☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 80-0873306 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||
6620 West Broad Street Richmond, Virginia | 23230 | ||
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Title of Each Class | Trading | Name of each exchange | ||
Class A Common Stock, par value $.001 per share | GNW | New York Stock Exchange |
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9 | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 1. | ||||||
Item 1A. | ||||||
Item 6. | ||||||
June 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Investments: | ||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $53,111 and $53,417 and allowance for credit losses of $0and $4 as of June 30, 2021 and December 31, 2020, respectively) | $ | 61,649 | $ | 63,495 | ||||
Equity securities, at fair value | 147 | 386 | ||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4 as of June 30, 2021 and December 31, 2020) | 6,912 | 6,774 | ||||||
Less: Allowance for credit losses | (33 | ) | (31 | ) | ||||
Commercial mortgage loans, net | 6,879 | 6,743 | ||||||
Policy loans | 2,083 | 1,978 | ||||||
Other invested assets | 2,260 | 2,099 | ||||||
Total investments | 73,018 | 74,701 | ||||||
Cash, cash equivalents and restricted cash | 2,214 | 2,561 | ||||||
Accrued investment income | 573 | 655 | ||||||
Deferred acquisition costs | 1,212 | 1,487 | ||||||
Intangible assets | 151 | 157 | ||||||
Reinsurance recoverable | 16,716 | 16,864 | ||||||
Less: Allowance for credit losses | (50 | ) | (45 | ) | ||||
Reinsurance recoverable, net | 16,666 | 16,819 | ||||||
Other assets | 403 | 404 | ||||||
Deferred tax asset | 211 | 65 | ||||||
Separate account assets | 6,202 | 6,081 | ||||||
Assets related to discontinued operations | 0 | 2,817 | ||||||
Total assets | $ | 100,650 | $ | 105,747 | ||||
Liabilities and equity | ||||||||
Liabilities: | ||||||||
Future policy benefits | $ | 42,165 | $ | 42,695 | ||||
Policyholder account balances | 19,944 | 21,503 | ||||||
Liability for policy and contract claims | 11,546 | 11,486 | ||||||
Unearned premiums | 695 | 775 | ||||||
Other liabilities | 1,664 | 1,614 | ||||||
Long-term borrowings | 2,924 | 3,403 | ||||||
Separate account liabilities | 6,202 | 6,081 | ||||||
Liabilities related to discontinued operations | 346 | 2,370 | ||||||
Total liabilities | 85,486 | 89,927 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Equity: | ||||||||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 596 million and 594 million shares issued as of June 30, 2021 and December 31, 2020, respectively; 508 million and 506 million shares outstanding as of June 30, 2021 and December 31, 2020, respectively | 1 | 1 | ||||||
Additional paid-in capital | 12,018 | 12,008 | ||||||
Accumulated other comprehensive income (loss) | 3,834 | 4,425 | ||||||
Retained earnings | 2,011 | 1,584 | ||||||
Treasury stock, at cost (88 million shares as of June 30, 2021 and December 31, 2020) | (2,700 | ) | (2,700 | ) | ||||
Total Genworth Financial, Inc.’s stockholders’ equity | 15,164 | 15,318 | ||||||
Noncontrolling interests | 0 | 502 | ||||||
Total equity | 15,164 | 15,820 | ||||||
Total liabilities and equity | $ | 100,650 | $ | 105,747 | ||||
September 30, 2020 | December 31, 2019 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Investments: | ||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $55,252 and allowance for credit losses of $5 as of September 30, 2020) | $ | 64,416 | $ | 60,339 | ||||
Equity securities, at fair value | 629 | 239 | ||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4 as of September 30, 2020 and December 31, 2019) | 6,911 | 6,976 | ||||||
Less: Allowance for credit losses | (31 | ) | (13 | ) | ||||
Commercial mortgage loans, net | 6,880 | 6,963 | ||||||
Policy loans | 2,153 | 2,058 | ||||||
Other invested assets | 2,402 | 1,632 | ||||||
Total investments | 76,480 | 71,231 | ||||||
Cash, cash equivalents and restricted cash | 2,780 | 3,341 | ||||||
Accrued investment income | 650 | 654 | ||||||
Deferred acquisition costs | 1,623 | 1,836 | ||||||
Intangible assets and goodwill | 209 | 201 | ||||||
Reinsurance recoverable | 16,832 | 17,103 | ||||||
Less: Allowance for credit losses | (44 | ) | 0 | |||||
Reinsurance recoverable, net | 16,788 | 17,103 | ||||||
Other assets | 445 | 443 | ||||||
Deferred tax asset | 250 | 425 | ||||||
Separate account assets | 5,700 | 6,108 | ||||||
Total assets | $ | 104,925 | $ | 101,342 | ||||
Liabilities and equity | ||||||||
Liabilities: | ||||||||
Future policy benefits | $ | 41,995 | $ | 40,384 | ||||
Policyholder account balances | 22,731 | 22,217 | ||||||
Liability for policy and contract claims | 11,373 | 10,958 | ||||||
Unearned premiums | 1,846 | 1,893 | ||||||
Other liabilities | 1,913 | 1,386 | ||||||
Non-recourse funding obligations | 0 | 311 | ||||||
Long-term borrowings | 3,570 | 3,277 | ||||||
Separate account liabilities | 5,700 | 6,108 | ||||||
Liabilities related to discontinued operations | 565 | 176 | ||||||
Total liabilities | 89,693 | 86,710 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 594 million and 592 million shares issued as of September 30, 2020 and December 31, 2019, respectively; 506 million and 504 million shares outstanding as of September 30, 2020 and December 31, 2019, respectively | 1 | 1 | ||||||
Additional paid-in capital | 11,997 | 11,990 | ||||||
Accumulated other comprehensive income (loss) | 4,141 | 3,433 | ||||||
Retained earnings | 1,317 | 1,461 | ||||||
Treasury stock, at cost (88 million shares as of September 30, 2020 and December 31, 2019) | (2,700 | ) | (2,700 | ) | ||||
Total Genworth Financial, Inc.’s stockholders’ equity | 14,756 | 14,185 | ||||||
Noncontrolling interests | 476 | 447 | ||||||
Total equity | 15,232 | 14,632 | ||||||
Total liabilities and equity | $ | 104,925 | $ | 101,342 | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 947 | $ | 957 | $ | 1,915 | $ | 1,903 | ||||||||
Net investment income | 844 | 779 | 1,645 | 1,561 | ||||||||||||
Net investment gains (losses) | 70 | 93 | 103 | (6 | ) | |||||||||||
Policy fees and other income | 180 | 174 | 363 | 354 | ||||||||||||
Total revenues | 2,041 | 2,003 | 4,026 | 3,812 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 1,161 | 1,447 | 2,379 | 2,784 | ||||||||||||
Interest credited | 127 | 139 | 258 | 280 | ||||||||||||
Acquisition and operating expenses, net of deferrals | 304 | 210 | 579 | 447 | ||||||||||||
Amortization of deferred acquisition costs and intangibles | 86 | 87 | 163 | 195 | ||||||||||||
Interest expense | 43 | 42 | 94 | 93 | ||||||||||||
Total benefits and expenses | 1,721 | 1,925 | 3,473 | 3,799 | ||||||||||||
Income from continuing operations before income taxes | 320 | 78 | 553 | 13 | ||||||||||||
Provision for income taxes | 75 | 23 | 134 | 18 | ||||||||||||
Income (loss) from continuing operations | 245 | 55 | 419 | (5 | ) | |||||||||||
Income (loss) from discontinued operations, net of taxes | (5 | ) | (473 | ) | 16 | (485 | ) | |||||||||
Net income (loss) | 240 | (418 | ) | 435 | (490 | ) | ||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 23 | 8 | 17 | ||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 240 | $ | (441 | ) | $ | 427 | $ | (507 | ) | ||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 245 | $ | 55 | $ | 419 | $ | (5 | ) | |||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | (5 | ) | (496 | ) | 8 | (502 | ) | |||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 240 | $ | (441 | ) | $ | 427 | $ | (507 | ) | ||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||
Basic | $ | 0.48 | $ | 0.11 | $ | 0.83 | $ | (0.01 | ) | |||||||
Diluted | $ | 0.47 | $ | 0.11 | $ | 0.82 | $ | (0.01 | ) | |||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||
Basic | $ | 0.47 | $ | (0.87 | ) | $ | 0.84 | $ | (1.00 | ) | ||||||
Diluted | $ | 0.47 | $ | (0.86 | ) | $ | 0.83 | $ | (1.00 | ) | ||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 507.0 | 505.4 | 506.5 | 504.8 | ||||||||||||
Diluted | 515.0 | 512.5 | 514.4 | 504.8 | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 1,034 | $ | 1,015 | $ | 3,068 | $ | 3,004 | ||||||||
Net investment income | 827 | 816 | 2,406 | 2,426 | ||||||||||||
Net investment gains (losses) | 375 | (2 | ) | 382 | 27 | |||||||||||
Policy fees and other income | 184 | 191 | 539 | 601 | ||||||||||||
Total revenues | 2,420 | 2,020 | 6,395 | 6,058 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 1,299 | 1,284 | 4,146 | 3,817 | ||||||||||||
Interest credited | 137 | 146 | 417 | 439 | ||||||||||||
Acquisition and operating expenses, net of deferrals | 249 | 247 | 721 | 713 | ||||||||||||
Amortization of deferred acquisition costs and intangibles | 101 | 112 | 310 | 277 | ||||||||||||
Goodwill impairment | 0 | 0 | 5 | 0 | ||||||||||||
Interest expense | 49 | 59 | 145 | 179 | ||||||||||||
Total benefits and expenses | 1,835 | 1,848 | 5,744 | 5,425 | ||||||||||||
Income from continuing operations before income taxes | 585 | 172 | 651 | 633 | ||||||||||||
Provision for income taxes | 150 | 34 | 186 | 169 | ||||||||||||
Income from continuing operations | 435 | 138 | 465 | 464 | ||||||||||||
Income (loss) from discontinued operations, net of taxes | 1 | (80 | ) | (519 | ) | 42 | ||||||||||
Net income (loss) | 436 | 58 | (54 | ) | 506 | |||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 35 | 45 | ||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 30 | 0 | 101 | ||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 418 | $ | 18 | $ | (89 | ) | $ | 360 | |||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 417 | $ | 128 | $ | 430 | $ | 419 | ||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | 1 | (110 | ) | (519 | ) | (59 | ) | |||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 418 | $ | 18 | $ | (89 | ) | $ | 360 | |||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||
Basic | $ | 0.83 | $ | 0.25 | $ | 0.85 | $ | 0.83 | ||||||||
Diluted | $ | 0.82 | $ | 0.25 | $ | 0.84 | $ | 0.82 | ||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||
Basic | $ | 0.83 | $ | 0.04 | $ | (0.18 | ) | $ | 0.72 | |||||||
Diluted | $ | 0.82 | $ | 0.04 | $ | (0.17 | ) | $ | 0.71 | |||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 505.6 | 503.5 | 505.1 | 502.7 | ||||||||||||
Diluted | 511.5 | 511.2 | 511.2 | 509.5 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Net income (loss) | $ | 436 | $ | 58 | $ | (54 | ) | $ | 506 | $ | 240 | $ | (418 | ) | $ | 435 | $ | (490 | ) | |||||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | (98 | ) | 0 | 264 | 0 | (58 | ) | 682 | (380 | ) | 362 | |||||||||||||||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses | (2 | ) | 0 | (10 | ) | 0 | 4 | (8 | ) | 6 | (8 | ) | ||||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 0 | 371 | 0 | 1,126 | ||||||||||||||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 0 | 0 | 1 | ||||||||||||||||||||||||||||
Derivatives qualifying as hedges | (226 | ) | 276 | 449 | 478 | 211 | (78 | ) | (208 | ) | 675 | |||||||||||||||||||||
Foreign currency translation and other adjustments | 33 | (64 | ) | 8 | 33 | 2 | 73 | 138 | (25 | ) | ||||||||||||||||||||||
Total other comprehensive income (loss) | (293 | ) | 583 | 711 | 1,638 | 159 | 669 | (444 | ) | 1,004 | ||||||||||||||||||||||
Total comprehensive income | 143 | 641 | 657 | 2,144 | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | 399 | 251 | (9 | ) | 514 | |||||||||||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 31 | 14 | 38 | 206 | 0 | 60 | 155 | 7 | ||||||||||||||||||||||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders | $ | 112 | $ | 627 | $ | 619 | $ | 1,938 | ||||||||||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 399 | $ | 191 | $ | (164 | ) | $ | 507 | |||||||||||||||||||||||
Three months ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of June 30, 2020 | $ | 1 | $ | 11,996 | $ | 4,447 | $ | 899 | $ | (2,700 | ) | $ | 14,643 | $ | 445 | $ | 15,088 | |||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 418 | 0 | 418 | 18 | 436 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | 0 | 0 | (306 | ) | 0 | 0 | (306 | ) | 13 | (293 | ) | |||||||||||||||||||||
Total comprehensive income | 112 | 31 | 143 | |||||||||||||||||||||||||||||
Stock-based compensation expense and exercises and other | 0 | 1 | 0 | 0 | 0 | 1 | 0 | 1 | ||||||||||||||||||||||||
Balances as of September 30, 2020 | $ | 1 | $ | 11,997 | $ | 4,141 | $ | 1,317 | $ | (2,700 | ) | $ | 14,756 | $ | 476 | $ | 15,232 | |||||||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of June 30, 2019 | $ | 1 | $ | 11,983 | $ | 3,013 | $ | 1,460 | $ | (2,700 | ) | $ | 13,757 | $ | 1,835 | $ | 15,592 | |||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 18 | 0 | 18 | 40 | 58 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | 0 | 0 | 609 | 0 | 0 | 609 | (26 | ) | 583 | |||||||||||||||||||||||
Total comprehensive income | 627 | 14 | 641 | |||||||||||||||||||||||||||||
Dividends to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (96 | ) | (96 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | 0 | 3 | 0 | 0 | 0 | 3 | 5 | 8 | ||||||||||||||||||||||||
Balances as of September 30, 2019 | $ | 1 | $ | 11,986 | $ | 3,622 | $ | 1,478 | $ | (2,700 | ) | $ | 14,387 | $ | 1,758 | $ | 16,145 | |||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of March 31, 2021 | $ | 1 | $ | 12,011 | $ | 3,675 | $ | 1,771 | $ | (2,700 | ) | $ | 14,758 | $ | 0 | $ | 14,758 | |||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 240 | 0 | 240 | 0 | 240 | ||||||||||||||||||||||||
Other comprehensive income, net of taxes | 0 | 0 | 159 | 0 | 0 | 159 | 0 | 159 | ||||||||||||||||||||||||
Total comprehensive income | 399 | 0 | 399 | |||||||||||||||||||||||||||||
Stock-based compensation expense and exercises and other | 0 | 7 | 0 | 0 | 0 | 7 | 0 | 7 | ||||||||||||||||||||||||
Balances as of June 30, 2021 | $ | 1 | $ | 12,018 | $ | 3,834 | $ | 2,011 | $ | (2,700 | ) | $ | 15,164 | $ | 0 | $ | 15,164 | |||||||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of March 31, 2020 | $ | 1 | $ | 11,993 | $ | 3,815 | $ | 1,340 | $ | (2,700 | ) | $ | 14,449 | $ | 385 | $ | 14,834 | |||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income (loss) | 0 | 0 | 0 | (441 | ) | 0 | (441 | ) | 23 | (418 | ) | |||||||||||||||||||||
Other comprehensive income, net of taxes | 0 | 0 | 632 | 0 | 0 | 632 | 37 | 669 | ||||||||||||||||||||||||
Total comprehensive income | 191 | 60 | 251 | |||||||||||||||||||||||||||||
Stock-based compensation expense and exercises and other | 0 | 3 | 0 | 0 | 0 | 3 | 0 | 3 | ||||||||||||||||||||||||
Balances as of June 30, 2020 | $ | 1 | $ | 11,996 | $ | 4,447 | $ | 899 | $ | (2,700 | ) | $ | 14,643 | $ | 445 | $ | 15,088 | |||||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of December 31, 2019 | $ | 1 | $ | 11,990 | $ | 3,433 | $ | 1,461 | $ | (2,700 | ) | $ | 14,185 | $ | 447 | $ | 14,632 | |||||||||||||||
Cumulative effect of change in accounting, net of taxes | 0 | 0 | 0 | (55 | ) | 0 | (55 | ) | 0 | (55 | ) | |||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income (loss) | 0 | 0 | 0 | (89 | ) | 0 | (89 | ) | 35 | (54 | ) | |||||||||||||||||||||
Other comprehensive income, net of taxes | 0 | 0 | 708 | 0 | 0 | 708 | 3 | 711 | ||||||||||||||||||||||||
Total comprehensive income | 619 | 38 | 657 | |||||||||||||||||||||||||||||
Dividends to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (9 | ) | (9 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | 0 | 7 | 0 | 0 | 0 | 7 | 0 | 7 | ||||||||||||||||||||||||
Balances as of September 30, 2020 | $ | 1 | $ | 11,997 | $ | 4,141 | $ | 1,317 | $ | (2,700 | ) | $ | 14,756 | $ | 476 | $ | 15,232 | |||||||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of December 31, 2018 | $ | 1 | $ | 11,987 | $ | 2,044 | $ | 1,118 | $ | (2,700 | ) | $ | 12,450 | $ | 1,739 | $ | 14,189 | |||||||||||||||
Repurchase of subsidiary shares | 0 | 0 | 0 | 0 | 0 | 0 | (44 | ) | (44 | ) | ||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 360 | 0 | 360 | 146 | 506 | ||||||||||||||||||||||||
Other comprehensive income, net of taxes | 0 | 0 | 1,578 | 0 | 0 | 1,578 | 60 | 1,638 | ||||||||||||||||||||||||
Total comprehensive income | 1,938 | 206 | 2,144 | |||||||||||||||||||||||||||||
Dividends to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (149 | ) | (149 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | 0 | (1 | ) | 0 | 0 | 0 | (1 | ) | 6 | 5 | ||||||||||||||||||||||
Balances as of September 30, 2019 | $ | 1 | $ | 11,986 | $ | 3,622 | $ | 1,478 | $ | (2,700 | ) | $ | 14,387 | $ | 1,758 | $ | 16,145 | |||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of December 31, 2020 | $ | 1 | $ | 12,008 | $ | 4,425 | $ | 1,584 | $ | (2,700 | ) | $ | 15,318 | $ | 502 | $ | 15,820 | |||||||||||||||
Sale of business that included noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (657 | ) | (657 | ) | ||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 427 | 0 | 427 | 8 | 435 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | 0 | 0 | (591 | ) | 0 | 0 | (591 | ) | 147 | (444 | ) | |||||||||||||||||||||
Total comprehensive income (loss) | (164 | ) | 155 | (9 | ) | |||||||||||||||||||||||||||
Stock-based compensation expense and exercises and other | 0 | 10 | 0 | 0 | 0 | 10 | 0 | 10 | ||||||||||||||||||||||||
Balances as of June 30, 2021 | $ | 1 | $ | 12,018 | $ | 3,834 | $ | 2,011 | $ | (2,700 | ) | $ | 15,164 | $ | 0 | $ | 15,164 | |||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||||||||||||
Balances as of December 31, 2019 | $ | 1 | $ | 11,990 | $ | 3,433 | $ | 1,461 | $ | (2,700 | ) | $ | 14,185 | $ | 447 | $ | 14,632 | |||||||||||||||
Cumulative effect of change in accounting, net of taxes | 0 | 0 | 0 | (55 | ) | 0 | (55 | ) | 0 | (55 | ) | |||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income (loss) | 0 | 0 | 0 | (507 | ) | 0 | (507 | ) | 17 | (490 | ) | |||||||||||||||||||||
Other comprehensive income (loss), net of taxes | 0 | 0 | 1,014 | 0 | 0 | 1,014 | (10 | ) | 1,004 | |||||||||||||||||||||||
Total comprehensive income | 507 | 7 | 514 | |||||||||||||||||||||||||||||
Dividends to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (9 | ) | (9 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | 0 | 6 | 0 | 0 | 0 | 6 | 0 | 6 | ||||||||||||||||||||||||
Balances as of June 30, 2020 | $ | 1 | $ | 11,996 | $ | 4,447 | $ | 899 | $ | (2,700 | ) | $ | 14,643 | $ | 445 | $ | 15,088 | |||||||||||||||
Nine months ended | Six months ended June 30, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | (54 | ) | $ | 506 | $ | 435 | $ | (490 | ) | ||||||
Less (income) loss from discontinued operations, net of taxes | 519 | (42 | ) | (16 | ) | 485 | ||||||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||||||||||||
Amortization of fixed maturity securities discounts and premiums | (97 | ) | (93 | ) | (80 | ) | (58 | ) | ||||||||
Net investment gains | (382 | ) | (27 | ) | ||||||||||||
Net investment (gains) losses | (103 | ) | 6 | |||||||||||||
Charges assessed to policyholders | (479 | ) | (532 | ) | (317 | ) | (314 | ) | ||||||||
Acquisition costs deferred | (9 | ) | (22 | ) | (3 | ) | (3 | ) | ||||||||
Amortization of deferred acquisition costs and intangibles | 310 | 277 | 163 | 195 | ||||||||||||
Goodwill impairment | 5 | 0 | ||||||||||||||
Deferred income taxes | 166 | 106 | 132 | 16 | ||||||||||||
Derivative instruments, limited partnerships and other | 88 | 121 | (189 | ) | 196 | |||||||||||
Stock-based compensation expense | 22 | 17 | 25 | 19 | ||||||||||||
Change in certain assets and liabilities: | ||||||||||||||||
Accrued investment income and other assets | (183 | ) | (327 | ) | (69 | ) | (84 | ) | ||||||||
Insurance reserves | 1,034 | 906 | 507 | 674 | ||||||||||||
Current tax liabilities | 6 | 36 | (4 | ) | 2 | |||||||||||
Other liabilities, policy and contract claims and other policy-related balances | 769 | 348 | (60 | ) | 736 | |||||||||||
Cash from (used by) operating activities—discontinued operations | (263 | ) | 334 | |||||||||||||
Cash used by operating activities—discontinued operations | (192 | ) | (81 | ) | ||||||||||||
Net cash from operating activities | 1,452 | 1,608 | 229 | 1,299 | ||||||||||||
Cash flows used by investing activities: | ||||||||||||||||
Cash flows from (used by) investing activities: | ||||||||||||||||
Proceeds from maturities and repayments of investments: | ||||||||||||||||
Fixed maturity securities | 2,760 | 2,734 | 2,220 | 1,616 | ||||||||||||
Commercial mortgage loans | 479 | 395 | 392 | 302 | ||||||||||||
Other invested assets | 108 | 106 | 107 | 71 | ||||||||||||
Proceeds from sales of investments: | ||||||||||||||||
Fixed maturity and equity securities | 3,270 | 3,024 | 1,306 | 1,006 | ||||||||||||
Purchases and originations of investments: | ||||||||||||||||
Fixed maturity and equity securities | (7,179 | ) | (5,805 | ) | (2,868 | ) | (3,336 | ) | ||||||||
Commercial mortgage loans | (414 | ) | (682 | ) | (531 | ) | (271 | ) | ||||||||
Other invested assets | (318 | ) | (349 | ) | (240 | ) | (236 | ) | ||||||||
Short-term investments, net | (12 | ) | (16 | ) | (76 | ) | (17 | ) | ||||||||
Policy loans, net | 27 | 51 | 28 | 10 | ||||||||||||
Proceeds from sale of business, net of cash transferred | 270 | 0 | ||||||||||||||
Cash used by investing activities—discontinued operations | 0 | (6 | ) | (67 | ) | (32 | ) | |||||||||
Net cash used by investing activities | (1,279 | ) | (548 | ) | ||||||||||||
Net cash from (used by) investing activities | 541 | (887 | ) | |||||||||||||
Cash flows used by financing activities: | ||||||||||||||||
Deposits to universal life and investment contracts | 693 | 637 | 349 | 516 | ||||||||||||
Withdrawals from universal life and investment contracts | (1,408 | ) | (1,699 | ) | (1,143 | ) | (914 | ) | ||||||||
Redemption of non-recourse funding obligations | (315 | ) | 0 | 0 | (315 | ) | ||||||||||
Proceeds from issuance of long-term debt | 767 | 0 | ||||||||||||||
Repayment and repurchase of long-term debt | (493 | ) | (3 | ) | (484 | ) | (471 | ) | ||||||||
Repurchase of subsidiary shares | 0 | (22 | ) | |||||||||||||
Dividends paid to noncontrolling interests | (9 | ) | (55 | ) | ||||||||||||
Other, net | 31 | (24 | ) | 65 | 49 | |||||||||||
Cash used by financing activities—discontinued operations | 0 | (76 | ) | 0 | (9 | ) | ||||||||||
Net cash used by financing activities | (734 | ) | (1,242 | ) | (1,213 | ) | (1,144 | ) | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $0 and $8 related to discontinued operations) | 0 | (4 | ) | |||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $(1) and $(6) related to discontinued operations) | 1 | (12 | ) | |||||||||||||
Net change in cash, cash equivalents and restricted cash | (561 | ) | (186 | ) | (442 | ) | (744 | ) | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | 3,341 | 2,177 | 2,656 | 3,341 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | 2,780 | 1,991 | 2,214 | 2,597 | ||||||||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of period | 0 | 362 | 0 | 74 | ||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period | $ | 2,780 | $ | 1,629 | $ | 2,214 | $ | 2,523 | ||||||||
we issued a secured promissory note to AXA S.A. (“AXA”) that is due in September 2022. On March 3, 2021, we repaid the first installment payment to AXA and a portion of the second installment from cash proceeds received from the Genworth Australia sale. Over the next year, we expect to pay AXA approximately $10 million primarily consisting of interest on the remaining promissory note, assuming we do not make any additional prepayments, and a one-time payment associated with a tax gross up on underwriting losses related to a product sold by a distributor in our former lifestyle protection insurance business. See note 13 for additional details related to the sale of our former lifestyle protection insurance business and amounts recorded related to discontinued operations. Genworth Holdings received intercompany cash tax payments from its subsidiaries during the six months ended June 30, 2021 generated primarily from taxable income. Additional intercompany cash tax payments are expected in future periods. Until the secured promissory note to AXA is paid, annual dividends above $50 million from Enact Holdings, Inc. (“Enact Holdings”), formerly known as Genworth Mortgage Holdings, Inc., our wholly-owned U.S. mortgage insurance subsidiary, are subject to mandatory prepayment conditions. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||
(Amounts in millions, except per share amounts) | 2020 | 20 19 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Weighted-average shares used in basic earnings per share calculations | 505.6 | 503.5 | 505.1 | 502.7 | 507.0 | 505.4 | 506.5 | 504.8 | ||||||||||||||||||||||||
Potentially dilutive securities: | ||||||||||||||||||||||||||||||||
Stock options, restricted stock units and stock appreciation rights | 5.9 | 7.7 | 6.1 | 6.8 | 8.0 | 7.1 | 7.9 | 0 | ||||||||||||||||||||||||
Weighted-average shares used in diluted earnings per share calculations | 511.5 | 511.2 | 511.2 | 509.5 | ||||||||||||||||||||||||||||
Weighted-average shares used in diluted earnings per share calculations (1) | 515.0 | 512.5 | 514.4 | 504.8 | ||||||||||||||||||||||||||||
Income from continuing operations: | ||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 435 | $ | 138 | $ | 465 | $ | 464 | ||||||||||||||||||||||||
Income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 245 | $ | 55 | $ | 419 | $ | (5 | ) | |||||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 35 | 45 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 417 | $ | 128 | $ | 430 | $ | 419 | ||||||||||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 245 | $ | 55 | $ | 419 | $ | (5 | ) | |||||||||||||||||||||||
Basic per share | $ | 0.83 | $ | 0.25 | $ | 0.85 | $ | 0.83 | $ | 0.48 | $ | 0.11 | $ | 0.83 | $ | (0.01 | ) | |||||||||||||||
Diluted per share | $ | 0.82 | $ | 0.25 | $ | 0.84 | $ | 0.82 | $ | 0.47 | $ | 0.11 | $ | 0.82 | $ | (0.01 | ) | |||||||||||||||
Income (loss) from discontinued operations: | ||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | $ | 1 | $ | (80 | ) | $ | (519 | ) | $ | 42 | $ | (5 | ) | $ | (473 | ) | $ | 16 | $ | (485 | ) | |||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 30 | 0 | 101 | 0 | 23 | 8 | 17 | ||||||||||||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | $ | 1 | $ | (110 | ) | $ | (519 | ) | $ | (59 | ) | $ | (5 | ) | $ | (496 | ) | $ | 8 | $ | (502 | ) | ||||||||||
Basic per share | $ | 0 | $ | (0.22 | ) | $ | (1.03 | ) | $ | (0.12 | ) | $ | (0.01 | ) | $ | (0.98 | ) | $ | 0.02 | $ | (0.99 | ) | ||||||||||
Diluted per share | $ | 0 | $ | (0.21 | ) | $ | (1.02 | ) | $ | (0.12 | ) | $ | (0.01 | ) | $ | (0.97 | ) | $ | 0.02 | $ | (0.99 | ) | ||||||||||
Net income (loss): | ||||||||||||||||||||||||||||||||
Income from continuing operations | $ | 435 | $ | 138 | $ | 465 | $ | 464 | ||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 245 | $ | 55 | $ | 419 | $ | (5 | ) | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 1 | (80 | ) | (519 | ) | 42 | (5 | ) | (473 | ) | 16 | (485 | ) | |||||||||||||||||||
Net income (loss) | 436 | 58 | (54 | ) | 506 | 240 | (418 | ) | 435 | (490 | ) | |||||||||||||||||||||
Less: net income attributable to noncontrolling interests | 18 | 40 | 35 | 146 | 0 | 23 | 8 | 17 | ||||||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 418 | $ | 18 | $ | (89 | ) | $ | 360 | $ | 240 | $ | (441 | ) | $ | 427 | $ | (507 | ) | |||||||||||||
Basic per share (1) | $ | 0.83 | $ | 0.04 | $ | (0.18 | ) | $ | 0.72 | |||||||||||||||||||||||
Basic per share (2) | $ | 0.47 | $ | (0.87 | ) | $ | 0.84 | $ | (1.00 | ) | ||||||||||||||||||||||
Diluted per share (1) | $ | 0.82 | $ | 0.04 | $ | (0.17 | ) | $ | 0.71 | |||||||||||||||||||||||
Diluted per share (2) | $ | 0.47 | $ | (0.86 | ) | $ | 0.83 | $ | (1.00 | ) | ||||||||||||||||||||||
(1) | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 6.3 million would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, dilutive potential weighted-average common shares outstanding would have been 511.1 million. |
(2) | May not total due to whole number calculation. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Fixed maturity securities—taxable | $ | 608 | $ | 594 | $ | 1,207 | $ | 1,205 | ||||||||
Fixed maturity securities—non-taxable | 1 | 1 | 3 | 3 | ||||||||||||
Equity securities | 2 | 2 | 5 | 4 | ||||||||||||
Commercial mortgage loans | 103 | 84 | 181 | 169 | ||||||||||||
Policy loans | 40 | 49 | 90 | 98 | ||||||||||||
Other invested assets | 112 | 66 | 201 | 113 | ||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 0 | 4 | 0 | 14 | ||||||||||||
Gross investment income before expenses and fees | 866 | 800 | 1,687 | 1,606 | ||||||||||||
Expenses and fees | (22 | ) | (21 | ) | (42 | ) | (45 | ) | ||||||||
Net investment income | $ | 844 | $ | 779 | $ | 1,645 | $ | 1,561 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Fixed maturity securities—taxable | $ | 632 | $ | 631 | $ | 1,855 | $ | 1,878 | ||||||||
Fixed maturity securities—non-taxable | 2 | 2 | 5 | 6 | ||||||||||||
Equity securities | 3 | 4 | 7 | 13 | ||||||||||||
Commercial mortgage loans | 82 | 87 | 251 | 254 | ||||||||||||
Policy loans | 51 | 47 | 149 | 138 | ||||||||||||
Other invested assets | 79 | 62 | 192 | 180 | ||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 2 | 8 | 17 | 30 | ||||||||||||
Gross investment income before expenses and fees | 851 | 841 | 2,476 | 2,499 | ||||||||||||
Expenses and fees | (24 | ) | (25 | ) | (70 | ) | (73 | ) | ||||||||
Net investment income | $ | 827 | $ | 816 | $ | 2,406 | $ | 2,426 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Available-for-sale fixed maturity securities: | ||||||||||||||||
Realized gains | $ | 332 | $ | 19 | $ | 465 | $ | 93 | ||||||||
Realized losses | (2 | ) | (3 | ) | (8 | ) | (30 | ) | ||||||||
Net realized gains (losses) on available-for-sale fixed maturity securities | 330 | 16 | 457 | 63 | ||||||||||||
Impairments: | ||||||||||||||||
Total other-than-temporary impairments | 0 | 0 | 0 | 0 | ||||||||||||
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||||||||||
Net other-than-temporary impairments | 0 | 0 | 0 | 0 | ||||||||||||
Net change in allowance for credit losses on available-for-sale fixed maturity securities | 2 | 0 | (5 | ) | 0 | |||||||||||
Write-down of available-for-sale fixed maturity securities (1) | (4 | ) | 0 | (4 | ) | 0 | ||||||||||
Net realized gains (losses) on equity securities sold | (3 | ) | 6 | (3 | ) | 9 | ||||||||||
Net unrealized gains (losses) on equity securities still held | 3 | (4 | ) | (7 | ) | 13 | ||||||||||
Limited partnerships | 31 | 6 | 28 | 10 | ||||||||||||
Commercial mortgage loans | (3 | ) | (1 | ) | (2 | ) | (1 | ) | ||||||||
Derivative instruments (2) | 22 | (29 | ) | (73 | ) | (71 | ) | |||||||||
Other | (3 | ) | 4 | (9 | ) | 4 | ||||||||||
Net investment gains (losses) | $ | 375 | $ | (2 | ) | $ | 382 | $ | 27 | |||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Available-for-sale fixed maturity securities: | ||||||||||||||||
Realized gains | $ | 5 | $ | 103 | $ | 12 | $ | 105 | ||||||||
Realized losses | (4 | ) | (5 | ) | (7 | ) | (5 | ) | ||||||||
Net realized gains (losses) on available-for-sale fixed maturity securities | 1 | 98 | 5 | 100 | ||||||||||||
Net change in allowance for credit losses on available-for-sale fixed maturity securities | (4 | ) | (7 | ) | (6 | ) | (7 | ) | ||||||||
Write-down of available-for-sale fixed maturity securities (1) | 0 | 0 | (1 | ) | 0 | |||||||||||
Net realized gains (losses) on equity securities sold | (2 | ) | 0 | (7 | ) | 0 | ||||||||||
Net unrealized gains (losses) on equity securities still held | 6 | 5 | (2 | ) | (7 | ) | ||||||||||
Limited partnerships | 65 | 37 | 102 | (3 | ) | |||||||||||
Commercial mortgage loans | (1 | ) | 1 | (2 | ) | 1 | ||||||||||
Derivative instruments (2) | 4 | (36 | ) | 12 | (84 | ) | ||||||||||
Other | 1 | (5 | ) | 2 | (6 | ) | ||||||||||
Net investment gains (losses) | $ | 70 | $ | 93 | $ | 103 | $ | (6 | ) | |||||||
(1) | Represents write-down of securities deemed uncollectible or that we intend to sell or will be required to sell prior to recovery of the amortized cost basis. |
(2) | See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Three months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Beginning balance | Increase from securities without allowance in periods | Increase (decrease) from securities with in periods | Securities sold | Decrease due in requirement to sell | Write-offs | Recoveries | Ending balance | Beginning balance | Increase from securities without allowance in previous periods | Increase (decrease) from securities with allowance in previous periods | Securities sold | Decrease due to change in intent or requirement to sell | Write-offs | Recoveries | Ending balance | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate | $ | 4 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 3 | $ | 0 | $ | 4 | $ | (7 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||
Commercial mortgage-backed | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 7 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 5 | $ | 3 | $ | 0 | $ | 4 | $ | (7 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||
(Amounts in millions) | Beginning balance | Increase from securities without allowance in previous periods | Increase (decrease) from securities with in periods | Securities sold | Decrease due in requirement to sell | Write-offs | Recoveries | Ending balance | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
Non-U.S. corporate | $ | 0 | $ | 4 | $ | (2 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | |||||||||||||||
Commercial mortgage-backed | 0 | 3 | 0 | 0 | 0 | 0 | 0 | 3 | ||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 0 | $ | 7 | $ | (2 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 5 | |||||||||||||||
(Amounts in millions) | Three months ended September 30, 2019 | Nine months ended September 30, 2019 | ||||||
Beginning balance | $ | 23 | $ | 24 | ||||
Reductions: | ||||||||
Securities sold, paid down or disposed | 0 | (1 | ) | |||||
Ending balance | $ | 23 | $ | 23 | ||||
(Amounts in millions) | Beginning balance | Increase from securities without allowance in previous periods | Increase (decrease) from securities with allowance in previous periods | Securities sold | Decrease due to change in intent or requirement to sell | Write- offs | Recoveries | Ending balance | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
Non-U.S. corporate | $ | 0 | $ | 4 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 4 | ||||||||||||||||
Commercial mortgage-backed | 0 | 3 | 0 | 0 | 0 | 0 | 0 | 3 | ||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 0 | $ | 7 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 7 | ||||||||||||||||
(Amounts in millions) | Beginning balance | Increase from securities without allowance in previous periods | Increase (decrease) from securities with allowance in previous periods | Securities sold | Decrease due to change in intent or requirement to sell | Write- offs | Recoveries | Ending balance | ||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
Non-U.S. corporate | $ | 1 | $ | 0 | $ | 6 | $ | (7 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
Commercial mortgage-backed | 3 | 0 | 0 | 0 | 0 | (3 | ) | 0 | 0 | |||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 4 | $ | 0 | $ | 6 | $ | (7 | ) | $ | 0 | $ | (3 | ) | $ | 0 | $ | 0 | ||||||||||||||
(Amounts in millions) | September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | ||||||||||||
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses (1) | $ | 9,218 | $ | 6,676 | $ | 8,538 | $ | 10,159 | ||||||||
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses (1) | (12 | ) | 0 | 0 | (7 | ) | ||||||||||
Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves | (6,998 | ) | (4,789 | ) | ||||||||||||
Adjustments to DAC, present value of future profits, sales inducements, benefit reserves and policyholder contract balances | (6,169 | ) | (7,302 | ) | ||||||||||||
Income taxes, net | (473 | ) | (406 | ) | (504 | ) | (611 | ) | ||||||||
Net unrealized investment gains (losses) | 1,735 | 1,481 | 1,865 | 2,239 | ||||||||||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | 24 | 25 | 0 | 25 | ||||||||||||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. | $ | 1,711 | $ | 1,456 | $ | 1,865 | $ | 2,214 | ||||||||
(1) | Excludes foreign exchange. |
As of or for the three months ended September 30, | ||||||||||||||||
As of or for the three months ended June 30, | ||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2021 | 2020 | ||||||||||||
Beginning balance | $ | 1,811 | $ | 1,305 | $ | 1,919 | $ | 1,140 | ||||||||
Unrealized gains (losses) arising during the period: | ||||||||||||||||
Unrealized gains (losses) on fixed maturity securities | 781 | 1,607 | 1,774 | 3,911 | ||||||||||||
Adjustment to deferred acquisition costs | (9 | ) | (8 | ) | 42 | (111 | ) | |||||||||
Adjustment to present value of future profits | 2 | 1 | 1 | 5 | ||||||||||||
Adjustment to sales inducements | (5 | ) | (4 | ) | 2 | (34 | ) | |||||||||
Adjustment to benefit reserves | (566 | ) | (1,108 | ) | (1,887 | ) | (2,802 | ) | ||||||||
Provision for income taxes | (42 | ) | (104 | ) | 14 | (207 | ) | |||||||||
Change in unrealized gains (losses) on investment securities | 161 | 384 | (54 | ) | 762 | |||||||||||
Reclassification adjustments to net investment (gains) losses, net of taxes of $70 and $4 | (261 | ) | (13 | ) | ||||||||||||
Reclassification adjustments to net investment (gains) losses, net of taxes of $0 | 0 | (88 | ) | |||||||||||||
Change in net unrealized investment gains (losses) | (100 | ) | 371 | (54 | ) | 674 | ||||||||||
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | 0 | 1 | 0 | 3 | ||||||||||||
