costs | 1,573 | 1,037 | |||||
Assets of managed investment entities | 4,026 | 4,736 | |||||
Other receivables | 981 | 975 | |||||
Variable annuity assets (separate accounts) | 497 | 628 | |||||
Other assets | 1,741 | 1,867 | |||||
Goodwill | 207 | 207 | |||||
Total assets | $ | 67,643 | $ | 70,130 | |||
Liabilities and Equity: | |||||||
Unpaid losses and loss adjustment expenses | $ | 10,106 | $ | 10,232 | |||
Unearned premiums | 2,808 | 2,830 | |||||
Annuity benefits accumulated | 40,463 | 40,406 | |||||
Life, accident and health reserves | 607 | 612 | |||||
Payable to reinsurers | 779 | 814 | |||||
Liabilities of managed investment entities | 3,865 | 4,571 | |||||
Long-term debt | 1,473 | 1,473 | |||||
Variable annuity liabilities (separate accounts) | 497 | 628 | |||||
Other liabilities | 1,998 | 2,295 | |||||
Total liabilities | 62,596 | 63,861 | |||||
Redeemable noncontrolling interests | — | — | |||||
Shareholders’ equity: | |||||||
Common Stock, no par value — 200,000,000 shares authorized — 89,827,336 and 90,303,686 shares outstanding | 90 | 90 | |||||
Capital surplus | 1,309 | 1,307 | |||||
Retained earnings | 3,616 | 4,009 | |||||
Accumulated other comprehensive income, net of tax | 32 | 863 | |||||
Total shareholders’ equity | 5,047 | 6,269 | |||||
Noncontrolling interests | — | — | |||||
Total equity | 5,047 | 6,269 | |||||
Total liabilities and equity | $ | 67,643 | $ | 70,130 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 1,381 | $ | 1,442 | $ | 3,774 | $ | 3,815 | |||||||||||||||
Net investment income | 572 | 588 | 1,584 | 1,710 | |||||||||||||||||||
Realized gains (losses) on: | |||||||||||||||||||||||
Securities | 45 | (18) | (302) | 222 | |||||||||||||||||||
Subsidiaries | (30) | 0 | (30) | 0 | |||||||||||||||||||
Income of managed investment entities: | |||||||||||||||||||||||
Investment income | 46 | 67 | 154 | 206 | |||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | 1 | (14) | (47) | (16) | |||||||||||||||||||
Other income | 45 | 58 | 153 | 170 | |||||||||||||||||||
Total revenues | 2,060 | 2,123 | 5,286 | 6,107 | |||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Property and casualty insurance: | |||||||||||||||||||||||
Losses and loss adjustment expenses | 963 | 944 | 2,441 | 2,359 | |||||||||||||||||||
Commissions and other underwriting expenses | 406 | 450 | 1,235 | 1,275 | |||||||||||||||||||
Annuity benefits | 203 | 250 | 905 | 900 | |||||||||||||||||||
Annuity and supplemental insurance acquisition expenses | 172 | 120 | 250 | 181 | |||||||||||||||||||
Interest charges on borrowed money | 24 | 17 | 64 | 50 | |||||||||||||||||||
Expenses of managed investment entities | 31 | 54 | 117 | 168 | |||||||||||||||||||
Other expenses | 127 | 111 | 310 | 325 | |||||||||||||||||||
Total costs and expenses | 1,926 | 1,946 | 5,322 | 5,258 | |||||||||||||||||||
Earnings (loss) before income taxes | 134 | 177 | (36) | 849 | |||||||||||||||||||
Provision (credit) for income taxes | (30) | 34 | (63) | 171 | |||||||||||||||||||
Net earnings, including noncontrolling interests | 164 | 143 | 27 | 678 | |||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 0 | (4) | (13) | (8) | |||||||||||||||||||
Net Earnings Attributable to Shareholders | $ | 164 | $ | 147 | $ | 40 | $ | 686 | |||||||||||||||
Earnings Attributable to Shareholders per Common Share: | |||||||||||||||||||||||
Basic | $ | 1.86 | $ | 1.64 | $ | 0.45 | $ | 7.65 | |||||||||||||||
Diluted | $ | 1.86 | $ | 1.62 | $ | 0.45 | $ | 7.55 | |||||||||||||||
Average number of Common Shares: | |||||||||||||||||||||||
Basic | 88.2 | 90.0 | 89.4 | 89.7 | |||||||||||||||||||
Diluted | 88.5 | 91.1 | 89.9 | 90.9 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Revenues: | |||||||
Property and casualty insurance net earned premiums | $ | 1,209 | $ | 1,173 | |||
Net investment income | 544 | 542 | |||||
Realized gains (losses) on securities (*) | (551 | ) | 184 | ||||
Income (loss) of managed investment entities: | |||||||
Investment income | 59 | 69 | |||||
Gain (loss) on change in fair value of assets/liabilities | (43 | ) | — | ||||
Other income | 57 | 56 | |||||
Total revenues | 1,275 | 2,024 | |||||
Costs and Expenses: | |||||||
Property and casualty insurance: | |||||||
Losses and loss adjustment expenses | 707 | 692 | |||||
Commissions and other underwriting expenses | 420 | 399 | |||||
Annuity benefits | 276 | 311 | |||||
Annuity and supplemental insurance acquisition expenses | 113 | 28 | |||||
Interest charges on borrowed money | 17 | 16 | |||||
Expenses of managed investment entities | 48 | 55 | |||||
Other expenses | 82 | 110 | |||||
Total costs and expenses | 1,663 | 1,611 | |||||
Earnings (loss) before income taxes | (388 | ) | 413 | ||||
Provision (credit) for income taxes | (84 | ) | 87 | ||||
Net earnings (loss), including noncontrolling interests | (304 | ) | 326 | ||||
Less: Net earnings (loss) attributable to noncontrolling interests | (3 | ) | (3 | ) | |||
Net Earnings (Loss) Attributable to Shareholders | $ | (301 | ) | $ | 329 | ||
Earnings (Loss) Attributable to Shareholders per Common Share: | |||||||
Basic | $ | (3.34 | ) | $ | 3.68 | ||
Diluted | $ | (3.34 | ) | $ | 3.63 | ||
Average number of Common Shares: | |||||||
Basic | 90.3 | 89.4 | |||||
Diluted | 90.3 | 90.7 | |||||
________________________________________ | |||||||
(*) Consists of the following: | |||||||
Realized gains (losses) before impairments | $ | (505 | ) | $ | 186 | ||
Losses on securities with impairment | (69 | ) | (2 | ) | |||
Non-credit portion recognized in other comprehensive income (loss) | 23 | — | |||||
Impairment charges recognized in earnings | (46 | ) | (2 | ) | |||
Total realized gains (losses) on securities | $ | (551 | ) | $ | 184 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net earnings, including noncontrolling interests | $ | 164 | $ | 143 | $ | 27 | $ | 678 | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Net unrealized gains on securities: | |||||||||||||||||||||||
Unrealized holding gains on securities arising during the period | 194 | 107 | 350 | 847 | |||||||||||||||||||
Reclassification adjustment for realized (gains) losses included in net earnings | (12) | 1 | 0 | (10) | |||||||||||||||||||
Total net unrealized gains on securities | 182 | 108 | 350 | 837 | |||||||||||||||||||
Net unrealized gains (losses) on cash flow hedges | (6) | 7 | 24 | 36 | |||||||||||||||||||
Foreign currency translation adjustments | 0 | (7) | (6) | (3) | |||||||||||||||||||
Pension and other postretirement plans adjustments | 0 | 1 | 0 | 1 | |||||||||||||||||||
Other comprehensive income, net of tax | 176 | 109 | 368 | 871 | |||||||||||||||||||
Total comprehensive income, net of tax | 340 | 252 | 395 | 1,549 | |||||||||||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | (3) | (11) | (6) | |||||||||||||||||||
Comprehensive income attributable to shareholders | $ | 340 | $ | 255 | $ | 406 | $ | 1,555 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Net earnings (loss), including noncontrolling interests | $ | (304 | ) | $ | 326 | ||
Other comprehensive income (loss), net of tax: | |||||||
Net unrealized gains (losses) on securities: | |||||||
Unrealized holding gains (losses) on securities arising during the period | (865 | ) | 384 | ||||
Reclassification adjustment for realized (gains) losses included in net earnings | 19 | (3 | ) | ||||
Total net unrealized gains (losses) on securities | (846 | ) | 381 | ||||
Net unrealized gains on cash flow hedges | 27 | 11 | |||||
Foreign currency translation adjustments | (10 | ) | 4 | ||||
Other comprehensive income (loss), net of tax | (829 | ) | 396 | ||||
Total comprehensive income (loss), net of tax | (1,133 | ) | 722 | ||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (1 | ) | (3 | ) | |||
Comprehensive income (loss) attributable to shareholders | $ | (1,132 | ) | $ | 725 |
Shareholders’ Equity | Redeemable | |||||||||||||||||||||||||||||||||||||||||||||||||
Common | Common Stock and Capital | Retained | Accumulated Other Comp. | Noncon- trolling | Total | Noncon- trolling | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Surplus | Earnings | Income | Total | Interests | Equity | Interests | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 88,659,407 | $ | 1,388 | $ | 3,685 | $ | 1,053 | $ | 6,126 | $ | 0 | $ | 6,126 | $ | 0 | |||||||||||||||||||||||||||||||||||
Net earnings | — | — | 164 | — | 164 | 0 | 164 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 176 | 176 | — | 176 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.45 per share) | — | — | (39) | — | (39) | — | (39) | — | ||||||||||||||||||||||||||||||||||||||||||
Shares issued: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 19,865 | 1 | — | — | 1 | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards | 0 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other benefit plans | 38,822 | 2 | — | — | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | 2,901 | 1 | — | — | 1 | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 5 | — | — | 5 | — | 5 | — | ||||||||||||||||||||||||||||||||||||||||||
Shares acquired and retired | (1,447,588) | (23) | (73) | — | (96) | — | (96) | — | ||||||||||||||||||||||||||||||||||||||||||
Shares exchanged — benefit plans | (1,337) | 0 | 0 | — | 0 | — | 0 | — | ||||||||||||||||||||||||||||||||||||||||||
Forfeitures of restricted stock | (5,488) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other | — | (4) | 0 | 4 | — | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 87,266,582 | $ | 1,370 | $ | 3,737 | $ | 1,233 | $ | 6,340 | $ | 0 | $ | 6,340 | $ | 0 | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 89,917,601 | $ | 1,367 | $ | 3,914 | $ | 809 | $ | 6,090 | $ | 0 | $ | 6,090 | $ | 0 | |||||||||||||||||||||||||||||||||||
Net earnings (loss) | — | — | 147 | — | 147 | 0 | 147 | (4) | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 108 | 108 | — | 108 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Dividends ($0.40 per share) | — | — | (36) | — | (36) | — | (36) | — | ||||||||||||||||||||||||||||||||||||||||||
Shares issued: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 191,227 | 8 | — | — | 8 | — | 8 | — | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards | 70 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other benefit plans | 17,345 | 2 | — | — | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | 1,570 | 0 | — | — | 0 | — | 0 | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 5 | — | — | 5 | — | 5 | — | ||||||||||||||||||||||||||||||||||||||||||
Shares exchanged — benefit plans | (80) | 0 | 0 | — | 0 | — | 0 | — | ||||||||||||||||||||||||||||||||||||||||||
Forfeitures of restricted stock | (310) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (3) | — | (3) | 0 | (3) | 3 | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 90,127,423 | $ | 1,382 | $ | 4,022 | $ | 917 | $ | 6,321 | $ | 0 | $ | 6,321 | $ | 0 |
Shareholders’ Equity | Redeemable | ||||||||||||||||||||||||||||||
Common | Common Stock and Capital | Retained | Accumulated Other Comp. | Noncon- trolling | Total | Noncon- trolling | |||||||||||||||||||||||||
Shares | Surplus | Earnings | Inc. (Loss) | Total | Interests | Equity | Interests | ||||||||||||||||||||||||
Balance at December 31, 2019 | 90,303,686 | $ | 1,397 | $ | 4,009 | $ | 863 | $ | 6,269 | $ | — | $ | 6,269 | $ | — | ||||||||||||||||
Cumulative effect of accounting change | — | — | 7 | — | 7 | — | 7 | — | |||||||||||||||||||||||
Net earnings (loss) | — | — | (301 | ) | — | (301 | ) | — | (301 | ) | (3 | ) | |||||||||||||||||||
Other comprehensive income (loss) | — | — | — | (831 | ) | (831 | ) | — | (831 | ) | 2 | ||||||||||||||||||||
Dividends ($0.45 per share) | — | — | (40 | ) | — | (40 | ) | — | (40 | ) | — | ||||||||||||||||||||
Shares issued: | |||||||||||||||||||||||||||||||
Exercise of stock options | 204,093 | 9 | — | — | 9 | — | 9 | — | |||||||||||||||||||||||
Restricted stock awards | 227,867 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Other benefit plans | 14,541 | 1 | — | — | 1 | — | 1 | — | |||||||||||||||||||||||
Dividend reinvestment plan | 1,617 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation expense | — | 6 | — | — | 6 | — | 6 | — | |||||||||||||||||||||||
Shares acquired and retired | (826,283 | ) | (12 | ) | (49 | ) | — | (61 | ) | — | (61 | ) | — | ||||||||||||||||||
Shares exchanged — benefit plans | (95,854 | ) | (2 | ) | (9 | ) | — | (11 | ) | — | (11 | ) | — | ||||||||||||||||||
Forfeitures of restricted stock | (2,331 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
Other | — | — | (1 | ) | — | (1 | ) | — | (1 | ) | 1 | ||||||||||||||||||||
Balance at March 31, 2020 | 89,827,336 | $ | 1,399 | $ | 3,616 | $ | 32 | $ | 5,047 | $ | — | $ | 5,047 | $ | — | ||||||||||||||||
Balance at December 31, 2018 | 89,291,724 | $ | 1,334 | $ | 3,588 | $ | 48 | $ | 4,970 | $ | 2 | $ | 4,972 | $ | — | ||||||||||||||||
Net earnings (loss) | — | — | 329 | — | 329 | — | 329 | (3 | ) | ||||||||||||||||||||||
Other comprehensive income | — | — | — | 396 | 396 | — | 396 | — | |||||||||||||||||||||||
Dividends ($0.40 per share) | — | — | (36 | ) | — | (36 | ) | — | (36 | ) | — | ||||||||||||||||||||
Shares issued: | |||||||||||||||||||||||||||||||
Exercise of stock options | 152,253 | 6 | — | — | 6 | — | 6 | — | |||||||||||||||||||||||
Restricted stock awards | 232,565 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Other benefit plans | 11,062 | 1 | — | — | 1 | — | 1 | — | |||||||||||||||||||||||
Dividend reinvestment plan | 1,893 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation expense | — | 6 | — | — | 6 | — | 6 | — | |||||||||||||||||||||||
Shares exchanged — benefit plans | (43,470 | ) | (1 | ) | (3 | ) | — | (4 | ) | — | (4 | ) | — | ||||||||||||||||||
Forfeitures of restricted stock | (8,314 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
Other | — | — | (3 | ) | — | (3 | ) | (2 | ) | (5 | ) | 3 | |||||||||||||||||||
Balance at March 31, 2019 | 89,637,713 | $ | 1,346 | $ | 3,875 | $ | 444 | $ | 5,665 | $ | — | $ | 5,665 | $ | — |
Shareholders’ Equity | Redeemable | |||||||||||||||||||||||||||||||||||||||||||||||||
Common | Common Stock and Capital | Retained | Accumulated Other Comp. | Noncon- trolling | Total | Noncon- trolling | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Surplus | Earnings | Income | Total | Interests | Equity | Interests | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 90,303,686 | $ | 1,397 | $ | 4,009 | $ | 863 | $ | 6,269 | $ | 0 | $ | 6,269 | $ | 0 | |||||||||||||||||||||||||||||||||||
Cumulative effect of accounting change | — | — | 7 | — | 7 | — | 7 | — | ||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | — | — | 40 | — | 40 | 0 | 40 | (13) | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 366 | 366 | — | 366 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Dividends ($1.35 per share) | — | — | (120) | — | (120) | — | (120) | — | ||||||||||||||||||||||||||||||||||||||||||
Shares issued: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 229,208 | 10 | — | — | 10 | — | 10 | — | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards | 227,867 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other benefit plans | 105,318 | 7 | — | — | 7 | — | 7 | — | ||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | 7,251 | 1 | — | — | 1 | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 15 | — | — | 15 | — | 15 | — | ||||||||||||||||||||||||||||||||||||||||||
Shares acquired and retired | (3,468,107) | (54) | (179) | — | (233) | — | (233) | — | ||||||||||||||||||||||||||||||||||||||||||
Shares exchanged — benefit plans | (97,731) | (2) | (9) | — | (11) | — | (11) | — | ||||||||||||||||||||||||||||||||||||||||||
Forfeitures of restricted stock | (40,910) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other | — | (4) | (11) | 4 | (11) | 0 | (11) | 11 | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 87,266,582 | $ | 1,370 | $ | 3,737 | $ | 1,233 | $ | 6,340 | $ | 0 | $ | 6,340 | $ | 0 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 89,291,724 | $ | 1,334 | $ | 3,588 | $ | 48 | $ | 4,970 | $ | 2 | $ | 4,972 | $ | 0 | |||||||||||||||||||||||||||||||||||
Net earnings (loss) | — | — | 686 | — | 686 | 0 | 686 | (8) | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 869 | 869 | — | 869 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Dividends ($2.70 per share) | — | — | (242) | — | (242) | — | (242) | — | ||||||||||||||||||||||||||||||||||||||||||
Shares issued: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 591,233 | 25 | — | — | 25 | — | 25 | — | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards | 232,635 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other benefit plans | 58,488 | 6 | — | — | 6 | — | 6 | — | ||||||||||||||||||||||||||||||||||||||||||
Dividend reinvestment plan | 11,059 | 1 | — | — | 1 | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 17 | — | — | 17 | — | 17 | — | ||||||||||||||||||||||||||||||||||||||||||
Shares exchanged — benefit plans | (47,069) | (1) | (4) | — | (5) | — | (5) | — | ||||||||||||||||||||||||||||||||||||||||||
Forfeitures of restricted stock | (10,647) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (6) | — | (6) | (2) | (8) | 6 | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 90,127,423 | $ | 1,382 | $ | 4,022 | $ | 917 | $ | 6,321 | $ | 0 | $ | 6,321 | $ | 0 |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Operating Activities: | |||||||||||
Net earnings, including noncontrolling interests | $ | 27 | $ | 678 | |||||||
Adjustments: | |||||||||||
Depreciation and amortization | 248 | 195 | |||||||||
Annuity benefits | 905 | 900 | |||||||||
Realized (gains) losses on investing activities | 332 | (223) | |||||||||
Net (purchases) sales of trading securities | 18 | (2) | |||||||||
Deferred annuity and life policy acquisition costs | (112) | (163) | |||||||||
Change in: | |||||||||||
Reinsurance and other receivables | (597) | (330) | |||||||||
Other assets | 120 | (281) | |||||||||
Insurance claims and reserves | 702 | 475 | |||||||||
Payable to reinsurers | 163 | 115 | |||||||||
Other liabilities | (220) | 417 | |||||||||
Managed investment entities’ assets/liabilities | 99 | (2) | |||||||||
Other operating activities, net | 11 | (88) | |||||||||
Net cash provided by operating activities | 1,696 | 1,691 | |||||||||
Investing Activities: | |||||||||||
Purchases of: | |||||||||||
Fixed maturities | (7,817) | (5,533) | |||||||||
Equity securities | (354) | (161) | |||||||||
Mortgage loans | (197) | (181) | |||||||||
Equity index options and other investments | (699) | (658) | |||||||||
Real estate, property and equipment | (41) | (33) | |||||||||
Proceeds from: | |||||||||||
Maturities and redemptions of fixed maturities | 4,114 | 3,411 | |||||||||
Repayments of mortgage loans | 48 | 76 | |||||||||
Sales of fixed maturities | 3,123 | 569 | |||||||||
Sales of equity securities | 421 | 223 | |||||||||
Sales and settlements of equity index options and other investments | 673 | 486 | |||||||||
Sales of real estate, property and equipment | 7 | 3 | |||||||||
Managed investment entities: | |||||||||||
Purchases of investments | (878) | (1,062) | |||||||||
Proceeds from sales and redemptions of investments | 818 | 1,081 | |||||||||
Other investing activities, net | 10 | 1 | |||||||||
Net cash used in investing activities | (772) | (1,778) | |||||||||
Financing Activities: | |||||||||||
Annuity receipts | 2,968 | 3,821 | |||||||||
Annuity surrenders, benefits and withdrawals | (2,506) | (2,502) | |||||||||
Ceded annuity receipts | (246) | 0 | |||||||||
Net transfers from variable annuity assets | 44 | 45 | |||||||||
Additional long-term borrowings | 635 | 121 | |||||||||
Issuances of managed investment entities’ liabilities | 30 | 0 | |||||||||
Retirements of managed investment entities’ liabilities | (79) | (8) | |||||||||
Issuances of Common Stock | 15 | 29 | |||||||||
Repurchases of Common Stock | (233) | 0 | |||||||||
Cash dividends paid on Common Stock | (119) | (241) | |||||||||
Net cash provided by financing activities | 509 | 1,265 | |||||||||
Net Change in Cash and Cash Equivalents | 1,433 | 1,178 | |||||||||
Cash and cash equivalents at beginning of period | 2,314 | 1,515 | |||||||||
Cash and cash equivalents at end of period | $ | 3,747 | $ | 2,693 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Operating Activities: | |||||||
Net earnings (loss), including noncontrolling interests | $ | (304 | ) | $ | 326 | ||
Adjustments: | |||||||
Depreciation and amortization | 113 | 34 | |||||
Annuity benefits | 276 | 311 | |||||
Realized (gains) losses on investing activities | 550 | (184 | ) | ||||
Net sales of trading securities | 8 | 1 | |||||
Deferred annuity and life policy acquisition costs | (49 | ) | (64 | ) | |||
Change in: | |||||||
Reinsurance and other receivables | 161 | 128 | |||||
Other assets | 410 | (271 | ) | ||||
Insurance claims and reserves | (152 | ) | (112 | ) | |||
Payable to reinsurers | (35 | ) | (22 | ) | |||
Other liabilities | (543 | ) | 304 | ||||
Managed investment entities’ assets/liabilities | 89 | 16 | |||||
Other operating activities, net | 8 | (13 | ) | ||||
Net cash provided by operating activities | 532 | 454 | |||||
Investing Activities: | |||||||
Purchases of: | |||||||
Fixed maturities | (4,140 | ) | (1,801 | ) | |||
Equity securities | (232 | ) | (35 | ) | |||
Mortgage loans | (21 | ) | (38 | ) | |||
Equity index options and other investments | (245 | ) | (220 | ) | |||
Real estate, property and equipment | (9 | ) | (10 | ) | |||
Proceeds from: | |||||||
Maturities and redemptions of fixed maturities | 1,220 | 1,032 | |||||
Repayments of mortgage loans | 4 | 29 | |||||
Sales of fixed maturities | 1,483 | 201 | |||||
Sales of equity securities | 80 | 95 | |||||
Sales and settlements of equity index options and other investments | 248 | 79 | |||||
Sales of real estate, property and equipment | 1 | 1 | |||||
Managed investment entities: | |||||||
Purchases of investments | (414 | ) | (391 | ) | |||
Proceeds from sales and redemptions of investments | 370 | 373 | |||||
Other investing activities, net | 2 | 1 | |||||
Net cash used in investing activities | (1,653 | ) | (684 | ) | |||
Financing Activities: | |||||||
Annuity receipts | 1,410 | 1,395 | |||||
Annuity surrenders, benefits and withdrawals | (813 | ) | (782 | ) | |||
Net transfers from variable annuity assets | 15 | 13 | |||||
Additional long-term borrowings | — | 121 | |||||
Retirements of managed investment entities’ liabilities | (41 | ) | (3 | ) | |||
Issuances of Common Stock | 10 | 7 | |||||
Repurchases of Common Stock | (61 | ) | — | ||||
Cash dividends paid on Common Stock | (40 | ) | (36 | ) | |||
Net cash provided by financing activities | 480 | 715 | |||||
Net Change in Cash and Cash Equivalents | (641 | ) | 485 | ||||
Cash and cash equivalents at beginning of period | 2,314 | 1,515 | |||||
Cash and cash equivalents at end of period | $ | 1,673 | $ | 2,000 |
INDEX TO NOTES | ||||||||||||||||||
A. | Accounting Policies | I. | Goodwill and Other Intangibles | |||||||||||||||
B. | J. | Long-Term Debt | ||||||||||||||||
C. | Segments of Operations | K. | Shareholders’ Equity | |||||||||||||||
D. | Fair Value Measurements | L. | Income Taxes | |||||||||||||||
E. | Investments | M. | Contingencies | |||||||||||||||
F. | Derivatives | N. | Insurance | |||||||||||||||
G. | Deferred Policy Acquisition Costs | O. | Subsequent Events | |||||||||||||||
H. | Managed Investment Entities | |||||||||||||||||
Underwriting gain (loss) | $ | (38) | |||
Net investment income | 1 | ||||
Other income and expenses, net | (3) | ||||
Pretax loss from operations | (40) | ||||
Estimated loss on sale of subsidiaries | (30) | ||||
Total pretax loss from Neon exited lines | (70) | ||||
Tax benefit related to sale of subsidiaries | 73 | ||||
Net earnings from Neon exited lines | $ | 3 |
Estimated sale proceeds, net of expenses | $ | 4 | |||
Assets of businesses to be sold: | |||||
Cash and investments | $ | 461 | |||
Recoverables from reinsurers | 198 | ||||
Prepaid reinsurance premiums | 30 | ||||
Agents’ balances and premiums receivable | 48 | ||||
Other assets | 73 | ||||
Total assets | 810 | ||||
Liabilities of businesses to be sold: | |||||
Unpaid losses and loss adjustment expenses | 598 | ||||
Unearned premiums | 83 | ||||
Payable to reinsurers | 39 | ||||
Other liabilities | 47 | ||||
Total liabilities | 767 | ||||
Reclassify accumulated other comprehensive income | (9) | ||||
Net assets of businesses to be sold | $ | 34 | |||
Pretax loss on subsidiaries recorded in the third quarter of 2020 | $ | (30) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net earned premiums | $ | 42 | $ | 97 | $ | 174 | $ | 274 | |||||||||||||||
Loss and loss adjustment expenses | 60 | 66 | 166 | 172 | |||||||||||||||||||
Commissions and other underwriting expenses | 20 | 50 | 90 | 135 | |||||||||||||||||||
Underwriting loss | (38) | (19) | (82) | (33) | |||||||||||||||||||
Net investment income | 1 | 2 | (5) | 5 | |||||||||||||||||||
Other income and expenses, net | (3) | (3) | (5) | (8) | |||||||||||||||||||
Loss before income taxes and noncontrolling interests | $ | (40) | $ | (20) | $ | (92) | $ | (36) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Property and casualty insurance: | |||||||||||||||||||||||
Premiums earned: | |||||||||||||||||||||||
Specialty | |||||||||||||||||||||||
Property and transportation | $ | 574 | $ | 583 | $ | 1,350 | $ | 1,323 | |||||||||||||||
Specialty casualty | 560 | 658 | 1,663 | 1,921 | |||||||||||||||||||
Specialty financial | 155 | 161 | 455 | 458 | |||||||||||||||||||
Other specialty | 50 | 40 | 132 | 113 | |||||||||||||||||||
Other lines (a) | 42 | 0 | 174 | 0 | |||||||||||||||||||
Total premiums earned | 1,381 | 1,442 | 3,774 | 3,815 | |||||||||||||||||||
Net investment income (b) | 112 | 124 | 277 | 352 | |||||||||||||||||||
Other income | 0 | 5 | 8 | 10 | |||||||||||||||||||
Total property and casualty insurance | 1,493 | 1,571 | 4,059 | 4,177 | |||||||||||||||||||
Annuity: | |||||||||||||||||||||||
Net investment income | 464 | 448 | 1,270 | 1,334 | |||||||||||||||||||
Other income | 30 | 32 | 95 | 90 | |||||||||||||||||||
Total annuity | 494 | 480 | 1,365 | 1,424 | |||||||||||||||||||
Other | 58 | 90 | 194 | 284 | |||||||||||||||||||
Total revenues before realized gains (losses) | 2,045 | 2,141 | 5,618 | 5,885 | |||||||||||||||||||
Realized gains (losses) on securities | 45 | (18) | (302) | 222 | |||||||||||||||||||
Realized losses on subsidiaries | (30) | 0 | (30) | 0 | |||||||||||||||||||
Total revenues | $ | 2,060 | $ | 2,123 | $ | 5,286 | $ | 6,107 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Revenues | |||||||
Property and casualty insurance: | |||||||
Premiums earned: | |||||||
Specialty | |||||||
Property and transportation | $ | 386 | $ | 361 | |||
Specialty casualty | 556 | 629 | |||||
Specialty financial | 156 | 146 | |||||
Other specialty | 40 | 37 | |||||
Other lines (a) | 71 | — | |||||
Total premiums earned | 1,209 | 1,173 | |||||
Net investment income (b) | 93 | 104 | |||||
Other income | 5 | 3 | |||||
Total property and casualty insurance | 1,307 | 1,280 | |||||
Annuity: | |||||||
Net investment income | 422 | 435 | |||||
Other income | 35 | 28 | |||||
Total annuity | 457 | 463 | |||||
Other | 62 | 97 | |||||
Total revenues before realized gains (losses) | 1,826 | 1,840 | |||||
Realized gains (losses) on securities | (551 | ) | 184 | ||||
Total revenues | $ | 1,275 | $ | 2,024 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Earnings (Loss) Before Income Taxes | |||||||
Property and casualty insurance: | |||||||
Underwriting: | |||||||
Specialty | |||||||
Property and transportation | $ | 27 | $ | 39 | |||
Specialty casualty | 52 | 36 | |||||
Specialty financial | 17 | 13 | |||||
Other specialty | (7 | ) | — | ||||
Other lines (a) | (2 | ) | (1 | ) | |||
Total underwriting | 87 | 87 | |||||
Investment and other income, net (b) | 84 | 95 | |||||
Total property and casualty insurance | 171 | 182 | |||||
Annuity | 29 | 90 | |||||
Other (c) | (37 | ) | (43 | ) | |||
Total earnings before realized gains (losses) and income taxes | 163 | 229 | |||||
Realized gains (losses) on securities | (551 | ) | 184 | ||||
Total earnings (loss) before income taxes | $ | (388 | ) | $ | 413 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Earnings (Loss) Before Income Taxes | |||||||||||||||||||||||
Property and casualty insurance: | |||||||||||||||||||||||
Underwriting: | |||||||||||||||||||||||
Specialty | |||||||||||||||||||||||
Property and transportation | $ | 47 | $ | 38 | $ | 107 | $ | 81 | |||||||||||||||