Ending balance | $ | 1,711 | $ | 1,675 | $ | 1,865 | $ | 1,811 | ||||||||
As of or for the nine months ended September 30, | ||||||||||||||||
As of or for the six months ended June 30, | ||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2021 | 2020 | ||||||||||||
Beginning balance | $ | 1,456 | $ | 595 | $ | 2,214 | $ | 1,456 | ||||||||
Unrealized gains (losses) arising during the period: | ||||||||||||||||
Unrealized gains (losses) on fixed maturity securities | 2,980 | 5,563 | (1,609 | ) | 2,199 | |||||||||||
Adjustment to deferred acquisition costs | 48 | (1,049 | ) | (132 | ) | 57 | ||||||||||
Adjustment to present value of future profits | 6 | (54 | ) | 2 | 4 | |||||||||||
Adjustment to sales inducements | (3 | ) | (35 | ) | 5 | 2 | ||||||||||
Adjustment to benefit reserves | (2,260 | ) | (2,908 | ) | 1,258 | (1,694 | ) | |||||||||
Provision for income taxes | (162 | ) | (331 | ) | 106 | (120 | ) | |||||||||
Change in unrealized gains (losses) on investment securities | 609 | 1,186 | (370 | ) | 448 | |||||||||||
Reclassification adjustments to net investment (gains) losses, net of taxes of $95 and $16 | (355 | ) | (59 | ) | ||||||||||||
Reclassification adjustments to net investment (gains) losses, net of taxes of $1 and $25 | (4 | ) | (94 | ) | ||||||||||||
Change in net unrealized investment gains (losses) | 254 | 1,127 | (374 | ) | 354 | |||||||||||
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | (1 | ) | 47 | (25 | ) | (1 | ) | |||||||||
Ending balance | $ | 1,711 | $ | 1,675 | $ | 1,865 | $ | 1,811 | ||||||||
(Amounts in millions) | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | |||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,350 | $ | 1,135 | $ | (1 | ) | $ | 0 | $ | 4,484 | |||||||||
State and political subdivisions | 2,876 | 496 | (1 | ) | 0 | 3,371 | ||||||||||||||
Non-U.S. government | 712 | 94 | (4 | ) | 0 | 802 | ||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | 4,276 | 820 | (5 | ) | 0 | 5,091 | ||||||||||||||
Energy | 2,573 | 388 | (9 | ) | 0 | 2,952 | ||||||||||||||
Finance and insurance | 7,895 | 1,107 | (13 | ) | 0 | 8,989 | ||||||||||||||
Consumer—non-cyclical | 5,128 | 1,100 | (4 | ) | 0 | 6,224 | ||||||||||||||
Technology and communications | 3,244 | 515 | (5 | ) | 0 | 3,754 | ||||||||||||||
Industrial | 1,377 | 196 | (1 | ) | 0 | 1,572 | ||||||||||||||
Capital goods | 2,424 | 447 | (1 | ) | 0 | 2,870 | ||||||||||||||
Consumer—cyclical | 1,758 | 240 | (4 | ) | 0 | 1,994 | ||||||||||||||
Transportation | 1,156 | 253 | 0 | 0 | 1,409 | |||||||||||||||
Other | 394 | 40 | 0 | 0 | 434 | |||||||||||||||
Total U.S. corporate | 30,225 | 5,106 | (42 | ) | 0 | 35,289 | ||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | 873 | 73 | (1 | ) | 0 | 945 | ||||||||||||||
Energy | 1,189 | 210 | 0 | 0 | 1,399 | |||||||||||||||
Finance and insurance | 2,108 | 298 | (6 | ) | 0 | 2,400 | ||||||||||||||
Consumer—non-cyclical | 659 | 87 | (1 | ) | 0 | 745 | ||||||||||||||
Technology and communications | 1,098 | 186 | 0 | 0 | 1,284 | |||||||||||||||
Industrial | 1,003 | 138 | (1 | ) | 0 | 1,140 | ||||||||||||||
Capital goods | 574 | 69 | (1 | ) | 0 | 642 | ||||||||||||||
Consumer—cyclical | 325 | 29 | (1 | ) | 0 | 353 | ||||||||||||||
Transportation | 467 | 74 | 0 | 0 | 541 | |||||||||||||||
Other | 1,105 | 193 | (3 | ) | 0 | 1,295 | ||||||||||||||
Total non-U.S. corporate | 9,401 | 1,357 | (14 | ) | 0 | 10,744 | ||||||||||||||
Residential mortgage-backed | 1,524 | 167 | 0 | 0 | 1,691 | |||||||||||||||
Commercial mortgage-backed | 2,538 | 199 | (3 | ) | 0 | 2,734 | ||||||||||||||
Other asset-backed | 2,485 | 50 | (1 | ) | 0 | 2,534 | ||||||||||||||
Total available-for-sale fixed maturity securities | $ | 53,111 | $ | 8,604 | $ | (66 | ) | $ | 0 | $ | 61,649 | |||||||||
(Amounts in millions) | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | ||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,318 | $ | 1,474 | $ | 0 | $ | 0 | $ | 4,792 | $ | 3,401 | $ | 1,404 | $ | 0 | $ | 0 | $ | 4,805 | ||||||||||||||||||||
State and political subdivisions | 2,591 | 525 | (1 | ) | 0 | 3,115 | 2,622 | 544 | (1 | ) | 0 | 3,165 | ||||||||||||||||||||||||||||
Non-U.S. government | 1,276 | 126 | (7 | ) | 0 | 1,395 | 728 | 130 | (4 | ) | 0 | 854 | ||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 4,294 | 924 | (1 | ) | 0 | 5,217 | 4,226 | 970 | (2 | ) | 0 | 5,194 | ||||||||||||||||||||||||||||
Energy | 2,581 | 238 | (54 | ) | 0 | 2,765 | 2,532 | 367 | (16 | ) | 0 | 2,883 | ||||||||||||||||||||||||||||
Finance and insurance | 7,611 | 1,135 | (11 | ) | 0 | 8,735 | 7,798 | 1,306 | (2 | ) | 0 | 9,102 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 5,160 | 1,210 | (2 | ) | 0 | 6,368 | 5,115 | 1,323 | (1 | ) | 0 | 6,437 | ||||||||||||||||||||||||||||
Technology and communications | 2,993 | 537 | (3 | ) | 0 | 3,527 | 3,142 | 619 | 0 | 0 | 3,761 | |||||||||||||||||||||||||||||
Industrial | 1,363 | 189 | (1 | ) | 0 | 1,551 | 1,370 | 232 | 0 | 0 | 1,602 | |||||||||||||||||||||||||||||
Capital goods | 2,558 | 503 | (4 | ) | 0 | 3,057 | 2,456 | 535 | 0 | 0 | 2,991 | |||||||||||||||||||||||||||||
Consumer—cyclical | 1,794 | 252 | (2 | ) | 0 | 2,044 | 1,663 | 284 | 0 | 0 | 1,947 | |||||||||||||||||||||||||||||
Transportation | 1,325 | 271 | (15 | ) | 0 | 1,581 | 1,198 | 304 | (2 | ) | 0 | 1,500 | ||||||||||||||||||||||||||||
Other | 346 | 43 | 0 | 0 | 389 | 395 | 45 | 0 | 0 | 440 | ||||||||||||||||||||||||||||||
Total U.S. corporate | 30,025 | 5,302 | (93 | ) | 0 | 35,234 | 29,895 | 5,985 | (23 | ) | 0 | 35,857 | ||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 860 | 75 | 0 | 0 | 935 | 838 | 84 | 0 | 0 | 922 | ||||||||||||||||||||||||||||||
Energy | 1,192 | 163 | (7 | ) | 0 | 1,348 | 1,172 | 209 | (1 | ) | 0 | 1,380 | ||||||||||||||||||||||||||||
Finance and insurance | 2,319 | 312 | (12 | ) | (1 | ) | 2,618 | 2,130 | 353 | (6 | ) | (1 | ) | 2,476 | ||||||||||||||||||||||||||
Consumer—non-cyclical | 712 | 95 | (1 | ) | 0 | 806 | 662 | 112 | (1 | ) | 0 | 773 | ||||||||||||||||||||||||||||
Technology and communications | 1,066 | 190 | 0 | 0 | 1,256 | 1,062 | 229 | 0 | 0 | 1,291 | ||||||||||||||||||||||||||||||
Industrial | 935 | 134 | (1 | ) | 0 | 1,068 | 969 | 159 | 0 | 0 | 1,128 | |||||||||||||||||||||||||||||
Capital goods | 571 | 61 | (6 | ) | 0 | 626 | 510 | 67 | (1 | ) | 0 | 576 | ||||||||||||||||||||||||||||
Consumer—cyclical | 400 | 38 | (2 | ) | 0 | 436 | 331 | 41 | (1 | ) | 0 | 371 | ||||||||||||||||||||||||||||
Transportation | 571 | 87 | (9 | ) | (1 | ) | 648 | 483 | 88 | (1 | ) | 0 | 570 | |||||||||||||||||||||||||||
Other | 1,562 | 241 | (1 | ) | 0 | 1,802 | 1,088 | 236 | 0 | 0 | 1,324 | |||||||||||||||||||||||||||||
Total non-U.S. corporate | 10,188 | 1,396 | (39 | ) | (2 | ) | 11,543 | 9,245 | 1,578 | (11 | ) | (1 | ) | 10,811 | ||||||||||||||||||||||||||
Residential mortgage-backed | 1,825 | 250 | 0 | 0 | 2,075 | 1,698 | 211 | 0 | 0 | 1,909 | ||||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,775 | 228 | (24 | ) | (3 | ) | 2,976 | 2,759 | 231 | (13 | ) | (3 | ) | 2,974 | ||||||||||||||||||||||||||
Other asset-backed | 3,254 | 48 | (16 | ) | 0 | 3,286 | 3,069 | 55 | (4 | ) | 0 | 3,120 | ||||||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 55,252 | $ | 9,349 | $ | (180 | ) | $ | (5 | ) | $ | 64,416 | $ | 53,417 | $ | 10,138 | $ | (56 | ) | $ | (4 | ) | $ | 63,495 | ||||||||||||||||
Gross unrealized gains | Gross unrealized losses | |||||||||||||||||||||||
(Amounts in millions) | Amortized cost or cost | Not other-than- temporarily impaired | Other- t han-temporarily impaired | Not other-than- temporarily impaired | Other- t han-temporarily impaired | Fair value | ||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 4,073 | $ | 952 | $ | 0 | $ | 0 | $ | 0 | $ | 5,025 | ||||||||||||
State and political subdivisions | 2,394 | 355 | 0 | (2 | ) | 0 | 2,747 | |||||||||||||||||
Non-U.S. government | 1,235 | 117 | 0 | (2 | ) | 0 | 1,350 | |||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||
Utilities | 4,322 | 675 | 0 | 0 | 0 | 4,997 | ||||||||||||||||||
Energy | 2,404 | 303 | 0 | (8 | ) | 0 | 2,699 | |||||||||||||||||
Finance and insurance | 6,977 | 798 | 0 | (1 | ) | 0 | 7,774 | |||||||||||||||||
Consumer—non-cyclical | 4,909 | 796 | 0 | (4 | ) | 0 | 5,701 | |||||||||||||||||
Technology and communications | 2,883 | 363 | 0 | (1 | ) | 0 | 3,245 | |||||||||||||||||
Industrial | 1,271 | 125 | 0 | 0 | 0 | 1,396 | ||||||||||||||||||
Capital goods | 2,345 | 367 | 0 | (1 | ) | 0 | 2,711 | |||||||||||||||||
Consumer—cyclical | 1,590 | 172 | 0 | (2 | ) | 0 | 1,760 | |||||||||||||||||
Transportation | 1,320 | 187 | 0 | (1 | ) | 0 | 1,506 | |||||||||||||||||
Other | 292 | 30 | 0 | 0 | 0 | 322 | ||||||||||||||||||
Total U.S. corporate | 28,313 | 3,816 | 0 | (18 | ) | 0 | 32,111 | |||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||
Utilities | 779 | 50 | 0 | 0 | 0 | 829 | ||||||||||||||||||
Energy | 1,140 | 179 | 0 | 0 | 0 | 1,319 | ||||||||||||||||||
Finance and insurance | 2,087 | 232 | 0 | 0 | 0 | 2,319 | ||||||||||||||||||
Consumer—non-cyclical | 631 | 55 | 0 | (2 | ) | �� | 0 | 684 | ||||||||||||||||
Technology and communications | 1,010 | 128 | 0 | 0 | 0 | 1,138 | ||||||||||||||||||
Industrial | 896 | 92 | 0 | 0 | 0 | 988 | ||||||||||||||||||
Capital goods | 565 | 40 | 0 | 0 | 0 | 605 | ||||||||||||||||||
Consumer—cyclical | 373 | 24 | 0 | 0 | 0 | 397 | ||||||||||||||||||
Transportation | 557 | 73 | 0 | (1 | ) | 0 | 629 | |||||||||||||||||
Other | 1,431 | 188 | 0 | (2 | ) | 0 | 1,617 | |||||||||||||||||
Total non-U.S. corporate | 9,469 | 1,061 | 0 | (5 | ) | 0 | 10,525 | |||||||||||||||||
Residential mortgage-backed | 2,057 | 199 | 15 | (1 | ) | 0 | 2,270 | |||||||||||||||||
Commercial mortgage-backed | 2,897 | 137 | 0 | (8 | ) | 0 | 3,026 | |||||||||||||||||
Other asset-backed | 3,262 | 30 | 0 | (7 | ) | 0 | 3,285 | |||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 53,700 | $ | 6,667 | $ | 15 | $ | (43 | ) | $ | 0 | $ | 60,339 | |||||||||||
Less than 12 months | 12 months or more | Total | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Securities | Description of Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 30 | $ | (1 | ) | 5 | $ | 0 | $ | 0 | 0 | $ | 30 | $ | (1 | ) | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 66 | $ | (1 | ) | 10 | $ | 0 | $ | 0 | — | $ | 66 | $ | (1 | ) | 10 | 100 | (1 | ) | 32 | 0 | 0 | 0 | 100 | (1 | ) | 32 | ||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government | 103 | (7 | ) | 16 | 0 | 0 | 0 | 103 | (7 | ) | 16 | 112 | (3 | ) | 22 | 18 | (1 | ) | 1 | 130 | (4 | ) | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. corporate | 1,475 | (82 | ) | 228 | 95 | (11 | ) | 10 | 1,570 | (93 | ) | 238 | 1,482 | (37 | ) | 141 | 59 | (5 | ) | 8 | 1,541 | (42 | ) | 149 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate | 589 | (27 | ) | 106 | 7 | (1 | ) | 2 | 596 | (28 | ) | 108 | 434 | (12 | ) | 51 | 35 | (2 | ) | 7 | 469 | (14 | ) | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 430 | (22 | ) | 68 | 1 | (1 | ) | 1 | 431 | (23 | ) | 69 | 48 | (1 | ) | 6 | 53 | (2 | ) | 9 | 101 | (3 | ) | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed | 675 | (10 | ) | 159 | 308 | (6 | ) | 67 | 983 | (16 | ) | 226 | 280 | (1 | ) | 55 | 0 | 0 | 0 | 280 | (1 | ) | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 3,338 | $ | (149 | ) | 587 | $ | 411 | $ | (19 | ) | 80 | $ | 3,749 | $ | (168 | ) | 667 | $ | 2,486 | $ | (56 | ) | 312 | $ | 165 | $ | (10 | ) | 25 | $ | 2,651 | $ | (66 | ) | 337 | ||||||||||||||||||||||||||||||||||||
% Below cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
<20% Below cost | $ | 3,264 | $ | (122 | ) | 569 | $ | 401 | $ | (16 | ) | 78 | $ | 3,665 | $ | (138 | ) | 647 | $ | 2,479 | $ | (53 | ) | 311 | $ | 160 | $ | (8 | ) | 24 | $ | 2,639 | $ | (61 | ) | 335 | ||||||||||||||||||||||||||||||||||||
20%-50% Below cost | 74 | (27 | ) | 18 | 10 | (3 | ) | 2 | 84 | (30 | ) | 20 | 7 | (3 | ) | 1 | 5 | (2 | ) | 1 | 12 | (5 | ) | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 3,338 | $ | (149 | ) | 587 | $ | 411 | $ | (19 | ) | 80 | $ | 3,749 | $ | (168 | ) | 667 | $ | 2,486 | $ | (56 | ) | 312 | $ | 165 | $ | (10 | ) | 25 | $ | 2,651 | $ | (66 | ) | 337 | ||||||||||||||||||||||||||||||||||||
Investment grade | $ | 2,631 | $ | (85 | ) | 472 | $ | 338 | $ | (9 | ) | 70 | $ | 2,969 | $ | (94 | ) | 542 | $ | 2,379 | $ | (50 | ) | 293 | $ | 82 | $ | (4 | ) | 15 | $ | 2,461 | $ | (54 | ) | 308 | ||||||||||||||||||||||||||||||||||||
Below investment grade | 707 | (64 | ) | 115 | 73 | (10 | ) | 10 | 780 | (74 | ) | 125 | 107 | (6 | ) | 19 | 83 | (6 | ) | 10 | 190 | (12 | ) | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 3,338 | $ | (149 | ) | 587 | $ | 411 | $ | (19 | ) | 80 | $ | 3,749 | $ | (168 | ) | 667 | $ | 2,486 | $ | (56 | ) | 312 | $ | 165 | $ | (10 | ) | 25 | $ | 2,651 | $ | (66 | ) | 337 | ||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Securities | Description of Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | $ | 24 | $ | (1 | ) | 6 | $ | 0 | $ | 0 | 0 | $ | 24 | $ | (1 | ) | 6 | $ | 82 | $ | (5 | ) | 17 | $ | 0 | $ | 0 | 0 | $ | 82 | $ | (5 | ) | 17 | ||||||||||||||||||||||||||||||||||||||
Energy | 557 | (45 | ) | 84 | 52 | (9 | ) | 6 | 609 | (54 | ) | 90 | 88 | (4 | ) | 10 | 59 | (5 | ) | 8 | 147 | (9 | ) | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||
Finance and insurance | 373 | (11 | ) | 42 | 0 | 0 | 0 | 373 | (11 | ) | 42 | 540 | (13 | ) | 42 | 0 | 0 | 0 | 540 | (13 | ) | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 93 | (2 | ) | 12 | 0 | 0 | 0 | 93 | (2 | ) | 12 | 202 | (4 | ) | 19 | 0 | 0 | 0 | 202 | (4 | ) | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Technology and communications | 100 | (3 | ) | 12 | 0 | 0 | 0 | 100 | (3 | ) | 12 | 219 | (5 | ) | 22 | 0 | 0 | 0 | 219 | (5 | ) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | 72 | (1 | ) | 6 | 0 | 0 | 0 | 72 | (1 | ) | 6 | 67 | (1 | ) | 6 | 0 | 0 | 0 | 67 | (1 | ) | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods | 33 | (3 | ) | 7 | 14 | (1 | ) | 1 | 47 | (4 | ) | 8 | 95 | (1 | ) | 8 | 0 | 0 | 0 | 95 | (1 | ) | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 86 | (1 | ) | 21 | 29 | (1 | ) | 3 | 115 | (2 | ) | 24 | 189 | (4 | ) | 17 | 0 | 0 | 0 | 189 | (4 | ) | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||
Transportation | 137 | (15 | ) | 38 | 0 | 0 | 0 | 137 | (15 | ) | 38 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal, U.S. corporate securities | 1,475 | (82 | ) | 228 | 95 | (11 | ) | 10 | 1,570 | (93 | ) | 238 | 1,482 | (37 | ) | 141 | 59 | (5 | ) | 8 | 1,541 | (42 | ) | 149 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | 179 | (7 | ) | 18 | 0 | 0 | 0 | 179 | (7 | ) | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 42 | (1 | ) | 6 | 0 | 0 | 0 | 42 | (1 | ) | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance and insurance | 196 | (5 | ) | 34 | 0 | 0 | 0 | 196 | (5 | ) | 34 | 271 | (6 | ) | 28 | 0 | 0 | 0 | 271 | (6 | ) | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 0 | 0 | 0 | 7 | (1 | ) | 2 | 7 | (1 | ) | 2 | 0 | 0 | 0 | 6 | (1 | ) | 1 | 6 | (1 | ) | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | 29 | (1 | ) | 4 | 0 | 0 | 0 | 29 | (1 | ) | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Technology and Industrial | 43 | (1 | ) | 4 | 0 | 0 | 0 | 43 | (1 | ) | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods | 59 | (6 | ) | 11 | 0 | 0 | 0 | 59 | (6 | ) | 11 | 0 | 0 | 0 | 29 | (1 | ) | 6 | 29 | (1 | ) | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 22 | (2 | ) | 11 | 0 | 0 | 0 | 22 | (2 | ) | 11 | 32 | (1 | ) | 8 | 0 | 0 | 0 | 32 | (1 | ) | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Transportation | 59 | (5 | ) | 15 | 0 | 0 | 0 | 59 | (5 | ) | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 45 | (1 | ) | 13 | 0 | 0 | 0 | 45 | (1 | ) | 13 | 46 | (3 | ) | 5 | 0 | 0 | 0 | 46 | (3 | ) | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities | 589 | (27 | ) | 106 | 7 | (1 | ) | 2 | 596 | (28 | ) | 108 | 434 | (12 | ) | 51 | 35 | (2 | ) | 7 | 469 | (14 | ) | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position | $ | 2,064 | $ | (109 | ) | 334 | $ | 102 | $ | (12 | ) | 12 | $ | 2,166 | $ | (121 | ) | 346 | $ | 1,916 | $ | (49 | ) | 192 | $ | 94 | $ | (7 | ) | 15 | $ | 2,010 | $ | (56 | ) | 207 | ||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Securities | Description of Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 91 | $ | (2 | ) | 14 | $ | 0 | $ | 0 | 0 | $ | 91 | $ | (2 | ) | 14 | $ | 28 | $ | (1 | ) | 6 | $ | 0 | $ | 0 | 0 | $ | 28 | $ | (1 | ) | 6 | ||||||||||||||||||||||||||||||||||||||
Non-U.S. government | 224 | (2 | ) | 20 | 0 | 0 | 0 | 224 | (2 | ) | 20 | 44 | (4 | ) | 5 | 0 | 0 | 0 | 44 | (4 | ) | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. corporate | 123 | (5 | ) | 27 | 302 | (13 | ) | 33 | 425 | (18 | ) | 60 | 345 | (20 | ) | 59 | 33 | (3 | ) | 4 | 378 | (23 | ) | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate | 79 | (1 | ) | 12 | 62 | (4 | ) | 7 | 141 | (5 | ) | 19 | 145 | (4 | ) | 32 | 6 | (1 | ) | 1 | 151 | (5 | ) | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 22 | (1 | ) | 10 | 0 | 0 | 0 | 22 | (1 | ) | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 381 | (5 | ) | 51 | 14 | (3 | ) | 3 | 395 | (8 | ) | 54 | 227 | (11 | ) | 34 | 1 | (1 | ) | 1 | 228 | (12 | ) | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed | 532 | (2 | ) | 97 | 439 | (5 | ) | 115 | 971 | (7 | ) | 212 | 238 | (2 | ) | 60 | 207 | (2 | ) | 48 | 445 | (4 | ) | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 1,452 | $ | (18 | ) | 231 | $ | 817 | $ | (25 | ) | 158 | $ | 2,269 | $ | (43 | ) | 389 | $ | 1,027 | $ | (42 | ) | 196 | $ | 247 | $ | (7 | ) | 54 | $ | 1,274 | $ | (49 | ) | 250 | ||||||||||||||||||||||||||||||||||||
% Below cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
<20% Below cost | $ | 1,452 | $ | (18 | ) | 231 | $ | 807 | $ | (20 | ) | 155 | $ | 2,259 | $ | (38 | ) | 386 | $ | 1,017 | $ | (35 | ) | 194 | $ | 246 | $ | (6 | ) | 53 | $ | 1,263 | $ | (41 | ) | 247 | ||||||||||||||||||||||||||||||||||||
20%-50% Below cost | 0 | 0 | 0 | 10 | (5 | ) | 3 | 10 | (5 | ) | 3 | 10 | (7 | ) | 2 | 1 | (1 | ) | 1 | 11 | (8 | ) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 1,452 | $ | (18 | ) | 231 | $ | 817 | $ | (25 | ) | 158 | $ | 2,269 | $ | (43 | ) | 389 | $ | 1,027 | $ | (42 | ) | 196 | $ | 247 | $ | (7 | ) | 54 | $ | 1,274 | $ | (49 | ) | 250 | ||||||||||||||||||||||||||||||||||||
Investment grade | $ | 1,408 | $ | (14 | ) | 223 | $ | 702 | $ | (15 | ) | 145 | $ | 2,110 | $ | (29 | ) | 368 | $ | 852 | $ | (23 | ) | 163 | $ | 207 | $ | (2 | ) | 48 | $ | 1,059 | $ | (25 | ) | 211 | ||||||||||||||||||||||||||||||||||||
Below investment grade | 44 | (4 | ) | 8 | 115 | (10 | ) | 13 | 159 | (14 | ) | 21 | 175 | (19 | ) | 33 | 40 | (5 | ) | 6 | 215 | (24 | ) | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 1,452 | $ | (18 | ) | 231 | $ | 817 | $ | (25 | ) | 158 | $ | 2,269 | $ | (43 | ) | 389 | $ | 1,027 | $ | (42 | ) | 196 | $ | 247 | $ | (7 | ) | 54 | $ | 1,274 | $ | (49 | ) | 250 | ||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Securities | Description of Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | $ | 49 | $ | (2 | ) | 9 | $ | 0 | $ | 0 | 0 | $ | 49 | $ | (2 | ) | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | $ | 54 | $ | (3 | ) | 10 | $ | 80 | $ | (5 | ) | 10 | $ | 134 | $ | (8 | ) | 20 | 106 | (13 | ) | 19 | 33 | (3 | ) | 4 | 139 | (16 | ) | 23 | ||||||||||||||||||||||||||||||||||||||||||
Finance and insurance | 0 | 0 | 0 | 34 | (1 | ) | 4 | 34 | (1 | ) | 4 | 128 | (2 | ) | 15 | 0 | 0 | 0 | 128 | (2 | ) | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 34 | (1 | ) | 9 | 93 | (3 | ) | 9 | 127 | (4 | ) | 18 | 16 | (1 | ) | 5 | 0 | 0 | 0 | 16 | (1 | ) | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Technology and communications | 0 | 0 | 0 | 18 | (1 | ) | 2 | 18 | (1 | ) | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods | 35 | (1 | ) | 8 | 0 | 0 | 0 | 35 | (1 | ) | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 0 | 0 | 0 | 54 | (2 | ) | 6 | 54 | (2 | ) | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transportation | 0 | 0 | 0 | 23 | (1 | ) | 2 | 23 | (1 | ) | 2 | 46 | (2 | ) | 11 | 0 | 0 | 0 | 46 | (2 | ) | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal, U.S. corporate securities | 123 | (5 | ) | 27 | 302 | (13 | ) | 33 | 425 | (18 | ) | 60 | 345 | (20 | ) | 59 | 33 | (3 | ) | 4 | 378 | (23 | ) | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | 66 | (1 | ) | 10 | 0 | 0 | 0 | 66 | (1 | ) | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 0 | 0 | 0 | 31 | (2 | ) | 3 | 31 | (2 | ) | 3 | 0 | 0 | 0 | 6 | (1 | ) | 1 | 6 | (1 | ) | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods | 31 | (1 | ) | 8 | 0 | 0 | 0 | 31 | (1 | ) | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 15 | (1 | ) | 6 | 0 | 0 | 0 | 15 | (1 | ) | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transportation | 0 | 0 | 0 | 25 | (1 | ) | 3 | 25 | (1 | ) | 3 | 33 | (1 | ) | 8 | 0 | 0 | 0 | 33 | (1 | ) | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 79 | (1 | ) | 12 | 6 | (1 | ) | 1 | 85 | (2 | ) | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities | 79 | (1 | ) | 12 | 62 | (4 | ) | 7 | 141 | (5 | ) | 19 | 145 | (4 | ) | 32 | 6 | (1 | ) | 1 | 151 | (5 | ) | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position | $ | 202 | $ | (6 | ) | 39 | $ | 364 | $ | (17 | ) | 40 | $ | 566 | $ | (23 | ) | 79 | $ | 490 | $ | (24 | ) | 91 | $ | 39 | $ | (4 | ) | 5 | $ | 529 | $ | (28 | ) | 96 | ||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Amortized cost or cost | Fair value | Amortized cost or cost | Fair value | ||||||||||||
Due one year or less | $ | 1,476 | $ | 1,499 | $ | 1,268 | $ | 1,291 | ||||||||
Due after one year through five years | 9,646 | 10,265 | 8,367 | 9,030 | ||||||||||||
Due after five years through ten years | 13,164 | 14,863 | 13,587 | 15,158 | ||||||||||||
Due after ten years | 23,112 | 29,452 | 23,342 | �� | 29,211 | |||||||||||
Subtotal | 47,398 | 56,079 | 46,564 | 54,690 | ||||||||||||
Residential mortgage-backed | 1,825 | 2,075 | 1,524 | 1,691 | ||||||||||||
Commercial mortgage-backed | 2,775 | 2,976 | 2,538 | 2,734 | ||||||||||||
Other asset-backed | 3,254 | 3,286 | 2,485 | 2,534 | ||||||||||||
Total | $ | 55,252 | $ | 64,416 | $ | 53,111 | $ | 61,649 | ||||||||
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||||||
Property type: | ||||||||||||||||||||||||||||||||
Retail | $ | 2,481 | 36 | % | $ | 2,590 | 37 | % | $ | 2,693 | 39 | % | $ | 2,442 | 36 | % | ||||||||||||||||
Industrial | 1,685 | 24 | 1,670 | 24 | 1,558 | 23 | 1,638 | 24 | ||||||||||||||||||||||||
Office | 1,625 | 24 | 1,632 | 23 | 1,531 | 22 | 1,567 | 23 | ||||||||||||||||||||||||
Apartments | 566 | 8 | 541 | 8 | 573 | 8 | 529 | 8 | ||||||||||||||||||||||||
Mixed use | 292 | 4 | 281 | 4 | 298 | 4 | 286 | 4 | ||||||||||||||||||||||||
Other | 262 | 4 | 266 | 4 | 259 | 4 | 312 | 5 | ||||||||||||||||||||||||
Subtotal | 6,911 | 100 | % | 6,980 | 100 | % | 6,912 | 100 | % | 6,774 | 100 | % | ||||||||||||||||||||
Unamortized balance of loan origination fees | 0 | (4 | ) | |||||||||||||||||||||||||||||
Allowance for credit losses | (31 | ) | (13 | ) | (33 | ) | (31 | ) | ||||||||||||||||||||||||
Total | $ | 6,880 | $ | 6,963 | $ | 6,879 | $ | 6,743 | ||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | ||||||||||||
Geographic region: | ||||||||||||||||
South Atlantic | $ | 1,761 | 25 | % | $ | 1,715 | 25 | % | ||||||||
Pacific | 1,571 | 23 | 1,673 | 24 | ||||||||||||
Middle Atlantic | 993 | 14 | 992 | 14 | ||||||||||||
Mountain | 776 | 11 | 753 | 11 | ||||||||||||
West North Central | 481 | 7 | 488 | 7 | ||||||||||||
East North Central | 451 | 7 | 455 | 6 | ||||||||||||
West South Central | 427 | 6 | 433 | 6 | ||||||||||||
New England | 262 | 4 | 257 | 4 | ||||||||||||
East South Central | 189 | 3 | 214 | 3 | ||||||||||||
Subtotal | 6,911 | 100 | % | 6,980 | 100 | % | ||||||||||
Unamortized balance of loan origination fees | 0 | (4 | ) | |||||||||||||
Allowance for credit losses | (31 | ) | (13 | ) | ||||||||||||
Total | $ | 6,880 | $ | 6,963 | ||||||||||||
June 30, 2021 | December 31, 2020 | |||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | ||||||||||||
Geographic region: | ||||||||||||||||
South Atlantic | �� | $ | 1,788 | 26 | % | $ | 1,711 | 25 | % | |||||||
Pacific | 1,456 | 21 | 1,510 | 22 | ||||||||||||
Middle Atlantic | 988 | 14 | 994 | 15 | ||||||||||||
Mountain | 847 | 12 | 781 | 12 | ||||||||||||
West North Central | 466 | 7 | 467 | 7 | ||||||||||||
West South Central | 455 | 7 | 423 | 6 | ||||||||||||
East North Central | 447 | 6 | 441 | 6 | ||||||||||||
New England | 262 | 4 | 260 | 4 | ||||||||||||
East South Central | 203 | 3 | 187 | 3 | ||||||||||||
Subtotal | 6,912 | 100 | % | 6,774 | 100 | % | ||||||||||
Allowance for credit losses | (33 | ) | (31 | ) | ||||||||||||
Total | $ | 6,879 | $ | 6,743 | ||||||||||||
September 30, 2020 | ||||||||||||||||||||||||
(Amounts in millions) | 31 - 60 days past due | 61 - 90 days past due | Greater than 90 days past due | Total past due | Current | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 4 | $ | 0 | $ | 10 | $ | 14 | $ | 2,467 | $ | 2,481 | ||||||||||||
Industrial | 0 | 0 | 0 | 0 | 1,685 | 1,685 | ||||||||||||||||||
Office | 0 | 0 | 0 | 0 | 1,625 | 1,625 | ||||||||||||||||||
Apartments | 0 | 0 | 0 | 0 | 566 | 566 | ||||||||||||||||||
Mixed use | 0 | 0 | 0 | 0 | 292 | 292 | ||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 262 | 262 | ||||||||||||||||||
Total amortized cost | $ | 4 | $ | 0 | $ | 10 | $ | 14 | $ | 6,897 | $ | 6,911 | ||||||||||||
% of total commercial mortgage loans | 0 | % | 0 | % | 0 | % | 0 | % | 100 | % | 100 | % | ||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
(Amounts in millions) | 31 - 60 days past due | 61 - 90 days past due | Greater than 90 days past due | Total past due | Current | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2,590 | $ | 2,590 | ||||||||||||
Industrial | 0 | 0 | 0 | 0 | 1,670 | 1,670 | ||||||||||||||||||
Office | 0 | 0 | 0 | 0 | 1,632 | 1,632 | ||||||||||||||||||
Apartments | 0 | 0 | 0 | 0 | 541 | 541 | ||||||||||||||||||
Mixed use | 0 | 0 | 0 | 0 | 281 | 281 | ||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 266 | 266 | ||||||||||||||||||
Total recorded investment | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 6,980 | $ | 6,980 | ||||||||||||
% of total commercial mortgage loans | 0 | % | 0 | % | 0 | % | 0 | % | 100 | % | 100 | % | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 28 | $ | 11 | $ | 13 | $ | 9 | $ | 32 | $ | 29 | $ | 31 | $ | 13 | ||||||||||||||||
Cumulative effect of change in accounting | 0 | 0 | 16 | 0 | 0 | 0 | 0 | 16 | ||||||||||||||||||||||||
Provision | 3 | 1 | 2 | 3 | 1 | (1 | ) | 2 | (1 | ) | ||||||||||||||||||||||
Write-offs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Ending balance | $ | 31 | $ | 12 | $ | 31 | $ | 12 | $ | 33 | $ | 28 | $ | 33 | $ | 28 | ||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 and prior | Total | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 and prior | Total | ||||||||||||||||||||||||||||||||||||||||||
Debt-to-value: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 9 | $ | 15 | $ | 38 | $ | 108 | $ | 131 | $ | 2,307 | $ | 2,608 | $ | 7 | $ | 59 | $ | 25 | $ | 102 | $ | 157 | $ | 2,151 | $ | 2,501 | ||||||||||||||||||||||||||||
51% - 60% | 29 | 33 | 191 | 289 | 141 | 734 | 1,417 | 19 | 51 | 88 | 344 | 236 | 810 | 1,548 | ||||||||||||||||||||||||||||||||||||||||||
61% - 75% | 373 | 746 | 758 | 330 | 223 | 448 | 2,878 | 503 | 426 | 649 | 504 | 273 | 508 | 2,863 | ||||||||||||||||||||||||||||||||||||||||||
76% - 100% | 0 | 0 | 8 | 0 | 0 | 0 | 8 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Greater than 100% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 411 | $ | 794 | $ | 995 | $ | 727 | $ | 495 | $ | 3,489 | $ | 6,911 | $ | 529 | $ | 536 | $ | 762 | $ | 950 | $ | 666 | $ | 3,469 | $ | 6,912 | ||||||||||||||||||||||||||||
Debt service coverage ratio: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 1.00 | $ | 0 | $ | 0 | $ | 33 | $ | 3 | $ | 0 | $ | 123 | $ | 159 | $ | 0 | $ | 0 | $ | 8 | $ | 27 | $ | 12 | $ | 131 | $ | 178 | ||||||||||||||||||||||||||||
1.00 - 1.25 | 41 | 12 | 106 | 73 | 13 | 252 | 497 | 3 | 52 | 67 | 53 | 42 | 283 | 500 | ||||||||||||||||||||||||||||||||||||||||||
1.26 - 1.50 | 69 | 357 | 260 | 96 | 87 | 405 | 1,274 | 91 | 81 | 230 | 200 | 57 | 383 | 1,042 | ||||||||||||||||||||||||||||||||||||||||||
1.51 - 2.00 | 251 | 356 | 503 | 320 | 266 | 1,214 | 2,910 | 385 | 281 | 289 | 441 | 302 | 1,153 | 2,851 | ||||||||||||||||||||||||||||||||||||||||||
Greater than 2.00 | 50 | 69 | 93 | 235 | 129 | 1,495 | 2,071 | 50 | 122 | 168 | 229 | 253 | 1,519 | 2,341 | ||||||||||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 411 | $ | 794 | $ | 995 | $ | 727 | $ | 495 | $ | 3,489 | $ | 6,911 | $ | 529 | $ | 536 | $ | 762 | $ | 950 | $ | 666 | $ | 3,469 | $ | 6,912 | ||||||||||||||||||||||||||||
Write-offs, gross | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Write-offs, net | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||
(Amounts in millions) | 0% - 50% | 51% - 60% | 61% - 75% | 76% - 100% | Greater than 100% | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 920 | $ | 605 | $ | 1,168 | $ | 0 | $ | 0 | $ | 2,693 | ||||||||||||
Industrial | 716 | 324 | 518 | 0 | 0 | 1,558 | ||||||||||||||||||
Office | 468 | 452 | 611 | 0 | 0 | 1,531 | ||||||||||||||||||
Apartments | 225 | 77 | 271 | 0 | 0 | 573 | ||||||||||||||||||
Mixed use | 112 | 33 | 153 | 0 | 0 | 298 | ||||||||||||||||||
Other | 60 | 57 | 142 | 0 | 0 | 259 | ||||||||||||||||||
Total amortized cost | $ | 2,501 | $ | 1,548 | $ | 2,863 | $ | 0 | $ | 0 | $ | 6,912 | ||||||||||||
% of total | 36 | % | 22 | % | 42 | % | 0 | % | 0 | % | 100 | % | ||||||||||||
Weighted-average debt service coverage ratio | 2.39 | 1.84 | 1.62 | 0 | 0 | 1.96 | ||||||||||||||||||
September 30, 2020 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | 0% - 50% | 51% - 60% | 61% - 75% | 76% - 100% | Greater than 100% | Total | 0% - 50% | 51% - 60% | 61% - 75% | 76% - 100% | Greater than 100% | Total | ||||||||||||||||||||||||||||||||||||
Property type: | ||||||||||||||||||||||||||||||||||||||||||||||||
Retail | $ | 940 | $ | 557 | $ | 984 | $ | 0 | $ | 0 | $ | 2,481 | $ | 913 | $ | 639 | $ | 859 | $ | 29 | $ | 2 | $ | 2,442 | ||||||||||||||||||||||||
Industrial | 775 | 310 | 600 | 0 | 0 | 1,685 | 798 | 351 | 456 | 33 | 0 | 1,638 | ||||||||||||||||||||||||||||||||||||
Office | 513 | 337 | 767 | 8 | 0 | 1,625 | 523 | 431 | 595 | 18 | 0 | 1,567 | ||||||||||||||||||||||||||||||||||||
Apartments | 220 | 85 | 261 | 0 | 0 | 566 | 199 | 86 | 238 | 6 | 0 | 529 | ||||||||||||||||||||||||||||||||||||
Mixed use | 106 | 63 | 123 | 0 | 0 | 292 | 112 | 47 | 127 | 0 | 0 | 286 | ||||||||||||||||||||||||||||||||||||
Other | 54 | 65 | 143 | 0 | 0 | 262 | 100 | 74 | 121 | 17 | 0 | 312 | ||||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 2,608 | $ | 1,417 | $ | 2,878 | $ | 8 | $ | 0 | $ | 6,911 | $ | 2,645 | $ | 1,628 | $ | 2,396 | $ | 103 | $ | 2 | $ | 6,774 | ||||||||||||||||||||||||
% of total | 38 | % | 20 | % | 42 | % | 0 | % | 0 | % | 100 | % | 39 | % | 24 | % | 35 | % | 2 | % | 0 | % | 100 | % | ||||||||||||||||||||||||
Weighted-average debt service coverage ratio | 2.31 | 1.81 | 1.57 | 1.42 | 0 | 1.90 | 2.40 | 1.83 | 1.61 | 1.49 | 0.64 | 1.97 | ||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
(Amounts in millions) | 0% - 50% | 51% - 60% | 61% - 75% | 76% - 100% | Greater than | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 986 | $ | 579 | $ | 1,025 | $ | 0 | $ | 0 | $ | 2,590 | ||||||||||||
Industrial | 808 | 337 | 525 | 0 | 0 | 1,670 | ||||||||||||||||||
Office | 529 | 380 | 723 | 0 | 0 | 1,632 | ||||||||||||||||||
Apartments | 211 | 110 | 220 | 0 | 0 | 541 | ||||||||||||||||||
Mixed use | 104 | 70 | 107 | 0 | 0 | 281 | ||||||||||||||||||
Other | 56 | 69 | 141 | 0 | 0 | 266 | ||||||||||||||||||
Total recorded investment | $ | 2,694 | $ | 1,545 | $ | 2,741 | $ | 0 | $ | 0 | $ | 6,980 | ||||||||||||
% of total | 39 | % | 22 | % | 39 | % | 0 | % | 0 | % | 100 | % | ||||||||||||
Weighted-average debt service coverage ratio | 2.32 | 1.81 | 1.55 | 0 | 0 | 1.90 | ||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||
(Amounts in millions) | Less than 1.00 | 1.00 - 1.25 | 1.26 - 1.50 | 1.51 - 2.00 | Greater than 2.00 | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 51 | $ | 163 | $ | 529 | $ | 1,190 | $ | 760 | $ | 2,693 | ||||||||||||
Industrial | 20 | 78 | 136 | 597 | 727 | 1,558 | ||||||||||||||||||
Office | 70 | 90 | 169 | 658 | 544 | 1,531 | ||||||||||||||||||
Apartments | 8 | 22 | 126 | 250 | 167 | 573 | ||||||||||||||||||
Mixed use | 5 | 23 | 45 | 128 | 97 | 298 | ||||||||||||||||||
Other | 24 | 124 | 37 | 28 | 46 | 259 | ||||||||||||||||||
Total amortized cost | $ | 178 | $ | 500 | $ | 1,042 | $ | 2,851 | $ | 2,341 | $ | 6,912 | ||||||||||||
% of total | 3 | % | 7 | % | 15 | % | 41 | % | 34 | % | 100 | % | ||||||||||||
Weighted-average debt-to-value | 58 | % | 61 | % | 62 | % | 59 | % | 44 | % | 54 | % | ||||||||||||
September 30, 2020 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Less than 1.00 | 1.00 - 1.25 | 1.26 - 1.50 | 1.51 - 2.00 | Greater than 2.00 | Total | Less than 1.00 | 1.00 - 1.25 | 1.26 - 1.50 | 1.51 - 2.00 | Greater than 2.00 | Total | ||||||||||||||||||||||||||||||||||||
Property type: | ||||||||||||||||||||||||||||||||||||||||||||||||
Retail | $ | 61 | $ | 134 | $ | 585 | $ | 1,100 | $ | 601 | $ | 2,481 | $ | 55 | $ | 169 | $ | 483 | $ | 969 | $ | 766 | $ | 2,442 | ||||||||||||||||||||||||
Industrial | 23 | 66 | 218 | 704 | 674 | 1,685 | 21 | 85 | 143 | 616 | 773 | 1,638 | ||||||||||||||||||||||||||||||||||||
Office | 28 | 111 | 238 | 770 | 478 | 1,625 | 101 | 99 | 170 | 634 | 563 | 1,567 | ||||||||||||||||||||||||||||||||||||
Apartments | 11 | 24 | 177 | 182 | 172 | 566 | 9 | 24 | 126 | 228 | 142 | 529 | ||||||||||||||||||||||||||||||||||||
Mixed use | 3 | 18 | 37 | 118 | 116 | 292 | 5 | 24 | 29 | 115 | 113 | 286 | ||||||||||||||||||||||||||||||||||||
Other | 33 | 144 | 19 | 36 | 30 | 262 | 25 | 125 | 41 | 28 | 93 | 312 | ||||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 159 | $ | 497 | $ | 1,274 | $ | 2,910 | $ | 2,071 | $ | 6,911 | $ | 216 | $ | 526 | $ | 992 | $ | 2,590 | $ | 2,450 | $ | 6,774 | ||||||||||||||||||||||||
% of total | 2 | % | 7 | % | 19 | % | 42 | % | 30 | % | 100 | % | 3 | % | 8 | % | 15 | % | 38 | % | 36 | % | 100 | % | ||||||||||||||||||||||||
Weighted-average debt-to-value | 57 | % | 61 | % | 63 | % | 59 | % | 41 | % | 54 | % | 57 | % | 62 | % | 62 | % | 57 | % | 44 | % | 53 | % | ||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
(Amounts in millions) | Less than 1.00 | 1.00 - 1.25 | 1.26 - 1.50 | 1.51 - 2.00 | Greater than 2.00 | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 68 | $ | 141 | $ | 596 | $ | 1,148 | $ | 637 | $ | 2,590 | ||||||||||||
Industrial | 24 | 51 | 221 | 658 | 716 | 1,670 | ||||||||||||||||||
Office | 44 | 89 | 277 | 751 | 471 | 1,632 | ||||||||||||||||||
Apartments | 16 | 32 | 129 | 175 | 189 | 541 | ||||||||||||||||||
Mixed use | 4 | 16 | 37 | 107 | 117 | 281 | ||||||||||||||||||
Other | 34 | 147 | 20 | 31 | 34 | 266 | ||||||||||||||||||
Total recorded investment | $ | 190 | $ | 476 | $ | 1,280 | $ | 2,870 | $ | 2,164 | $ | 6,980 | ||||||||||||
% of total | 3 | % | 7 | % | 18 | % | 41 | % | 31 | % | 100 | % | ||||||||||||
Weighted-average debt-to-value | 59 | % | 61 | % | 63 | % | 58 | % | 41 | % | 54 | % | ||||||||||||
Derivative assets | Derivative liabilities | |||||||||||||||||||
Balance sheet classification | Fair value | Balance sheet classification | Fair value | |||||||||||||||||
(Amounts in millions) | June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | ||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | Other invested assets | $ | 280 | $ | 468 | Other liabilities | $ | 53 | $ | 23 | ||||||||||
Foreign currency swaps | Other invested assets | 2 | 1 | Other liabilities | 2 | 2 | ||||||||||||||
Total cash flow hedges | 282 | 469 | 55 | 25 | ||||||||||||||||
Total derivatives designated as hedges | 282 | 469 | 55 | 25 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Equity index options | Other invested assets | 47 | 63 | Other liabilities | 0 | 0 | ||||||||||||||
Financial futures | Other invested assets | 0 | 0 | Other liabilities | 0 | 0 | ||||||||||||||
Other foreign currency contracts | Other invested assets | 24 | 42 | Other liabilities | 0 | 1 | ||||||||||||||
GMWB embedded derivatives | Reinsurance recoverable (1) | 18 | 26 | Policyholder account balances (2) | 275 | 379 | ||||||||||||||
Fixed index annuity embedded derivatives | Other assets | 0 | 0 | Policyholder account balances (3) | 339 | 399 | ||||||||||||||
Indexed universal life embedded derivatives | Reinsurance recoverable | 0 | 0 | Policyholder account balances (4) | 24 | 26 | ||||||||||||||
Total derivatives not designated as hedges | 89 | 131 | 638 | 805 | ||||||||||||||||
Total derivatives | $ | 371 | $ | 600 | $ | 693 | $ | 830 | ||||||||||||
(1) | Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities. |
(2) | Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
(3) | Represents the embedded derivatives associated with our fixed index annuity liabilities. |
(4) | Represents the embedded derivatives associated with our indexed universal life liabilities. |
Derivative assets | Derivative liabilities | |||||||||||||||||||
Fair value | Fair value | |||||||||||||||||||
(Amounts in millions) | Balance sheet | September 30, 2020 | December 31, 2019 | Balance sheet | September 30, 2020 | December 31, 2019 | ||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | Other invested assets | $ | 708 | $ | 197 | Other liabilities | $ | 4 | $ | 10 | ||||||||||