Specialty casualty | 53 | 23 | 132 | 106 | |||||||||||||||||||
Specialty financial | 13 | 26 | 30 | 60 | |||||||||||||||||||
Other specialty | (9) | 1 | (22) | (11) | |||||||||||||||||||
Other lines (a) | (86) | (34) | (133) | (36) | |||||||||||||||||||
Total underwriting | 18 | 54 | 114 | 200 | |||||||||||||||||||
Investment and other income, net (b) | 100 | 118 | 249 | 328 | |||||||||||||||||||
Total property and casualty insurance | 118 | 172 | 363 | 528 | |||||||||||||||||||
Annuity | 78 | 73 | 90 | 234 | |||||||||||||||||||
Other (c) | (77) | (50) | (157) | (135) | |||||||||||||||||||
Total earnings before realized gains (losses) and income taxes | 119 | 195 | 296 | 627 | |||||||||||||||||||
Realized gains (losses) on securities | 45 | (18) | (302) | 222 | |||||||||||||||||||
Realized losses on subsidiaries | (30) | 0 | (30) | 0 | |||||||||||||||||||
Total earnings (loss) before income taxes | $ | 134 | $ | 177 | $ | (36) | $ | 849 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available for sale (“AFS”) fixed maturities: | |||||||||||||||||||||||
U.S. Government and government agencies | $ | 182 | $ | 27 | $ | 15 | $ | 224 | |||||||||||||||
States, municipalities and political subdivisions | 0 | 6,616 | 106 | 6,722 | |||||||||||||||||||
Foreign government | 0 | 195 | 0 | 195 | |||||||||||||||||||
Residential MBS | 0 | 2,959 | 178 | 3,137 | |||||||||||||||||||
Commercial MBS | 0 | 846 | 10 | 856 | |||||||||||||||||||
Collateralized loan obligations | 0 | 4,395 | 212 | 4,607 | |||||||||||||||||||
Other asset-backed securities | 0 | 6,075 | 1,344 | 7,419 | |||||||||||||||||||
Corporate and other | 24 | 23,528 | 1,481 | 25,033 | |||||||||||||||||||
Total AFS fixed maturities | 206 | 44,641 | 3,346 | 48,193 | |||||||||||||||||||
Trading fixed maturities | 0 | 92 | 0 | 92 | |||||||||||||||||||
Equity securities | 1,090 | 72 | 444 | 1,606 | |||||||||||||||||||
Equity index call options | 0 | 697 | 0 | 697 | |||||||||||||||||||
Assets of managed investment entities (“MIE”) | 148 | 4,554 | 15 | 4,717 | |||||||||||||||||||
Variable annuity assets (separate accounts) (*) | 0 | 603 | 0 | 603 | |||||||||||||||||||
Other assets — derivatives | 0 | 114 | 0 | 114 | |||||||||||||||||||
Total assets accounted for at fair value | $ | 1,444 | $ | 50,773 | $ | 3,805 | $ | 56,022 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Liabilities of managed investment entities | $ | 142 | $ | 4,384 | $ | 15 | $ | 4,541 | |||||||||||||||
Derivatives in annuity benefits accumulated | 0 | 0 | 3,657 | 3,657 | |||||||||||||||||||
Other liabilities — derivatives | 0 | 9 | 0 | 9 | |||||||||||||||||||
Total liabilities accounted for at fair value | $ | 142 | $ | 4,393 | $ | 3,672 | $ | 8,207 | |||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available for sale fixed maturities: | |||||||||||||||||||||||
U.S. Government and government agencies | $ | 151 | $ | 43 | $ | 15 | $ | 209 | |||||||||||||||
States, municipalities and political subdivisions | 0 | 6,858 | 105 | 6,963 | |||||||||||||||||||
Foreign government | 0 | 172 | 0 | 172 | |||||||||||||||||||
Residential MBS | 0 | 2,987 | 173 | 3,160 | |||||||||||||||||||
Commercial MBS | 0 | 892 | 35 | 927 | |||||||||||||||||||
Collateralized loan obligations | 0 | 4,265 | 15 | 4,280 | |||||||||||||||||||
Other asset-backed securities | 0 | 5,842 | 1,286 | 7,128 | |||||||||||||||||||
Corporate and other | 29 | 21,879 | 1,758 | 23,666 | |||||||||||||||||||
Total AFS fixed maturities | 180 | 42,938 | 3,387 | 46,505 | |||||||||||||||||||
Trading fixed maturities | 2 | 111 | 0 | 113 | |||||||||||||||||||
Equity securities | 1,433 | 67 | 437 | 1,937 | |||||||||||||||||||
Equity index call options | 0 | 924 | 0 | 924 | |||||||||||||||||||
Assets of managed investment entities | 213 | 4,506 | 17 | 4,736 | |||||||||||||||||||
Variable annuity assets (separate accounts) (*) | 0 | 628 | 0 | 628 | |||||||||||||||||||
Other assets — derivatives | 0 | 50 | 0 | 50 | |||||||||||||||||||
Total assets accounted for at fair value | $ | 1,828 | $ | 49,224 | $ | 3,841 | $ | 54,893 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Liabilities of managed investment entities | $ | 206 | $ | 4,349 | $ | 16 | $ | 4,571 | |||||||||||||||
Derivatives in annuity benefits accumulated | 0 | 0 | 3,730 | 3,730 | |||||||||||||||||||
Other liabilities — derivatives | 0 | 10 | 0 | 10 | |||||||||||||||||||
Total liabilities accounted for at fair value | $ | 206 | $ | 4,359 | $ | 3,746 | $ | 8,311 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
March 31, 2020 | |||||||||||||||
Assets: | |||||||||||||||
Available for sale (“AFS”) fixed maturities: | |||||||||||||||
U.S. Government and government agencies | $ | 158 | $ | 32 | $ | 15 | $ | 205 | |||||||
States, municipalities and political subdivisions | — | 6,801 | 105 | 6,906 | |||||||||||
Foreign government | — | 170 | — | 170 | |||||||||||
Residential MBS | — | 2,968 | 163 | 3,131 | |||||||||||
Commercial MBS | — | 875 | 32 | 907 | |||||||||||
Collateralized loan obligations | — | 3,970 | 168 | 4,138 | |||||||||||
Other asset-backed securities | — | 5,728 | 1,030 | 6,758 | |||||||||||
Corporate and other | 25 | 22,346 | 1,548 | 23,919 | |||||||||||
Total AFS fixed maturities | 183 | 42,890 | 3,061 | 46,134 | |||||||||||
Trading fixed maturities | 1 | 95 | — | 96 | |||||||||||
Equity securities | 1,056 | 67 | 436 | 1,559 | |||||||||||
Equity index call options | — | 209 | — | 209 | |||||||||||
Assets of managed investment entities (“MIE”) | 169 | 3,841 | 16 | 4,026 | |||||||||||
Variable annuity assets (separate accounts) (*) | — | 497 | — | 497 | |||||||||||
Other assets — derivatives | — | 125 | — | 125 | |||||||||||
Total assets accounted for at fair value | $ | 1,409 | $ | 47,724 | $ | 3,513 | $ | 52,646 | |||||||
Liabilities: | |||||||||||||||
Liabilities of managed investment entities | $ | 162 | $ | 3,688 | $ | 15 | $ | 3,865 | |||||||
Derivatives in annuity benefits accumulated | — | — | 3,099 | 3,099 | |||||||||||
Other liabilities — derivatives | — | 10 | — | 10 | |||||||||||
Total liabilities accounted for at fair value | $ | 162 | $ | 3,698 | $ | 3,114 | $ | 6,974 | |||||||
December 31, 2019 | |||||||||||||||
Assets: | |||||||||||||||
Available for sale fixed maturities: | |||||||||||||||
U.S. Government and government agencies | $ | 151 | $ | 43 | $ | 15 | $ | 209 | |||||||
States, municipalities and political subdivisions | — | 6,858 | 105 | 6,963 | |||||||||||
Foreign government | — | 172 | — | 172 | |||||||||||
Residential MBS | — | 2,987 | 173 | 3,160 | |||||||||||
Commercial MBS | — | 892 | 35 | 927 | |||||||||||
Collateralized loan obligations | — | 4,265 | 15 | 4,280 | |||||||||||
Other asset-backed securities | — | 5,842 | 1,286 | 7,128 | |||||||||||
Corporate and other | 29 | 21,879 | 1,758 | 23,666 | |||||||||||
Total AFS fixed maturities | 180 | 42,938 | 3,387 | 46,505 | |||||||||||
Trading fixed maturities | 2 | 111 | — | 113 | |||||||||||
Equity securities | 1,433 | 67 | 437 | 1,937 | |||||||||||
Equity index call options | — | 924 | — | 924 | |||||||||||
Assets of managed investment entities | 213 | 4,506 | 17 | 4,736 | |||||||||||
Variable annuity assets (separate accounts) (*) | — | 628 | — | 628 | |||||||||||
Other assets — derivatives | — | 50 | — | 50 | |||||||||||
Total assets accounted for at fair value | $ | 1,828 | $ | 49,224 | $ | 3,841 | $ | 54,893 | |||||||
Liabilities: | |||||||||||||||
Liabilities of managed investment entities | $ | 206 | $ | 4,349 | $ | 16 | $ | 4,571 | |||||||
Derivatives in annuity benefits accumulated | — | — | 3,730 | 3,730 | |||||||||||
Other liabilities — derivatives | — | 10 | — | 10 | |||||||||||
Total liabilities accounted for at fair value | $ | 206 | $ | 4,359 | $ | 3,746 | $ | 8,311 |
Unobservable Input | Range | |||||||||||||
Adjustment for insurance subsidiary’s credit risk | ||||||||||||||
Risk margin for uncertainty in cash flows | ||||||||||||||
Surrenders | 4% – | |||||||||||||
Partial surrenders | 2% – | |||||||||||||
Annuitizations | 0.1% – 1% of indexed account value | |||||||||||||
Deaths | ||||||||||||||
Budgeted option costs |
Total realized/unrealized gains (losses) included in | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | Net earnings (loss) | Other comprehensive income (loss) | Purchases and issuances | Sales and settlements | Transfer into Level 3 | Transfer out of Level 3 | Balance at September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||
AFS fixed maturities: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agency | $ | 15 | $ | 1 | $ | (1) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 15 | |||||||||||||||||||||||||||||||
State and municipal | 107 | 0 | 0 | 0 | (1) | 0 | 0 | 106 | |||||||||||||||||||||||||||||||||||||||
Residential MBS | 156 | (4) | 1 | 0 | (6) | 49 | (18) | 178 | |||||||||||||||||||||||||||||||||||||||
Commercial MBS | 33 | (1) | 0 | 0 | 0 | 0 | (22) | 10 | |||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 207 | (1) | 6 | 0 | 0 | 0 | 0 | 212 | |||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 1,328 | (2) | 13 | 39 | (75) | 77 | (36) | 1,344 | |||||||||||||||||||||||||||||||||||||||
Corporate and other | 1,525 | 6 | 4 | 53 | (77) | 121 | (151) | 1,481 | |||||||||||||||||||||||||||||||||||||||
Total AFS fixed maturities | 3,371 | (1) | 23 | 92 | (159) | 247 | (227) | 3,346 | |||||||||||||||||||||||||||||||||||||||
Equity securities | 452 | (10) | 0 | 12 | 0 | 0 | (10) | 444 | |||||||||||||||||||||||||||||||||||||||
Assets of MIE | 17 | (2) | 0 | 0 | 0 | 0 | 0 | 15 | |||||||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,840 | $ | (13) | $ | 23 | $ | 104 | $ | (159) | $ | 247 | $ | (237) | $ | 3,805 | |||||||||||||||||||||||||||||||
Embedded derivatives (a) | $ | (3,675) | $ | (5) | $ | 0 | $ | (56) | $ | 79 | $ | 0 | $ | 0 | $ | (3,657) | |||||||||||||||||||||||||||||||
Total Level 3 liabilities (b) | $ | (3,675) | $ | (5) | $ | 0 | $ | (56) | $ | 79 | $ | 0 | $ | 0 | $ | (3,657) |
Total realized/unrealized gains (losses) included in | |||||||||||||||||||||||||||||||
Balance at December 31, 2019 | Net earnings | Other comprehensive income (loss) | Purchases and issuances | Sales and settlements | Transfer into Level 3 | Transfer out of Level 3 | Balance at March 31, 2020 | ||||||||||||||||||||||||
AFS fixed maturities: | |||||||||||||||||||||||||||||||
U.S. government agency | $ | 15 | $ | 1 | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | 15 | ||||||||||||||
State and municipal | 105 | — | 1 | — | (1 | ) | — | — | 105 | ||||||||||||||||||||||
Residential MBS | 173 | 5 | (12 | ) | — | (5 | ) | 2 | — | 163 | |||||||||||||||||||||
Commercial MBS | 35 | — | — | — | (3 | ) | — | — | 32 | ||||||||||||||||||||||
Collateralized loan obligations | 15 | (7 | ) | 2 | — | — | 158 | — | 168 | ||||||||||||||||||||||
Other asset-backed securities | 1,286 | (14 | ) | (11 | ) | 77 | (178 | ) | 13 | (143 | ) | 1,030 | |||||||||||||||||||
Corporate and other | 1,758 | (3 | ) | (27 | ) | 119 | (36 | ) | 5 | (268 | ) | 1,548 | |||||||||||||||||||
Total AFS fixed maturities | 3,387 | (18 | ) | (48 | ) | 196 | (223 | ) | 178 | (411 | ) | 3,061 | |||||||||||||||||||
Equity securities | 437 | (24 | ) | — | 6 | — | 17 | — | 436 | ||||||||||||||||||||||
Assets of MIE | 17 | (1 | ) | — | — | — | — | — | 16 | ||||||||||||||||||||||
Total Level 3 assets | $ | 3,841 | $ | (43 | ) | $ | (48 | ) | $ | 202 | $ | (223 | ) | $ | 195 | $ | (411 | ) | $ | 3,513 | |||||||||||
Embedded derivatives | $ | (3,730 | ) | $ | 647 | $ | — | $ | (78 | ) | $ | 62 | $ | — | $ | — | $ | (3,099 | ) | ||||||||||||
Total Level 3 liabilities (*) | $ | (3,730 | ) | $ | 647 | $ | — | $ | (78 | ) | $ | 62 | $ | — | $ | — | $ | (3,099 | ) |
Total realized/unrealized gains (losses) included in | |||||||||||||||||||||||||||||||
Balance at December 31, 2018 | Net earnings | Other comprehensive income (loss) | Purchases and issuances | Sales and settlements | Transfer into Level 3 | Transfer out of Level 3 | Balance at March 31, 2019 | ||||||||||||||||||||||||
AFS fixed maturities: | |||||||||||||||||||||||||||||||
U.S. government agency | $ | 9 | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | $ | 8 | ||||||||||||||
State and municipal | 59 | — | 5 | — | (1 | ) | — | — | 63 | ||||||||||||||||||||||
Residential MBS | 197 | 5 | (5 | ) | — | (6 | ) | — | (22 | ) | 169 | ||||||||||||||||||||
Commercial MBS | 56 | — | — | — | (1 | ) | — | — | 55 | ||||||||||||||||||||||
Collateralized loan obligations | 116 | — | — | — | — | — | — | 116 | |||||||||||||||||||||||
Other asset-backed securities | 731 | (3 | ) | 8 | 75 | (114 | ) | — | (143 | ) | 554 | ||||||||||||||||||||
Corporate and other | 1,996 | 2 | 31 | 432 | (88 | ) | — | (27 | ) | 2,346 | |||||||||||||||||||||
Total AFS fixed maturities | 3,164 | 4 | 39 | 507 | (211 | ) | — | (192 | ) | 3,311 | |||||||||||||||||||||
Equity securities | 336 | 1 | — | 1 | — | 16 | — | 354 | |||||||||||||||||||||||
Assets of MIE | 21 | (1 | ) | — | — | — | — | — | 20 | ||||||||||||||||||||||
Total Level 3 assets | $ | 3,521 | $ | 4 | $ | 39 | $ | 508 | $ | (211 | ) | $ | 16 | $ | (192 | ) | $ | 3,685 | |||||||||||||
Embedded derivatives | $ | (2,720 | ) | $ | (462 | ) | $ | — | $ | (112 | ) | $ | 47 | $ | — | $ | — | $ | (3,247 | ) | |||||||||||
Total Level 3 liabilities (*) | $ | (2,720 | ) | $ | (462 | ) | $ | — | $ | (112 | ) | $ | 47 | $ | — | $ | — | $ | (3,247 | ) |
Total realized/unrealized gains (losses) included in | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | Net earnings (loss) | Other comprehensive income (loss) | Purchases and issuances | Sales and settlements | Transfer into Level 3 | Transfer out of Level 3 | Balance at September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
AFS fixed maturities: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agency | $ | 8 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 8 | |||||||||||||||||||||||||||||||
State and municipal | 82 | 0 | 2 | 0 | 0 | 18 | 0 | 102 | |||||||||||||||||||||||||||||||||||||||
Residential MBS | 139 | 1 | (1) | 0 | (4) | 22 | (1) | 156 | |||||||||||||||||||||||||||||||||||||||
Commercial MBS | 50 | 1 | 0 | 0 | 0 | 4 | 0 | 55 | |||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 50 | (2) | 1 | 8 | 0 | 0 | 0 | 57 | |||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 367 | 0 | 1 | 49 | (3) | 0 | 0 | 414 | |||||||||||||||||||||||||||||||||||||||
Corporate and other | 2,014 | 0 | 20 | 324 | (81) | 10 | (1) | 2,286 | |||||||||||||||||||||||||||||||||||||||
Total AFS fixed maturities | 2,710 | 0 | 23 | 381 | (88) | 54 | (2) | 3,078 | |||||||||||||||||||||||||||||||||||||||
Equity securities | 377 | (7) | 0 | 18 | (2) | 34 | 0 | 420 | |||||||||||||||||||||||||||||||||||||||
Assets of MIE | 19 | (1) | 0 | 0 | 0 | 0 | 0 | 18 | |||||||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,106 | $ | (8) | $ | 23 | $ | 399 | $ | (90) | $ | 88 | $ | (2) | $ | 3,516 | |||||||||||||||||||||||||||||||
Embedded derivatives (a) | $ | (3,541) | $ | 70 | $ | 0 | $ | (63) | $ | 65 | $ | 0 | $ | 0 | $ | (3,469) | |||||||||||||||||||||||||||||||
Total Level 3 liabilities (b) | $ | (3,541) | $ | 70 | $ | 0 | $ | (63) | $ | 65 | $ | 0 | $ | 0 | $ | (3,469) |
Total realized/unrealized gains (losses) included in | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | Net earnings (loss) | Other comprehensive income (loss) | Purchases and issuances | Sales and settlements | Transfer into Level 3 | Transfer out of Level 3 | Balance at September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||
AFS fixed maturities: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agency | $ | 15 | $ | 3 | $ | (3) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 15 | |||||||||||||||||||||||||||||||
State and municipal | 105 | 0 | 6 | 0 | (3) | 0 | (2) | 106 | |||||||||||||||||||||||||||||||||||||||
Residential MBS | 173 | 1 | (7) | 0 | (15) | 51 | (25) | 178 | |||||||||||||||||||||||||||||||||||||||
Commercial MBS | 35 | 0 | 0 | 0 | (3) | 0 | (22) | 10 | |||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 15 | (11) | 21 | 0 | 0 | 187 | 0 | 212 | |||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 1,286 | (16) | 6 | 314 | (278) | 211 | (179) | 1,344 | |||||||||||||||||||||||||||||||||||||||
Corporate and other | 1,758 | 4 | 24 | 220 | (133) | 130 | (522) | 1,481 | |||||||||||||||||||||||||||||||||||||||
Total AFS fixed maturities | 3,387 | (19) | 47 | 534 | (432) | 579 | (750) | 3,346 | |||||||||||||||||||||||||||||||||||||||
Equity securities | 437 | (35) | 0 | 35 | 0 | 17 | (10) | 444 | |||||||||||||||||||||||||||||||||||||||
Assets of MIE | 17 | (4) | 0 | 0 | 0 | 2 | 0 | 15 | |||||||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,841 | $ | (58) | $ | 47 | $ | 569 | $ | (432) | $ | 598 | $ | (760) | $ | 3,805 | |||||||||||||||||||||||||||||||
Embedded derivatives (a) | $ | (3,730) | $ | 41 | $ | 0 | $ | (180) | $ | 212 | $ | 0 | $ | 0 | $ | (3,657) | |||||||||||||||||||||||||||||||
Total Level 3 liabilities (b) | $ | (3,730) | $ | 41 | $ | 0 | $ | (180) | $ | 212 | $ | 0 | $ | 0 | $ | (3,657) |
Total realized/unrealized gains (losses) included in | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | Net earnings (loss) | Other comprehensive income (loss) | Purchases and issuances | Sales and settlements | Transfer into Level 3 | Transfer out of Level 3 | Balance at September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
AFS fixed maturities: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agency | $ | 9 | $ | 0 | $ | 0 | $ | 0 | $ | (1) | $ | 0 | $ | 0 | $ | 8 | |||||||||||||||||||||||||||||||
State and municipal | 59 | — | 9 | 0 | (2) | 36 | 0 | 102 | |||||||||||||||||||||||||||||||||||||||
Residential MBS | 197 | 10 | (6) | 0 | (14) | 24 | (55) | 156 | |||||||||||||||||||||||||||||||||||||||
Commercial MBS | 56 | 3 | 0 | 0 | (3) | 4 | (5) | 55 | |||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 116 | (5) | 7 | 8 | 0 | 13 | (82) | 57 | |||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 731 | 0 | 6 | 141 | (135) | 0 | (329) | 414 | |||||||||||||||||||||||||||||||||||||||
Corporate and other | 1,996 | 2 | 71 | 985 | (330) | 12 | (450) | 2,286 | |||||||||||||||||||||||||||||||||||||||
Total AFS fixed maturities | 3,164 | 10 | 87 | 1,134 | (485) | 89 | (921) | 3,078 | |||||||||||||||||||||||||||||||||||||||
Equity securities | 336 | (7) | 0 | 38 | (3) | 56 | 0 | 420 | |||||||||||||||||||||||||||||||||||||||
Assets of MIE | 21 | (3) | 0 | 0 | 0 | 0 | 0 | 18 | |||||||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,521 | $ | 0 | $ | 87 | $ | 1,172 | $ | (488) | $ | 145 | $ | (921) | $ | 3,516 | |||||||||||||||||||||||||||||||
Embedded derivatives (a) | $ | (2,720) | $ | (643) | $ | 0 | $ | (276) | $ | 170 | $ | 0 | $ | 0 | $ | (3,469) | |||||||||||||||||||||||||||||||
Total Level 3 liabilities (b) | $ | (2,720) | $ | (643) | $ | 0 | $ | (276) | $ | 170 | $ | 0 | $ | 0 | $ | (3,469) |
Carrying | Fair Value | ||||||||||||||||||||||||||||
Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 3,747 | $ | 3,747 | $ | 3,747 | $ | 0 | $ | 0 | |||||||||||||||||||
Mortgage loans | 1,482 | 1,507 | 0 | 0 | 1,507 | ||||||||||||||||||||||||
Policy loans | 154 | 154 | 0 | 0 | 154 | ||||||||||||||||||||||||
Total financial assets not accounted for at fair value | $ | 5,383 | $ | 5,408 | $ | 3,747 | $ | 0 | $ | 1,661 | |||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Annuity benefits accumulated (*) | $ | 41,082 | $ | 42,938 | $ | 0 | $ | 0 | $ | 42,938 | |||||||||||||||||||
Long-term debt | 2,108 | 2,397 | 0 | 2,394 | 3 | ||||||||||||||||||||||||
Total financial liabilities not accounted for at fair value | $ | 43,190 | $ | 45,335 | $ | 0 | $ | 2,394 | $ | 42,941 | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,314 | $ | 2,314 | $ | 2,314 | $ | 0 | $ | 0 | |||||||||||||||||||
Mortgage loans | 1,329 | 1,346 | 0 | 0 | 1,346 | ||||||||||||||||||||||||
Policy loans | 164 | 164 | 0 | 0 | 164 | ||||||||||||||||||||||||
Total financial assets not accounted for at fair value | $ | 3,807 | $ | 3,824 | $ | 2,314 | $ | 0 | $ | 1,510 | |||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Annuity benefits accumulated (*) | $ | 40,159 | $ | 40,182 | $ | 0 | $ | 0 | $ | 40,182 | |||||||||||||||||||
Long-term debt | 1,473 | 1,622 | 0 | 1,619 | 3 | ||||||||||||||||||||||||
Total financial liabilities not accounted for at fair value | $ | 41,632 | $ | 41,804 | $ | 0 | $ | 1,619 | $ | 40,185 |
Carrying | Fair Value | ||||||||||||||||||
Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
March 31, 2020 | |||||||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 1,673 | $ | 1,673 | $ | 1,673 | $ | — | $ | — | |||||||||
Mortgage loans | 1,346 | 1,350 | — | — | 1,350 | ||||||||||||||
Policy loans | 161 | 161 | — | — | 161 | ||||||||||||||
Total financial assets not accounted for at fair value | $ | 3,180 | $ | 3,184 | $ | 1,673 | $ | — | $ | 1,511 | |||||||||
Financial liabilities: | |||||||||||||||||||
Annuity benefits accumulated (*) | $ | 40,218 | $ | 39,773 | $ | — | $ | — | $ | 39,773 | |||||||||
Long-term debt | 1,473 | 1,411 | — | 1,408 | 3 | ||||||||||||||
Total financial liabilities not accounted for at fair value | $ | 41,691 | $ | 41,184 | $ | — | $ | 1,408 | $ | 39,776 | |||||||||
December 31, 2019 | |||||||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 2,314 | $ | 2,314 | $ | 2,314 | $ | — | $ | — | |||||||||
Mortgage loans | 1,329 | 1,346 | — | — | 1,346 | ||||||||||||||
Policy loans | 164 | 164 | — | — | 164 | ||||||||||||||
Total financial assets not accounted for at fair value | $ | 3,807 | $ | 3,824 | $ | 2,314 | $ | — | $ | 1,510 | |||||||||
Financial liabilities: | |||||||||||||||||||
Annuity benefits accumulated (*) | $ | 40,159 | $ | 40,182 | $ | — | $ | — | $ | 40,182 | |||||||||
Long-term debt | 1,473 | 1,622 | — | 1,619 | 3 | ||||||||||||||
Total financial liabilities not accounted for at fair value | $ | 41,632 | $ | 41,804 | $ | — | $ | 1,619 | $ | 40,185 |
Amortized Cost | Allowance for Expected Credit Losses | Gross Unrealized | Net Unrealized | Fair Value | |||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
U.S. Government and government agencies | $ | 211 | $ | 0 | $ | 13 | $ | 0 | $ | 13 | $ | 224 | |||||||||||||||||||||||
States, municipalities and political subdivisions | 6,150 | 0 | 575 | (3) | 572 | 6,722 | |||||||||||||||||||||||||||||
Foreign government | 187 | 0 | 8 | 0 | 8 | 195 | |||||||||||||||||||||||||||||
Residential MBS | 2,882 | 3 | 264 | (6) | 258 | 3,137 | |||||||||||||||||||||||||||||
Commercial MBS | 814 | 0 | 44 | (2) | 42 | 856 | |||||||||||||||||||||||||||||
Collateralized loan obligations | 4,643 | 20 | 25 | (41) | (16) | 4,607 | |||||||||||||||||||||||||||||
Other asset-backed securities | 7,405 | 16 | 154 | (124) | 30 | 7,419 | |||||||||||||||||||||||||||||
Corporate and other | 23,005 | 15 | 2,121 | (78) | 2,043 | 25,033 | |||||||||||||||||||||||||||||
Total fixed maturities | $ | 45,297 | $ | 54 | $ | 3,204 | $ | (254) | $ | 2,950 | $ | 48,193 | |||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
U.S. Government and government agencies | $ | 199 | $ | 0 | $ | 10 | $ | 0 | $ | 10 | $ | 209 | |||||||||||||||||||||||
States, municipalities and political subdivisions | 6,604 | 0 | 363 | (4) | 359 | 6,963 | |||||||||||||||||||||||||||||
Foreign government | 170 | 0 | 3 | (1) | 2 | 172 | |||||||||||||||||||||||||||||
Residential MBS | 2,900 | 0 | 265 | (5) | 260 | 3,160 | |||||||||||||||||||||||||||||
Commercial MBS | 896 | 0 | 31 | 0 | 31 | 927 | |||||||||||||||||||||||||||||
Collateralized loan obligations | 4,307 | 0 | 10 | (37) | (27) | 4,280 | |||||||||||||||||||||||||||||
Other asset-backed securities | 6,992 | 0 | 156 | (20) | 136 | 7,128 | |||||||||||||||||||||||||||||
Corporate and other | 22,456 | 0 | 1,231 | (21) | 1,210 | 23,666 | |||||||||||||||||||||||||||||
Total fixed maturities | $ | 44,524 | $ | 0 | $ | 2,069 | $ | (88) | $ | 1,981 | $ | 46,505 |
Amortized Cost | Allowance for Expected Credit Losses | Gross Unrealized | Net Unrealized | Fair Value | |||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||
March 31, 2020 | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
U.S. Government and government agencies | $ | 190 | $ | — | $ | 15 | $ | — | $ | 15 | $ | 205 | |||||||||||
States, municipalities and political subdivisions | 6,526 | — | 388 | (8 | ) | 380 | 6,906 | ||||||||||||||||
Foreign government | 164 | — | 6 | — | 6 | 170 | |||||||||||||||||
Residential MBS | 3,078 | 6 | 133 | (74 | ) | 59 | 3,131 | ||||||||||||||||
Commercial MBS | 892 | — | 20 | (5 | ) | 15 | 907 | ||||||||||||||||
Collateralized loan obligations | 4,456 | 17 | 5 | (306 | ) | (301 | ) | 4,138 | |||||||||||||||
Other asset-backed securities | 7,069 | 14 | 65 | (362 | ) | (297 | ) | 6,758 | |||||||||||||||
Corporate and other | 23,726 | 24 | 786 | (569 | ) | 217 | 23,919 | ||||||||||||||||
Total fixed maturities | $ | 46,101 | $ | 61 | $ | 1,418 | $ | (1,324 | ) | $ | 94 | $ | 46,134 | ||||||||||
December 31, 2019 | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
U.S. Government and government agencies | $ | 199 | $ | — | $ | 10 | $ | — | $ | 10 | $ | 209 | |||||||||||
States, municipalities and political subdivisions | 6,604 | — | 363 | (4 | ) | 359 | 6,963 | ||||||||||||||||
Foreign government | 170 | — | 3 | (1 | ) | 2 | 172 | ||||||||||||||||
Residential MBS | 2,900 | — | 265 | (5 | ) | 260 | 3,160 | ||||||||||||||||
Commercial MBS | 896 | — | 31 | — | 31 | 927 | |||||||||||||||||
Collateralized loan obligations | 4,307 | — | 10 | (37 | ) | (27 | ) | 4,280 | |||||||||||||||
Other asset-backed securities | 6,992 | — | 156 | (20 | ) | 136 | 7,128 | ||||||||||||||||
Corporate and other | 22,456 | — | 1,231 | (21 | ) | 1,210 | 23,666 | ||||||||||||||||
Total fixed maturities | $ | 44,524 | $ | — | $ | 2,069 | $ | (88 | ) | $ | 1,981 | $ | 46,505 |
March 31, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual Cost | over (under) | Actual Cost | over (under) | Actual Cost | over (under) | Actual Cost | over (under) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Cost | Fair Value | Cost | Fair Value | Cost | Fair Value | Cost | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stocks | $ | 1,315 | $ | 919 | $ | (396 | ) | $ | 1,164 | $ | 1,283 | $ | 119 | Common stocks | $ | 1,145 | $ | 874 | $ | (271) | $ | 1,164 | $ | 1,283 | $ | 119 | ||||||||||||||||||||||||||||||||
Perpetual preferred stocks | 685 | 640 | (45 | ) | 640 | 654 | 14 | Perpetual preferred stocks | 724 | 732 | 8 | 640 | 654 | 14 | ||||||||||||||||||||||||||||||||||||||||||||
Total equity securities carried at fair value | $ | 2,000 | $ | 1,559 | $ | (441 | ) | $ | 1,804 | $ | 1,937 | $ | 133 | Total equity securities carried at fair value | $ | 1,869 | $ | 1,606 | $ | (263) | $ | 1,804 | $ | 1,937 | $ | 133 |
Less Than Twelve Months | Twelve Months or More | ||||||||||||||||||||||||||||||||||
Unrealized Loss | Fair Value | Fair Value as % of Cost | Unrealized Loss | Fair Value | Fair Value as % of Cost | ||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
U.S. Government and government agencies | $ | 0 | $ | 19 | 100 | % | $ | 0 | $ | 0 | 0 | % | |||||||||||||||||||||||
States, municipalities and political subdivisions | (3) | 120 | 98 | % | 0 | 15 | 100 | % | |||||||||||||||||||||||||||
Foreign government | 0 | 5 | 100 | % | 0 | 0 | 0 | % | |||||||||||||||||||||||||||
Residential MBS | (4) | 144 | 97 | % | (2) | 35 | 95 | % | |||||||||||||||||||||||||||
Commercial MBS | (2) | 47 | 96 | % | 0 | 0 | 0 | % | |||||||||||||||||||||||||||
Collateralized loan obligations | (11) | 1,248 | 99 | % | (30) | 1,393 | 98 | % | |||||||||||||||||||||||||||
Other asset-backed securities | (107) | 2,164 | 95 | % | (17) | 245 | 94 | % | |||||||||||||||||||||||||||
Corporate and other | (67) | 1,791 | 96 | % | (11) | 196 | 95 | % | |||||||||||||||||||||||||||
Total fixed maturities | $ | (194) | $ | 5,538 | 97 | % | $ | (60) | $ | 1,884 | 97 | % | |||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
U.S. Government and government agencies | $ | 0 | $ | 16 | 100 | % | $ | 0 | $ | 11 | 100 | % | |||||||||||||||||||||||
States, municipalities and political subdivisions | (3) | 254 | 99 | % | (1) | 82 | 99 | % | |||||||||||||||||||||||||||
Foreign government | (1) | 70 | 99 | % | 0 | 0 | 0 | % | |||||||||||||||||||||||||||
Residential MBS | (4) | 509 | 99 | % | (1) | 69 | 99 | % | |||||||||||||||||||||||||||
Commercial MBS | 0 | 17 | 100 | % | 0 | 0 | 0 | % | |||||||||||||||||||||||||||
Collateralized loan obligations | (11) | 1,284 | 99 | % | (26) | 1,728 | 99 | % | |||||||||||||||||||||||||||
Other asset-backed securities | (12) | 1,211 | 99 | % | (8) | 123 | 94 | % | |||||||||||||||||||||||||||
Corporate and other | (13) | 1,100 | 99 | % | (8) | 211 | 96 | % | |||||||||||||||||||||||||||
Total fixed maturities | $ | (44) | $ | 4,461 | 99 | % | $ | (44) | $ | 2,224 | 98 | % |
Less Than Twelve Months | Twelve Months or More | ||||||||||||||||||||
Unrealized Loss | Fair Value | Fair Value as % of Cost | Unrealized Loss | Fair Value | Fair Value as % of Cost | ||||||||||||||||
March 31, 2020 | |||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||
U.S. Government and government agencies | $ | — | $ | — | — | % | $ | — | $ | 1 | 100 | % | |||||||||
States, municipalities and political subdivisions | (8 | ) | 235 | 97 | % | — | 26 | 100 | % | ||||||||||||
Foreign government | — | 3 | 100 | % | — | — | — | % | |||||||||||||
Residential MBS | (70 | ) | 1,562 | 96 | % | (4 | ) | 31 | 89 | % | |||||||||||
Commercial MBS | (5 | ) | 117 | 96 | % | — | — | — | % | ||||||||||||
Collateralized loan obligations | (141 | ) | 2,234 | 94 | % | (165 | ) | 1,691 | 91 | % | |||||||||||
Other asset-backed securities | (352 | ) | 4,597 | 93 | % | (10 | ) | 94 | 90 | % | |||||||||||
Corporate and other | (554 | ) | 7,738 | 93 | % | (15 | ) | 98 | 87 | % | |||||||||||
Total fixed maturities | $ | (1,130 | ) | $ | 16,486 | 94 | % | $ | (194 | ) | $ | 1,941 | 91 | % | |||||||
December 31, 2019 | |||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||
U.S. Government and government agencies | $ | — | $ | 16 | 100 | % | $ | — | $ | 11 | 100 | % | |||||||||
States, municipalities and political subdivisions | (3 | ) | 254 | 99 | % | (1 | ) | 82 | 99 | % | |||||||||||
Foreign government | (1 | ) | 70 | 99 | % | — | — | — | % | ||||||||||||
Residential MBS | (4 | ) | 509 | 99 | % | (1 | ) | 69 | 99 | % | |||||||||||
Commercial MBS | — | 17 | 100 | % | — | — | — | % | |||||||||||||
Collateralized loan obligations | (11 | ) | 1,284 | 99 | % | (26 | ) | 1,728 | 99 | % | |||||||||||
Other asset-backed securities | (12 | ) | 1,211 | 99 | % | (8 | ) | 123 | 94 | % | |||||||||||
Corporate and other | (13 | ) | 1,100 | 99 | % | (8 | ) | 211 | 96 | % | |||||||||||
Total fixed maturities | $ | (44 | ) | $ | 4,461 | 99 | % | $ | (44 | ) | $ | 2,224 | 98 | % |
Structured Securities (*) | Corporate and Other | Total | |||||||||||||||
Balance at June 30 | $ | 39 | $ | 22 | $ | 61 | |||||||||||
Initial allowance for purchased securities with credit deterioration | 0 | 0 | 0 | ||||||||||||||
Provision for expected credit losses on securities with no previous allowance | 0 | 0 | 0 | ||||||||||||||
Additions (reductions) to previously recognized expected credit losses | 1 | (4) | (3) | ||||||||||||||
Reductions due to sales or redemptions | (1) | (3) | (4) | ||||||||||||||
Balance at September 30 | $ | 39 | $ | 15 | $ | 54 | |||||||||||
Balance at January 1 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Impact of adoption of new accounting policy | 0 | 0 | 0 | ||||||||||||||
Initial allowance for purchased securities with credit deterioration | 1 | 0 | 1 | ||||||||||||||
Provision for expected credit losses on securities with no previous allowance | 39 | 28 | 67 | ||||||||||||||
Additions (reductions) to previously recognized expected credit losses | 0 | (10) | (10) | ||||||||||||||
Reductions due to sales or redemptions | (1) | (3) | (4) | ||||||||||||||
Balance at September 30 | $ | 39 | $ | 15 | $ | 54 |
2020 | |||
Balance at January 1 | $ | — | |
Impact of adoption of new accounting policy | — | ||
Provision for expected credit losses | 61 | ||
Reductions due to sales or redemptions | — | ||
Balance at March 31 | $ | 61 |
Amortized | Fair Value | ||||||||||||||||
Cost, net (*) | Amount | % | |||||||||||||||
Maturity | |||||||||||||||||
One year or less | $ | 2,218 | $ | 2,250 | 5 | % | |||||||||||
After one year through five years | 11,434 | 12,224 | 25 | % | |||||||||||||
After five years through ten years | 12,737 | 14,199 | 30 | % | |||||||||||||
After ten years | 3,149 | 3,501 | 7 | % | |||||||||||||
29,538 | 32,174 | 67 | % | ||||||||||||||
Collateralized loan obligations and other ABS (average life of approximately 4 years) | 12,012 | 12,026 | 25 | % | |||||||||||||
MBS (average life of approximately 3-1/2 years) | 3,693 | 3,993 | 8 | % | |||||||||||||
Total | $ | 45,243 | $ | 48,193 | 100 | % |
Amortized | Fair Value | |||||||||
Cost, net (*) | Amount | % | ||||||||
Maturity | ||||||||||
One year or less | $ | 2,018 | $ | 2,027 | 4 | % | ||||
After one year through five years | 10,563 | 10,710 | 23 | % | ||||||
After five years through ten years | 14,450 | 14,722 | 32 | % | ||||||
After ten years | 3,551 | 3,741 | 8 | % | ||||||
30,582 | 31,200 | 67 | % | |||||||
Collateralized loan obligations and other ABS (average life of approximately 4-1/2 years) | 11,494 | 10,896 | 24 | % | ||||||
MBS (average life of approximately 3-1/2 years) | 3,964 | 4,038 | 9 | % | ||||||
Total | $ | 46,040 | $ | 46,134 | 100 | % |
Pretax | Deferred Tax | Net | |||||||||||||||
September 30, 2020 | |||||||||||||||||
Net unrealized gain on: | |||||||||||||||||
Fixed maturities — annuity segment (*) | $ | 2,473 | $ | (519) | $ | 1,954 | |||||||||||
Fixed maturities — all other | 477 | (100) | 377 | ||||||||||||||
Total fixed maturities | 2,950 | (619) | 2,331 | ||||||||||||||
Deferred policy acquisition costs — annuity segment | (1,049) | 220 | (829) | ||||||||||||||
Annuity benefits accumulated | (377) | 79 | (298) | ||||||||||||||
Life, accident and health reserves | (3) | 1 | (2) | ||||||||||||||
Unearned revenue | 13 | (3) | 10 | ||||||||||||||
Total net unrealized gain on marketable securities | $ | 1,534 | $ | (322) | $ | 1,212 | |||||||||||
December 31, 2019 | |||||||||||||||||
Net unrealized gain on: | |||||||||||||||||
Fixed maturities — annuity segment (*) | $ | 1,611 | $ | (338) | $ | 1,273 | |||||||||||
Fixed maturities — all other | 370 | (78) | 292 | ||||||||||||||
Total fixed maturities | 1,981 | (416) | 1,565 | ||||||||||||||
Deferred policy acquisition costs — annuity segment | (681) | 143 | (538) | ||||||||||||||
Annuity benefits accumulated | (219) | 46 | (173) | ||||||||||||||
Life, accident and health reserves | (1) | 0 | (1) | ||||||||||||||
Unearned revenue | 11 | (2) | 9 | ||||||||||||||
Total net unrealized gain on marketable securities | $ | 1,091 | $ | (229) | $ | 862 |
Pretax | Deferred Tax | Net | |||||||||
March 31, 2020 | |||||||||||
Net unrealized gain on: | |||||||||||
Fixed maturities — annuity segment (*) | $ | 124 | $ | (26 | ) | $ | 98 | ||||
Fixed maturities — all other | (30 | ) | 7 | (23 | ) | ||||||
Total fixed maturities | 94 | (19 | ) | 75 | |||||||
Deferred policy acquisition costs — annuity segment | (57 | ) | 12 | (45 | ) | ||||||
Annuity benefits accumulated | (18 | ) | 3 | (15 | ) | ||||||
Unearned revenue | 1 | — | 1 | ||||||||
Total net unrealized gain on marketable securities | $ | 20 | $ | (4 | ) | $ | 16 | ||||
December 31, 2019 | |||||||||||
Net unrealized gain on: | |||||||||||
Fixed maturities — annuity segment (*) | $ | 1,611 | $ | (338 | ) | $ | 1,273 | ||||
Fixed maturities — all other | 370 | (78 | ) | 292 | |||||||
Total fixed maturities | 1,981 | (416 | ) | 1,565 | |||||||
Deferred policy acquisition costs — annuity segment | (681 | ) | 143 | (538 | ) | ||||||
Annuity benefits accumulated | (219 | ) | 46 | (173 | ) | ||||||
Life, accident and health reserves | (1 | ) | — | (1 | ) | ||||||
Unearned revenue | 11 | (2 | ) | 9 | |||||||
Total net unrealized gain on marketable securities | $ | 1,091 | $ | (229 | ) | $ | 862 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Investment income: | |||||||||||||||||||||||
Fixed maturities | $ | 473 | $ | 475 | $ | 1,449 | $ | 1,422 | |||||||||||||||
Equity securities: | |||||||||||||||||||||||
Dividends | 16 | 22 | 49 | 66 | |||||||||||||||||||
Change in fair value (a) (b) | (3) | 17 | (6) | 35 | |||||||||||||||||||
Equity in earnings of partnerships and similar investments | 66 | 43 | 37 | 109 | |||||||||||||||||||
Other | 26 | 36 | 72 | 95 | |||||||||||||||||||
Gross investment income | 578 | 593 | 1,601 | 1,727 | |||||||||||||||||||
Investment expenses | (6) | (5) | (17) | (17) | |||||||||||||||||||
Net investment income (b) | $ | 572 | $ | 588 | $ | 1,584 | $ | 1,710 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Investment income: | |||||||
Fixed maturities | $ | 491 | $ | 469 | |||
Equity securities: | |||||||
Dividends | 17 | 22 | |||||
Change in fair value (a) (b) | (12 | ) | 11 | ||||
Equity in earnings of partnerships and similar investments | 25 | 21 | |||||
Other | 28 | 25 | |||||
Gross investment income | 549 | 548 | |||||
Investment expenses | (5 | ) | (6 | ) | |||
Net investment income (b) | $ | 544 | $ | 542 |
Three months ended September 30, 2020 | Three months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Realized gains (losses) | Realized gains (losses) | ||||||||||||||||||||||||||||||||||||||||||||||
Before Impairments | Impairment Allowance | Total | Change in Unrealized | Before Impairments | Impairments | Total | Change in Unrealized | ||||||||||||||||||||||||||||||||||||||||
Fixed maturities | $ | 14 | $ | 3 | $ | 17 | $ | 513 | $ | 9 | $ | (14) | $ | (5) | $ | 367 | |||||||||||||||||||||||||||||||
Equity securities | 30 | 0 | 30 | 0 | (16) | 0 | (16) | 0 | |||||||||||||||||||||||||||||||||||||||
Mortgage loans and other investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Other (*) | (1) | (1) | (2) | (283) | (2) | 5 | 3 | (230) | |||||||||||||||||||||||||||||||||||||||
Total pretax | 43 | 2 | 45 | 230 | (9) | (9) | (18) | 137 | |||||||||||||||||||||||||||||||||||||||
Tax effects | (9) | (1) | (10) | (48) | 2 | 2 | 4 | (29) | |||||||||||||||||||||||||||||||||||||||
Net of tax | $ | 34 | $ | 1 | $ | 35 | $ | 182 | $ | (7) | $ | (7) | $ | (14) | $ | 108 | |||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | Nine months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Realized gains (losses) | Realized gains (losses) | ||||||||||||||||||||||||||||||||||||||||||||||
Before Impairments | Impairment Allowance | Total | Change in Unrealized | Before Impairments | Impairments | Total | Change in Unrealized | ||||||||||||||||||||||||||||||||||||||||
Fixed maturities | $ | 46 | $ | (57) | $ | (11) | $ | 969 | $ | 23 | $ | (20) | $ | 3 | $ | 2,009 | |||||||||||||||||||||||||||||||
Equity securities | (303) | 0 | (303) | 0 | 210 | 0 | 210 | 0 | |||||||||||||||||||||||||||||||||||||||
Mortgage loans and other investments | 4 | 0 | 4 | 0 | 3 | 0 | 3 | 0 | |||||||||||||||||||||||||||||||||||||||
Other (*) | (6) | 14 | 8 | (526) | (1) | 7 | 6 | (949) | |||||||||||||||||||||||||||||||||||||||
Total pretax | (259) | (43) | (302) | 443 | 235 | (13) | 222 | 1,060 | |||||||||||||||||||||||||||||||||||||||
Tax effects | 54 | 9 | 63 | (93) | (49) | 3 | (46) | (223) | |||||||||||||||||||||||||||||||||||||||
Net of tax | $ | (205) | $ | (34) | $ | (239) | $ | 350 | $ | 186 | $ | (10) | $ | 176 | $ | 837 |
Three months ended March 31, 2020 | Three months ended March 31, 2019 | ||||||||||||||||||||||||||||||
Realized gains (losses) | Realized gains (losses) | ||||||||||||||||||||||||||||||
Before Impairments | Impairment Allowance | Total | Change in Unrealized | Before Impairments | Impairments | Total | Change in Unrealized | ||||||||||||||||||||||||
Fixed maturities | $ | 29 | $ | (61 | ) | $ | (32 | ) | $ | (1,887 | ) | $ | 3 | $ | (3 | ) | $ | — | $ | 853 | |||||||||||
Equity securities | (535 | ) | — | (535 | ) | — | 182 | — | 182 | — | |||||||||||||||||||||
Mortgage loans and other investments | 4 | — | 4 | — | — | — | — | — | |||||||||||||||||||||||
Other (*) | (3 | ) | 15 | 12 | 816 | 1 | 1 | 2 | (370 | ) | |||||||||||||||||||||
Total pretax | (505 | ) | (46 | ) | (551 | ) | (1,071 | ) | 186 | (2 | ) | 184 | 483 | ||||||||||||||||||
Tax effects | 106 | 10 | 116 | 225 | (39 | ) | — | (39 | ) | (102 | ) | ||||||||||||||||||||
Net of tax | $ | (399 | ) | $ | (36 | ) | $ | (435 | ) | $ | (846 | ) | $ | 147 | $ | (2 | ) | $ | 145 | $ | 381 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Included in realized gains (losses) | $ | 23 | $ | (24) | $ | (300) | $ | 146 | |||||||||||||||
Included in net investment income | (4) | 17 | 1 | 34 | |||||||||||||||||||
$ | 19 | $ | (7) | $ | (299) | $ | 180 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Included in realized gains (losses) | $ | (540 | ) | $ | 163 | ||
Included in net investment income | (5 | ) | 11 | ||||
$ | (545 | ) | $ | 174 |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Gross gains | $ | 77 | $ | 20 | |||||||
Gross losses | (33) | (12) |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Gross gains | $ | 29 | $ | 6 | |||
Gross losses | (4 | ) | (9 | ) |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Derivative | Balance Sheet Line | Asset | Liability | Asset | Liability | |||||||||||||||||||||||||||
MBS with embedded derivatives | Fixed maturities | $ | 172 | $ | — | $ | 102 | $ | — | |||||||||||||||||||||||
Public company warrants | Equity securities | — | — | — | — | |||||||||||||||||||||||||||
Fixed-indexed and variable-indexed annuities (embedded derivative) | Annuity benefits accumulated | — | 3,657 | — | 3,730 | |||||||||||||||||||||||||||
Equity index call options | Equity index call options | 697 | — | 924 | — | |||||||||||||||||||||||||||
Equity index put options | Other liabilities | 0 | 4 | — | 1 | |||||||||||||||||||||||||||
Reinsurance contracts (embedded derivative) | Other liabilities | — | 4 | — | 4 | |||||||||||||||||||||||||||
$ | 869 | $ | 3,665 | $ | 1,026 | $ | 3,735 |
March 31, 2020 | December 31, 2019 | |||||||||||||||||
Derivative | Balance Sheet Line | Asset | Liability | Asset | Liability | |||||||||||||
MBS with embedded derivatives | Fixed maturities | $ | 103 | $ | — | $ | 102 | $ | — | |||||||||
Fixed-indexed and variable-indexed annuities (embedded derivative) | Annuity benefits accumulated | — | 3,099 | — | 3,730 | |||||||||||||
Equity index call options | Equity index call options | 209 | — | 924 | — | |||||||||||||
Equity index put options | Other liabilities | — | 8 | — | 1 | |||||||||||||
Reinsurance contracts (embedded derivative) | Other liabilities | — | 2 | — | 4 | |||||||||||||
$ | 312 | $ | 3,109 | $ | 1,026 | $ | 3,735 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
Derivative | Statement of Earnings Line | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||
MBS with embedded derivatives | Realized gains (losses) on securities | $ | (5) | $ | 3 | $ | 2 | $ | 15 | |||||||||||||||||||||||
Public company warrants | Realized gains (losses) on securities | 0 | (1) | 0 | (1) | |||||||||||||||||||||||||||
Fixed-indexed and variable-indexed annuities (embedded derivative) (*) | Annuity benefits | (5) | 70 | 41 | (643) | |||||||||||||||||||||||||||
Equity index call options | Annuity benefits | 203 | 30 | (42) | 544 | |||||||||||||||||||||||||||
Equity index put options | Annuity benefits | 2 | 0 | 1 | 1 | |||||||||||||||||||||||||||
Reinsurance contract (embedded derivative) | Net investment income | 1 | 0 | 0 | (2) | |||||||||||||||||||||||||||
$ | 196 | $ | 102 | $ | 2 | $ | (86) |
Three months ended March 31, | ||||||||||
Derivative | Statement of Earnings Line | 2020 | 2019 | |||||||
MBS with embedded derivatives | Realized gains (losses) on securities | $ | 4 | $ | 6 | |||||
Fixed-indexed and variable-indexed annuities (embedded derivative) | Annuity benefits | 647 | (462 | ) | ||||||
Equity index call options | Annuity benefits | (628 | ) | 366 | ||||||
Equity index put options | Annuity benefits | (6 | ) | 1 | ||||||
Reinsurance contract (embedded derivative) | Net investment income | 2 | (1 | ) | ||||||
$ | 19 | $ | (90 | ) |
P&C | Annuity and Other | ||||||||||||||||||||||||||||||||
Deferred | Deferred | Sales | Consolidated | ||||||||||||||||||||||||||||||
Costs | Costs | Inducements | PVFP | Subtotal | Unrealized (*) | Total | Total | ||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 322 | $ | 1,303 | $ | 75 | $ | 36 | $ | 1,414 | $ | (699 | ) | $ | 715 | $ | 1,037 | ||||||||||||||||
Additions | 158 | 49 | 1 | — | 50 | — | 50 | 208 | |||||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||
Periodic amortization | (170 | ) | (98 | ) | (3 | ) | (2 | ) | (103 | ) | — | (103 | ) | (273 | ) | ||||||||||||||||||
Included in realized gains | — | 10 | — | — | 10 | — | 10 | 10 | |||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Change in unrealized | — | — | — | — | — | 591 | 591 | 591 | |||||||||||||||||||||||||
Balance at March 31, 2020 | $ | 310 | $ | 1,264 | $ | 73 | $ | 34 | $ | 1,371 | $ | (108 | ) | $ | 1,263 | $ | 1,573 | ||||||||||||||||
Balance at December 31, 2018 | $ | 299 | $ | 1,285 | $ | 86 | $ | 42 | $ | 1,413 | $ | (30 | ) | $ | 1,383 | $ | 1,682 | ||||||||||||||||
Additions | 187 | 64 | 1 | — | 65 | — | 65 | 252 | |||||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||
Periodic amortization | (175 | ) | (15 | ) | (3 | ) | (2 | ) | (20 | ) | — | (20 | ) | (195 | ) | ||||||||||||||||||
Included in realized gains | — | 2 | — | — | 2 | — | 2 | 2 | |||||||||||||||||||||||||
Foreign currency translation | 1 | — | — | — | — | — | — | 1 | |||||||||||||||||||||||||
Change in unrealized | — | — | — | — | — | (295 | ) | (295 | ) | (295 | ) | ||||||||||||||||||||||
Balance at March 31, 2019 | $ | 312 | $ | 1,336 | $ | 84 | $ | 40 | $ | 1,460 | $ | (325 | ) | $ | 1,135 | $ | 1,447 |
P&C | Annuity and Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred | Deferred | Sales | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||
Costs | Costs | Inducements | PVFP | Subtotal | Unrealized (*) | Total | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 296 | $ | 1,342 | $ | 73 | $ | 33 | $ | 1,448 | $ | (926) | $ | 522 | $ | 818 | |||||||||||||||||||||||||||||||||||||
Additions | 142 | 33 | 0 | — | 33 | — | 33 | 175 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Periodic amortization | (170) | (39) | (2) | (1) | (42) | — | (42) | (212) | |||||||||||||||||||||||||||||||||||||||||||||
Annuity unlocking | — | (118) | 4 | 0 | (114) | — | (114) | (114) | |||||||||||||||||||||||||||||||||||||||||||||
Included in realized gains | — | (2) | 0 | — | (2) | — | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | 1 | — | — | — | — | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized | — | — | — | — | 0 | (169) | (169) | (169) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 269 | $ | 1,216 | $ | 75 | $ | 32 | $ | 1,323 | $ | (1,095) | $ | 228 | $ | 497 | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 330 | $ | 1,373 | $ | 81 | $ | 38 | $ | 1,492 | $ | (619) | $ | 873 | $ | 1,203 | |||||||||||||||||||||||||||||||||||||
Additions | 188 | 43 | 1 | — | 44 | — | 44 | 232 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Periodic amortization | (194) | (29) | (3) | (1) | (33) | — | (33) | (227) | |||||||||||||||||||||||||||||||||||||||||||||
Annuity unlocking | — | (76) | (1) | 0 | (77) | — | (77) | (77) | |||||||||||||||||||||||||||||||||||||||||||||
Included in realized gains | — | 3 | 0 | — | 3 | — | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | (1) | — | — | — | — | — | — | (1) | |||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized | — | — | — | — | 0 | (169) | (169) | (169) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 323 | $ | 1,314 | $ | 78 | $ | 37 | $ | 1,429 | $ | (788) | $ | 641 | $ | 964 | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 322 | $ | 1,303 | $ | 75 | $ | 36 | $ | 1,414 | $ | (699) | $ | 715 | $ | 1,037 | |||||||||||||||||||||||||||||||||||||
Additions | 448 | 112 | 1 | — | 113 | — | 113 | 561 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Periodic amortization | (500) | (87) | (6) | (4) | (97) | — | (97) | (597) | |||||||||||||||||||||||||||||||||||||||||||||
Annuity unlocking | — | (118) | 4 | 0 | (114) | — | (114) | (114) | |||||||||||||||||||||||||||||||||||||||||||||
Included in realized gains | — | 6 | 1 | — | 7 | — | 7 | 7 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | (1) | — | — | — | — | — | — | (1) | |||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized | — | — | — | — | 0 | (396) | (396) | (396) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 269 | $ | 1,216 | $ | 75 | $ | 32 | $ | 1,323 | $ | (1,095) | $ | 228 | $ | 497 | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 299 | $ | 1,285 | $ | 86 | $ | 42 | $ | 1,413 | $ | (30) | $ | 1,383 | $ | 1,682 | |||||||||||||||||||||||||||||||||||||
Additions | 569 | 163 | 2 | — | 165 | — | 165 | 734 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Periodic amortization | (544) | (63) | (10) | (5) | (78) | — | (78) | (622) | |||||||||||||||||||||||||||||||||||||||||||||
Annuity unlocking | — | (76) | (1) | 0 | (77) | — | (77) | (77) | |||||||||||||||||||||||||||||||||||||||||||||
Included in realized gains | — | 5 | 1 | — | 6 | — | 6 | 6 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | (1) | — | — | — | — | — | — | (1) | |||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized | — | — | — | — | 0 | (758) | (758) | (758) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 323 | $ | 1,314 | $ | 78 | $ | 37 | $ | 1,429 | $ | (788) | $ | 641 | $ | 964 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Investment in CLO tranches at end of period | $ | 161 | $ | 193 | |||
Gains (losses) on change in fair value of assets/liabilities (a): | |||||||
Assets | (679 | ) | 87 | ||||
Liabilities | 636 | (87 | ) | ||||
Management fees paid to AFG | 4 | 3 | |||||
CLO earnings (losses) attributable to AFG shareholders (b) | (36 | ) | 11 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Investment in CLO tranches at end of period | $ | 176 | $ | 179 | $ | 176 | $ | 179 | |||||||||||||||
Gains (losses) on change in fair value of assets/liabilities (a): | |||||||||||||||||||||||
Assets | 132 | (18) | (184) | 69 | |||||||||||||||||||
Liabilities | (131) | 4 | 137 | (85) | |||||||||||||||||||
Management fees paid to AFG | 3 | 4 | 11 | 11 | |||||||||||||||||||
CLO earnings (losses) attributable to AFG shareholders (b) | 13 | (5) | (21) | 11 |
March 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Principal | Discount and Issue Costs | Carrying Value | Principal | Discount and Issue Costs | Carrying Value | ||||||||||||||||||
Direct Senior Obligations of AFG: | |||||||||||||||||||||||
4.50% Senior Notes due June 2047 | $ | 590 | $ | (2 | ) | $ | 588 | $ | 590 | $ | (2 | ) | $ | 588 | |||||||||
3.50% Senior Notes due August 2026 | 425 | (3 | ) | 422 | 425 | (3 | ) | 422 | |||||||||||||||
Other | 3 | — | 3 | 3 | — | 3 | |||||||||||||||||
1,018 | (5 | ) | 1,013 | 1,018 | (5 | ) | 1,013 | ||||||||||||||||
Direct Subordinated Obligations of AFG: | |||||||||||||||||||||||
5.125% Subordinate Debentures due December 2059 | 200 | (6 | ) | 194 | 200 | (6 | ) | 194 | |||||||||||||||
6% Subordinated Debentures due November 2055 | 150 | (5 | ) | 145 | 150 | (5 | ) | 145 | |||||||||||||||
5.875% Subordinated Debentures due March 2059 | 125 | (4 | ) | 121 | 125 | (4 | ) | 121 | |||||||||||||||
475 | (15 | ) | 460 | 475 | (15 | ) | 460 | ||||||||||||||||
$ | 1,493 | $ | (20 | ) | $ | 1,473 | $ | 1,493 | $ | (20 | ) | $ | 1,473 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Principal | Discount and Issue Costs | Carrying Value | Principal | Discount and Issue Costs | Carrying Value | ||||||||||||||||||||||||||||||
Direct Senior Obligations of AFG: | |||||||||||||||||||||||||||||||||||
4.50% Senior Notes due June 2047 | $ | 590 | $ | (2) | $ | 588 | $ | 590 | $ | (2) | $ | 588 | |||||||||||||||||||||||
3.50% Senior Notes due August 2026 | 425 | (3) | 422 | 425 | (3) | 422 | |||||||||||||||||||||||||||||
5.25% Senior Notes due April 2030 | 300 | (7) | 293 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
Other | 3 | 0 | 3 | 3 | 0 | 3 | |||||||||||||||||||||||||||||
1,318 | (12) | 1,306 | 1,018 | (5) | 1,013 | ||||||||||||||||||||||||||||||
Direct Subordinated Obligations of AFG: | |||||||||||||||||||||||||||||||||||
4.50% Subordinated Debentures due September 2060 | 200 | (4) | 196 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
5.125% Subordinate Debentures due December 2059 | 200 | (6) | 194 | 200 | (6) | 194 | |||||||||||||||||||||||||||||
6% Subordinated Debentures due November 2055 | 150 | (5) | 145 | 150 | (5) | 145 | |||||||||||||||||||||||||||||
5.625% Subordinated Debentures due June 2060 | 150 | (4) | 146 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
5.875% Subordinated Debentures due March 2059 | 125 | (4) | 121 | 125 | (4) | 121 | |||||||||||||||||||||||||||||
825 | (23) | 802 | 475 | (15) | 460 | ||||||||||||||||||||||||||||||
$ | 2,143 | $ | (35) | $ | 2,108 | $ | 1,493 | $ | (20) | $ | 1,473 |
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||
AOCI Beginning Balance | Pretax | Tax | Net of tax | Attributable to noncontrolling interests | Attributable to shareholders | Other | AOCI Ending Balance | ||||||||||||||||||||||||||||||||||||||||
Quarter ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains on securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized holding gains on securities arising during the period | $ | 245 | $ | (51) | $ | 194 | $ | 0 | $ | 194 | |||||||||||||||||||||||||||||||||||||
Reclassification adjustment for realized (gains) losses included in net earnings (*) | (15) | 3 | (12) | 0 | (12) | ||||||||||||||||||||||||||||||||||||||||||
Total net unrealized gains (losses) on securities | $ | 1,030 | 230 | (48) | 182 | 0 | 182 | $ | — | $ | 1,212 | ||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on cash flow hedges | 47 | (7) | 1 | (6) | 0 | (6) | — | 41 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (17) | 0 | 0 | 0 | 0 | 0 | 4 | (13) | |||||||||||||||||||||||||||||||||||||||
Pension and other postretirement plans adjustments | (7) | 0 | 0 | 0 | 0 | 0 | — | (7) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1,053 | $ | 223 | $ | (47) | $ | 176 | $ | 0 | $ | 176 | $ | 4 | $ | 1,233 | |||||||||||||||||||||||||||||||
Quarter ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains on securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized holding gains on securities arising during the period | $ | 136 | $ | (29) | $ | 107 | $ | 0 | $ | 107 | |||||||||||||||||||||||||||||||||||||
Reclassification adjustment for realized (gains) losses included in net earnings (*) | 1 | 0 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Total net unrealized gains (losses) on securities | $ | 812 | 137 | (29) | 108 | 0 | 108 | $ | — | $ | 920 | ||||||||||||||||||||||||||||||||||||
Net unrealized gains on cash flow hedges | 18 | 9 | (2) | 7 | 0 | 7 | — | 25 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (13) | (6) | (1) | (7) | (1) | (8) | — | (21) | |||||||||||||||||||||||||||||||||||||||
Pension and other postretirement plans adjustments | (8) | 1 | 0 | 1 | 0 | 1 | — | (7) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 809 | $ | 141 | $ | (32) | $ | 109 | $ | (1) | $ | 108 | $ | — | $ | 917 | |||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized holding gains on securities arising during the period | $ | 443 | $ | (93) | $ | 350 | $ | 0 | $ | 350 | |||||||||||||||||||||||||||||||||||||
Reclassification adjustment for realized (gains) losses included in net earnings (*) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Total net unrealized gains (losses) on securities | $ | 862 | 443 | (93) | 350 | 0 | 350 | $ | — | $ | 1,212 | ||||||||||||||||||||||||||||||||||||
Net unrealized gains on cash flow hedges | 17 | 31 | (7) | 24 | 0 | 24 | — | 41 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (9) | (6) | 0 | (6) | (2) | (8) | 4 | (13) | |||||||||||||||||||||||||||||||||||||||
Pension and other postretirement plans adjustments | (7) | 0 | 0 | 0 | 0 | 0 | — | (7) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 863 | $ | 468 | $ | (100) | $ | 368 | $ | (2) | $ | 366 | $ | 4 | $ | 1,233 | |||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains on securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized holding gains on securities arising during the period | $ | 1,073 | $ | (226) | $ | 847 | $ | 0 | $ | 847 | |||||||||||||||||||||||||||||||||||||
Reclassification adjustment for realized (gains) losses included in net earnings (*) | (13) | 3 | (10) | 0 | (10) | ||||||||||||||||||||||||||||||||||||||||||
Total net unrealized gains (losses) on securities | $ | 83 | 1,060 | (223) | 837 | 0 | 837 | $ | — | $ | 920 | ||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on cash flow hedges | (11) | 46 | (10) | 36 | 0 | 36 | — | 25 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (16) | (3) | 0 | (3) | (2) | (5) | — | (21) | |||||||||||||||||||||||||||||||||||||||