Foreign currency swaps | Other invested assets | 10 | 4 | Other liabilities | 0 | — | ||||||||||||||
Total cash flow hedges | 718 | 201 | 4 | 10 | ||||||||||||||||
Total derivatives designated as hedges | 718 | 201 | 4 | 10 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Equity index options | Other invested assets | 67 | 81 | Other liabilities | 0 | — | ||||||||||||||
Financial futures | Other invested assets | 0 | — | Other liabilities | 0 | — | ||||||||||||||
Other foreign currency contracts | Other invested assets | 19 | 8 | Other liabilities | 5 | 1 | ||||||||||||||
GMWB embedded derivatives | Reinsurance recoverable (1) | 35 | 20 | Policyholder account balances (2) | 508 | 323 | ||||||||||||||
Fixed index annuity embedded derivatives | Other assets | 0 | — | Policyholder account balances (3) | 432 | 452 | ||||||||||||||
Indexed universal life embedded derivatives | Reinsurance recoverable | 0 | 0 | Policyholder account balances (4) | 25 | 19 | ||||||||||||||
Total derivatives not designated as hedges | 121 | 109 | 970 | 795 | ||||||||||||||||
Total derivatives | $ | 839 | $ | 310 | $ | 974 | $ | 805 | ||||||||||||
(Notional in millions) | Measurement | December 31, 2019 | Additions | Maturities/ terminations | September 30, 2020 | Measurement | December 31, 2020 | Additions | Maturities/ terminations | June 30, 2021 | ||||||||||||||||||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Notional | $ | 8,968 | $ | 1,844 | $ | (2,616 | ) | $ | 8,196 | Notional | $ | 8,178 | $ | 0 | $ | (405 | ) | $ | 7,773 | ||||||||||||||||||||
Foreign currency swaps | Notional | 110 | 0 | 0 | 110 | Notional | 127 | 0 | 0 | 127 | ||||||||||||||||||||||||||||||
Total cash flow hedges | 9,078 | 1,844 | (2,616 | ) | 8,306 | 8,305 | 0 | (405 | ) | 7,900 | ||||||||||||||||||||||||||||||
Total derivatives designated as hedges | 9,078 | 1,844 | (2,616 | ) | 8,306 | 8,305 | 0 | (405 | ) | 7,900 | ||||||||||||||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Notional | 4,674 | 0 | 0 | 4,674 | Notional | 4,674 | 0 | (4,674 | ) | 0 | |||||||||||||||||||||||||||||
Equity index options | Notional | 2,451 | 1,527 | (1,849 | ) | 2,129 | Notional | 2,000 | 614 | (803 | ) | 1,811 | ||||||||||||||||||||||||||||
Financial futures | Notional | 1,182 | 4,362 | (4,275 | ) | 1,269 | Notional | 1,104 | 1,972 | (2,116 | ) | 960 | ||||||||||||||||||||||||||||
Other foreign currency contracts | Notional | 628 | 5,689 | (4,687 | ) | 1,630 | Notional | 1,186 | 22 | (536 | ) | 672 | ||||||||||||||||||||||||||||
Total derivatives not designated as hedges | 8,935 | 11,578 | (10,811 | ) | 9,702 | 8,964 | 2,608 | (8,129 | ) | 3,443 | ||||||||||||||||||||||||||||||
Total derivatives | $ | 18,013 | $ | 13,422 | $ | (13,427 | ) | $ | 18,008 | $ | 17,269 | $ | 2,608 | $ | (8,534 | ) | $ | 11,343 | ||||||||||||||||||||||
(Number of policies) | Measurement | December 31, 2019 | Additions | Maturities/ terminations | September 30, 2020 | Measurement | December 31, 2020 | Additions | Maturities/ terminations | June 30, 2021 | ||||||||||||||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives | Policies | 25,623 | 0 | (1,452 | ) | 24,171 | Policies | 23,713 | 0 | (982 | ) | 22,731 | ||||||||||||||||||||||||||||
Fixed index annuity embedded derivatives | Policies | 15,441 | 0 | (1,511 | ) | 13,930 | Policies | 12,778 | 0 | (1,944 | ) | 10,834 | ||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | Policies | 884 | 0 | (37 | ) | 847 | Policies | 842 | 0 | (22 | ) | 820 |
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income (loss) from OCI | Classification of gain (loss) reclassified into net income (loss) | Gain (loss) recognized in net income (loss) | Classification of gain (loss) recognized in net income (loss) | |||||||||||
Interest rate swaps hedging assets | $ | 314 | $ | 52 | Net investment income | $ | 0 | Net investment gains (losses) | ||||||||
Interest rate swaps hedging liabilities | (8 | ) | 0 | Interest expense | 0 | Net investment gains (losses) | ||||||||||
Foreign currency swaps | 3 | 0 | Net investment income | 0 | Net investment gains (losses) | |||||||||||
Total | $ | 309 | $ | 52 | $ | 0 | ||||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income (loss) from OCI | Classification of gain (loss) reclassified into net income (loss) | Gain (loss) recognized in net income (loss) | Classification of gain (loss) recognized in net income (loss) | |||||||||||
Interest rate swaps hedging assets | $ | (57 | ) | $ | 46 | Net investment income | $ | 0 | Net investment gains (losses) | |||||||
Interest rate swaps hedging liabilities | 1 | 0 | Interest expense | 0 | Net investment gains (losses) | |||||||||||
Foreign currency swaps | (4 | ) | 0 | Net investment income | 0 | Net investment gains (losses) | ||||||||||
Total | $ | (60 | ) | $ | 46 | $ | 0 | |||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income (loss) from OCI | Classification of gain (loss) reclassified into net income (loss) | Gain (loss) recognized in net income (loss) | Classification of gain (loss) recognized in net income (loss) | |||||||||||
Interest rate swaps hedging assets | $ | (215 | ) | $ | 104 | Net investment income | $ | 0 | Net investment gains (losses) | |||||||
Interest rate swaps hedging liabilities | 36 | 0 | �� | Interest expense | 0 | Net investment gains (losses) | ||||||||||
Foreign currency swaps | 1 | 0 | Net investment income | 0 | Net investment gains (losses) | |||||||||||
Total | $ | (178 | ) | $ | 104 | $ | 0 | |||||||||
(Amounts in millions) | Gain (loss) recognized | Gain (loss) reclassified into net income (loss) from OCI | Classification of (loss) net income (loss) | Gain (loss) recognized in net income (loss) | Classification of (loss) net | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income (loss) from OCI | Classification of gain (loss) reclassified into net income (loss) | Gain (loss) recognized in net income (loss) | Classification of gain (loss) recognized in net income (loss) | ||||||||||||||||||||||
Interest rate swaps hedging assets | $ | (246 | ) | $ | 50 | Net investment income | $ | 0 | Net investment gains (losses) | $ | 984 | $ | 89 | Net investment income | $ | 0 | Net investment gains (losses) | |||||||||||||||
Interest rate swaps hedging | 0 | 4 | Net investment gains (losses) | 0 | Net investment gains (losses) | 0 | 4 | Net investment gains (losses) | 0 | Net investment gains (losses) | ||||||||||||||||||||||
Interest rate swaps hedging liabilities | 10 | 0 | Interest expense | 0 | Net investment gains (losses) | (62 | ) | 0 | Interest expense | 0 | Net investment gains (losses) | |||||||||||||||||||||
Foreign currency swaps | (7 | ) | 0 | Net investment income | 0 | Net investment gains (losses) | 13 | 0 | Net investment income | 0 | Net investment gains (losses) | |||||||||||||||||||||
Total | $ | (243 | ) | $ | 54 | $ | 0 | $ | 935 | $ | 93 | $ | 0 | |||||||||||||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net from OCI | Classification of gain (loss) reclassified into net income (loss) | Gain (loss) recognized in net income (loss) | Classification of gain (loss) recognized in net income (loss) | |||||||||||
Interest rate swaps hedging assets | $ | 406 | $ | 41 | Net investment income | $ | 0 | Net investment gains (losses) | ||||||||
Interest rate swaps hedging assets | 0 | 4 | Net investment gains (losses) | 0 | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging liabilities | (23 | ) | 0 | Interest expense | 0 | Net investment gains (losses) | ||||||||||
Foreign currency | 5 | 1 | Net investment income | 0 | Net investment gains (losses) | |||||||||||
Total | $ | 388 | $ | 46 | $ | 0 | ||||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income (loss) from OCI | Classification of gain (loss) reclassified into net income (loss) | Gain (loss) recognized in net income (loss) | Classification of gain (loss) recognized in net income (loss) | |||||||||||||||
Interest rate swaps hedging assets | $ | 738 | $ | 139 | Net investment income | | $ | 0 | Net investment gains (losses) | | ||||||||||
Interest rate swaps hedging assets | 0 | 8 | Net investment gains (losses) | | 0 | Net investment gains (losses) | | |||||||||||||
Interest rate swaps hedging liabilities | (52 | ) | 0 | Interest expense | 0 | Net investment gains (losses) | | |||||||||||||
Foreign currency | 6 | 0 | Net investment income | | 0 | Net investment gains (losses) | | |||||||||||||
Total | $ | 692 | $ | 147 | $ | 0 | ||||||||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income (loss) from OCI | Classification of gain (loss) reclassified into net income (loss) | Gain (loss) recognized in net income (loss) | Classification of gain (loss) recognized in net income (loss) | |||||||||||||||
Interest rate swaps hedging assets | $ | 759 | $ | 121 | Net investment income | | $ | 0 | Net investment gains (losses) | | ||||||||||
Interest rate swaps hedging assets | 0 | 6 | Net investment gains (losses) | | 0 | Net investment gains (losses) | | |||||||||||||
Interest rate swaps hedging liabilities | (55 | ) | 0 | Interest expense | 0 | Net investment gains (losses) | | |||||||||||||
Foreign currency | 4 | 0 | Net investment income | | 0 | Net investment gains (losses) | | |||||||||||||
Foreign currency | 0 | 0 | Net investment gains (losses) | | 2 | Net investment gains (losses) | | |||||||||||||
Total | $ | 708 | $ | 127 | $ | 2 | ||||||||||||||
Three months ended September 30, | ||||||||
(Amounts in millions) | 2020 | 2019 | ||||||
Derivatives qualifying as effective accounting hedges as of July 1 | $ | 2,677 | $ | 1,983 | ||||
Current period increases (decreases) in fair value, net of deferred taxes of $52 and $(82) | (191 | ) | 306 | |||||
Reclassification to net (income) loss, net of deferred taxes of $19 and $16 | (35 | ) | (30 | ) | ||||
Derivatives qualifying as effective accounting hedges as of September 30 | $ | 2,451 | $ | 2,259 | ||||
Three months ended June 30, | ||||||||
(Amounts in millions) | 2021 | 2020 | ||||||
Derivatives qualifying as effective accounting hedges as of April 1 | $ | 1,792 | $ | 2,755 | ||||
Current period increases (decreases) in fair value, net of deferred taxes of $(64) and $12 | 245 | (48 | ) | |||||
Reclassification to net (income) loss, net of deferred taxes of $18 and $16 | (34 | ) | (30 | ) | ||||
Derivatives qualifying as effective accounting hedges as of June 30 | $ | 2,003 | $ | 2,677 | ||||
Nine months ended September 30, | ||||||||
(Amounts in millions) | 2020 | 2019 | ||||||
Derivatives qualifying as effective accounting hedges as of January 1 | $ | 2,002 | $ | 1,781 | ||||
Current period increases (decreases) in fair value, net of deferred taxes of $(148) in both periods | 544 | 560 | ||||||
Reclassification to net (income) loss, net of deferred taxes of $52 and $45 | (95 | ) | (82 | ) | ||||
Derivatives qualifying as effective accounting hedges as of September 30 | $ | 2,451 | $ | 2,259 | ||||
Six months ended June 30, | ||||||||
(Amounts in millions) | 2021 | 2020 | ||||||
Derivatives qualifying as effective accounting hedges as of January 1 | $ | 2,211 | $ | 2,002 | ||||
Current period increases (decreases) in fair value, net of deferred taxes of $38 and $(200) | (140 | ) | 735 | |||||
Reclassification to net (income) loss, net of deferred taxes of $36 and $33 | (68 | ) | (60 | ) | ||||
Derivatives qualifying as effective accounting hedges as of June 30 | $ | 2,003 | $ | 2,677 | ||||
Three months ended September 30, | Classification of gain (loss) recognized in net income (loss) | Three months ended June 30, | Classification of gain (loss) recognized in net income (loss) | |||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2021 | 2020 | ||||||||||||||||
Interest rate swaps | $ | 1 | $ | (2 | ) | Net investment gains (losses) | $ | (1 | ) | $ | (2 | ) | Net investment gains (losses) | |||||||
Equity index options | 7 | 1 | Net investment gains (losses) | 6 | 4 | Net investment gains (losses) | ||||||||||||||
Financial futures | (41 | ) | 35 | Net investment gains (losses) | 8 | (123 | ) | Net investment gains (losses) | ||||||||||||
Other foreign currency contracts | 12 | (10 | ) | Net investment gains (losses) | 0 | (2 | ) | Net investment gains (losses) | ||||||||||||
GMWB embedded derivatives | 54 | (44 | ) | Net investment gains (losses) | 2 | 129 | Net investment gains (losses) | |||||||||||||
Fixed index annuity embedded derivatives | (18 | ) | (14 | ) | Net investment gains (losses) | (14 | ) | (45 | ) | Net investment gains (losses) | ||||||||||
Indexed universal life embedded derivatives | 3 | 1 | Net investment gains (losses) | 3 | 3 | Net investment gains (losses) | ||||||||||||||
Total derivatives not designated as hedges | $ | 18 | $ | (33 | ) | $ | 4 | $ | (36 | ) | ||||||||||
Six months ended June 30, | Classification of gain (loss) recognized in net income (loss) | |||||||||
(Amounts in millions) | 2021 | 2020 | ||||||||
Interest rate swaps | $ | 3 | $ | (12 | ) | Net investment gains (losses) | ||||
Equity index options | 9 | (9 | ) | Net investment gains (losses) | ||||||
Financial futures | (102 | ) | 138 | Net investment gains (losses) | ||||||
Other foreign currency contracts | 0 | 8 | Net investment gains (losses) | |||||||
GMWB embedded derivatives | 107 | (207 | ) | Net investment gains (losses) | ||||||
Fixed index annuity embedded derivatives | (18 | ) | (13 | ) | Net investment gains (losses) | |||||
Indexed universal life embedded derivatives | 13 | 7 | Net investment gains (losses) | |||||||
Total derivatives not designated as hedges | $ | 12 | $ | (88 | ) | |||||
(Amounts in millions) | Nine months ended September 30, | Classification of gain (loss) recognized in net income (loss) | ||||||||
2020 | 2019 | |||||||||
Interest rate swaps | $ | (11 | ) | $ | (6 | ) | Net investment gains (losses) | |||
Equity index options | (2 | ) | 28 | Net investment gains (losses) | ||||||
Financial futures | 97 | 8 | Net investment gains (losses) | |||||||
Other foreign currency contracts | 9 | (17 | ) | Net investment gains (losses) | ||||||
GMWB embedded derivatives | (153 | ) | (21 | ) | Net investment gains (losses) | |||||
Fixed index annuity embedded derivatives | (31 | ) | (72 | ) | Net investment gains (losses) | |||||
Indexed universal life embedded derivatives | 10 | 1 | Net investment gains (losses) | |||||||
Total derivatives not designated as hedges | $ | (81 | ) | $ | (79 | ) | ||||
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Derivative assets (1) | Derivative liabilities (2) | Net derivatives | Derivative assets (1) | Derivative liabilities (2) | Net derivatives | Derivative assets (1) | Derivative liabilities (1) | Net derivatives | Derivative assets (1) | Derivative liabilities (1) | Net derivatives | ||||||||||||||||||||||||||||||||||||
Amounts presented in the balance sheet: | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross amounts recognized | $ | 804 | $ | 9 | $ | 795 | $ | 291 | $ | 11 | $ | 280 | $ | 353 | $ | 55 | $ | 298 | $ | 574 | $ | 26 | $ | 548 | ||||||||||||||||||||||||
Gross amounts offset in the balance sheet | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Net amounts presented in the balance sheet | 804 | 9 | 795 | 291 | 11 | 280 | 353 | 55 | 298 | 574 | 26 | 548 | ||||||||||||||||||||||||||||||||||||
Gross amounts not offset in the balance sheet: | ||||||||||||||||||||||||||||||||||||||||||||||||
Financial instruments | (5 | ) | (5 | ) | 0 | (7 | ) | (7 | ) | 0 | (42 | ) | (42 | ) | 0 | (20 | ) | (20 | ) | 0 | ||||||||||||||||||||||||||||
Collateral received | (663 | ) | 0 | (663 | ) | (179 | ) | 0 | (179 | ) | (238 | ) | 0 | (238 | ) | (401 | ) | 0 | (401 | ) | ||||||||||||||||||||||||||||
Collateral pledged | 0 | (489 | ) | 489 | 0 | (405 | ) | 405 | 0 | (625 | ) | 625 | 0 | (505 | ) | 505 | ||||||||||||||||||||||||||||||||
Over collateralization | 13 | 485 | (472 | ) | 18 | 401 | (383 | ) | 3 | 612 | (609 | ) | 2 | 499 | (497 | ) | ||||||||||||||||||||||||||||||||
Net amount | $ | 149 | $ | 0 | $ | 149 | $ | 123 | $ | 0 | $ | 123 | $ | 76 | $ | 0 | $ | 76 | $ | 155 | $ | 0 | $ | 155 | ||||||||||||||||||||||||
(1) |
Does not include amounts related to embedded derivatives as of |
Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each |
(Amounts in millions) | Fair value | Primary methodologies | Significant inputs | Fair value | Primary methodologies | Significant inputs | ||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 4,792 | Price quotes from trading desk, broker feeds | Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread | ||||||||||||
U.S. government, agencies andgovernment-sponsored enterprises | $ | 4,484 | Price quotes from trading desk, broker feeds | Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread | ||||||||||||
State and political subdivisions | $ | 3,058 | Multi-dimensional attribute-based modeling systems, third-party pricing vendors | Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes | $ | 3,296 | Multi-dimensional attribute-based modeling systems, third-party pricing vendors | Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes | ||||||||
Non-U.S. government | $ | 1,395 | Matrix pricing, spread priced to benchmark curves, price quotes from market makers | Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | $ | 802 | Matrix pricing, spread priced to benchmark curves, price quotes from market makers | Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | ||||||||
U.S. corporate | $ | 31,695 | Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, OAS-based models | Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports | $ | 31,509 | Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, OAS-based models | Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports | ||||||||
Non-U.S. corporate | $ | 9,220 | Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers | Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | $ | 8,510 | Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers | Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | ||||||||
Residential mortgage-backed | $ | 2,061 | OAS-based models, single factor binomial models, internally priced | Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports | $ | 1,678 | OAS-based models, single factor binomial models, internally priced | Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports | ||||||||
Commercial mortgage-backed | $ | 2,956 | Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model | Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports | $ | 2,714 | Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage- backed securities analytics model | Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports | ||||||||
Other asset-backed | $ | 3,125 | Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers | Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports | $ | 2,446 | Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers | Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports |
September 30, 2020 | June 30, 2021 | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Total | Level | Level 2 | Level | NAV (1) | Total | Level 1 | Level 2 | Level 3 | NAV (1) | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 4,792 | $ | 0 | $ | 4,792 | $ | 0 | $ | 0 | $ | 4,484 | $ | 0 | $ | 4,484 | $ | 0 | $ | 0 | ||||||||||||||||||||
State and political subdivisions | 3,115 | 0 | 3,058 | 57 | 0 | 3,371 | 0 | 3,296 | 75 | 0 | ||||||||||||||||||||||||||||||
Non-U.S. government | 1,395 | 0 | 1,395 | 0 | 0 | 802 | 0 | 802 | 0 | 0 | ||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 5,217 | 0 | 4,376 | 841 | 0 | 5,091 | 0 | 4,249 | 842 | 0 | ||||||||||||||||||||||||||||||
Energy | 2,765 | 0 | 2,651 | 114 | 0 | 2,952 | 0 | 2,875 | 77 | 0 | ||||||||||||||||||||||||||||||
Finance and insurance | 8,735 | 0 | 8,204 | 531 | 0 | 8,989 | 0 | 8,328 | 661 | 0 | ||||||||||||||||||||||||||||||
Consumer—non-cyclical | 6,368 | 0 | 6,265 | 103 | 0 | 6,224 | 0 | 6,115 | 109 | 0 | ||||||||||||||||||||||||||||||
Technology and communications | 3,527 | 0 | 3,401 | 126 | 0 | 3,754 | 0 | 3,724 | 30 | 0 | ||||||||||||||||||||||||||||||
Industrial | 1,551 | 0 | 1,511 | 40 | 0 | 1,572 | 0 | 1,552 | 20 | 0 | ||||||||||||||||||||||||||||||
Capital goods | 3,057 | 0 | 2,960 | 97 | 0 | 2,870 | 0 | 2,811 | 59 | 0 | ||||||||||||||||||||||||||||||
Consumer—cyclical | 2,044 | 0 | 1,874 | 170 | 0 | 1,994 | 0 | 1,855 | 139 | 0 | ||||||||||||||||||||||||||||||
Transportation | 1,581 | 0 | 1,527 | 54 | 0 | 1,409 | 0 | 1,342 | 67 | 0 | ||||||||||||||||||||||||||||||
Other | 389 | 0 | 225 | 164 | 0 | 434 | 0 | 236 | 198 | 0 | ||||||||||||||||||||||||||||||
Total U.S. corporate | 35,234 | 0 | 32,994 | 2,240 | 0 | 35,289 | 0 | 33,087 | 2,202 | 0 | ||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 935 | 0 | 588 | 347 | 0 | 945 | 0 | 597 | 348 | 0 | ||||||||||||||||||||||||||||||
Energy | 1,348 | 0 | 1,111 | 237 | 0 | 1,399 | 0 | 1,247 | 152 | 0 | ||||||||||||||||||||||||||||||
Finance and insurance | 2,618 | 0 | 2,314 | 304 | 0 | 2,400 | 0 | 2,198 | 202 | 0 | ||||||||||||||||||||||||||||||
Consumer—non-cyclical | 806 | 0 | 752 | 54 | 0 | 745 | 0 | 671 | 74 | 0 | ||||||||||||||||||||||||||||||
Technology and communications | 1,256 | 0 | 1,228 | 28 | 0 | 1,284 | 0 | 1,256 | 28 | 0 | ||||||||||||||||||||||||||||||
Industrial | 1,068 | 0 | 975 | 93 | 0 | 1,140 | 0 | 1,046 | 94 | 0 | ||||||||||||||||||||||||||||||
Capital goods | 626 | 0 | 453 | 173 | 0 | 642 | 0 | 461 | 181 | 0 | ||||||||||||||||||||||||||||||
Consumer—cyclical | 436 | 0 | 269 | 167 | 0 | 353 | 0 | 206 | 147 | 0 | ||||||||||||||||||||||||||||||
Transportation | 648 | 0 | 537 | 111 | 0 | 541 | 0 | 458 | 83 | 0 | ||||||||||||||||||||||||||||||
Other | 1,802 | 0 | 1,666 | 136 | 0 | 1,295 | 0 | 1,242 | 53 | 0 | ||||||||||||||||||||||||||||||
Total non-U.S. corporate | 11,543 | 0 | 9,893 | 1,650 | 0 | 10,744 | 0 | 9,382 | 1,362 | 0 | ||||||||||||||||||||||||||||||
Residential mortgage-backed | 2,075 | 0 | 2,061 | 14 | 0 | 1,691 | 0 | 1,678 | 13 | 0 | ||||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,976 | 0 | 2,956 | 20 | 0 | 2,734 | 0 | 2,714 | 20 | 0 | ||||||||||||||||||||||||||||||
Other asset-backed | 3,286 | 0 | 3,125 | 161 | 0 | 2,534 | 0 | 2,446 | 88 | 0 | ||||||||||||||||||||||||||||||
Total fixed maturity securities | 64,416 | 0 | 60,274 | 4,142 | 0 | 61,649 | 0 | 57,889 | 3,760 | 0 | ||||||||||||||||||||||||||||||
Equity securities | 629 | 465 | 112 | 52 | 0 | 147 | 48 | 61 | 38 | 0 | ||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 708 | 0 | 708 | 0 | 0 | 280 | 0 | 280 | 0 | 0 | ||||||||||||||||||||||||||||||
Foreign currency swaps | 10 | 0 | 10 | 0 | 0 | 2 | 0 | 2 | 0 | 0 | ||||||||||||||||||||||||||||||
Equity index options | 67 | 0 | 0 | 67 | 0 | 47 | 0 | 0 | 47 | 0 | ||||||||||||||||||||||||||||||
Other foreign currency contracts | 19 | 0 | 19 | 0 | 0 | 24 | 0 | 24 | 0 | 0 | ||||||||||||||||||||||||||||||
Total derivative assets | 804 | 0 | 737 | 67 | 0 | 353 | 0 | 306 | 47 | 0 | ||||||||||||||||||||||||||||||
Securities lending collateral | 75 | 0 | 75 | 0 | 0 | 105 | 0 | 105 | 0 | 0 | ||||||||||||||||||||||||||||||
Short-term investments | 251 | 0 | 251 | 0 | 0 | 121 | 0 | 121 | 0 | 0 | ||||||||||||||||||||||||||||||
Limited partnerships | 674 | 0 | 0 | 0 | 674 | 1,070 | 0 | 0 | 0 | 1,070 | ||||||||||||||||||||||||||||||
Total other invested assets | 1,804 | 0 | 1,063 | 67 | 674 | 1,649 | 0 | 532 | 47 | 1,070 | ||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 35 | 0 | 0 | 35 | 0 | 18 | 0 | 0 | 18 | 0 | ||||||||||||||||||||||||||||||
Separate account assets | 5,700 | 5,700 | 0 | 0 | 0 | 6,202 | 6,202 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Total assets | $ | 72,584 | $ | 6,165 | $ | 61,449 | $ | 4,296 | $ | 674 | $ | 69,665 | $ | 6,250 | $ | 58,482 | $ | 3,863 | $ | 1,070 | ||||||||||||||||||||
(1) | Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. |
(2) | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
December 31, 2019 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | NAV (1) | Total | Level 1 | Level 2 | Level 3 | NAV (1) | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 5,025 | $ | 0 | $ | 5,025 | $ | 0 | $ | 0 | $ | 4,805 | $ | 0 | $ | 4,805 | $ | 0 | $ | 0 | ||||||||||||||||||||
State and political subdivisions | 2,747 | 0 | 2,645 | 102 | 0 | 3,165 | 0 | 3,099 | 66 | 0 | ||||||||||||||||||||||||||||||
Non-U.S. government | 1,350 | 0 | 1,350 | 0 | 0 | 854 | 0 | 854 | 0 | 0 | ||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 4,997 | 0 | 4,132 | 865 | 0 | 5,194 | 0 | 4,352 | 842 | 0 | ||||||||||||||||||||||||||||||
Energy | 2,699 | 0 | 2,570 | 129 | 0 | 2,883 | 0 | 2,755 | 128 | 0 | ||||||||||||||||||||||||||||||
Finance and insurance | 7,774 | 0 | 7,202 | 572 | 0 | 9,102 | 0 | 8,495 | 607 | 0 | ||||||||||||||||||||||||||||||
Consumer—non-cyclical | 5,701 | 0 | 5,607 | 94 | 0 | 6,437 | 0 | 6,328 | 109 | 0 | ||||||||||||||||||||||||||||||
Technology and communications | 3,245 | 0 | 3,195 | 50 | 0 | 3,761 | 0 | 3,714 | 47 | 0 | ||||||||||||||||||||||||||||||
Industrial | 1,396 | 0 | 1,356 | 40 | 0 | 1,602 | 0 | 1,562 | 40 | 0 | ||||||||||||||||||||||||||||||
Capital goods | 2,711 | 0 | 2,609 | 102 | 0 | 2,991 | 0 | 2,931 | 60 | 0 | ||||||||||||||||||||||||||||||
Consumer—cyclical | 1,760 | 0 | 1,587 | 173 | 0 | 1,947 | 0 | 1,797 | 150 | 0 | ||||||||||||||||||||||||||||||
Transportation | 1,506 | 0 | 1,428 | 78 | 0 | 1,500 | 0 | 1,430 | 70 | 0 | ||||||||||||||||||||||||||||||
Other | 322 | 0 | 186 | 136 | 0 | 440 | 0 | 221 | 219 | 0 | ||||||||||||||||||||||||||||||
Total U.S. corporate | 32,111 | 0 | 29,872 | 2,239 | 0 | 35,857 | 0 | 33,585 | 2,272 | 0 | ||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 829 | 0 | 455 | 374 | 0 | 922 | 0 | 570 | 352 | 0 | ||||||||||||||||||||||||||||||
Energy | 1,319 | 0 | 1,072 | 247 | 0 | 1,380 | 0 | 1,135 | 245 | 0 | ||||||||||||||||||||||||||||||
Finance and insurance | 2,319 | 0 | 2,085 | 234 | 0 | 2,476 | 0 | 2,171 | 305 | 0 | ||||||||||||||||||||||||||||||
Consumer—non-cyclical | 684 | 0 | 625 | 59 | 0 | 773 | 0 | 706 | 67 | 0 | ||||||||||||||||||||||||||||||
Technology and communications | 1,138 | 0 | 1,110 | 28 | 0 | 1,291 | 0 | 1,263 | 28 | 0 | ||||||||||||||||||||||||||||||
Industrial | 988 | 0 | 884 | 104 | 0 | 1,128 | 0 | 1,033 | 95 | 0 | ||||||||||||||||||||||||||||||
Capital goods | 605 | 0 | 444 | 161 | 0 | 576 | 0 | 398 | 178 | 0 | ||||||||||||||||||||||||||||||
Consumer—cyclical | 397 | 0 | 250 | 147 | 0 | 371 | 0 | 225 | 146 | 0 | ||||||||||||||||||||||||||||||
Transportation | 629 | 0 | 438 | 191 | 0 | 570 | 0 | 461 | 109 | 0 | ||||||||||||||||||||||||||||||
Other | 1,617 | 0 | 1,477 | 140 | 0 | 1,324 | 0 | 1,241 | 83 | 0 | ||||||||||||||||||||||||||||||
Total non-U.S. corporate | 10,525 | 0 | 8,840 | 1,685 | 0 | 10,811 | 0 | 9,203 | 1,608 | 0 | ||||||||||||||||||||||||||||||
Residential mortgage-backed | 2,270 | 0 | 2,243 | 27 | 0 | 1,909 | 0 | 1,895 | 14 | 0 | ||||||||||||||||||||||||||||||
Commercial mortgage-backed | 3,026 | 0 | 3,020 | 6 | 0 | 2,974 | 0 | 2,954 | 20 | 0 | ||||||||||||||||||||||||||||||
Other asset-backed | 3,285 | 0 | 3,153 | 132 | 0 | 3,120 | 0 | 3,011 | 109 | 0 | ||||||||||||||||||||||||||||||
Total fixed maturity securities | 60,339 | 0 | 56,148 | 4,191 | 0 | 63,495 | 0 | 59,406 | 4,089 | 0 | ||||||||||||||||||||||||||||||
Equity securities | 239 | 62 | 126 | 51 | 0 | 386 | 276 | 59 | 51 | 0 | ||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 197 | 0 | 197 | 0 | 0 | 468 | 0 | 468 | 0 | 0 | ||||||||||||||||||||||||||||||
Foreign currency swaps | 4 | 0 | 4 | 0 | 0 | 1 | 0 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
Equity index options | 81 | 0 | 0 | 81 | 0 | 63 | 0 | 0 | 63 | 0 | ||||||||||||||||||||||||||||||
Other foreign currency contracts | 8 | 0 | 8 | 0 | 0 | 42 | 0 | 42 | 0 | 0 | ||||||||||||||||||||||||||||||
Total derivative assets | 290 | 0 | 209 | 81 | 0 | 574 | 0 | 511 | 63 | 0 | ||||||||||||||||||||||||||||||
Securities lending collateral | 51 | 0 | 51 | 0 | 0 | 67 | 0 | 67 | 0 | 0 | ||||||||||||||||||||||||||||||
Short-term investments | 211 | 0 | 211 | 0 | 0 | 45 | 25 | 20 | 0 | 0 | ||||||||||||||||||||||||||||||
Limited partnerships | 503 | 0 | 0 | 0 | 503 | 835 | 0 | 0 | 0 | 835 | ||||||||||||||||||||||||||||||
Total other invested assets | 1,055 | 0 | 471 | 81 | 503 | 1,521 | 25 | 598 | 63 | 835 | ||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 20 | 0 | 0 | 20 | 0 | 26 | 0 | 0 | 26 | 0 | ||||||||||||||||||||||||||||||
Separate account assets | 6,108 | 6,108 | 0 | 0 | 0 | 6,081 | 6,081 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Total assets | $ | 67,761 | $ | 6,170 | $ | 56,745 | $ | 4,343 | $ | 503 | $ | 71,509 | $ | 6,382 | $ | 60,063 | $ | 4,229 | $ | 835 | ||||||||||||||||||||
(1) | Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. |
(2) | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
(Amounts in millions) | Beginning balance as of April 1, 2021 | Total realized and unrealized gains (losses) | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Ending balance as of June 30, 2021 | Total gains (losses) attributable to assets still held | ||||||||||||||||||||||||||||||||||||||
Included in net income (loss) | Included in OCI | Included in net income (loss) | Included in OCI | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 68 | $ | 1 | $ | 6 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 75 | $ | 1 | $ | 6 | ||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 793 | 0 | 23 | 8 | 0 | 0 | (1 | ) | 19 | 0 | 842 | 0 | 23 | |||||||||||||||||||||||||||||||||||
Energy | 122 | 0 | 8 | 0 | 0 | 0 | (1 | ) | 0 | (52 | ) | 77 | 0 | 4 | ||||||||||||||||||||||||||||||||||
Finance and insurance | 597 | 0 | 17 | 55 | 0 | 0 | (8 | ) | 0 | 0 | 661 | 0 | 17 | |||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 106 | 0 | 2 | 0 | 0 | 0 | (2 | ) | 3 | 0 | 109 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Technology and communications | 40 | 0 | 2 | 0 | 0 | 0 | 0 | 0 | (12 | ) | 30 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Industrial | 20 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Capital goods | 58 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 59 | 0 | 1 | ||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 147 | 0 | 1 | 0 | 0 | 0 | (1 | ) | 0 | (8 | ) | 139 | 0 | 1 | ||||||||||||||||||||||||||||||||||
Transportation | 67 | 0 | 1 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 67 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Other | 200 | 0 | 0 | 0 | 0 | 0 | (2 | ) | 0 | 0 | 198 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,150 | 0 | 55 | 63 | 0 | 0 | (16 | ) | 22 | (72 | ) | 2,202 | 0 | 50 | ||||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 375 | 0 | 5 | 0 | 0 | 0 | (8 | ) | 0 | (24 | ) | 348 | 0 | 4 | ||||||||||||||||||||||||||||||||||
Energy | 243 | 0 | 10 | 0 | 0 | 0 | (22 | ) | 0 | (79 | ) | 152 | 0 | 5 | ||||||||||||||||||||||||||||||||||
Finance and insurance | 290 | 0 | 17 | 0 | (2 | ) | 0 | (52 | ) | 0 | (51 | ) | 202 | 1 | 5 | |||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 66 | 0 | 0 | 8 | 0 | 0 | 0 | 0 | 0 | 74 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Technology and communications | 28 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Industrial | 93 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 94 | 0 | 1 | ||||||||||||||||||||||||||||||||||||
Capital goods | 175 | 0 | 1 | 5 | 0 | 0 | 0 | 0 | 0 | 181 | 0 | 2 | ||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 144 | 0 | 2 | 1 | 0 | 0 | 0 | 0 | 0 | 147 | 0 | 2 | ||||||||||||||||||||||||||||||||||||
Transportation | 82 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 83 | 0 | 2 | ||||||||||||||||||||||||||||||||||||
Other | 80 | 0 | 1 | �� | 0 | 0 | 0 | (13 | ) | 0 | (15 | ) | 53 | 0 | 1 | |||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,576 | 0 | 38 | 14 | (2 | ) | 0 | (95 | ) | 0 | (169 | ) | 1,362 | 1 | 22 | |||||||||||||||||||||||||||||||||
Residential mortgage-backed | 13 | 0 | 1 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 13 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 19 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 20 | 0 | 1 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | 96 | 0 | 1 | 0 | 0 | 0 | (5 | ) | 0 | (4 | ) | 88 | 0 | 1 | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,922 | 1 | 101 | 78 | (2 | ) | 0 | (117 | ) | 22 | (245 | ) | 3,760 | 2 | 80 | |||||||||||||||||||||||||||||||||
Equity securities | 43 | 0 | 0 | 0 | 0 | 0 | (5 | ) | 0 | 0 | 38 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 53 | 6 | 0 | 5 | 0 | 0 | (17 | ) | 0 | 0 | 47 | 2 | 0 | |||||||||||||||||||||||||||||||||||
Total derivative assets | 53 | 6 | 0 | 5 | 0 | 0 | (17 | ) | 0 | 0 | 47 | 2 | 0 | |||||||||||||||||||||||||||||||||||
Total other invested assets | 53 | 6 | 0 | 5 | 0 | 0 | (17 | ) | 0 | 0 | 47 | 2 | 0 | |||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 18 | (1 | ) | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 18 | (1 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 4,036 | $ | 6 | $ | 101 | $ | 83 | $ | (2 | ) | $ | 1 | $ | (139 | ) | $ | 22 | $ | (245 | ) | $ | 3,863 | $ | 3 | $ | 80 | |||||||||||||||||||||
Beginning balance as of July 1, 2020 | Total realized and unrealized gains (losses) | Ending balance as of September 30, 2020 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income (loss) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Included in net income (loss) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 63 | $ | 1 | $ | (7 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 57 | $ | 1 | $ | (6 | ) | ||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 936 | 10 | (4 | ) | 15 | 0 | 0 | (52 | ) | 0 | (64 | ) | 841 | 0 | 1 | |||||||||||||||||||||||||||||||||
Energy | 123 | 0 | 0 | 7 | 0 | 0 | (16 | ) | 0 | 0 | 114 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Finance and insurance | 551 | 0 | 2 | 71 | 0 | 0 | (16 | ) | 0 | (77 | ) | 531 | 0 | 2 | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 103 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 103 | 0 | 1 | ||||||||||||||||||||||||||||||||||||
Technology and communications | 66 | 0 | 3 | 57 | 0 | 0 | 0 | 0 | 0 | 126 | 0 | 3 | ||||||||||||||||||||||||||||||||||||
Industrial | 39 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 40 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Capital goods | 97 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 97 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Consumer— cyclical | 198 | 3 | (1 | ) | 0 | 0 | 0 | (30 | ) | 0 | 0 | 170 | 0 | 1 | ||||||||||||||||||||||||||||||||||
Transportation | 54 | 0 | 1 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 54 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Other | 165 | 0 | 0 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 164 | 0 �� | 0 | |||||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,332 | 13 | 2 | 150 | 0 | 0 | (116 | ) | 0 | (141 | ) | 2,240 | 0 | 9 | ||||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 357 | 0 | 4 | 0 | 0 | 0 | 0 | 6 | (20 | ) | 347 | 0 | 3 | |||||||||||||||||||||||||||||||||||
Energy | 237 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 237 | 0 | 1 | ||||||||||||||||||||||||||||||||||||
Finance and insurance | 311 | 1 | (2 | ) | 0 | 0 | 0 | 0 | 19 | (25 | ) | 304 | 1 | (2 | ) | |||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 54 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 54 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Technology and communications | 28 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Industrial | 92 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 93 | 0 | 1 | ||||||||||||||||||||||||||||||||||||
Capital goods | 173 | 0 | 0 | 10 | 0 | 0 | (10 | ) | 0 | 0 | 173 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 156 | 0 | 4 | 17 | 0 | 0 | 0 | 0 | (10 | ) | 167 | 0 | 4 | |||||||||||||||||||||||||||||||||||
Transportation | 141 | 0 | (2 | ) | 0 | 0 | 0 | 0 | 0 | (28 | ) | 111 | 0 | (3 | ) | |||||||||||||||||||||||||||||||||
Other | 145 | 0 | 3 | 0 | 0 | 0 | (12 | ) | 0 | 0 | 136 | 0 | 3 | |||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,694 | 1 | 8 | 27 | 0 | 0 | (22 | ) | 25 | (83 | ) | 1,650 | 1 | 6 | ||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 24 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | (9 | ) | 14 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 21 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 20 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Other asset-backed | 121 | 0 | 1 | 78 | 0 | 0 | (10 | ) | 0 | (29 | ) | 161 | 0 | 1 | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 4,255 | 15 | 2 | 255 | 0 | 0 | (148 | ) | 25 | (262 | ) | 4,142 | 2 | 10 | ||||||||||||||||||||||||||||||||||
Equity securities | 53 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 52 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 66 | 7 | 0 | 27 | 0 | 0 | (33 | ) | 0 | 0 | 67 | (1 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total derivative assets | 66 | 7 | 0 | 27 | 0 | 0 | (33 | ) | 0 | 0 | 67 | (1 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total other invested assets | 66 | 7 | 0 | 27 | 0 | 0 | (33 | ) | 0 | 0 | 67 | (1 | ) | 0 | ||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 38 | (3 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 35 | (3 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 4,412 | $ | 19 | $ | 2 | $ | 282 | $ | (1 | ) | $ | 0 | $ | (181 | ) | $ | 25 | $ | (262 | ) | $ | 4,296 | $ | (2 | ) | $ | 10 | ||||||||||||||||||||
(1) | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
(2) | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
(Amounts in millions) | Beginning balance as of April 1, 2020 | Total realized and unrealized gains (losses) | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Ending balance as of June 30, 2020 | Total gains (losses) attributable to assets still held | ||||||||||||||||||||||||||||||||||||||
Included in net income (loss) | Included in OCI | Included in net income (loss) | Included in OCI | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 83 | $ | 0 | $ | 7 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (27 | ) | $ | 63 | $ | 1 | $ | 6 | |||||||||||||||||||||||
Non-U.S. government | 1 | 0 | 0 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 843 | 0 | 37 | 32 | 0 | 0 | (2 | ) | 26 | 0 | 936 | 0 | 37 | |||||||||||||||||||||||||||||||||||
Energy | 124 | 1 | 13 | 0 | 0 | 0 | (2 | ) | 0 | (13 | ) | 123 | 0 | 9 | ||||||||||||||||||||||||||||||||||
Finance and insurance | 510 | 0 | 33 | 21 | 0 | 0 | (12 | ) | 0 | (1 | ) | 551 | 0 | 33 | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 88 | 0 | 8 | 8 | 0 | 0 | (1 | ) | 0 | 0 | 103 | 0 | 8 | |||||||||||||||||||||||||||||||||||
Technology and communications | 61 | 0 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 66 | 0 | 5 | ||||||||||||||||||||||||||||||||||||
Industrial | 37 | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 39 | 0 | 2 | ||||||||||||||||||||||||||||||||||||
Capital goods | 90 | 0 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 97 | 0 | 7 | ||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 179 | 0 | 11 | 0 | 0 | 0 | (1 | ) | 9 | 0 | 198 | 0 | 11 | |||||||||||||||||||||||||||||||||||
Transportation | 43 | 0 | 2 | 0 | 0 | 0 | (1 | ) | 10 | 0 | 54 | 0 | 2 | |||||||||||||||||||||||||||||||||||
Other | 138 | 0 | 2 | 0 | 0 | 0 | (2 | ) | 27 | 0 | 165 | 0 | 2 | |||||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,113 | 1 | 120 | 61 | 0 | 0 | (21 | ) | 72 | (14 | ) | 2,332 | 0 | 116 | ||||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 355 | 0 | 23 | 1 | 0 | 0 | 0 | 0 | (22 | ) | 357 | 0 | 23 | |||||||||||||||||||||||||||||||||||
Energy | 236 | 0 | 22 | 0 | 0 | 0 | (26 | ) | 5 | 0 | 237 | 0 | 22 | |||||||||||||||||||||||||||||||||||
Finance and insurance | 223 | 1 | 50 | 0 | 0 | 0 | 0 | 37 | 0 | 311 | 1 | 49 | ||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 58 | 0 | 5 | 0 | 0 | 0 | 0 | 0 | (9 | ) | 54 | 0 | 4 | |||||||||||||||||||||||||||||||||||
Technology and communications | 27 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 28 | 0 | 1 | ||||||||||||||||||||||||||||||||||||
Industrial | 92 | 0 | 8 | 0 | 0 | 0 | 0 | 0 | (8 | ) | 92 | 0 | 7 | |||||||||||||||||||||||||||||||||||
Capital goods | 135 | 0 | 9 | 0 | 0 | 0 | 0 | 29 | 0 | 173 | 0 | 9 | ||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 164 | 0 | 12 | 0 | 0 | 0 | (3 | ) | 0 | (17 | ) | 156 | 0 | 11 | ||||||||||||||||||||||||||||||||||
Transportation | 108 | 0 | 11 | 0 | 0 | 0 | 0 | 22 | 0 | 141 | 0 | 11 | ||||||||||||||||||||||||||||||||||||
Other | 131 | 0 | 9 | 5 | 0 | 0 | 0 | 0 | 0 | 145 | 0 | 9 | ||||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,529 | 1 | 150 | 6 | 0 | 0 | (29 | ) | 93 | (56 | ) | 1,694 | 1 | 146 | ||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 24 | 0 | 1 | 0 | 0 | 0 | (1 | ) | 3 | (3 | ) | 24 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 20 | 0 | 21 | 0 | 1 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | 87 | 0 | 2 | 2 | 0 | 0 | (1 | ) | 0 | 0 | 90 | 0 | 3 | |||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,837 | 2 | 281 | 69 | 0 | 0 | (53 | ) | 188 | (100 | ) | 4,224 | 2 | 272 | ||||||||||||||||||||||||||||||||||
Equity securities | 50 | 0 | 0 | 6 | (3 | ) | 0 | 0 | 0 | 0 | 53 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 62 | 4 | 0 | 7 | 0 | 0 | (7 | ) | 0 | 0 | 66 | 8 | 0 | |||||||||||||||||||||||||||||||||||
Total derivative assets | 62 | 4 | 0 | 7 | 0 | 0 | (7 | ) | 0 | 0 | 66 | 8 | 0 | |||||||||||||||||||||||||||||||||||
Total other invested assets | 62 | 4 | 0 | 7 | 0 | 0 | (7 | ) | 0 | 0 | 66 | 8 | 0 | |||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 47 | (9 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 38 | (9 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,996 | $ | (3 | ) | $ | 281 | $ | 82 | $ | (3 | ) | $ | 0 | $ | (60 | ) | $ | 188 | $ | (100 | ) | $ | 4,381 | $ | 1 | $ | 272 | ||||||||||||||||||||
Beginning balance as of July 1, 2019 | Total realized and unrealized gains (losses) | Ending balance as of September 30, 2019 | Total gains (losses) included in net income (loss) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income (loss) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 61 | $ | 0 | $ | 11 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 72 | $ | 1 | ||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||
Utilities | 789 | 1 | 28 | 13 | 0 | 0 | (7 | ) | 0 | 0 | 824 | 0 | ||||||||||||||||||||||||||||||||
Energy | 122 | 0 | 2 | 12 | 0 | 0 | (1 | ) | 0 | 0 | 135 | 0 | ||||||||||||||||||||||||||||||||
Finance and insurance | 607 | 0 | 11 | 0 | 0 | 0 | (26 | ) | 20 | 0 | 612 | 0 | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 89 | 0 | 1 | 9 | 0 | 0 | (1 | ) | 0 | 0 | 98 | 0 | ||||||||||||||||||||||||||||||||
Technology and communications | 44 | 0 | 1 | 0 | 0 | 0 | 0 | 5 | 0 | 50 | 0 | |||||||||||||||||||||||||||||||||
Industrial | 40 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40 | 0 | |||||||||||||||||||||||||||||||||
Capital goods | 98 | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 100 | 0 | |||||||||||||||||||||||||||||||||
Consumer—cyclical | 185 | 0 | 2 | 0 | 0 | 0 | (2 | ) | 0 | (9 | ) | 176 | 0 | |||||||||||||||||||||||||||||||
Transportation | 54 | 0 | 1 | 3 | 0 | 0 | (1 | ) | 0 | 0 | 57 | 0 | ||||||||||||||||||||||||||||||||
Other | 199 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (31 | ) | 168 | 0 | ||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,227 | 1 | 48 | 37 | 0 | 0 | (38 | ) | 25 | (40 | ) | 2,260 | 0 | |||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||
Utilities | 417 | 0 | 5 | 0 | 0 | 0 | (25 | ) | 0 | 0 | 397 | 0 | ||||||||||||||||||||||||||||||||
Energy | 241 | 0 | 5 | 31 | 0 | 0 | (12 | ) | 0 | 0 | 265 | 0 | ||||||||||||||||||||||||||||||||
Finance and insurance | 179 | 1 | 4 | 0 | 0 | 0 | (3 | ) | 16 | 0 | 197 | 1 | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 68 | 0 | 1 | 0 | 0 | 0 | (5 | ) | 0 | 0 | 64 | 0 | ||||||||||||||||||||||||||||||||
Technology and communications | 27 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 28 | 0 | |||||||||||||||||||||||||||||||||
Industrial | 64 | 0 | 0 | 13 | 0 | 0 | 0 | 0 | 0 | 77 | 0 | |||||||||||||||||||||||||||||||||
Capital goods | 181 | 0 | 2 | 0 | 0 | 0 | (4 | ) | 0 | 0 | 179 | 0 | ||||||||||||||||||||||||||||||||
Consumer—cyclical | 126 | 0 | 2 | 9 | 0 | 0 | 0 | 0 | 0 | 137 | 0 | |||||||||||||||||||||||||||||||||
Transportation | 199 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 200 | 0 | |||||||||||||||||||||||||||||||||
Other | 129 | 0 | 3 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 131 | 0 | ||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,631 | 1 | 24 | 53 | 0 | 0 | (50 | ) | 16 | 0 | 1,675 | 1 | ||||||||||||||||||||||||||||||||
Residential mortgage-backed | 36 | 0 | 1 | 0 | 0 | 0 | (1 | ) | 0 | (4 | ) | 32 | 0 | |||||||||||||||||||||||||||||||
Commercial mortgage-backed | 92 | 0 | 14 | 0 | 0 | 0 | 0 | 0 | 0 | 106 | 0 | |||||||||||||||||||||||||||||||||
Other asset-backed | 234 | 0 | 0 | 13 | 0 | 0 | (11 | ) | 0 | (106 | ) | 130 | 0 | |||||||||||||||||||||||||||||||
Total fixed maturity securities | 4,281 | 2 | 98 | 103 | 0 | 0 | (100 | ) | 41 | (150 | ) | 4,275 | 2 | |||||||||||||||||||||||||||||||
Equity securities | 56 | 0 | 0 | 0 | (2 | ) | 0 | 0 | 0 | 0 | 54 | 0 | ||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 65 | 1 | 0 | 13 | 0 | 0 | (17 | ) | 0 | 0 | 62 | 0 | ||||||||||||||||||||||||||||||||
Total derivative assets | 65 | 1 | 0 | 13 | 0 | 0 | (17 | ) | 0 | 0 | 62 | 0 | ||||||||||||||||||||||||||||||||
Total other invested assets | 65 | 1 | 0 | 13 | 0 | 0 | (17 | ) | 0 | 0 | 62 | 0 | ||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 20 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 25 | 5 | |||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 4,422 | $ | 8 | $ | 98 | $ | 116 | $ | (2 | ) | $ | 0 | $ | (117 | ) | $ | 41 | $ | (150 | ) | $ | 4,416 | $ | 7 | |||||||||||||||||||
(1) | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
(2) | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
(Amounts in millions) | Beginning balance as of January 1, 2021 | Total realized unrealized (losses) | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Ending balance as of June 30, 2021 | Total gains (losses) attributable to assets still held | ||||||||||||||||||||||||||||||||||||||
Included in net income (loss) | Included in OCI | Included in net income (loss) | Included in OCI | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 66 | $ | 2 | $ | 7 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 75 | $ | 2 | $ | 7 | ||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 842 | 0 | (7 | ) | 16 | 0 | 0 | (14 | ) | 19 | (14 | ) | 842 | 0 | (6 | ) | ||||||||||||||||||||||||||||||||
Energy | 128 | 0 | 4 | 0 | 0 | 0 | (3 | ) | 0 | (52 | ) | 77 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Finance and insurance | 607 | 0 | (5 | ) | 73 | 0 | 0 | (25 | ) | 17 | (6 | ) | 661 | 0 | (5 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 109 | 0 | (1 | ) | 0 | 0 | 0 | (2 | ) | 3 | 0 | 109 | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
Technology and communications | 47 | 0 | 0 | 12 | 0 | 0 | 0 | 4 | (33 | ) | 30 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 40 | 0 | 0 | 0 | 0 | 0 | (20 | ) | 0 | 0 | 20 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Capital goods | 60 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 59 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 150 | 0 | (1 | ) | 0 | 0 | 0 | (2 | ) | 0 | (8 | ) | 139 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||
Transportation | 70 | 0 | 0 | 0 | 0 | 0 | (3 | ) | 0 | 0 | 67 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Other | 219 | 0 | (2 | ) | 0 | 0 | 0 | (5 | ) | 6 | (20 | ) | 198 | 0 | 0 | |||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,272 | 0 | (13 | ) | 101 | 0 | 0 | (74 | ) | 49 | (133 | ) | 2,202 | 0 | (16 | ) | ||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 352 | 0 | (2 | ) | 30 | 0 | 0 | (8 | ) | 0 | (24 | ) | 348 | 0 | (3 | ) | ||||||||||||||||||||||||||||||||
Energy | 245 | 0 | 8 | 0 | 0 | 0 | (22 | ) | 0 | (79 | ) | 152 | 0 | 3 | ||||||||||||||||||||||||||||||||||
Finance and insurance | 305 | 1 | 1 | 0 | (2 | ) | 0 | (52 | ) | 0 | (51 | ) | 202 | 2 | (11 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 67 | 0 | (1 | ) | 8 | 0 | 0 | 0 | 0 | 0 | 74 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 28 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Industrial | 95 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 94 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||
Capital goods | 178 | 0 | (2 | ) | 5 | 0 | 0 | 0 | 0 | 0 | 181 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 146 | 0 | 0 | 17 | 0 | 0 | 0 | 0 | (16 | ) | 147 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Transportation | 109 | 0 | 0 | 0 | 0 | 0 | (19 | ) | 0 | (7 | ) | 83 | 0 | 1 | ||||||||||||||||||||||||||||||||||
Other | 83 | 0 | (1 | ) | 0 | 0 | 0 | (14 | ) | 0 | (15 | ) | 53 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,608 | 1 | 2 | 60 | (2 | ) | 0 | (115 | ) | 0 | (192 | ) | 1,362 | 2 | (14 | ) | ||||||||||||||||||||||||||||||||
Residential mortgage-backed | 14 | 0 | 0 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 13 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 20 | 0 | (1 | ) | 1 | 0 | 0 | 0 | 0 | 0 | 20 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||
Other asset-backed | 109 | 0 | 1 | 3 | 0 | 0 | (9 | ) | 2 | (18 | ) | 88 | 0 | 1 | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 4,089 | 3 | (4 | ) | 165 | (2 | ) | 0 | (199 | ) | 51 | (343 | ) | 3,760 | 4 | (23 | ) | |||||||||||||||||||||||||||||||
Equity securities | 51 | 0 | 0 | 0 | (8 | ) | 0 | (5 | ) | 0 | 0 | 38 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 63 | 9 | 0 | 10 | 0 | 0 | (35 | ) | 0 | 0 | 47 | 4 | 0 | |||||||||||||||||||||||||||||||||||
Total derivative assets | 63 | 9 | 0 | 10 | 0 | 0 | (35 | ) | 0 | 0 | 47 | 4 | 0 | |||||||||||||||||||||||||||||||||||
Total other invested assets | 63 | 9 | 0 | 10 | 0 | 0 | (35 | ) | 0 | 0 | 47 | 4 | 0 | |||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 26 | (9 | ) | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 18 | (9 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 4,229 | $ | 3 | $ | (4 | ) | $ | 175 | $ | (10 | ) | $ | 1 | $ | (239 | ) | $ | 51 | $ | (343 | ) | $ | 3,863 | $ | (1 | ) | $ | (23 | ) | ||||||||||||||||||
Beginning balance as of January 1, 2020 | Total realized and unrealized gains (losses) | Ending balance as of September 30, 2020 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income (loss) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Included in net income (loss) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 102 | $ | 2 | $ | (19 | ) | $ | 0 | $ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | (27 | ) | $ | 57 | $ | 2 | $ | (19 | ) | ||||||||||||||||||||
Non-U.S. government | 0 | 0 | 0 | 0 | 0 | 0 | (1 | ) | 1 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 865 | 10 | 8 | 47 | 0 | 0 | (54 | ) | 42 | (77 | ) | 841 | 0 | 14 | ||||||||||||||||||||||||||||||||||
Energy | 129 | 1 | (2 | ) | 17 | (21 | ) | 0 | (19 | ) | 22 | (13 | ) | 114 | 0 | (4 | ) | |||||||||||||||||||||||||||||||
Finance and insurance | 572 | 2 | 4 | 92 | 0 | 0 | (40 | ) | 0 | (99 | ) | 531 | 0 | 7 | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 94 | 0 | 2 | 8 | 0 | 0 | (1 | ) | 0 | 0 | 103 | 0 | 3 | |||||||||||||||||||||||||||||||||||
Technology and communications | 50 | 0 | 4 | 77 | 0 | 0 | 0 | 0 | (5 | ) | 126 | 0 | 4 | |||||||||||||||||||||||||||||||||||
Industrial | 40 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Capital goods | 102 | 0 | (1 | ) | 0 | 0 | 0 | (4 | ) | 0 | 0 | 97 | 0 | (1 | ) | |||||||||||||||||||||||||||||||||
Consumer—cyclical | 173 | 3 | 3 | 0 | 0 | 0 | (33 | ) | 24 | 0 | 170 | 0 | 5 | |||||||||||||||||||||||||||||||||||
Transportation | 78 | 0 | (1 | ) | 0 | 0 | 0 | (3 | ) | 10 | (30 | ) | 54 | 0 | 1 | |||||||||||||||||||||||||||||||||
Other | 136 | 0 | 1 | 5 | 0 | 0 | (5 | ) | 27 | 0 | 164 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,239 | 16 | 18 | 246 | (21 | ) | 0 | (159 | ) | 125 | (224 | ) | 2,240 | 0 | 30 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 374 | 0 | 7 | 12 | 0 | 0 | 0 | 27 | (73 | ) | 347 | 0 | 5 | |||||||||||||||||||||||||||||||||||
Energy | 247 | 0 | (8 | ) | 0 | 0 | 0 | (26 | ) | 24 | 0 | 237 | 0 | (7 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 234 | 3 | 7 | 15 | 0 | 0 | 0 | 77 | (32 | ) | 304 | 3 | 8 | |||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 59 | 0 | 2 | 8 | 0 | 0 | 0 | 1 | (16 | ) | 54 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Technology and communications | 28 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Industrial | 104 | 0 | 2 | 0 | 0 | 0 | (5 | ) | 0 | (8 | ) | 93 | 0 | 2 | ||||||||||||||||||||||||||||||||||
Capital goods | 161 | 1 | (2 | ) | 10 | 0 | 0 | (26 | ) | 29 | 0 | 173 | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
Consumer—cyclical | 147 | 0 | 1 | 21 | 0 | 0 | (7 | ) | 32 | (27 | ) | 167 | 0 | (1 | ) | |||||||||||||||||||||||||||||||||
Transportation | 191 | 0 | 0 | 0 | 0 | 0 | 0 | 22 | (102 | ) | 111 | 0 | 3 | |||||||||||||||||||||||||||||||||||
Other | 140 | 0 | 3 | 5 | 0 | 0 | (13 | ) | 1 | 0 | 136 | 0 | 3 | |||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,685 | 4 | 12 | 71 | 0 | 0 | (77 | ) | 213 | (258 | ) | 1,650 | 3 | 12 | ||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 27 | 0 | (1 | ) | 0 | 0 | 0 | (1 | ) | 4 | (15 | ) | 14 | 0 | 0 | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 6 | 0 | 1 | 0 | 0 | 0 | 0 | 20 | (7 | ) | 20 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Other asset-backed | 132 | 0 | (1 | ) | 93 | 0 | 0 | (32 | ) | 0 | (31 | ) | 161 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | 4,191 | 22 | 10 | 410 | (21 | ) | 0 | (271 | ) | 363 | (562 | ) | 4,142 | 5 | 23 | |||||||||||||||||||||||||||||||||
Equity securities | 51 | 0 | 0 | 6 | (5 | ) | 0 | 0 | 0 | 0 | 52 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 81 | (2 | ) | 0 | 45 | 0 | 0 | (57 | ) | 0 | 0 | 67 | 4 | 0 | ||||||||||||||||||||||||||||||||||
Total derivative assets | 81 | (2 | ) | 0 | 45 | 0 | 0 | (57 | ) | 0 | 0 | 67 | 4 | 0 | ||||||||||||||||||||||||||||||||||
Total other invested assets | 81 | (2 | ) | 0 | 45 | 0 | 0 | (57 | ) | 0 | 0 | 67 | 4 | 0 | ||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 20 | 14 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 35 | 14 | 0 | ||||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 4,343 | $ | 34 | $ | 10 | $ | 461 | $ | (26 | ) | $ | 1 | $ | (328 | ) | $ | 363 | $ | (562 | ) | $ | 4,296 | $ | 23 | $ | 23 | |||||||||||||||||||||
(1) | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
(2) | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
(Amounts in millions) | Beginning balance as of January 1, 2020 | Total realized | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Ending balance as of June 30, 2020 | Total gains (losses) attributable to assets still held | ||||||||||||||||||||||||||||||||||||||
Included in net income (loss) | Included in OCI | Included in net income (loss) | Included in OCI | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 102 | $ | 1 | $ | (12 | ) | $ | 0 | $ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | (27 | ) | $ | 63 | $ | 2 | $ | (13 | ) | ||||||||||||||||||||
Non-U.S. government | 0 | 0 | 0 | 0 | 0 | 0 | (1 | ) | 1 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 865 | 0 | 12 | 32 | 0 | 0 | (2 | ) | 42 | (13 | ) | 936 | 0 | 14 | ||||||||||||||||||||||||||||||||||
Energy | 129 | 1 | (2 | ) | 10 | (21 | ) | 0 | (3 | ) | 22 | (13 | ) | 123 | 0 | (5 | ) | |||||||||||||||||||||||||||||||
Finance and insurance | 572 | 2 | 2 | 21 | 0 | 0 | (24 | ) | 0 | (22 | ) | 551 | 0 | 5 | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 94 | 0 | 2 | 8 | 0 | 0 | (1 | ) | 0 | 0 | 103 | 0 | 2 | |||||||||||||||||||||||||||||||||||
Technology and communications | 50 | 0 | 1 | 20 | 0 | 0 | 0 | 0 | (5 | ) | 66 | 0 | 2 | |||||||||||||||||||||||||||||||||||
Industrial | 40 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 39 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||
Capital goods | 102 | 0 | (1 | ) | 0 | 0 | 0 | (4 | ) | 0 | 0 | 97 | 0 | (1 | ) | |||||||||||||||||||||||||||||||||
Consumer—cyclical | 173 | 0 | 4 | 0 | 0 | 0 | (3 | ) | 24 | 0 | 198 | 0 | 4 | |||||||||||||||||||||||||||||||||||
Transportation | 78 | 0 | (2 | ) | 0 | 0 | 0 | (2 | ) | 10 | (30 | ) | 54 | 0 | 1 | |||||||||||||||||||||||||||||||||
Other | 136 | 0 | 1 | 5 | 0 | 0 | (4 | ) | 27 | 0 | 165 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,239 | 3 | 16 | 96 | (21 | ) | 0 | (43 | ) | 125 | (83 | ) | 2,332 | 0 | 22 | |||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 374 | 0 | 3 | 12 | 0 | 0 | 0 | 21 | (53 | ) | 357 | 0 | 3 | |||||||||||||||||||||||||||||||||||
Energy | 247 | 0 | (8 | ) | 0 | 0 | 0 | (26 | ) | 24 | 0 | 237 | 0 | (8 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 234 | 2 | 9 | 15 | 0 | 0 | 0 | 58 | (7 | ) | 311 | 2 | 10 | |||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 59 | 0 | 2 | 8 | 0 | 0 | 0 | 1 | (16 | ) | 54 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Technology and communications | 28 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Industrial | 104 | 0 | 1 | 0 | 0 | 0 | (5 | ) | 0 | (8 | ) | 92 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Capital goods | 161 | 1 | (2 | ) | 0 | 0 | 0 | (16 | ) | 29 | 0 | 173 | 0 | (1 | ) | |||||||||||||||||||||||||||||||||
Consumer—cyclical | 147 | 0 | (3 | ) | 4 | 0 | 0 | (7 | ) | 32 | (17 | ) | 156 | 0 | (5 | ) | ||||||||||||||||||||||||||||||||
Transportation | 191 | 0 | 2 | 0 | 0 | 0 | 0 | 22 | (74 | ) | 141 | 0 | 6 | |||||||||||||||||||||||||||||||||||
Other | 140 | 0 | 0 | 5 | 0 | 0 | (1 | ) | 1 | 0 | 145 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,685 | 3 | 4 | 44 | 0 | 0 | (55 | ) | 188 | (175 | ) | 1,694 | 2 | 6 | ||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 27 | 0 | 0 | 0 | 0 | 0 | (1 | ) | 4 | (6 | ) | 24 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 6 | 0 | 2 | 0 | 0 | 0 | 0 | 20 | (7 | ) | 21 | 0 | 1 | |||||||||||||||||||||||||||||||||||
Other asset-backed | 93 | 0 | (2 | ) | 8 | 0 | 0 | (8 | ) | 0 | (1 | ) | 90 | 0 | (2 | ) | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | 4,152 | 7 | 8 | 148 | (21 | ) | 0 | (109 | ) | 338 | (299 | ) | 4,224 | 4 | 14 | |||||||||||||||||||||||||||||||||
Equity securities | 51 | 0 | 0 | 6 | (4 | ) | 0 | 0 | 0 | 0 | 53 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 81 | (9 | ) | 0 | 18 | 0 | 0 | (24 | ) | 0 | 0 | 66 | 5 | 0 | ||||||||||||||||||||||||||||||||||
Total derivative assets | 81 | (9 | ) | 0 | 18 | 0 | 0 | (24 | ) | 0 | 0 | 66 | 5 | 0 | ||||||||||||||||||||||||||||||||||
Total other invested assets | 81 | (9 | ) | 0 | 18 | 0 | 0 | (24 | ) | 0 | 0 | 66 | 5 | 0 | ||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 20 | 17 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 38 | 17 | 0 | ||||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 4,304 | $ | 15 | $ | 8 | $ | 172 | $ | (25 | ) | $ | 1 | $ | (133 | ) | $ | 338 | $ | (299 | ) | $ | 4,381 | $ | 26 | $ | 14 | |||||||||||||||||||||
Beginning balance as of January 1, 2019 | Total realized and unrealized gains (losses) | Ending balance as of September 30, 2019 | Total gains (losses) included in net income (loss) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income (loss) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 51 | $ | 2 | $ | 19 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 72 | $ | 2 | ||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||
Utilities | 643 | 1 | 70 | 109 | (14 | ) | 0 | (47 | ) | 72 | (10 | ) | 824 | 0 | ||||||||||||||||||||||||||||||
Energy | 121 | 0 | 9 | 17 | 0 | 0 | (12 | ) | 0 | 0 | 135 | 0 | ||||||||||||||||||||||||||||||||
Finance and insurance | 534 | 0 | 49 | 40 | 0 | 0 | (38 | ) | 27 | 0 | 612 | 0 | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 73 | 0 | 4 | 23 | 0 | 0 | (11 | ) | 9 | 0 | 98 | 0 | ||||||||||||||||||||||||||||||||
Technology and communications | 50 | 0 | 6 | 0 | 0 | 0 | 0 | 5 | (11 | ) | 50 | 0 | ||||||||||||||||||||||||||||||||
Industrial | 39 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 40 | 0 | |||||||||||||||||||||||||||||||||
Capital goods | 92 | 0 | 8 | 0 | 0 | 0 | 0 | 0 | 0 | 100 | 0 | |||||||||||||||||||||||||||||||||
Consumer—cyclical | 211 | 0 | 12 | 0 | (13 | ) | 0 | (16 | ) | 0 | (18 | ) | 176 | 0 | ||||||||||||||||||||||||||||||
Transportation | 57 | 0 | 2 | 7 | 0 | 0 | (9 | ) | 0 | 0 | 57 | 0 | ||||||||||||||||||||||||||||||||
Other | 178 | 0 | 6 | 22 | 0 | 0 | (15 | ) | 8 | (31 | ) | 168 | 0 | |||||||||||||||||||||||||||||||
Total U.S. corporate | 1,998 | 1 | 167 | 218 | (27 | ) | 0 | (148 | ) | 121 | (70 | ) | 2,260 | 0 | ||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||
Utilities | 404 | 0 | 28 | 30 | (7 | ) | 0 | (42 | ) | 0 | (16 | ) | 397 | 0 | ||||||||||||||||||||||||||||||
Energy | 217 | 0 | 17 | 47 | 0 | 0 | (16 | ) | 0 | 0 | 265 | 0 | ||||||||||||||||||||||||||||||||
Finance and insurance | 171 | 3 | 22 | 7 | 0 | 0 | (16 | ) | 16 | (6 | ) | 197 | 3 | |||||||||||||||||||||||||||||||
Consumer—non-cyclical | 106 | 2 | 5 | 0 | 0 | 0 | (49 | ) | 0 | 0 | 64 | 0 | ||||||||||||||||||||||||||||||||
Technology and communications | 26 | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 28 | 0 | |||||||||||||||||||||||||||||||||
Industrial | 61 | 0 | 3 | 13 | 0 | 0 | 0 | 0 | 0 | 77 | 0 | |||||||||||||||||||||||||||||||||
Capital goods | 173 | 0 | 11 | 10 | 0 | 0 | (15 | ) | 0 | 0 | 179 | 0 | ||||||||||||||||||||||||||||||||
Consumer—cyclical | 122 | 0 | 10 | 9 | 0 | 0 | (4 | ) | 0 | 0 | 137 | 0 | ||||||||||||||||||||||||||||||||
Transportation | 171 | 0 | 10 | 19 | 0 | 0 | 0 | 0 | 0 | 200 | 0 | |||||||||||||||||||||||||||||||||
Other | 81 | 0 | 11 | 35 | 0 | 0 | (2 | ) | 6 | 0 | 131 | 0 | ||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,532 | 5 | 119 | 170 | (7 | ) | 0 | (144 | ) | 22 | (22 | ) | 1,675 | 3 | ||||||||||||||||||||||||||||||
Residential mortgage-backed | 35 | 0 | 2 | 0 | 0 | 0 | (1 | ) | 0 | (4 | ) | 32 | 0 | |||||||||||||||||||||||||||||||
Commercial mortgage-backed | 95 | 0 | 23 | 2 | 0 | 0 | 0 | 0 | (14 | ) | 106 | 0 | ||||||||||||||||||||||||||||||||
Other asset-backed | 154 | 0 | 2 | 109 | 0 | 0 | (53 | ) | 28 | (110 | ) | 130 | 0 | |||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,865 | 8 | 332 | 499 | (34 | ) | 0 | (346 | ) | 171 | (220 | ) | 4,275 | 5 | ||||||||||||||||||||||||||||||
Equity securities | 58 | 0 | 0 | 2 | (6 | ) | 0 | 0 | 0 | 0 | 54 | 0 | ||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 39 | 28 | 0 | 34 | 0 | 0 | (39 | ) | 0 | 0 | 62 | (2 | ) | |||||||||||||||||||||||||||||||
Total derivative assets | 39 | 28 | 0 | 34 | 0 | 0 | (39 | ) | 0 | 0 | 62 | (2 | ) | |||||||||||||||||||||||||||||||
Total other invested assets | 39 | 28 | 0 | 34 | 0 | 0 | (39 | ) | 0 | 0 | 62 | (2 | ) | |||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 20 | 4 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 25 | 4 | |||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,982 | $ | 40 | $ | 332 | $ | 535 | $ | (40 | ) | $ | 1 | $ | (385 | ) | $ | 171 | $ | (220 | ) | $ | 4,416 | $ | 7 | |||||||||||||||||||
(1) | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. |
(2) | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Total realized and unrealized gains (losses) included in net income (loss): | ||||||||||||||||
Net investment income | $ | 15 | $ | 2 | $ | 21 | $ | 8 | ||||||||
Net investment gains (losses) | 4 | 6 | 13 | 32 | ||||||||||||
Total | $ | 19 | $ | 8 | $ | 34 | $ | 40 | ||||||||
Total gains (losses) included in net income (loss) attributable to assets still held: | ||||||||||||||||
Net investment income | $ | 2 | $ | 2 | $ | 5 | $ | 5 | ||||||||
Net investment gains (losses) | (4 | ) | 5 | 18 | 2 | |||||||||||
Total | $ | (2 | ) | $ | 7 | $ | 23 | $ | 7 | |||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Total realized and unrealized gains (losses) included in net income (loss): | ||||||||||||||||
Net investment income | $ | 1 | $ | 2 | $ | 3 | $ | 6 | ||||||||
Net investment gains (losses) | 5 | (5 | ) | 0 | 9 | |||||||||||
Total | $ | 6 | $ | (3 | ) | $ | 3 | $ | 15 | |||||||
Total gains (losses) included in net income (loss) attributable to assets still held: | ||||||||||||||||
Net investment income | $ | 2 | $ | 2 | $ | 4 | $ | 4 | ||||||||
Net investment gains (losses) | 1 | (1 | ) | (5 | ) | 22 | ||||||||||
Total | $ | 3 | $ | 1 | $ | (1 | ) | $ | 26 | |||||||
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted- average (1) | |||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | Internal models | $ | 807 | Credit spreads | 47bps - 210bps | 124bps | ||||||||||||||
Energy | Internal models | 66 | Credit spreads | 57bps - 203bps | 128bps | |||||||||||||||
Finance and insurance | Internal models | 644 | Credit spreads | 44bps - 171bps | 113bps | |||||||||||||||
Consumer—non-cyclical | Internal models | 109 | Credit spreads | 52bps - 203bps | 117bps | |||||||||||||||
Technology and communications | Internal models | 30 | Credit spreads | 72bps - 150bps | 122bps | |||||||||||||||
Industrial | Internal models | 21 | Credit spreads | 85bps - 159bps | 127bps | |||||||||||||||
Capital goods | Internal models | 59 | Credit spreads | 62bps - 159bps | 112bps | |||||||||||||||
Consumer—cyclical | Internal models | 138 | Credit spreads | 81bps - 156bps | 122bps | |||||||||||||||
Transportation | Internal models | 55 | Credit spreads | 46bps - 134bps | 87bps | |||||||||||||||
Other | Internal models | 177 | Credit spreads | 63bps - 143bps | 82bps | |||||||||||||||
Total U.S. corporate | Internal models | $ | 2,106 | Credit spreads | 44bps - 210bps | 115bps | ||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | Internal models | $ | 347 | Credit spreads | 58bps - 210bps | 109bps | ||||||||||||||
Energy | Internal models | 140 | Credit spreads | 62bps - 187bps | 113bps | |||||||||||||||
Finance and insurance | Internal models | 160 | Credit spreads | 78bps - 111bps | 93bps | |||||||||||||||
Consumer—non-cyclical | Internal models | 72 | Credit spreads | 52bps - 121bps | 89bps | |||||||||||||||
Technology and communications | Internal models | 28 | Credit spreads | 62bps - 106bps | 89bps | |||||||||||||||
Industrial | Internal models | 94 | Credit spreads | 57bps - 156bps | 98bps | |||||||||||||||
Capital goods | Internal models | 152 | Credit spreads | 52bps - 187bps | 100bps | |||||||||||||||
Consumer—cyclical | Internal models | 61 | Credit spreads | 81bps - 156bps | 111bps | |||||||||||||||
Transportation | Internal models | 83 | Credit spreads | 52bps - 156bps | 85bps | |||||||||||||||
Other | Internal models | 54 | Credit spreads | 66bps - 343bps | 123bps | |||||||||||||||
Total non-U.S. corporate | Internal models | $ | 1,191 | Credit spreads | 52bps - 343bps | 103bps | ||||||||||||||
Derivative assets: | ||||||||||||||||||||
Equity index options | Discounted cash flows | | $ | 47 | Equity index volatility | | 6% - 48% | 27% |
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted-average (1) | |||||||||||||
Fixed maturity securities: | ||||||||||||||||||
U.S. corporate: | ||||||||||||||||||
Utilities | Internal models | $ | 774 | Credit spreads | 71bps – 368bps | 183bps | ||||||||||||
Energy | Internal models | 7 | Credit spreads | 91bps | Not applicable | |||||||||||||
Finance and insurance | Internal models | 493 | Credit spreads | 66bps – 321bps | 178bps | |||||||||||||
Consumer—non-cyclical | Internal models | 103 | Credit spreads | 78bps – 358bps | 174bps | |||||||||||||
Technology and communications | Internal models | 126 | Credit spreads | 133bps – 358bps | 224bps | |||||||||||||
Industrial | Internal models | 40 | Credit spreads | 156bps – 373bps | 230bps | |||||||||||||
Capital goods | Internal models | 97 | Credit spreads | 102bps – 273bps | 190bps | |||||||||||||
Consumer—cyclical | Internal models | 133 | Credit spreads | 139bps – 276bps | 201bps | |||||||||||||
Transportation | Internal models | 43 | Credit spreads | 67bps – 156bps | 118bps | |||||||||||||
Other | Internal models | 164 | Credit spreads | 93bps – 206bps | 114bps | |||||||||||||
Total U.S. corporate | �� | Internal models | $ | 1,980 | Credit spreads | 66bps – 373bps | 179bps | |||||||||||
Non-U.S. corporate: | ||||||||||||||||||
Utilities | Internal models | $ | 347 | Credit spreads | 89bps – 292bps | 164bps | ||||||||||||
Energy | Internal models | 82 | Credit spreads | 102bps – 241bps | 156bps | |||||||||||||
Finance and insurance | Internal models | 199 | Credit spreads | 86bps – 174bps | 134bps | |||||||||||||
Consumer—non-cyclical | Internal models | 53 | Credit spreads | 97bps – 162bps | 142bps | |||||||||||||
Technology and communications | Internal models | 28 | Credit spreads | 102bps – 238bps | 184bps | |||||||||||||
Industrial | Internal models | 93 | Credit spreads | 91bps – 241bps | 165bps | |||||||||||||
Capital goods | Internal models | 146 | Credit spreads | 97bps – 254bps | 177bps | |||||||||||||
Consumer—cyclical | Internal models | 54 | Credit spreads | 102bps – 241bps | 197bps | |||||||||||||
Transportation | Internal models | 95 | Credit spreads | 78bps – 241bps | 129bps | |||||||||||||
Other | Internal models | 135 | Credit spreads | 110bps – 490bps | 209bps | |||||||||||||
Total non-U.S. corporate | Internal models | $ | 1,232 | Credit spreads | 78bps – 490bps | 163bps | ||||||||||||
Derivative assets: | ||||||||||||||||||
Equity index options | Discounted cash flows | $ | 67 | Equity index volatility | 6% – 41% | 28% |
(1) | Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities and by notional for derivative assets. |
June 30, 2021 | ||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities | ||||||||||||||||
Policyholder account balances: | ||||||||||||||||
GMWB embedded derivatives (1) | $ | 275 | $ | 0 | $ | 0 | $ | 275 | ||||||||
Fixed index annuity embedded derivatives | 339 | 0 | 0 | 339 | ||||||||||||
Indexed universal life embedded derivatives | 24 | 0 | 0 | 24 | ||||||||||||
Total policyholder account balances | 638 | 0 | 0 | 638 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Interest rate swaps | 53 | 0 | 53 | 0 | ||||||||||||
Foreign currency swaps | 2 | 0 | 2 | 0 | ||||||||||||
Total derivative liabilities | 55 | 0 | 55 | 0 | ||||||||||||
Total liabilities | $ | 693 | $ | 0 | $ | 55 | $ | 638 | ||||||||
September 30, 2020 | ||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities | ||||||||||||||||
Policyholder account balances: | ||||||||||||||||
GMWB embedded derivatives (1) | $ | 508 | $ | 0 | $ | 0 | $ | 508 | ||||||||
Fixed index annuity embedded derivatives | 432 | 0 | 0 | 432 | ||||||||||||
Indexed universal life embedded derivatives | 25 | 0 | 0 | 25 | ||||||||||||
Total policyholder account balances | 965 | 0 | 0 | 965 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Interest rate swaps | 4 | 0 | 4 | 0 | ||||||||||||
Other foreign currency contracts | 5 | 0 | 5 | 0 | ||||||||||||
Total derivative liabilities | 9 | 0 | 9 | 0 | ||||||||||||
Total liabilities | $ | 974 | $ | 0 | $ | 9 | $ | 965 | ||||||||
(1) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
December 31, 2020 | ||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities | ||||||||||||||||
Policyholder account balances: | ||||||||||||||||
GMWB embedded derivatives (1) | $ | 379 | $ | 0 | $ | 0 | $ | 379 | ||||||||
Fixed index annuity embedded derivatives | 399 | 0 | 0 | 399 | ||||||||||||
Indexed universal life embedded derivatives | 26 | 0 | 0 | 26 | ||||||||||||
Total policyholder account balances | 804 | 0 | 0 | 804 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Interest rate swaps | 23 | 0 | 23 | 0 | ||||||||||||
Foreign currency swaps | 2 | 0 | 2 | 0 | ||||||||||||
Other foreign currency contracts | 1 | 0 | 1 | 0 | ||||||||||||
Total derivative liabilities | 26 | 0 | 26 | 0 | ||||||||||||
Total liabilities | $ | 830 | $ | 0 | $ | 26 | $ | 804 | ||||||||
December 31, 2019 | ||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities | ||||||||||||||||
Policyholder account balances: | ||||||||||||||||
GMWB embedded derivatives (1) | $ | 323 | $ | 0 | $ | 0 | $ | 323 | ||||||||
Fixed index annuity embedded derivatives | 452 | 0 | 0 | 452 | ||||||||||||
Indexed universal life embedded derivatives | 19 | 0 | 0 | 19 | ||||||||||||
Total policyholder account balances | 794 | 0 | 0 | 794 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Interest rate swaps | 10 | 0 | 10 | 0 | ||||||||||||
Other foreign currency contracts | 1 | 0 | 1 | 0 | ||||||||||||
Total derivative liabilities | 11 | 0 | 11 | 0 | ||||||||||||
Total liabilities | $ | 805 | $ | 0 | $ | 11 | $ | 794 | ||||||||
(1) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Beginning balance as of April 1, 2021 | Total realized and unrealized (gains) losses | Transfer into Level 3 | Transfer out of Level 3 | Ending balance as of June 30, 2021 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) loss | Included in OCI | Purchases | Sales | Issuances | Settlements | Included in net (income) loss | Included in OCI | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 272 | $ | (3 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 0 | $ | 0 | $ | 275 | $ | (4 | ) | $ | 0 | ||||||||||||||||||||||
Fixed index annuity embedded derivatives | 362 | 14 | 0 | 0 | 0 | 0 | (37 | ) | 0 | 0 | 339 | 14 | 0 | |||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 23 | (3 | ) | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 24 | (3 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 657 | 8 | 0 | 0 | 0 | 10 | (37 | ) | 0 | 0 | 638 | 7 | 0 | |||||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 657 | $ | 8 | $ | 0 | $ | 0 | $ | 0 | $ | 10 | $ | (37 | ) | $ | 0 | $ | 0 | $ | 638 | $ | 7 | $ | 0 | |||||||||||||||||||||||
Beginning balance as of July 1, 2020 | Total realized and unrealized (gains) losses | Ending balance as of September 30, 2020 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) loss | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) loss | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 559 | $ | (57 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 0 | $ | 0 | $ | 508 | $ | (57 | ) | $ | 0 | ||||||||||||||||||||||
Fixed index annuity embedded derivatives | 447 | 18 | 0 | 0 | 0 | 0 | (33 | ) | 0 | 0 | 432 | 18 | 0 | |||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 23 | (3 | ) | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 25 | (3 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 1,029 | (42 | ) | 0 | 0 | 0 | 11 | (33 | ) | 0 | 0 | 965 | (42 | ) | 0 | |||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 1,029 | $ | (42 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 11 | $ | (33 | ) | $ | 0 | $ | 0 | $ | 965 | $ | (42 | ) | $ | 0 | |||||||||||||||||||||
(1) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Beginning balance as of April 1, 2020 | Total realized and unrealized (gains) losses | Transfer into Level 3 | Transfer out of Level 3 | Ending balance as of June 30, 2020 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) loss | Included in OCI | Purchases | Sales | Issuances | Settlements | Included in net (income) loss | Included in OCI | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 691 | $ | (138 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 0 | $ | 0 | $ | 559 | $ | (137 | ) | $ | 0 | ||||||||||||||||||||||