Pension and other postretirement plans adjustments | (8) | 1 | 0 | 1 | 0 | 1 | — | (7) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 48 | $ | 1,104 | $ | (233) | $ | 871 | $ | (2) | $ | 869 | $ | — | $ | 917 |
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||
AOCI Beginning Balance | Pretax | Tax | Net of tax | Attributable to noncontrolling interests | Attributable to shareholders | AOCI Ending Balance | |||||||||||||||||||||
Three months ended March 31, 2020 | |||||||||||||||||||||||||||
Net unrealized gains (losses) on securities: | |||||||||||||||||||||||||||
Unrealized holding losses on securities arising during the period | $ | (1,095 | ) | $ | 230 | $ | (865 | ) | $ | — | $ | (865 | ) | ||||||||||||||
Reclassification adjustment for realized (gains) losses included in net earnings (*) | 24 | (5 | ) | 19 | — | 19 | |||||||||||||||||||||
Total net unrealized gains (losses) on securities | $ | 862 | (1,071 | ) | 225 | (846 | ) | — | (846 | ) | $ | 16 | |||||||||||||||
Net unrealized gains on cash flow hedges | 17 | 34 | (7 | ) | 27 | — | 27 | 44 | |||||||||||||||||||
Foreign currency translation adjustments | (9 | ) | (10 | ) | — | (10 | ) | (2 | ) | (12 | ) | (21 | ) | ||||||||||||||
Pension and other postretirement plans adjustments | (7 | ) | — | — | — | — | — | (7 | ) | ||||||||||||||||||
Total | $ | 863 | $ | (1,047 | ) | $ | 218 | $ | (829 | ) | $ | (2 | ) | $ | (831 | ) | $ | 32 | |||||||||
Three months ended March 31, 2019 | |||||||||||||||||||||||||||
Net unrealized gains on securities: | |||||||||||||||||||||||||||
Unrealized holding gains on securities arising during the period | $ | 487 | $ | (103 | ) | $ | 384 | $ | — | $ | 384 | ||||||||||||||||
Reclassification adjustment for realized (gains) losses included in net earnings (*) | (4 | ) | 1 | (3 | ) | — | (3 | ) | |||||||||||||||||||
Total net unrealized gains on securities | $ | 83 | 483 | (102 | ) | 381 | — | 381 | $ | 464 | |||||||||||||||||
Net unrealized gains (losses) on cash flow hedges | (11 | ) | 14 | (3 | ) | 11 | — | 11 | — | ||||||||||||||||||
Foreign currency translation adjustments | (16 | ) | 4 | — | 4 | — | 4 | (12 | ) | ||||||||||||||||||
Pension and other postretirement plans adjustments | (8 | ) | — | — | — | — | — | (8 | ) | ||||||||||||||||||
Total | $ | 48 | $ | 501 | $ | (105 | ) | $ | 396 | $ | — | $ | 396 | $ | 444 |
OCI component | Affected line in the statement of earnings | |||||||||||||
Pretax | Realized gains (losses) on securities | |||||||||||||
Tax | Provision (credit) for income taxes |
Three months ended March 31, | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | % of EBT | Amount | % of EBT | Amount | % of EBT | Amount | % of EBT | Amount | % of EBT | Amount | % of EBT | |||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) before income taxes (“EBT”) | $ | (388 | ) | $ | 413 | Earnings (loss) before income taxes (“EBT”) | $ | 134 | $ | 177 | $ | (36) | $ | 849 | ||||||||||||||||||||||||||||||||||||||||||||||
Income taxes at statutory rate | $ | (81 | ) | 21 | % | $ | 87 | 21 | % | Income taxes at statutory rate | $ | 28 | 21 | % | $ | 37 | 21 | % | $ | (8) | 21 | % | $ | 178 | 21 | % | ||||||||||||||||||||||||||||||||||
Effect of: | Effect of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pending sale of Neon | Pending sale of Neon | (73) | (54 | %) | 0 | 0 | % | (73) | 203 | % | 0 | 0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Tax exempt interest | Tax exempt interest | (3) | (2 | %) | (4) | (2 | %) | (9) | 25 | % | (11) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | (4 | ) | 1 | % | (2 | ) | — | % | Stock-based compensation | 0 | 0 | % | (2) | (1 | %) | (4) | 11 | % | (6) | (1 | %) | |||||||||||||||||||||||||||||||||||||||
Tax exempt interest | (3 | ) | 1 | % | (4 | ) | (1 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends received deduction | (1 | ) | — | % | (1 | ) | — | % | Dividends received deduction | (1) | (1 | %) | (1) | (1 | %) | (2) | 6 | % | (3) | 0 | % | |||||||||||||||||||||||||||||||||||||||
Adjustment to prior year taxes | Adjustment to prior year taxes | (1) | (1 | %) | (3) | (2 | %) | (1) | 3 | % | (3) | 0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock Ownership Plan dividends paid deduction | Employee Stock Ownership Plan dividends paid deduction | (1) | (1 | %) | 0 | 0 | % | (1) | 3 | % | (1) | 0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Change in valuation allowance | Change in valuation allowance | 20 | 15 | % | 4 | 2 | % | 31 | (86 | %) | 7 | 1 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Nondeductible expenses | 2 | (1 | %) | 2 | — | % | Nondeductible expenses | 2 | 1 | % | 2 | 1 | % | 4 | (11 | %) | 6 | 1 | % | |||||||||||||||||||||||||||||||||||||||||
Change in valuation allowance | 2 | (1 | %) | 2 | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign operations | 1 | — | % | — | — | % | Foreign operations | (4) | (3 | %) | 0 | 0 | % | (3) | 8 | % | 0 | 0 | % | |||||||||||||||||||||||||||||||||||||||||
Other | — | 1 | % | 3 | 1 | % | Other | 3 | 3 | % | 1 | 1 | % | 3 | (8 | %) | 4 | (1 | %) | |||||||||||||||||||||||||||||||||||||||||
Provision (credit) for income taxes as shown in the statement of earnings | $ | (84 | ) | 22 | % | $ | 87 | 21 | % | Provision (credit) for income taxes as shown in the statement of earnings | $ | (30) | (22 | %) | $ | 34 | 19 | % | $ | (63) | 175 | % | $ | 171 | 20 | % |
Three months ended March 31, | Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Balance at beginning of year | $ | 10,232 | $ | 9,741 | Balance at beginning of year | $ | 10,232 | $ | 9,741 | |||||||||
Less reinsurance recoverables, net of allowance | 3,024 | 2,942 | Less reinsurance recoverables, net of allowance | 3,024 | 2,942 | |||||||||||||
Net liability at beginning of year | 7,208 | 6,799 | Net liability at beginning of year | 7,208 | 6,799 | |||||||||||||
Provision for losses and LAE occurring in the current period | 749 | 737 | Provision for losses and LAE occurring in the current period | 2,560 | 2,457 | |||||||||||||
Net increase (decrease) in the provision for claims of prior years | (42 | ) | (45 | ) | ||||||||||||||
Total losses and LAE incurred (*) | 707 | 692 | ||||||||||||||||
Net increase (decrease) in the provision for claims of prior years: | Net increase (decrease) in the provision for claims of prior years: | |||||||||||||||||
Special A&E charges | Special A&E charges | 47 | 18 | |||||||||||||||
Other | Other | (166) | (116) | |||||||||||||||
Total losses and LAE incurred | Total losses and LAE incurred | 2,441 | 2,359 | |||||||||||||||
Payments for losses and LAE of: | Payments for losses and LAE of: | |||||||||||||||||
Current year | (75 | ) | (89 | ) | Current year | (592) | (731) | |||||||||||
Prior years | (676 | ) | (615 | ) | Prior years | (1,406) | (1,408) | |||||||||||
Total payments | (751 | ) | (704 | ) | Total payments | (1,998) | (2,139) | |||||||||||
Foreign currency translation and other | (22 | ) | 1 | Foreign currency translation and other | (11) | (5) | ||||||||||||
Net liability at end of period | 7,142 | 6,788 | Net liability at end of period | 7,640 | 7,014 | |||||||||||||
Add back reinsurance recoverables, net of allowance | 2,964 | 2,835 | Add back reinsurance recoverables, net of allowance | 3,114 | 2,833 | |||||||||||||
Gross unpaid losses and LAE included in the balance sheet at end of period | $ | 10,106 | $ | 9,623 | Gross unpaid losses and LAE included in the balance sheet at end of period | $ | 10,754 | $ | 9,847 |
Recoverables from Reinsurers | Premiums Receivable | ||||||||||
Balance at June 30 | $ | 13 | $ | 10 | |||||||
Provision for expected credit losses | 1 | 1 | |||||||||
Write-offs charged against the allowance | 0 | 0 | |||||||||
Balance at September 30 | $ | 14 | $ | 11 | |||||||
Balance at January 1 | $ | 18 | $ | 13 | |||||||
Impact of adoption of new accounting policy | (6) | (3) | |||||||||
Provision for expected credit losses | 2 | 1 | |||||||||
Write-offs charged against the allowance | 0 | 0 | |||||||||
Balance at September 30 | $ | 14 | $ | 11 |
Recoverables from Reinsurers | Premiums Receivable | ||||||
Balance at January 1 | $ | 18 | $ | 13 | |||
Impact of adoption of new accounting policy | (6 | ) | (3 | ) | |||
Provision (credit) for expected credit losses | 1 | (1 | ) | ||||
Write-offs charged against the allowance | — | — | |||||
Balance at March 31 | $ | 13 | $ | 9 |
INDEX TO MD&A | ||||||||||||||
Page | Page | |||||||||||||
INDEX TO MD&A | ||||
Page | Page | |||
March 31, 2020 | December 31, | September 30, 2020 | December 31, | ||||||||||||||||||||||||||||||||||||||||||
Actual | Adjusted (*) | 2019 | 2018 | Actual | Adjusted (*) | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
Principal amount of long-term debt | $ | 1,493 | $ | 1,793 | $ | 1,493 | $ | 1,318 | Principal amount of long-term debt | $ | 2,143 | $ | 1,993 | $ | 1,493 | $ | 1,318 | ||||||||||||||||||||||||||||
Total capital | 6,480 | 6,780 | 6,883 | 6,218 | Total capital | 7,230 | 7,080 | 6,883 | 6,218 | ||||||||||||||||||||||||||||||||||||
Ratio of debt to total capital: | Ratio of debt to total capital: | ||||||||||||||||||||||||||||||||||||||||||||
Including subordinated debt | 23.0 | % | 26.4 | % | 21.7 | % | 21.2 | % | Including subordinated debt | 29.6 | % | 28.1 | % | 21.7 | % | 21.2 | % | ||||||||||||||||||||||||||||
Excluding subordinated debt | 15.7 | % | 19.4 | % | 14.8 | % | 16.4 | % | Excluding subordinated debt | 18.2 | % | 18.6 | % | 14.8 | % | 16.4 | % |
Nine months ended September 30, 2020 | Year ended December 31, 2019 | ||||||||||
Ratio of core earnings to fixed charges excluding annuity benefits | 9.62 | 12.78 | |||||||||
Impact of non-core items | (8.94) | 1.83 | |||||||||
Ratio of earnings to fixed charges excluding annuity benefits (*) | 0.68 | 14.61 | |||||||||
Impact of including interest on annuities as a fixed charge | 0.30 | (12.76) | |||||||||
Ratio of earnings to fixed charges including annuity benefits (*) | 0.98 | 1.85 |
Three Months Ended March 31, 2020 | Year Ended December 31, 2019 | |||||
Ratio of core earnings to fixed charges excluding annuity benefits | 11.15 | 12.78 | ||||
Impact of non-core items | (29.95 | ) | 1.83 | |||
Ratio of earnings to fixed charges excluding annuity benefits | * | 14.61 | ||||
Impact of including interest on annuities as a fixed charge | (18.47 | ) | (12.76 | ) | ||
Ratio of earnings to fixed charges including annuity benefits | * | 1.85 |
Three months ended March 31, | Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Net cash provided by operating activities | $ | 532 | $ | 454 | Net cash provided by operating activities | $ | 1,696 | $ | 1,691 | |||||||||
Net cash used in investing activities | (1,653 | ) | (684 | ) | Net cash used in investing activities | (772) | (1,778) | |||||||||||
Net cash provided by financing activities | 480 | 715 | Net cash provided by financing activities | 509 | 1,265 | |||||||||||||
Net change in cash and cash equivalents | $ | (641 | ) | $ | 485 | Net change in cash and cash equivalents | $ | 1,433 | $ | 1,178 |
% of Reserves | ||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||
GMIR | 2020 (*) | 2019 | 2018 | |||||||||||||||||||||||||||||
1 — 1.99% | 85% | 84% | 81% | |||||||||||||||||||||||||||||
2 — 2.99% | 3% | 3% | 4% | |||||||||||||||||||||||||||||
3 — 3.99% | 7% | 7% | 8% | |||||||||||||||||||||||||||||
4.00% and above | 5% | 6% | 7% | |||||||||||||||||||||||||||||
Annuity benefits accumulated (in millions) | $41,932 | $40,406 | $36,616 |
% of Reserves | ||||||||||
March 31, | December 31, | |||||||||
GMIR | 2020 | 2019 | 2018 | |||||||
1 — 1.99% | 83% | 83% | 80% | |||||||
2 — 2.99% | 3% | 3% | 4% | |||||||
3 — 3.99% | 7% | 7% | 8% | |||||||
4.00% and above | 7% | 7% | 8% | |||||||
Annuity benefits accumulated (in millions) | $40,463 | $40,406 | $36,616 |
Fair value of fixed maturity portfolio | $ | 48,285 | |||
Percentage impact on fair value of 100 bps increase in interest rates | (4.0 | %) | |||
Pretax impact on fair value of fixed maturity portfolio | $ | (1,931) | |||
Offsetting adjustments to deferred policy acquisition costs and other balance sheet amounts | 900 | ||||
Estimated pretax impact on accumulated other comprehensive income | (1,031) | ||||
Deferred income tax | 217 | ||||
Estimated after-tax impact on accumulated other comprehensive income | $ | (814) |
Fair value of fixed maturity portfolio | $ | 46,230 | |
Percentage impact on fair value of 100 bps increase in interest rates | (4.0 | %) | |
Pretax impact on fair value of fixed maturity portfolio | $ | (1,849 | ) |
Offsetting adjustments to deferred policy acquisition costs and other balance sheet amounts | 850 | ||
Estimated pretax impact on accumulated other comprehensive income | (999 | ) | |
Deferred income tax | 210 | ||
Estimated after-tax impact on accumulated other comprehensive income | $ | (789 | ) |
Amortized Cost, net (*) | Fair Value | Fair Value as % of Cost | Unrealized Gain (Loss) | % Rated Investment Grade | |||||||||||||||||||||||||
Collateral type | |||||||||||||||||||||||||||||
Residential: | |||||||||||||||||||||||||||||
Agency-backed | $ | 485 | $ | 492 | 101 | % | $ | 7 | 100 | % | |||||||||||||||||||
Non-agency prime | 1,301 | 1,412 | 109 | % | 111 | 61 | % | ||||||||||||||||||||||
Alt-A | 811 | 920 | 113 | % | 109 | 37 | % | ||||||||||||||||||||||
Subprime | 283 | 314 | 111 | % | 31 | 18 | % | ||||||||||||||||||||||
Commercial | 814 | 856 | 105 | % | 42 | 93 | % | ||||||||||||||||||||||
$ | 3,694 | $ | 3,994 | 108 | % | $ | 300 | 64 | % |
Amortized Cost, net (*) | Fair Value | Fair Value as % of Cost | Unrealized Gain (Loss) | % Rated Investment Grade | ||||||||||||||
Collateral type | ||||||||||||||||||
Residential: | ||||||||||||||||||
Agency-backed | $ | 494 | $ | 506 | 102 | % | $ | 12 | 100 | % | ||||||||
Non-agency prime | 1,359 | 1,383 | 102 | % | 24 | 61 | % | |||||||||||
Alt-A | 904 | 918 | 102 | % | 14 | 40 | % | |||||||||||
Subprime | 316 | 325 | 103 | % | 9 | 28 | % | |||||||||||
Commercial | 892 | 907 | 102 | % | 15 | 96 | % | |||||||||||
$ | 3,965 | $ | 4,039 | 102 | % | $ | 74 | 66 | % |
Securities With Unrealized Gains | Securities With Unrealized Losses | ||||||
Available for Sale Fixed Maturities | |||||||
Fair value of securities | $ | 26,535 | $ | 18,427 | |||
Amortized cost of securities, net of allowance for expected credit losses | $ | 25,117 | $ | 19,751 | |||
Gross unrealized gain (loss) | $ | 1,418 | $ | (1,324 | ) | ||
Fair value as % of amortized cost | 106 | % | 93 | % | |||
Number of security positions | 3,520 | 1,871 | |||||
Number individually exceeding $2 million gain or loss | 117 | 183 | |||||
Concentration of gains (losses) by type or industry (exceeding 5% of unrealized): | |||||||
States and municipalities | $ | 388 | $ | (8 | ) | ||
Banks, savings and credit institutions | 165 | (33 | ) | ||||
Mortgage-backed securities | 153 | (79 | ) | ||||
Insurance | 113 | (29 | ) | ||||
Other financials | 97 | (131 | ) | ||||
Other asset-backed securities | 65 | (362 | ) | ||||
Energy | 19 | (205 | ) | ||||
Collateralized loan obligations | 5 | (306 | ) | ||||
Percentage rated investment grade | 95 | % | 89 | % |
Securities With Unrealized Gains | Securities With Unrealized Losses | ||||||||||
Available for Sale Fixed Maturities | |||||||||||
Fair value of securities | $ | 39,000 | $ | 7,422 | |||||||
Amortized cost of securities, net of allowance for expected credit losses | $ | 35,796 | $ | 7,676 | |||||||
Gross unrealized gain (loss) | $ | 3,204 | $ | (254) | |||||||
Fair value as % of amortized cost | 109 | % | 97 | % | |||||||
Number of security positions | 4,429 | 759 | |||||||||
Number individually exceeding $2 million gain or loss | 387 | 22 | |||||||||
Concentration of gains (losses) by type or industry (exceeding 5% of unrealized): | |||||||||||
States and municipalities | $ | 575 | $ | (3) | |||||||
Banks, savings and credit institutions | 438 | (9) | |||||||||
Mortgage-backed securities | 308 | (8) | |||||||||
Insurance | 241 | — | |||||||||
Technology | 188 | (1) | |||||||||
Other asset-backed securities | 154 | (124) | |||||||||
Energy | 120 | (17) | |||||||||
Collateralized loan obligations | 25 | (41) | |||||||||
Aviation | 2 | (16) | |||||||||
Percentage rated investment grade | 94 | % | 84 | % |
Securities With Unrealized Gains | Securities With Unrealized Losses | ||||||||||
Maturity | |||||||||||
One year or less | 4 | % | 4 | % | |||||||
After one year through five years | 29 | % | 11 | % | |||||||
After five years through ten years | 34 | % | 9 | % | |||||||
After ten years | 8 | % | 5 | % | |||||||
75 | % | 29 | % | ||||||||
Collateralized loan obligations and other asset-backed securities (average life of approximately 4 years) | 16 | % | 68 | % | |||||||
Mortgage-backed securities (average life of approximately 3-1/2 years) | 9 | % | 3 | % | |||||||
100 | % | 100 | % |
Securities With Unrealized Gains | Securities With Unrealized Losses | ||||
Maturity | |||||
One year or less | 4 | % | 4 | % | |
After one year through five years | 31 | % | 12 | % | |
After five years through ten years | 39 | % | 24 | % | |
After ten years | 12 | % | 4 | % | |
86 | % | 44 | % | ||
Collateralized loan obligations and other asset-backed securities (average life of approximately 4-1/2 years) | 6 | % | 47 | % | |
Mortgage-backed securities (average life of approximately 3-1/2 years) | 8 | % | 9 | % | |
100 | % | 100 | % |
Aggregate Fair Value | Aggregate Unrealized Gain (Loss) | Fair Value as % of Cost | |||||||||||||||
Fixed Maturities at September 30, 2020 | |||||||||||||||||
Securities with unrealized gains: | |||||||||||||||||
Exceeding $500,000 (1,764 securities) | $ | 26,329 | $ | 2,786 | 112 | % | |||||||||||
$500,000 or less (2,665 securities) | 12,671 | 418 | 103 | % | |||||||||||||
$ | 39,000 | $ | 3,204 | 109 | % | ||||||||||||
Securities with unrealized losses: | |||||||||||||||||
Exceeding $500,000 (145 securities) | $ | 2,436 | $ | (187) | 93 | % | |||||||||||
$500,000 or less (614 securities) | 4,986 | (67) | 99 | % | |||||||||||||
$ | 7,422 | $ | (254) | 97 | % |
Aggregate Fair Value | Aggregate Unrealized Gain (Loss) | Fair Value as % of Cost | |||||||||
Fixed Maturities at March 31, 2020 | |||||||||||
Securities with unrealized gains: | |||||||||||
Exceeding $500,000 (830 securities) | $ | 13,559 | $ | 1,036 | 108 | % | |||||
$500,000 or less (2,690 securities) | 12,976 | 382 | 103 | % | |||||||
$ | 26,535 | $ | 1,418 | 106 | % | ||||||
Securities with unrealized losses: | |||||||||||
Exceeding $500,000 (709 securities) | $ | 11,374 | $ | (1,172 | ) | 91 | % | ||||
$500,000 or less (1,162 securities) | 7,053 | (152 | ) | 98 | % | ||||||
$ | 18,427 | $ | (1,324 | ) | 93 | % |
Aggregate Fair Value | Aggregate Unrealized Loss | Fair Value as % of Cost | |||||||||||||||
Securities with Unrealized Losses at September 30, 2020 | |||||||||||||||||
Investment grade fixed maturities with losses for: | |||||||||||||||||
Less than one year (347 securities) | $ | 4,545 | $ | (148) | 97 | % | |||||||||||
One year or longer (127 securities) | 1,718 | (49) | 97 | % | |||||||||||||
$ | 6,263 | $ | (197) | 97 | % | ||||||||||||
Non-investment grade fixed maturities with losses for: | |||||||||||||||||
Less than one year (246 securities) | $ | 993 | $ | (46) | 96 | % | |||||||||||
One year or longer (39 securities) | 166 | (11) | 94 | % | |||||||||||||
$ | 1,159 | $ | (57) | 95 | % | ||||||||||||
Aggregate Fair Value | Aggregate Unrealized Loss | Fair Value as % of Cost | |||||||||
Securities with Unrealized Losses at March 31, 2020 | |||||||||||
Investment grade fixed maturities with losses for: | |||||||||||
Less than one year (1,231 securities) | $ | 14,456 | $ | (921 | ) | 94 | % | ||||
One year or longer (151 securities) | 1,865 | (179 | ) | 91 | % | ||||||
$ | 16,321 | $ | (1,100 | ) | 94 | % | |||||
Non-investment grade fixed maturities with losses for: | |||||||||||
Less than one year (454 securities) | $ | 2,030 | $ | (209 | ) | 91 | % | ||||
One year or longer (35 securities) | 76 | (15 | ) | 84 | % | ||||||
$ | 2,106 | $ | (224 | ) | 90 | % |
Before CLO Consolidation | Managed Investment Entities | Consol. Entries | Consolidated As Reported | |||||||||||||||||||||||||||||||||||||||||||
Before CLO Consolidation | Managed Investment Entities | Consol. Entries | Consolidated As Reported | |||||||||||||||||||||||||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Cash and investments | $ | 53,381 | $ | — | $ | (160 | ) | (a) | $ | 53,221 | Cash and investments | $ | 58,262 | $ | — | $ | (175) | (a) | $ | 58,087 | ||||||||||||||||||||||||||
Assets of managed investment entities | — | 4,026 | — | 4,026 | Assets of managed investment entities | — | 4,717 | — | 4,717 | |||||||||||||||||||||||||||||||||||||
Other assets | 10,397 | — | (1 | ) | (a) | 10,396 | Other assets | 10,307 | — | (1) | (a) | 10,306 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 63,778 | $ | 4,026 | $ | (161 | ) | $ | 67,643 | Total assets | $ | 68,569 | $ | 4,717 | $ | (176) | $ | 73,110 | ||||||||||||||||||||||||||||
Liabilities: | Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Unpaid losses and loss adjustment expenses and unearned premiums | $ | 12,914 | $ | — | $ | — | $ | 12,914 | Unpaid losses and loss adjustment expenses and unearned premiums | $ | 13,769 | $ | — | $ | — | $ | 13,769 | |||||||||||||||||||||||||||||
Annuity, life, accident and health benefits and reserves | 41,070 | — | — | 41,070 | Annuity, life, accident and health benefits and reserves | 42,541 | — | — | 42,541 | |||||||||||||||||||||||||||||||||||||
Liabilities of managed investment entities | — | 4,026 | (161 | ) | (a) | 3,865 | Liabilities of managed investment entities | — | 4,707 | (166) | (a) | 4,541 | ||||||||||||||||||||||||||||||||||
Long-term debt and other liabilities | 4,747 | — | — | 4,747 | Long-term debt and other liabilities | 5,919 | — | — | 5,919 | |||||||||||||||||||||||||||||||||||||
Total liabilities | 58,731 | 4,026 | (161 | ) | 62,596 | Total liabilities | 62,229 | 4,707 | (166) | 66,770 | ||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | — | — | Redeemable noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Shareholders’ equity: | Shareholders’ equity: | |||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Capital surplus | 1,399 | — | — | 1,399 | Common Stock and Capital surplus | 1,370 | 10 | (10) | 1,370 | |||||||||||||||||||||||||||||||||||||
Retained earnings | 3,616 | — | — | 3,616 | Retained earnings | 3,737 | — | — | 3,737 | |||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income, net of tax | 32 | — | — | 32 | Accumulated other comprehensive income, net of tax | 1,233 | — | — | 1,233 | |||||||||||||||||||||||||||||||||||||
Total shareholders’ equity | 5,047 | — | — | 5,047 | Total shareholders’ equity | 6,340 | 10 | (10) | 6,340 | |||||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | Noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total equity | 5,047 | — | — | 5,047 | Total equity | 6,340 | 10 | (10) | 6,340 | |||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 63,778 | $ | 4,026 | $ | (161 | ) | $ | 67,643 | Total liabilities and equity | $ | 68,569 | $ | 4,717 | $ | (176) | $ | 73,110 | ||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Cash and investments | $ | 55,416 | $ | — | $ | (164 | ) | (a) | $ | 55,252 | Cash and investments | $ | 55,416 | $ | — | $ | (164) | (a) | $ | 55,252 | ||||||||||||||||||||||||||
Assets of managed investment entities | — | 4,736 | — | 4,736 | Assets of managed investment entities | — | 4,736 | — | 4,736 | |||||||||||||||||||||||||||||||||||||
Other assets | 10,143 | — | (1 | ) | (a) | 10,142 | Other assets | 10,143 | — | (1) | (a) | 10,142 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 65,559 | $ | 4,736 | $ | (165 | ) | $ | 70,130 | Total assets | $ | 65,559 | $ | 4,736 | $ | (165) | $ | 70,130 | ||||||||||||||||||||||||||||
Liabilities: | Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Unpaid losses and loss adjustment expenses and unearned premiums | $ | 13,062 | $ | — | $ | — | $ | 13,062 | Unpaid losses and loss adjustment expenses and unearned premiums | $ | 13,062 | $ | — | $ | — | $ | 13,062 | |||||||||||||||||||||||||||||
Annuity, life, accident and health benefits and reserves | 41,018 | — | — | 41,018 | Annuity, life, accident and health benefits and reserves | 41,018 | — | — | 41,018 | |||||||||||||||||||||||||||||||||||||
Liabilities of managed investment entities | — | 4,736 | (165 | ) | (a) | 4,571 | Liabilities of managed investment entities | — | 4,736 | (165) | (a) | 4,571 | ||||||||||||||||||||||||||||||||||
Long-term debt and other liabilities | 5,210 | — | — | 5,210 | Long-term debt and other liabilities | 5,210 | — | — | 5,210 | |||||||||||||||||||||||||||||||||||||
Total liabilities | 59,290 | 4,736 | (165 | ) | 63,861 | Total liabilities | 59,290 | 4,736 | (165) | 63,861 | ||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | — | — | Redeemable noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Shareholders’ equity: | Shareholders’ equity: | |||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Capital surplus | 1,397 | — | — | 1,397 | Common Stock and Capital surplus | 1,397 | — | — | 1,397 | |||||||||||||||||||||||||||||||||||||
Retained earnings | 4,009 | — | — | 4,009 | Retained earnings | 4,009 | — | — | 4,009 | |||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income, net of tax | 863 | — | — | 863 | Accumulated other comprehensive income, net of tax | 863 | — | — | 863 | |||||||||||||||||||||||||||||||||||||
Total shareholders’ equity | 6,269 | — | — | 6,269 | Total shareholders’ equity | 6,269 | — | — | 6,269 | |||||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | Noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total equity | 6,269 | — | — | 6,269 | Total equity | 6,269 | — | — | 6,269 | |||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 65,559 | $ | 4,736 | $ | (165 | ) | $ | 70,130 | Total liabilities and equity | $ | 65,559 | $ | 4,736 | $ | (165) | $ | 70,130 |
Before CLO Consolidation (a) | Managed Investment Entities | Consol. Entries | Consolidated As Reported | ||||||||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 1,381 | $ | — | $ | — | $ | 1,381 | |||||||||||||||||||||
Net investment income | 585 | — | (13) | (b) | 572 | ||||||||||||||||||||||||
Realized gains (losses) on: | |||||||||||||||||||||||||||||
Securities | 45 | — | — | 45 | |||||||||||||||||||||||||
Subsidiaries | (30) | — | — | (30) | |||||||||||||||||||||||||
Income (loss) of managed investment entities: | |||||||||||||||||||||||||||||
Investment income | — | 46 | — | 46 | |||||||||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | (8) | 9 | (b) | 1 | ||||||||||||||||||||||||
Other income | 48 | — | (3) | (c) | 45 | ||||||||||||||||||||||||
Total revenues | 2,029 | 38 | (7) | 2,060 | |||||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||
Insurance benefits and expenses | 1,744 | — | — | 1,744 | |||||||||||||||||||||||||
Expenses of managed investment entities | — | 38 | (7) | (b)(c) | 31 | ||||||||||||||||||||||||
Interest charges on borrowed money and other expenses | 151 | — | — | 151 | |||||||||||||||||||||||||
Total costs and expenses | 1,895 | 38 | (7) | 1,926 | |||||||||||||||||||||||||
Earnings (loss) before income taxes | 134 | — | — | 134 | |||||||||||||||||||||||||
Provision (credit) for income taxes | (30) | — | — | (30) | |||||||||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 164 | — | — | 164 | |||||||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||
Net earnings (loss) attributable to shareholders | $ | 164 | $ | — | $ | — | $ | 164 | |||||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 1,442 | $ | — | $ | — | $ | 1,442 | |||||||||||||||||||||
Net investment income | 583 | — | 5 | (b) | 588 | ||||||||||||||||||||||||
Realized gains (losses) on securities | (18) | — | — | (18) | |||||||||||||||||||||||||
Income (loss) of managed investment entities: | |||||||||||||||||||||||||||||
Investment income | — | 67 | — | 67 | |||||||||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | (1) | (13) | (b) | (14) | ||||||||||||||||||||||||
Other income | 62 | — | (4) | (c) | 58 | ||||||||||||||||||||||||
Total revenues | 2,069 | 66 | (12) | 2,123 | |||||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||
Insurance benefits and expenses | 1,764 | — | — | 1,764 | |||||||||||||||||||||||||
Expenses of managed investment entities | — | 66 | (12) | (b)(c) | 54 | ||||||||||||||||||||||||
Interest charges on borrowed money and other expenses | 128 | — | — | 128 | |||||||||||||||||||||||||
Total costs and expenses | 1,892 | 66 | (12) | 1,946 | |||||||||||||||||||||||||
Earnings (loss) before income taxes | 177 | — | — | 177 | |||||||||||||||||||||||||
Provision (credit) for income taxes | 34 | — | — | 34 | |||||||||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 143 | — | — | 143 | |||||||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (4) | — | — | (4) | |||||||||||||||||||||||||
Net earnings (loss) attributable to shareholders | $ | 147 | $ | — | $ | — | $ | 147 |
Before CLO Consolidation (a) | Managed Investment Entities | Consol. Entries | Consolidated As Reported | ||||||||||||||
Three months ended March 31, 2020 | |||||||||||||||||
Revenues: | |||||||||||||||||
Insurance net earned premiums | $ | 1,209 | $ | — | $ | — | $ | 1,209 | |||||||||
Net investment income | 508 | — | 36 | (b) | 544 | ||||||||||||
Realized gains (losses) on securities | (551 | ) | — | — | (551 | ) | |||||||||||
Income (loss) of managed investment entities: | |||||||||||||||||
Investment income | — | 59 | — | 59 | |||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | — | (43 | ) | (b) | (43 | ) | ||||||||||
Other income | 61 | — | (4 | ) | (c) | 57 | |||||||||||
Total revenues | 1,227 | 59 | (11 | ) | 1,275 | ||||||||||||
Costs and Expenses: | |||||||||||||||||
Insurance benefits and expenses | 1,516 | — | — | 1,516 | |||||||||||||
Expenses of managed investment entities | — | 59 | (11 | ) | (b)(c) | 48 | |||||||||||
Interest charges on borrowed money and other expenses | 99 | — | — | 99 | |||||||||||||
Total costs and expenses | 1,615 | 59 | (11 | ) | 1,663 | ||||||||||||
Earnings (loss) before income taxes | (388 | ) | — | — | (388 | ) | |||||||||||
Provision (credit) for income taxes | (84 | ) | — | — | (84 | ) | |||||||||||
Net earnings (loss), including noncontrolling interests | (304 | ) | — | — | (304 | ) | |||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (3 | ) | — | — | (3 | ) | |||||||||||
Net earnings (loss) attributable to shareholders | $ | (301 | ) | $ | — | $ | — | $ | (301 | ) | |||||||
Three months ended March 31, 2019 | |||||||||||||||||
Revenues: | |||||||||||||||||
Insurance net earned premiums | $ | 1,173 | $ | — | $ | — | $ | 1,173 | |||||||||
Net investment income | 553 | — | (11 | ) | (b) | 542 | |||||||||||
Realized gains (losses) on securities | 184 | — | — | 184 | |||||||||||||
Income (loss) of managed investment entities: | |||||||||||||||||
Investment income | — | 69 | — | 69 | |||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | (5 | ) | 5 | (b) | — | |||||||||||
Other income | 59 | — | (3 | ) | (c) | 56 | |||||||||||
Total revenues | 1,969 | 64 | (9 | ) | 2,024 | ||||||||||||
Costs and Expenses: | |||||||||||||||||
Insurance benefits and expenses | 1,430 | — | — | 1,430 | |||||||||||||
Expenses of managed investment entities | — | 64 | (9 | ) | (b)(c) | 55 | |||||||||||
Interest charges on borrowed money and other expenses | 126 | — | — | 126 | |||||||||||||
Total costs and expenses | 1,556 | 64 | (9 | ) | 1,611 | ||||||||||||
Earnings (loss) before income taxes | 413 | — | — | 413 | |||||||||||||
Provision (credit) for income taxes | 87 | — | — | 87 | |||||||||||||
Net earnings (loss), including noncontrolling interests | 326 | — | — | 326 | |||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (3 | ) | — | — | (3 | ) | |||||||||||
Net earnings (loss) attributable to shareholders | $ | 329 | $ | — | $ | — | $ | 329 |
Before CLO Consolidation (a) | Managed Investment Entities | Consol. Entries | Consolidated As Reported | ||||||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 3,774 | $ | — | $ | — | $ | 3,774 | |||||||||||||||||||||
Net investment income | 1,563 | — | 21 | (b) | 1,584 | ||||||||||||||||||||||||
Realized gains (losses) on: | |||||||||||||||||||||||||||||
Securities | (302) | — | — | (302) | |||||||||||||||||||||||||
Subsidiaries | (30) | — | — | (30) | |||||||||||||||||||||||||
Income (loss) of managed investment entities: | |||||||||||||||||||||||||||||
Investment income | — | 154 | — | 154 | |||||||||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | (10) | (37) | (b) | (47) | ||||||||||||||||||||||||
Other income | 164 | — | (11) | (c) | 153 | ||||||||||||||||||||||||
Total revenues | 5,169 | 144 | (27) | 5,286 | |||||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||
Insurance benefits and expenses | 4,831 | — | — | 4,831 | |||||||||||||||||||||||||
Expenses of managed investment entities | — | 144 | (27) | (b)(c) | 117 | ||||||||||||||||||||||||
Interest charges on borrowed money and other expenses | 374 | — | — | 374 | |||||||||||||||||||||||||
Total costs and expenses | 5,205 | 144 | (27) | 5,322 | |||||||||||||||||||||||||
Earnings (loss) before income taxes | (36) | — | — | (36) | |||||||||||||||||||||||||
Provision (credit) for income taxes | (63) | — | — | (63) | |||||||||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 27 | — | — | 27 | |||||||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (13) | — | — | (13) | |||||||||||||||||||||||||
Net earnings (loss) attributable to shareholders | $ | 40 | $ | — | $ | — | $ | 40 | |||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 3,815 | $ | — | $ | — | $ | 3,815 | |||||||||||||||||||||
Net investment income | 1,721 | — | (11) | (b) | 1,710 | ||||||||||||||||||||||||
Realized gains (losses) on securities | 222 | — | — | 222 | |||||||||||||||||||||||||
Income (loss) of managed investment entities: | |||||||||||||||||||||||||||||
Investment income | — | 206 | — | 206 | |||||||||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | (7) | (9) | (b) | (16) | ||||||||||||||||||||||||
Other income | 181 | — | (11) | (c) | 170 | ||||||||||||||||||||||||
Total revenues | 5,939 | 199 | (31) | 6,107 | |||||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||
Insurance benefits and expenses | 4,715 | — | — | 4,715 | |||||||||||||||||||||||||
Expenses of managed investment entities | — | 199 | (31) | (b)(c) | 168 | ||||||||||||||||||||||||
Interest charges on borrowed money and other expenses | 375 | — | — | 375 | |||||||||||||||||||||||||
Total costs and expenses | 5,090 | 199 | (31) | 5,258 | |||||||||||||||||||||||||
Earnings (loss) before income taxes | 849 | — | — | 849 | |||||||||||||||||||||||||
Provision (credit) for income taxes | 171 | — | — | 171 | |||||||||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 678 | — | — | 678 | |||||||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (8) | — | — | (8) | |||||||||||||||||||||||||
Net earnings (loss) attributable to shareholders | $ | 686 | $ | — | $ | — | $ | 686 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Components of net earnings (loss) attributable to shareholders: | |||||||
Core operating earnings before income taxes | $ | 211 | $ | 229 | |||
Pretax non-core items: | |||||||
Realized gains (losses) on securities | (551 | ) | 184 | ||||
Annuity non-core earnings (losses) (a) | (38 | ) | — | ||||
Neon exited lines (b) | (10 | ) | — | ||||
Earnings (loss) before income taxes | (388 | ) | 413 | ||||
Provision (credit) for income taxes: | |||||||
Core operating earnings | 40 | 48 | |||||
Non-core items: | |||||||
Realized gains (losses) on securities | (116 | ) | 39 | ||||
Annuity non-core earnings (losses) (a) | (8 | ) | — | ||||
Total provision for income taxes | (84 | ) | 87 | ||||
Net earnings (loss), including noncontrolling interests | (304 | ) | 326 | ||||
Less net earnings (loss) attributable to noncontrolling interests: | |||||||
Core operating earnings | — | (3 | ) | ||||
Neon exited lines (b) | (3 | ) | — | ||||
Total net earnings (loss) attributable to noncontrolling interests | (3 | ) | (3 | ) | |||
Net earnings (loss) attributable to shareholders | $ | (301 | ) | $ | 329 | ||
Net earnings (loss): | |||||||
Core net operating earnings | $ | 171 | $ | 184 | |||
Realized gains (losses) on securities | (435 | ) | 145 | ||||
Annuity non-core earnings (losses) (a) | (30 | ) | — | ||||
Neon exited lines (b) | (7 | ) | — | ||||
Net earnings (loss) attributable to shareholders | $ | (301 | ) | $ | 329 | ||
Diluted per share amounts: | |||||||
Core net operating earnings | $ | 1.88 | $ | 2.02 | |||
Realized gains (losses) on securities | (4.81 | ) | 1.61 | ||||
Annuity non-core earnings (losses) (a) | (0.34 | ) | — | ||||
Neon exited lines (b) | (0.07 | ) | — | ||||
Net earnings (loss) attributable to shareholders | $ | (3.34 | ) | $ | 3.63 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Components of net earnings (loss) attributable to shareholders: | |||||||||||||||||||||||||||||||||||
Core operating earnings before income taxes | $ | 274 | $ | 251 | $ | 600 | $ | 716 | |||||||||||||||||||||||||||
Pretax non-core items: | |||||||||||||||||||||||||||||||||||
Realized gains (losses) on securities | 45 | (18) | (302) | 222 | |||||||||||||||||||||||||||||||
Annuity non-core earnings (losses) (a) | (43) | (27) | (140) | (60) | |||||||||||||||||||||||||||||||
Neon exited lines (b) | (70) | — | (122) | — | |||||||||||||||||||||||||||||||
Special A&E charges | (68) | (29) | (68) | (29) | |||||||||||||||||||||||||||||||
Other | (4) | — | (4) | — | |||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | 134 | 177 | (36) | 849 | |||||||||||||||||||||||||||||||
Provision (credit) for income taxes: | |||||||||||||||||||||||||||||||||||
Core operating earnings | 57 | 50 | 117 | 143 | |||||||||||||||||||||||||||||||
Non-core items: | |||||||||||||||||||||||||||||||||||
Realized gains (losses) on securities | 10 | (4) | (63) | 46 | |||||||||||||||||||||||||||||||
Annuity non-core earnings (losses) (a) | (9) | (6) | (29) | (12) | |||||||||||||||||||||||||||||||
Neon exited lines (b) | (73) | — | (73) | — | |||||||||||||||||||||||||||||||
Special A&E charges | (14) | (6) | (14) | (6) | |||||||||||||||||||||||||||||||
Other | (1) | — | (1) | — | |||||||||||||||||||||||||||||||
Total provision (credit) for income taxes | (30) | 34 | (63) | 171 | |||||||||||||||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 164 | 143 | 27 | 678 | |||||||||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests: | |||||||||||||||||||||||||||||||||||
Core operating earnings (loss) | — | (4) | — | (8) | |||||||||||||||||||||||||||||||
Neon exited lines (b) | — | — | (13) | — | |||||||||||||||||||||||||||||||
Total net earnings (loss) attributable to noncontrolling interests | — | (4) | (13) | (8) | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to shareholders | $ | 164 | $ | 147 | $ | 40 | $ | 686 | |||||||||||||||||||||||||||
Net earnings (loss): | |||||||||||||||||||||||||||||||||||
Core net operating earnings | $ | 217 | $ | 205 | $ | 483 | $ | 581 | |||||||||||||||||||||||||||
Realized gains (losses) on securities | 35 | (14) | (239) | 176 | |||||||||||||||||||||||||||||||
Annuity non-core earnings (losses) (a) | (34) | (21) | (111) | (48) | |||||||||||||||||||||||||||||||
Neon exited lines (b) | 3 | — | (36) | — | |||||||||||||||||||||||||||||||
Special A&E charges | (54) | (23) | (54) | (23) | |||||||||||||||||||||||||||||||
Other | (3) | — | (3) | — | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to shareholders | $ | 164 | $ | 147 | $ | 40 | $ | 686 | |||||||||||||||||||||||||||
Diluted per share amounts: | |||||||||||||||||||||||||||||||||||
Core net operating earnings | $ | 2.45 | $ | 2.25 | $ | 5.37 | $ | 6.39 | |||||||||||||||||||||||||||
Realized gains (losses) on securities | 0.40 | (0.15) | (2.64) | 1.93 | |||||||||||||||||||||||||||||||
Annuity non-core earnings (losses) (a) | (0.38) | (0.23) | (1.23) | (0.52) | |||||||||||||||||||||||||||||||
Neon exited lines (b) | 0.03 | — | (0.41) | — | |||||||||||||||||||||||||||||||
Special A&E charges | (0.61) | (0.25) | (0.61) | (0.25) | |||||||||||||||||||||||||||||||
Other | (0.03) | — | (0.03) | — | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to shareholders | $ | 1.86 | $ | 1.62 | $ | 0.45 | $ | 7.55 |
Other | |||||||||||||||||||||||||||||||||||||||||||||||
P&C | Annuity | Consol. MIEs | Holding Co., other and unallocated | Total | Non-core reclass | Neon exited lines (c) | GAAP Total | ||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 1,339 | $ | — | $ | — | $ | — | $ | 1,339 | $ | — | $ | 42 | $ | 1,381 | |||||||||||||||||||||||||||||||
Net investment income | 111 | 464 | (13) | 9 | 571 | — | 1 | 572 | |||||||||||||||||||||||||||||||||||||||
Realized gains (losses) on: | |||||||||||||||||||||||||||||||||||||||||||||||
Securities | — | — | — | — | — | 45 | — | 45 | |||||||||||||||||||||||||||||||||||||||
Subsidiaries | — | — | — | — | — | — | (30) | (30) | |||||||||||||||||||||||||||||||||||||||
Income (loss) of MIEs: | |||||||||||||||||||||||||||||||||||||||||||||||
Investment income | — | — | 46 | — | 46 | — | — | 46 | |||||||||||||||||||||||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | — | 1 | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||||||||
Other income | — | 35 | (3) | 18 | 50 | (5) | — | 45 | |||||||||||||||||||||||||||||||||||||||
Total revenues | 1,450 | 499 | 31 | 27 | 2,007 | 40 | 13 | 2,060 | |||||||||||||||||||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Property and casualty insurance: | |||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss adjustment expenses | 856 | — | — | — | 856 | 47 | 60 | 963 | |||||||||||||||||||||||||||||||||||||||
Commissions and other underwriting expenses | 380 | — | — | 6 | 386 | — | 20 | 406 | |||||||||||||||||||||||||||||||||||||||
Annuity benefits | — | 282 | — | (10) | 272 | (69) | — | 203 | |||||||||||||||||||||||||||||||||||||||
Annuity and supplemental insurance acquisition expenses | — | 64 | — | 1 | 65 | 107 | — | 172 | |||||||||||||||||||||||||||||||||||||||
Interest charges on borrowed money | — | — | — | 24 | 24 | — | — | 24 | |||||||||||||||||||||||||||||||||||||||
Expenses of MIEs | — | — | 31 | — | 31 | — | — | 31 | |||||||||||||||||||||||||||||||||||||||
Other expenses | 9 | 32 | — | 58 | 99 | 25 | 3 | 127 | |||||||||||||||||||||||||||||||||||||||
Total costs and expenses | 1,245 | 378 | 31 | 79 | 1,733 | 110 | 83 | 1,926 | |||||||||||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | 205 | 121 | — | (52) | 274 | (70) | (70) | 134 | |||||||||||||||||||||||||||||||||||||||
Provision (credit) for income taxes | 46 | 24 | — | (13) | 57 | (14) | (73) | (30) | |||||||||||||||||||||||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 159 | 97 | — | (39) | 217 | (56) | 3 | 164 | |||||||||||||||||||||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Core Net Operating Earnings (Loss) | 159 | 97 | — | (39) | 217 | ||||||||||||||||||||||||||||||||||||||||||
Non-core earnings (loss) attributable to shareholders (a): | |||||||||||||||||||||||||||||||||||||||||||||||
Realized gains (losses) on securities, net of tax | — | — | — | 35 | 35 | (35) | — | — | |||||||||||||||||||||||||||||||||||||||
Annuity non-core earnings (losses), net of tax (b) | — | (34) | — | — | (34) | 34 | — | — | |||||||||||||||||||||||||||||||||||||||
Neon exited lines (c) | 3 | — | — | — | 3 | — | (3) | — | |||||||||||||||||||||||||||||||||||||||
Special A&E charges, net of tax | (37) | — | — | (17) | (54) | 54 | — | — | |||||||||||||||||||||||||||||||||||||||
Other, net of tax | — | — | — | (3) | (3) | 3 | — | — | |||||||||||||||||||||||||||||||||||||||
Net Earnings (Loss) Attributable to Shareholders | $ | 125 | $ | 63 | $ | — | $ | (24) | $ | 164 | $ | — | $ | — | $ | 164 |
Other | |||||||||||||||||||||||||||||||
P&C | Annuity | Consol. MIEs | Holding Co., other and unallocated | Total | Non-core reclass | Neon exited lines (c) | GAAP Total | ||||||||||||||||||||||||
Three months ended March 31, 2020 | |||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 1,138 | $ | — | $ | — | $ | — | $ | 1,138 | $ | — | $ | 71 | $ | 1,209 | |||||||||||||||
Net investment income | 99 | 422 | 36 | (7 | ) | 550 | — | (6 | ) | 544 | |||||||||||||||||||||
Realized gains (losses) on securities | — | — | — | — | — | (551 | ) | — | (551 | ) | |||||||||||||||||||||
Income (loss) of MIEs: | |||||||||||||||||||||||||||||||
Investment income | — | — | 59 | — | 59 | — | — | 59 | |||||||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | — | (43 | ) | — | (43 | ) | — | — | (43 | ) | ||||||||||||||||||||
Other income | 5 | 35 | (4 | ) | 21 | 57 | — | — | 57 | ||||||||||||||||||||||
Total revenues | 1,242 | 457 | 48 | 14 | 1,761 | (551 | ) | 65 | 1,275 | ||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||||
Property and casualty insurance: | |||||||||||||||||||||||||||||||
Losses and loss adjustment expenses | 667 | — | — | — | 667 | — | 40 | 707 | |||||||||||||||||||||||
Commissions and other underwriting expenses | 383 | — | — | 5 | 388 | — | 32 | 420 | |||||||||||||||||||||||
Annuity benefits | — | 287 | — | (8 | ) | 279 | (3 | ) | — | 276 | |||||||||||||||||||||
Annuity and supplemental insurance acquisition expenses | — | 71 | — | 1 | 72 | 41 | — | 113 | |||||||||||||||||||||||
Interest charges on borrowed money | — | — | — | 17 | 17 | — | — | 17 | |||||||||||||||||||||||
Expenses of MIEs | — | — | 48 | — | 48 | — | — | 48 | |||||||||||||||||||||||
Other expenses | 11 | 32 | — | 36 | 79 | — | 3 | 82 | |||||||||||||||||||||||
Total costs and expenses | 1,061 | 390 | 48 | 51 | 1,550 | 38 | 75 | 1,663 | |||||||||||||||||||||||
Earnings (loss) before income taxes | 181 | 67 | — | (37 | ) | 211 | (589 | ) | (10 | ) | (388 | ) | |||||||||||||||||||
Provision (credit) for income taxes | 38 | 14 | — | (12 | ) | 40 | (124 | ) | — | (84 | ) | ||||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 143 | 53 | — | (25 | ) | 171 | (465 | ) | (10 | ) | (304 | ) | |||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | — | — | — | — | — | — | (3 | ) | (3 | ) | |||||||||||||||||||||
Core Net Operating Earnings (Loss) | 143 | 53 | — | (25 | ) | 171 | |||||||||||||||||||||||||
Non-core earnings (loss) attributable to shareholders (a): | |||||||||||||||||||||||||||||||
Realized gains (losses) on securities, net of tax | — | — | — | (435 | ) | (435 | ) | 435 | — | — | |||||||||||||||||||||
Annuity non-core earnings (losses), net of tax (b) | — | (30 | ) | — | — | (30 | ) | 30 | — | — | |||||||||||||||||||||
Neon exited lines (c) | (7 | ) | — | — | — | (7 | ) | — | 7 | — | |||||||||||||||||||||
Net Earnings (Loss) Attributable to Shareholders | $ | 136 | $ | 23 | $ | — | $ | (460 | ) | $ | (301 | ) | $ | — | $ | — | $ | (301 | ) |
Other | |||||||||||||||||||||||||||||||||||||||||
P&C | Annuity | Consol. MIEs | Holding Co., other and unallocated | Total | Non-core reclass | GAAP Total | |||||||||||||||||||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 1,442 | $ | — | $ | — | $ | — | $ | 1,442 | $ | — | $ | 1,442 | |||||||||||||||||||||||||||
Net investment income | 124 | 448 | 5 | 11 | 588 | — | 588 | ||||||||||||||||||||||||||||||||||
Realized gains (losses) on securities | — | — | — | — | — | (18) | (18) | ||||||||||||||||||||||||||||||||||
Income (loss) of MIEs: | |||||||||||||||||||||||||||||||||||||||||
Investment income | — | — | 67 | — | 67 | — | 67 | ||||||||||||||||||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | — | (14) | — | (14) | — | (14) | ||||||||||||||||||||||||||||||||||
Other income | 5 | 31 | (4) | 25 | 57 | 1 | 58 | ||||||||||||||||||||||||||||||||||
Total revenues | 1,571 | 479 | 54 | 36 | 2,140 | (17) | 2,123 | ||||||||||||||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||||||||||||||
Property and casualty insurance: | |||||||||||||||||||||||||||||||||||||||||
Losses and loss adjustment expenses | 926 | — | — | — | 926 | 18 | 944 | ||||||||||||||||||||||||||||||||||
Commissions and other underwriting expenses | 444 | — | ��� | 6 | 450 | — | 450 | ||||||||||||||||||||||||||||||||||
Annuity benefits | — | 280 | — | (4) | 276 | (26) | 250 | ||||||||||||||||||||||||||||||||||
Annuity and supplemental insurance acquisition expenses | — | 64 | — | 2 | 66 | 54 | 120 | ||||||||||||||||||||||||||||||||||
Interest charges on borrowed money | — | — | — | 17 | 17 | — | 17 | ||||||||||||||||||||||||||||||||||
Expenses of MIEs | — | — | 54 | — | 54 | — | 54 | ||||||||||||||||||||||||||||||||||
Other expenses | 11 | 35 | — | 54 | 100 | 11 | 111 | ||||||||||||||||||||||||||||||||||
Total costs and expenses | 1,381 | 379 | 54 | 75 | 1,889 | 57 | 1,946 | ||||||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | 190 | 100 | — | (39) | 251 | (74) | 177 | ||||||||||||||||||||||||||||||||||
Provision (credit) for income taxes | 39 | 20 | — | (9) | 50 | (16) | 34 | ||||||||||||||||||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 151 | 80 | — | (30) | 201 | (58) | 143 | ||||||||||||||||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (4) | — | — | — | (4) | — | (4) | ||||||||||||||||||||||||||||||||||
Core Net Operating Earnings (Loss) | 155 | 80 | — | (30) | 205 | ||||||||||||||||||||||||||||||||||||
Non-core earnings (loss) attributable to shareholders (a): | |||||||||||||||||||||||||||||||||||||||||
Realized gains (losses) on securities, net of tax | — | — | — | (14) | (14) | 14 | — | ||||||||||||||||||||||||||||||||||
Annuity non-core earnings (losses), net of tax (b) | — | (21) | — | — | (21) | 21 | — | ||||||||||||||||||||||||||||||||||
Special A&E charges, net of tax | (14) | — | — | (9) | (23) | 23 | — | ||||||||||||||||||||||||||||||||||
Net Earnings (Loss) Attributable to Shareholders | $ | 141 | $ | 59 | $ | — | $ | (53) | $ | 147 | $ | — | $ | 147 |
Other | |||||||||||||||||||||||||||
P&C | Annuity | Consol. MIEs | Holding Co., other and unallocated | Total | Non-core reclass | GAAP Total | |||||||||||||||||||||
Three months ended March 31, 2019 | |||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 1,173 | $ | — | $ | — | $ | — | $ | 1,173 | $ | — | $ | 1,173 | |||||||||||||
Net investment income | 104 | 435 | (11 | ) | 14 | 542 | — | 542 | |||||||||||||||||||
Realized gains (losses) on securities | — | — | — | — | — | 184 | 184 | ||||||||||||||||||||
Income (loss) of MIEs: | |||||||||||||||||||||||||||
Investment income | — | — | 69 | — | 69 | — | 69 | ||||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | — | — | — | — | — | — | ||||||||||||||||||||
Other income | 3 | 28 | (3 | ) | 28 | 56 | — | 56 | |||||||||||||||||||
Total revenues | 1,280 | 463 | 55 | 42 | 1,840 | 184 | 2,024 | ||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||
Property and casualty insurance: | |||||||||||||||||||||||||||
Losses and loss adjustment expenses | 692 | — | — | — | 692 | — | 692 | ||||||||||||||||||||
Commissions and other underwriting expenses | 394 | — | — | 5 | 399 | — | 399 | ||||||||||||||||||||
Annuity benefits | — | 312 | — | (1 | ) | 311 | — | 311 | |||||||||||||||||||
Annuity and supplemental insurance acquisition expenses | — | 26 | — | 2 | 28 | — | 28 | ||||||||||||||||||||
Interest charges on borrowed money | — | — | — | 16 | 16 | — | 16 | ||||||||||||||||||||
Expenses of MIEs | — | — | 55 | — | 55 | — | 55 | ||||||||||||||||||||
Other expenses | 12 | 35 | — | 63 | 110 | — | 110 | ||||||||||||||||||||
Total costs and expenses | 1,098 | 373 | 55 | 85 | 1,611 | — | 1,611 | ||||||||||||||||||||
Earnings (loss) before income taxes | 182 | 90 | — | (43 | ) | 229 | 184 | 413 | |||||||||||||||||||
Provision (credit) for income taxes | 37 | 19 | — | (8 | ) | 48 | 39 | 87 | |||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 145 | 71 | — | (35 | ) | 181 | 145 | 326 | |||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (3 | ) | — | — | — | (3 | ) | — | �� | (3 | ) | ||||||||||||||||
Core Net Operating Earnings (Loss) | 148 | 71 | — | (35 | ) | 184 | |||||||||||||||||||||
Non-core earnings (loss) attributable to shareholders (a): | |||||||||||||||||||||||||||
Realized gains (losses) on securities, net of tax | — | — | — | 145 | 145 | (145 | ) | — | |||||||||||||||||||
Net Earnings (Loss) Attributable to Shareholders | $ | 148 | $ | 71 | $ | — | $ | 110 | $ | 329 | $ | — | $ | 329 |
Three months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Gross written premiums | $ | 2,223 | $ | 2,351 | (5 | %) | |||||||||||
Reinsurance premiums ceded | (735) | (733) | — | % | |||||||||||||
Net written premiums | 1,488 | 1,618 | (8 | %) | |||||||||||||
Change in unearned premiums | (149) | (176) | (15 | %) | |||||||||||||
Net earned premiums | 1,339 | 1,442 | (7 | %) | |||||||||||||
Loss and loss adjustment expenses (a) | 856 | 926 | (8 | %) | |||||||||||||
Commissions and other underwriting expenses | 380 | 444 | (14 | %) | |||||||||||||
Core underwriting gain | 103 | 72 | 43 | % | |||||||||||||
Net investment income | 111 | 124 | (10 | %) | |||||||||||||
Other income and expenses, net | (9) | (6) | 50 | % | |||||||||||||
Core earnings before income taxes | 205 | 190 | 8 | % | |||||||||||||
Pretax non-core special A&E charges | (47) | (18) | 161 | % | |||||||||||||
Pretax non-core Neon exited lines (b) | (70) | — | — | % | |||||||||||||
GAAP earnings before income taxes and noncontrolling interests | $ | 88 | $ | 172 | (49 | %) | |||||||||||
(a) Excludes pretax non-core special A&E charges of $47 million and $18 million in the third quarter of 2020 and 2019, respectively. (b) In December 2019, AFG initiated actions to exit the Lloyd’s of London insurance market, which included placing its Lloyd’s subsidiaries including its Lloyd’s Managing Agency, Neon Underwriting Ltd. (“Neon”), into run-off. As discussed under “Results of Operations — General,” following the December 2019 decision to exit the Lloyd’s of London insurance market, the results from the Neon exited lines are being treated as non-core earnings (losses) prospectively beginning in 2020. Each line item in the table above has been adjusted to remove the impact from the Neon run-off operations in 2020. The following table details the impact of the Neon exited lines to each component of earnings (loss) before income taxes in the property and casualty insurance operations for the three months ended September 30, 2020 (in millions): | |||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||
Excluding Neon exited lines | Neon exited lines | Total | |||||||||||||||
Gross written premiums | $ | 2,223 | $ | 8 | $ | 2,231 | |||||||||||
Reinsurance premiums ceded | (735) | (7) | (742) | ||||||||||||||
Net written premiums | 1,488 | 1 | 1,489 | ||||||||||||||
Change in unearned premiums | (149) | 41 | (108) | ||||||||||||||
Net earned premiums | 1,339 | 42 | 1,381 | ||||||||||||||
Loss and loss adjustment expenses | 856 | 60 | 916 | ||||||||||||||
Commissions and other underwriting expenses | 380 | 20 | 400 | ||||||||||||||
Underwriting gain (loss) | 103 | (38) | 65 | ||||||||||||||
Net investment income | 111 | 1 | 112 | ||||||||||||||
Loss on sale of subsidiaries | — | (30) | (30) | ||||||||||||||
Other income and expenses, net | (9) | (3) | (12) | ||||||||||||||
Earnings (loss) before income taxes and noncontrolling interests | 205 | (70) | 135 | ||||||||||||||
Pretax non-core special A&E charges | (47) | — | (47) | ||||||||||||||
GAAP earnings (loss) before income taxes and noncontrolling interests | $ | 158 | $ | (70) | $ | 88 | |||||||||||
Three months ended March 31, | |||||||||||
2020 | 2019 | % Change | |||||||||
Gross written premiums | $ | 1,526 | $ | 1,535 | (1 | %) | |||||
Reinsurance premiums ceded | (361 | ) | (388 | ) | (7 | %) | |||||
Net written premiums | 1,165 | 1,147 | 2 | % | |||||||
Change in unearned premiums | (27 | ) | 26 | (204 | %) | ||||||
Net earned premiums | 1,138 | 1,173 | (3 | %) | |||||||
Loss and loss adjustment expenses | 667 | 692 | (4 | %) | |||||||
Commissions and other underwriting expenses | 383 | 394 | (3 | %) | |||||||
Core underwriting gain | 88 | 87 | 1 | % | |||||||
Net investment income | 99 | 104 | (5 | %) | |||||||
Other income and expenses, net | (6 | ) | (9 | ) | (33 | %) | |||||
Core earnings before income taxes | 181 | 182 | (1 | %) | |||||||
Pretax non-core Neon exited lines (*) | (10 | ) | — | — | % | ||||||
GAAP earnings before income taxes | $ | 171 | $ | 182 | (6 | %) | |||||
(*) In December 2019, AFG initiated actions to exit the Lloyd’s of London insurance market, which included placing its Lloyd’s subsidiaries including its Lloyd’s Managing Agency, Neon Underwriting Ltd. (“Neon”), into run-off. As discussed under “Results of Operations — General,” following the December 2019 decision to exit the Lloyd’s of London insurance market, the results from the Neon exited lines are being treated as non-core earnings (losses) prospectively beginning in 2020. Each line item in the table above has been adjusted to remove the impact from the Neon run-off operations in 2020. The following table details the impact of the Neon exited lines to each component of earnings (loss) before income taxes in the property and casualty insurance operations for the three months ended March 31, 2020 (in millions): | |||||||||||