Fixed index annuity embedded derivatives | 413 | 45 | 0 | 0 | 0 | 0 | (11 | ) | 0 | 0 | 447 | 45 | 0 | |||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 21 | (3 | ) | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 23 | (3 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 1,125 | (96 | ) | 0 | 0 | 0 | 11 | (11 | ) | 0 | 0 | 1,029 | (95 | ) | 0 | |||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 1,125 | $ | (96 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 11 | $ | (11 | ) | $ | 0 | $ | 0 | $ | 1,029 | $ | (95 | ) | $ | 0 | |||||||||||||||||||||
Beginning balance as of July 1, 2019 | Total realized and unrealized (gains) losses | Ending balance as of September 30, 2019 | Total (gains) losses included in net (income) loss attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) loss | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | ||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 325 | $ | 49 | $ | 0 | $ | 0 | $ | 0 | $ | 7 | $ | 0 | $ | 0 | $ | 0 | $ | 381 | $ | 50 | ||||||||||||||||||||||
Fixed index annuity embedded derivatives | 438 | 14 | 0 | 0 | 0 | 0 | (8 | ) | 0 | 0 | 444 | 14 | ||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 15 | (1 | ) | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 18 | (1 | ) | |||||||||||||||||||||||||||||||
Total policyholder account balances | 778 | 62 | 0 | 0 | 0 | 11 | (8 | ) | 0 | 0 | 843 | 63 | ||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 778 | $ | 62 | $ | 0 | $ | 0 | $ | 0 | $ | 11 | $ | (8 | ) | $ | 0 | $ | 0 | $ | 843 | $ | 63 | |||||||||||||||||||||
(1) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Beginning balance as of January 1, 2021 | Total realized and unrealized (gains) losses | Transfer into Level 3 | Transfer out of Level 3 | Ending balance as of June 30, 2021 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) loss | Included in OCI | Purchases | Sales | Issuances | Settlements | Included in net (income) loss | Included in OCI | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 379 | $ | (116 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 12 | $ | 0 | $ | 0 | $ | 0 | $ | 275 | $ | (111 | ) | $ | 0 | ||||||||||||||||||||||
Fixed index annuity embedded derivatives | 399 | 18 | 0 | 0 | 0 | 0 | (78 | ) | 0 | 0 | 339 | 18 | 0 | |||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 26 | (13 | ) | 0 | 0 | 0 | 11 | 0 | 0 | 0 | 24 | (13 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 804 | (111 | ) | 0 | 0 | �� | 0 | 23 | (78 | ) | 0 | 0 | 638 | (106 | ) | 0 | ||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 804 | $ | (111 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 23 | $ | (78 | ) | $ | 0 | $ | 0 | $ | 638 | $ | (106 | ) | $ | 0 | |||||||||||||||||||||
Beginning balance as of January 1, 2020 | Total realized and unrealized (gains) losses | Ending balance as of September 30, 2020 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) loss | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) loss | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 323 | $ | 167 | $ | 0 | $ | 0 | $ | 0 | $ | 18 | $ | 0 | $ | 0 | $ | 0 | $ | 508 | $ | 174 | $ | 0 | ||||||||||||||||||||||||
Fixed index annuity embedded derivatives | 452 | 31 | 0 | 0 | 0 | 0 | (51 | ) | 0 | 0 | 432 | 31 | 0 | |||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 19 | (10 | ) | 0 | 0 | 0 | 16 | 0 | 0 | 0 | 25 | (10 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 794 | 188 | 0 | 0 | 0 | 34 | (51 | ) | 0 | 0 | 965 | 195 | 0 | |||||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 794 | $ | 188 | $ | 0 | $ | 0 | $ | 0 | $ | 34 | $ | (51 | ) | $ | 0 | $ | 0 | $ | 965 | $ | 195 | $ | 0 | |||||||||||||||||||||||
(1) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Beginning balance as of January 1, 2020 | Total realized and unrealized (gains) losses | Transfer into Level 3 | Transfer out of Level 3 | Ending balance as of June 30, 2020 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) loss | Included in OCI | Purchases | Sales | Issuances | Settlements | Included in net (income) loss | Included in OCI | ||||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 323 | $ | 224 | $ | 0 | $ | 0 | $ | 0 | $ | 12 | $ | 0 | $ | 0 | $ | 0 | $ | 559 | $ | 231 | $ | 0 | ||||||||||||||||||||||||
Fixed index annuity embedded derivatives | 452 | 13 | 0 | 0 | 0 | 0 | (18 | ) | 0 | 0 | 447 | 13 | 0 | |||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 19 | (7 | ) | 0 | 0 | 0 | 11 | 0 | 0 | 0 | 23 | (7 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 794 | 230 | 0 | 0 | 0 | 23 | (18 | ) | 0 | 0 | 1,029 | 237 | 0 | |||||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 794 | $ | 230 | $ | 0 | $ | 0 | $ | 0 | $ | 23 | $ | (18 | ) | $ | 0 | $ | 0 | $ | 1,029 | $ | 237 | $ | 0 | |||||||||||||||||||||||
Beginning balance as of January 1, 2019 | Total realized and unrealized (gains) losses | Ending balance as of September 30, 2019 | Total (gains) losses included in net (income) loss attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) loss | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | ||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 337 | $ | 25 | $ | 0 | $ | 0 | $ | 0 | $ | 19 | $ | 0 | $ | 0 | $ | 0 | $ | 381 | $ | 29 | ||||||||||||||||||||||
Fixed index annuity embedded derivatives | 389 | 72 | 0 | 0 | 0 | 0 | (17 | ) | 0 | 0 | 444 | 72 | ||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 12 | (1 | ) | 0 | 0 | 0 | 7 | 0 | 0 | 0 | 18 | (1 | ) | |||||||||||||||||||||||||||||||
Total policyholder account balances | 738 | 96 | 0 | 0 | 0 | 26 | (17 | ) | 0 | 0 | 843 | 100 | ||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 738 | $ | 96 | $ | 0 | $ | 0 | $ | 0 | $ | 26 | $ | (17 | ) | $ | 0 | $ | 0 | $ | 843 | $ | 100 | |||||||||||||||||||||
(1) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Total realized and unrealized (gains) losses included in net (income) loss: | ||||||||||||||||
Net investment income | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Net investment (gains) losses | 8 | (96 | ) | (111 | ) | 230 | ||||||||||
Total | $ | 8 | $ | (96 | ) | $ | (111 | ) | $ | 230 | ||||||
Total (gains) losses included in net (income) loss attributable to liabilities still held: | ||||||||||||||||
Net investment income | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Net investment (gains) losses | 7 | (95 | ) | (106 | ) | 237 | ||||||||||
Total | $ | 7 | $ | (95 | ) | $ | (106 | ) | $ | 237 | ||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Total realized and unrealized (gains) losses included in net (income) loss: | ||||||||||||||||
Net investment income | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Net investment (gains) losses | (42 | ) | 62 | 188 | 96 | |||||||||||
Total | $ | (42 | ) | $ | 62 | $ | 188 | $ | 96 | |||||||
Total (gains) losses included in net (income) loss attributable to liabilities still held: | ||||||||||||||||
Net investment income | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Net investment (gains) losses | (42 | ) | 63 | 195 | 100 | |||||||||||
Total | $ | (42 | ) | $ | 63 | $ | 195 | $ | 100 | |||||||
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted- average (1) | |||||||
Policyholder account balances: | ||||||||||||
Withdrawal utilization rate | 59% - 88% | 75% | ||||||||||
Lapse rate | 2% - 9% | 4% | ||||||||||
Non-performance risk (credit spreads) | 14bps - 83bps | 65bps | ||||||||||
GMWB embedded derivatives (2) | Stochastic cash flow model | $ | 275 | Equity index volatility | 16% - 26% | 22% | ||||||
Fixed index annuity embedded derivatives | Option budget method | $ | 339 | Expected future interest credited | 0 % - 3% | 1% | ||||||
Indexed universal life embedded derivatives | Option budget method | $ | 24 | Expected future interest credited | 3% - 9% | 5% |
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted- average (1) | |||||||||||||
Policyholder account balances: | ||||||||||||||||||
Withdrawal utilization rate | 56% – 88% | 73% | ||||||||||||||||
Lapse rate | 2% – 9% | 4% | ||||||||||||||||
Non-performance risk (credit spreads) | 12bps –83bps | 67bps | ||||||||||||||||
GMWB embedded derivatives (2) | Stochastic cash flow model | $ | 508 | Equity index volatility | 21% – 27% | 23% | ||||||||||||
Fixed index annuity embedded derivatives | Option budget method | $ | 432 | Expected future interest credited | 0 % – 3% | 1% | ||||||||||||
Indexed universal life embedded derivatives | Option budget method | $ | 25 | Expected future interest credited | 3% – 10% | 5% |
(1) | Unobservable inputs weighted by the policyholder account balances associated with the instrument. |
(2) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The unobservable inputs associated with GMWB embedded derivatives are not interrelated and therefore, a directional change in one input will not affect the other inputs. |
June 30, 2021 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans, net | (1) | $ | 6,879 | $ | 7,270 | $ | 0 | $ | 0 | $ | 7,270 | |||||||||||||
Bank loan investments | (1) | 308 | 314 | 0 | 0 | 314 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1) | 2,924 | 2,813 | 0 | 2,813 | 0 | ||||||||||||||||||
Investment contracts | (1) | 9,360 | 10,172 | 0 | 0 | 10,172 | ||||||||||||||||||
Other firm commitments: | ||||||||||||||||||||||||
Commitments to fund limited partnerships | 1,187 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Commitments to fund bank loan investments | 273 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Ordinary course of business lending commitments | 156 | 0 | 0 | 0 | 0 | 0 |
September 30, 2020 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans | (1) | $ | 6,880 | $ | 7,169 | $ | 0 | $ | 0 | $ | 7,169 | |||||||||||||
Other invested assets | (1) | 410 | 411 | 0 | 23 | 388 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1) | 3,570 | 3,148 | 0 | 2,979 | 169 | ||||||||||||||||||
Investment contracts | (1) | 10,872 | 12,016 | 0 | 0 | 12,016 | ||||||||||||||||||
Other firm commitments: | ||||||||||||||||||||||||
Commitments to fund limited partnerships | 1,112 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Commitments to fund bank loan investments | 35 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Ordinary course of business lending commitments | 126 | 0 | 0 | 0 | 0 | 0 |
(1) | These financial instruments do not have notional amounts. |
December 31, 2020 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans, net | (1) | $ | 6,743 | $ | 7,145 | $ | 0 | $ | 0 | $ | 7,145 | |||||||||||||
Bank loan investments | (1) | 344 | 354 | 0 | 0 | 354 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1) | 3,403 | 3,090 | 0 | 3,090 | 0 | ||||||||||||||||||
Investment contracts | (1) | 10,276 | 11,353 | 0 | 0 | 11,353 | ||||||||||||||||||
Other firm commitments: | ||||||||||||||||||||||||
Commitments to fund limited partnerships | 1,090 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Commitments to fund bank loan investments | 32 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Ordinary course of business lending commitments | 117 | 0 | 0 | 0 | 0 | 0 |
December 31, 2019 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans | (1) | $ | 6,963 | $ | 7,239 | $ | 0 | $ | 0 | $ | 7,239 | |||||||||||||
Other invested assets | (1) | 432 | 432 | 0 | 49 | 383 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1) | 3,277 | 3,093 | 0 | 2,951 | 142 | ||||||||||||||||||
Non-recourse funding obligations | (1) | 311 | �� | 207 | 0 | 0 | 207 | |||||||||||||||||
Investment contracts | (1) | 11,466 | 12,086 | 0 | 0 | 12,086 | ||||||||||||||||||
Other firm commitments: | ||||||||||||||||||||||||
Commitments to fund limited partnerships | 976 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Commitments to fund bank loan investments | 52 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Ordinary course of business lending commitments | 69 | 0 | 0 | 0 | 0 | 0 |
(1) | These financial instruments do not have notional amounts. |
As of or for the six months ended June 30, | ||||||||
(Amounts in millions) | 2021 | 2020 | ||||||
Beginning balance | $ | 11,486 | $ | 10,750 | ||||
Less reinsurance recoverables | (2,431 | ) | (2,406 | ) | ||||
Net beginning balance | 9,055 | 8,344 | ||||||
Incurred related to insured events of: | ||||||||
Current year | 1,991 | 2,178 | ||||||
Prior years | (332 | ) | (258 | ) | ||||
Total incurred | 1,659 | 1,920 | ||||||
Paid related to insured events of: | ||||||||
Current year | (477 | ) | (434 | ) | ||||
Prior years | (1,255 | ) | (1,298 | ) | ||||
Total paid | (1,732 | ) | (1,732 | ) | ||||
Interest on liability for policy and contract claims | 202 | 205 | ||||||
Foreign currency translation | 0 | (2 | ) | |||||
Net ending balance | 9,184 | 8,735 | ||||||
Add reinsurance recoverables | 2,362 | 2,319 | ||||||
Ending balance | $ | 11,546 | $ | 11,054 | ||||
As of or for the nine months ended September 30, | ||||||||
(Amounts in millions) | 2020 | 2019 | ||||||
Beginning balance | $ | 10,958 | $ | 10,295 | ||||
Less reinsurance recoverables | (2,406 | ) | (2,379 | ) | ||||
Net beginning balance | 8,552 | 7,916 | ||||||
Incurred related to insured events of: | ||||||||
Current year | 3,179 | 2,865 | ||||||
Prior years | (389 | ) | (237 | ) | ||||
Total incurred | 2,790 | 2,628 | ||||||
Paid related to insured events of: | ||||||||
Current year | (708 | ) | (659 | ) | ||||
Prior years | (1,867 | ) | (1,794 | ) | ||||
Total paid | (2,575 | ) | (2,453 | ) | ||||
Interest on liability for policy and contract claims | 308 | 285 | ||||||
Foreign currency translation | 5 | (9 | ) | |||||
Net ending balance | 9,080 | 8,367 | ||||||
Add reinsurance recoverables | 2,293 | 2,413 | ||||||
Ending balance | $ | 11,373 | $ | 10,780 | ||||
Three months ended September 30, | Nine months ended September 30, | |||||||
(Amounts in millions) | 2020 | 2020 | ||||||
Allowance for credit losses: | ||||||||
Beginning balance | $ | 44 | $ | 0 | ||||
Cumulative effect of change in accounting | 0 | 40 | ||||||
Provision | 0 | 4 | ||||||
Write-offs | 0 | 0 | ||||||
Recoveries | 0 | 0 | ||||||
Ending balance | $ | 44 | $ | 44 | ||||
(Amounts in millions) | Collateralized | Non-collateralized | Total | |||||||||
Credit rating: | ||||||||||||
A++ | $ | 0 | $ | 514 | $ | 514 | ||||||
A+ | 1,380 | 1,366 | 2,746 | |||||||||
A | 20 | 46 | 66 | |||||||||
B+ | 0 | 2 | 2 | |||||||||
Not rated | 13,422 | 82 | 13,504 | |||||||||
Total reinsurance recoverable | $ | 14,822 | $ | 2,010 | $ | 16,832 | ||||||
(Amounts in millions) | June 30, 2021 | December 31, 2020 | ||||||
Genworth Holdings (1) | ||||||||
7.20% Senior Notes, due 2021 | $ | 0 | $ | 338 | ||||
7.625% Senior Notes, due 2021 | 514 | 660 | ||||||
4.90% Senior Notes, due 2023 | 400 | 400 | ||||||
4.80% Senior Notes, due 2024 | 400 | 400 | ||||||
6.50% Senior Notes, due 2034 | 297 | 297 | ||||||
Floating Rate Junior Subordinated Notes, due 2066 | 598 | 598 | ||||||
Subtotal | 2,209 | 2,693 | ||||||
Bond consent fees | (16 | ) | (19 | ) | ||||
Deferred borrowing charges | (8 | ) | (9 | ) | ||||
Total Genworth Holdings | 2,185 | 2,665 | ||||||
Enact Holdings | ||||||||
6.50% Senior Notes, due 2025 (2) | 750 | 750 | ||||||
Deferred borrowing charges | (11 | ) | (12 | ) | ||||
Total Enact Holdings | 739 | 738 | ||||||
Total | $ | 2,924 | $ | 3,403 | ||||
(Amounts in millions) | September 30, 2020 | December 31, 2019 | ||||||
Genworth Holdings (1) | ||||||||
7.70% Senior Notes, due 2020 | $ | 0 | $ | 397 | ||||
7.20% Senior Notes, due 2021 | 338 | 382 | ||||||
7.625% Senior Notes, due 2021 | 661 | 701 | ||||||
4.90% Senior Notes, due 2023 | 399 | 399 | ||||||
4.80% Senior Notes, due 2024 | 400 | 400 | ||||||
6.50% Senior Notes, due 2034 | 297 | 297 | ||||||
Floating Rate Junior Subordinated Notes, due 2066 | 598 | 598 | ||||||
Subtotal | 2,693 | 3,174 | ||||||
Bond consent fees | (20 | ) | (25 | ) | ||||
Deferred borrowing charges | (10 | ) | (12 | ) | ||||
Total Genworth Holdings | 2,663 | 3,137 | ||||||
Genworth Mortgage Holdings, Inc. | ||||||||
6.50% Senior Notes, due 2025 | 750 | 0 | ||||||
Deferred borrowing charges | (12 | ) | 0 | |||||
Total Genworth Mortgage Holdings, Inc. | 738 | 0 | ||||||
Australia (2) | ||||||||
Floating Rate Junior Subordinated Notes, due 2025 | 35 | 140 | ||||||
Floating Rate Junior Subordinated Notes, due 2030 | 136 | 0 | ||||||
Subtotal | 171 | 140 | ||||||
Deferred borrowing charges | (2 | ) | 0 | |||||
Total Australia | 169 | 140 | ||||||
Total | $ | 3,570 | $ | 3,277 | ||||
(1) | We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. |
(2) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 (2) | |||||||||||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||
Increase (reduction) in rate resulting from: | ||||||||||||||||
Swaps terminated prior to the TCJA (1) | 2.1 | 9.2 | 2.9 | 97.2 | ||||||||||||
Stock-based compensation | 0 | 0.2 | 0.1 | 14.6 | ||||||||||||
Non-deductible expense | 0.7 | 1.3 | 0.6 | 14.5 | ||||||||||||
Tax favored investments | (0.3 | ) | (1.6 | ) | (0.4 | ) | (16.3 | ) | ||||||||
Other, net | (0.1 | ) | (0.6 | ) | 0 | 7.5 | ||||||||||
Effective rate | 23.4 | % | 29.5 | % | 24.2 | % | 138.5 | % | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||
Increase (reduction) in rate resulting from: | ||||||||||||||||
Swaps terminated prior to the TCJA | 2.6 | 1.2 | 4.3 | 3.2 | ||||||||||||
Provision to return adjustments | 0.8 | (1.6 | ) | 0.7 | (0.4 | ) | ||||||||||
Effect of foreign operations | 1.1 | (0.8 | ) | 1.8 | 2.5 | |||||||||||
Other, net | 0.1 | 0.1 | 0.8 | 0.3 | ||||||||||||
Effective rate | 25.6 | % | 19.9 | % | 28.6 | % | 26.6 | % | ||||||||
(1) | Tax Cuts and Jobs Act. |
(2) | For the six months ended June 30, 2020, the effective tax rate of 138.5% and the associated higher percentages included in the effective tax rate reconciliation are principally due to the prior year low pre-tax income. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues: | ||||||||||||||||
U.S. Mortgage Insurance segment | $ | 284 | $ | 251 | $ | 819 | $ | 709 | ||||||||
Australia Mortgage Insurance segment | 102 | 82 | 265 | 288 | ||||||||||||
U.S. Life Insurance segment: | ||||||||||||||||
Long-term care insurance | 1,466 | 1,110 | 3,672 | 3,279 | ||||||||||||
Life insurance | 333 | 347 | 1,016 | 1,101 | ||||||||||||
Fixed annuities | 138 | 145 | 400 | 455 | ||||||||||||
U.S. Life Insurance segment | 1,937 | 1,602 | 5,088 | 4,835 | ||||||||||||
Runoff segment | 103 | 74 | 200 | 234 | ||||||||||||
Corporate and Other activities | (6 | ) | 11 | 23 | (8 | ) | ||||||||||
Total revenues | $ | 2,420 | $ | 2,020 | $ | 6,395 | $ | 6,058 | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues: | ||||||||||||||||
Enact segment | $ | 276 | $ | 274 | $ | 564 | $ | 535 | ||||||||
U.S. Life Insurance segment: | ||||||||||||||||
Long-term care insurance | 1,226 | 1,200 | 2,366 | 2,206 | ||||||||||||
Life insurance | 329 | 335 | 677 | 683 | ||||||||||||
Fixed annuities | 122 | 129 | 254 | 262 | ||||||||||||
U.S. Life Insurance segment | 1,677 | 1,664 | 3,297 | 3,151 | ||||||||||||
Runoff segment | 88 | 90 | 164 | 97 | ||||||||||||
Corporate and Other activities | 0 | (25 | ) | 1 | 29 | |||||||||||
Total revenues | $ | 2,041 | $ | 2,003 | $ | 4,026 | $ | 3,812 | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 240 | $ | (441 | ) | $ | 427 | $ | (507 | ) | ||||||
Add: net income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||||||||
Add: net income from discontinued operations attributable to noncontrolling interests | 0 | 23 | 8 | 17 | ||||||||||||
Net income (loss) | 240 | (418 | ) | 435 | (490 | ) | ||||||||||
Less: income (loss) from discontinued operations, net of taxes | (5 | ) | (473 | ) | 16 | (485 | ) | |||||||||
Income (loss) from continuing operations | 245 | 55 | 419 | (5 | ) | |||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders | 245 | 55 | 419 | (5 | ) | |||||||||||
Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Net investment (gains) losses, net (1) | (70 | ) | (97 | ) | (103 | ) | (9 | ) | ||||||||
(Gains) losses on early extinguishment of debt | 0 | (3 | ) | 4 | 9 | |||||||||||
Expenses related to restructuring | 5 | 1 | 26 | 2 | ||||||||||||
Taxes on adjustments | 14 | 21 | 16 | 0 | ||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 194 | $ | (23 | ) | $ | 362 | $ | (3 | ) | ||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 418 | $ | 18 | $ | (89 | ) | $ | 360 | |||||||
Add: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 35 | 45 | ||||||||||||
Add: net income from discontinued operations attributable to noncontrolling interests | 0 | 30 | 0 | 101 | ||||||||||||
Net income (loss) | 436 | 58 | (54 | ) | 506 | |||||||||||
Less: income (loss) from discontinued operations, net of taxes | 1 | (80 | ) | (519 | ) | 42 | ||||||||||
Income from continuing operations | 435 | 138 | 465 | 464 | ||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 35 | 45 | ||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 417 | 128 | 430 | 419 | ||||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Net investment (gains) losses, net (1) | (362 | ) | (5 | ) | (378 | ) | (33 | ) | ||||||||
Goodwill impairment, net (2) | 0 | 0 | 3 | 0 | ||||||||||||
(Gains) losses on early extinguishment of debt | 0 | 0 | 9 | 0 | ||||||||||||
Expenses related to restructuring | 0 | 0 | 2 | 4 | ||||||||||||
Taxes on adjustments | 77 | 0 | 78 | 6 | ||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 132 | $ | 123 | $ | 144 | $ | 396 | ||||||||
(1) | For the three and six months ended |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
U.S. Mortgage Insurance segment | $ | 141 | $ | 137 | $ | 286 | $ | 408 | ||||||||
Australia Mortgage Insurance segment | 7 | 12 | 17 | 39 | ||||||||||||
U.S. Life Insurance segment: | ||||||||||||||||
Long-term care insurance | 59 | 21 | 108 | 38 | ||||||||||||
Life insurance | (69 | ) | (25 | ) | (227 | ) | (17 | ) | ||||||||
Fixed annuities | 24 | 3 | 58 | 39 | ||||||||||||
U.S. Life Insurance segment | 14 | (1 | ) | (61 | ) | 60 | ||||||||||
Runoff segment | 19 | 10 | 30 | 39 | ||||||||||||
Corporate and Other activities | (49 | ) | (35 | ) | (128 | ) | (150 | ) | ||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 132 | $ | 123 | $ | 144 | $ | 396 | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Enact segment | $ | 135 | $ | (3 | ) | $ | 261 | $ | 145 | |||||||
U.S. Life Insurance segment: | ||||||||||||||||
Long-term care insurance | 98 | 48 | 193 | 49 | ||||||||||||
Life insurance | (40 | ) | (81 | ) | (103 | ) | (158 | ) | ||||||||
Fixed annuities | 13 | 28 | 43 | 34 | ||||||||||||
U.S. Life Insurance segment | 71 | (5 | ) | 133 | (75 | ) | ||||||||||
Runoff segment | 15 | 24 | 27 | 11 | ||||||||||||
Corporate and Other activities | (27 | ) | (39 | ) | (59 | ) | (84 | ) | ||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 194 | $ | (23 | ) | $ | 362 | $ | (3 | ) | ||||||
(Amounts in millions) | September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | ||||||||||||
Assets: | ||||||||||||||||
U.S. Mortgage Insurance segment | $ | 5,494 | $ | 4,504 | ||||||||||||
Australia Mortgage Insurance segment | 2,601 | 2,406 | ||||||||||||||
Enact segment | $ | 5,845 | $ | 5,627 | ||||||||||||
U.S. Life Insurance segment | 84,208 | 81,640 | 82,522 | 84,671 | ||||||||||||
Runoff segment | 9,901 | 9,953 | 9,593 | 9,735 | ||||||||||||
Corporate and Other activities | 2,721 | 2,839 | 2,690 | 2,897 | ||||||||||||
Segment assets from continuing operations | 100,650 | 102,930 | ||||||||||||||
Assets related to discontinued operations | 0 | 2,817 | ||||||||||||||
Total assets | $ | 104,925 | $ | 101,342 | $ | 100,650 | $ | 105,747 | ||||||||
(Amounts in millions) | Net unrealized investment gains (losses) (1) | Derivatives qualifying as hedges (2) | Foreign currency translation and other adjustments | Total | ||||||||||||
Balances as of April 1, 2021 | $ | 1,919 | $ | 1,792 | $ | (36 | ) | $ | 3,675 | |||||||
OCI before reclassifications | (54 | ) | 245 | 2 | 193 | |||||||||||
Amounts reclassified from (to) OCI | 0 | (34 | ) | 0 | (34 | ) | ||||||||||
Current period OCI | (54 | ) | 211 | 2 | 159 | |||||||||||
Balances as of June 30, 2021 before noncontrolling interests | 1,865 | 2,003 | (34 | ) | 3,834 | |||||||||||
Less: change in OCI attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||||||||
Balances as of June 30, 2021 | $ | 1,865 | $ | 2,003 | $ | (34 | ) | $ | 3,834 | |||||||
(Amounts in millions) | Net unrealized investment gains (losses) (1) | Derivatives qualifying as hedges (2) | Foreign currency translation and other adjustments | Total | ||||||||||||
Balances as of July 1, 2020 | $ | 1,811 | $ | 2,677 | $ | (41 | ) | $ | 4,447 | |||||||
OCI before reclassifications | 161 | (191 | ) | 33 | 3 | |||||||||||
Amounts reclassified from (to) OCI | (261 | ) | (35 | ) | 0 | (296 | ) | |||||||||
Current period OCI | (100 | ) | (226 | ) | 33 | (293 | ) | |||||||||
Balances as of September 30, 2020 before noncontrolling interests | 1,711 | 2,451 | (8 | ) | 4,154 | |||||||||||
Less: change in OCI attributable to noncontrolling interests | 0 | 0 | 13 | 13 | ||||||||||||
Balances as of September 30, 2020 | $ | 1,711 | $ | 2,451 | $ | (21 | ) | $ | 4,141 | |||||||
(1) | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. |
(2) | See note 5 for additional information. |
(Amounts in millions) | Net unrealized investment gains (losses) (1) | Derivatives qualifying as hedges (2) | Foreign currency translation and other adjustments | Total | ||||||||||||
Balances as of April 1, 2020 | $ | 1,140 | $ | 2,755 | $ | (80 | ) | $ | 3,815 | |||||||
OCI before reclassifications | 762 | (48 | ) | 73 | 787 | |||||||||||
Amounts reclassified from (to) OCI | (88 | ) | (30 | ) | 0 | (118 | ) | |||||||||
Current period OCI | 674 | (78 | ) | 73 | 669 | |||||||||||
Balances as of June 30, 2020 before noncontrolling interests | 1,814 | 2,677 | (7 | ) | 4,484 | |||||||||||
Less: change in OCI attributable to noncontrolling interests | 3 | 0 | 34 | 37 | ||||||||||||
Balances as of June 30, 2020 | $ | 1,811 | $ | 2,677 | $ | (41 | ) | $ | 4,447 | |||||||
(Amounts in millions) | Net unrealized investment gains (losses) (1) | Derivatives qualifying as hedges (2) | Foreign currency translation and other adjustments | Total | ||||||||||||
Balances as of July 1, 2019 | $ | 1,305 | $ | 1,983 | $ | (275 | ) | $ | 3,013 | |||||||
OCI before reclassifications | 384 | 306 | (64 | ) | 626 | |||||||||||
Amounts reclassified from (to) OCI | (13 | ) | (30 | ) | 0 | (43 | ) | |||||||||
Current period OCI | 371 | 276 | (64 | ) | 583 | |||||||||||
Balances as of September 30, 2019 before noncontrolling interests | 1,676 | 2,259 | (339 | ) | 3,596 | |||||||||||
Less: change in OCI attributable to noncontrolling interests | 1 | 0 | (27 | ) | (26 | ) | ||||||||||
Balances as of September 30, 2019 | $ | 1,675 | $ | 2,259 | $ | (312 | ) | $ | 3,622 | |||||||
(1) | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. |
(2) | See note 5 for additional information. |
(Amounts in millions) | Net unrealized investment gains (losses) (1) | Derivatives qualifying as hedges (2) | Foreign currency translation and other adjustments | Total | ||||||||||||
Balances as of January 1, 2021 | $ | 2,214 | $ | 2,211 | $ | 0 | $ | 4,425 | ||||||||
OCI before reclassifications | (370 | ) | (140 | ) | 138 | (372 | ) | |||||||||
Amounts reclassified from (to) OCI | (4 | ) | (68 | ) | 0 | (72 | ) | |||||||||
Current period OCI | (374 | ) | (208 | ) | 138 | (444 | ) | |||||||||
Balances as of June 30, 2021 before noncontrolling interests | 1,840 | 2,003 | 138 | 3,981 | ||||||||||||
Less: change in OCI attributable to noncontrolling interests | (25 | ) | 0 | 172 | 147 | |||||||||||
Balances as of June 30, 2021 | $ | 1,865 | $ | 2,003 | $ | (34 | ) | $ | 3,834 | |||||||
(Amounts in millions) | Net unrealized investment gains (losses) (1) | Derivatives qualifying as hedges (2) | Foreign currency translation and other adjustments | Total | ||||||||||||
Balances as of January 1, 2020 | $ | 1,456 | $ | 2,002 | $ | (25 | ) | $ | 3,433 | |||||||
OCI before reclassifications | 609 | 544 | 8 | 1,161 | ||||||||||||
Amounts reclassified from (to) OCI | (355 | ) | (95 | ) | 0 | (450 | ) | |||||||||
Current period OCI | 254 | 449 | 8 | 711 | ||||||||||||
Balances as of September 30, 2020 before noncontrolling interests | 1,710 | 2,451 | (17 | ) | 4,144 | |||||||||||
Less: change in OCI attributable to noncontrolling interests | (1 | ) | 0 | 4 | 3 | |||||||||||
Balances as of September 30, 2020 | $ | 1,711 | $ | 2,451 | $ | (21 | ) | $ | 4,141 | |||||||
(1) | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. |
(2) | See note 5 for additional information. |
(Amounts in millions) | Net unrealized investment gains (losses) (1) | Derivatives qualifying as hedges (2) | Foreign currency translation and other adjustments | Total | ||||||||||||
Balances as of January 1, 2020 | $ | 1,456 | $ | 2,002 | $ | (25 | ) | $ | 3,433 | |||||||
OCI before reclassifications | 448 | 735 | (25 | ) | 1,158 | |||||||||||
Amounts reclassified from (to) OCI | (94 | ) | (60 | ) | 0 | (154 | ) | |||||||||
Current period OCI | 354 | 675 | (25 | ) | 1,004 | |||||||||||
Balances as of June 30, 2020 before noncontrolling interests | 1,810 | 2,677 | (50 | ) | 4,437 | |||||||||||
Less: change in OCI attributable to noncontrolling interests | (1 | ) | 0 | (9 | ) | (10 | ) | |||||||||
Balances as of June 30, 2020 | $ | 1,811 | $ | 2,677 | $ | (41 | ) | $ | 4,447 | |||||||
(Amounts in millions) | Net unrealized investment gains (losses) (1) | Derivatives qualifying as hedges (2) | Foreign currency translation and other adjustments | Total | ||||||||||||
Balances as of January 1, 2019 | $ | 595 | $ | 1,781 | $ | (332 | ) | $ | 2,044 | |||||||
OCI before reclassifications | 1,186 | 560 | 33 | 1,779 | ||||||||||||
Amounts reclassified from (to) OCI | (59 | ) | (82 | ) | 0 | (141 | ) | |||||||||
Current period OCI | 1,127 | 478 | 33 | 1,638 | ||||||||||||
Balances as of September 30, 2019 before noncontrolling interests | 1,722 | 2,259 | (299 | ) | 3,682 | |||||||||||
Less: change in OCI attributable to noncontrolling interests | 47 | 0 | 13 | 60 | ||||||||||||
Balances as of September 30, 2019 | $ | 1,675 | $ | 2,259 | $ | (312 | ) | $ | 3,622 | |||||||
(1) | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. |
(2) | See note 5 for additional information. |
Amount reclassified from accumulated other comprehensive income (loss) | Affected line item in the consolidated statements of income | |||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
Net unrealized investment (gains) losses: | ||||||||||||||||||
Unrealized (gains) losses on investments (1) | $ | 0 | $ | (112 | ) | $ | (5 | ) | $ | (119 | ) | Net investment (gains) losses | ||||||
Income taxes | 0 | 24 | 1 | 25 | Provision for income taxes | |||||||||||||
Total | $ | 0 | $ | (88 | ) | $ | (4 | ) | $ | (94 | ) | |||||||
Derivatives qualifying as hedges: | ||||||||||||||||||
Interest rate swaps hedging assets | $ | (52 | ) | $ | (46 | ) | $ | (104 | ) | $ | (89 | ) | Net investment income | |||||
Interest rate swaps hedging assets | 0 | 0 | 0 | (4 | ) | Net investment (gains) losses | ||||||||||||
Income taxes | 18 | 16 | 36 | 33 | Provision for income taxes | |||||||||||||
Total | $ | (34 | ) | $ | (30 | ) | $ | (68 | ) | $ | (60 | ) | ||||||
Amount reclassified from accumulated other comprehensive income (loss) | Affected line item in the consolidated statements of income | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||
Net unrealized investment (gains) losses: | ||||||||||||||||||
Unrealized (gains) losses on investments (1) | $ | (331 | ) | $ | (17 | ) | $ | (450 | ) | $ | (75 | ) | Net investment (gains) losses | |||||
Income taxes | 70 | 4 | 95 | 16 | Provision for income taxes | |||||||||||||
Total | $ | (261 | ) | $ | (13 | ) | $ | (355 | ) | $ | (59 | ) | ||||||
Derivatives qualifying as hedges: | ||||||||||||||||||
Interest rate swaps hedging assets | $ | (50 | ) | $ | (41 | ) | $ | (139 | ) | $ | (121 | ) | Net investment income | |||||
Interest rate swaps hedging assets | (4 | ) | (4 | ) | (8 | ) | (6 | ) | Net investment (gains) losses | |||||||||
Foreign currency swaps | 0 | (1 | ) | 0 | 0 | Net investment income | ||||||||||||
Income taxes | 19 | 16 | 52 | 45 | Provision for income taxes | |||||||||||||
Total | $ | (35 | ) | $ | (30 | ) | $ | (95 | ) | $ | (82 | ) | ||||||
(1) | Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
(Amounts in millions) | June 30, 2021 | December 31, 2020 | ||||||
Assets | ||||||||
Investments: | ||||||||
Fixed maturity securities available-for-sale, at fair value | $ | 0 | $ | 2,295 | ||||
Equity securities, at fair value | 0 | 90 | ||||||
Other invested assets | 0 | 154 | ||||||
Total investments | 0 | 2,539 | ||||||
Cash, cash equivalents and restricted cash | 0 | 95 | ||||||
Accrued investment income | 0 | 16 | ||||||
Deferred acquisition costs | 0 | 42 | ||||||
Intangible assets | 0 | 43 | ||||||
Other assets | 0 | 40 | ||||||
Deferred tax asset | 0 | 42 | ||||||
Assets related to discontinued operations | $ | 0 | $ | 2,817 | ||||
Liabilities | ||||||||
Liability for policy and contract claims | $ | 0 | $ | 331 | ||||
Unearned premiums | 0 | 1,193 | ||||||
Other liabilities | 0 | 104 | ||||||
Long-term borrowings | 0 | 145 | ||||||
Liabilities related to discontinued operations | $ | 0 | $ | 1,773 | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 0 | $ | 62 | $ | 51 | $ | 131 | ||||||||
Net investment income | 0 | 7 | 4 | 18 | ||||||||||||
Net investment gains (losses) | 0 | 66 | (5 | ) | 13 | |||||||||||
Policy fees and other income | 0 | 0 | 0 | 1 | ||||||||||||
Total revenues | 0 | 135 | 50 | 163 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 0 | 39 | 11 | 63 | ||||||||||||
Acquisition and operating expenses, net of deferrals | 0 | 13 | 7 | 25 | ||||||||||||
Amortization of deferred acquisition costs and intangibles | 0 | 6 | 6 | 14 | ||||||||||||
Goodwill impairment | 0 | 5 | 0 | 5 | ||||||||||||
Interest expense | 0 | 2 | 1 | 3 | ||||||||||||
Total benefits and expenses | 0 | 65 | 25 | 110 | ||||||||||||
Income before income taxes and loss on sale (1) | 0 | 70 | 25 | 53 | ||||||||||||
Provision for income taxes | 0 | 23 | 8 | 18 | ||||||||||||
Income before loss on sale | 0 | 47 | 17 | 35 | ||||||||||||
Loss on sale, net of taxes | 0 | 0 | (3 | ) | 0 | |||||||||||
Income from discontinued operations, net of taxes | 0 | 47 | 14 | 35 | ||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 23 | 8 | 17 | ||||||||||||
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders | $ | 0 | $ | 24 | $ | 6 | $ | 18 | ||||||||
(1) | The three months ended June 30, 2020, includes pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $37 million. The six months ended June 30, 2021 and 2020, includes pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $13 million and $28 million, respectively. |
(Amounts in millions) | September 30, 2020 | British Pounds | U.S. Dollar | |||||||||||||||||||||
British Pounds | U.S. Dollar | June 30, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||
Installment payments due to AXA: | ||||||||||||||||||||||||
June 2022 | £ | 159 | $ | 206 | ||||||||||||||||||||
June 2022: | ||||||||||||||||||||||||
Beginning balance | £ | 159 | £ | 159 | $ | 217 | $ | 217 | ||||||||||||||||
Prepayments (1) | (159 | ) | 0 | (217 | ) | 0 | ||||||||||||||||||
Ending balance | 0 | 159 | 0 | 217 | ||||||||||||||||||||
September 2022: | ||||||||||||||||||||||||
Beginning balance | 158 | 205 | 187 | 158 | 256 | 217 | ||||||||||||||||||
Prepayments (1) | (17 | ) | 0 | (28 | ) | 0 | ||||||||||||||||||
Amounts billed as future losses | 29 | 38 | 41 | 29 | 56 | 39 | ||||||||||||||||||
Foreign exchange and other | 0 | 0 | 8 | 0 | ||||||||||||||||||||
Ending balance | 187 | 243 | 211 | 187 | 292 | 256 | ||||||||||||||||||
Total amounts due under the promissory note | 346 | 449 | 211 | 346 | 292 | 473 | ||||||||||||||||||
Future claims: | ||||||||||||||||||||||||
Estimated beginning balance | 107 | 138 | 79 | 107 | 108 | 146 | ||||||||||||||||||
Less: Amounts billed to date | (29 | ) | (38 | ) | ||||||||||||||||||||
Change in estimated future claims | 0 | 1 | 0 | 1 | ||||||||||||||||||||
Less: Amounts billed | (41 | ) | (29 | ) | (56 | ) | (39 | ) | ||||||||||||||||
Estimated future billings | 78 | 100 | 38 | 79 | 52 | 108 | ||||||||||||||||||
Total amounts due to AXA under the settlement agreement | £ | 424 | $ | 549 | ||||||||||||||||||||
Total amounts due to AXA under the settlement agreement (2) | £ | 249 | £ | 425 | $ | 344 | $ | 581 | ||||||||||||||||
(1) | On March 3, 2021, we completed the sale of Genworth Australia and received net proceeds of approximately AUD483 million ($370 million). The sale of Genworth Australia resulted in a mandatory principal payment of approximately £176 million ($245 million) related to our outstanding secured promissory note issued to AXA, dated as of July 20, 2020, as amended by the parties in connection with the Genworth Australia sale. |
(2) | Amounts exclude accrued interest on the promissory note and certain other expenses. As of June 30, 2021, due principally to the mandatory payment made in connection with the Genworth Australia sale, we reduced the amount of accrued interest payable on the promissory note resulting in a reduction in the total amount owed to AXA of approximately $2 million. |
the consummation of certain qualifying debt transactions in which total gross proceeds of at least $750 million are raised; |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
we may be unable |
decreases were partially offset by higher mortality in our term universal life insurance product and a DAC impairment of $13 million in our universal life insurance products in the current year. |