Three months ended March 31, 2020 | |||||||||||
Excluding Neon exited lines | Neon exited lines | Total | |||||||||
Gross written premiums | $ | 1,526 | $ | 56 | $ | 1,582 | |||||
Reinsurance premiums ceded | (361 | ) | (57 | ) | (418 | ) | |||||
Net written premiums | 1,165 | (1 | ) | 1,164 | |||||||
Change in unearned premiums | (27 | ) | 72 | 45 | |||||||
Net earned premiums | 1,138 | 71 | 1,209 | ||||||||
Loss and loss adjustment expenses | 667 | 40 | 707 | ||||||||
Commissions and other underwriting expenses | 383 | 32 | 415 | ||||||||
Underwriting gain (loss) | 88 | (1 | ) | 87 | |||||||
Net investment income | 99 | (6 | ) | 93 | |||||||
Other income and expenses, net | (6 | ) | (3 | ) | (9 | ) | |||||
Earnings (loss) before income taxes | $ | 181 | $ | (10 | ) | $ | 171 | ||||
Three months ended March 31, | |||||||||||
2020 | 2019 | Change | |||||||||
Combined Ratios: | |||||||||||
Specialty lines | |||||||||||
Loss and LAE ratio | 58.5 | % | 58.9 | % | (0.4 | %) | |||||
Underwriting expense ratio | 33.7 | % | 33.6 | % | 0.1 | % | |||||
Combined ratio | 92.2 | % | 92.5 | % | (0.3 | %) | |||||
Aggregate — including exited lines | |||||||||||
Loss and LAE ratio | 58.5 | % | 59.0 | % | (0.5 | %) | |||||
Underwriting expense ratio | 34.3 | % | 33.6 | % | 0.7 | % | |||||
Combined ratio | 92.8 | % | 92.6 | % | 0.2 | % |
Three months ended September 30, | |||||||||||||||||
2020 | 2019 | Change | |||||||||||||||
Combined Ratios: | |||||||||||||||||
Specialty lines | |||||||||||||||||
Loss and LAE ratio | 63.8 | % | 63.1 | % | 0.7 | % | |||||||||||
Underwriting expense ratio | 28.3 | % | 30.9 | % | (2.6 | %) | |||||||||||
Combined ratio | 92.1 | % | 94.0 | % | (1.9 | %) | |||||||||||
Aggregate — including exited lines | |||||||||||||||||
Loss and LAE ratio | 69.8 | % | 65.4 | % | 4.4 | % | |||||||||||
Underwriting expense ratio | 29.0 | % | 30.9 | % | (1.9 | %) | |||||||||||
Combined ratio | 98.8 | % | 96.3 | % | 2.5 | % |
Three months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
GWP | % | GWP | % | % Change | |||||||||||||||||||||||||
Property and transportation | $ | 1,061 | 48 | % | $ | 1,113 | 47 | % | (5 | %) | |||||||||||||||||||
Specialty casualty | 978 | 44 | % | 1,031 | 44 | % | (5 | %) | |||||||||||||||||||||
Specialty financial | 184 | 8 | % | 207 | 9 | % | (11 | %) | |||||||||||||||||||||
Total specialty | 2,223 | 100 | % | 2,351 | 100 | % | (5 | %) | |||||||||||||||||||||
Neon exited lines | 8 | — | % | — | — | % | — | % | |||||||||||||||||||||
Aggregate | $ | 2,231 | 100 | % | $ | 2,351 | 100 | % | (5 | %) |
Three months ended March 31, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
GWP | % | GWP | % | % Change | ||||||||||||
Property and transportation | $ | 494 | 31 | % | $ | 439 | 29 | % | 13 | % | ||||||
Specialty casualty | 849 | 54 | % | 912 | 59 | % | (7 | %) | ||||||||
Specialty financial | 183 | 11 | % | 184 | 12 | % | (1 | %) | ||||||||
Total specialty | 1,526 | 96 | % | 1,535 | 100 | % | (1 | %) | ||||||||
Neon exited lines | 56 | 4 | % | — | — | % | — | % | ||||||||
Aggregate | $ | 1,582 | 100 | % | $ | 1,535 | 100 | % | 3 | % |
Three months ended March 31, | ||||||||||||||||
2020 | 2019 | Change in | ||||||||||||||
Ceded | % of GWP | Ceded | % of GWP | % of GWP | ||||||||||||
Property and transportation | $ | (108 | ) | 22 | % | $ | (95 | ) | 22 | % | — | % | ||||
Specialty casualty | (263 | ) | 31 | % | (286 | ) | 31 | % | — | % | ||||||
Specialty financial | (34 | ) | 19 | % | (39 | ) | 21 | % | (2 | %) | ||||||
Other specialty | 44 | 32 | ||||||||||||||
Total specialty | (361 | ) | 24 | % | (388 | ) | 25 | % | (1 | %) | ||||||
Neon exited lines | (57 | ) | 102 | % | — | — | % | 102 | % | |||||||
Aggregate | $ | (418 | ) | 26 | % | $ | (388 | ) | 25 | % | 1 | % |
Three months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | Change in | |||||||||||||||||||||||||||
Ceded | % of GWP | Ceded | % of GWP | % of GWP | |||||||||||||||||||||||||
Property and transportation | $ | (426) | 40 | % | $ | (452) | 41 | % | (1 | %) | |||||||||||||||||||
Specialty casualty | (336) | 34 | % | (287) | 28 | % | 6 | % | |||||||||||||||||||||
Specialty financial | (31) | 17 | % | (40) | 19 | % | (2 | %) | |||||||||||||||||||||
Other specialty | 58 | 46 | |||||||||||||||||||||||||||
Total specialty | (735) | 33 | % | (733) | 31 | % | 2 | % | |||||||||||||||||||||
Neon exited lines | (7) | 88 | % | — | — | % | 88 | % | |||||||||||||||||||||
Aggregate | $ | (742) | 33 | % | $ | (733) | 31 | % | 2 | % |
Three months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
NWP | % | NWP | % | % Change | |||||||||||||||||||||||||
Property and transportation | $ | 635 | 43 | % | $ | 661 | 41 | % | (4 | %) | |||||||||||||||||||
Specialty casualty | 642 | 43 | % | 744 | 46 | % | (14 | %) | |||||||||||||||||||||
Specialty financial | 153 | 10 | % | 167 | 10 | % | (8 | %) | |||||||||||||||||||||
Other specialty | 58 | 4 | % | 46 | 3 | % | 26 | % | |||||||||||||||||||||
Total specialty | 1,488 | 100 | % | 1,618 | 100 | % | (8 | %) | |||||||||||||||||||||
Neon exited lines | 1 | — | % | — | — | % | — | % | |||||||||||||||||||||
Aggregate | $ | 1,489 | 100 | % | $ | 1,618 | 100 | % | (8 | %) |
Three months ended March 31, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
NWP | % | NWP | % | % Change | ||||||||||||
Property and transportation | $ | 386 | 33 | % | $ | 344 | 30 | % | 12 | % | ||||||
Specialty casualty | 586 | 50 | % | 626 | 55 | % | (6 | %) | ||||||||
Specialty financial | 149 | 13 | % | 145 | 13 | % | 3 | % | ||||||||
Other specialty | 44 | 4 | % | 32 | 2 | % | 38 | % | ||||||||
Total specialty | 1,165 | 100 | % | 1,147 | 100 | % | 2 | % | ||||||||
Neon exited lines | (1 | ) | — | % | — | — | % | — | % | |||||||
Aggregate | $ | 1,164 | 100 | % | $ | 1,147 | 100 | % | 1 | % |
Three months ended March 31, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
NEP | % | NEP | % | % Change | ||||||||||||
Property and transportation | $ | 386 | 32 | % | $ | 361 | 31 | % | 7 | % | ||||||
Specialty casualty | 556 | 46 | % | 629 | 54 | % | (12 | %) | ||||||||
Specialty financial | 156 | 13 | % | 146 | 12 | % | 7 | % | ||||||||
Other specialty | 40 | 3 | % | 37 | 3 | % | 8 | % | ||||||||
Total specialty | 1,138 | 94 | % | 1,173 | 100 | % | (3 | %) | ||||||||
Neon exited lines | 71 | 6 | % | — | — | % | — | % | ||||||||
Aggregate | $ | 1,209 | 100 | % | $ | 1,173 | 100 | % | 3 | % |
Three months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
NEP | % | NEP | % | % Change | |||||||||||||||||||||||||
Property and transportation | $ | 574 | 42 | % | $ | 583 | 40 | % | (2 | %) | |||||||||||||||||||
Specialty casualty | 560 | 41 | % | 658 | 46 | % | (15 | %) | |||||||||||||||||||||
Specialty financial | 155 | 11 | % | 161 | 11 | % | (4 | %) | |||||||||||||||||||||
Other specialty | 50 | 3 | % | 40 | 3 | % | 25 | % | |||||||||||||||||||||
Total specialty | 1,339 | 97 | % | 1,442 | 100 | % | (7 | %) | |||||||||||||||||||||
Neon exited lines | 42 | 3 | % | — | — | % | — | % | |||||||||||||||||||||
Aggregate | $ | 1,381 | 100 | % | $ | 1,442 | 100 | % | (4 | %) |
Three months ended March 31, | Three months ended March 31, | |||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | ||||||||||||
Property and transportation | ||||||||||||||||
Loss and LAE ratio | 61.4 | % | 62.2 | % | (0.8 | %) | ||||||||||
Underwriting expense ratio | 31.5 | % | 26.8 | % | 4.7 | % | ||||||||||
Combined ratio | 92.9 | % | 89.0 | % | 3.9 | % | ||||||||||
Underwriting profit | $ | 27 | $ | 39 | ||||||||||||
Specialty casualty | ||||||||||||||||
Loss and LAE ratio | 61.1 | % | 61.6 | % | (0.5 | %) | ||||||||||
Underwriting expense ratio | 29.6 | % | 32.6 | % | (3.0 | %) | ||||||||||
Combined ratio | 90.7 | % | 94.2 | % | (3.5 | %) | ||||||||||
Underwriting profit | $ | 52 | $ | 36 | ||||||||||||
Specialty financial | ||||||||||||||||
Loss and LAE ratio | 38.0 | % | 38.2 | % | (0.2 | %) | ||||||||||
Underwriting expense ratio | 51.1 | % | 53.2 | % | (2.1 | %) | ||||||||||
Combined ratio | 89.1 | % | 91.4 | % | (2.3 | %) | ||||||||||
Underwriting profit | $ | 17 | $ | 13 | ||||||||||||
Total Specialty | ||||||||||||||||
Loss and LAE ratio | 58.5 | % | 58.9 | % | (0.4 | %) | ||||||||||
Underwriting expense ratio | 33.7 | % | 33.6 | % | 0.1 | % | ||||||||||
Combined ratio | 92.2 | % | 92.5 | % | (0.3 | %) | ||||||||||
Underwriting profit | $ | 89 | $ | 88 | ||||||||||||
Aggregate — including exited lines | ||||||||||||||||
Loss and LAE ratio | 58.5 | % | 59.0 | % | (0.5 | %) | ||||||||||
Underwriting expense ratio | 34.3 | % | 33.6 | % | 0.7 | % | ||||||||||
Combined ratio | 92.8 | % | 92.6 | % | 0.2 | % | ||||||||||
Underwriting profit | $ | 87 | $ | 87 |
Three months ended September 30, | Three months ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | |||||||||||||||||||||||||
Property and transportation | |||||||||||||||||||||||||||||
Loss and LAE ratio | 70.1 | % | 72.1 | % | (2.0 | %) | |||||||||||||||||||||||
Underwriting expense ratio | 21.8 | % | 21.4 | % | 0.4 | % | |||||||||||||||||||||||
Combined ratio | 91.9 | % | 93.5 | % | (1.6 | %) | |||||||||||||||||||||||
Underwriting profit | $ | 47 | $ | 38 | |||||||||||||||||||||||||
Specialty casualty | |||||||||||||||||||||||||||||
Loss and LAE ratio | 62.9 | % | 63.1 | % | (0.2 | %) | |||||||||||||||||||||||
Underwriting expense ratio | 27.8 | % | 33.4 | % | (5.6 | %) | |||||||||||||||||||||||
Combined ratio | 90.7 | % | 96.5 | % | (5.8 | %) | |||||||||||||||||||||||
Underwriting profit | $ | 53 | $ | 23 | |||||||||||||||||||||||||
Specialty financial | |||||||||||||||||||||||||||||
Loss and LAE ratio | 39.9 | % | 29.7 | % | 10.2 | % | |||||||||||||||||||||||
Underwriting expense ratio | 51.7 | % | 54.0 | % | (2.3 | %) | |||||||||||||||||||||||
Combined ratio | 91.6 | % | 83.7 | % | 7.9 | % | |||||||||||||||||||||||
Underwriting profit (loss) | $ | 13 | $ | 26 | |||||||||||||||||||||||||
Total Specialty | |||||||||||||||||||||||||||||
Loss and LAE ratio | 63.8 | % | 63.1 | % | 0.7 | % | |||||||||||||||||||||||
Underwriting expense ratio | 28.3 | % | 30.9 | % | (2.6 | %) | |||||||||||||||||||||||
Combined ratio | 92.1 | % | 94.0 | % | (1.9 | %) | |||||||||||||||||||||||
Underwriting profit | $ | 104 | $ | 88 | |||||||||||||||||||||||||
Aggregate — including exited lines | |||||||||||||||||||||||||||||
Loss and LAE ratio | 69.8 | % | 65.4 | % | 4.4 | % | |||||||||||||||||||||||
Underwriting expense ratio | 29.0 | % | 30.9 | % | (1.9 | %) | |||||||||||||||||||||||
Combined ratio | 98.8 | % | 96.3 | % | 2.5 | % | |||||||||||||||||||||||
Underwriting profit | $ | 18 | $ | 54 |
Three months ended March 31, | Three months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||
Amount | Ratio | Change in | Amount | Ratio | Change in | ||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | Ratio | 2020 | 2019 | 2020 | 2019 | Ratio | ||||||||||||||||||||||||||||||||||||
Property and transportation | Property and transportation | ||||||||||||||||||||||||||||||||||||||||||||
Current year, excluding catastrophe losses | $ | 253 | $ | 242 | 65.4 | % | 66.8 | % | (1.4 | %) | |||||||||||||||||||||||||||||||||||
Current year, excluding COVID-19 related and catastrophe losses | Current year, excluding COVID-19 related and catastrophe losses | $ | 410 | $ | 430 | 71.4 | % | 73.5 | % | (2.1 | %) | ||||||||||||||||||||||||||||||||||
Prior accident years development | (24 | ) | (26 | ) | (6.2 | %) | (7.2 | %) | 1.0 | % | Prior accident years development | (26) | (17) | (4.5 | %) | (2.8 | %) | (1.7 | %) | ||||||||||||||||||||||||||
COVID-19 related losses | COVID-19 related losses | 1 | — | 0.1 | % | — | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||
Current year catastrophe losses | 8 | 9 | 2.2 | % | 2.6 | % | (0.4 | %) | Current year catastrophe losses | 18 | 8 | 3.1 | % | 1.4 | % | 1.7 | % | ||||||||||||||||||||||||||||
Property and transportation losses and LAE and ratio | $ | 237 | $ | 225 | 61.4 | % | 62.2 | % | (0.8 | %) | Property and transportation losses and LAE and ratio | $ | 403 | $ | 421 | 70.1 | % | 72.1 | % | (2.0 | %) | ||||||||||||||||||||||||
Specialty casualty | Specialty casualty | ||||||||||||||||||||||||||||||||||||||||||||
Current year, excluding catastrophe losses | $ | 364 | $ | 400 | 65.4 | % | 63.7 | % | 1.7 | % | |||||||||||||||||||||||||||||||||||
Current year, excluding COVID-19 related and catastrophe losses | Current year, excluding COVID-19 related and catastrophe losses | $ | 366 | $ | 425 | 65.1 | % | 64.4 | % | 0.7 | % | ||||||||||||||||||||||||||||||||||
Prior accident years development | (24 | ) | (13 | ) | (4.3 | %) | (2.2 | %) | (2.1 | %) | Prior accident years development | (16) | (19) | (2.9 | %) | (2.9 | %) | — | % | ||||||||||||||||||||||||||
COVID-19 related losses | COVID-19 related losses | (1) | — | (0.1 | %) | — | % | (0.1 | %) | ||||||||||||||||||||||||||||||||||||
Current year catastrophe losses | — | 1 | — | % | 0.1 | % | (0.1 | %) | Current year catastrophe losses | 3 | 10 | 0.8 | % | 1.6 | % | (0.8 | %) | ||||||||||||||||||||||||||||
Specialty casualty losses and LAE and ratio | $ | 340 | $ | 388 | 61.1 | % | 61.6 | % | (0.5 | %) | Specialty casualty losses and LAE and ratio | $ | 352 | $ | 416 | 62.9 | % | 63.1 | % | (0.2 | %) | ||||||||||||||||||||||||
Specialty financial | Specialty financial | ||||||||||||||||||||||||||||||||||||||||||||
Current year, excluding catastrophe losses | $ | 60 | $ | 60 | 38.6 | % | 41.1 | % | (2.5 | %) | |||||||||||||||||||||||||||||||||||
Current year, excluding COVID-19 related and catastrophe losses | Current year, excluding COVID-19 related and catastrophe losses | $ | 59 | $ | 53 | 37.8 | % | 33.2 | % | 4.6 | % | ||||||||||||||||||||||||||||||||||
Prior accident years development | (2 | ) | (6 | ) | (1.2 | %) | (4.3 | %) | 3.1 | % | Prior accident years development | (9) | (9) | (5.7 | %) | (5.5 | %) | (0.2 | %) | ||||||||||||||||||||||||||
COVID-19 related losses | COVID-19 related losses | (1) | — | (0.8 | %) | — | % | (0.8 | %) | ||||||||||||||||||||||||||||||||||||
Current year catastrophe losses | 1 | 2 | 0.6 | % | 1.4 | % | (0.8 | %) | Current year catastrophe losses | 13 | 3 | 8.6 | % | 2.0 | % | 6.6 | % | ||||||||||||||||||||||||||||
Specialty financial losses and LAE and ratio | $ | 59 | $ | 56 | 38.0 | % | 38.2 | % | (0.2 | %) | Specialty financial losses and LAE and ratio | $ | 62 | $ | 47 | 39.9 | % | 29.7 | % | 10.2 | % | ||||||||||||||||||||||||
Total Specialty | Total Specialty | ||||||||||||||||||||||||||||||||||||||||||||
Current year, excluding catastrophe losses | $ | 705 | $ | 725 | 61.9 | % | 61.8 | % | 0.1 | % | |||||||||||||||||||||||||||||||||||
Current year, excluding COVID-19 related and catastrophe losses | Current year, excluding COVID-19 related and catastrophe losses | $ | 867 | $ | 934 | 64.8 | % | 64.6 | % | 0.2 | % | ||||||||||||||||||||||||||||||||||
Prior accident years development | (48 | ) | (46 | ) | (4.2 | %) | (4.0 | %) | (0.2 | %) | Prior accident years development | (48) | (46) | (3.7 | %) | (3.1 | %) | (0.6 | %) | ||||||||||||||||||||||||||
COVID-19 related losses | COVID-19 related losses | — | — | — | % | — | % | — | % | ||||||||||||||||||||||||||||||||||||
Current year catastrophe losses | 9 | 12 | 0.8 | % | 1.1 | % | (0.3 | %) | Current year catastrophe losses | 36 | 22 | 2.7 | % | 1.6 | % | 1.1 | % | ||||||||||||||||||||||||||||
Total Specialty losses and LAE and ratio | $ | 666 | $ | 691 | 58.5 | % | 58.9 | % | (0.4 | %) | Total Specialty losses and LAE and ratio | $ | 855 | $ | 910 | 63.8 | % | 63.1 | % | 0.7 | % | ||||||||||||||||||||||||
Aggregate — including exited lines | Aggregate — including exited lines | ||||||||||||||||||||||||||||||||||||||||||||
Current year, excluding catastrophe losses | $ | 740 | $ | 725 | 61.2 | % | 61.8 | % | (0.6 | %) | |||||||||||||||||||||||||||||||||||
Current year, excluding COVID-19 related and catastrophe losses | Current year, excluding COVID-19 related and catastrophe losses | $ | 911 | $ | 934 | 66.0 | % | 64.6 | % | 1.4 | % | ||||||||||||||||||||||||||||||||||
Prior accident years development | (42 | ) | (45 | ) | (3.5 | %) | (3.9 | %) | 0.4 | % | Prior accident years development | — | (12) | — | % | (0.8 | %) | 0.8 | % | ||||||||||||||||||||||||||
COVID-19 related losses | COVID-19 related losses | — | — | — | % | — | % | — | % | ||||||||||||||||||||||||||||||||||||
Current year catastrophe losses | 9 | 12 | 0.8 | % | 1.1 | % | (0.3 | %) | Current year catastrophe losses | 52 | 22 | 3.8 | % | 1.6 | % | 2.2 | % | ||||||||||||||||||||||||||||
Aggregate losses and LAE and ratio | $ | 707 | $ | 692 | 58.5 | % | 59.0 | % | (0.5 | %) | Aggregate losses and LAE and ratio | $ | 963 | $ | 944 | 69.8 | % | 65.4 | % | 4.4 | % |
Property and Casualty Insurance Reserves | |||||||||||||||||
Three-Year Survival Ratio (Times Paid Losses) | |||||||||||||||||
Asbestos | Environmental | Total A&E | |||||||||||||||
AFG (9/30/2020) | 21.3 | 19.6 | 20.5 | ||||||||||||||
Industry (12/31/2019) | 7.9 | 8.5 | 8.1 |
Approximate impact of modeled loss | ||||||||||||||
Industry Model | on AFG’s Shareholders’ Equity | |||||||||||||
100-year event | 1% | |||||||||||||
250-year event | 2% | |||||||||||||
500-year event | 6% |
Three months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | Change in | |||||||||||||||||||||||||||
U/W Exp | % of NEP | U/W Exp | % of NEP | % of NEP | |||||||||||||||||||||||||
Property and transportation | $ | 124 | 21.8 | % | $ | 124 | 21.4 | % | 0.4 | % | |||||||||||||||||||
Specialty casualty | 155 | 27.8 | % | 219 | 33.4 | % | (5.6 | %) | |||||||||||||||||||||
Specialty financial | 80 | 51.7 | % | 88 | 54.0 | % | (2.3 | %) | |||||||||||||||||||||
Other specialty | 21 | 37.0 | % | 13 | 34.5 | % | 2.5 | % | |||||||||||||||||||||
Total specialty | 380 | 28.3 | % | 444 | 30.9 | % | (2.6 | %) | |||||||||||||||||||||
Neon exited lines | 20 | — | |||||||||||||||||||||||||||
Aggregate | $ | 400 | 29.0 | % | $ | 444 | 30.9 | % | (1.9 | %) |
Three months ended March 31, | ||||||||||||||||
2020 | 2019 | Change in | ||||||||||||||
U/W Exp | % of NEP | U/W Exp | % of NEP | % of NEP | ||||||||||||
Property and transportation | $ | 122 | 31.5 | % | $ | 97 | 26.8 | % | 4.7 | % | ||||||
Specialty casualty | 164 | 29.6 | % | 205 | 32.6 | % | (3.0 | %) | ||||||||
Specialty financial | 80 | 51.1 | % | 77 | 53.2 | % | (2.1 | %) | ||||||||
Other specialty | 17 | 43.8 | % | 15 | 39.2 | % | 4.6 | % | ||||||||
Total specialty | 383 | 33.7 | % | 394 | 33.6 | % | 0.1 | % | ||||||||
Neon exited lines | 32 | — | ||||||||||||||
Aggregate | $ | 415 | 34.3 | % | $ | 394 | 33.6 | % | 0.7 | % |
Three months ended September 30, | |||||||||||||||||||||||||||||||||||||
Three months ended March 31, | 2020 | 2019 | Change | % Change | |||||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | ||||||||||||||||||||||||||||||||||
Net investment income | $ | 99 | $ | 104 | $ | (5 | ) | (5 | %) | ||||||||||||||||||||||||||||
Net investment income: | Net investment income: | ||||||||||||||||||||||||||||||||||||
Net investment income excluding alternative investments | Net investment income excluding alternative investments | $ | 83 | $ | 99 | $ | (16) | (16 | %) | ||||||||||||||||||||||||||||
Alternative investments | Alternative investments | 28 | 25 | 3 | 12 | % | |||||||||||||||||||||||||||||||
Total net investment income | Total net investment income | $ | 111 | $ | 124 | $ | (13) | (10 | %) | ||||||||||||||||||||||||||||
Average invested assets (at amortized cost) | $ | 11,457 | $ | 10,997 | $ | 460 | 4 | % | Average invested assets (at amortized cost) | $ | 11,764 | $ | 11,387 | $ | 377 | 3 | % | ||||||||||||||||||||
Yield (net investment income as a % of average invested assets) | 3.46 | % | 3.78 | % | (0.32 | %) | Yield (net investment income as a % of average invested assets) | 3.77 | % | 4.36 | % | (0.59 | %) | ||||||||||||||||||||||||
Tax equivalent yield (*) | 3.58 | % | 3.96 | % | (0.38 | %) | Tax equivalent yield (*) | 3.92 | % | 4.51 | % | (0.59 | %) |
Three months ended September 30, | ||||||||||||||||||
2020 | 2019 | |||||||||||||||||
Three months ended March 31, | ||||||||||||||||||
2020 | 2019 | |||||||||||||||||
Other income | $ | 5 | $ | 3 | Other income | $ | — | $ | 5 | |||||||||
Other expenses | Other expenses | |||||||||||||||||
Amortization of intangibles | 3 | 3 | Amortization of intangibles | 3 | 3 | |||||||||||||
Other | 8 | 9 | Other | 6 | 8 | |||||||||||||
Total other expenses | 11 | 12 | Total other expenses | 9 | 11 | |||||||||||||
Other income and expenses, net | $ | (6 | ) | $ | (9 | ) | Other income and expenses, net | $ | (9) | $ | (6) |
Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | ||||||||
Revenues: | ||||||||||
Net investment income | $ | 422 | $ | 435 | (3 | %) | ||||
Other income: | ||||||||||
Guaranteed withdrawal benefit fees | 17 | 16 | 6 | % | ||||||
Policy charges and other miscellaneous income (a) | 18 | 12 | 50 | % | ||||||
Total revenues | 457 | 463 | (1 | %) | ||||||
Costs and Expenses: | ||||||||||
Annuity benefits (a)(b) | 287 | 312 | (8 | %) | ||||||
Acquisition expenses (a) | 71 | 26 | 173 | % | ||||||
Other expenses | 32 | 35 | (9 | %) | ||||||
Total costs and expenses | 390 | 373 | 5 | % | ||||||
Core earnings before income taxes | 67 | 90 | (26 | %) | ||||||
Pretax non-core earnings (losses) (a) | (38 | ) | — | — | % | |||||
GAAP earnings before income taxes | $ | 29 | $ | 90 | (68 | %) |
Three months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Revenues: | |||||||||||||||||
Net investment income | $ | 464 | $ | 448 | 4 | % | |||||||||||
Other income: | |||||||||||||||||
Guaranteed withdrawal benefit fees | 18 | 17 | 6 | % | |||||||||||||
Policy charges and other miscellaneous income (a) | 17 | 14 | 21 | % | |||||||||||||
Total revenues | 499 | 479 | 4 | % | |||||||||||||
Costs and Expenses: | |||||||||||||||||
Annuity benefits (a)(b) | 282 | 280 | 1 | % | |||||||||||||
Acquisition expenses (a) | 64 | 64 | — | % | |||||||||||||
Other expenses | 32 | 35 | (9 | %) | |||||||||||||
Total costs and expenses | 378 | 379 | — | % | |||||||||||||
Core earnings before income taxes | 121 | 100 | 21 | % | |||||||||||||
Pretax non-core earnings (losses) (a) | (43) | (27) | 59 | % | |||||||||||||
GAAP earnings (loss) before income taxes | $ | 78 | $ | 73 | 7 | % |
Three months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Core earnings before income taxes — before the impact of unlocking, derivatives related to FIAs and other impacts of stock market performance and interest rates on FIAs | $ | 121 | $ | 100 | 21 | % | |||||||||||
Unlocking | (46) | (1) | 4,500 | % | |||||||||||||
Impact of derivatives related to FIAs and other impacts of changes in the stock market and interest rates on FIAs over or under option costs: | |||||||||||||||||
Change in fair value of derivatives related to FIAs | (40) | (81) | (51 | %) | |||||||||||||
Accretion of guaranteed minimum FIA benefits | (107) | (104) | 3 | % | |||||||||||||
Other annuity benefits | (9) | (12) | (25 | %) | |||||||||||||
Less cost of equity options | 148 | 149 | (1 | %) | |||||||||||||
Related impact on the amortization of deferred policy acquisition costs | 11 | 22 | (50 | %) | |||||||||||||
GAAP earnings before income taxes | $ | 78 | $ | 73 | 7 | % |
Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | ||||||||
Earnings before income taxes — before the impact of derivatives related to FIAs and other impacts of stock market performance and interest rates on FIAs | $ | 67 | $ | 101 | (34 | %) | ||||
Impact of derivatives related to FIAs and other impacts of changes in the stock market and interest rates on FIAs over or under option costs: | ||||||||||
Change in fair value of derivatives related to FIAs | 13 | (95 | ) | (114 | %) | |||||
Accretion of guaranteed minimum FIA benefits | (105 | ) | (99 | ) | 6 | % | ||||
Other annuity benefits | (55 | ) | 8 | (788 | %) | |||||
Less cost of equity options | 150 | 141 | 6 | % | ||||||
Related impact on the amortization of deferred policy acquisition costs | (41 | ) | 34 | (221 | %) | |||||
Earnings before income taxes | $ | 29 | $ | 90 | (68 | %) |
Three months ended September 30, | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Total | |||||||||||||||||||||||||||||||||||||||
Core | Non-core | Total | Core | Non-core | Total | % Change | |||||||||||||||||||||||||||||||||||
Interest credited — fixed | $ | 101 | $ | — | $ | 101 | $ | 101 | $ | — | $ | 101 | — | % | |||||||||||||||||||||||||||
Accretion of guaranteed minimum FIA benefits | — | 107 | 107 | — | 104 | 104 | 3 | % | |||||||||||||||||||||||||||||||||
Interest credited — fixed component of variable annuities | 1 | — | 1 | 1 | — | 1 | — | % | |||||||||||||||||||||||||||||||||
Cost of equity options | 148 | (148) | — | 149 | (149) | — | — | % | |||||||||||||||||||||||||||||||||
Other annuity benefits: | |||||||||||||||||||||||||||||||||||||||||
Amortization of sales inducements | 2 | — | 2 | 3 | — | 3 | (33 | %) | |||||||||||||||||||||||||||||||||
Change in guaranteed withdrawal benefit reserve: | |||||||||||||||||||||||||||||||||||||||||
Impact of change in the stock market and interest rates | — | (9) | (9) | — | — | — | — | % | |||||||||||||||||||||||||||||||||
Accretion of benefits and other | 26 | — | 26 | 21 | — | 21 | 24 | % | |||||||||||||||||||||||||||||||||
Change in expected death and annuitization reserves and other | 4 | — | 4 | 5 | — | 5 | (20 | %) | |||||||||||||||||||||||||||||||||
Change in other benefit reserves — impact of changes in interest rates and the stock market | — | 18 | 18 | — | 12 | 12 | 50 | % | |||||||||||||||||||||||||||||||||
Unlocking | — | (77) | (77) | — | (74) | (74) | 4 | % | |||||||||||||||||||||||||||||||||
Derivatives related to fixed-indexed annuities: | |||||||||||||||||||||||||||||||||||||||||
Embedded derivative mark-to-market | — | 245 | 245 | — | 111 | 111 | 121 | % | |||||||||||||||||||||||||||||||||
Equity option mark-to-market | — | (205) | (205) | — | (30) | (30) | 583 | % | |||||||||||||||||||||||||||||||||
Impact of derivatives related to FIAs | — | 40 | 40 | — | 81 | 81 | (51 | %) | |||||||||||||||||||||||||||||||||
Total annuity benefits | $ | 282 | $ | (69) | $ | 213 | $ | 280 | $ | (26) | $ | 254 | (16 | %) |
Three months ended March 31, | |||||||||||||||||||||||||||
2020 | 2019 | Total | |||||||||||||||||||||||||
Core | Non-core | Total | Core | Non-core | Total | % Change | |||||||||||||||||||||
Interest credited — fixed | $ | 103 | $ | — | $ | 103 | $ | 95 | $ | — | $ | 95 | 8 | % | |||||||||||||
Accretion of guaranteed minimum FIA benefits | — | 105 | 105 | 99 | — | 99 | 6 | % | |||||||||||||||||||
Interest credited — fixed component of variable annuities | 1 | — | 1 | 1 | — | 1 | — | % | |||||||||||||||||||
Cost of equity options | 150 | (150 | ) | — | — | — | — | — | % | ||||||||||||||||||
Other annuity benefits: | |||||||||||||||||||||||||||
Amortization of sales inducements | 2 | 1 | 3 | 4 | — | 4 | (25 | %) | |||||||||||||||||||
Change in guaranteed withdrawal benefit reserve: | |||||||||||||||||||||||||||
Impact of change in the stock market and interest rates | — | 44 | 44 | (12 | ) | — | (12 | ) | (467 | %) | |||||||||||||||||
Accretion of benefits and other | 25 | — | 25 | 19 | — | 19 | 32 | % | |||||||||||||||||||
Change in expected death and annuitization reserves and other | 6 | — | 6 | 7 | — | 7 | (14 | %) | |||||||||||||||||||
Change in other benefit reserves — impact of changes in interest rates and the stock market | — | 10 | 10 | 4 | — | 4 | 150 | % | |||||||||||||||||||
Derivatives related to fixed-indexed annuities: | |||||||||||||||||||||||||||
Embedded derivative mark-to-market | — | (647 | ) | (647 | ) | 462 | — | 462 | (240 | %) | |||||||||||||||||
Equity option mark-to-market | — | 634 | 634 | (367 | ) | — | (367 | ) | (273 | %) | |||||||||||||||||
Impact of derivatives related to FIAs | — | (13 | ) | (13 | ) | 95 | — | 95 | (114 | %) | |||||||||||||||||
Total annuity benefits | $ | 287 | $ | (3 | ) | $ | 284 | $ | 312 | $ | — | $ | 312 | (9 | %) |
Three months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Interest credited — fixed | $ | 101 | $ | 101 | |||||||
Include cost of equity options | 148 | 149 | |||||||||
Cost of funds | 249 | 250 | |||||||||
Interest credited — fixed component of variable annuities | 1 | 1 | |||||||||
Other annuity benefits, excluding the impact of interest rates and the stock market on FIAs | 32 | 29 | |||||||||
282 | 280 | ||||||||||
Unlocking, changes in fair value of derivatives related to FIAs and other impacts of the stock market and interest rates over or under option costs: | |||||||||||