premium period and from lower lapses primarily associated with our large 20-year term life insurance block written at the end of 2000 as it entered its post-level premium period. These decreases were partially offset by higher mortality in our universal and term universal life insurance products and DAC impairments of $30 million in our universal life insurance products in the current year. |
in PMIERs capital credit in the second quarter of 2021. Our PMIERs required assets as of June 30, 2021 and March 31, 2021 benefited from the application of a 0.30 multiplier applied to the risk-based required asset amount factor for certain non-performing loans. The application of the 0.30 multiplier to all eligible delinquencies provided $760 million of benefit to our June 30, 2021 PMIERs required assets compared to $1,012 million of benefit as of March 31, 2021. See “Item 2—Enact segment—Trends and conditions” for additional details. |
Three months ended September 30, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 1,034 | $ | 1,015 | $ | 19 | 2 | % | $ | 947 | $ | 957 | $ | (10 | ) | (1 | )% | |||||||||||||||
Net investment income | 827 | 816 | 11 | 1 | % | 844 | 779 | 65 | 8 | % | ||||||||||||||||||||||
Net investment gains (losses) | 375 | (2 | ) | 377 | NM | (1) | 70 | 93 | (23 | ) | (25 | )% | ||||||||||||||||||||
Policy fees and other income | 184 | 191 | (7 | ) | (4 | )% | 180 | 174 | 6 | 3 | % | |||||||||||||||||||||
Total revenues | 2,420 | 2,020 | 400 | 20 | % | 2,041 | 2,003 | 38 | 2 | % | ||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 1,299 | 1,284 | 15 | 1 | % | 1,161 | 1,447 | (286 | ) | (20 | )% | |||||||||||||||||||||
Interest credited | 137 | 146 | (9 | ) | (6 | )% | 127 | 139 | (12 | ) | (9 | )% | ||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 249 | 247 | 2 | 1 | % | 304 | 210 | 94 | 45 | % | ||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 101 | 112 | (11 | ) | (10 | )% | 86 | 87 | (1 | ) | (1 | )% | ||||||||||||||||||||
Interest expense | 49 | 59 | (10 | ) | (17 | )% | 43 | 42 | 1 | 2 | % | |||||||||||||||||||||
Total benefits and expenses | 1,835 | 1,848 | (13 | ) | (1 | )% | 1,721 | 1,925 | (204 | ) | (11 | )% | ||||||||||||||||||||
Income from continuing operations before income taxes | 585 | 172 | 413 | NM | (1) | 320 | 78 | 242 | NM | (1) | ||||||||||||||||||||||
Provision for income taxes | 150 | 34 | 116 | NM | (1) | 75 | 23 | 52 | NM | (1) | ||||||||||||||||||||||
Income from continuing operations | 435 | 138 | 297 | NM | (1) | 245 | 55 | 190 | NM | (1) | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 1 | (80 | ) | 81 | 101 | % | ||||||||||||||||||||||||||
Loss from discontinued operations, net of taxes | (5 | ) | (473 | ) | 468 | 99 | % | |||||||||||||||||||||||||
Net income | 436 | 58 | 378 | NM | (1) | |||||||||||||||||||||||||||
Net income (loss) | 240 | (418 | ) | 658 | 157 | % | ||||||||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 8 | 80 | % | — | — | — | — | % | ||||||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | 30 | (30 | ) | (100 | )% | — | 23 | (23 | ) | (100 | )% | ||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 418 | $ | 18 | $ | 400 | NM | (1) | ||||||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 240 | $ | (441 | ) | $ | 681 | 154 | % | |||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 417 | $ | 128 | $ | 289 | NM | (1) | $ | 245 | $ | 55 | $ | 190 | NM | (1) | ||||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | 1 | (110 | ) | 111 | 101 | % | ||||||||||||||||||||||||||
Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders | (5 | ) | (496 | ) | 491 | 99 | % | |||||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 418 | $ | 18 | $ | 400 | NM | (1) | ||||||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 240 | $ | (441 | ) | $ | 681 | 154 | % | |||||||||||||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
approved and implemented. Our life insurance business decreased $8 million mainly attributable to the continued runoff of our term and whole life insurance products in the current year. |
Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 3,068 | $ | 3,004 | $ | 64 | 2 | % | ||||||||
Net investment income | 2,406 | 2,426 | (20 | ) | (1 | )% | ||||||||||
Net investment gains (losses) | 382 | 27 | 355 | NM | (1) | |||||||||||
Policy fees and other income | 539 | 601 | (62 | ) | (10 | )% | ||||||||||
Total revenues | 6,395 | 6,058 | 337 | 6 | % | |||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 4,146 | 3,817 | 329 | 9 | % | |||||||||||
Interest credited | 417 | 439 | (22 | ) | (5 | )% | ||||||||||
Acquisition and operating expenses, net of deferrals | 721 | 713 | 8 | 1 | % | |||||||||||
Amortization of deferred acquisition costs and intangibles | 310 | 277 | 33 | 12 | % | |||||||||||
Goodwill impairment | 5 | — | 5 | NM | (1) | |||||||||||
Interest expense | 145 | 179 | (34 | ) | (19 | )% | ||||||||||
Total benefits and expenses | 5,744 | 5,425 | 319 | 6 | % | |||||||||||
Income from continuing operations before income taxes | 651 | 633 | 18 | 3 | % | |||||||||||
Provision for income taxes | 186 | 169 | 17 | 10 | % | |||||||||||
Income from continuing operations | 465 | 464 | 1 | — | % | |||||||||||
Income (loss) from discontinued operations, net of taxes | (519 | ) | 42 | (561 | ) | NM | (1) | |||||||||
Net income (loss) | (54 | ) | 506 | (560 | ) | (111 | )% | |||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 35 | 45 | (10 | ) | (22 | )% | ||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | 101 | (101 | ) | (100 | )% | ||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | (89 | ) | $ | 360 | $ | (449 | ) | (125 | )% | ||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 430 | $ | 419 | $ | 11 | 3 | % | ||||||||
Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders | (519 | ) | (59 | ) | (460 | ) | NM | (1) | ||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | (89 | ) | $ | 360 | $ | (449 | ) | (125 | )% | ||||||
Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 vs. 2020 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 1,915 | $ | 1,903 | $ | 12 | 1 | % | ||||||||
Net investment income | 1,645 | 1,561 | 84 | 5 | % | |||||||||||
Net investment gains (losses) | 103 | (6 | ) | 109 | NM | (1) | ||||||||||
Policy fees and other income | 363 | 354 | 9 | 3 | % | |||||||||||
Total revenues | 4,026 | 3,812 | 214 | 6 | % | |||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 2,379 | 2,784 | (405 | ) | (15 | )% | ||||||||||
Interest credited | 258 | 280 | (22 | ) | (8 | )% | ||||||||||
Acquisition and operating expenses, net of deferrals | 579 | 447 | 132 | 30 | % | |||||||||||
Amortization of deferred acquisition costs and intangibles | 163 | 195 | (32 | ) | (16 | )% | ||||||||||
Interest expense | 94 | 93 | 1 | 1 | % | |||||||||||
Total benefits and expenses | 3,473 | 3,799 | (326 | ) | (9 | )% | ||||||||||
Income from continuing operations before income taxes | 553 | 13 | 540 | NM | (1) | |||||||||||
Provision for income taxes | 134 | 18 | 116 | NM | (1) | |||||||||||
Income (loss) from continuing operations | 419 | (5 | ) | 424 | NM | (1) | ||||||||||
Income (loss) from discontinued operations, net of taxes | 16 | (485 | ) | 501 | 103 | % | ||||||||||
Net income (loss) | 435 | (490 | ) | 925 | 189 | % | ||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | — | — | — | — | % | |||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 8 | 17 | (9 | ) | (53 | )% | ||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 427 | $ | (507 | ) | $ | 934 | 184 | % | |||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 419 | $ | (5 | ) | $ | 424 | NM | (1) | |||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | 8 | (502 | ) | 510 | 102 | % | ||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 427 | $ | (507 | ) | $ | 934 | 184 | % | |||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
rate actions approved and implemented, partially offset by policy terminations and policies entering paid-up status in the current year. Our life insurance business decreased $16 million mainly attributable to the continued runoff of our term and whole life insurance products in the current year. |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 418 | $ | 18 | $ | (89 | ) | $ | 360 | $ | 240 | $ | (441 | ) | $ | 427 | $ | (507 | ) | |||||||||||||
Add: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 35 | 45 | — | — | — | — | ||||||||||||||||||||||||
Add: net income from discontinued operations attributable to noncontrolling interests | — | 30 | — | 101 | — | 23 | 8 | 17 | ||||||||||||||||||||||||
Net income (loss) | 436 | 58 | (54 | ) | 506 | 240 | (418 | ) | 435 | (490 | ) | |||||||||||||||||||||
Less: income (loss) from discontinued operations, net of taxes | 1 | (80 | ) | (519 | ) | 42 | (5 | ) | (473 | ) | 16 | (485 | ) | |||||||||||||||||||
Income from continuing operations | 435 | 138 | 465 | 464 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations | 245 | 55 | 419 | (5 | ) | |||||||||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 35 | 45 | — | — | — | — | ||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 417 | 128 | 430 | 419 | ||||||||||||||||||||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders | 245 | 55 | 419 | (5 | ) | |||||||||||||||||||||||||||
Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses, net (1) | (362 | ) | (5 | ) | (378 | ) | (33 | ) | (70 | ) | (97 | ) | (103 | ) | (9 | ) | ||||||||||||||||
Goodwill impairment, net (2) | — | — | 3 | — | ||||||||||||||||||||||||||||
(Gains) losses on early extinguishment of debt, net | — | — | 9 | — | — | (3 | ) | 4 | 9 | |||||||||||||||||||||||
Expenses related to restructuring | — | — | 2 | 4 | 5 | 1 | 26 | 2 | ||||||||||||||||||||||||
Taxes on adjustments | 77 | — | 78 | 6 | 14 | 21 | 16 | — | ||||||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 132 | $ | 123 | $ | 144 | $ | 396 | ||||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 194 | $ | (23 | ) | $ | 362 | $ | (3 | ) | ||||||||||||||||||||||
(1) | For the three and six months ended |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
(Amounts in millions, except per share amounts) | 2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.83 | $ | 0.25 | $ | 0.85 | $ | 0.83 | $ | 0.48 | $ | 0.11 | $ | 0.83 | $ | (0.01 | ) | |||||||||||||||
Diluted | $ | 0.82 | $ | 0.25 | $ | 0.84 | $ | 0.82 | $ | 0.47 | $ | 0.11 | $ | 0.82 | $ | (0.01 | ) | |||||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.83 | $ | 0.04 | $ | (0.18 | ) | $ | 0.72 | $ | 0.47 | $ | (0.87 | ) | $ | 0.84 | $ | (1.00 | ) | |||||||||||||
Diluted | $ | 0.82 | $ | 0.04 | $ | (0.17 | ) | $ | 0.71 | $ | 0.47 | $ | (0.86 | ) | $ | 0.83 | $ | (1.00 | ) | |||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.26 | $ | 0.25 | $ | 0.29 | $ | 0.79 | $ | 0.38 | $ | (0.05 | ) | $ | 0.71 | $ | (0.01 | ) | ||||||||||||||
Diluted | $ | 0.26 | $ | 0.24 | $ | 0.28 | $ | 0.78 | $ | 0.38 | $ | (0.05 | ) | $ | 0.70 | $ | (0.01 | ) | ||||||||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 505.6 | 503.5 | 505.1 | 502.7 | 507.0 | 505.4 | 506.5 | 504.8 | ||||||||||||||||||||||||
Diluted | 511.5 | 511.2 | 511.2 | 509.5 | ||||||||||||||||||||||||||||
Diluted (1) | 515.0 | 512.5 | 514.4 | 504.8 | ||||||||||||||||||||||||||||
(1) | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 6.3 million would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the six months ended June 30, 2020, dilutive potential weighted-average common shares outstanding would have been 511.1 million. |
Three months ended September 30, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 251 | $ | 219 | $ | 32 | 15 | % | $ | 243 | $ | 243 | $ | — | — | % | ||||||||||||||||
Net investment income | 34 | 31 | 3 | 10 | % | 35 | 31 | 4 | 13 | % | ||||||||||||||||||||||
Net investment gains (losses) | (2 | ) | — | (2 | ) | NM | (1) | (2 | ) | (1 | ) | (1 | ) | (100 | )% | |||||||||||||||||
Policy fees and other income | 1 | 1 | — | — | % | — | 1 | (1 | ) | (100 | )% | |||||||||||||||||||||
Total revenues | 284 | 251 | 33 | 13 | % | 276 | 274 | 2 | 1 | % | ||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 45 | 23 | 22 | 96 | % | 30 | 228 | (198 | ) | (87 | )% | |||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 54 | 51 | 3 | 6 | % | 63 | 47 | 16 | 34 | % | ||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 3 | 3 | — | — | % | 4 | 4 | — | — | % | ||||||||||||||||||||||
Interest expense | 6 | — | 6 | NM | (1) | 12 | — | 12 | NM | (1) | ||||||||||||||||||||||
Total benefits and expenses | 108 | 77 | 31 | 40 | % | 109 | 279 | (170 | ) | (61 | )% | |||||||||||||||||||||
Income from continuing operations before income taxes | 176 | 174 | 2 | 1 | % | |||||||||||||||||||||||||||
Provision for income taxes | 37 | 37 | — | — | % | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 167 | (5 | ) | 172 | NM | (1) | ||||||||||||||||||||||||||
Provision (benefit) for income taxes | 35 | (1 | ) | 36 | NM | (1) | ||||||||||||||||||||||||||
Income from continuing operations | 139 | 137 | 2 | 1 | % | |||||||||||||||||||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | 132 | (4 | ) | 136 | NM | (1) | ||||||||||||||||||||||||||
Adjustments to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | 2 | — | 2 | NM | (1) | 2 | 1 | 1 | 100 | % | ||||||||||||||||||||||
Expenses related to restructuring | 2 | — | 2 | NM | (1) | |||||||||||||||||||||||||||
Taxes on adjustments | — | — | — | — | % | (1 | ) | — | (1 | ) | NM | (1) | ||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 141 | $ | 137 | $ | 4 | 3 | % | ||||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 135 | $ | (3 | ) | $ | 138 | NM | (1) | |||||||||||||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 vs. 2020 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 495 | $ | 469 | $ | 26 | 6 | % | ||||||||
Net investment income | 70 | 64 | 6 | 9 | % | |||||||||||
Net investment gains (losses) | (3 | ) | (1 | ) | (2 | ) | (200 | )% | ||||||||
Policy fees and other income | 2 | 3 | (1 | ) | (33 | )% | ||||||||||
Total revenues | 564 | 535 | 29 | 5 | % | |||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 85 | 247 | (162 | ) | (66 | )% | ||||||||||
Acquisition and operating expenses, net of deferrals | 120 | 97 | 23 | 24 | % | |||||||||||
Amortization of deferred acquisition costs and intangibles | 8 | 8 | — | — | % | |||||||||||
Interest expense | 25 | — | 25 | NM | (1) | |||||||||||
Total benefits and expenses | 238 | 352 | (114 | ) | (32 | )% | ||||||||||
Income from continuing operations before income taxes | 326 | 183 | 143 | 78 | % | |||||||||||
Provision for income taxes | 69 | 39 | 30 | 77 | % | |||||||||||
Income from continuing operations | 257 | 144 | 113 | 78 | % | |||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||
Net investment (gains) losses | 3 | 1 | 2 | 200 | % | |||||||||||
Expenses related to restructuring | 2 | — | 2 | NM | (1) | |||||||||||
Taxes on adjustments | (1 | ) | — | (1 | ) | NM | (1) | |||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 261 | $ | 145 | $ | 116 | 80 | % | ||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 720 | $ | 619 | $ | 101 | 16 | % | ||||||||
Net investment income | 98 | 87 | 11 | 13 | % | |||||||||||
Net investment gains (losses) | (3 | ) | — | (3 | ) | NM | (1) | |||||||||
Policy fees and other income | 4 | 3 | 1 | 33 | % | |||||||||||
Total revenues | 819 | 709 | 110 | 16 | % | |||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 292 | 39 | 253 | NM | (1) | |||||||||||
Acquisition and operating expenses, net of deferrals | 151 | 141 | 10 | 7 | % | |||||||||||
Amortization of deferred acquisition costs and intangibles | 11 | 11 | — | — | % | |||||||||||
Interest expense | 6 | — | 6 | NM | (1) | |||||||||||
Total benefits and expenses | 460 | 191 | 269 | 141 | % | |||||||||||
Income from continuing operations before income taxes | 359 | 518 | (159 | ) | (31 | )% | ||||||||||
Provision for income taxes | 76 | 110 | (34 | ) | (31 | )% | ||||||||||
Income from continuing operations | 283 | 408 | (125 | ) | (31 | )% | ||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||
Net investment (gains) losses | 3 | — | 3 | NM | (1) | |||||||||||
Taxes on adjustments | — | — | — | — | % | |||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 286 | $ | 408 | $ | (122 | ) | (30 | )% | |||||||
As of September 30, | Increase (decrease) and percentage change | As of June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
Primary insurance in-force (1) | $ | 212,400 | $ | 185,400 | $ | 27,000 | 15 | % | $ | 217,500 | $ | 197,000 | $ | 20,500 | 10 | % | ||||||||||||||||
Risk in-force | $ | 51,500 | $ | 45,100 | $ | 6,400 | 14 | % | ||||||||||||||||||||||||
Risk in-force: | ||||||||||||||||||||||||||||||||
Primary | $ | 54,600 | $ | 49,900 | $ | 4,700 | 9 | % | ||||||||||||||||||||||||
Pool | 100 | 100 | — | — | % | |||||||||||||||||||||||||||
Total risk in-force | $ | 54,700 | $ | 50,000 | $ | 4,700 | 9 | % | ||||||||||||||||||||||||
(1) | Primary insurance in-force represents the aggregate |
Three months ended June 30, | Increase (decrease) and percentage change | Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 vs. 2020 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
New insurance written | $ | 26,700 | $ | 28,400 | $ | (1,700 | ) | (6 | )% | $ | 51,600 | $ | 46,300 | $ | 5,300 | 11 | % | |||||||||||||||
Net premiums written | $ | 225 | $ | 217 | $ | 8 | 4 | % | $ | 451 | $ | 425 | $ | 26 | 6 | % |
Three months ended September 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2020 | 2019 | 2020 vs. 2019 | ||||||||||||||||||||||||||
New insurance written | $ | 26,600 | $ | 18,900 | $ | 7,700 | 41 | % | $ | 72,900 | $ | 44,300 | $ | 28,600 | 65 | % | ||||||||||||||||
Net premiums written | $ | 240 | $ | 213 | $ | 27 | 13 | % | $ | 665 | $ | 610 | $ | 55 | 9 | % |
Three months ended September 30, | Increase (decrease) | Nine months ended September 30, | Increase (decrease) | Three months ended June 30, | Increase (decrease) | Six months ended June 30, | Increase (decrease) | |||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 vs. 2019 | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | 2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||||
Loss ratio | 18 | % | 11 | % | 7 | % | 41 | % | 6 | % | 35 | % | 12 | % | 94 | % | (82 | )% | 17 | % | 53 | % | (36 | )% | ||||||||||||||||||||||||
Expense ratio (net earned premiums) | 23 | % | 24 | % | (1 | )% | 23 | % | 24 | % | (1 | )% | 27 | % | 21 | % | 6 | % | 26 | % | 22 | % | 4 | % | ||||||||||||||||||||||||
Expense ratio (net premiums written) | 24 | % | 25 | % | (1 | )% | 24 | % | 25 | % | (1 | )% |
(Amounts in millions) | 2021 | 2020 | ||||||
Primary insurance in-force by loan-to-value ratio at origination: | ||||||||
95.01% and above | $ | 33,657 | $ | 33,483 | ||||
90.01% to 95.00% | 94,307 | 89,035 | ||||||
85.01% to 90.00% | 61,234 | 53,794 | ||||||
85.00% and below | 28,279 | 20,735 | ||||||
Total | $ | 217,477 | $ | 197,047 | ||||
Primary risk in-force by loan-to-value ratio at origination: | ||||||||
95.01% and above | $ | 9,228 | $ | 8,789 | ||||
90.01% to 95.00% | 27,308 | 25,686 | ||||||
85.01% to 90.00% | 14,776 | 12,957 | ||||||
85.00% and below | 3,331 | 2,436 | ||||||
Total | $ | 54,643 | $ | 49,868 | ||||
Primary insurance in-force by FICO (1) score at origination: | ||||||||
Over 760 | $ | 83,602 | $ | 75,428 | ||||
740-759 | 34,402 | 32,649 | ||||||
720-739 | 30,964 | 28,637 | ||||||
700-719 | 27,032 | 23,746 | ||||||
680-699 | 21,469 | 18,271 | ||||||
660-679 (2) | 10,192 | 8,781 | ||||||
640-659 | 6,008 | 5,521 | ||||||
620-639 | 2,838 | 2,786 | ||||||
<620 | 970 | 1,228 | ||||||
Total | $ | 217,477 | $ | 197,047 | ||||
Primary risk in-force by FICO score at origination: | ||||||||
Over 760 | $ | 20,908 | $ | 19,046 | ||||
740-759 | 8,628 | 8,303 | ||||||
720-739 | 7,879 | 7,312 | ||||||
700-719 | 6,848 | 6,016 | ||||||
680-699 | 5,385 | 4,629 | ||||||
660-679 (2) | 2,531 | 2,180 | ||||||
640-659 | 1,494 | 1,358 | ||||||
620-639 | 720 | 707 | ||||||
<620 | 250 | 317 | ||||||
Total | $ | 54,643 | $ | 49,868 | ||||
(1) | Fair Isaac Company. |
(2) | Loans with unknown FICO scores are included in the 660-679 category. |
September 30, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2021 | December 31, 2020 | June 30, 2020 | |||||||||||||||||||
Primary insurance: | ||||||||||||||||||||||||
Insured loans in-force | 913,974 | 851,070 | 833,215 | 933,616 | 924,624 | 896,232 | ||||||||||||||||||
Delinquent loans | 49,692 | 16,392 | 15,758 | 33,568 | 44,904 | 53,587 | ||||||||||||||||||
Percentage of delinquent loans (delinquency rate) | 5.44 | % | 1.93 | % | 1.89 | % | 3.60 | % | 4.86 | % | 5.98 | % | ||||||||||||
A minus and sub-prime loans in-force | 10,984 | 12,688 | 13,345 | |||||||||||||||||||||
A minus and sub-prime delinquent loans | 2,342 | 2,266 | 2,320 | |||||||||||||||||||||
Percentage of A minus and sub-prime delinquent loans (delinquency rate) | 21.32 | % | 17.86 | % | 17.38 | % | ||||||||||||||||||
Pool insurance: | ||||||||||||||||||||||||
Insured loans in-force | 11,888 | 13,266 | 13,738 | |||||||||||||||||||||
Delinquent loans | 434 | 382 | 415 | |||||||||||||||||||||
Percentage of delinquent loans (delinquency rate) | 3.65 | % | 2.88 | % | 3.02 | % |
September 30, 2020 | June 30, 2021 | |||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Delinquencies | Direct case reserves (1) | Risk in-force | Reserves as % of risk in-force | Delinquencies | Direct case reserves (1) | Risk in-force | Reserves as % of risk in-force | ||||||||||||||||||||||||
Payments in default: | ||||||||||||||||||||||||||||||||
3 payments or less | 13,904 | $ | 49 | $ | 763 | 6 | % | 6,030 | $ | 32 | $ | 318 | 10 | % | ||||||||||||||||||
4—11 payments | 32,366 | 264 | 2,014 | 13 | % | |||||||||||||||||||||||||||
4 - 11 payments | 12,378 | 151 | 717 | 21 | % | |||||||||||||||||||||||||||
12 payments or more | 3,422 | 123 | 168 | 73 | % | 15,160 | 406 | 914 | 44 | % | ||||||||||||||||||||||
Total | 49,692 | $ | 436 | $ | 2,945 | 15 | % | 33,568 | $ | 589 | $ | 1,949 | 30 | % | ||||||||||||||||||
December 31, 2020 | ||||||||||||||||
(Dollar amounts in millions) | Delinquencies | Direct case reserves (1) | Risk in-force | Reserves as % of risk in-force | ||||||||||||
Payments in default: | ||||||||||||||||
3 payments or less | 10,484 | $ | 43 | $ | 549 | 8 | % | |||||||||
4 - 11 payments | 30,324 | 331 | 1,853 | 18 | % | |||||||||||
12 payments or more | 4,096 | 143 | 204 | 70 | % | |||||||||||
Total | 44,904 | $ | 517 | $ | 2,606 | 20 | % | |||||||||
(1) | Direct primary case reserves exclude loss adjustment expenses, |
December 31, 2019 | ||||||||||||||||
(Dollar amounts in millions) | Delinquencies | Direct case reserves (1) | Risk in-force | Reserves as % of risk in-force | ||||||||||||
Payments in default: | ||||||||||||||||
3 payments or less | 8,618 | $ | 28 | $ | 386 | 7 | % | |||||||||
4—11 payments | 4,876 | 78 | 225 | 35 | % | |||||||||||
12 payments or more | 2,898 | 99 | 146 | 68 | % | |||||||||||
Total | 16,392 | $ | 205 | $ | 757 | 27 | % | |||||||||
Percent of primary risk in-force as of September 30, 2020 | Percent of total reserves as of September 30, 2020 (1) | Delinquency rate | ||||||||||||||||||
September 30, 2020 | December 31, 2019 | September 30, 2019 | ||||||||||||||||||
By Region: | ||||||||||||||||||||
Southeast (2) | 19 | % | 20 | % | 5.96 | % | 2.14 | % | 2.14 | % | ||||||||||
Pacific (3) | 18 | 18 | 6.86 | % | 1.36 | % | 1.28 | % | ||||||||||||
South Central (4) | 17 | 15 | 5.56 | % | 1.84 | % | 1.77 | % | ||||||||||||
Northeast (5) | 11 | 20 | 6.87 | % | 2.69 | % | 2.76 | % | ||||||||||||
Great Lakes (6) | 10 | 6 | 3.56 | % | 1.71 | % | 1.63 | % | ||||||||||||
North Central (7) | 10 | 9 | 4.79 | % | 1.90 | % | 1.84 | % | ||||||||||||
Mid-Atlantic (8) | 6 | 5 | 5.63 | % | 1.87 | % | 1.89 | % | ||||||||||||
New England (9) | 5 | 5 | 4.66 | % | 1.90 | % | 1.87 | % | ||||||||||||
Plains (10) | 4 | 2 | 3.13 | % | 1.69 | % | 1.66 | % | ||||||||||||
Total | 100 | % | 100 | % | 5.44 | % | 1.93 | % | 1.89 | % | ||||||||||
Percent of primary risk in-force as of June 30, 2021 | Percent of direct case reserves as of June 30, 2021 (1) | Delinquency rate as of | ||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||||||||||
By State: | ||||||||||||||||||||
California | 12 | % | 12 | % | 4.70 | % | 6.20 | % | 7.67 | % | ||||||||||
Texas | 8 | % | 8 | % | 4.20 | % | 5.82 | % | 7.31 | % | ||||||||||
Florida (2) | 7 | % | 9 | % | 4.52 | % | 6.92 | % | 9.06 | % | ||||||||||
Illinois (2) | 5 | % | 6 | % | 4.13 | % | 5.21 | % | 6.13 | % | ||||||||||
New York (2) | 5 | % | 12 | % | 5.10 | % | 6.92 | % | 8.89 | % | ||||||||||
Michigan | 4 | % | 2 | % | 2.11 | % | 2.93 | % | 4.12 | % | ||||||||||
Arizona | 4 | % | 2 | % | 3.13 | % | 4.54 | % | 5.44 | % | ||||||||||
North Carolina | 3 | % | 2 | % | 2.99 | % | 3.84 | % | 4.99 | % | ||||||||||
Pennsylvania (2) | 3 | % | 3 | % | 3.06 | % | 4.11 | % | 5.44 | % | ||||||||||
Washington | 3 | % | 3 | % | 4.51 | % | 5.37 | % | 5.59 | % |
(1) |
(2) |
Percent of primary risk in-force as of June 30, 2021 | Percent of direct case reserves as of June 30, 2021 (1) | Delinquency rate as of | ||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||||||||||
By MSA or MD: | ||||||||||||||||||||
Chicago-Naperville MD | 3 | % | 4 | % | 5.09 | % | 6.36 | % | 7.69 | % | ||||||||||
Phoenix MSA | 3 | % | 2 | % | 3.15 | % | 4.63 | % | 5.49 | % | ||||||||||
New York MD | 3 | % | 8 | % | 7.69 | % | 10.25 | % | 12.92 | % | ||||||||||
Atlanta MSA | 2 | % | 3 | % | 4.84 | % | 6.68 | % | 8.65 | % | ||||||||||
Washington DC-Arlington MD | 2 | % | 2 | % | 4.86 | % | 6.09 | % | 8.18 | % | ||||||||||
Houston MSA | 2 | % | 3 | % | 5.54 | % | 7.59 | % | 8.74 | % | ||||||||||
Riverside-San Bernardino MSA | 2 | % | 2 | % | 5.24 | % | 7.08 | % | 8.55 | % | ||||||||||
Los Angeles-Long Beach MD | 2 | % | 3 | % | 5.89 | % | 7.57 | % | 9.28 | % | ||||||||||
Dallas MD | 2 | % | 2 | % | 3.60 | % | 5.10 | % | 7.31 | % | ||||||||||
Nassau-Suffolk MD | 2 | % | 4 | % | 8.10 | % | 10.64 | % | 13.33 | % |
Percent of primary risk in-force as of September 30, 2020 | Percent of total reserves as of September 30, 2020 (1) | Delinquency rate | ||||||||||||||||||
September 30, 2020 | December 31, 2019 | September 30, 2019 | ||||||||||||||||||
By State: | ||||||||||||||||||||
California | 11 | % | 11 | % | 7.13 | % | 1.42 | % | 1.27 | % | ||||||||||
Texas | 7 | % | 7 | % | 6.57 | % | 2.02 | % | 1.86 | % | ||||||||||
Florida | 7 | % | 10 | % | 8.04 | % | 2.13 | % | 2.18 | % | ||||||||||
Illinois | 5 | % | 6 | % | 5.90 | % | 2.25 | % | 2.10 | % | ||||||||||
New York | 5 | % | 11 | % | 7.78 | % | 2.98 | % | 3.00 | % | ||||||||||
Michigan | 4 | % | 2 | % | 3.53 | % | 1.43 | % | 1.31 | % | ||||||||||
Washington | 4 | % | 3 | % | 5.60 | % | 1.10 | % | 1.08 | % | ||||||||||
Pennsylvania | 4 | % | 3 | % | 4.52 | % | 2.12 | % | 2.18 | % | ||||||||||
North Carolina | 3 | % | 3 | % | 4.47 | % | 1.79 | % | 1.75 | % | ||||||||||
Arizona | 3 | % | 2 | % | 5.01 | % | 1.46 | % | 1.42 | % |
(Amounts in millions) | Average rate | Percent of total reserves (1) | Primary insurance in-force | Percent of total | Primary risk in-force | Percent of total | Weighted average rate (1) | Percent of direct case reserves (2) | Primary insurance in-force | Percent of total | Primary risk in-force | Percent of total | Delinquency rate | |||||||||||||||||||||||||||||||||||||||
Policy Year | Policy Year | Policy Year | ||||||||||||||||||||||||||||||||||||||||||||||||||
2004 and prior | 6.08 | % | 3.7 | % | $ | 870 | 0.4 | % | $ | 212 | 0.4 | % | 6.18 | % | 3 | % | $ | 621 | — | % | $ | 177 | — | % | 15.47 | % | ||||||||||||||||||||||||||
2005 to 2008 | 5.43 | % | 27.8 | 12,940 | 6.1 | 2,932 | 5.7 | 5.55 | % | 25 | 9,061 | 4 | 2,317 | 4 | 11.87 | % | ||||||||||||||||||||||||||||||||||||
2009 to 2012 | 4.20 | % | 1.3 | 1,858 | 0.9 | 404 | 0.8 | |||||||||||||||||||||||||||||||||||||||||||||
2013 | 4.13 | % | 1.3 | 2,567 | 1.2 | 613 | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||
2009 to 2013 | 4.25 | % | 2 | 1,961 | 1 | 528 | 1 | 5.89 | % | |||||||||||||||||||||||||||||||||||||||||||
2014 | 4.45 | % | 3.1 | 4,944 | 2.3 | 1,174 | 2.3 | 4.48 | % | 3 | 2,709 | 1 | 732 | 1 | 5.65 | % | ||||||||||||||||||||||||||||||||||||
2015 | 4.15 | % | 5.3 | 10,336 | 4.9 | 2,465 | 4.8 | 4.16 | % | 5 | 5,810 | 3 | 1,549 | 3 | 4.99 | % | ||||||||||||||||||||||||||||||||||||
2016 | 3.88 | % | 9.2 | 19,715 | 9.3 | 4,727 | 9.2 | 3.88 | % | 8 | 11,499 | 5 | 3,052 | 6 | 4.65 | % | ||||||||||||||||||||||||||||||||||||
2017 | 4.24 | % | 11.4 | 20,541 | 9.7 | 4,938 | 9.6 | 4.26 | % | 11 | 11,763 | 6 | 3,032 | 5 | 5.84 | % | ||||||||||||||||||||||||||||||||||||
2018 | 4.75 | % | 13.4 | 21,282 | 10.0 | 5,119 | 9.9 | 4.78 | % | 13 | 12,289 | 6 | 3,086 | 6 | 6.98 | % | ||||||||||||||||||||||||||||||||||||
2019 | 4.20 | % | 18.2 | 46,638 | 21.9 | 11,346 | 22.1 | 4.20 | % | 19 | 28,842 | 13 | 7,225 | 13 | 5.01 | % | ||||||||||||||||||||||||||||||||||||
2020 | 3.42 | % | 5.3 | 70,745 | 33.3 | 17,463 | 34.0 | 3.26 | % | 11 | 82,308 | 38 | 20,536 | 38 | 1.36 | % | ||||||||||||||||||||||||||||||||||||
2021 | 3.01 | % | — | 50,614 | 23 | 12,409 | 23 | 0.14 | % | |||||||||||||||||||||||||||||||||||||||||||
Total portfolio | 4.06 | % | 100.0 | % | $ | 212,436 | 100.0 | % | $ | 51,393 | 100.0 | % | 3.65 | % | 100 | % | $ | 217,477 | 100 | % | $ | 54,643 | 100 | % | 3.60 | % | ||||||||||||||||||||||||||
(1) |
(2) | Direct primary case reserves exclude loss adjustment expenses, IBNR and reinsurance reserves. |
Three months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 71 | $ | 77 | $ | (6 | ) | (8) | % | |||||||
Net investment income | 7 | 13 | (6 | ) | (46) | % | ||||||||||
Net investment gains (losses) | 24 | (9 | ) | 33 | NM | (1) | ||||||||||
Policy fees and other income | — | 1 | (1 | ) | (100) | % | ||||||||||
Total revenues | 102 | 82 | 20 | 24 | % | |||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 26 | 28 | (2 | ) | (7) | % | ||||||||||
Acquisition and operating expenses, net of deferrals | 19 | 17 | 2 | 12 | % | |||||||||||
Amortization of deferred acquisition costs and intangibles | 7 | 9 | (2 | ) | (22) | % | ||||||||||
Interest expense | 2 | 2 | — | — | % | |||||||||||
Total benefits and expenses | 54 | 56 | (2 | ) | (4) | % | ||||||||||
Income from continuing operations before income taxes | 48 | 26 | 22 | 85 | % | |||||||||||
Provision for income taxes | 15 | 8 | 7 | 88 | % | |||||||||||
Income from continuing operations | 33 | 18 | 15 | 83 | % | |||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 18 | 10 | 8 | 80 | % | |||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 15 | 8 | 7 | 88 | % | |||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Net investment (gains) losses, net (2) | (12 | ) | 5 | (17 | ) | NM | (1) | |||||||||
Taxes on adjustments | 4 | (1 | ) | 5 | NM | (1) | ||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 7 | $ | 12 | $ | (5 | ) | (42) | % | |||||||
Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 202 | $ | 240 | $ | (38 | ) | (16) | % | |||||||
Net investment income | 25 | 44 | (19 | ) | (43) | % | ||||||||||
Net investment gains (losses) | 37 | 4 | 33 | NM | (1) | |||||||||||
Policy fees and other income | 1 | — | 1 | NM | (1) | |||||||||||
Total revenues | 265 | 288 | (23 | ) | (8) | % | ||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 89 | 82 | 7 | 9 | % | |||||||||||
Acquisition and operating expenses, net of deferrals | 54 | 51 | 3 | 6 | % | |||||||||||
Amortization of deferred acquisition costs and intangibles | 21 | 27 | (6 | ) | (22) | % | ||||||||||
Goodwill impairment | 5 | — | 5 | NM | (1) | |||||||||||
Interest expense | 5 | 6 | (1 | ) | (17) | % | ||||||||||
Total benefits and expenses | 174 | 166 | 8 | 5 | % | |||||||||||
Income from continuing operations before income taxes | 91 | 122 | (31 | ) | (25) | % | ||||||||||
Provision for income taxes | 28 | 37 | (9 | ) | (24) | % | ||||||||||
Income from continuing operations | 63 | 85 | (22 | ) | (26) | % | ||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 35 | 45 | (10 | ) | (22) | % | ||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 28 | 40 | (12 | ) | (30) | % | ||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Net investment (gains) losses, net (2) | (19 | ) | (2 | ) | (17 | ) | NM | (1) | ||||||||
Goodwill impairment (3) | 3 | — | 3 | NM | (1) | |||||||||||
Taxes on adjustments | 5 | 1 | 4 | NM | (1) | |||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 17 | $ | 39 | $ | (22 | ) | (56) | % | |||||||
As of September 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | |||||||||||||
Primary insurance in-force | $ | 215,800 | $ | 206,400 | $ | 9,400 | 5 | % | ||||||||
Risk in-force | $ | 75,200 | $ | 71,900 | $ | 3,300 | 5 | % |
Three months ended September 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2020 | 2019 | 2020 vs. 2019 | ||||||||||||||||||||||||||
New insurance written | $ | 5,600 | $ | 4,600 | $ | 1,000 | 22 | % | $ | 14,400 | $ | 13,400 | $ | 1,000 | 7 | % | ||||||||||||||||
Net premiums written | $ | 91 | $ | 70 | $ | 21 | 30 | % | $ | 223 | $ | 180 | $ | 43 | 24 | % |
Three months ended September 30, | Increase (decrease) | Nine months ended September 30, | Increase (decrease) | |||||||||||||||||||||
2020 | 2019 | 2020 vs. 2019 | 2020 | 2019 | 2020 vs. 2019 | |||||||||||||||||||
Loss ratio | 37 | % | 36 | % | 1 | % | 44 | % | 34 | % | 10 | % | ||||||||||||
Expense ratio (net earned premiums) | 37 | % | 34 | % | 3 | % | 40 | % | 32 | % | 8 | % | ||||||||||||
Expense ratio (net premiums written) | 29 | % | 38 | % | (9 | )% | 36 | % | 43 | % | (7 | )% |
September 30, 2020 | December 31, 2019 | September 30, 2019 | ||||||||||
Primary insured loans in-force | 1,193,072 | 1,290,216 | 1,293,961 | |||||||||
Delinquent loans | 7,422 | 7,221 | 7,713 | |||||||||
Percentage of delinquent loans (delinquency rate) | 0.62 | % | 0.56 | % | 0.60 | % | ||||||
Flow loans in-force | 1,096,679 | 1,189,019 | 1,192,282 | |||||||||
Flow delinquent loans | 7,171 | 7,003 | 7,469 | |||||||||
Percentage of flow delinquent loans (delinquency rate) | 0.65 | % | 0.59 | % | 0.63 | % | ||||||
Bulk loans in-force | 96,393 | 101,197 | 101,679 | |||||||||
Bulk delinquent loans | 251 | 218 | 244 | |||||||||
Percentage of bulk delinquent loans (delinquency rate) | 0.26 | % | 0.22 | % | 0.24 | % |
Percent of primary risk in-force as of September 30, 2020 | Delinquency rate | |||||||||||||||
September 30, 2020 | December 31, 2019 | September 30, 2019 | ||||||||||||||
By state and territory: | ||||||||||||||||
New South Wales | 28 | % | 0.50 | % | 0.42 | % | 0.45 | % | ||||||||
Queensland | 23 | 0.77 | % | 0.75 | % | 0.80 | % | |||||||||
Victoria | 23 | 0.49 | % | 0.41 | % | 0.43 | % | |||||||||
Western Australia | 13 | 1.04 | % | 1.00 | % | 1.06 | % | |||||||||
South Australia | 6 | 0.69 | % | 0.65 | % | 0.69 | % | |||||||||
Australian Capital Territory | 3 | 0.25 | % | 0.24 | % | 0.26 | % | |||||||||
Tasmania | 2 | 0.24 | % | 0.29 | % | 0.31 | % | |||||||||
New Zealand | 1 | 0.05 | % | 0.02 | % | 0.02 | % | |||||||||
Northern Territory | 1 | 0.92 | % | 0.71 | % | 0.85 | % | |||||||||
Total | 100 | % | 0.62 | % | 0.56 | % | 0.60 | % | ||||||||
Three months ended September 30, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 711 | $ | 717 | $ | (6 | ) | (1 | )% | $ | 703 | $ | 712 | $ | (9 | ) | (1 | )% | ||||||||||||||
Net investment income | 726 | 722 | 4 | 1 | % | 763 | 692 | 71 | 10 | % | ||||||||||||||||||||||
Net investment gains (losses) | 348 | 11 | 337 | NM | (1) | 66 | 118 | (52 | ) | (44 | )% | |||||||||||||||||||||
Policy fees and other income | 152 | 152 | — | — | % | 145 | 142 | 3 | 2 | % | ||||||||||||||||||||||
Total revenues | 1,937 | 1,602 | 335 | 21 | % | 1,677 | 1,664 | 13 | 1 | % | ||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 1,221 | 1,225 | (4 | ) | — | % | 1,129 | 1,213 | (84 | ) | (7 | )% | ||||||||||||||||||||
Interest credited | 95 | 106 | (11 | ) | (10 | )% | 87 | 97 | (10 | ) | (10 | )% | ||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 158 | 158 | — | — | % | 219 | 147 | 72 | 49 | % | ||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 87 | 89 | (2 | ) | (2 | )% | 77 | 83 | (6 | ) | (7 | )% | ||||||||||||||||||||
Interest expense | — | 4 | (4 | ) | (100 | )% | ||||||||||||||||||||||||||
Total benefits and expenses | 1,561 | 1,582 | (21 | ) | (1 | )% | 1,512 | 1,540 | (28 | ) | (2 | )% | ||||||||||||||||||||
Income from continuing operations before income taxes | 376 | 20 | 356 | NM | (1) | 165 | 124 | 41 | 33 | % | ||||||||||||||||||||||
Provision for income taxes | 87 | 10 | 77 | NM | (1) | 42 | 33 | 9 | 27 | % | ||||||||||||||||||||||
Income from continuing operations | 289 | 10 | 279 | NM | (1) | 123 | 91 | 32 | 35 | % | ||||||||||||||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses, net (2) | (348 | ) | (14 | ) | (334 | ) | NM | (1) | (67 | ) | (121 | ) | 54 | 45 | % | |||||||||||||||||
Expenses related to restructuring | 2 | — | 2 | NM | (1) | |||||||||||||||||||||||||||
Taxes on adjustments | 73 | 3 | 70 | NM | (1) | 13 | 25 | (12 | ) | (48 | )% | |||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 14 | $ | (1 | ) | $ | 15 | NM | (1) | $ | 71 | $ | (5 | ) | $ | 76 | NM | (1) | ||||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
(2) | For the three months ended |
Three months ended September 30, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Long-term care insurance | $ | 59 | $ | 21 | $ | 38 | 181 | % | $ | 98 | $ | 48 | $ | 50 | 104 | % | ||||||||||||||||
Life insurance | (69 | ) | (25 | ) | (44 | ) | (176 | )% | (40 | ) | (81 | ) | 41 | 51 | % | |||||||||||||||||
Fixed annuities | 24 | 3 | 21 | NM | (1) | 13 | 28 | (15 | ) | (54 | )% | |||||||||||||||||||||