Unlocking | (77) | (74) | |||||||||
Impact of derivatives related to FIAs | 40 | 81 | |||||||||
Accretion of guaranteed minimum FIA benefits | 107 | 104 | |||||||||
Other annuity benefits — impact of the stock market and interest rates on FIAs | 9 | 12 | |||||||||
Less cost of equity options (included in cost of funds) | (148) | (149) | |||||||||
Total annuity benefits expense | $ | 213 | $ | 254 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Interest credited — fixed | $ | 103 | $ | 95 | |||
Include cost of equity options | 150 | 141 | |||||
Cost of funds | 253 | 236 | |||||
Interest credited — fixed component of variable annuities | 1 | 1 | |||||
Other annuity benefits, excluding the impact of interest rates and the stock market on FIAs | 33 | 30 | |||||
287 | 267 | ||||||
Changes in fair value of derivatives related to FIAs and other impacts of the stock market and interest rates over or under option costs: | |||||||
Impact of derivatives related to FIAs | (13 | ) | 95 | ||||
Accretion of guaranteed minimum FIA benefits | 105 | 99 | |||||
Other annuity benefits — impact of the stock market and interest rates on FIAs | 55 | (8 | ) | ||||
Less cost of equity options (included in cost of funds) | (150 | ) | (141 | ) | |||
Total annuity benefits expense | $ | 284 | $ | 312 |
Three months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Average fixed annuity investments (at amortized cost) | $ | 40,859 | $ | 38,650 | 6 | % | |||||||||||
Average fixed annuity benefits accumulated | 41,158 | 38,946 | 6 | % | |||||||||||||
As % of fixed annuity benefits accumulated (except as noted): | |||||||||||||||||
Net investment income (as % of fixed annuity investments) | 4.52 | % | 4.62 | % | |||||||||||||
Cost of funds | (2.42 | %) | (2.57 | %) | |||||||||||||
Other annuity benefit expenses, net of guaranteed withdrawal benefit fees (*) | (0.14 | %) | (0.12 | %) | |||||||||||||
Net interest spread | 1.96 | % | 1.93 | % | |||||||||||||
Policy charges and other miscellaneous income (*) | 0.14 | % | 0.12 | % | |||||||||||||
Acquisition expenses (*) | (0.61 | %) | (0.65 | %) | |||||||||||||
Other expenses | (0.30 | %) | (0.34 | %) | |||||||||||||
Net spread earned on fixed annuities excluding the impact of unlocking, changes in the fair value of derivatives related to FIAs and other impacts of changes in the stock market and interest rates on FIAs | 1.19 | % | 1.06 | % | |||||||||||||
Changes in fair value of derivatives related to FIAs and other impacts of the stock market and interest rates under (over) option costs | 0.04 | % | (0.27 | %) | |||||||||||||
Unlocking | (0.45 | %) | (0.01 | %) | |||||||||||||
Net spread earned on fixed annuities | 0.78 | % | 0.78 | % |
Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | ||||||||
Average fixed annuity investments (at amortized cost) | $ | 40,073 | $ | 36,991 | 8 | % | ||||
Average fixed annuity benefits accumulated | 40,139 | 37,078 | 8 | % | ||||||
As % of fixed annuity benefits accumulated (except as noted): | ||||||||||
Net investment income (as % of fixed annuity investments) | 4.19 | % | 4.68 | % | ||||||
Cost of funds | (2.52 | %) | (2.54 | %) | ||||||
Other annuity benefit expenses, net of guaranteed withdrawal benefit fees (*) | (0.14 | %) | (0.14 | %) | ||||||
Net interest spread | 1.53 | % | 2.00 | % | ||||||
Policy charges and other miscellaneous income (*) | 0.15 | % | 0.09 | % | ||||||
Acquisition expenses (*) | (0.67 | %) | (0.65 | %) | ||||||
Other expenses | (0.32 | %) | (0.36 | %) | ||||||
Net spread earned on fixed annuities excluding the impact of changes in the fair value of derivatives related to FIAs and other impacts of changes in the stock market and interest rates on FIAs | 0.69 | % | 1.08 | % | ||||||
Changes in fair value of derivatives related to FIAs and other impacts of the stock market and interest rates under (over) option costs: | ||||||||||
Included in core | — | % | (0.12 | %) | ||||||
Annuity non-core earnings (losses) | (0.38 | %) | — | % | ||||||
Net spread earned on fixed annuities | 0.31 | % | 0.96 | % |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Cost of equity options (FIAs) | $ | 150 | $ | 141 | |||
Interest credited: | |||||||
Traditional fixed annuities | 63 | 59 | |||||
Fixed component of fixed-indexed annuities | 25 | 22 | |||||
Immediate annuities | 6 | 6 | |||||
Pension risk transfer products | 4 | 1 | |||||
Federal Home Loan Bank advances | 5 | 7 | |||||
Total cost of funds | $ | 253 | $ | 236 |
Three months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cost of equity options (FIAs) | $ | 148 | $ | 149 | |||||||
Interest credited: | |||||||||||
Traditional fixed annuities | 64 | 62 | |||||||||
Fixed component of fixed-indexed annuities | 26 | 24 | |||||||||
Immediate annuities | 5 | 6 | |||||||||
Pension risk transfer products | 5 | 2 | |||||||||
Federal Home Loan Bank advances | 1 | 7 | |||||||||
Total cost of funds | $ | 249 | $ | 250 |
Three months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Other annuity benefits, excluding the impact of the stock market and interest rates on FIAs: | |||||||||||
Amortization of sales inducements | $ | 2 | $ | 3 | |||||||
Change in guaranteed withdrawal benefit reserve | 26 | 21 | |||||||||
Change in other benefit reserves | 4 | 5 | |||||||||
Other annuity benefits | 32 | 29 | |||||||||
Offset guaranteed withdrawal benefit fees | (18) | (17) | |||||||||
Other annuity benefits excluding the impact of the stock market and interest rates, net | 14 | 12 | |||||||||
Other annuity benefits — impact of the stock market and interest rates | 9 | 12 | |||||||||
Other annuity benefits, net | $ | 23 | $ | 24 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Other annuity benefits, excluding the impact of the stock market and interest rates on FIAs: | |||||||
Amortization of sales inducements | $ | 2 | $ | 4 | |||
Change in guaranteed withdrawal benefit reserve | 25 | 19 | |||||
Change in other benefit reserves | 6 | 7 | |||||
Other annuity benefits | 33 | 30 | |||||
Offset guaranteed withdrawal benefit fees | (17 | ) | (16 | ) | |||
Other annuity benefits excluding the impact of the stock market and interest rates, net | 16 | 14 | |||||
Other annuity benefits — impact of the stock market and interest rates | (55 | ) | 8 | ||||
Other annuity benefits, net | $ | (39 | ) | $ | 22 |
Three months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Annuity acquisition expenses before the impact of unlocking, changes in the fair value of derivatives related to FIAs and other impacts of the stock market and interest rates | $ | 64 | $ | 64 | |||||||
Unlocking | 118 | 76 | |||||||||
Impact of changes in the fair value of derivatives and other impacts of the stock market and interest rates | (11) | (22) | |||||||||
Annuity acquisition expenses | $ | 171 | $ | 118 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Annuity acquisition expenses before the impact of changes in the fair value of derivatives related to FIAs and other impacts of the stock market and interest rates | $ | 71 | $ | 60 | |||
Impact of changes in the fair value of derivatives and other impacts of the stock market and interest rates | 41 | (34 | ) | ||||
Annuity acquisition expenses | $ | 112 | $ | 26 |
Three months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Before unlocking, the impact of changes in the fair value of derivatives related to FIAs and other impacts of the stock market and interest rates | 0.61 | % | 0.65 | % | |||||||
Unlocking | 1.15 | % | 0.78 | % | |||||||
Impact of changes in fair value of derivatives and other impacts of the stock market and interest rates | (0.11 | %) | (0.23 | %) | |||||||
Annuity acquisition expenses as a % of fixed annuity benefits accumulated | 1.65 | % | 1.20 | % |
Three months ended March 31, | |||||
2020 | 2019 | ||||
Before the impact of changes in the fair value of derivatives related to FIAs and other impacts of the stock market and interest rates | 0.67 | % | 0.65 | % | |
Impact of changes in fair value of derivatives and other impacts of the stock market and interest rates | 0.41 | % | (0.37 | %) | |
Annuity acquisition expenses as a % of fixed annuity benefits accumulated | 1.08 | % | 0.28 | % |
Three months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Change in the fair value of derivatives related to FIAs | $ | (40) | $ | (81) | (51 | %) | |||||||||||
Accretion of guaranteed minimum FIA benefits | (107) | (104) | 3 | % | |||||||||||||
Other annuity benefits | (9) | (12) | (25 | %) | |||||||||||||
Less cost of equity options | 148 | 149 | (1 | %) | |||||||||||||
Related impact on the amortization of DPAC | 11 | 22 | (50 | %) | |||||||||||||
Impact on annuity segment earnings before income taxes | $ | 3 | $ | (26) | (112 | %) |
Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | ||||||||
Change in the fair value of derivatives related to FIAs | $ | 13 | $ | (95 | ) | (114 | %) | |||
Accretion of guaranteed minimum FIA benefits | (105 | ) | (99 | ) | 6 | % | ||||
Other annuity benefits | (55 | ) | 8 | (788 | %) | |||||
Less cost of equity options | 150 | 141 | 6 | % | ||||||
Related impact on the amortization of DPAC | (41 | ) | 34 | (221 | %) | |||||
Impact on annuity segment earnings before income taxes | $ | (38 | ) | $ | (11 | ) | 245 | % |
Three months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Changes in the stock market, including volatility | $ | 19 | $ | 4 | 375 | % | |||||||||||
Changes in interest rates higher (lower) than expected | (17) | (30) | (43 | %) | |||||||||||||
Other | 1 | — | — | % | |||||||||||||
Impact on annuity segment earnings before income taxes | $ | 3 | $ | (26) | (112 | %) |
Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | ||||||||
Changes in the stock market, including volatility | $ | (64 | ) | $ | 33 | (294 | %) | |||
Changes in interest rates higher (lower) than expected | 29 | (45 | ) | (164 | %) | |||||
Other | (3 | ) | 1 | (400 | %) | |||||
Impact on annuity segment earnings before income taxes | $ | (38 | ) | $ | (11 | ) | 245 | % |
Three months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Beginning fixed annuity reserves | $ | 40,942 | $ | 38,680 | |||||||
Fixed annuity premiums (receipts) | 868 | 1,072 | |||||||||
Federal Home Loan Bank advances and repayments | — | — | |||||||||
Surrenders, benefits and other withdrawals | (844) | (808) | |||||||||
Interest and other annuity benefit expenses: | |||||||||||
Cost of funds | 249 | 250 | |||||||||
Embedded derivative mark-to-market | 245 | 111 | |||||||||
Change in other benefit reserves | (13) | (18) | |||||||||
Unlocking | (73) | (75) | |||||||||
Ending fixed annuity reserves | $ | 41,374 | $ | 39,212 | |||||||
Reconciliation to annuity benefits accumulated per balance sheet: | |||||||||||
Ending fixed annuity reserves (from above) | $ | 41,374 | $ | 39,212 | |||||||
Impact of unrealized investment related gains | 394 | 269 | |||||||||
Fixed component of variable annuities | 164 | 170 | |||||||||
Annuity benefits accumulated per balance sheet | $ | 41,932 | $ | 39,651 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Beginning fixed annuity reserves | $ | 40,018 | $ | 36,431 | |||
Fixed annuity premiums (receipts) | 1,205 | 1,390 | |||||
Federal Home Loan Bank advances | 200 | — | |||||
Surrenders, benefits and other withdrawals | (794 | ) | (761 | ) | |||
Interest and other annuity benefit expenses: | |||||||
Cost of funds | 253 | 236 | |||||
Embedded derivative mark-to-market | (647 | ) | 462 | ||||
Change in other benefit reserves | 25 | (34 | ) | ||||
Ending fixed annuity reserves | $ | 40,260 | $ | 37,724 | |||
Reconciliation to annuity benefits accumulated per balance sheet: | |||||||
Ending fixed annuity reserves (from above) | $ | 40,260 | $ | 37,724 | |||
Impact of unrealized investment related gains | 38 | 108 | |||||
Fixed component of variable annuities | 165 | 174 | |||||
Annuity benefits accumulated per balance sheet | $ | 40,463 | $ | 38,006 |
Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | ||||||||
Financial institutions single premium annuities — indexed | $ | 424 | $ | 424 | — | % | ||||
Financial institutions single premium annuities — fixed | 287 | 344 | (17 | %) | ||||||
Retail single premium annuities — indexed | 172 | 301 | (43 | %) | ||||||
Retail single premium annuities — fixed | 25 | 29 | (14 | %) | ||||||
Broker dealer single premium annuities — indexed | 138 | 227 | (39 | %) | ||||||
Broker dealer single premium annuities — fixed | 17 | 6 | 183 | % | ||||||
Pension risk transfer | 103 | 10 | 930 | % | ||||||
Education market — fixed and indexed annuities | 39 | 49 | (20 | %) | ||||||
Total fixed annuity premiums | 1,205 | 1,390 | (13 | %) | ||||||
Variable annuities | 5 | 5 | — | % | ||||||
Total annuity premiums | $ | 1,210 | $ | 1,395 | (13 | %) |
Three months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Financial institutions single premium annuities — indexed | $ | 332 | $ | 325 | 2 | % | |||||||||||
Financial institutions single premium annuities — fixed | 141 | 302 | (53 | %) | |||||||||||||
Retail single premium annuities — indexed | 134 | 198 | (32 | %) | |||||||||||||
Retail single premium annuities — fixed | 17 | 30 | (43 | %) | |||||||||||||
Broker dealer single premium annuities — indexed | 109 | 134 | (19 | %) | |||||||||||||
Broker dealer single premium annuities — fixed | 3 | 9 | (67 | %) | |||||||||||||
Pension risk transfer | 99 | 39 | 154 | % | |||||||||||||
Education market — fixed and indexed annuities | 33 | 35 | (6 | %) | |||||||||||||
Total fixed annuity premiums | 868 | 1,072 | (19 | %) | |||||||||||||
Variable annuities | 3 | 5 | (40 | %) | |||||||||||||
Total gross fixed annuity premiums | 871 | 1,077 | (19 | %) | |||||||||||||
Ceded premiums | (168) | — | — | % | |||||||||||||
Total net annuity premiums | $ | 703 | $ | 1,077 | (35 | %) |
Three months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Policy charges and other miscellaneous income: | |||||||||||
Unearned revenue | $ | (5) | $ | 1 | |||||||
Total revenues | (5) | 1 | |||||||||
Annuity benefits: | |||||||||||
Fixed-indexed annuities embedded derivative | (240) | (181) | |||||||||
Guaranteed withdrawal benefit reserve | 107 | 102 | |||||||||
Other reserves | 60 | 4 | |||||||||
Sales inducements asset | (4) | 1 | |||||||||
Total annuity benefits | (77) | (74) | |||||||||
Annuity and supplemental insurance acquisition expenses: | |||||||||||
Deferred policy acquisition costs | 118 | 76 | |||||||||
Total costs and expenses | 41 | 2 | |||||||||
Net charge | $ | (46) | $ | (1) |
Three months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Earnings on fixed annuity benefits accumulated | $ | 79 | $ | 76 | |||||||
Earnings impact of investments in excess of fixed annuity benefits accumulated (*) | (3) | (3) | |||||||||
Variable annuity earnings | 2 | — | |||||||||
Earnings before income taxes | $ | 78 | $ | 73 |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Earnings on fixed annuity benefits accumulated | $ | 31 | $ | 89 | |||
Earnings impact of investments in excess of fixed annuity benefits accumulated (*) | (1 | ) | (1 | ) | |||
Variable annuity earnings (loss) | (1 | ) | 2 | ||||
Earnings before income taxes | $ | 29 | $ | 90 |
Three months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Revenues: | |||||||||||||||||
Life, accident and health net earned premiums | $ | 5 | $ | 6 | (17 | %) | |||||||||||
Net investment income | 9 | 11 | (18 | %) | |||||||||||||
Other income — P&C fees | 17 | 17 | — | % | |||||||||||||
Reclassify annuity segment option gains | (10) | (4) | 150 | % | |||||||||||||
Other income | 6 | 6 | — | % | |||||||||||||
Total revenues | 27 | 36 | (25 | %) | |||||||||||||
Costs and Expenses: | |||||||||||||||||
Property and casualty insurance — commissions and other underwriting expenses | 6 | 6 | — | % | |||||||||||||
Annuity — annuity benefits | (10) | (4) | 150 | % | |||||||||||||
Life, accident and health benefits (a) | 11 | 9 | 22 | % | |||||||||||||
Life, accident and health acquisition expenses | 1 | 2 | (50 | %) | |||||||||||||
Other expense — expenses associated with P&C fees | 11 | 11 | — | % | |||||||||||||
Other expenses (b) | 36 | 34 | 6 | % | |||||||||||||
Costs and expenses, excluding interest charges on borrowed money | 55 | 58 | (5 | %) | |||||||||||||
Core loss before income taxes, excluding realized gains and losses and interest charges on borrowed money | (28) | (22) | 27 | % | |||||||||||||
Interest charges on borrowed money | 24 | 17 | 41 | % | |||||||||||||
Core loss before income taxes, excluding realized gains and losses | (52) | (39) | 33 | % | |||||||||||||
Pretax non-core special A&E charges | (21) | (11) | 91 | % | |||||||||||||
Pretax non-core long-term care loss recognition charge | (4) | — | — | % | |||||||||||||
GAAP loss before income taxes, excluding realized gains and losses | $ | (77) | $ | (50) | 54 | % |
Three months ended March 31, | ||||||||||
2020 | 2019 | % Change | ||||||||
Revenues: | ||||||||||
Life, accident and health net earned premiums | $ | 5 | $ | 6 | (17 | %) | ||||
Net investment income | (7 | ) | 14 | (150 | %) | |||||
Other income — P&C fees | 17 | 15 | 13 | % | ||||||
Reclassify annuity segment option gains | (8 | ) | (1 | ) | 700 | % | ||||
Other income | 7 | 8 | (13 | %) | ||||||
Total revenues | 14 | 42 | (67 | %) | ||||||
Costs and Expenses: | ||||||||||
Property and casualty insurance — commissions and other underwriting expenses | 5 | 5 | — | % | ||||||
Annuity — annuity benefits | (8 | ) | (1 | ) | 700 | % | ||||
Life, accident and health benefits | 10 | 9 | 11 | % | ||||||
Life, accident and health acquisition expenses | 1 | 2 | (50 | %) | ||||||
Other expense — expenses associated with P&C fees | 12 | 10 | 20 | % | ||||||
Other expenses | 14 | 44 | (68 | %) | ||||||
Costs and expenses, excluding interest charges on borrowed money | 34 | 69 | (51 | %) | ||||||
Loss before income taxes, excluding realized gains and losses and interest charges on borrowed money | (20 | ) | (27 | ) | (26 | %) | ||||
Interest charges on borrowed money | 17 | 16 | 6 | % | ||||||
Loss before income taxes, excluding realized gains and losses | $ | (37 | ) | $ | (43 | ) | (14 | %) |
March 31, 2020 | March 31, 2019 | ||||||
Direct obligations of AFG: | |||||||
4.50% Senior Notes due June 2047 | $ | 590 | $ | 590 | |||
3.50% Senior Notes due August 2026 | 425 | 425 | |||||
5.125% Subordinated Debentures due December 2059 | 200 | — | |||||
6% Subordinated Debentures due November 2055 | 150 | 150 | |||||
5.875% Subordinated Debentures due March 2059 | 125 | 125 | |||||
6-1/4% Subordinated Debentures due September 2054 | — | 150 | |||||
Other | 3 | 3 | |||||
Total principal amount of Holding Company Debt | $ | 1,493 | $ | 1,443 | |||
Weighted Average Interest Rate | 4.6 | % | 4.7 | % |
September 30, 2020 | September 30, 2019 | ||||||||||
Direct obligations of AFG: | |||||||||||
4.50% Senior Notes due June 2047 | $ | 590 | $ | 590 | |||||||
3.50% Senior Notes due August 2026 | 425 | 425 | |||||||||
5.25% Senior Notes due April 2030 | 300 | — | |||||||||
5.125% Subordinated Debentures due December 2059 | 200 | — | |||||||||
4.50% Subordinated Debentures due September 2060 | 200 | — | |||||||||
6% Subordinated Debentures due November 2055 | 150 | 150 | |||||||||
5.625% Subordinated Debentures due June 2060 | 150 | — | |||||||||
5.875% Subordinated Debentures due March 2059 | 125 | 125 | |||||||||
6-1/4% Subordinated Debentures due September 2054 | — | 150 | |||||||||
Other | 3 | 3 | |||||||||
Total principal amount of Holding Company Debt | $ | 2,143 | $ | 1,443 | |||||||
Weighted Average Interest Rate | 4.7 | % | 4.7 | % |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Realized gains (losses) before impairments: | |||||||
Disposals | $ | 29 | $ | (3 | ) | ||
Change in the fair value of equity securities | (535 | ) | 182 | ||||
Change in the fair value of derivatives | 4 | 6 | |||||
Adjustments to annuity deferred policy acquisition costs and related items | (3 | ) | 1 | ||||
(505 | ) | 186 | |||||
Impairment charges: | |||||||
Securities | (61 | ) | (3 | ) | |||
Adjustments to annuity deferred policy acquisition costs and related items | 15 | 1 | |||||
(46 | ) | (2 | ) | ||||
Realized gains (losses) on securities | $ | (551 | ) | $ | 184 |
Three months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Realized gains (losses) before impairments: | |||||||||||
Disposals | $ | 19 | $ | 6 | |||||||
Change in the fair value of equity securities | 30 | (15) | |||||||||
Change in the fair value of derivatives | (5) | 2 | |||||||||
Adjustments to annuity deferred policy acquisition costs and related items | (1) | (2) | |||||||||
43 | (9) | ||||||||||
Change in allowance for impairments: | |||||||||||
Securities | 3 | (14) | |||||||||
Adjustments to annuity deferred policy acquisition costs and related items | (1) | 5 | |||||||||
2 | (9) | ||||||||||
Realized gains (losses) on securities | $ | 45 | $ | (18) |
Other | |||||||||||||||||||||||||||||||||||||||||||||||
P&C | Annuity | Consol. MIEs | Holding Co., other and unallocated | Total | Non-core reclass | Neon exited lines (c) | GAAP Total | ||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 3,600 | $ | — | $ | — | $ | — | $ | 3,600 | $ | — | $ | 174 | $ | 3,774 | |||||||||||||||||||||||||||||||
Net investment income | 282 | 1,270 | 21 | 16 | 1,589 | — | (5) | 1,584 | |||||||||||||||||||||||||||||||||||||||
Realized gains (losses) on: | |||||||||||||||||||||||||||||||||||||||||||||||
Securities | — | — | — | — | — | (302) | — | (302) | |||||||||||||||||||||||||||||||||||||||
Subsidiaries | — | — | — | — | — | — | (30) | (30) | |||||||||||||||||||||||||||||||||||||||
Income (loss) of MIEs: | |||||||||||||||||||||||||||||||||||||||||||||||
Investment income | — | — | 154 | — | 154 | — | — | 154 | |||||||||||||||||||||||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | — | (47) | — | (47) | — | — | (47) | |||||||||||||||||||||||||||||||||||||||
Other income | 8 | 100 | (11) | 61 | 158 | (5) | — | 153 | |||||||||||||||||||||||||||||||||||||||
Total revenues | 3,890 | 1,370 | 117 | 77 | 5,454 | (307) | 139 | 5,286 | |||||||||||||||||||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Property and casualty insurance: | |||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss adjustment expenses | 2,228 | — | — | — | 2,228 | 47 | 166 | 2,441 | |||||||||||||||||||||||||||||||||||||||
Commissions and other underwriting expenses | 1,129 | — | — | 16 | 1,145 | — | 90 | 1,235 | |||||||||||||||||||||||||||||||||||||||
Annuity benefits | — | 843 | — | (23) | 820 | 85 | — | 905 | |||||||||||||||||||||||||||||||||||||||
Annuity and supplemental insurance acquisition expenses | — | 197 | — | 3 | 200 | 50 | — | 250 | |||||||||||||||||||||||||||||||||||||||
Interest charges on borrowed money | — | — | — | 64 | 64 | — | — | 64 | |||||||||||||||||||||||||||||||||||||||
Expenses of MIEs | — | — | 117 | — | 117 | — | — | 117 | |||||||||||||||||||||||||||||||||||||||
Other expenses | 31 | 100 | — | 149 | 280 | 25 | 5 | 310 | |||||||||||||||||||||||||||||||||||||||
Total costs and expenses | 3,388 | 1,140 | 117 | 209 | 4,854 | 207 | 261 | 5,322 | |||||||||||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | 502 | 230 | — | (132) | 600 | (514) | (122) | (36) | |||||||||||||||||||||||||||||||||||||||
Provision (credit) for income taxes | 106 | 44 | — | (33) | 117 | (107) | (73) | (63) | |||||||||||||||||||||||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 396 | 186 | — | (99) | 483 | (407) | (49) | 27 | |||||||||||||||||||||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | — | — | — | — | — | — | (13) | (13) | |||||||||||||||||||||||||||||||||||||||
Core Net Operating Earnings (Loss) | 396 | 186 | — | (99) | 483 | ||||||||||||||||||||||||||||||||||||||||||
Non-core earnings (loss) attributable to shareholders (a): | |||||||||||||||||||||||||||||||||||||||||||||||
Realized gains (losses) on securities, net of tax | — | — | — | (239) | (239) | 239 | — | — | |||||||||||||||||||||||||||||||||||||||
Annuity non-core earnings (losses), net of tax (b) | — | (111) | — | — | (111) | 111 | — | — | |||||||||||||||||||||||||||||||||||||||
Neon exited lines (c) | (36) | — | — | — | (36) | — | 36 | — | |||||||||||||||||||||||||||||||||||||||
Special A&E charges, net of tax | (37) | — | — | (17) | (54) | 54 | — | — | |||||||||||||||||||||||||||||||||||||||
Other, net of tax | — | — | — | (3) | (3) | 3 | — | — | |||||||||||||||||||||||||||||||||||||||
Net Earnings (Loss) Attributable to Shareholders | $ | 323 | $ | 75 | $ | — | $ | (358) | $ | 40 | $ | — | $ | — | $ | 40 |
Other | |||||||||||||||||||||||||||||||||||||||||
P&C | Annuity | Consol. MIEs | Holding Co., other and unallocated | Total | Non-core reclass | GAAP Total | |||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||
Property and casualty insurance net earned premiums | $ | 3,815 | $ | — | $ | — | $ | — | $ | 3,815 | $ | — | $ | 3,815 | |||||||||||||||||||||||||||
Net investment income | 352 | 1,334 | (11) | 35 | 1,710 | — | 1,710 | ||||||||||||||||||||||||||||||||||
Realized gains (losses) on securities | — | — | — | — | — | 222 | 222 | ||||||||||||||||||||||||||||||||||
Income (loss) of MIEs: | |||||||||||||||||||||||||||||||||||||||||
Investment income | — | — | 206 | — | 206 | — | 206 | ||||||||||||||||||||||||||||||||||
Gain (loss) on change in fair value of assets/liabilities | — | — | (16) | — | (16) | — | (16) | ||||||||||||||||||||||||||||||||||
Other income | 10 | 89 | (11) | 81 | 169 | 1 | 170 | ||||||||||||||||||||||||||||||||||
Total revenues | 4,177 | 1,423 | 168 | 116 | 5,884 | 223 | 6,107 | ||||||||||||||||||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||||||||||||||
Property and casualty insurance: | |||||||||||||||||||||||||||||||||||||||||
Losses and loss adjustment expenses | 2,341 | — | — | — | 2,341 | 18 | 2,359 | ||||||||||||||||||||||||||||||||||
Commissions and other underwriting expenses | 1,256 | — | — | 19 | 1,275 | — | 1,275 | ||||||||||||||||||||||||||||||||||
Annuity benefits | — | 867 | — | (8) | 859 | 41 | 900 | ||||||||||||||||||||||||||||||||||
Annuity and supplemental insurance acquisition expenses | — | 157 | — | 4 | 161 | 20 | 181 | ||||||||||||||||||||||||||||||||||
Interest charges on borrowed money | — | — | — | 50 | 50 | — | 50 | ||||||||||||||||||||||||||||||||||
Expenses of MIEs | — | — | 168 | — | 168 | — | 168 | ||||||||||||||||||||||||||||||||||
Other expenses | 34 | 105 | — | 175 | 314 | 11 | 325 | ||||||||||||||||||||||||||||||||||
Total costs and expenses | 3,631 | 1,129 | 168 | 240 | 5,168 | 90 | 5,258 | ||||||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | 546 | 294 | — | (124) | 716 | 133 | 849 | ||||||||||||||||||||||||||||||||||
Provision (credit) for income taxes | 111 | 59 | — | (27) | 143 | 28 | 171 | ||||||||||||||||||||||||||||||||||
Net earnings (loss), including noncontrolling interests | 435 | 235 | — | (97) | 573 | 105 | 678 | ||||||||||||||||||||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (8) | — | — | — | (8) | — | (8) | ||||||||||||||||||||||||||||||||||
Core Net Operating Earnings (Loss) | 443 | 235 | — | (97) | 581 | ||||||||||||||||||||||||||||||||||||
Non-core earnings (loss) attributable to shareholders (a): | |||||||||||||||||||||||||||||||||||||||||
Realized gains (losses) on securities, net of tax | — | — | — | 176 | 176 | (176) | — | ||||||||||||||||||||||||||||||||||
Annuity non-core earnings (losses), net of tax (b) | — | (48) | — | — | (48) | 48 | — | ||||||||||||||||||||||||||||||||||
Special A&E charges, net of tax | (14) | — | — | (9) | (23) | 23 | — | ||||||||||||||||||||||||||||||||||
Net Earnings (Loss) Attributable to Shareholders | $ | 429 | $ | 187 | $ | — | $ | 70 | $ | 686 | $ | — | $ | 686 |
Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Gross written premiums | $ | 5,288 | $ | 5,550 | (5 | %) | |||||||||||
Reinsurance premiums ceded | (1,512) | (1,521) | (1 | %) | |||||||||||||
Net written premiums | 3,776 | 4,029 | (6 | %) | |||||||||||||
Change in unearned premiums | (176) | (214) | (18 | %) | |||||||||||||
Net earned premiums | 3,600 | 3,815 | (6 | %) | |||||||||||||
Loss and loss adjustment expenses (a) | 2,228 | 2,341 | (5 | %) | |||||||||||||
Commissions and other underwriting expenses | 1,129 | 1,256 | (10 | %) | |||||||||||||
Core underwriting gain | 243 | 218 | 11 | % | |||||||||||||
Net investment income | 282 | 352 | (20 | %) | |||||||||||||
Other income and expenses, net | (23) | (24) | (4 | %) | |||||||||||||
Core earnings before income taxes | 502 | 546 | (8 | %) | |||||||||||||
Pretax non-core special A&E charges | (47) | (18) | 161 | % | |||||||||||||