Total adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 14 | $ | (1 | ) | $ | 15 | NM | (1) | $ | 71 | $ | (5 | ) | $ | 76 | NM | (1) | ||||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
(“TIPS”) and bond calls. The increase was also attributable to higher average invested assets in the current year. |
Nine months ended September 30, | Increase (decrease) and percentage change | Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 2,141 | $ | 2,139 | $ | 2 | — | % | $ | 1,417 | $ | 1,430 | $ | (13 | ) | (1 | )% | |||||||||||||||
Net investment income | 2,113 | 2,147 | (34 | ) | (2) | % | 1,479 | 1,387 | 92 | 7 | % | |||||||||||||||||||||
Net investment gains (losses) | 396 | 59 | 337 | NM | (1) | 108 | 48 | 60 | 125 | % | ||||||||||||||||||||||
Policy fees and other income | 438 | 490 | (52 | ) | (11) | % | 293 | 286 | 7 | 2 | % | |||||||||||||||||||||
Total revenues | 5,088 | 4,835 | 253 | 5 | % | 3,297 | 3,151 | 146 | 5 | % | ||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 3,731 | 3,672 | 59 | 2 | % | 2,284 | 2,510 | (226 | ) | (9 | )% | |||||||||||||||||||||
Interest credited | 292 | 318 | (26 | ) | (8) | % | 177 | 197 | (20 | ) | (10 | )% | ||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 456 | 448 | 8 | 2 | % | 411 | 298 | 113 | 38 | % | ||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 257 | 222 | 35 | 16 | % | 145 | 170 | (25 | ) | (15 | )% | |||||||||||||||||||||
Interest expense | 5 | 13 | (8 | ) | (62) | % | — | 5 | (5 | ) | (100 | )% | ||||||||||||||||||||
Total benefits and expenses | 4,741 | 4,673 | 68 | 1 | % | 3,017 | 3,180 | (163 | ) | (5 | )% | |||||||||||||||||||||
Income from continuing operations before income taxes | 347 | 162 | 185 | 114 | % | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 280 | (29 | ) | 309 | NM | (1) | ||||||||||||||||||||||||||
Provision for income taxes | 93 | 53 | 40 | 75 | % | 74 | 6 | 68 | NM | (1) | ||||||||||||||||||||||
Income from continuing operations | 254 | 109 | 145 | 133 | % | |||||||||||||||||||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | 206 | (35 | ) | 241 | NM | (1) | ||||||||||||||||||||||||||
Adjustments to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses, net (2) | (402 | ) | (65 | ) | (337 | ) | NM | (1) | (108 | ) | (54 | ) | (54 | ) | (100 | )% | ||||||||||||||||
(Gains) losses on early extinguishment of debt | 4 | — | 4 | NM | (1) | — | 4 | (4 | ) | (100 | )% | |||||||||||||||||||||
Expenses related to restructuring | — | 3 | (3 | ) | (100) | % | 16 | — | 16 | NM | (1) | |||||||||||||||||||||
Taxes on adjustments | 83 | 13 | 70 | NM | (1) | 19 | 10 | 9 | 90 | % | ||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | (61 | ) | $ | 60 | $ | (121 | ) | NM | (1) | $ | 133 | $ | (75 | ) | $ | 208 | NM | (1) | |||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
(2) | For the |
Nine months ended September 30, | Increase (decrease) and percentage change | Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Long-term care insurance | $ | 108 | $ | 38 | $ | 70 | 184 | % | $ | 193 | $ | 49 | $ | 144 | NM | (1) | ||||||||||||||||
Life insurance | (227 | ) | (17 | ) | (210 | ) | NM | (1) | (103 | ) | (158 | ) | 55 | 35 | % | |||||||||||||||||
Fixed annuities | 58 | 39 | 19 | 49 | % | 43 | 34 | 9 | 26 | % | ||||||||||||||||||||||
Total adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | (61 | ) | $ | 60 | $ | (121 | ) | NM | (1) | $ | 133 | $ | (75 | ) | $ | 208 | NM | (1) | |||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Three months ended September 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individual long-term care insurance | $ | 630 | $ | 622 | $ | 8 | 1 | % | $ | 1,859 | $ | 1,831 | $ | 28 | 2 | % | $ | 617 | $ | 618 | $ | (1 | ) | — | % | $ | 1,232 | $ | 1,229 | $ | 3 | — | % | |||||||||||||||||||||||||||||||
Group long-term care insurance | 31 | 30 | 1 | 3 | % | 93 | 89 | 4 | 4 | % | 31 | 31 | — | — | % | 62 | 62 | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 661 | $ | 652 | $ | 9 | 1 | % | $ | 1,952 | $ | 1,920 | $ | 32 | 2 | % | $ | 648 | $ | 649 | $ | (1 | ) | — | % | $ | 1,294 | $ | 1,291 | $ | 3 | — | % | |||||||||||||||||||||||||||||||
Loss ratio | 71 | % | 76 | % | (5 | )% | 73 | % | 77 | % | (4 | )% | 62 | % | 69 | % | (7 | )% | 62 | % | 74 | % | (12 | )% |
Three months ended September 30, | Increase (decrease) and percentage change | Nine months ended September 30, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Term and whole life insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums | $ | 50 | $ | 65 | $ | (15 | ) | (23 | )% | $ | 189 | $ | 219 | $ | (30 | ) | (14 | )% | $ | 55 | $ | 63 | $ | (8 | ) | (13 | )% | $ | 123 | $ | 139 | $ | (16 | ) | (12 | )% | ||||||||||||||||||||||||||||
Term universal life insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net deposits | $ | 53 | $ | 57 | $ | (4 | ) | (7 | )% | $ | 166 | $ | 174 | $ | (8 | ) | (5 | )% | 53 | 57 | (4 | ) | (7 | )% | 106 | 113 | (7 | ) | (6 | )% | ||||||||||||||||||||||||||||||||||
Universal life insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net deposits | $ | 69 | $ | 74 | $ | (5 | ) | (7 | )% | $ | 205 | $ | 291 | $ | (86 | ) | (30 | )% | 64 | 65 | (1 | ) | (2 | )% | 133 | 136 | (3 | ) | (2 | )% | ||||||||||||||||||||||||||||||||||
Total life insurance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums and deposits | $ | 172 | $ | 196 | $ | (24 | ) | (12 | )% | $ | 560 | $ | 684 | $ | (124 | ) | (18 | )% | $ | 172 | $ | 185 | $ | (13 | ) | (7 | )% | $ | 362 | $ | 388 | $ | (26 | ) | (7 | )% | ||||||||||||||||||||||||||||
As of September 30, | Percentage change | |||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | |||||||||
Term and whole life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 63,668 | $ | 86,620 | (26 | )% | ||||||
Life insurance in-force before reinsurance | $ | 369,356 | $ | 409,640 | (10 | )% | ||||||
Term universal life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 108,911 | $ | 113,454 | (4 | )% | ||||||
Life insurance in-force before reinsurance | $ | 109,665 | $ | 114,228 | (4 | )% | ||||||
Universal life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 32,848 | $ | 34,230 | (4 | )% | ||||||
Life insurance in-force before reinsurance | $ | 37,307 | $ | 38,956 | (4 | )% | ||||||
Total life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 205,427 | $ | 234,304 | (12 | )% | ||||||
Life insurance in-force before reinsurance | $ | 516,328 | $ | 562,824 | (8 | )% |
As of June 30, | Percentage change | |||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 vs. 2020 | |||||||||
Term and whole life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 56,111 | $ | 69,969 | (20 | )% | ||||||
Life insurance in-force before reinsurance | $ | 347,745 | $ | 379,972 | (8 | )% | ||||||
Term universal life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 103,473 | $ | 110,705 | (7 | )% | ||||||
Life insurance in-force before reinsurance | $ | 104,145 | $ | 111,465 | (7 | )% | ||||||
Universal life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 31,807 | $ | 33,212 | (4 | )% | ||||||
Life insurance in-force before reinsurance | $ | 36,045 | $ | 37,753 | (5 | )% | ||||||
Total life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 191,391 | $ | 213,886 | (11 | )% | ||||||
Life insurance in-force before reinsurance | $ | 487,935 | $ | 529,190 | (8 | )% |
As of or for the three months ended September 30, | As of or for the nine months ended September 30, | As of or for the three months ended June 30, | As of or for the six months ended June 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Account value, beginning of period | $ | 12,256 | $ | 13,875 | $ | 13,023 | $ | 14,348 | $ | 11,172 | $ | 12,487 | $ | 11,815 | $ | 13,023 | ||||||||||||||||
Premiums and deposits | 23 | 21 | 62 | 66 | 21 | 17 | 38 | 39 | ||||||||||||||||||||||||
Surrenders, benefits and product charges | (489 | ) | (567 | ) | (1,331 | ) | (1,569 | ) | (482 | ) | (375 | ) | (1,026 | ) | (842 | ) | ||||||||||||||||
Net flows | (466 | ) | (546 | ) | (1,269 | ) | (1,503 | ) | (461 | ) | (358 | ) | (988 | ) | (803 | ) | ||||||||||||||||
Interest credited and investment performance | 104 | 113 | 299 | 374 | 95 | 134 | 180 | 195 | ||||||||||||||||||||||||
Effect of accumulated net unrealized investment gains (losses) | 75 | 73 | (84 | ) | 296 | 107 | (7 | ) | (94 | ) | (159 | ) | ||||||||||||||||||||
Account value, end of period | $ | 11,969 | $ | 13,515 | $ | 11,969 | $ | 13,515 | $ | 10,913 | $ | 12,256 | $ | 10,913 | $ | 12,256 | ||||||||||||||||
Three months ended September 30, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Net investment income | $ | 55 | $ | 48 | $ | 7 | 15 | % | $ | 43 | $ | 54 | $ | (11 | ) | (20 | )% | |||||||||||||||
Net investment gains (losses) | 15 | (9 | ) | 24 | NM | (1) | 10 | 4 | 6 | 150 | % | |||||||||||||||||||||
Policy fees and other income | 33 | 35 | (2 | ) | (6 | )% | 35 | 32 | 3 | 9 | % | |||||||||||||||||||||
Total revenues | 103 | 74 | 29 | 39 | % | 88 | 90 | (2 | ) | (2 | )% | |||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 7 | 8 | (1 | ) | (13 | )% | 2 | 4 | (2 | ) | (50 | )% | ||||||||||||||||||||
Interest credited | 42 | 40 | 2 | 5 | % | 40 | 42 | (2 | ) | (5 | )% | |||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 12 | 13 | (1 | ) | (8 | )% | 14 | 11 | 3 | 27 | % | |||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 4 | 10 | (6 | ) | (60 | )% | 4 | (1 | ) | 5 | NM | (1) | ||||||||||||||||||||
Total benefits and expenses | 65 | 71 | (6 | ) | (8 | )% | 60 | 56 | 4 | 7 | % | |||||||||||||||||||||
Income from continuing operations before income taxes | 38 | 3 | 35 | NM | (1) | 28 | 34 | (6 | ) | (18 | )% | |||||||||||||||||||||
Provision for income taxes | 8 | — | 8 | NM | (1) | 6 | 6 | — | — | % | ||||||||||||||||||||||
Income from continuing operations | 30 | 3 | 27 | NM | (1) | 22 | 28 | (6 | ) | (21 | )% | |||||||||||||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses, net (2) | (14 | ) | 9 | (23 | ) | NM | (1) | (9 | ) | (5 | ) | (4 | ) | (80 | )% | |||||||||||||||||
Taxes on adjustments | 3 | (2 | ) | 5 | NM | (1) | 2 | 1 | 1 | 100 | % | |||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 19 | $ | 10 | $ | 9 | 90 | % | $ | 15 | $ | 24 | $ | (9 | ) | (38 | )% | |||||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
(2) | For the three months ended |
Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2021 | 2020 | 2021 vs. 2020 | |||||||||||||
Revenues: | ||||||||||||||||
Net investment income | $ | 92 | $ | 103 | $ | (11 | ) | (11 | )% | |||||||
Net investment gains (losses) | 4 | (71 | ) | 75 | 106 | % | ||||||||||
Policy fees and other income | 68 | 65 | 3 | 5 | % | |||||||||||
Total revenues | 164 | 97 | 67 | 69 | % | |||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 10 | 24 | (14 | ) | (58 | )% | ||||||||||
Interest credited | 81 | 83 | (2 | ) | (2 | )% | ||||||||||
Acquisition and operating expenses, net of deferrals | 27 | 24 | 3 | 13 | % | |||||||||||
Amortization of deferred acquisition costs and intangibles | 9 | 16 | (7 | ) | (44 | )% | ||||||||||
Total benefits and expenses | 127 | 147 | (20 | ) | (14 | )% | ||||||||||
Income (loss) from continuing operations before income taxes | 37 | (50 | ) | 87 | 174 | % | ||||||||||
Provision (benefit) for income taxes | 7 | (12 | ) | 19 | 158 | % | ||||||||||
Income (loss) from continuing operations | 30 | (38 | ) | 68 | 179 | % | ||||||||||
Adjustments to income (loss) from continuing operations: | ||||||||||||||||
Net investment (gains) losses, net (1) | (4 | ) | 62 | (66 | ) | (106 | )% | |||||||||
Taxes on adjustments | 1 | (13 | ) | 14 | 108 | % | ||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 27 | $ | 11 | $ | 16 | 145 | % | ||||||||
(1) | For the six months ended June 30, 2020, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of |
Nine months ended September 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Net investment income | $ | 158 | $ | 142 | $ | 16 | 11 | % | ||||||||
Net investment gains (losses) | (56 | ) | (13 | ) | (43 | ) | NM | (1) | ||||||||
Policy fees and other income | 98 | 105 | (7 | ) | (7 | )% | ||||||||||
Total revenues | 200 | 234 | (34 | ) | (15 | )% | ||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 31 | 22 | 9 | 41 | % | |||||||||||
Interest credited | 125 | 121 | 4 | 3 | % | |||||||||||
Acquisition and operating expenses, net of deferrals | 36 | 39 | (3 | ) | (8 | )% | ||||||||||
Amortization of deferred acquisition costs and intangibles | 20 | 16 | 4 | 25 | % | |||||||||||
Total benefits and expenses | 212 | 198 | 14 | 7 | % | |||||||||||
Income (loss) from continuing operations before income taxes | (12 | ) | 36 | (48 | ) | (133 | )% | |||||||||
Provision (benefit) for income taxes | (4 | ) | 6 | (10 | ) | (167 | )% | |||||||||
Income (loss) from continuing operations | (8 | ) | 30 | (38 | ) | (127 | )% | |||||||||
Adjustments to income (loss) from continuing operations: | ||||||||||||||||
Net investment (gains) losses, net (2) | 48 | 11 | 37 | NM | (1) | |||||||||||
Taxes on adjustments | (10 | ) | (2 | ) | (8 | ) | NM | (1) | ||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 30 | $ | 39 | $ | (9 | ) | (23 | )% | |||||||
As of or for the three months ended September 30, | As of or for the nine months ended September 30, | As of or for the three months ended June 30, | As of or for the six months ended June 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Account value, beginning of period | $ | 4,782 | $ | 5,121 | $ | 5,042 | $ | 4,918 | $ | 4,863 | $ | 4,521 | $ | 5,001 | $ | 5,042 | ||||||||||||||||
Deposits | 4 | 7 | 14 | 20 | 4 | 6 | 10 | 10 | ||||||||||||||||||||||||
Surrenders, benefits and product charges | (126 | ) | (161 | ) | (414 | ) | (480 | ) | (140 | ) | (122 | ) | (327 | ) | (288 | ) | ||||||||||||||||
Net flows | (122 | ) | (154 | ) | (400 | ) | (460 | ) | (136 | ) | (116 | ) | (317 | ) | (278 | ) | ||||||||||||||||
Interest credited and investment performance | 185 | 69 | 203 | 578 | 241 | 377 | 284 | 18 | ||||||||||||||||||||||||
Account value, end of period | $ | 4,845 | $ | 5,036 | $ | 4,845 | $ | 5,036 | $ | 4,968 | $ | 4,782 | $ | 4,968 | $ | 4,782 | ||||||||||||||||
As of or for the three months ended September 30, | As of or for the nine months ended September 30, | As of or for the three months ended June 30, | As of or for the six months ended June 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Funding Agreements | ||||||||||||||||||||||||||||||||
Account value, beginning of period | $ | 353 | $ | 305 | $ | 253 | $ | 381 | $ | 300 | $ | 253 | $ | 300 | $ | 253 | ||||||||||||||||
Deposits | — | — | 150 | — | — | 150 | — | 150 | ||||||||||||||||||||||||
Surrenders and benefits | (1 | ) | (2 | ) | (53 | ) | (82 | ) | (51 | ) | (51 | ) | (51 | ) | (52 | ) | ||||||||||||||||
Net flows | (1 | ) | (2 | ) | 97 | (82 | ) | (51 | ) | 99 | (51 | ) | 98 | |||||||||||||||||||
Interest credited | 1 | 2 | 3 | 6 | 1 | 1 | 1 | 2 | ||||||||||||||||||||||||
Account value, end of period | $ | 353 | $ | 305 | $ | 353 | $ | 305 | $ | 250 | $ | 353 | $ | 250 | $ | 353 | ||||||||||||||||
Three months ended September 30, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 1 | $ | 2 | $ | (1 | ) | (50 | )% | $ | 1 | $ | 2 | $ | (1 | ) | (50 | )% | ||||||||||||||
Net investment income | 5 | 2 | 3 | 150 | % | 3 | 2 | 1 | 50 | % | ||||||||||||||||||||||
Net investment gains (losses) | (10 | ) | 5 | (15 | ) | NM | (1) | (4 | ) | (28 | ) | 24 | 86 | % | ||||||||||||||||||
Policy fees and other income | (2 | ) | 2 | (4 | ) | (200 | )% | — | (1 | ) | 1 | 100 | % | |||||||||||||||||||
Total revenues | (6 | ) | 11 | (17 | ) | (155 | )% | — | (25 | ) | 25 | 100 | % | |||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | — | 2 | (2 | ) | (100 | )% | ||||||||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 6 | 8 | (2 | ) | (25 | )% | 8 | 5 | 3 | 60 | % | |||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | — | 1 | (1 | ) | (100 | )% | 1 | 1 | — | — | % | |||||||||||||||||||||
Interest expense | 41 | 53 | (12 | ) | (23 | )% | 31 | 42 | (11 | ) | (26 | )% | ||||||||||||||||||||
Total benefits and expenses | 47 | 62 | (15 | ) | (24 | )% | 40 | 50 | (10 | ) | (20 | )% | ||||||||||||||||||||
Loss from continuing operations before income taxes | (53 | ) | (51 | ) | (2 | ) | (4 | )% | (40 | ) | (75 | ) | 35 | 47 | % | |||||||||||||||||
Provision (benefit) for income taxes | 3 | (21 | ) | 24 | 114 | % | ||||||||||||||||||||||||||
Benefit for income taxes | (8 | ) | (15 | ) | 7 | 47 | % | |||||||||||||||||||||||||
Loss from continuing operations | (56 | ) | (30 | ) | (26 | ) | (87 | )% | (32 | ) | (60 | ) | 28 | 47 | % | |||||||||||||||||
Adjustments to loss from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | 10 | (5 | ) | 15 | NM | (1) | 4 | 28 | (24 | ) | (86 | )% | ||||||||||||||||||||
(Gains) losses on early extinguishment of debt | — | (3 | ) | 3 | 100 | % | ||||||||||||||||||||||||||
Expenses related to restructuring | 1 | 1 | — | — | % | |||||||||||||||||||||||||||
Taxes on adjustments | (3 | ) | — | (3 | ) | NM | (1) | — | (5 | ) | 5 | 100 | % | |||||||||||||||||||
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (49 | ) | $ | (35 | ) | $ | (14 | ) | (40 | )% | $ | (27 | ) | $ | (39 | ) | $ | 12 | 31 | % | |||||||||||
125 |
Nine months ended September 30, | Increase (decrease) and percentage change | Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 5 | $ | 6 | $ | (1 | ) | (17 | )% | $ | 3 | $ | 4 | $ | (1 | ) | (25 | )% | ||||||||||||||
Net investment income | 12 | 6 | 6 | 100 | % | 4 | 7 | (3 | ) | (43 | )% | |||||||||||||||||||||
Net investment gains (losses) | 8 | (23 | ) | 31 | 135 | % | (6 | ) | 18 | (24 | ) | (133 | )% | |||||||||||||||||||
Policy fees and other income | (2 | ) | 3 | (5 | ) | (167 | )% | |||||||||||||||||||||||||
Total revenues | 23 | (8 | ) | 31 | NM | (1) | 1 | 29 | (28 | ) | (97 | )% | ||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 3 | 2 | 1 | 50 | % | — | 3 | (3 | ) | (100 | )% | |||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 24 | 34 | (10 | ) | (29 | )% | 21 | 28 | (7 | ) | (25 | )% | ||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 1 | 1 | — | — | % | 1 | 1 | — | — | % | ||||||||||||||||||||||
Interest expense | 129 | 160 | (31 | ) | (19 | )% | 69 | 88 | (19 | ) | (22 | )% | ||||||||||||||||||||
Total benefits and expenses | 157 | 197 | (40 | ) | (20 | )% | 91 | 120 | (29 | ) | (24 | )% | ||||||||||||||||||||
Loss from continuing operations before income taxes | (134 | ) | (205 | ) | 71 | 35 | % | (90 | ) | (91 | ) | 1 | 1 | % | ||||||||||||||||||
Benefit for income taxes | (7 | ) | (37 | ) | 30 | 81 | % | (16 | ) | (15 | ) | (1 | ) | (7 | )% | |||||||||||||||||
Loss from continuing operations | (127 | ) | (168 | ) | 41 | 24 | % | (74 | ) | (76 | ) | 2 | 3 | % | ||||||||||||||||||
Adjustments to loss from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | (8 | ) | 23 | (31 | ) | (135 | )% | 6 | (18 | ) | 24 | 133 | % | |||||||||||||||||||
(Gains) losses on early extinguishment of debt | 5 | — | 5 | NM | (1) | 4 | 5 | (1 | ) | (20 | )% | |||||||||||||||||||||
Expenses related to restructuring | 2 | 1 | 1 | 100 | % | 8 | 2 | 6 | NM | (1) | ||||||||||||||||||||||
Taxes on adjustments | — | (6 | ) | 6 | 100 | % | (3 | ) | 3 | (6 | ) | (200 | )% | |||||||||||||||||||
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (128 | ) | $ | (150 | ) | $ | 22 | 15 | % | $ | (59 | ) | $ | (84 | ) | $ | 25 | 30 | % | ||||||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Three months ended September 30, | Increase (decrease) | Three months ended June 30, | Increase (decrease) | |||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities—taxable | 4.6 | % | $ | 632 | 4.7 | % | $ | 631 | (0.1 | )% | $ | 1 | 4.6 | % | $ | 608 | 4.5 | % | $ | 594 | 0.1 | % | $ | 14 | ||||||||||||||||||||||||
Fixed maturity securities—non-taxable | 6.2 | % | 2 | 6.1 | % | 2 | 0.1 | % | — | 3.1 | % | 1 | 2.6 | % | 1 | 0.5 | % | — | ||||||||||||||||||||||||||||||
Equity securities | 2.9 | % | 3 | 6.4 | % | 4 | (3.5 | )% | (1 | ) | 4.1 | % | 2 | 5.3 | % | 2 | (1.2 | )% | — | |||||||||||||||||||||||||||||
Commercial mortgage loans | 4.8 | % | 82 | 5.0 | % | 87 | (0.2 | )% | (5 | ) | 6.0 | % | 103 | 4.9 | % | 84 | 1.1 | % | 19 | |||||||||||||||||||||||||||||
Policy loans | 9.4 | % | 51 | 9.1 | % | 47 | 0.3 | % | 4 | 7.9 | % | 40 | 9.3 | % | 49 | (1.4 | )% | (9 | ) | |||||||||||||||||||||||||||||
Other invested assets (1) | 26.0 | % | 79 | 27.5 | % | 62 | (1.5 | )% | 17 | 28.1 | % | 112 | 23.3 | % | 66 | 4.8 | % | 46 | ||||||||||||||||||||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 0.3 | % | 2 | 1.7 | % | 8 | (1.4 | )% | (6 | ) | — | % | — | 0.6 | % | 4 | (0.6 | )% | (4 | ) | ||||||||||||||||||||||||||||
Gross investment income before expenses and fees | 5.0 | % | 851 | 5.1 | % | 841 | (0.1 | )% | 10 | 5.2 | % | 866 | 4.9 | % | 800 | 0.3 | % | 66 | ||||||||||||||||||||||||||||||
Expenses and fees | (0.2 | )% | (24 | ) | (0.2 | )% | (25 | ) | — | % | 1 | (0.1 | )% | (22 | ) | (0.1 | )% | (21 | ) | — | % | (1 | ) | |||||||||||||||||||||||||
Net investment income | 4.8 | % | $ | 827 | 4.9 | % | $ | 816 | (0.1 | )% | $ | 11 | 5.1 | % | $ | 844 | 4.8 | % | $ | 779 | 0.3 | % | $ | 65 | ||||||||||||||||||||||||
Average invested assets and cash | $ | 68,665 | $ | 66,230 | $ | 2,435 | $ | 66,081 | $ | 65,578 | $ | 503 | ||||||||||||||||||||||||||||||||||||
Nine months ended September 30, | Increase (decrease) | Six months ended June 30, | Increase (decrease) | |||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 vs. 2019 | 2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities—taxable | 4.6 | % | $ | 1,855 | 4.7 | % | $ | 1,878 | (0.1 | )% | $ | (23 | ) | 4.5 | % | $ | 1,207 | 4.6 | % | $ | 1,205 | (0.1 | )% | $ | 2 | |||||||||||||||||||||||
Fixed maturity securities—non-taxable | 4.7 | % | 5 | 6.1 | % | 6 | (1.4 | )% | (1 | ) | 4.7 | % | 3 | 4.1 | % | 3 | 0.6 | % | — | |||||||||||||||||||||||||||||
Equity securities | 3.0 | % | 7 | 6.8 | % | 13 | (3.8 | )% | (6 | ) | 3.9 | % | 5 | 5.0 | % | 4 | (1.1 | )% | 1 | |||||||||||||||||||||||||||||
Commercial mortgage loans | 4.8 | % | 251 | 4.9 | % | 254 | (0.1 | )% | (3 | ) | 5.3 | % | 181 | 4.9 | % | 169 | 0.4 | % | 12 | |||||||||||||||||||||||||||||
Policy loans | 9.4 | % | 149 | 9.2 | % | 138 | 0.2 | % | 11 | 8.9 | % | 90 | 9.3 | % | 98 | (0.4 | )% | (8 | ) | |||||||||||||||||||||||||||||
Other invested assets (1) | 22.5 | % | 192 | 29.9 | % | 180 | (7.4 | )% | 12 | 26.2 | % | 201 | 20.6 | % | 113 | 5.6 | % | 88 | ||||||||||||||||||||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 0.7 | % | 17 | 2.0 | % | 30 | (1.3 | )% | (13 | ) | — | % | — | 1.0 | % | 14 | (1.0 | )% | (14 | ) | ||||||||||||||||||||||||||||
Gross investment income before expenses and fees | 4.9 | % | 2,476 | 5.1 | % | 2,499 | (0.2 | )% | (23 | ) | 5.1 | % | 1,687 | 4.9 | % | 1,606 | 0.2 | % | 81 | |||||||||||||||||||||||||||||
Expenses and fees | (0.2 | )% | (70 | ) | (0.2 | )% | (73 | ) | — | % | 3 | (0.1 | )% | (42 | ) | (0.1 | )% | (45 | ) | — | % | 3 | ||||||||||||||||||||||||||
Net investment income | 4.7 | % | $ | 2,406 | 4.9 | % | $ | 2,426 | (0.2 | )% | $ | (20 | ) | 5.0 | % | $ | 1,645 | 4.8 | % | $ | 1,561 | 0.2 | % | $ | 84 | |||||||||||||||||||||||
Average invested assets and cash | $ | 68,000 | $ | 65,951 | $ | 2,049 | $ | 66,234 | $ | 65,497 | $ | 737 | ||||||||||||||||||||||||||||||||||||
(1) | Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation and includes limited partnership investments, which are primarily equity-based and do not have fixed returns by period. |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
(Amounts in millions) | 2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Available-for-sale fixed maturity securities: | ||||||||||||||||||||||||||||||||
Realized gains | $ | 332 | $ | 19 | $ | 465 | $ | 93 | $ | 5 | $ | 103 | $ | 12 | $ | 105 | ||||||||||||||||
Realized losses | (2 | ) | (3 | ) | (8 | ) | (30 | ) | (4 | ) | (5 | ) | (7 | ) | (5 | ) | ||||||||||||||||
Net realized gains (losses) on available-for-sale fixed maturity securities | 330 | 16 | 457 | 63 | 1 | 98 | 5 | 100 | ||||||||||||||||||||||||
Impairments: | ||||||||||||||||||||||||||||||||
Total other-than-temporary impairments | — | — | — | — | ||||||||||||||||||||||||||||
Portion of other-than-temporary impairments included in other comprehensive income (loss) | — | — | — | — | ||||||||||||||||||||||||||||
Net other-than-temporary impairments | — | — | — | — | ||||||||||||||||||||||||||||
Net change in allowance for credit losses on available-for-sale fixed maturity securities | 2 | — | (5 | ) | — | (4 | ) | (7 | ) | (6 | ) | (7 | ) | |||||||||||||||||||
Write-down of available-for-sale fixed maturity securities | (4 | ) | — | (4 | ) | — | — | — | (1 | ) | — | |||||||||||||||||||||
Net realized gains (losses) on equity securities sold | (3 | ) | 6 | (3 | ) | 9 | (2 | ) | — | (7 | ) | — | ||||||||||||||||||||
Net unrealized gains (losses) on equity securities still held | 3 | (4 | ) | (7 | ) | 13 | 6 | 5 | (2 | ) | (7 | ) | ||||||||||||||||||||
Limited partnerships | 31 | 6 | 28 | 10 | 65 | 37 | 102 | (3 | ) | |||||||||||||||||||||||
Commercial mortgage loans | (3 | ) | (1 | ) | (2 | ) | (1 | ) | (1 | ) | 1 | (2 | ) | 1 | ||||||||||||||||||
Derivative instruments | 22 | (29 | ) | (73 | ) | (71 | ) | 4 | (36 | ) | 12 | (84 | ) | |||||||||||||||||||
Other | (3 | ) | 4 | (9 | ) | 4 | 1 | (5 | ) | 2 | (6 | ) | ||||||||||||||||||||
Net investment gains (losses) | $ | 375 | $ | (2 | ) | $ | 382 | $ | 27 | $ | 70 | $ | 93 | $ | 103 | $ | (6 | ) | ||||||||||||||
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | ||||||||||||||||||||||||||||||||
Public | $ | 44,840 | 56 | % | $ | 42,162 | 57 | % | $ | 43,431 | 58 | % | $ | 44,776 | 58 | % | ||||||||||||||||
Private | 19,576 | 25 | 18,177 | 24 | 18,218 | 24 | 18,719 | 24 | ||||||||||||||||||||||||
Equity securities | 629 | 1 | 239 | — | 147 | — | 386 | — | ||||||||||||||||||||||||
Commercial mortgage loans, net | 6,880 | 8 | 6,963 | 9 | 6,879 | 9 | 6,743 | 9 | ||||||||||||||||||||||||
Policy loans | 2,153 | 3 | 2,058 | 3 | 2,083 | 3 | 1,978 | 3 | ||||||||||||||||||||||||
Other invested assets | 2,402 | 3 | 1,632 | 2 | 2,260 | 3 | 2,099 | 3 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | 2,780 | 4 | 3,341 | 5 | 2,214 | 3 | 2,561 | 3 | ||||||||||||||||||||||||
Total cash, cash equivalents, restricted cash and invested assets | $ | 79,260 | 100 | % | $ | 74,572 | 100 | % | $ | 75,232 | 100 | % | $ | 77,262 | 100 | % | ||||||||||||||||
(Amounts in millions) | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | |||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,350 | $ | 1,135 | $ | (1 | ) | $ | — | $ | 4,484 | |||||||||
State and political subdivisions | 2,876 | 496 | (1 | ) | — | 3,371 | ||||||||||||||
Non-U.S. government | 712 | 94 | (4 | ) | — | 802 | ||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | 4,276 | 820 | (5 | ) | — | 5,091 | ||||||||||||||
Energy | 2,573 | 388 | (9 | ) | — | 2,952 | ||||||||||||||
Finance and insurance | 7,895 | 1,107 | (13 | ) | — | 8,989 | ||||||||||||||
Consumer—non-cyclical | 5,128 | 1,100 | (4 | ) | — | 6,224 | ||||||||||||||
Technology and communications | 3,244 | 515 | (5 | ) | — | 3,754 | ||||||||||||||
Industrial | 1,377 | 196 | (1 | ) | — | 1,572 | ||||||||||||||
Capital goods | 2,424 | 447 | (1 | ) | — | 2,870 | ||||||||||||||
Consumer—cyclical | 1,758 | 240 | (4 | ) | — | 1,994 | ||||||||||||||
Transportation | 1,156 | 253 | — | — | 1,409 | |||||||||||||||
Other | 394 | 40 | — | — | 434 | |||||||||||||||
Total U.S. corporate | 30,225 | 5,106 | (42 | ) | — | 35,289 | ||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | 873 | 73 | (1 | ) | — | 945 | ||||||||||||||
Energy | 1,189 | 210 | — | — | 1,399 | |||||||||||||||
Finance and insurance | 2,108 | 298 | (6 | ) | — | 2,400 | ||||||||||||||
Consumer—non-cyclical | 659 | 87 | (1 | ) | — | 745 | ||||||||||||||
Technology and communications | 1,098 | 186 | — | — | 1,284 | |||||||||||||||
Industrial | 1,003 | 138 | (1 | ) | — | 1,140 | ||||||||||||||
Capital goods | 574 | 69 | (1 | ) | — | 642 | ||||||||||||||
Consumer—cyclical | 325 | 29 | (1 | ) | — | 353 | ||||||||||||||
Transportation | 467 | 74 | — | — | 541 | |||||||||||||||
Other | 1,105 | 193 | (3 | ) | — | 1,295 | ||||||||||||||
Total non-U.S. corporate | 9,401 | 1,357 | (14 | ) | — | 10,744 | ||||||||||||||
Residential mortgage-backed (1) | 1,524 | 167 | — | — | 1,691 | |||||||||||||||
Commercial mortgage-backed | 2,538 | 199 | (3 | ) | — | 2,734 | ||||||||||||||
Other asset-backed | 2,485 | 50 | (1 | ) | — | 2,534 | ||||||||||||||
Total available-for-sale | $ | 53,111 | $ | 8,604 | $ | (66 | ) | $ | — | $ | 61,649 | |||||||||
(1) | Fair value included $7 million collateralized by Alt-A residential mortgage loans. |
(Amounts in millions) | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | Amortized cost or cost | Gross unrealized gains | Gross unrealized losses | Allowance for credit losses | Fair value | ||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 3,318 | $ | 1,474 | $ | — | $ | — | $ | 4,792 | $ | 3,401 | $ | 1,404 | $ | — | $ | — | $ | 4,805 | ||||||||||||||||||||
State and political subdivisions | 2,591 | 525 | (1 | ) | — | 3,115 | 2,622 | 544 | (1 | ) | — | 3,165 | ||||||||||||||||||||||||||||
Non-U.S. government | 1,276 | 126 | (7 | ) | — | 1,395 | 728 | 130 | (4 | ) | — | 854 | ||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 4,294 | 924 | (1 | ) | — | 5,217 | 4,226 | 970 | (2 | ) | — | 5,194 | ||||||||||||||||||||||||||||
Energy | 2,581 | 238 | (54 | ) | — | 2,765 | 2,532 | 367 | (16 | ) | — | 2,883 | ||||||||||||||||||||||||||||
Finance and insurance | 7,611 | 1,135 | (11 | ) | — | 8,735 | 7,798 | 1,306 | (2 | ) | — | 9,102 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 5,160 | 1,210 | (2 | ) | — | 6,368 | 5,115 | 1,323 | (1 | ) | — | 6,437 | ||||||||||||||||||||||||||||
Technology and communications | 2,993 | 537 | (3 | ) | — | 3,527 | 3,142 | 619 | — | — | 3,761 | |||||||||||||||||||||||||||||
Industrial | 1,363 | 189 | (1 | ) | — | 1,551 | 1,370 | 232 | — | — | 1,602 | |||||||||||||||||||||||||||||
Capital goods | 2,558 | 503 | (4 | ) | — | 3,057 | 2,456 | 535 | — | — | 2,991 | |||||||||||||||||||||||||||||
Consumer—cyclical | 1,794 | 252 | (2 | ) | — | 2,044 | 1,663 | 284 | — | — | 1,947 | |||||||||||||||||||||||||||||
Transportation | 1,325 | 271 | (15 | ) | — | 1,581 | 1,198 | 304 | (2 | ) | — | 1,500 | ||||||||||||||||||||||||||||
Other | 346 | 43 | — | — | 389 | 395 | 45 | — | — | 440 | ||||||||||||||||||||||||||||||
Total U.S. corporate | 30,025 | 5,302 | (93 | ) | — | 35,234 | 29,895 | 5,985 | (23 | ) | — | 35,857 | ||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 860 | 75 | — | — | 935 | 838 | 84 | — | — | 922 | ||||||||||||||||||||||||||||||
Energy | 1,192 | 163 | (7 | ) | — | 1,348 | 1,172 | 209 | (1 | ) | — | 1,380 | ||||||||||||||||||||||||||||
Finance and insurance | 2,319 | 312 | (12 | ) | (1 | ) | 2,618 | 2,130 | 353 | (6 | ) | (1 | ) | 2,476 | ||||||||||||||||||||||||||
Consumer—non-cyclical | 712 | 95 | (1 | ) | — | 806 | 662 | 112 | (1 | ) | — | 773 | ||||||||||||||||||||||||||||
Technology and communications | 1,066 | 190 | — | — | 1,256 | 1,062 | 229 | — | — | 1,291 | ||||||||||||||||||||||||||||||
Industrial | 935 | 134 | (1 | ) | — | 1,068 | 969 | 159 | — | — | 1,128 | |||||||||||||||||||||||||||||
Capital goods | 571 | 61 | (6 | ) | — | 626 | 510 | 67 | (1 | ) | — | 576 | ||||||||||||||||||||||||||||
Consumer—cyclical | 400 | 38 | (2 | ) | — | 436 | 331 | 41 | (1 | ) | — | 371 | ||||||||||||||||||||||||||||
Transportation | 571 | 87 | (9 | ) | (1 | ) | 648 | 483 | 88 | (1 | ) | — | 570 | |||||||||||||||||||||||||||
Other | 1,562 | 241 | (1 | ) | — | 1,802 | 1,088 | 236 | — | — | 1,324 | |||||||||||||||||||||||||||||
Total non-U.S. corporate | 10,188 | 1,396 | (39 | ) | (2 | ) | 11,543 | 9,245 | 1,578 | (11 | ) | (1 | ) | 10,811 | ||||||||||||||||||||||||||
Residential mortgage-backed (1) | 1,825 | 250 | — | — | 2,075 | 1,698 | 211 | — | — | 1,909 | ||||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,775 | 228 | (24 | ) | (3 | ) | 2,976 | 2,759 | 231 | (13 | ) | (3 | ) | 2,974 | ||||||||||||||||||||||||||
Other asset-backed | 3,254 | 48 | (16 | ) | — | 3,286 | 3,069 | 55 | (4 | ) | — | 3,120 | ||||||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 55,252 | $ | 9,349 | $ | (180 | ) | $ | (5 | ) | $ | 64,416 | $ | 53,417 | $ | 10,138 | $ | (56 | ) | $ | (4 | ) | $ | 63,495 | ||||||||||||||||
(1) | Fair value included $8 million collateralized by Alt-A residential mortgage loans. |
Gross unrealized gains | Gross unrealized losses | |||||||||||||||||||||||
(Amounts in millions) | Amortized cost or cost | Not other- than- temporarily impaired | Other-than- temporarily impaired | Not other- than- temporarily impaired | Other-than- temporarily impaired | Fair value | ||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 4,073 | $ | 952 | $ | — | $ | — | $ | — | $ | 5,025 | ||||||||||||
State and political subdivisions | 2,394 | 355 | — | (2 | ) | — | 2,747 | |||||||||||||||||
Non-U.S. government | 1,235 | 117 | — | (2 | ) | — | 1,350 | |||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||
Utilities | 4,322 | 675 | — | — | — | 4,997 | ||||||||||||||||||
Energy | 2,404 | 303 | — | (8 | ) | — | 2,699 | |||||||||||||||||
Finance and insurance | 6,977 | 798 | — | (1 | ) | — | 7,774 | |||||||||||||||||
Consumer—non-cyclical | 4,909 | 796 | — | (4 | ) | — | 5,701 | |||||||||||||||||
Technology and communications | 2,883 | 363 | — | (1 | ) | — | 3,245 | |||||||||||||||||
Industrial | 1,271 | 125 | — | — | — | 1,396 | ||||||||||||||||||
Capital goods | 2,345 | 367 | — | (1 | ) | — | 2,711 | |||||||||||||||||
Consumer—cyclical | 1,590 | 172 | — | (2 | ) | — | 1,760 | |||||||||||||||||
Transportation | 1,320 | 187 | — | (1 | ) | — | 1,506 | |||||||||||||||||
Other | 292 | 30 | — | — | — | 322 | ||||||||||||||||||
Total U.S. corporate | 28,313 | 3,816 | — | (18 | ) | — | 32,111 | |||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||
Utilities | 779 | 50 | — | — | — | 829 | ||||||||||||||||||
Energy | 1,140 | 179 | — | — | — | 1,319 | ||||||||||||||||||
Finance and insurance | 2,087 | 232 | — | — | — | 2,319 | ||||||||||||||||||
Consumer—non-cyclical | 631 | 55 | — | (2 | ) | — | 684 | |||||||||||||||||
Technology and communications | 1,010 | 128 | — | — | — | 1,138 | ||||||||||||||||||
Industrial | 896 | 92 | — | — | — | 988 | ||||||||||||||||||
Capital goods | 565 | 40 | — | — | — | 605 | ||||||||||||||||||
Consumer—cyclical | 373 | 24 | — | — | — | 397 | ||||||||||||||||||
Transportation | 557 | 73 | — | (1 | ) | — | 629 | |||||||||||||||||
Other | 1,431 | 188 | — | (2 | ) | — | 1,617 | |||||||||||||||||
Total non-U.S. corporate | 9,469 | 1,061 | — | (5 | ) | — | 10,525 | |||||||||||||||||
�� | ||||||||||||||||||||||||
Residential mortgage-backed (1) | 2,057 | 199 | 15 | (1 | ) | — | 2,270 | |||||||||||||||||
Commercial mortgage-backed | 2,897 | 137 | — | (8 | ) | — | 3,026 | |||||||||||||||||
Other asset-backed | 3,262 | 30 | — | (7 | ) | — | 3,285 | |||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 53,700 | $ | 6,667 | $ | 15 | $ | (43 | ) | $ | — | $ | 60,339 | |||||||||||
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||||||
Limited partnerships | $ | 844 | 36 | % | $ | 634 | 39 | % | $ | 1,354 | 60 | % | $ | 1,049 | 50 | % | ||||||||||||||||
Derivatives | 804 | 33 | 290 | 18 | 353 | 16 | 574 | 28 | ||||||||||||||||||||||||
Bank loan investments | 387 | 16 | 383 | 23 | 308 | 14 | 344 | 16 | ||||||||||||||||||||||||
Securities lending collateral | 105 | 5 | 67 | 3 | ||||||||||||||||||||||||||||
Short-term investments | 274 | 11 | 260 | 16 | 121 | 5 | 45 | 2 | ||||||||||||||||||||||||
Securities lending collateral | 75 | 3 | 51 | 3 | ||||||||||||||||||||||||||||
Other investments | 18 | 1 | 14 | 1 | 19 | — | 20 | 1 | ||||||||||||||||||||||||
Total other invested assets | $ | 2,402 | 100 | % | $ | 1,632 | 100 | % | $ | 2,260 | 100 | % | $ | 2,099 | 100 | % | ||||||||||||||||
(Notional in millions) | Measurement | December 31, 2019 | Additions | Maturities/ terminations | September 30, 2020 | |||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | Notional | $ | 8,968 | $ | 1,844 | $ | (2,616 | ) | $ | 8,196 | ||||||||||
Foreign currency swaps | Notional | 110 | — | — | 110 | |||||||||||||||
Total cash flow hedges | 9,078 | 1,844 | (2,616 | ) | 8,306 | |||||||||||||||
Total derivatives designated as hedges | 9,078 | 1,844 | (2,616 | ) | 8,306 | |||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Interest rate swaps | Notional | 4,674 | — | — | 4,674 | |||||||||||||||
Equity index options | Notional | 2,451 | 1,527 | (1,849 | ) | 2,129 | ||||||||||||||
Financial futures | Notional | 1,182 | 4,362 | (4,275 | ) | 1,269 | ||||||||||||||
Other foreign currency contracts | Notional | 628 | 5,689 | (4,687 | ) | 1,630 | ||||||||||||||
Total derivatives not designated as hedges | 8,935 | 11,578 | (10,811 | ) | 9,702 | |||||||||||||||
Total derivatives | $ | 18,013 | $ | 13,422 | $ | (13,427 | ) | $ | 18,008 | |||||||||||
(Number of policies) | Measurement | December 31, 2019 | Additions | Maturities/ terminations | September 30, 2020 | |||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
GMWB embedded derivatives | Policies | 25,623 | — | (1,452 | ) | 24,171 | ||||||||||||||
Fixed index annuity embedded derivatives | Policies | 15,441 | — | (1,511 | ) | 13,930 | ||||||||||||||
Indexed universal life embedded derivatives | Policies | 884 | — | (37 | ) | 847 |
(Notional in millions) | Measurement | December 31, 2020 | Additions | Maturities/ terminations | June 30, 2021 | |||||||||||||
Derivatives designated as hedges | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate swaps | Notional | $ | 8,178 | $ | — | $ | (405 | ) | $ | 7,773 | ||||||||