Pretax non-core Neon exited lines (b) | (122) | — | — | % | |||||||||||||
GAAP earnings before income taxes and noncontrolling interests | $ | 333 | $ | 528 | (37 | %) | |||||||||||
(a) Excludes pretax non-core special A&E charges of $47 million and $18 million in the third quarter of 2020 and 2019, respectively. (b) In December 2019, AFG initiated actions to exit the Lloyd’s of London insurance market, which included placing its Lloyd’s subsidiaries including its Lloyd’s Managing Agency, Neon Underwriting Ltd. (“Neon”), into run-off. As discussed under “Results of Operations — General,” following the December 2019 decision to exit the Lloyd’s of London insurance market, the results from the Neon exited lines are being treated as non-core earnings (losses) prospectively beginning in 2020. Each line item in the table above has been adjusted to remove the impact from the Neon run-off operations in 2020. The following table details the impact of the Neon exited lines to each component of earnings (loss) before income taxes in the property and casualty insurance operations for the nine months ended September 30, 2020 (in millions): | |||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||
Excluding Neon exited lines | Neon exited lines | Total | |||||||||||||||
Gross written premiums | $ | 5,288 | $ | 78 | $ | 5,366 | |||||||||||
Reinsurance premiums ceded | (1,512) | (70) | (1,582) | ||||||||||||||
Net written premiums | 3,776 | 8 | 3,784 | ||||||||||||||
Change in unearned premiums | (176) | 166 | (10) | ||||||||||||||
Net earned premiums | 3,600 | 174 | 3,774 | ||||||||||||||
Loss and loss adjustment expenses | 2,228 | 166 | 2,394 | ||||||||||||||
Commissions and other underwriting expenses | 1,129 | 90 | 1,219 | ||||||||||||||
Underwriting gain (loss) | 243 | (82) | 161 | ||||||||||||||
Net investment income | 282 | (5) | 277 | ||||||||||||||
Loss on sale of subsidiaries | — | (30) | (30) | ||||||||||||||
Other income and expenses, net | (23) | (5) | (28) | ||||||||||||||
Earnings (loss) before income taxes and noncontrolling interests | 502 | (122) | 380 | ||||||||||||||
Pretax non-core special A&E charges | (47) | — | (47) | ||||||||||||||
GAAP earnings (loss) before income taxes and noncontrolling interests | $ | 455 | $ | (122) | $ | 333 | |||||||||||
Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | Change | |||||||||||||||
Combined Ratios: | |||||||||||||||||
Specialty lines | |||||||||||||||||
Loss and LAE ratio | 61.8 | % | 60.9 | % | 0.9 | % | |||||||||||
Underwriting expense ratio | 31.4 | % | 32.9 | % | (1.5 | %) | |||||||||||
Combined ratio | 93.2 | % | 93.8 | % | (0.6 | %) | |||||||||||
Aggregate — including exited lines | |||||||||||||||||
Loss and LAE ratio | 64.7 | % | 61.8 | % | 2.9 | % | |||||||||||
Underwriting expense ratio | 32.3 | % | 32.9 | % | (0.6 | %) | |||||||||||
Combined ratio | 97.0 | % | 94.7 | % | 2.3 | % |
Nine months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
GWP | % | GWP | % | % Change | |||||||||||||||||||||||||
Property and transportation | $ | 2,166 | 40 | % | $ | 2,131 | 38 | % | 2 | % | |||||||||||||||||||
Specialty casualty | 2,579 | 48 | % | 2,839 | 51 | % | (9 | %) | |||||||||||||||||||||
Specialty financial | 543 | 11 | % | 580 | 11 | % | (6 | %) | |||||||||||||||||||||
Total specialty | 5,288 | 99 | % | 5,550 | 100 | % | (5 | %) | |||||||||||||||||||||
Neon exited lines | 78 | 1 | % | — | — | % | — | % | |||||||||||||||||||||
Aggregate | $ | 5,366 | 100 | % | $ | 5,550 | 100 | % | (3 | %) |
Nine months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | Change in | |||||||||||||||||||||||||||
Ceded | % of GWP | Ceded | % of GWP | % of GWP | |||||||||||||||||||||||||
Property and transportation | $ | (719) | 33 | % | $ | (704) | 33 | % | — | % | |||||||||||||||||||
Specialty casualty | (840) | 33 | % | (807) | 28 | % | 5 | % | |||||||||||||||||||||
Specialty financial | (102) | 19 | % | (119) | 21 | % | (2 | %) | |||||||||||||||||||||
Other specialty | 149 | 109 | |||||||||||||||||||||||||||
Total specialty | (1,512) | 29 | % | (1,521) | 27 | % | 2 | % | |||||||||||||||||||||
Neon exited lines | (70) | 90 | % | — | — | % | 90 | % | |||||||||||||||||||||
Aggregate | $ | (1,582) | 29 | % | $ | (1,521) | 27 | % | 2 | % |
Nine months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
NWP | % | NWP | % | % Change | |||||||||||||||||||||||||
Property and transportation | $ | 1,447 | 38 | % | $ | 1,427 | 35 | % | 1 | % | |||||||||||||||||||
Specialty casualty | 1,739 | 46 | % | 2,032 | 50 | % | (14 | %) | |||||||||||||||||||||
Specialty financial | 441 | 12 | % | 461 | 11 | % | (4 | %) | |||||||||||||||||||||
Other specialty | 149 | 4 | % | 109 | 4 | % | 37 | % | |||||||||||||||||||||
Total specialty | 3,776 | 100 | % | 4,029 | 100 | % | (6 | %) | |||||||||||||||||||||
Neon exited lines | 8 | — | % | — | — | % | — | % | |||||||||||||||||||||
Aggregate | $ | 3,784 | 100 | % | $ | 4,029 | 100 | % | (6 | %) |
Nine months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
NEP | % | NEP | % | % Change | |||||||||||||||||||||||||
Property and transportation | $ | 1,350 | 36 | % | $ | 1,323 | 35 | % | 2 | % | |||||||||||||||||||
Specialty casualty | 1,663 | 44 | % | 1,921 | 50 | % | (13 | %) | |||||||||||||||||||||
Specialty financial | 455 | 12 | % | 458 | 12 | % | (1 | %) | |||||||||||||||||||||
Other specialty | 132 | 3 | % | 113 | 3 | % | 17 | % | |||||||||||||||||||||
Total specialty | 3,600 | 95 | % | 3,815 | 100 | % | (6 | %) | |||||||||||||||||||||
Neon exited lines | 174 | 5 | % | — | — | % | — | % | |||||||||||||||||||||
Aggregate | $ | 3,774 | 100 | % | $ | 3,815 | 100 | % | (1 | %) |
Nine months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | |||||||||||||||||||||||||
Property and transportation | |||||||||||||||||||||||||||||
Loss and LAE ratio | 65.1 | % | 68.3 | % | (3.2 | %) | |||||||||||||||||||||||
Underwriting expense ratio | 27.0 | % | 25.5 | % | 1.5 | % | |||||||||||||||||||||||
Combined ratio | 92.1 | % | 93.8 | % | (1.7 | %) | |||||||||||||||||||||||
Underwriting profit | $ | 107 | $ | 81 | |||||||||||||||||||||||||
Specialty casualty | |||||||||||||||||||||||||||||
Loss and LAE ratio | 63.7 | % | 61.6 | % | 2.1 | % | |||||||||||||||||||||||
Underwriting expense ratio | 28.4 | % | 32.9 | % | (4.5 | %) | |||||||||||||||||||||||
Combined ratio | 92.1 | % | 94.5 | % | (2.4 | %) | |||||||||||||||||||||||
Underwriting profit | $ | 132 | $ | 106 | |||||||||||||||||||||||||
Specialty financial | |||||||||||||||||||||||||||||
Loss and LAE ratio | 40.8 | % | 33.3 | % | 7.5 | % | |||||||||||||||||||||||
Underwriting expense ratio | 52.7 | % | 53.5 | % | (0.8 | %) | |||||||||||||||||||||||
Combined ratio | 93.5 | % | 86.8 | % | 6.7 | % | |||||||||||||||||||||||
Underwriting profit | $ | 30 | $ | 60 | |||||||||||||||||||||||||
Total Specialty | |||||||||||||||||||||||||||||
Loss and LAE ratio | 61.8 | % | 60.9 | % | 0.9 | % | |||||||||||||||||||||||
Underwriting expense ratio | 31.4 | % | 32.9 | % | (1.5 | %) | |||||||||||||||||||||||
Combined ratio | 93.2 | % | 93.8 | % | (0.6 | %) | |||||||||||||||||||||||
Underwriting profit | $ | 247 | $ | 236 | |||||||||||||||||||||||||
Aggregate — including exited lines | |||||||||||||||||||||||||||||
Loss and LAE ratio | 64.7 | % | 61.8 | % | 2.9 | % | |||||||||||||||||||||||
Underwriting expense ratio | 32.3 | % | 32.9 | % | (0.6 | %) | |||||||||||||||||||||||
Combined ratio | 97.0 | % | 94.7 | % | 2.3 | % | |||||||||||||||||||||||
Underwriting profit | $ | 114 | $ | 200 |
Nine months ended September 30, | |||||||||||||||||||||||||||||
Amount | Ratio | Change in | |||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | Ratio | |||||||||||||||||||||||||
Property and transportation | |||||||||||||||||||||||||||||
Current year, excluding COVID-19 related and catastrophe losses | $ | 909 | $ | 929 | 67.4 | % | 70.1 | % | (2.7 | %) | |||||||||||||||||||
Prior accident years development | (78) | (49) | (5.8 | %) | (3.7 | %) | (2.1 | %) | |||||||||||||||||||||
COVID-19 related losses | 7 | — | 0.5 | % | — | % | 0.5 | % | |||||||||||||||||||||
Current year catastrophe losses | 41 | 25 | 3.0 | % | 1.9 | % | 1.1 | % | |||||||||||||||||||||
Property and transportation losses and LAE and ratio | $ | 879 | $ | 905 | 65.1 | % | 68.3 | % | (3.2 | %) | |||||||||||||||||||
Specialty casualty | |||||||||||||||||||||||||||||
Current year, excluding COVID-19 related and catastrophe losses | $ | 1,083 | $ | 1,235 | 65.1 | % | 64.2 | % | 0.9 | % | |||||||||||||||||||
Prior accident years development | (91) | (63) | (5.5 | %) | (3.2 | %) | (2.3 | %) | |||||||||||||||||||||
COVID-19 related losses | 58 | — | 3.5 | % | — | % | 3.5 | % | |||||||||||||||||||||
Current year catastrophe losses | 9 | 12 | 0.6 | % | 0.6 | % | — | % | |||||||||||||||||||||
Specialty casualty losses and LAE and ratio | $ | 1,059 | $ | 1,184 | 63.7 | % | 61.6 | % | 2.1 | % | |||||||||||||||||||
Specialty financial | |||||||||||||||||||||||||||||
Current year, excluding COVID-19 related and catastrophe losses | $ | 160 | $ | 168 | 34.9 | % | 36.8 | % | (1.9 | %) | |||||||||||||||||||
Prior accident years development | (22) | (24) | (4.8 | %) | (5.3 | %) | 0.5 | % | |||||||||||||||||||||
COVID-19 related losses | 29 | — | 6.4 | % | — | % | 6.4 | % | |||||||||||||||||||||
Current year catastrophe losses | 19 | 8 | 4.3 | % | 1.8 | % | 2.5 | % | |||||||||||||||||||||
Specialty financial losses and LAE and ratio | $ | 186 | $ | 152 | 40.8 | % | 33.3 | % | 7.5 | % | |||||||||||||||||||
Total Specialty | |||||||||||||||||||||||||||||
Current year, excluding COVID-19 related and catastrophe losses | $ | 2,239 | $ | 2,411 | 62.2 | % | 63.2 | % | (1.0 | %) | |||||||||||||||||||
Prior accident years development | (181) | (134) | (5.0 | %) | (3.5 | %) | (1.5 | %) | |||||||||||||||||||||
COVID-19 related losses | 95 | — | 2.6 | % | — | % | 2.6 | % | |||||||||||||||||||||
Current year catastrophe losses | 71 | 46 | 2.0 | % | 1.2 | % | 0.8 | % | |||||||||||||||||||||
Total Specialty losses and LAE and ratio | $ | 2,224 | $ | 2,323 | 61.8 | % | 60.9 | % | 0.9 | % | |||||||||||||||||||
Aggregate — including exited lines | |||||||||||||||||||||||||||||
Current year, excluding COVID-19 related and catastrophe losses | $ | 2,358 | $ | 2,411 | 62.5 | % | 63.2 | % | (0.7 | %) | |||||||||||||||||||
Prior accident years development | (119) | (98) | (3.1 | %) | (2.6 | %) | (0.5 | %) | |||||||||||||||||||||
COVID-19 related losses | 115 | — | 3.0 | % | — | % | 3.0 | % | |||||||||||||||||||||
Current year catastrophe losses | 87 | 46 | 2.3 | % | 1.2 | % | 1.1 | % | |||||||||||||||||||||
Aggregate losses and LAE and ratio | $ | 2,441 | $ | 2,359 | 64.7 | % | 61.8 | % | 2.9 | % |
Nine months ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | Change in | |||||||||||||||||||||||||||
U/W Exp | % of NEP | U/W Exp | % of NEP | % of NEP | |||||||||||||||||||||||||
Property and transportation | $ | 364 | 27.0 | % | $ | 337 | 25.5 | % | 1.5 | % | |||||||||||||||||||
Specialty casualty | 472 | 28.4 | % | 631 | 32.9 | % | (4.5 | %) | |||||||||||||||||||||
Specialty financial | 239 | 52.7 | % | 246 | 53.5 | % | (0.8 | %) | |||||||||||||||||||||
Other specialty | 54 | 39.1 | % | 42 | 37.5 | % | 1.6 | % | |||||||||||||||||||||
Total Specialty | 1,129 | 31.4 | % | 1,256 | 32.9 | % | (1.5 | %) | |||||||||||||||||||||
Neon exited lines | 90 | — | |||||||||||||||||||||||||||
Aggregate | $ | 1,219 | 32.3 | % | $ | 1,256 | 32.9 | % | (0.6 | %) |
Nine months ended September 30, | |||||||||||||||||||||||
2020 | 2019 | Change | % Change | ||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||
Net investment income excluding alternative investments | $ | 264 | $ | 296 | $ | (32) | (11 | %) | |||||||||||||||
Alternative investments | 18 | 56 | (38) | (68 | %) | ||||||||||||||||||
Total net investment income | $ | 282 | $ | 352 | $ | (70) | (20 | %) | |||||||||||||||
Average invested assets (at amortized cost) | $ | 11,611 | $ | 11,192 | $ | 419 | 4 | % | |||||||||||||||
Yield (net investment income as a % of average invested assets) | 3.24 | % | 4.19 | % | (0.95 | %) | |||||||||||||||||
Tax equivalent yield (*) | 3.37 | % | 4.36 | % | (0.99 | %) |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Other income | $ | 8 | $ | 10 | |||||||
Other expenses | |||||||||||
Amortization of intangibles | 9 | 9 | |||||||||
Other | 22 | 25 | |||||||||
Total other expense | 31 | 34 | |||||||||
Other income and expenses, net | $ | (23) | $ | (24) |
Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Revenues: | |||||||||||||||||
Net investment income | $ | 1,270 | $ | 1,334 | (5 | %) | |||||||||||
Other income: | |||||||||||||||||
Guaranteed withdrawal benefit fees | 52 | 50 | 4 | % | |||||||||||||
Policy charges and other miscellaneous income (a) | 48 | 39 | 23 | % | |||||||||||||
Total revenues | 1,370 | 1,423 | (4 | %) | |||||||||||||
Costs and Expenses: | |||||||||||||||||
Annuity benefits (a)(b) | 843 | 867 | (3 | %) | |||||||||||||
Acquisition expenses (a) | 197 | 157 | 25 | % | |||||||||||||
Other expenses | 100 | 105 | (5 | %) | |||||||||||||
Total costs and expenses | 1,140 | 1,129 | 1 | % | |||||||||||||
Core earnings before income taxes | 230 | 294 | (22 | %) | |||||||||||||
Pretax non-core earnings (losses) (a) | (140) | (60) | 133 | % | |||||||||||||
GAAP earnings before income taxes | $ | 90 | $ | 234 | (62 | %) |
Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Core earnings before income taxes — before the impact of unlocking, derivatives related to FIAs and other impacts of stock market performance and interest rates on FIAs | $ | 230 | $ | 305 | (25 | %) | |||||||||||
Unlocking | (46) | (1) | 4,500 | % | |||||||||||||
Impact of derivatives related to FIAs and other impacts of changes in the stock market and interest rates on FIAs over or under option costs: | |||||||||||||||||
Change in fair value of derivatives related to FIAs | (240) | (279) | (14 | %) | |||||||||||||
Accretion of guaranteed minimum FIA benefits | (318) | (305) | 4 | % | |||||||||||||
Other annuity benefits | (50) | (12) | 317 | % | |||||||||||||
Less cost of equity options | 446 | 436 | 2 | % | |||||||||||||
Related impact on the amortization of deferred policy acquisition costs | 68 | 90 | (24 | %) | |||||||||||||
GAAP earnings before income taxes | $ | 90 | $ | 234 | (62 | %) |
Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Total | |||||||||||||||||||||||||||||||||||||||
Core | Non-core | Total | Core | Non-core | Total | % Change | |||||||||||||||||||||||||||||||||||
Interest credited — fixed | $ | 307 | $ | — | $ | 307 | $ | 294 | $ | — | $ | 294 | 4 | % | |||||||||||||||||||||||||||
Accretion of guaranteed minimum FIA benefits | — | 318 | 318 | 99 | 206 | 305 | 4 | % | |||||||||||||||||||||||||||||||||
Interest credited — fixed component of variable annuities | 3 | — | 3 | 3 | — | 3 | — | % | |||||||||||||||||||||||||||||||||
Cost of equity options | 446 | (446) | — | 295 | (295) | — | — | % | |||||||||||||||||||||||||||||||||
Other annuity benefits: | |||||||||||||||||||||||||||||||||||||||||
Amortization of sales inducements | 6 | — | 6 | 10 | — | 10 | (40 | %) | |||||||||||||||||||||||||||||||||
Change in guaranteed withdrawal benefit reserve: | |||||||||||||||||||||||||||||||||||||||||
Impact of change in the stock market and interest rates | — | 11 | 11 | (12) | (4) | (16) | (169 | %) | |||||||||||||||||||||||||||||||||
Accretion of benefits and other | 68 | — | 68 | 60 | — | 60 | 13 | % | |||||||||||||||||||||||||||||||||
Change in expected death and annuitization reserves and other | 13 | — | 13 | 19 | — | 19 | (32 | %) | |||||||||||||||||||||||||||||||||
Change in other benefit reserves — impact of changes in interest rates and the stock market | — | 39 | 39 | 4 | 24 | 28 | 39 | % | |||||||||||||||||||||||||||||||||
Unlocking | — | (77) | (77) | — | (74) | (74) | 4 | % | |||||||||||||||||||||||||||||||||
Derivatives related to fixed-indexed annuities: | |||||||||||||||||||||||||||||||||||||||||
Embedded derivative mark-to-market | — | 199 | 199 | 462 | 362 | 824 | (76 | %) | |||||||||||||||||||||||||||||||||
Equity option mark-to-market | — | 41 | 41 | (367) | (178) | (545) | (108 | %) | |||||||||||||||||||||||||||||||||
Impact of derivatives related to FIAs | — | 240 | 240 | 95 | 184 | 279 | (14 | %) | |||||||||||||||||||||||||||||||||
Total annuity benefits | $ | 843 | $ | 85 | $ | 928 | $ | 867 | $ | 41 | $ | 908 | 2 | % |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Interest credited — fixed | $ | 307 | $ | 294 | |||||||
Include cost of equity options | 446 | 436 | |||||||||
Cost of funds | 753 | 730 | |||||||||
Interest credited — fixed component of variable annuities | 3 | 3 | |||||||||
Other annuity benefits, excluding the impact of interest rates and the stock market on FIAs | 87 | 89 | |||||||||
843 | 822 | ||||||||||
Unlocking, changes in fair value of derivatives related to FIAs, and other impacts of the stock market and interest rates over or under option costs: | |||||||||||
Unlocking | (77) | (74) | |||||||||
Impact of derivatives related to FIAs | 240 | 279 | |||||||||
Accretion of guaranteed minimum FIA benefits | 318 | 305 | |||||||||
Other annuity benefits — impact of the stock market and interest rates on FIAs | 50 | 12 | |||||||||
Less cost of equity options (included in cost of funds) | (446) | (436) | |||||||||
Total annuity benefits expense | $ | 928 | $ | 908 |
Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Average fixed annuity investments (at amortized cost) | $ | 40,501 | $ | 37,849 | 7 | % | |||||||||||
Average fixed annuity benefits accumulated | 40,633 | 38,075 | 7 | % | |||||||||||||
As % of fixed annuity benefits accumulated (except as noted): | |||||||||||||||||
Net investment income (as % of fixed annuity investments) | 4.16 | % | 4.68 | % | |||||||||||||
Cost of funds | (2.47 | %) | (2.56 | %) | |||||||||||||
Other annuity benefit expenses, net of guaranteed withdrawal benefit fees (*) | (0.11 | %) | (0.13 | %) | |||||||||||||
Net interest spread | 1.58 | % | 1.99 | % | |||||||||||||
Policy charges and other miscellaneous income (*) | 0.13 | % | 0.11 | % | |||||||||||||
Acquisition expenses (*) | (0.63 | %) | (0.66 | %) | |||||||||||||
Other expenses | (0.32 | %) | (0.36 | %) | |||||||||||||
Net spread earned on fixed annuities excluding the impact of unlocking, changes in the fair value of derivatives related to FIAs, and other impacts of changes in the stock market and interest rates on FIAs | 0.76 | % | 1.08 | % | |||||||||||||
Changes in fair value of derivatives related to FIAs and other impacts of the stock market and interest rates under (over) option costs: | |||||||||||||||||
Included in core | — | % | (0.04 | %) | |||||||||||||
Annuity non-core earnings (losses) | (0.31 | %) | (0.21 | %) | |||||||||||||
Unlocking | (0.15 | %) | — | % | |||||||||||||
Net spread earned on fixed annuities | 0.30 | % | 0.83 | % |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cost of equity options (FIAs) | $ | 446 | $ | 436 | |||||||
Interest credited: | |||||||||||
Traditional fixed annuities | 191 | 182 | |||||||||
Fixed component of fixed-indexed annuities | 77 | 69 | |||||||||
Immediate annuities | 17 | 18 | |||||||||
Pension risk transfer products | 13 | 4 | |||||||||
Federal Home Loan Bank advances | 9 | 21 | |||||||||
Total cost of funds | $ | 753 | $ | 730 |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Other annuity benefits, excluding the impact of the stock market and interest rates on FIAs: | |||||||||||
Amortization of sales inducements | $ | 6 | $ | 10 | |||||||
Change in guaranteed withdrawal benefit reserve | 68 | 60 | |||||||||
Change in other benefit reserves | 13 | 19 | |||||||||
Other annuity benefits | 87 | 89 | |||||||||
Offset guaranteed withdrawal benefit fees | (52) | (50) | |||||||||
Other annuity benefits excluding the impact of the stock market and interest rates, net | 35 | 39 | |||||||||
Other annuity benefits — impact of the stock market and interest rates | 50 | 12 | |||||||||
Other annuity benefits, net | $ | 85 | $ | 51 |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Annuity acquisition expenses before the impact of unlocking, changes in the fair value of derivatives related to FIAs and other impacts of the stock market and interest rates | $ | 197 | $ | 191 | |||||||
Unlocking | 118 | 76 | |||||||||
Impact of changes in the fair value of derivatives and other impacts of the stock market and interest rates: | |||||||||||
Included in core | — | (34) | |||||||||
Annuity non-core earnings (losses) | (68) | (56) | |||||||||
Annuity acquisition expenses | $ | 247 | $ | 177 |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Before unlocking, the impact of changes in the fair value of derivatives related to FIAs and other impacts of the stock market and interest rates | 0.63 | % | 0.66 | % | |||||||
Unlocking | 0.39 | % | 0.27 | % | |||||||
Impact of changes in fair value of derivatives and other impacts of the stock market and interest rates | (0.22 | %) | (0.32 | %) | |||||||
Annuity acquisition expenses as a % of fixed annuity benefits accumulated | 0.80 | % | 0.61 | % |
Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Change in the fair value of derivatives related to FIAs | $ | (240) | $ | (279) | (14 | %) | |||||||||||
Accretion of guaranteed minimum FIA benefits | (318) | (305) | 4 | % | |||||||||||||
Other annuity benefits | (50) | (12) | 317 | % | |||||||||||||
Less cost of equity options | 446 | 436 | 2 | % | |||||||||||||
Related impact on the amortization of DPAC | 68 | 90 | (24 | %) | |||||||||||||
Impact on annuity segment earnings before income taxes | $ | (94) | $ | (70) | 34 | % | |||||||||||
Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Change in the stock market, including volatility | $ | (7) | $ | 44 | (116 | %) | |||||||||||
Changes in interest rates higher (lower) than expected | (88) | (113) | (22 | %) | |||||||||||||
Other | 1 | (1) | (200 | %) | |||||||||||||
Impact on annuity segment earnings before income taxes | $ | (94) | $ | (70) | 34 | % | |||||||||||
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Beginning fixed annuity reserves | $ | 40,018 | $ | 36,431 | |||||||
Fixed annuity premiums (receipts) | 2,755 | 3,805 | |||||||||
Federal Home Loan Bank advances, net | 160 | — | |||||||||
Surrenders, benefits and other withdrawals | (2,406) | (2,431) | |||||||||
Interest and other annuity benefit expenses: | |||||||||||
Cost of funds | 753 | 730 | |||||||||
Embedded derivative mark-to-market | 199 | 824 | |||||||||
Change in other benefit reserves | (32) | (72) | |||||||||
Unlocking | (73) | (75) | |||||||||
Ending fixed annuity reserves | $ | 41,374 | $ | 39,212 | |||||||
Reconciliation to annuity benefits accumulated per balance sheet: | |||||||||||
Ending fixed annuity reserves (from above) | $ | 41,374 | $ | 39,212 | |||||||
Impact of unrealized investment gains | 394 | 269 | |||||||||
Fixed component of variable annuities | 164 | 170 | |||||||||
Annuity benefits accumulated per balance sheet | $ | 41,932 | $ | 39,651 |
Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Financial institutions single premium annuities — indexed | $ | 1,014 | $ | 1,178 | (14 | %) | |||||||||||
Financial institutions single premium annuities — fixed | 526 | 959 | (45 | %) | |||||||||||||
Retail single premium annuities — indexed | 444 | 773 | (43 | %) | |||||||||||||
Retail single premium annuities — fixed | 73 | 95 | (23 | %) | |||||||||||||
Broker dealer single premium annuities — indexed | 347 | 550 | (37 | %) | |||||||||||||
Broker dealer single premium annuities — fixed | 22 | 23 | (4 | %) | |||||||||||||
Pension risk transfer | 225 | 99 | 127 | % | |||||||||||||
Education market — fixed and indexed annuities | 104 | 128 | (19 | %) | |||||||||||||
Total fixed annuity premiums | 2,755 | 3,805 | (28 | %) | |||||||||||||
Variable annuities | 13 | 16 | (19 | %) | |||||||||||||
Total gross fixed annuity premiums | 2,768 | 3,821 | (28 | %) | |||||||||||||
Ceded premiums | (246) | — | — | % | |||||||||||||
Total net annuity premiums | $ | 2,522 | $ | 3,821 | (34 | %) |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Policy charges and other miscellaneous income: | |||||||||||
Unearned revenue | $ | (5) | $ | 1 | |||||||
Total revenues | (5) | 1 | |||||||||
Annuity benefits: | |||||||||||
Fixed-indexed annuities embedded derivative | (240) | (181) | |||||||||
Guaranteed withdrawal benefit reserve | 107 | 102 | |||||||||
Other reserves | 60 | 4 | |||||||||
Sales inducements asset | (4) | 1 | |||||||||
Total annuity benefits | (77) | (74) | |||||||||
Annuity and supplemental insurance acquisition expenses: | |||||||||||
Deferred policy acquisition costs | 118 | 76 | |||||||||
Total costs and expenses | 41 | 2 | |||||||||
Net charge | $ | (46) | $ | (1) |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Earnings on fixed annuity benefits accumulated | $ | 91 | $ | 238 | |||||||
Earnings impact of investments in excess of fixed annuity benefits accumulated (*) | (4) | (7) | |||||||||
Variable annuity earnings | 3 | 3 | |||||||||
Earnings before income taxes | $ | 90 | $ | 234 | |||||||
Nine months ended September 30, | |||||||||||||||||
2020 | 2019 | % Change | |||||||||||||||
Revenues: | |||||||||||||||||
Life, accident and health net earned premiums | $ | 15 | $ | 17 | (12 | %) | |||||||||||
Net investment income | 16 | 35 | (54 | %) | |||||||||||||
Other income — P&C fees | 50 | 52 | (4 | %) | |||||||||||||
Reclassify annuity segment option gains | (23) | (8) | 188 | % | |||||||||||||
Other income | 19 | 20 | (5 | %) | |||||||||||||
Total revenues | 77 | 116 | (34 | %) | |||||||||||||
Costs and Expenses: | |||||||||||||||||
Property and casualty insurance — commissions and other underwriting expenses | 16 | 19 | (16 | %) | |||||||||||||
Annuity - annuity benefits | (23) | (8) | 188 | % | |||||||||||||
Life, accident and health benefits (a) | 30 | 26 | 15 | % | |||||||||||||
Life, accident and health acquisition expenses | 3 | 4 | (25 | %) | |||||||||||||
Other expense — expenses associated with P&C fees | 34 | 33 | 3 | % | |||||||||||||
Other expenses (b) | 85 | 116 | (27 | %) | |||||||||||||
Costs and expenses, excluding interest charges on borrowed money | 145 | 190 | (24 | %) | |||||||||||||
Core loss before income taxes, excluding realized gains and losses and interest charges on borrowed money | (68) | (74) | (8 | %) | |||||||||||||
Interest charges on borrowed money | 64 | 50 | 28 | % | |||||||||||||
Core loss before income taxes, excluding realized gains and losses | (132) | (124) | 6 | % | |||||||||||||
Pretax non-core special A&E charges | (21) | (11) | 91 | % | |||||||||||||
Pretax non-core long-term care loss recognition charge | (4) | — | — | % | |||||||||||||
GAAP loss before income taxes, excluding realized gains and losses | $ | (157) | $ | (135) | 16 | % |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Realized gains (losses) before impairments: | |||||||||||
Disposals | $ | 48 | $ | 11 | |||||||
Change in the fair value of equity securities | (303) | 211 | |||||||||
Change in the fair value of derivatives | 2 | 14 | |||||||||
Adjustments to annuity deferred policy acquisition costs and related items | (6) | (1) | |||||||||
(259) | 235 | ||||||||||
Change in allowance for impairments: | |||||||||||
Securities | (57) | (20) | |||||||||
Adjustments to annuity deferred policy acquisition costs and related items | 14 | 7 | |||||||||
(43) | (13) | ||||||||||
Realized gains (losses) on securities | $ | (302) | $ | 222 |
Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (*) | ||||||||||||||||||||
First quarter | 826,283 | $ | 74.28 | 826,283 | 4,173,717 | ||||||||||||||||||
Second quarter | 1,194,236 | 63.71 | 1,194,236 | 2,979,481 | |||||||||||||||||||
Third quarter: | |||||||||||||||||||||||
July | 130,900 | $ | 59.71 | 130,900 | 2,848,581 | ||||||||||||||||||
August | 516,500 | 66.80 | 516,500 | 2,332,081 | |||||||||||||||||||
September | 800,188 | 66.53 | 800,188 | 1,531,893 | |||||||||||||||||||
Total | 3,468,107 | $ | 67.19 | 3,468,107 |
Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (*) | |||||||||
First Quarter: | ||||||||||||
January | — | — | — | 5,000,000 | ||||||||
February | 103,679 | $ | 95.29 | 103,679 | 4,896,321 | |||||||
March | 722,604 | 71.27 | 722,604 | 4,173,717 | ||||||||
Total | 826,283 | $ | 74.28 | 826,283 |
Number | Exhibit 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. | |||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
American Financial Group, Inc. | |||||||||||
November 5, 2020 | /s/ Brian Hertzman | ||||||||||
Brian Hertzman | |||||||||||