Foreign currency swaps | Notional | 127 | — | — | 127 | |||||||||||||
Total cash flow hedges | 8,305 | — | (405 | ) | 7,900 | |||||||||||||
Total derivatives designated as hedges | 8,305 | — | (405 | ) | 7,900 | |||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||
Interest rate swaps | Notional | 4,674 | — | (4,674 | ) | — | ||||||||||||
Equity index options | Notional | 2,000 | 614 | (803 | ) | 1,811 | ||||||||||||
Financial futures | Notional | 1,104 | 1,972 | (2,116 | ) | 960 | ||||||||||||
Other foreign currency contracts | Notional | 1,186 | 22 | (536 | ) | 672 | ||||||||||||
Total derivatives not designated as hedges | 8,964 | 2,608 | (8,129 | ) | 3,443 | |||||||||||||
Total derivatives | $ | 17,269 | $ | 2,608 | $ | (8,534 | ) | $ | 11,343 | |||||||||
(Number of policies) | Measurement | December 31, 2020 | Additions | Maturities/ terminations | June 30, 2021 | |||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||
GMWB embedded derivatives | Policies | 23,713 | — | (982 | ) | 22,731 | ||||||||||||
Fixed index annuity embedded derivatives | Policies | 12,778 | — | (1,944 | ) | 10,834 | ||||||||||||
Indexed universal life embedded derivatives | Policies | 842 | — | (22 | ) | 820 |
also attributable to reduced benefits of $431 million in the current year related to in-force actions approved and implemented, which included policyholder benefit reduction elections made as part of a legal settlement in our long-term care insurance business, net outflows driven by surrenders and benefits in our single premium immediate annuity products and from the runoff of our term life insurance products, including from higher lapses in the current year. These decreases were partially offset by aging of our long-term care insurancein-force block and higher incremental reserves of $332 million recorded in connection with an accrual for profits followed by losses in the current year. |
(Amounts in millions) | 2020 | 2019 | 2021 | 2020 | ||||||||||||
Net cash from operating activities | $ | 1,452 | $ | 1,608 | $ | 229 | $ | 1,299 | ||||||||
Net cash used by investing activities | (1,279 | ) | (548 | ) | ||||||||||||
Net cash from (used by) investing activities | 541 | (887 | ) | |||||||||||||
Net cash used by financing activities | (734 | ) | (1,242 | ) | (1,213 | ) | (1,144 | ) | ||||||||
Net decrease in cash before foreign exchange effect | $ | (561 | ) | $ | (182 | ) | $ | (443 | ) | $ | (732 | ) | ||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $55,252 and allowance for credit losses of $5) | $ | — | $ | — | $ | 64,416 | $ | — | $ | 64,416 | ||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale, | $ | — | $ | — | $ | 61,649 | $ | — | $ | 61,649 | ||||||||||||||||||||||||||||||
Equity securities, at fair value | — | — | 629 | — | 629 | — | — | 147 | — | 147 | ||||||||||||||||||||||||||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4) | — | — | 6,911 | — | 6,911 | — | — | 6,912 | — | 6,912 | ||||||||||||||||||||||||||||||
Less: Allowance for credit losses | — | — | (31 | ) | — | (31 | ) | — | — | (33 | ) | — | (33 | ) | ||||||||||||||||||||||||||
Commercial mortgage loans, net | — | — | 6,880 | — | 6,880 | — | — | 6,879 | — | 6,879 | ||||||||||||||||||||||||||||||
Policy loans | — | — | 2,153 | — | 2,153 | — | — | 2,083 | — | 2,083 | ||||||||||||||||||||||||||||||
Other invested assets | — | 16 | 2,386 | — | 2,402 | — | 124 | 2,136 | — | 2,260 | ||||||||||||||||||||||||||||||
Investments in subsidiaries | 14,690 | 15,959 | — | (30,649 | ) | — | 15,176 | 16,087 | — | (31,263 | ) | — | ||||||||||||||||||||||||||||
Total investments | 14,690 | 15,975 | 76,464 | (30,649 | ) | 76,480 | 15,176 | 16,211 | 72,894 | (31,263 | ) | 73,018 | ||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | — | 814 | 1,966 | — | 2,780 | — | 742 | 1,472 | — | 2,214 | ||||||||||||||||||||||||||||||
Accrued investment income | — | — | 650 | — | 650 | — | — | 573 | — | 573 | ||||||||||||||||||||||||||||||
Deferred acquisition costs | — | — | 1,623 | — | 1,623 | — | — | 1,212 | — | 1,212 | ||||||||||||||||||||||||||||||
Intangible assets and goodwill | — | — | 209 | — | 209 | |||||||||||||||||||||||||||||||||||
Intangible assets | — | — | 151 | — | 151 | |||||||||||||||||||||||||||||||||||
Reinsurance recoverable | — | — | 16,832 | — | 16,832 | — | — | 16,716 | — | 16,716 | ||||||||||||||||||||||||||||||
Less: Allowance for credit losses | — | — | (44 | ) | — | (44 | ) | — | — | (50 | ) | — | (50 | ) | ||||||||||||||||||||||||||
Reinsurance recoverable, net | — | — | 16,788 | — | 16,788 | — | — | 16,666 | — | 16,666 | ||||||||||||||||||||||||||||||
Other assets | 5 | 326 | 114 | — | 445 | 5 | 137 | 261 | — | 403 | ||||||||||||||||||||||||||||||
Intercompany notes receivable | 99 | 189 | — | (288 | ) | — | — | 75 | — | (75 | ) | — | ||||||||||||||||||||||||||||
Deferred tax assets | (19 | ) | 779 | (510 | ) | — | 250 | — | 640 | (429 | ) | — | 211 | |||||||||||||||||||||||||||
Separate account assets | — | — | 5,700 | — | 5,700 | — | — | 6,202 | — | 6,202 | ||||||||||||||||||||||||||||||
Total assets | $ | 14,775 | $ | 18,083 | $ | 103,004 | $ | (30,937 | ) | $ | 104,925 | $ | 15,181 | $ | 17,805 | $ | 99,002 | $ | (31,338 | ) | $ | 100,650 | ||||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | — | $ | — | $ | 41,995 | $ | — | $ | 41,995 | $ | — | $ | — | $ | 42,165 | $ | — | $ | 42,165 | ||||||||||||||||||||
Policyholder account balances | — | — | 22,731 | — | 22,731 | — | — | 19,944 | — | 19,944 | ||||||||||||||||||||||||||||||
Liability for policy and contract claims | — | — | 11,373 | — | 11,373 | — | — | 11,546 | — | 11,546 | ||||||||||||||||||||||||||||||
Unearned premiums | — | — | 1,846 | — | 1,846 | — | — | 695 | — | 695 | ||||||||||||||||||||||||||||||
Other liabilities | 19 | 92 | 1,802 | — | 1,913 | (1 | ) | 112 | 1,553 | — | 1,664 | |||||||||||||||||||||||||||||
Intercompany notes payable | — | 99 | 189 | (288 | ) | — | 18 | 1 | 56 | (75 | ) | — | ||||||||||||||||||||||||||||
Long-term borrowings | — | 2,663 | 907 | — | 3,570 | — | 2,185 | 739 | — | 2,924 | ||||||||||||||||||||||||||||||
Separate account liabilities | — | — | 5,700 | — | 5,700 | — | — | 6,202 | — | 6,202 | ||||||||||||||||||||||||||||||
Liabilities related to discontinued operations | — | 549 | 16 | — | 565 | — | 342 | 4 | — | 346 | ||||||||||||||||||||||||||||||
Total liabilities | 19 | 3,403 | 86,559 | (288 | ) | 89,693 | 17 | 2,640 | 82,904 | (75 | ) | 85,486 | ||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
Common stock | 1 | — | 3 | (3 | ) | 1 | 1 | — | 5 | (5 | ) | 1 | ||||||||||||||||||||||||||||
Additional paid-in capital | 11,997 | 12,761 | 18,432 | (31,193 | ) | 11,997 | 12,018 | 12,890 | 18,579 | (31,469 | ) | 12,018 | ||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 4,141 | 4,141 | 4,226 | (8,367 | ) | 4,141 | 3,834 | 3,834 | 3,879 | (7,713 | ) | 3,834 | ||||||||||||||||||||||||||||
Retained earnings | 1,317 | (2,222 | ) | (6,992 | ) | 9,214 | 1,317 | 2,011 | (1,559 | ) | (6,665 | ) | 8,224 | 2,011 | ||||||||||||||||||||||||||
Treasury stock, at cost | (2,700 | ) | — | — | — | (2,700 | ) | (2,700 | ) | — | — | — | (2,700 | ) | ||||||||||||||||||||||||||
Total Genworth Financial, Inc.’s stockholders’ equity | 14,756 | 14,680 | 15,669 | (30,349 | ) | 14,756 | 15,164 | 15,165 | 15,798 | (30,963 | ) | 15,164 | ||||||||||||||||||||||||||||
Noncontrolling interests | — | — | 776 | (300 | ) | 476 | — | — | 300 | (300 | ) | — | ||||||||||||||||||||||||||||
Total equity | 14,756 | 14,680 | 16,445 | (30,649 | ) | 15,232 | 15,164 | 15,165 | 16,098 | (31,263 | ) | 15,164 | ||||||||||||||||||||||||||||
Total liabilities and equity | $ | 14,775 | $ | 18,083 | $ | 103,004 | $ | (30,937 | ) | $ | 104,925 | $ | 15,181 | $ | 17,805 | $ | 99,002 | $ | (31,338 | ) | $ | 100,650 | ||||||||||||||||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale, at fair value | $ | — | $ | — | $ | 60,539 | $ | (200 | ) | $ | 60,339 | |||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale, | $ | — | $ | — | $ | 63,495 | $ | — | $ | 63,495 | ||||||||||||||||||||||||||||||
Equity securities, at fair value | — | — | 239 | — | 239 | — | — | 386 | — | 386 | ||||||||||||||||||||||||||||||
Commercial mortgage loans ($47 are restricted related to a securitization entity) | — | — | 6,963 | — | 6,963 | |||||||||||||||||||||||||||||||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4) | — | — | 6,774 | — | 6,774 | |||||||||||||||||||||||||||||||||||
Less: Allowance for credit losses | — | — | (31 | ) | — | (31 | ) | |||||||||||||||||||||||||||||||||
Commercial mortgage loans, net | — | — | 6,743 | — | 6,743 | |||||||||||||||||||||||||||||||||||
Policy loans | — | — | 2,058 | — | 2,058 | — | — | 1,978 | — | 1,978 | ||||||||||||||||||||||||||||||
Other invested assets | — | 71 | 1,561 | — | 1,632 | — | 67 | 2,032 | — | 2,099 | ||||||||||||||||||||||||||||||
Investments in subsidiaries | 14,079 | 15,090 | — | (29,169 | ) | — | 15,358 | 16,673 | — | (32,031 | ) | — | ||||||||||||||||||||||||||||
Total investments | 14,079 | 15,161 | 71,360 | (29,369 | ) | 71,231 | 15,358 | 16,740 | 74,634 | (32,031 | ) | 74,701 | ||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | — | 1,461 | 1,880 | — | 3,341 | — | 1,078 | 1,483 | — | 2,561 | ||||||||||||||||||||||||||||||
Accrued investment income | — | — | 657 | (3 | ) | 654 | — | — | 655 | — | 655 | |||||||||||||||||||||||||||||
Deferred acquisition costs | — | — | 1,836 | — | 1,836 | — | — | 1,487 | — | 1,487 | ||||||||||||||||||||||||||||||
Intangible assets and goodwill | — | — | 201 | — | 201 | |||||||||||||||||||||||||||||||||||
Intangible assets | — | — | 157 | — | 157 | |||||||||||||||||||||||||||||||||||
Reinsurance recoverable | — | — | 17,103 | — | 17,103 | — | — | 16,864 | — | 16,864 | ||||||||||||||||||||||||||||||
Less: Allowance for credit losses | — | — | (45 | ) | — | (45 | ) | |||||||||||||||||||||||||||||||||
Reinsurance recoverable, net | — | — | 16,819 | — | 16,819 | |||||||||||||||||||||||||||||||||||
Other assets | 4 | 201 | 239 | (1 | ) | 443 | 2 | 146 | 256 | — | 404 | |||||||||||||||||||||||||||||
Intercompany notes receivable | 119 | 132 | — | (251 | ) | — | — | 19 | — | (19 | ) | — | ||||||||||||||||||||||||||||
Deferred tax assets | 13 | 821 | (409 | ) | — | 425 | 13 | 767 | (715 | ) | — | 65 | ||||||||||||||||||||||||||||
Separate account assets | — | — | 6,108 | — | 6,108 | — | — | 6,081 | — | 6,081 | ||||||||||||||||||||||||||||||
Assets related to discontinued operations | — | — | 2,817 | — | 2,817 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 14,215 | $ | 17,776 | $ | 98,975 | $ | (29,624 | ) | $ | 101,342 | $ | 15,373 | $ | 18,750 | $ | 103,674 | $ | (32,050 | ) | $ | 105,747 | ||||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | — | $ | — | $ | 40,384 | $ | — | $ | 40,384 | $ | — | $ | — | $ | 42,695 | $ | — | $ | 42,695 | ||||||||||||||||||||
Policyholder account balances | — | — | 22,217 | — | 22,217 | — | — | 21,503 | — | 21,503 | ||||||||||||||||||||||||||||||
Liability for policy and contract claims | — | — | 10,958 | — | 10,958 | — | — | 11,486 | — | 11,486 | ||||||||||||||||||||||||||||||
Unearned premiums | — | — | 1,893 | — | 1,893 | — | — | 775 | — | 775 | ||||||||||||||||||||||||||||||
Other liabilities | 30 | 118 | 1,243 | (5 | ) | 1,386 | 55 | 156 | 1,403 | — | 1,614 | |||||||||||||||||||||||||||||
Intercompany notes payable | — | 319 | 132 | (451 | ) | — | — | — | 19 | (19 | ) | — | ||||||||||||||||||||||||||||
Non-recourse funding obligations | — | — | 311 | — | 311 | |||||||||||||||||||||||||||||||||||
Long-term borrowings | — | 3,137 | 140 | — | 3,277 | — | 2,665 | 738 | — | 3,403 | ||||||||||||||||||||||||||||||
Separate account liabilities | — | — | 6,108 | — | 6,108 | — | — | 6,081 | — | 6,081 | ||||||||||||||||||||||||||||||
Liabilities related to discontinued operations | — | 134 | 42 | — | 176 | — | 581 | 1,789 | — | 2,370 | ||||||||||||||||||||||||||||||
Total liabilities | 30 | 3,708 | 83,428 | (456 | ) | 86,710 | 55 | 3,402 | 86,489 | (19 | ) | 89,927 | ||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
Common stock | 1 | — | 3 | (3 | ) | 1 | 1 | — | 3 | (3 | ) | 1 | ||||||||||||||||||||||||||||
Additional paid-in capital | 11,990 | 12,761 | 18,431 | (31,192 | ) | 11,990 | 12,008 | 12,890 | 18,562 | (31,452 | ) | 12,008 | ||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 3,433 | 3,433 | 3,474 | (6,907 | ) | 3,433 | 4,425 | 4,426 | 4,499 | (8,925 | ) | 4,425 | ||||||||||||||||||||||||||||
Retained earnings | 1,461 | (2,126 | ) | (7,108 | ) | 9,234 | 1,461 | 1,584 | (1,968 | ) | (6,681 | ) | 8,649 | 1,584 | ||||||||||||||||||||||||||
Treasury stock, at cost | (2,700 | ) | — | — | — | (2,700 | ) | (2,700 | ) | — | — | — | (2,700 | ) | ||||||||||||||||||||||||||
Total Genworth Financial, Inc.’s stockholders’ equity | 14,185 | 14,068 | 14,800 | (28,868 | ) | 14,185 | 15,318 | 15,348 | 16,383 | (31,731 | ) | 15,318 | ||||||||||||||||||||||||||||
Noncontrolling interests | — | — | 747 | (300 | ) | 447 | — | — | 802 | (300 | ) | 502 | ||||||||||||||||||||||||||||
Total equity | 14,185 | 14,068 | 15,547 | (29,168 | ) | 14,632 | 15,318 | 15,348 | 17,185 | (32,031 | ) | 15,820 | ||||||||||||||||||||||||||||
Total liabilities and equity | $ | 14,215 | $ | 17,776 | $ | 98,975 | $ | (29,624 | ) | $ | 101,342 | $ | 15,373 | $ | 18,750 | $ | 103,674 | $ | (32,050 | ) | $ | 105,747 | ||||||||||||||||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||
Premiums | $ | — | $ | — | $ | 3,068 | $ | — | $ | 3,068 | $ | —�� | $ | — | $ | 1,915 | $ | — | $ | 1,915 | ||||||||||||||||||||
Net investment income | (2 | ) | 5 | 2,405 | (2 | ) | 2,406 | (2 | ) | — | 1,647 | — | 1,645 | |||||||||||||||||||||||||||
Net investment gains (losses) | — | 7 | 375 | — | 382 | — | — | 103 | — | 103 | ||||||||||||||||||||||||||||||
Policy fees and other income | — | 2 | 541 | (4 | ) | 539 | — | (1 | ) | 363 | 1 | 363 | ||||||||||||||||||||||||||||
Total revenues | (2 | ) | 14 | 6,389 | (6 | ) | 6,395 | (2 | ) | (1 | ) | 4,028 | 1 | 4,026 | ||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | — | — | 4,146 | — | 4,146 | — | — | 2,379 | — | 2,379 | ||||||||||||||||||||||||||||||
Interest credited | — | — | 417 | — | 417 | — | — | 258 | — | 258 | ||||||||||||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 17 | 6 | 698 | — | 721 | 17 | 4 | 558 | — | 579 | ||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | — | — | 310 | — | 310 | — | — | 163 | — | 163 | ||||||||||||||||||||||||||||||
Goodwill impairment | — | — | 5 | — | 5 | |||||||||||||||||||||||||||||||||||
Interest expense | — | 133 | 18 | (6 | ) | 145 | — | 68 | 25 | 1 | 94 | |||||||||||||||||||||||||||||
Total benefits and expenses | 17 | 139 | 5,594 | (6 | ) | 5,744 | 17 | 72 | 3,383 | 1 | 3,473 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | (19 | ) | (125 | ) | 795 | — | 651 | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | (19 | ) | (73 | ) | 645 | — | 553 | |||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 28 | (23 | ) | 181 | — | 186 | (1 | ) | (16 | ) | 151 | — | 134 | |||||||||||||||||||||||||||
Equity in income (loss) of subsidiaries | (43 | ) | 604 | — | (561 | ) | — | |||||||||||||||||||||||||||||||||
Equity in income of subsidiaries | 445 | 467 | — | (912 | ) | — | ||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | (90 | ) | 502 | 614 | (561 | ) | 465 | |||||||||||||||||||||||||||||||||
Income from continuing operations | 427 | 410 | 494 | (912 | ) | 419 | ||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 1 | (543 | ) | 23 | — | (519 | ) | — | 36 | (20 | ) | — | 16 | |||||||||||||||||||||||||||
Net income (loss) | (89 | ) | (41 | ) | 637 | (561 | ) | (54 | ) | |||||||||||||||||||||||||||||||
Net income | 427 | 446 | 474 | (912 | ) | 435 | ||||||||||||||||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | — | — | 35 | — | 35 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | — | — | — | 8 | — | 8 | ||||||||||||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | (89 | ) | $ | (41 | ) | $ | 602 | $ | (561 | ) | $ | (89 | ) | ||||||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 427 | $ | 446 | $ | 466 | $ | (912 | ) | $ | 427 | |||||||||||||||||||||||||||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||
Premiums | $ | — | $ | — | $ | 4,037 | $ | — | $ | 4,037 | $ | — | $ | — | $ | 3,836 | $ | — | $ | 3,836 | ||||||||||||||||||||
Net investment income | (3 | ) | 10 | 3,228 | (15 | ) | 3,220 | (3 | ) | 5 | 3,228 | (3 | ) | 3,227 | ||||||||||||||||||||||||||
Net investment gains (losses) | — | (5 | ) | 55 | — | 50 | — | 6 | 486 | — | 492 | |||||||||||||||||||||||||||||
Policy fees and other income | — | 2 | 792 | (5 | ) | 789 | — | 3 | 730 | (4 | ) | 729 | ||||||||||||||||||||||||||||
Total revenues | (3 | ) | 7 | 8,112 | (20 | ) | 8,096 | (3 | ) | 14 | 8,280 | (7 | ) | 8,284 | ||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | — | — | 5,163 | — | 5,163 | — | — | 5,214 | — | 5,214 | ||||||||||||||||||||||||||||||
Interest credited | — | — | 577 | — | 577 | — | — | 549 | — | 549 | ||||||||||||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 20 | — | 942 | — | 962 | 31 | 6 | 898 | — | 935 | ||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | — | — | 441 | — | 441 | — | — | 463 | — | 463 | ||||||||||||||||||||||||||||||
Interest expense | 3 | 231 | 25 | (20 | ) | 239 | 1 | 175 | 26 | (7 | ) | 195 | ||||||||||||||||||||||||||||
Total benefits and expenses | 23 | 231 | 7,148 | (20 | ) | 7,382 | 32 | 181 | 7,150 | (7 | ) | 7,356 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | (26 | ) | (224 | ) | 964 | — | 714 | (35 | ) | (167 | ) | 1,130 | — | 928 | ||||||||||||||||||||||||||
Provision (benefit) for income taxes | (3 | ) | (45 | ) | 243 | — | 195 | (2 | ) | (41 | ) | 273 | — | 230 | ||||||||||||||||||||||||||
Equity in income of subsidiaries | 366 | 177 | — | (543 | ) | — | 210 | 912 | — | (1,122 | ) | — | ||||||||||||||||||||||||||||
Income (loss) from continuing operations | 343 | (2 | ) | 721 | (543 | ) | 519 | |||||||||||||||||||||||||||||||||
Income from continuing operations | 177 | 786 | 857 | (1,122 | ) | 698 | ||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | — | (140 | ) | 151 | — | 11 | 1 | (573 | ) | 86 | — | (486 | ) | |||||||||||||||||||||||||||
Net income (loss) | 343 | (142 | ) | 872 | (543 | ) | 530 | |||||||||||||||||||||||||||||||||
Net income | 178 | 213 | 943 | (1,122 | ) | 212 | ||||||||||||||||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | — | — | 64 | — | 64 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | 123 | — | 123 | — | — | 34 | — | 34 | ||||||||||||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | 343 | $ | (142 | ) | $ | 685 | $ | (543 | ) | $ | 343 | ||||||||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 178 | $ | 213 | $ | 909 | $ | (1,122 | ) | $ | 178 | |||||||||||||||||||||||||||||
Parent | All Other | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | Guarantor | Issuer | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Net income (loss) | $ | (89 | ) | $ | (41 | ) | $ | 637 | $ | (561 | ) | $ | (54 | ) | ||||||||||||||||||||||||||
Net income | $ | 427 | $ | 446 | $ | 474 | $ | (912 | ) | $ | 435 | |||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | 265 | 265 | 264 | (530 | ) | 264 | (355 | ) | (356 | ) | (381 | ) | 712 | (380 | ) | |||||||||||||||||||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses | (10 | ) | (10 | ) | (10 | ) | 20 | (10 | ) | 6 | 6 | 6 | (12 | ) | 6 | |||||||||||||||||||||||||
Derivatives qualifying as hedges | 449 | 449 | 493 | (942 | ) | 449 | (208 | ) | (208 | ) | (236 | ) | 444 | (208 | ) | |||||||||||||||||||||||||
Foreign currency translation and other adjustments | 4 | 4 | 8 | (8 | ) | 8 | (34 | ) | (34 | ) | 138 | 68 | 138 | |||||||||||||||||||||||||||
Total other comprehensive income (loss) | 708 | 708 | 755 | (1,460 | ) | 711 | (591 | ) | (592 | ) | (473 | ) | 1,212 | (444 | ) | |||||||||||||||||||||||||
Total comprehensive income | 619 | 667 | 1,392 | (2,021 | ) | 657 | ||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | (164 | ) | (146 | ) | 1 | 300 | (9 | ) | ||||||||||||||||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | 38 | — | 38 | — | — | 155 | — | 155 | ||||||||||||||||||||||||||||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders | $ | 619 | $ | 667 | $ | 1,354 | $ | (2,021 | ) | $ | 619 | |||||||||||||||||||||||||||||
Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders | $ | (164 | ) | $ | (146 | ) | $ | (154 | ) | $ | 300 | $ | (164 | ) | ||||||||||||||||||||||||||
Parent | All Other | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | Guarantor | Issuer | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Net income (loss) | $ | 343 | $ | (142 | ) | $ | 872 | $ | (543 | ) | $ | 530 | ||||||||||||||||||||||||||||
Net income | $ | 178 | $ | 213 | $ | 943 | $ | (1,122 | ) | $ | 212 | |||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 859 | 842 | 846 | (1,701 | ) | 846 | ||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 2 | 2 | 2 | (4 | ) | 2 | ||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | 764 | 765 | 765 | (1,530 | ) | 764 | ||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses | (6 | ) | (6 | ) | (6 | ) | 12 | (6 | ) | |||||||||||||||||||||||||||||||
Derivatives qualifying as hedges | 221 | 221 | 247 | (468 | ) | 221 | 209 | 209 | 241 | (450 | ) | 209 | ||||||||||||||||||||||||||||
Foreign currency translation and other adjustments | 307 | 224 | 486 | (530 | ) | 487 | 25 | 25 | 55 | (50 | ) | 55 | ||||||||||||||||||||||||||||
Total other comprehensive income (loss) | 1,389 | 1,289 | 1,581 | (2,703 | ) | 1,556 | 992 | 993 | 1,055 | (2,018 | ) | 1,022 | ||||||||||||||||||||||||||||
Total comprehensive income | 1,732 | 1,147 | 2,453 | (3,246 | ) | 2,086 | 1,170 | 1,206 | 1,998 | (3,140 | ) | 1,234 | ||||||||||||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | 354 | — | 354 | — | — | 64 | — | 64 | ||||||||||||||||||||||||||||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders | $ | 1,732 | $ | 1,147 | $ | 2,099 | $ | (3,246 | ) | $ | 1,732 | $ | 1,170 | $ | 1,206 | $ | 1,934 | $ | (3,140 | ) | $ | 1,170 | ||||||||||||||||||
Parent | All Other | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | Guarantor | Issuer | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Cash flows from (used by) operating activities: | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (89 | ) | $ | (41 | ) | $ | 637 | $ | (561 | ) | $ | (54 | ) | ||||||||||||||||||||||||||
Net income | $ | 427 | $ | 446 | $ | 474 | $ | (912 | ) | $ | 435 | |||||||||||||||||||||||||||||
Less (income) loss from discontinued operations, net of taxes | (1 | ) | 543 | (23 | ) | — | 519 | — | (36 | ) | 20 | — | (16 | ) | ||||||||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | ||||||||||||||||||||||||||||||||||||||||
Equity in income (loss) from subsidiaries | 43 | (604 | ) | — | 561 | — | ||||||||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash from (used by) operating activities: | ||||||||||||||||||||||||||||||||||||||||
Equity in income from subsidiaries | (445 | ) | (467 | ) | — | 912 | — | |||||||||||||||||||||||||||||||||
Dividends from subsidiaries | — | 447 | (447 | ) | — | — | — | 370 | (370 | ) | — | — | ||||||||||||||||||||||||||||
Amortization of fixed maturity securities discounts and premiums | — | 4 | (101 | ) | — | (97 | ) | — | 2 | (82 | ) | — | (80 | ) | ||||||||||||||||||||||||||
Net investment gains | — | (7 | ) | (375 | ) | — | (382 | ) | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | — | — | (103 | ) | — | (103 | ) | |||||||||||||||||||||||||||||||||
Charges assessed to policyholders | — | — | (479 | ) | — | (479 | ) | — | — | (317 | ) | — | (317 | ) | ||||||||||||||||||||||||||
Acquisition costs deferred | — | — | (9 | ) | — | (9 | ) | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | — | — | 310 | — | 310 | — | — | 163 | — | 163 | ||||||||||||||||||||||||||||||
Goodwill impairment | — | — | 5 | — | 5 | |||||||||||||||||||||||||||||||||||
Deferred income taxes | 31 | 196 | (61 | ) | — | 166 | 3 | 148 | (19 | ) | — | 132 | ||||||||||||||||||||||||||||
Derivative instruments, limited partnerships and other | — | (60 | ) | 148 | — | 88 | — | 51 | (240 | ) | — | (189 | ) | |||||||||||||||||||||||||||
Stock-based compensation expense | 22 | — | — | — | 22 | 25 | — | — | — | 25 | ||||||||||||||||||||||||||||||
Change in certain assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||
Accrued investment income and other assets | (1 | ) | (21 | ) | (156 | ) | (5 | ) | (183 | ) | (3 | ) | 10 | (76 | ) | — | (69 | ) | ||||||||||||||||||||||
Insurance reserves | — | — | 1,034 | — | 1,034 | — | — | 507 | — | 507 | ||||||||||||||||||||||||||||||
Current tax liabilities | (3 | ) | (121 | ) | 130 | — | 6 | (6 | ) | 48 | (46 | ) | — | (4 | ) | |||||||||||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | (15 | ) | (12 | ) | 791 | 5 | 769 | (12 | ) | (22 | ) | (26 | ) | — | (60 | ) | ||||||||||||||||||||||||
Cash used by operating activities—discontinued operations | — | (263 | ) | — | — | (263 | ) | |||||||||||||||||||||||||||||||||
Cash from (used by) operating activities—discontinued operations | — | (265 | ) | 73 | — | (192 | ) | |||||||||||||||||||||||||||||||||
Net cash from (used by) operating activities | (13 | ) | 61 | 1,404 | — | 1,452 | (11 | ) | 285 | (45 | ) | — | 229 | |||||||||||||||||||||||||||
Cash flows from (used by) investing activities: | ||||||||||||||||||||||||||||||||||||||||
Proceeds from maturities and repayments of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | — | — | 2,760 | — | 2,760 | — | — | 2,220 | — | 2,220 | ||||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 479 | — | 479 | — | — | 392 | — | 392 | ||||||||||||||||||||||||||||||
Other invested assets | — | — | 108 | — | 108 | — | — | 107 | — | 107 | ||||||||||||||||||||||||||||||
Proceeds from sales of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity and equity securities | — | — | 3,270 | — | 3,270 | — | — | 1,306 | — | 1,306 | ||||||||||||||||||||||||||||||
Purchases and originations of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity and equity securities | — | — | (7,179 | ) | — | (7,179 | ) | — | — | (2,868 | ) | — | (2,868 | ) | ||||||||||||||||||||||||||
Commercial mortgage loans | — | — | (414 | ) | — | (414 | ) | — | — | (531 | ) | — | (531 | ) | ||||||||||||||||||||||||||
Other invested assets | — | — | (318 | ) | — | (318 | ) | — | — | (240 | ) | — | (240 | ) | ||||||||||||||||||||||||||
Short-term investments, net | — | 70 | (82 | ) | — | (12 | ) | — | (75 | ) | (1 | ) | — | (76 | ) | |||||||||||||||||||||||||
Policy loans, net | — | — | 27 | — | 27 | — | — | 28 | — | 28 | ||||||||||||||||||||||||||||||
Intercompany notes receivable | 20 | (57 | ) | 200 | (163 | ) | — | |||||||||||||||||||||||||||||||||
Intercompany notes receivable, net | — | (56 | ) | — | 56 | — | ||||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (2 | ) | — | 2 | — | — | (2 | ) | — | 2 | — | — | ||||||||||||||||||||||||||||
Proceeds from sale of business, net of cash transferred | — | — | 270 | — | 270 | |||||||||||||||||||||||||||||||||||
Cash used by investing activities—discontinued operations | — | — | (67 | ) | — | (67 | ) | |||||||||||||||||||||||||||||||||
Net cash from (used by) investing activities | 18 | 13 | (1,147 | ) | (163 | ) | (1,279 | ) | (2 | ) | (131 | ) | 618 | 56 | 541 | |||||||||||||||||||||||||
Cash flows used by financing activities: | ||||||||||||||||||||||||||||||||||||||||
Cash flows from (used by) financing activities: | ||||||||||||||||||||||||||||||||||||||||
Deposits to universal life and investment contracts | — | — | 693 | — | 693 | — | — | 349 | — | 349 | ||||||||||||||||||||||||||||||
Withdrawals from universal life and investment contracts | — | — | (1,408 | ) | — | (1,408 | ) | — | — | (1,143 | ) | — | (1,143 | ) | ||||||||||||||||||||||||||
Redemption of non-recourse funding obligations | — | — | (315 | ) | — | (315 | ) | |||||||||||||||||||||||||||||||||
Proceeds from the issuance of long-term debt | — | — | 767 | — | 767 | |||||||||||||||||||||||||||||||||||
Repayment and repurchase of long-term debt | — | (490 | ) | (3 | ) | — | (493 | ) | — | (484 | ) | — | — | (484 | ) | |||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | (9 | ) | — | (9 | ) | |||||||||||||||||||||||||||||||||
Intercompany notes payable | — | (220 | ) | 57 | 163 | — | ||||||||||||||||||||||||||||||||||
Intercompany notes payable, net | 18 | 1 | 37 | (56 | ) | — | ||||||||||||||||||||||||||||||||||
Other, net | (5 | ) | (11 | ) | 47 | — | 31 | (5 | ) | (7 | ) | 77 | — | 65 | ||||||||||||||||||||||||||
Cash used by financing activities—discontinued operations | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net cash used by financing activities | (5 | ) | (721 | ) | (171 | ) | 163 | (734 | ) | |||||||||||||||||||||||||||||||
Net cash from (used by) financing activities | 13 | (490 | ) | (680 | ) | (56 | ) | (1,213 | ) | |||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $(1) related to discontinued operations) | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||
Net change in cash, cash equivalents and restricted cash | — | (647 | ) | 86 | — | (561 | ) | — | (336 | ) | (106 | ) | — | (442 | ) | |||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | — | 1,461 | 1,880 | — | 3,341 | — | 1,078 | 1,578 | — | 2,656 | ||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | — | 814 | 1,966 | — | 2,780 | — | 742 | 1,472 | — | 2,214 | ||||||||||||||||||||||||||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of period | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period | $ | — | $ | 814 | $ | 1,966 | $ | — | $ | 2,780 | $ | — | $ | 742 | $ | 1,472 | $ | — | $ | 2,214 | ||||||||||||||||||||
Parent | All Other | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | Guarantor | Issuer | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 343 | $ | (142 | ) | $ | 872 | $ | (543 | ) | $ | 530 | ||||||||||||||||||||||||||||
Net income | $ | 178 | $ | 213 | $ | 943 | $ | (1,122 | ) | $ | 212 | |||||||||||||||||||||||||||||
Less (income) loss from discontinued operations, net of taxes | — | 140 | (151 | ) | — | (11 | ) | (1 | ) | 573 | (86 | ) | — | 486 | ||||||||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||||||||||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||||||||||||||||||||||||||||||
Equity in income from subsidiaries | (366 | ) | (177 | ) | — | 543 | — | (210 | ) | (912 | ) | — | 1,122 | — | ||||||||||||||||||||||||||
Dividends from subsidiaries | 250 | 1,352 | (1,602 | ) | — | — | — | 437 | (437 | ) | — | — | ||||||||||||||||||||||||||||
Amortization of fixed maturity securities discounts and premiums | — | 8 | (126 | ) | — | (118 | ) | — | 6 | (163 | ) | — | (157 | ) | ||||||||||||||||||||||||||
Net investment (gains) losses | — | 5 | (55 | ) | — | (50 | ) | — | (6 | ) | (486 | ) | — | (492 | ) | |||||||||||||||||||||||||
Charges assessed to policyholders | — | — | (699 | ) | — | (699 | ) | — | — | (646 | ) | — | (646 | ) | ||||||||||||||||||||||||||
Acquisition costs deferred | — | — | (27 | ) | — | (27 | ) | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | — | — | 441 | — | 441 | — | — | 463 | — | 463 | ||||||||||||||||||||||||||||||
Deferred income taxes | 1 | 132 | 6 | — | 139 | (1 | ) | 212 | 17 | — | 228 | |||||||||||||||||||||||||||||
Derivative instruments and limited partnerships | — | (35 | ) | (63 | ) | — | (98 | ) | ||||||||||||||||||||||||||||||||
Derivative instruments, limited partnerships and other | — | (70 | ) | (42 | ) | — | (112 | ) | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 26 | — | 1 | — | 27 | 39 | — | — | — | 39 | ||||||||||||||||||||||||||||||
Change in certain assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||
Accrued investment income and other assets | — | 7 | (365 | ) | — | (358 | ) | 2 | 16 | (105 | ) | (5 | ) | (92 | ) | |||||||||||||||||||||||||
Insurance reserves | — | — | 1,259 | — | 1,259 | — | — | 1,217 | — | 1,217 | ||||||||||||||||||||||||||||||
Current tax liabilities | 16 | (43 | ) | 53 | — | 26 | (1 | ) | 41 | (34 | ) | — | 6 | |||||||||||||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | (17 | ) | (44 | ) | 668 | 2 | 609 | 11 | 30 | 784 | 5 | 830 | ||||||||||||||||||||||||||||
Cash from operating activities—discontinued operations | — | 134 | 275 | — | 409 | |||||||||||||||||||||||||||||||||||
Cash from (used by) operating activities—discontinued operations | — | (258 | ) | 239 | — | (19 | ) | |||||||||||||||||||||||||||||||||
Net cash from operating activities | 253 | 1,337 | 487 | 2 | 2,079 | 17 | 282 | 1,661 | — | 1,960 | ||||||||||||||||||||||||||||||
Cash flows from (used by) investing activities: | ||||||||||||||||||||||||||||||||||||||||
Proceeds from maturities and repayments of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | — | — | 3,436 | — | 3,436 | — | — | 3,637 | — | 3,637 | ||||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 582 | — | 582 | — | — | 744 | — | 744 | ||||||||||||||||||||||||||||||
Restricted commercial mortgage loans related to a securitization entity | — | — | 15 | — | 15 | |||||||||||||||||||||||||||||||||||
Other invested assets | — | — | 182 | — | 182 | |||||||||||||||||||||||||||||||||||
Proceeds from sales of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity and equity securities | — | — | 3,883 | — | 3,883 | — | — | 3,040 | — | 3,040 | ||||||||||||||||||||||||||||||
Purchases and originations of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity and equity securities | — | — | (6,899 | ) | — | (6,899 | ) | — | — | (7,763 | ) | — | (7,763 | ) | ||||||||||||||||||||||||||
Commercial mortgage loans | — | — | (813 | ) | — | (813 | ) | — | — | (547 | ) | — | (547 | ) | ||||||||||||||||||||||||||
Other invested assets, net | — | 5 | (392 | ) | (2 | ) | (389 | ) | ||||||||||||||||||||||||||||||||
Other invested assets | — | — | (449 | ) | — | (449 | ) | |||||||||||||||||||||||||||||||||
Short-term investments, net | — | 45 | (10 | ) | — | 35 | ||||||||||||||||||||||||||||||||||
Policy loans, net | — | — | 62 | — | 62 | — | — | 190 | — | 190 | ||||||||||||||||||||||||||||||
Intercompany notes receivable | (119 | ) | 48 | 6 | 65 | — | ||||||||||||||||||||||||||||||||||
Intercompany notes receivable, net | (10 | ) | (16 | ) | 200 | (174 | ) | — | ||||||||||||||||||||||||||||||||
Capital contributions to subsidiaries | (5 | ) | — | 5 | — | — | (2 | ) | — | 2 | — | — | ||||||||||||||||||||||||||||
Proceeds from sale of business, net of cash transferred | — | — | 1,398 | — | 1,398 | |||||||||||||||||||||||||||||||||||
Cash from investing activities—discontinued operations | — | — | 26 | — | 26 | |||||||||||||||||||||||||||||||||||
Cash used by investing activities—discontinued operations | — | — | (222 | ) | — | (222 | ) | |||||||||||||||||||||||||||||||||
Net cash from (used by) investing activities | (124 | ) | 53 | 1,309 | 63 | 1,301 | (12 | ) | 29 | (996 | ) | (174 | ) | (1,153 | ) | |||||||||||||||||||||||||
Cash flows used by financing activities: | ||||||||||||||||||||||||||||||||||||||||
Deposits to universal life and investment contracts | — | — | 824 | — | 824 | — | — | 862 | — | 862 | ||||||||||||||||||||||||||||||
Withdrawals from universal life and investment contracts | — | — | (2,319 | ) | — | (2,319 | ) | — | — | (2,282 | ) | — | (2,282 | ) | ||||||||||||||||||||||||||
Redemption of non-recourse funding obligations | — | — | (315 | ) | — | (315 | ) | |||||||||||||||||||||||||||||||||
Proceeds from the issuance of long-term debt | — | — | 738 | — | 738 | |||||||||||||||||||||||||||||||||||
Repayment and repurchase of long-term debt | — | (446 | ) | — | — | (446 | ) | — | (490 | ) | — | — | (490 | ) | ||||||||||||||||||||||||||
Intercompany notes payable | (122 | ) | 112 | 75 | (65 | ) | — | |||||||||||||||||||||||||||||||||
Repurchase of subsidiary shares | — | — | (22 | ) | — | (22 | ) | |||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | (87 | ) | — | (87 | ) | |||||||||||||||||||||||||||||||||
Intercompany notes payable, net | — | (190 | ) | 16 | 174 | — | ||||||||||||||||||||||||||||||||||
Other, net | (7 | ) | (24 | ) | (4 | ) | — | (35 | ) | (5 | ) | (14 | ) | 17 | — | (2 | ) | |||||||||||||||||||||||
Cash used by financing activities—discontinued operations | — | — | (132 | ) | — | (132 | ) | — | — | (18 | ) | — | (18 | ) | ||||||||||||||||||||||||||
Net cash used by financing activities | (129 | ) | (358 | ) | (1,665 | ) | (65 | ) | (2,217 | ) | (5 | ) | (694 | ) | (982 | ) | 174 | (1,507 | ) | |||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $6 related to discontinued operations) | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $18 related to discontinued operations) | — | — | 15 | — | 15 | |||||||||||||||||||||||||||||||||||
Net change in cash, cash equivalents and restricted cash | — | 1,032 | 132 | — | 1,164 | — | (383 | ) | (302 | ) | — | (685 | ) | |||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | — | 429 | 1,748 | — | 2,177 | — | 1,461 | 1,880 | — | 3,341 | ||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | — | 1,461 | 1,880 | — | 3,341 | — | 1,078 | 1,578 | — | 2,656 | ||||||||||||||||||||||||||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of period | — | — | — | — | — | — | — | 95 | — | 95 | ||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period | $ | — | $ | 1,461 | $ | 1,880 | $ | — | $ | 3,341 | $ | — | $ | 1,078 | $ | 1,483 | $ | — | $ | 2,561 | ||||||||||||||||||||
Item 1. |
Item 1A. | Risk Factors |
§ | Management contract or compensatory plan or arrangement. |
GENWORTH FINANCIAL, INC. (Registrant) | ||||||
Date: 2021 | ||||||
By: | /s/ Matthew D. Farney | |||||
Matthew D. Farney Vice President and Controller (Principal Accounting Officer) |